SPEEDWAY MOTORSPORTS INC, 10-Q filed on 7/27/2017
Quarterly Report
Document And Entity Information
6 Months Ended
Jun. 30, 2017
Jul. 27, 2017
Document Information [Line Items]
Entity Registrant Name
SPEEDWAY MOTORSPORTS INC
Entity Central Index Key
0000934648
Trading Symbol
trk
Current Fiscal Year End Date
--12-31
Entity Filer Category
Accelerated Filer
Entity Current Reporting Status
Yes
Entity Voluntary Filers
No
Entity Well-known Seasoned Issuer
No
Entity Common Stock, Shares Outstanding (in shares)
41,001,116
Document Type
10-Q
Document Period End Date
Jun. 30, 2017
Document Fiscal Year Focus
2017
Document Fiscal Period Focus
Q2
Amendment Flag
false
Consolidated Balance Sheets (Current Period Unaudited)(USD $)
In Thousands, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Current Assets:
Cash and cash equivalents
$87,653
$79,342
Accounts receivable, net
46,505
29,444
Prepaid and refundable income taxes
285
7,384
Inventories, net
8,009
8,212
Prepaid expenses
4,075
3,527
Total Current Assets
146,527
127,909
Note Receivable
1,060
1,143
Other Assets
23,468
23,142
Property and Equipment, Net (Note 2)
983,465
1,000,230
Other Intangible Assets, Net
298,383
298,383
Goodwill
46,225
47,342
Total
1,499,128
1,498,149
Current Liabilities:
Current maturities of long-term debt
7,662
7,657
Accounts payable
17,420
13,497
Deferred race event and other income, net
51,918
44,782
Accrued income taxes
10,482
  
Accrued interest
4,287
4,311
Accrued expenses and other current liabilities
22,437
24,424
Total Current Liabilities
114,206
94,671
Long-term Debt
228,844
254,398
Deferred Income
3,357
3,742
Deferred Income Taxes, Net
324,764
329,398
Other Liabilities
18,581
18,157
Total Liabilities
689,752
700,366
Commitments and Contingencies
  
  
Stockholders Equity:
Preferred Stock, $.10 par value, shares authorized 3,000,000, no shares issued
  
  
Common Stock, $.01 par value, shares authorized 200,000,000, issued and outstanding 41,018,000 in 2017 and 41,098,000 in 2016
460
459
Additional Paid-in Capital
260,544
258,880
Retained Earnings
657,281
644,308
Treasury Stock at cost, shares 4,987,000 in 2017 and 4,830,000 in 2016
(108,909)
(105,864)
Total Stockholders Equity
809,376
797,783
Total
$1,499,128
$1,498,149
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals)(USD $)
Jun. 30, 2017
Dec. 31, 2016
Preferred stock par value (in dollars per share)
$0.10
$0.10
Preferred stock, shares authorized (in shares)
3,000,000
3,000,000
Preferred stock, shares issued (in shares)
0
0
Common Stock, par value (in dollars per share)
$0.01
$0.01
Common Stock, shares authorized (in shares)
200,000,000
200,000,000
Common Stock, shares issued (in shares)
41,018,000
41,098,000
Common Stock, shares outstanding (in shares)
41,018,000
41,098,000
Treasury Stock at cost, shares (in shares)
4,987,000
4,830,000
Consolidated Statements of Operations (Unaudited)(USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Weighted Average Shares Outstanding (in shares)
41,045
41,184
41,066
41,206
Diluted Earnings Per Share (in dollars per share)
$0.67
$0.60
$0.62
$0.62
Weighted Average Shares Outstanding (in shares)
41,056
41,195
41,082
41,220
Revenues:
Admissions
$29,141
$29,634
$43,891
$45,073
Event related revenue
50,080
49,339
69,039
71,069
NASCAR broadcasting revenue
92,415
89,167
131,226
126,614
Other operating revenue
7,617
7,548
15,422
16,108
Total Revenues
179,253
175,688
259,578
258,864
Expenses and Other:
Direct expense of events
33,231
34,730
45,688
47,790
NASCAR event management fees
54,150
52,478
77,210
74,776
Other direct operating expense
5,031
4,955
10,171
10,544
General and administrative
26,944
27,312
49,530
51,386
Depreciation and amortization
13,469
13,570
30,974
26,941
Interest expense, net
3,163
3,291
6,168
6,630
Impairment of goodwill (Note 4)
1,117
  
1,117
  
Other (income) expense, net
(376)
(13)
202
55
Total Expenses and Other
136,729
136,323
221,060
218,122
Income Before Income Taxes
42,524
39,365
38,518
40,742
Provision for Income Taxes
(15,218)
(14,618)
(13,147)
(15,134)
Net Income
$27,306
$24,747
$25,371
$25,608
Basic Earnings Per Share (in dollars per share)
$0.67
$0.60
$0.62
$0.62
Consolidated Statement of Stockholders' Equity (Unaudited)(USD $)
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Treasury Stock [Member]
Total
Balance at Dec. 31, 2016
$459,000
$258,880,000
$644,308,000
$(105,864,000)
$797,783,000
Balance (in shares) at Dec. 31, 2016
41,098,000
Net income
25,371,000
25,371,000
Share-based compensation (in shares)
76,000
Share-based compensation
1,000
1,664,000
1,665,000
Quarterly cash dividends of $0.15 per share of common stock
(12,398,000)
(12,398,000)
Repurchases of common stock (in shares)
(156,000)
Repurchases of common stock
(3,045,000)
(3,045,000)
Balance at Jun. 30, 2017
$460,000
$260,544,000
$657,281,000
$(108,909,000)
$809,376,000
Balance (in shares) at Jun. 30, 2017
41,018,000
Consolidated Statement of Stockholders' Equity (Unaudited) (Parentheticals) (Retained Earnings [Member], USD $)
6 Months Ended
Jun. 30, 2017
Retained Earnings [Member]
Cash dividends, per share of common stock (in dollars per share)
$0.15
Consolidated Statements of Cash Flows (Unaudited)(USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Cash Flows from Operating Activities:
Net income
$25,371
$25,608
Adjustments to reconcile net income to net cash provided by operating activities:
Impairment of goodwill
1,117
  
