Segment Reporting

3 Months Ended

Feb. 28, 2017

Segment Reporting [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, financing and licensing operations, and retail leasing 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 29, 2016 and February 28, 2017 (in thousands):

	Three Months Ended February 29, 2016
	Motorsports Event Operations		All Other			Total
Revenues	$	139,111	$	3,870		$	142,981
Depreciation and amortization	23,929		1,117			25,046
Operating income (loss)	33,034		(1,868		)	31,166
Capital expenditures	51,867		2,722			54,589
Total assets	1,737,371		500,584			2,237,955
Equity investments	—		102,719			102,719
	Three Months Ended February 28, 2017
	Motorsports Event Operations		All Other			Total
Revenues	$	144,799	$	3,520		$	148,319
Depreciation and amortization	25,329		1,172			26,501
Operating income (loss)	35,695		(1,877		)	33,818
Capital expenditures	6,094		15,498			21,592
Total assets	1,687,462		565,691			2,253,153
Equity investments	—		91,770			91,770

Intersegment revenues were approximately $0.4 million and $0.4 million for the three months ended February 29, 2016 and February 28, 2017, respectively.

During the three months ended February 28, 2017, the Company recognized approximately $0.2 million of costs related to the Phoenix Redevelopment project (see "Future Liquidity - Phoenix Redevelopment"). These costs were included in the Motorsports Event Operations segment. During the three months ended February 29, 2016, the Company recognized approximately $0.8 million in marketing and consulting costs that are included in general and administrative expense related to DAYTONA Rising.

During the three months ended February 28, 2017, the Company recognized approximately $0.6 million of accelerated depreciation, due to the shortening the service lives of certain assets, associated with the Phoenix Redevelopment project. During the three months ended February 29, 2016, the Company did not recognize any accelerated depreciation.

During the three months ended February 29, 2016, the Company recognized approximately $0.9 million of losses associated with asset retirements primarily attributable to the removal of assets not fully depreciated in connection with capacity management initiatives at Richmond International Raceway and capital improvements at other facilities. During the three months ended February 28, 2017, the Company recognized de Minimis asset retirement losses attributable to the removal of assets not fully depreciated.