Operating Segments

3 Months Ended

Mar. 31, 2016

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 and other 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. 

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):

	Three Months Ended March 31, 2016
	Horse Racing		Card Casino		Food and Beverage		Total
Net revenues from external customers	$	2,179	$	7,119	$	1,095	$	10,393
Intersegment revenues		83		-		306		389
Net interest income		1		-		-		1
Depreciation		436		106		34		576
Segment (loss) income before income taxes		(435)		1,010		8		583
	At March 31, 2016
Segment Assets	$	46,247	$	690	$	17,520	$	64,457

	Three Months Ended March 31, 2015
	Horse Racing		Card Casino		Food and Beverage		Total
Net revenues from external customers	$	2,035	$	6,841	$	1,005	$	9,881
Intersegment revenues		67		-		328		395
Net interest income		1		-		-		1
Depreciation		428		106		30		564
Segment (loss) income before income taxes		(445)		1,121		151		827
	At December 31, 2015
Segment Assets	$	44,283	$	795	$	17,303	$	62,381

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

	Three Months Ended March 31,
	2016		2015
Revenues
Total net revenues for reportable segments	$	10,782	$	10,276
Elimination of intersegment revenues		(389)		(395)
Total consolidated net revenues	$	10,393	$	9,881

Income before income taxes
Total segment income before income taxes	$	583	$	827
Elimination of intersegment income before income taxes		(59)		(164)
Total consolidated income before income taxes	$	524	$	663

	March 31,		December 31,
	2016		2015
Assets
Total assets for reportable segments	$	64,457	$	62,381
Elimination of intercompany receivables		(16,623)		(17,040)
Total consolidated assets	$	47,834	$	45,341