Operating Segments

9 Months Ended

Sep. 30, 2016

Operating Segments [Abstract]

Operating Segments

6.   OPERATING SEGMENTS

The Company has three reportable operating segments: horse racing, card casino, and food and beverage.  The horse racing segment primarily represents simulcast and live horse racing operations.  The Card Casino segment represents operations of Canterbury Park’s Card Casino, and the food and beverage segment represents food and beverage operations provided during simulcast and live racing, in the Card Casino, and during special and other catering and events operations.  The Company’s reportable operating segments are strategic business units that offer different products and services.  They are managed separately because the segments differ in the nature of the products and services provided as well as processes to produce those products and services.  The Minnesota Racing Commission regulates the horse racing and Card Casino segments. 

Depreciation, interest and income taxes are allocated to the segments, but no allocation is made to food and beverage for shared facilities.  However, the food and beverage segment pays approximately 25% of gross revenues earned on live racing and special event days to the horse racing segment for use of the facilities. 

The following tables provide information about the Company’s operating segments (in 000’s):

	Nine Months Ended September 30, 2016
	Horse Racing		Card Casino		Food and Beverage		Total
Net revenues from external customers	$	12,389	$	21,445	$	7,029	$	40,863
Intersegment revenues		653		-		1,015		1,668
Net interest income (expense)		(48)		-		-		(48)
Depreciation		1,430		317		120		1,867
Segment (loss) income before income taxes (1)		1,229		5,317		890		7,436
	At September 30, 2016
Segment Assets	$	46,778	$	478	$	18,912	$	66,168

	Nine Months Ended September 30, 2015
	Horse Racing		Card Casino		Food and Beverage		Total
Net revenues from external customers	$	12,756	$	21,628	$	7,077	$	41,461
Intersegment revenues		674		-		1,029		1,703
Net interest income		2		-		-		2
Depreciation		1,324		317		98		1,739
Segment (loss) income before income taxes		(2,260)		5,302		1,272		4,314
	At December 31, 2015
Segment Assets	$	44,283	$	795	$	17,303	$	62,381

1 – For September 30, 2016, Segment (loss) income before income taxes for Horse Racing includes the gain on sale of land of approximately $3,990,000.

The following are reconciliations of reportable segment revenues, income before income taxes, and assets, to the Company’s consolidated totals (in 000’s): 

	Nine Months Ended September 30,
	2016		2015
Revenues
Total net revenues for reportable segments	$	42,531	$	43,164
Elimination of intersegment revenues		(1,668)		(1,703)
Total consolidated net revenues	$	40,863	$	41,461

Income before income taxes
Total segment income before income taxes	$	7,436	$	4,314
Elimination of intersegment income before income taxes		(1,505)		(1,294)
Total consolidated income before income taxes	$	5,931	$	3,020

	September 30,		December 31,
	2016		2015
Assets
Total assets for reportable segments	$	66,168	$	62,381
Elimination of intercompany receivables		(17,958)		(17,040)
Total consolidated assets	$	48,210	$	45,341