Deferred loan cost amortization
769
745
Loss (gain) on disposals of property and equipment and insurance recovery
114
(337)
Depreciation and amortization
30,974
26,941
Amortization of deferred income
(523)
(546)
Deferred income tax provision
(4,539)
12,219
Share-based compensation
1,665
1,708
Changes in operating assets and liabilities:
Accounts receivable
(17,341)
(8,581)
Prepaid, refundable and accrued income taxes
16,546
1,667
Inventories
203
(1,844)
Prepaid expenses
(26)
282
Increase (Decrease) in Accounts Payable
2,473
4,161
Deferred race event and other income
7,152
16,240
Accrued interest
(24)
3
Accrued expenses and other liabilities
(1,731)
(975)
Deferred income
122
85
Other assets and liabilities
(182)
(180)
Net Cash Provided By Operating Activities
62,140
77,196
Cash Flows from Financing Activities:
Principal payments on long-term debt
(26,157)
(32,177)
Dividend payments on common stock
(12,398)
(12,428)
Repurchases of common stock
(3,045)
(2,887)
Net Cash Used By Financing Activities
(41,600)
(47,492)
Cash Flows from Investing Activities:
Payments for capital expenditures
(15,066)
(28,157)
Proceeds from sales of property and equipment and insurance recovery
2,474
467
Repayment of note receivable
363
79
Net Cash Used By Investing Activities
(12,229)
(27,611)
Net Increase in Cash and Cash Equivalents
8,311
2,093
Cash and Cash Equivalents at Beginning of Period
79,342
82,010
Cash and Cash Equivalents at End of Period
87,653
84,103
Supplemental Cash Flow Information:
Cash paid for interest, net of amounts capitalized
6,515
9,296
Supplemental Non-Cash Investing and Financing Activities Information:
Increase in accounts payable for capital expenditures
$1,447
$4,335
Note 1 - Description of Business
Nature of Operations [Text Block]
1.
DESCRIPTION OF BUSINESS
 
Basis of Presentation
– The consolidated financial statements include the accounts of Speedway Motorsports, Inc. and all of its wholly-owned and operating subsidiaries: Atlanta Motor Speedway LLC (AMS), Bristol Motor Speedway LLC (BMS), Charlotte Motor Speedway LLC (CMS), Kentucky Raceway LLC d/b/a Kentucky Speedway (KyS), Nevada Speedway LLC d/b/a Las Vegas Motor Speedway (LVMS), New Hampshire Motor Speedway, Inc. (NHMS), North Wilkesboro Speedway, Inc. (NWS), Speedway Sonoma LLC (Sonoma Raceway or SR), Texas Motor Speedway, Inc. (TMS), SMISC Holdings, Inc. d/b/a SMI Properties (SMI Properties), US Legend Cars International, Inc. (Legend Cars), Oil-Chem Research Corporation (Oil-Chem), SMI Trackside LLC (SMI Trackside), Speedway Funding LLC, Speedway Properties Company LLC a/k/a Performance Racing Network (PRN), Speedway Media LLC a/k/a Racing Country USA (RCU), and TSI Management Company LLC d/b/a The Source International LLC (TSI) (collectively, the Company, SMI, we, our or us). Hereafter, references to “the Company’s” or “eight” speedways exclude NWS, which presently has
no
significant operations and assets consist primarily of real estate which has
no
significant fair value. See Notes
1
and
2
to the Consolidated Financial Statements in our
2016
Annual Report on Form
10
-K (
2016
Annual Report) for further description of our business operations, properties and scheduled events.
 
In early
2017,
the NASCAR Sprint Cup Series became the Monster Energy NASCAR Cup Series and that naming convention is used throughout this document.
 
Racing Events
– In
2017,
we plan to hold
24
major annual racing events sanctioned by the National Association for Stock Car Auto Racing, Inc. (NASCAR), including
13
Monster Energy Cup and
11
Xfinity Series racing events. We also plan to hold
eight
NASCAR Camping World Truck Series,
three
NASCAR K&N Pro Series,
four
NASCAR Whelen Modified Tour,
two
IndyCar Series,
six
major National Hot Rod Association (NHRA),
one
Automobile Racing Club of America (ARCA) and
three
World of Outlaws (WOO) racing events. In
2016,
we held
24
major annual racing events sanctioned by NASCAR, including
13
Monster Energy Cup and
11
Xfinity Series racing events. We also held
eight
NASCAR Camping World Truck Series,
three
NASCAR K&N Pro Series,
four
NASCAR Whelen Modified Tour,
two
IndyCar Series,
six
major NHRA,
one
ARCA and
three
WOO racing events.
Note 2 - Significant Accounting Policies and Other Disclosures
Significant Accounting Policies [Text Block]
2.
SIGNIFICANT ACCOUNTING POLICIES AND OTHER DISCLOSURES
 
These unaudited consolidated financial statements should be read in conjunction with our consolidated financial statements included in our
2016
Annual Report. In management's opinion, these unaudited consolidated financial statements contain all adjustments necessary for their fair statement at interim periods in accordance with accounting principles generally accepted in the United States. All such adjustments are of a normal recurring nature unless otherwise noted. The results of operations for interim periods are
not
necessarily indicative of operating results that
may
be expected for the entire year due to the seasonal nature of the Company's motorsports business. See Note
2
to the Consolidated Financial Statements in our
2016
Annual Report for further discussion of significant accounting policies.
 
Quarterly Reporting
and Certain Schedule Changes
– We recognize revenues and operating expenses for all events in the calendar quarter in which conducted. Changes in race schedules at our speedways from time to time, including speedway acquisitions, can lessen the comparability of operating results between quarterly financial statements of successive years and increase or decrease the seasonal nature of our motorsports business. The more significant racing schedule changes for the
three
and
six
months ended
June 30, 2017
as compared to
2016
include:
 
 
Poor weather resulted in postponing and next-day rescheduling
one
Monster Energy NASCAR Cup race, and delaying the completion of
one
NASCAR Xfinity race, at BMS in the
second
quarter
2017
Poor weather resulted in delaying the completion of
one
Monster Energy NASCAR Cup race at CMS in the
second
quarter
2017
TMS held
one
IndyCar race in the
second
quarter
2017;
poor weather at TMS resulted in rescheduling an IndyCar race from the
second
q
uarter
2016
to the
third
quarter
2016
as further discussed below
 
 
Poor weather resulted in postponing and rescheduling 
an IndyCar race at TMS from the
second
quarter
2016
to the
third
quarter
2016.
The Company offered to honor unused tickets through exchange for race tickets to TMS’s Monster Energy NASCAR Cup race in
April 2017
or IndyCar race in
June 2017.
The exchange offer expired in
June 2017,
and cash refunds were
not
offered. Tickets exchanged for race events held in
2017
were
not
significant.
As of
December 31, 2016,
we had deferred race event income of
$524,000
for unredeemed tickets associated with TMS’s
2016
IndyCar race, all of which was recognized in the
second
quarter
2017.
Consolidated Statements of Cash Flows
– 
Before
December 31, 2016,
cash we collected and temporarily held on behalf of our
third
-party food and beverage concessionaire, and
not
remitted until after period end, was presented separately from cash flows from operating activities. We now include such amounts in cash flows from operating activities for both periods, increasing cash flow from operations, and the change in accounts payable, by
$204,000
for the
six
months ended
June 30, 2016.
There was
no
impact on the Consolidated Balance Sheets or Statements of Operations.
 
