Segment Reporting

9 Months Ended

Aug. 31, 2015

Text Block [Abstract]

Segment Reporting

Segment Reporting

The general nature of the Company’s business is a motorsports themed amusement enterprise, furnishing amusement to the public in the form of motorsports themed entertainment. The Company’s motorsports event operations consist principally of racing events at its major motorsports entertainment facilities. The reporting units within the motorsports segment portfolio are reviewed together as the nature of the products and services, the production processes used, the type or class of customer using our products and services, and the methods used to distribute our products or provide their services are consistent in objectives and principles, and predominately uniform and centralized throughout the Company. The Company’s remaining business units, which are comprised of the radio network production and syndication of numerous racing events and programs, certain souvenir merchandising operations not associated with the promotion of motorsports events at the Company’s facilities, construction management services, leasing operations, and financing and licensing operations are included in the “All Other” segment. The Company evaluates financial performance of the business units on operating profit after allocation of corporate general and administrative (“G&A”) expenses. Corporate G&A expenses are allocated to business units based on each business unit’s net revenues to total net revenues.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Intersegment sales are accounted for at prices comparable to unaffiliated customers. The following tables provide segment reporting of the Company for the three and nine months ended August 31, 2014 and 2015 (in thousands):

	Three Months Ended August 31, 2014
	Motorsports Event			All Other			Total
Revenues	$	109,800		$	20,512		$	130,312
Depreciation and amortization	20,971			1,467			22,438
Operating income (loss)	(2,834		)	(691		)	(3,525		)
Capital expenditures	56,775			1,003			57,778
Total assets	1,615,769			472,782			2,088,551
Equity investments	—			126,623			126,623
	Three Months Ended August 31, 2015
	Motorsports Event			All Other			Total
Revenues	$	113,161		$	12,717		$	125,878
Depreciation and amortization	23,009			1,215			24,224
Operating income (loss)	(5,560		)	(1,578		)	(7,138		)
Capital expenditures	28,230			1,579			29,809
Total assets	1,674,431			460,766			2,135,197
Equity investments	—			107,721			107,721
	Nine Months Ended August 31, 2014
	Motorsports Event			All Other			Total
Revenues	$	421,758		$	31,658		$	453,416
Depreciation and amortization	63,647			4,352			67,999
Operating income (loss)	57,809			(4,256		)	53,553
Capital expenditures	126,276			6,210			132,486
	Nine Months Ended August 31, 2015
	Motorsports Event			All Other			Total
Revenues	$	398,741		$	28,618		$	427,359
Depreciation and amortization	69,232			3,758			72,990
Operating income (loss)	37,903			(4,233		)	33,670
Capital expenditures	101,227			4,510			105,737

Certain prior year amounts in the Segment Reporting have been reclassified to conform to the current year presentation.

Intersegment revenues were approximately $0.2 million and $0.4 million for the three months endedAugust 31, 2014 and 2015, respectively, and approximately $1.2 million and $1.3 million for the nine months ended August 31, 2014 and 2015, respectively.

During the three and nine months ended August 31, 2015, the Company recognized approximately $0.4 million and $1.1 million, respectively, in marketing and consulting costs that is included in general and administrative expense related to DAYTONA Rising. These costs were included in the Motorsports Event segment. During the three and nine months ended August 31, 2014, the Company recognized approximately $0.2 million and $0.9 million, respectively, of similar costs.

During the three and nine months ended August 31, 2015, the Company recognized approximately $1.0 million and $6.9 million, respectively, of accelerated depreciation that was recorded due to the shortening the service lives of certain assets associated with DAYTONA Rising and other projects. During the three and nine months ended August 31, 2014, the Company recognized approximately $2.7 million and $8.7 million, respectively, of accelerated depreciation that was recorded due to the shortening the service lives of certain assets associated with DAYTONA Rising and capacity management initiatives.

During the three and nine months ended August 31, 2015, the Company recognized approximately $5.4 million and $11.6 million, respectively, of losses primarily attributable to demolition costs in connection with DAYTONA Rising and other capital improvements. During the three and nine months ended August 31, 2014, the Company recognized approximately $3.9 million and $7.3 million, respectively, of losses associated with asset retirements primarily attributable to the removal of assets not fully depreciated in connection with capacity management initiatives, DAYTONA Rising and other capital improvements.