Segment Reporting

9 Months Ended

Aug. 31, 2011

Segment Reporting

13. 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 reporting 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, and financing and licensing operations are included in the “All Other” segment. The Company evaluates financial performance of the reporting units on operating profit after allocation of corporate general and administrative (“G&A”) expenses. Corporate G&A expenses are allocated to reporting units based on each reporting 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, 2010 and 2011 (in thousands):

	Three Months Ended August 31, 2010
	Motorsports Event		All Other			Total
Revenues	$	151,173	$	9,502		$	160,675
Depreciation and amortization		16,678		2,232			18,910
Operating income		21,690		(117	)		21,573
Capital expenditures		21,681		1,914			23,595
Total assets		1,618,676		261,815			1,880,491
Equity investments		—		33,768			33,768
	Three Months Ended August 31, 2011
	Motorsports Event		All Other			Total
Revenues	$	140,685	$	10,128		$	150,813
Depreciation and amortization		17,188		1,797			18,985
Operating income		20,263		257			20,520
Capital expenditures		21,964		7,869			29,833
Total assets		1,642,727		297,327			1,940,054
Equity investments		—		78,744			78,744
	Nine Months Ended August 31, 2010
	Motorsports		All
	Event		Other			Total
Revenues	$	429,644	$	26,394		$	456,038
Depreciation and amortization		49,262		6,432			55,694
Operating income (loss)		83,783		(1,155	)		82,628
Capital expenditures		53,605		21,139			74,744
	Nine Months Ended August 31, 2011
	Motorsports		All
	Event		Other			Total
Revenues	$	415,318		24,031			439,349
Depreciation and amortization		51,795		5,370			57,165
Operating income (loss)		83,013		(1,070	)		83,943
Capital expenditures		44,371		10,763			55,134

Intersegment revenues were approximately $0.5 million for the three months ended August 31, 2010 and 2011, respectively, and approximately $1.7 million and $1.6 million for the nine months ended August 31, 2010 and 2011, respectively.