Income Taxes
– We provide for income taxes at the end of each interim period based on management’s best estimate of the annual estimated effective income tax rate. Cumulative adjustments to our annual estimated effective income tax rate are recorded in the interim period in which a change in the annual estimated effective income tax rate is determined. Cash paid for income taxes excludes any previous overpayments the Company
may
have elected to apply to income tax liabilities. The Company has
no
undistributed foreign earnings or cash or cash equivalents held outside of the US. See Notes
2
and
8
to the Consolidated Financial Statements in our
2016
Annual Report for additional information on our accounting for income taxes.
 
Our effective income tax rate for the
three
months ended
June 30, 2017
and
2016
was
35.8%
and
37.1%,
and for the
six
months ended
June 30, 2017
and
2016
was
34.1%
and
37.1%,
respectively.
The tax rates for the
three
and
six
months ended
June 30, 2017
reflect reduced net deferred income tax liabilities of
$481,000
and
$1,791,000
for anticipated lower state income tax rates associated with race date realignments, and other lower effective state income tax rates. The tax rate for the
six
months ended
June 30, 2017
was partially offset by reduced deferred tax assets associated with certain state net operating loss carryforwards of
$515,000.
We paid cash of
$725,000
and
$650,000
for income taxes in the
six
months ended
June 30, 2017
and
2016.
 
Accounting for Uncertainty in Income Taxes
– Income tax liabilities for unrecognized tax benefits approximate
$12,006,000
at
June 30, 2017
and
December 31, 2016,
$11,746,000
of which relates to our discontinued operation (see Note
1
to the Consolidated Financial Statements in our
2016
Annual Report). Of those amounts,
$11,794,000
is included in noncurrent other liabilities, all of which would favorably impact our effective tax rate if recognized
,
and
$212,000
is included in deferred tax liabilities, at both
June 30, 2017
and
December 31, 2016.
As of
June 30, 2017
and
December 31, 2016,
management believes
$260,000
of unrecognized tax benefits will be recognized within the next
twelve
months. Interest and penalties associated with unrecognized tax benefits were insignificant for the
three
and
six
months ended
June 30, 2017
and
2016.
As of
June 30, 2017
and
December 31, 2016,
we had
$159,000
and
$140,000
accrued for the payment of interest and penalties on uncertain tax positions, which is included in other noncurrent liabilities. The tax years that remain open to examination include
2006
through
2008,
and
2012
through
2016,
by the California Franchise Tax Board,
2013
through
2016
by the Internal Revenue Service, and
2012
 through
2016
by other state taxing jurisdictions to which we are subject.
 
Income Tax Benefits
– Applicable accounting guidance
may
require establishing valuation allowances for certain deferred tax assets or income tax liabilities for unrecognized tax benefits, notwithstanding management believes associated tax filing positions are sustainable and are or will be reflected in its tax filings. At
June 30, 2017,
liabilities for unrecognized tax benefits totaled
$12.0
million. Should those tax positions
not
be fully sustained if examined, an acceleration of material income taxes payable could occur. Where
no
net income tax benefit had been previously reflected because of providing a valuation allowance on related deferred tax assets, our future results of operations might
not
be significantly impacted. However, resulting cash required for payments of income taxes could be material in the period in which such determination is made.
 
Taxes Collected from Customers
– We report sales, admission and other taxes collected from customers on both a gross and net basis in operations. Such taxes reported on a gross basis for the
three
months ended
June 30, 2017
and
2016
were
$2,318,000
and
$2,451,000,
and for the
six
months ended
June 30, 2017
and
2016
were
$2,729,000
and
$2,817,000.
 
Advertising Expenses
– Event specific advertising costs are expensed when an associated event is held and included principally in direct expense of events. Non-event related advertising costs are expensed as incurred and included principally in other direct operating expense. Advertising expense amounted to
$5,419,000
and
$5,655,000
for the
three
months ended
June 30, 2017
and
2016,
and
$7,023,000
and
$7,582,000
for the
six
months ended
June 30, 2017
and
2016.
There were
no
deferred direct-response advertising costs at
June 30, 2017
or
December 31, 2016.
 
TMS Mineral Rights Lease Receipts
– We recognized royalty revenue of
$530,000
and
$424,000
in the
three
months ended
June 30, 2017
and
2016,
and
$978,000
and
$1,051,000
in the
six
months ended
June 30, 2017
and
2016
under a natural gas mineral rights lease agreement and a joint exploration agreement entitling TMS to stipulated stand-alone and shared royalties, as further described in Note
2
to the Consolidated Financial Statements in our
2016
Annual Report. 
Such revenues can vary from associated volatility in natural gas price levels and common diminishing well production. 
The agreements stipulate that TMS distribute
25%
of production royalty revenues to the lessee, and obligate TMS to spend amounts equal to royalties received on TMS facility and road infrastructure improvements beginning in
2017,
up to specified cumulative amounts. However, at this time, management believes
2017
revenues will
not
differ significantly from
2016,
and that our infrastructure spending will continue to exceed anticipated future royalties. As of
June 30, 2017
and
December 31, 2016,
there was
no
deferred income associated with these agreements.
 
