Operating Segments

3 Months Ended

Mar. 31, 2012

Operating Segments [Abstract]

Operating Segments

5. OPERATING SEGMENTS

During the first three months of 2012 and 2011, the Company had three reportable operating segments: horse racing, Card Casino, and concessions. The horse racing segment primarily represents simulcast and live horse racing operations. The Card Casino segment primarily represents operations of Canterbury Park's Card Casino, and the concessions segment primarily represents food and beverage operations provided during simulcast and live racing, in the Card Casino, and during special events. 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.

The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies in the 2011 Annual Report on Form 10-K.

Depreciation, interest expense and income taxes are allocated to the segments but no allocation is made to concessions for shared facilities. However, the concessions 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):

	Three Months Ended March 31, 2012
	Horse Racing			Card Casino		Concessions			Total
Net revenues from external customers	$	2,132		$	6,543	$	934		$	9,609
Intersegment revenues		50			―		335			385
Net interest income		1			―		―			1
Depreciation		280			158		36			474
Segment loss (income) before income taxes		(79	)		1,140		73			1,134
	At March 31, 2012
Segment Assets	$	33,341		$	2,683	$	11,441		$	47,465
	Three Months Ended March 31, 2011
	Horse Racing			Card Casino		Concessions			Total
Net revenues from external customers	$	1,982		$	5,601	$	725		$	8,308
Intersegment revenues		25			―		318			343
Net interest income		1			―		―			1
Depreciation		286			135		40			461
Segment (loss) income before income taxes		(75	)		773		(1	)		697
	At December 31, 2011
Segment Assets	$	30,832		$	2,838	$	11,222		$	44,892

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

	Three Months Ended March 31,
	2012			2011
Revenues
Total net revenue for reportable segments	$	9,994		$	8,651
Elimination of intersegment revenues		(385	)		(343	)
Total consolidated net revenues	$	9,609		$	8,308
Income (loss) before income taxes
Total segment income (loss) before income taxes	$	1,134		$	697
Elimination of intersegment (income) loss before income taxes		(128	)		(59	)
Total consolidated income (loss) before income taxes	$	1,006		$	638
Assets	March 31, 2012			December 31, 2011
Total assets for reportable segments	$	47,465		$	44,892
Elimination of intercompany receivables		(10,871	)		(10,708	)
Total consolidated assets	$	36,594		$	34,184