Segment Reporting

3 Months Ended

Feb. 29, 2016

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 months ended February 28, 2015 and February 29, 2016 (in thousands):

	Three Months Ended February 28, 2015
	Motorsports Event		All Other			Total
Revenues	$	124,749	$	12,139		$	136,888
Depreciation and amortization	22,688		1,321			24,009
Operating income (loss)	24,366		(2,775		)	21,591
Capital expenditures	40,857		2,561			43,418
Total assets	1,680,351		462,079			2,142,430
Equity investments	—		118,972			118,972
	Three Months Ended February 29, 2016
	Motorsports Event		All Other			Total
Revenues	$	139,111	$	3,870		$	142,981
Depreciation and amortization	23,929		1,117			25,046
Operating income (loss)	32,916		(1,750		)	31,166
Capital expenditures	51,867		2,722			54,589
Total assets	1,737,895		500,060			2,237,955
Equity investments	—		102,719			102,719

Intersegment revenues were approximately $0.3 million and $0.4 million for the three months ended February 28, 2015 and February 29, 2016, respectively.

During the three months ended February 29, 2016, the Company recognized approximately $0.8 million 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 months ended February 28, 2015, the Company recognized approximately $0.3 million of similar costs.

During the three months ended February 29, 2016, the Company did not recognize any accelerated depreciation, due to the shortening the service lives of certain assets, associated with DAYTONA Rising and other projects. During the three months ended February 28, 2015, the Company recognized approximately $3.9 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 months ended February 29, 2016, the Company recognized approximately $0.9 million of losses primarily attributable to demolition costs in connection with DAYTONA Rising and other capital improvements. During the three months ended February 28, 2015, the Company recognized approximately $1.6 million 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.