Fair Value of Financial Instruments
– We follow applicable authoritative guidance which requires that financial and non-financial assets and liabilities measured and reported on a fair value basis be classified, disclosed and categorized as further described below. Fair value estimates are based on relevant market information and single broker quoted market prices where available at a specific point in time, and changes in assumptions or market conditions could significantly affect estimates. The carrying values of cash and cash equivalents, accounts receivable, certain other assets and accounts payable approximate fair value because of the short maturity of these financial instruments. Cash surrender values are carried at fair value based on binding broker quoted market prices. Notes receivable and bank revolving credit facility and term loan borrowings are variable interest rate financial instruments and, therefore, carrying values approximate fair value. The fixed rate senior notes payable are publicly traded and estimated fair values are based on single broker quoted market prices. Other long-term debt bears interest approximating market rates or where non-interest bearing is discounted based on estimated current cost of borrowings; therefore, carrying values approximate market value. There have been
no
changes or transfers between category levels or classes. The following table presents estimated fair values and categorization levels of our financial instruments as of
June 30, 2017
and
December 31, 2016 (
in thousands):
 
             
2017
   
2016
 
   
Level
 
Class
 
Carrying
Value
   
Fair Value
   
Carrying
Value
   
Fair Value
 
                                           
Assets
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
   
1
 
R
  $
87,653
    $
87,653
    $
79,342
    $
79,342
 
Notes receivable
   
2
 
NR
   
1,060
     
1,060
     
1,143
     
1,143
 
Cash surrender values
   
2
 
NR
   
9,360
     
9,360
     
8,919
     
8,919
 
                                           
Liabilities
(principal)
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Floating rate revolving Credit Facility, including Term Loan
   
2
 
NR
   
40,000
     
40,000
     
66,000
     
66,000
 
5.125% Senior Notes Payable due 2023
   
2
 
NR
   
200,000
     
205,000
     
200,000
     
202,500
 
Other long-term debt
   
2
 
NR
   
1,049
     
1,049
     
1,206
     
1,206
 
 
Level
1:
Quoted market prices in active markets for identical assets or liabilities.
Level
2:
Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level
3:
Unobservable inputs that are
not
corroborated by market data.
Class
R:
Measured at fair value on recurring basis, subsequent to initial recognition.
Class
 NR:
Measured at fair value on nonrecurring basis, subsequent to initial recognition.
 
Property and Equipment
– From time to time, we
may
decide to repurpose various seating, suites and other areas at our speedways for modernizing our facilities, alternative marketing or development purposes such as offering expanded premium hospitality, RV camping and advertising areas, or wider seating and improved sight lines. When management decides on repurpose and removal, depreciation is accelerated and recorded prospectively over shortened estimated remaining useful lives of the assets, and accounted for as a change in estimate, beginning when management contracts and begins removal. In the
first
quarter
2017,
we contracted and began removing approximately
7,000
seats at CMS,
17,000
seats at KyS and
12,000
seats at NHMS, which was substantially completed in the
first
half of
2017.
As such, we recorded pre-tax charges for accelerated depreciation and costs of removal (included in other expense, net) aggregating approximately 
$4,597,000,
before income tax benefits of
$1,700,000,
in the
first
quarter
2017.
These charges are included in our "motorsports event related" reporting segment (see Note
10
).
 
Recently Issued Accounting Standards
– The Financial Accounting Standards Board (FASB) issued Accounting Standards Update
No.
 
2014
-
09
"Revenue from Contracts with Customers (Topic
606
): Section A - Summary and Amendments That Create Revenue from Contracts with Customers and Other Assets and Deferred Costs - Contracts with Customers (Subtopic
340
-
40
)" which enhances comparability and clarifies principles of revenue recognition arising from contracts with customers that supersedes most current revenue recognition guidance. The guidance includes the core principle that entities recognize revenue to depict transfers of promised goods or services to customers in amounts that reflect the consideration entities expect to be entitled in exchange for those goods or services, and expands required financial statement disclosures regarding revenue recognition. The FASB has recently issued several amendments to the new standard, including Update
No.
2016
-
08
"Revenue from Contracts with Customers (Topic
606
) - Principal versus Agent Considerations" clarifying implementation guidance for those considerations in Update
No.
2014
-
09,
and Update
No.
2016
-
10
"Revenue from Contracts with Customers (Topic 
606
) - Identifying Performance Obligations and Licensing" amending the guidance in Update
No.
2014
-
09
related to those items. The FASB issued Update
No.
2015
-
14
approving deferral of Update
No.
2014
-
09
for
one
year, with such guidance now effective for annual reporting periods beginning after
December 15, 2017,
including interim periods within that reporting period. Early application is permitted as of annual reporting periods beginning after
December 15, 2016,
including interim reporting periods within that reporting period. The guidance
may
be applied retrospectively to each prior period presented or retrospectively with cumulative effects recognized as of the date of adoption. 
The Company
continues preliminary evaluation of the potential impact that adoption
may
have on its financial statements, including associated accounting policies, processes, and system requirements to enable timely and accurate reporting. The Company plans to adopt this new guidance in the
first
quarter
2018
using the modified retrospective method of adoption
 
The FASB issued Accounting Standards Update
No.
2015
-
11
"Inventory (Topic
330
): Simplifying the Measurement of Inventory” which requires measuring inventory at the lower of cost and net realizable value based on estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation (changed from the previous guidance of lower of cost or market). This update also clarified various other inventory measurement and disclosure requirements. The update does
not
apply to inventory measured using the LIFO or retail inventory methods. The guidance is effective for annual reporting periods beginning after
December 15, 2016,
including interim periods within that reporting period, and applied prospectively. The Company’s adoption of this guidance as of
January 1, 2017
had
no
significant impact on its financial statements or disclosures.
 
The FASB issued Accounting Standards Update
No.
2016
-
02
“Leases (Subtopic
842
)” which replaces all current US GAAP guidance on this topic, and requires lessees to recognize assets and liabilities arising from leases as well as extensive quantitative and qualitative disclosures. Lessees will need to recognize on their balance sheets right-of-use assets and lease liabilities for the majority of their leases (other than leases meeting the definition of a short-term lease). Right-of-use assets will be measured at lease liability amounts, adjusted for lease prepayments, lease incentives received and lessee
’s initial direct costs. Lease liabilities will equal the present value of lease payments. Assets will be based on the liability, subject to adjustment, such as for initial direct costs. Operating leases
may
typically result in straight-line expense, while finance leases similar to front-loaded expense pattern. Classification will be based on criteria largely similar to those applied in current lease accounting. The guidance is effective for fiscal years beginning after
December 15, 2018,
and interim periods within those fiscal years. Early adoption is permitted. The guidance is required to be applied using the modified retrospective approach for all leases existing as of the effective date, requires application at the beginning of the earliest comparative period presented, and provides for certain practical expedients. The Company is currently evaluating the potential impact that adoption
may
have on its financial statements.
 
