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 nine months ended August 31, 2016 and 2017, respectively (in thousands):



	Three Months Ended August 31, 2016
	Motorsports Event		All Other			Total
Revenues	$	118,531	$	10,863		$	129,394
Depreciation and amortization	24,918		1,078			25,996
Operating income (loss)	2,939		798			3,737
Capital expenditures	18,844		9,612			28,456
Total assets	1,672,589		511,965			2,184,554
Equity investments	—		95,864			95,864
	Three Months Ended August 31, 2017
	Motorsports Event		All Other			Total
Revenues	$	120,137	$	12,169		$	132,306
Depreciation and amortization	26,595		1,218			27,813
Operating income (loss)	748		1,403			2,151
Capital expenditures	21,745		15,246			36,991
Total assets	1,645,465		558,265			2,203,730
Equity investments	—		87,510			87,510
	Nine Months Ended August 31, 2016
	Motorsports Event		All Other			Total
Revenues	$	415,707	$	24,794		$	440,501
Depreciation and amortization	73,750		3,278			77,028
Operating income (loss)	57,748		834			58,582
Capital expenditures	89,678		20,556			110,234
	Nine Months Ended August 31, 2017
	Motorsports Event		All Other			Total
Revenues	$	421,792	$	24,621		$	446,413
Depreciation and amortization	78,966		3,617			82,583
Operating income (loss)	55,520		(1,126		)	54,394
Capital expenditures	37,985		39,574			77,559

Intersegment revenues were approximately $0.4 million and $0.4 million for the three months ended August 31, 2016 and August 31, 2017, respectively and approximately $1.3 million and $1.2 million for the nine months ended August 31, 2016 and August 31, 2017, respectively.

During the three and nine months ended August 31, 2017, the Company recognized approximately $0.1 million and $0.3 million, respectively of costs related to The Phoenix Raceway project (see "Future Liquidity - The Phoenix Raceway Project"). These costs were included in the Motorsports Event segment. During the nine months ended August 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 August 31, 2016. These costs were included in the Motorsports Event segment.

During the three and nine months ended August 31, 2017, the Company recognized approximately $2.1 million and $4.7 million, respectively, of accelerated depreciation, due to the shortening the service lives of certain assets, associated with The Phoenix Raceway Project and the Richmond Reimagined project. During the three and nine months ended August 31, 2016, the Company did not recognize any accelerated depreciation.

During the three and nine months ended August 31, 2017, the Company recognized $0.1 million and $0.3 million, respectively, of asset retirement losses primarily attributable to demolition and/or asset relocation costs in connection with The Phoenix Raceway project. During the nine months ended August 31, 2016, the Company recognized approximately $1.1 million, of similar losses in connection with demolition and/or asset relocation costs in connection with facility capital improvements. For the three months ended August 31, 2016, the Company incurred de minimis similar costs.