Segment Reporting

6 Months Ended

May 31, 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 consolidated domestic media rights contract, which continues through the 2024 NASCAR season, continues to be the single-largest contributor to the Company's earnings. These media rights are allocated to specific events, are not facility based, and are derived through a corporate contract, which affects all of the motorsports event facilities within the motorsports event segment. Similarly, corporate sponsorship partnership revenue is primarily derived from corporate contracts, negotiated from the Company's corporate sales team, and allocated to multiple, or all, motorsports entertainment facilities depending on the specific arrangement. Thus, the disclosure of these revenue streams, as they relate to each reporting unit, is not practical.

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, equity investments, 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 and six months ended May 31, 2016 and 2017, respectively (in thousands):

	Three Months Ended May 31, 2016
	Motorsports Event		All Other			Total
Revenues	$	158,065	$	10,061		$	168,126
Depreciation and amortization	24,903		1,083			25,986
Operating income (loss)	21,893		1,786			23,679
Capital expenditures	18,967		8,222			27,189
Total assets	1,678,588		544,132			2,222,720
Equity investments	—		101,038			101,038
	Three Months Ended May 31, 2017
	Motorsports Event		All Other			Total
Revenues	$	156,856	$	8,932		$	165,788
Depreciation and amortization	27,042		1,227			28,269
Operating income (loss)	19,077		(652		)	18,425
Capital expenditures	10,146		8,830			18,976
Total assets	1,643,651		597,737			2,241,388
Equity investments	—		91,968			91,968
	Six Months Ended May 31, 2016
	Motorsports Event		All Other			Total
Revenues	$	297,176	$	13,931		$	311,107
Depreciation and amortization	48,832		2,200			51,032
Operating income (loss)	54,809		36			54,845
Capital expenditures	70,834		10,944			81,778
	Six Months Ended May 31, 2017
	Motorsports Event		All Other			Total
Revenues	$	301,655	$	12,452		$	314,107
Depreciation and amortization	52,371		2,399			54,770
Operating income (loss)	54,772		(2,529		)	52,243
Capital expenditures	16,240		24,328			40,568

Intersegment revenues were approximately $0.6 million and $0.5 million for the three months ended May 31, 2016 and May 31, 2017, respectively and approximately $0.9 million and $0.9 million for the six months ended May 31, 2016 and May 31, 2017, respectively

During the three and six months ended May 31, 2017, the Company recognized approximately $0.1 million and $0.2 million, respectively of costs related to the Phoenix Redevelopment project (see "Future Liquidity - Phoenix Redevelopment"). These costs were included in the Motorsports Event segment. During the six months ended May 31, 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. There were no similar costs incurred in the three months ended May 31, 2016. These costs were included in the Motorsports Event segment.

During the three and six months ended May 31, 2017, the Company recognized approximately $2.0 million and $2.7 million, respectively, of accelerated depreciation, due to the shortening the service lives of certain assets, associated with the Phoenix Redevelopment project. During the three and six months ended May 31, 2016, the Company did not recognize any accelerated depreciation.

During the three and six months ended May 31, 2017, the Company recognized $0.3 million and $0.3 million, respectively, of asset retirement losses primarily attributable to demolition and/or asset relocation costs in connection with the Phoenix Redevelopment project. During the six months ended May 31, 2016, the Company recognized approximately $0.9 million, of similar losses in connection with demolition and/or asset relocation costs in connection with facility capital improvements. For the three months ended May 31, 2016, the Company incurred de minimis similar costs