The FASB issued Accounting Standards Update
No.
2016
-
15
“Statement of Cash Flows (Topic
23
) - Classification of Certain Cash Receipts and Cash Payments” which provides specific guidance on
eight
cash flow classification issues. The guidance is effective for fiscal years beginning
 after
December 15, 2017,
and interim periods within those fiscal years, and should be applied using a retrospective transition method to each period presented. Early adoption is permitted, and any amendments must be adopted in the same period. At this time, the Company believes adoption will have
no
significant impact on its financial statements, and plans to apply this guidance to future classifications when applicable.
 
The FASB issued Accounting Standards Update
No.
2017
-
04
“Intangibles
– Goodwill and Other (Topic
350
): Simplifying the Test of Goodwill Impairment” which simplifies how an entity is required to test goodwill for impairment by eliminating Step
2
(measuring goodwill impairment loss by comparing implied fair value of a reporting unit’s goodwill to the carrying amount of that goodwill) from the impairment test. Under this update, entities should perform goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount, and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The same impairment assessment applies to all reporting units, and entities still have the option to perform qualitative assessment for a reporting unit to determine if quantitative impairment testing is necessary. This update modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. Entities will
no
longer determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. The Company is required to adopt this guidance for its annual or any interim goodwill impairment tests in fiscal years beginning after
December 15, 2019,
and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after
January 1, 2017.
The Company early adopted this guidance for its annual impairment testing performed in the
second
quarter
2017
(see Note
4
).
Note 3 - Inventories
Inventory Disclosure [Text Block]
3.
INVENTORIES
 
Inventories, net consist of the following components (in thousands):
 
   
June 30,
   
December 31,
 
   
2017
   
2016
 
Finished race cars, parts and accessories
  $
5,021
    $
5,263
 
Souvenirs and apparel
   
2,252
     
2,131
 
Micro-lubricant
®
and other
   
736
     
818
 
Total
  $
8,009
    $
8,212
 
Note 4 - Goodwill and Other Intangible Assets
Goodwill and Intangible Assets Disclosure [Text Block]
4.
GOODWILL AND OTHER INTANGIBLE ASSETS
 
Annual Impairment Assessment
The Company evaluates goodwill and other intangible assets for possible impairment annually in the
second
quarter, or when events or circumstances indicate possible impairment
may
have occurred. Other intangible assets are comprised of nonamortizable race event sanctioning and renewal agreements. See Notes
2
and
5
to the Consolidated Financial Statements in our
2016
Annual Report for additional information on the Company’s goodwill and other intangible assets and assessment methodology and evaluation.
 
Management's latest annual assessment in the
second
quarter
201
7
was based predominately on management's best estimate of future discounted operating cash flows and profitability attributable to such assets for all individual reporting units and identified intangible assets. The impairment evaluation considered NASCAR’s approved realignment of
one
annual Monster Energy Cup Series and
one
annual Camping World Truck Series racing event from NHMS, and an annual Xfinity Series racing event from KyS, to LVMS beginning in
2018,
and anticipated associated net increases in our future long-term cash flows and operating profits.
Management also considered that the estimated market value for comparable NASCAR race event sanction and renewal agreements (we had agreements with NASCAR to annually conduct
thirteen
Monster Energy Cup,
eleven
Xfinity and
eight
Camping World Truck Series races as of the evaluation date), combined with the estimated fair value for all other Company net assets, substantially exceeds its current market capitalization. The inputs for measuring fair value are considered "Level
3"
or unobservable inputs that are
not
corroborated by market data under applicable fair value authoritative guidance, as quoted market prices are
not
available. Management believes the methods used to determine fair value and evaluate impairment were appropriate, relevant, and represent methods customarily available and used for such purposes and are the best available estimate of fair value. Among other factors, the latest assessment assumes projected cash flow and profitability recovery, using modest annual inflationary growth rates for projected revenue streams and operating costs (other than NASCAR broadcasting revenues and event management fees), and strategic amounts of planned capital expenditures. Management projected annual increases in contracted NASCAR broadcasting rights revenues, and associated NASCAR event management fees, based on historical and anticipated rates which are supported by recently negotiated multi-year contracts. NASCAR event management fees for years after
2020
have
not
been negotiated, and future annual fees could differ substantially from those assumed in management’s impairment assessment. Management also considered recent market trading ranges of price to earnings and sales multiples, cash flow and other traditional valuation methods, control premiums, and other market information related to our common stock from historical and forward-looking perspectives.
 
Our
2017
annual assessment found the estimated fair value of each reporting unit and each indefinite-lived race date intangible asset substantially exceeded its associated carrying value except for NHMS and TMS race date agreements and SMIP
’s reporting unit. As of
June 30, 2017
and
December 31, 2016,
the carrying values of non-amortizable race date event sanctioning and renewal agreements associated with NHMS and TMS were approximately
$199.6
million and
$98.8
million. We recognized an impairment for NHMS race date intangible assets in
2015
reducing carrying values to estimated fair value at that time resulting in nominal excess fair value in future impairment assessments. The estimated excess of fair value of identified intangible assets associated with NHMS and TMS, is relatively nominal at this time, heightening sensitivity to management’s assumptions used in estimating future discounted cash flows and profitability and associated risk of failing impairment testing. Management’s assumptions considered the following factors and conditions. NHMS was acquired in
2008,
largely before the severe economic recession, which has resulted in long-term operating challenges for many major sports. The
2017
evaluation reflects continuing lowered estimated future cash flows because the economic recovery has been slower and weaker than previous forecasts, and ongoing lower than anticipated revenues for various major racing events. The evaluation also reflects, similar to challenges faced by many major sports, reduced visibility on profit recovery due to factors such as changing demographics, evolving entertainment choices for fans, appealing “at-home viewing” experiences and retirement of popular long-standing “megastars”. We have lowered our expectations for forecasted growth rates for certain revenues and profit recovery. However, those expectations and forecasts are based on many factors out of our control, and could be found unachievable. Such ultimate outcome could adversely impact our estimates of fair values, particularly for NHMS and TMS race date intangible assets.
 
Our
2017
annual assessment indicated that the carrying value of goodwill associated with SMIP, which conducts event and non-event souvenir merchandising, exceeded its estimated fair value because of potentially unfavorable merchandising business model developments. As such, a non-cash impairment charge of
$1,117,000
, before income tax benefits of
$419,000,
was reflected in the
second
quarter
2017
to reduce associated goodwill to
$0.
The
2017
impairment charge pertains to our “motorsports event related” reporting segment (see Note
10
).
 
