5. 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. 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 and income taxes are allocated to the segments, but no allocation is made to the food and beverage segment 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 represent a disaggregation of revenues from contracts with customers along with the Company’s operating segments (in 000’s):


	Nine Months Ended September 30, 2020
	Horse Racing		Card Casino		Food and Beverage		Development		Total
Net revenues from external customers	$	9,284	$	15,548	$	2,161	$	24	$	27,017
Intersegment revenues		72		—		374		—		446
Net interest (expense) income		(36)		—		—		538		502
Depreciation		1,491		411		163		—		2,065
Segment (loss) income before income taxes		(2,697)		3,322		(528)		1,968		2,065
Segment tax expense (benefit)		(267)		235		(37)		139		70

	September 30, 2020
Segment Assets	$	34,295	$	3,102	$	25,028	$	30,324	$	92,749


	Nine Months Ended September 30, 2019
	Horse Racing		Card Casino		Food and Beverage		Development		Total
Net revenues from external customers	$	13,018	$	25,351	$	8,244	$	12	$	46,625
Intersegment revenues		909		—		1,088		—		1,997
Net interest (expense) income		(20)		—		—		225		205
Depreciation		1,702		111		174		—		1,987
Segment (loss) income before income taxes		(1,863)		4,765		855		80		3,837
Segment tax expense (benefit)		(736)		1,280		230		21		795

	December 31, 2019
Segment Assets	$	31,618	$	3,327	$	25,430	$	29,074	$	89,449

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, 2020
	2020		2019
Revenues
Total net revenue for reportable segments	$	27,463	$	48,622
Elimination of intersegment revenues		(446)		(1,997)
Total consolidated net revenues	$	27,017	$	46,625


Income before income taxes
Total segment income before income taxes	$	2,065	$	3,837
Elimination of intersegment loss before income taxes		(1,071)		(877)
Total consolidated income before income taxes	$	994	$	2,960


	September 30,		December 31,
	2020		2019
Assets
Total assets for reportable segments	$	92,749	$	89,449
Elimination of intercompany balances		(25,108)		(24,036)
Total consolidated assets	$	67,641	$	65,413