Note 10 - Operating Segments

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

10.  OPERATING SEGMENTS

The Company has four reportable operating segments: horse racing, Card Casino, food and beverage, and development. The horse racing segment primarily represents simulcast and live horse racing operations. The Card Casino segment represents operations of Canterbury Park’s Card Casino, the food and beverage segment represents food and beverage operations provided during simulcast and live racing, in the Card Casino, and during special events, and the development segment represents our real estate development 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 process to produce those products and services. The Minnesota Racing Commission regulates the horse racing and Card Casino segments.

Depreciation, interest expense, 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. Starting in 2020, the food and beverage segment has not paid a commission to the horse racing segment subsequent to the Company's first temporary shutdown of operations starting March 16, 2020. 

The following tables represent a disaggregation of revenues from contracts with customers along with the Company’s operating segments (in 000’s):

	Year Ended December 31, 2021
	Horse Racing		Card Casino		Food and Beverage		Development			Total
Net revenues from external customers	$	15,753	$	38,092	$	6,530	$	25		$	60,400
Intersegment revenues		26		—		811		—			837
Net interest income		—		—		719		—			719
Depreciation		2,567		75		203		—			2,845
Segment income (loss) before income taxes		1,878		13,774		1,580		(1,967	)		15,265
Segment tax expense (benefit)		610		3,487		400		(498	)		3,999

	At December 31, 2021
Segment Assets	$	50,647	$	2,726	$	27,091	$	26,183	$	106,647

	Year Ended December 31, 2020
	Horse Racing			Card Casino			Food and Beverage			Development			Total
Net revenues from external customers	$	10,722		$	19,886		$	2,489		$	43		$	33,140
Intersegment revenues		74			—			430			—			504
Net interest (expense) income		(37	)		—			—			701			664
Depreciation		2,309			226			214			—			2,749
Segment (loss) income before income taxes		(1,610	)		953			(709	)		1,319			(47	)
Segment tax (benefit) expense		(253	)		(108	)		(3	)		(887	)		(1,251	)

	At December 31, 2020
Segment Assets	$	35,620	$	3,027	$	24,862	$	29,475	$	92,984

The following are reconciliations of reportable segment revenues, income before income taxes, and assets, to the Company’s consolidated totals for the years ended December 31, 2021 and 2020 (in 000’s):

	Year Ended December 31,
	2021			2020
Revenues
Total net revenue for reportable segments	$	61,237		$	33,644
Elimination of intersegment revenues		(837	)		(504	)
Total consolidated net revenues	$	60,400		$	33,140

Income (loss) before income taxes
Total segment income (loss) before income taxes	$	15,265	$	(47	)
Elimination of intersegment income (loss) before income taxes		533		(142	)
Total consolidated income (loss) before income taxes	$	15,798	$	(189	)

	December 31,			December 31,
	2021			2020
Assets
Total assets for reportable segments	$	106,647		$	92,984
Elimination of intercompany balances		(23,585	)		(24,179	)
Total consolidated assets	$	83,062		$	68,805