There have since been
no
other events or circumstances that indicate possible impairment, and management believes our operational and cash flow forecasts support our conclusions that
no
unrecognized impairment exists as of
June 30, 2017.
Our future profitability or success associated with the NASCAR race realignments described above could significantly differ from management expectations and estimates, and are subject to numerous factors, conditions and assumptions, many of which are beyond our control.
Different economic or industry conditions or assumptions, and changes in projected cash flows or profitability, if significantly negative or unfavorable, could have a material adverse effect on the impairment evaluation and our future financial condition or results of operations. The evaluations are subjective and based on conditions, trends and assumptions existing at the time of evaluation.
 
Other
Information
 
The changes in the carrying value of other intangible assets and goodwill during the
six
months ended
June 30, 2017
and
2016
are set forth below. The carrying amounts include accumulated impairments for goodwill of
$149.7
million and
$148.6
million at
June 30, 2017
and
December 31, 2016,
and for other intangible assets of
$99.9
million at both
June 30, 2017
and
December 31, 2016.
 
Changes in the carrying value of other intangible assets and
goodwill are as follows (in thousands):
 
   
Other Intangible Assets
   
Goodwill
 
   
201
7
   
2016
   
2017
   
201
6
 
Balance, beginning of year
  $
298,383
    $
298,394
    $
47,342
    $
47,342
 
Increase from acquisitions
   
     
     
     
 
Decrease from impairment charges 
   
     
     
(1,117
)
   
 
Balance, end of
period
  $
298,383
    $
298,394
    $
46,225
    $
47,342
 
Note 5 - Long-term Debt
Long-term Debt [Text Block]
5.
LONG-TERM DEBT
 
Bank Credit Facility
Our Credit Facility, among other things: (i) provides for a
five
-year
$100,000,000
senior secured revolving credit facility, with separate sub-limits of
$50,000,000
for standby letters of credit and
$10,000,000
for swing line loans; (ii) provides for a
five
-year
$150,000,000
senior secured term loan (which was fully drawn) and a
five
-year delayed draw term loan of up to
$50,000,000
(which was fully drawn in
March 2016
and repaid in the
second
quarter
2016
) (the Term Loan or Term Loans); (iii) matures in
December 2019; (
iv) contains an accordion feature allowing the Company to increase revolving commitments or establish a term loan up to an aggregate additional
$100,000,000
or
$200,000,000,
respectively (or a combined aggregate additional amount of up to
$250,000,000
) with certain lender commitment conditions; (v) allows for annual aggregate payments of dividends and repurchases of SMI securities of up to
$50,000,000,
increasing up to
$75,000,000
subject to maintaining certain financial covenants; and (vi) limits annual capital expenditures to
$75,000,000
and provides for motor speedway acquisitions and related businesses. Term Loans require equal minimum quarterly principal payments of at least
5%
of initial amounts drawn on an annualized basis (
$7,500,000
for fiscal
2017
).
 
Interest is based, at the Company
’s option, upon the Eurodollar Rate plus
1.25%
to
2.00%
or a base rate defined as the higher of Bank of America’s prime rate, the Federal Funds Rate plus
0.5%
or the Eurodollar Rate plus
1%,
plus
0.25%
to
1.00%.
The Credit Facility also contains a commitment fee ranging from
0.25%
to
0.40%
of unused amounts available for borrowing. The interest rate margins on borrowings and the commitment fee are adjustable periodically based upon certain consolidated total leverage ratios. The Credit Facility contains a number of affirmative and negative financial covenants, including requirements that we maintain certain consolidated total leverage ratios and consolidated interest coverage ratios.
 
We repaid Term Loan
borrowings of
$23
,000,000
and
$26
,000,000
during the
three
and
six
months ended
June 30, 2017,
and
$30,000,000
and
$32,000,000
during the
three
and
six
months ended
June 30, 2016.
T
here were
no
borrowings under the Credit Facility during those periods. At
June 30, 2017
and
December 31, 2016,
outstanding borrowings under the Credit Facility were
$40,000,000
and
$66,000,000
(all Term Loan borrowings), and outstanding letters of credit amounted to
$605,000
at both dates. As of
June 30, 2017,
we had availability for borrowing up to an additional
$99,395,000,
including up to an additional
$49,395,000
in letters of credit, under the revolving Credit Facility.
 
2023
Senior Notes
– We completed a private placement of
5.125%
Senior Notes due
2023
in aggregate principal amount of
$200.0
million in
January 2015 (
the
2023
Senior Notes), and an exchange offer for substantially identical
2023
Senior Notes registered under the Securities Act in the
second
quarter
2015.
The
2023
Senior Notes were issued at par, and net proceeds were used to redeem a portion of our former
2019
Senior Notes as further described in Note
6
to the Consolidated Financial Statements in our
2016
Annual Report. The
2023
Senior Notes mature in
February 2023
and interest payments are due semi-annually on
February 
1
and
August 
1.
 
Other Notes Payable
– At
June 30, 2017
and
December 31, 2016,
long-term debt includes a
3%
interest bearing debt obligation of
$1,049,000
and
$1,206,000
associated with the purchase of real property at BMS, payable in
eight
annual installments of
$194,000
beginning
January 2016.
 
Deferred Financing Costs
– Deferred financing costs associated with our revolving Credit Facility are reported in other noncurrent assets, and those associated with the
2023
Senior Notes and bank Term Loan are reflected as a reduction of long-term debt. As of
June 30, 2017
and
December 31, 2016,
long-term debt reflects deferred financing costs, net of accumulated amortization, of
$4,543,000
and
$5,151,000.
 
 
Other General Terms and Conditions
– The Credit Facility and
2023
Senior Notes contain specific requirements and restrictive financial covenants and limits or prohibits various financial and transactional activities, and also contain cross-default and change of control provisions. We were in compliance with all applicable covenants under these debt agreements as of
June 30, 2017.
See Note
6
to the Consolidated Financial Statements included in our
2016
Annual Report for additional information on these debt agreements, including dividend, redemption, and right of payment provisions, pledged security and financial and restrictive covenants.
 
Subsidiary Guarantees
Amounts outstanding under the Credit Facility and
2023
Senior Notes are guaranteed by all of SMI’s material operative subsidiaries except for Oil-Chem and its subsidiaries (which are presently minor). These guarantees are full and unconditional and joint and several with the
2023
Senior Notes on a senior unsecured basis. The parent company has
no
independent assets or operations. There are
no
restrictions on the subsidiaries’ ability to pay dividends or advance funds to the parent company.
 
