Operating Segments

9 Months Ended

Sep. 30, 2015

Operating Segments [Abstract]

Operating Segments

5.   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 events, as well as the 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. 

The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies in the 2014 Annual Report on Form 10-K. In the first quarter of 2015, the Company changed its reportable operating segment allocation and began allocating “Special Events” to the Food and Beverage segment that were previously included in the Horse Racing segment. The Company has reclassified the corresponding prior period amounts to conform to the current period’s presentation

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, 2015
	Horse Racing		Card Casino		Food and Beverage		Total
Net revenues from external customers	$	12,876	$	21,628	$	7,077	$	41,581
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 September 30, 2015
Segment Assets	$	39,911	$	900	$	17,450	$	58,261

	Nine Months Ended September 30, 2014
	Horse Racing		Card Casino		Food and Beverage		Total
Net revenues from external customers	$	12,178	$	19,997	$	6,031	$	38,206
Intersegment revenues		562		-		992		1,554
Net interest income		2		-		-		2
Depreciation		1,179		317		77		1,573
Segment (loss) income before income taxes		(2,219)		4,956		1,342		4,079
	At December 31, 2014
Segment Assets	$	37,606	$	1,217	$	15,595	$	54,418

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,
	2015		2014
Revenues
Total net revenues for reportable segments	$	43,284	$	39,760
Elimination of intersegment revenues		(1,703)		(1,554)
Total consolidated net revenues	$	41,581	$	38,206

Income before income taxes
Total segment income before income taxes	$	4,314	$	4,079
Elimination of intersegment income before income taxes		(1,294)		(1,567)
Total consolidated income before income taxes	$	3,020	$	2,512

	September 30,		December 31,
	2015		2014
Assets
Total assets for reportable segments	$	58,261	$	54,418
Elimination of intercompany receivables		(16,671)		(14,922)
Total consolidated assets	$	41,590	$	39,496