Segment Reporting

9 Months Ended

Aug. 31, 2013

Text Block [Abstract]

Segment Reporting

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 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, leasing operations, and financing and licensing 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, 2012 and 2013 (in thousands):

	Three Months Ended August 31, 2012
	Motorsports Event			All Other			Total
Revenues	$	108,000		$	8,397		$	116,397
Depreciation and amortization	17,900			1,466			19,366
Operating income (loss)	917			(221		)	696
Capital expenditures	22,099			457			22,556
Total assets	1,627,761			357,157			1,984,918
Equity investments	—			153,655			153,655
	Three Months Ended August 31, 2013
	Motorsports Event			All Other			Total
Revenues	$	109,974		$	7,213		$	117,187
Depreciation and amortization	25,748			1,414			27,162
Operating income (loss)	(12,310		)	(757		)	(13,067		)
Capital expenditures	24,143			1,105			25,248
Total assets	1,535,363			493,369			2,028,732
Equity investments	—			140,023			140,023
	Nine Months Ended August 31, 2012
	Motorsports Event			All Other			Total
Revenues	$	402,273		$	21,878		$	424,151
Depreciation and amortization	53,407			4,585			57,992
Operating income (loss)	65,007			(1,443		)	63,564
Capital expenditures	46,470			2,178			48,648
	Nine Months Ended August 31, 2013
	Motorsports Event			All Other			Total
Revenues	$	406,263		$	19,014		$	425,277
Depreciation and amortization	62,488			4,174			66,662
Operating income	52,328			(3,168		)	49,160
Capital expenditures	44,276			2,604			46,880

Intersegment revenues were approximately $0.5 million and $0.1 million for the three months ended August 31, 2012 and 2013, respectively, and approximately $1.2 million and $1.3 million for the nine months ended August 31, 2012 and 2013, respectively.

During the three and nine months ended August 31, 2013, the Company recognized approximately $0.5 million and $1.1 million, respectively, in marketing and consulting costs that is included in general and administrative expense related to DAYTONA Rising. These costs were included in the Motorsports segment.

During the three and nine months ended August 31, 2013, the Company recognized approximately $7.4 million, respectively, of accelerated depreciation that was recorded due to the shortening the service lives of certain assets associated with DAYTONA Rising and capacity management initiatives. There were no comparable amounts in fiscal 2012. These costs were included in the Motorsports segment.

During the three and nine months ended August 31, 2013, the Company recognized approximately $8.1 million and $10.4 million, respectively, of losses associated with asset retirements primarily attributable to the removal of assets not fully depreciated in connection with DAYTONA Rising, capacity management initiatives and other capital improvements. Included in these losses were approximately $2.5 million and $3.6 million of expenditures related to demolition and/or asset relocation costs for the three and nine months ended August 31, 2013, respectively. During the three and nine months ended August 31, 2012, the Company recognized approximately $1.4 million and $7.1 million, respectively, of similar losses. These losses on asset retirements were included in the Motorsports segment.