Interest Expense, Net
Interest expense, interest income and capitalized interest costs are summarized as follows (in thousands):
 
   
Three Mont
hs Ended
June 30:
   
Six Months Ended
June 30:
 
   
201
7
   
201
6
   
201
7
   
201
6
 
Gross interest costs
  $
3,336
    $
3,543
    $
6,644
    $
7,107
 
Less: capitalized interest costs
   
(98
)
   
(196
)
   
(153
)
   
(378
)
Interest expense
   
3,238
     
3,347
     
6,491
     
6,729
 
Interest income
   
(75
)
   
(56
)
   
(323
)
   
(99
)
Interest expense, net
  $
3,163
    $
3,291
    $
6,168
    $
6,630
 
Weighted-average interest rate on Credit Facility borrowings
   
2.3
%
   
1.9
%
   
2.2
%
   
1.9
%
Note 6 - Per Share and Other Equity Information
Stockholders Equity and Earnings Per Share [Text Block]
6.
PER SHARE AND OTHER EQUITY INFORMATION
 
The
following schedule reconciles basic and diluted income per share (where computations are anti-dilutive, reported basic and diluted per share amounts are the same) (in thousands except per share amounts):
 
   
Three Months Ended
June 30:
   
Six Months
Ended
June 30:
 
   
2017
   
2016
   
2017
   
2016
 
N
et income applicable to common stockholders and assumed conversions
  $
27,306
    $
24,747
    $
25,371
    $
25,608
 
                                 
Weighted average common shares outstanding
   
41,045
     
41,184
     
41,066
     
41,206
 
Dilution effect of assumed
conversions:
                               
Common stock equivalents
—stock awards
   
11
     
11
     
16
     
14
 
Weighted average common shares outstanding and assumed conversions
   
41,056
     
41,195
     
41,082
     
41,220
 
                                 
Basic earnings per share
  $
0.67
    $
0.60
    $
0.62
    $
0.62
 
Diluted earnings per share
  $
0.67
    $
0.60
    $
0.62
    $
0.62
 
Anti-dilutive common stock equivalents excluded in computing diluted earnings per share
   
12
     
157
     
11
     
145
 
 
Stock Repurchase Program
– Our Board of Directors has approved a stock repurchase program authorizing SMI to repurchase up to an aggregate of
5,000,000
shares of our outstanding common stock from time to time, depending on market conditions, share price, applicable limitations under our debt agreements (see Note
5
), and other factors the Board of Directors or its designees, in their sole discretion,
may
consider relevant. The purchases can be in the open market or private transactions. The stock repurchase program is presently funded using available cash and cash equivalents and
may
be suspended or discontinued at any time.
 
During the
three
and
six
months ended
June 30, 2017,
we repurchased
6
3,000
and
125,000
shares of common stock for
$1,137,000
and
$2,438
,000.
As of
June 30, 2017,
we could repurchase up to an additional
317,000
shares under the current authorization. During the
six
months ended
June 30, 2017,
we repurchased approximately
31,000
shares of common stock for
$607,000
from management employees to settle income taxes on
65,000
restricted shares that vested during the period. As of and through
June 30, 2017,
treasury stock includes
304,000
shares of common stock delivered to the Company for such purposes.
 
Declaration of Cash Dividends
To date in
2017,
our Board of Directors has approved the following quarterly cash dividends on common stock, which are being paid using available cash and cash equivalents on hand (in thousands except per share amounts):
 
Declaration date
 
February 1
5, 2017
   
April 19, 201
7
   
July 19, 201
7
 
Record date
 
March 1, 201
7
   
May 1
5, 2017
   
August 15, 201
7
 
Paid or payable to shareholders
 
March 1
7, 2017
   
June
5, 2017
   
September 5, 201
7
 
Aggregate quarterly cash dividend
  $
6,241
    $
6,157
   
Approximately $6,200
 
Dividend per common share
  $
0.15
    $
0.15
    $
0.15
 
Note 9 - Stock Compensation Plans
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
9.
STOCK COMPENSATION PLANS
 
 
 
See Note
11
to the Consolidated Financial Statements in our
2016
Annual Report for additional information and terms of the Company
’s stock compensation plans.
 
2013
Stock Incentive Plan, Amended and Restated as of
April 19, 2017
– In
February 2017,
our Board of Directors adopted an amended and restated
2013
Stock Incentive Plan which was approved by the stockholders on
April 19, 2017
at the
2017
Annual Meeting. The amendment and restatement does
not
increase the number of shares reserved for issuance or any of the award limits under the
2013
Stock Incentive Plan. The primary changes include: (a) additions to the permissible criteria upon which performance goals for performance-based compensation can be based; and (b) revisions and additions to the types of items and events that
may
be used for adjustments in determining whether an objective performance goal for performance-based compensation has been met. 
 
The Compensation Committee of the Company
’s Board of Directors approved grants of
35,000
restricted stock units to the Company’s Chief Executive Officer and President and
35,000
shares of restricted stock to the Company’s Vice Chairman and Chief Financial Officer in each of the
six
months ended
June 30, 2017
and
2016.
These grants are to be settled in shares of common stock, vest in equal installments over
three
years and are subject to reaching certain defined full year earnings targets established at the beginning of each year by the Compensation Committee. Forfeitures in any given year result from differences between the Company’s actual results for the previous year as compared to the defined full year earnings target.
 
The following is a summary of restricted stock and restricted stock units granted, vested and forfeited under the Incentive Compensation Plan for the indicated periods (shares in thousands):
 
   
Six Months Ended June 30:
 
   
2017
   
2016
 
   
Restricted
Stock
   
Restricted
Stock
Units
   
Restricted
Stock
   
Restricted
Stock
Units
 
Outstanding, beginning of period
   
68
     
129
     
67
     
132
 
Granted
   
35
     
35
     
35
     
35
 
Vested
   
(32
)
   
(32
)
   
(32
)
   
(32
)
Forfeited
   
(5
)
   
(5
)
   
(2
)
   
(6
)
Outstanding, end of period
   
66
     
127
     
68
     
129
 
 
In each of the
six
months ended
June 30, 2017
and
2016,
the Company repurchased
31,000
shares of common stock for
$597,000
and
$588,000,
respectively, from executive management employees to settle income taxes on
64,000
shares that vested during each period.
The Company also repurchased approximately
500
shares of common stock from a non-executive management employee in each of the
six
months ended
June 30, 2017
and
2016
for
$9,000
to settle income taxes on
1,500
shares that vested during each period.
 
2008
Formula Restricted Stock Plan, Amended and Restated as of
April 17, 2012
– The Company awarded
3,893
shares of restricted stock to each of the Company’s
four
non-employee directors in
April 2017.
An aggregate of
15,976
shares granted to non-employee directors in
April 2016
vested in
April 2017,
and
12,816
shares granted in
April 2015
vested in
April 2016.
All restricted stock awards were granted and vested in accordance with plan provisions.
 
Share-Based Payments
– There were
no
significant changes in the characteristics of restricted stock or restricted stock units granted in
2017
or
2016
as compared to prior grants and
no
modifications of the terms of any share-based payment arrangements. There were
no
significant changes in estimates, assumptions or valuation methods used to estimate the fair value of share-based payment awards.
No
stock options were granted or exercised under any of the Company’s stock compensation plans during the
six
months ended
June 30, 2017
or
2016.
 
Share-based compensation cost for the
three
months ended
June 30, 2017
and
2016
totaled
$856,000
and
$841,000,
before income taxes of $
306,000
and
$312,000,
and for the
six
months ended
June 30, 2017
and
2016
totaled
$1,665,000
and
$1,708,000,
before income taxes of
$568,000
and
$634,000,
respectively, and is included in general and administrative expense. There were
no
capitalized share-based compensation costs at
June 30, 2017
or
December 31, 2016.
As of
June 30, 2017,
there was approximately
$4,008,000
of total unrecognized compensation cost related to non-vested restricted stock and restricted stock units granted under the Company's stock compensation plans that is expected to be recognized over a weighted average period of
1.0
year. As of
June 30, 2017,
all stock options were vested and there was
no
unrecognized compensation cost related to stock options granted under any of the Company’s stock compensation plans.
Note 10 - Segment Disclosures
Segment Reporting Disclosure [Text Block]
10.
SEGMENT DISCLOSURES
 
Our operations
are predominately comprised of promoting, marketing and sponsoring motorsports racing events, merchandising and other related activities conducted at our various major speedway facilities located in the United States. Our business activities, including those of our subsidiaries, are further described in Notes 
1
and
2
to the Consolidated Financial Statements in our
2016
Annual Report. Our “motorsports event related” segment consists of revenues and expenses associated with all admissions, event related, NASCAR broadcasting and event motorsports merchandising activities. The segment includes motorsports related events and operations for all Company speedways, NASCAR broadcasting and ancillary media rights, PRN and RCU motorsports radio programming, and SMI Properties and SMI Trackside motorsports merchandising at Company and non-Company speedways. These operating segments have been aggregated into the motorsports related reportable segment as each share similar types and classes of customers, similar methods for providing or distributing motorsports related services, souvenirs and other merchandise, and other similar economic characteristics. Our “all other” operations consist of SMIP subsidiary non-event motorsports and non-motorsports merchandising, Legend Cars non-event merchandising and sanctioning body activities, Oil-Chem micro-lubricant activities, TMS natural gas mineral rights lease and related revenues, and office rentals at certain Company speedways.  
 
Segment information as presented below comports with information our chief operating decision maker and management use and focus on when assessing segment performance and allocating resources. Segment operating income or loss excludes interest, income taxes, other income or expense and specified non-recurring items, if any, and corporate general and administrative and depreciation costs are allocated to operating segments based on their respective revenues relative to consolidated revenues. The following tables present our segment information (in thousands):
 
   
Three Months Ended June 30:
 
   
2017
   
2016
 
   
Motorsports
Event
Related
   
 
All
Other
   
 
Consolidated
   
Motorsports
Event
Related
   
All
Other
   
 
Consolidated
 
Revenues
  $
174,144
    $
5,109
    $
179,253
    $
170,694
    $
4,994
    $
175,688
 
Depreciation and amortization
   
13,434
     
35
     
13,469
     
13,529
     
41
     
13,570
 
Impairment of goodwill (Note 4)
   
1,117
     
     
1,117
     
     
     
 
Segment operating income
   
43,953
     
1,358
     
45,311
     
41,396
     
1,247
     
42,643
 
 
   
Six Months Ended June 30:
 
   
2017
   
2016
 
   
Motorsports
Event
Related
   
 
All
Other
   
 
Consolidated
   
Motorsports
Event
Related
   
All
Other
   
 
Consolidated
 
Revenues
  $
249,242
    $
10,336
    $
259,578
    $
247,970
    $
10,894
    $
258,864
 
Depreciation and amortization
   
30,901
     
73
     
30,974
     
26,857
     
84
     
26,941
 
Impairment of goodwill (Note 4)
   
1,117
     
     
1,117
     
     
     
 
Segment operating income
   
42,428
     
2,460
     
44,888
     
44,777
     
2,650
     
47,427
 
Capital expenditures
   
15,045
     
21
     
15,066
     
28,107
     
50
     
28,157
 
 
   
June 30, 2017
   
December 31, 2016
 
Other intangibles
  $
298,383
     
    $
298,383
    $
298,383
     
    $
298,383
 
Goodwill
   
46,225
     
     
46,225
     
47,342
     
     
47,342
 
Total assets
   
1,475,083
    $
24,045
     
1,499,128
     
1,474,127
    $
24,022
     
1,498,149
 
 
The following table reconciles segment operating income above to consolidated income before income taxes for the periods indicated (in thousands):
 
   
Three Months Ended
June 30:
   
Six Months Ended
June 30:
 
   
2017
   
2016
   
2017
   
2016
 
Total se
gment operating income
  $
45,311
    $
42,643
    $
44,888
    $
47,427
 
Adjusted for:
                               
Interest expense, net
   
(3,163
)
   
(3,291
)
   
(6,168
)
   
(6,630
)
Other income (expense), net
   
376
     
13
     
(202
)
   
(55
)
Consolidated income before income taxes
  $
42,524
    $
39,365
    $
38,518
    $
40,742
 
Significant Accounting Policies (Policies)
Quarterly Reporting
and Certain Schedule Changes
– We recognize revenues and operating expenses for all events in the calendar quarter in which conducted. Changes in race schedules at our speedways from time to time, including speedway acquisitions, can lessen the comparability of operating results between quarterly financial statements of successive years and increase or decrease the seasonal nature of our motorsports business. The more significant racing schedule changes for the
three
and
six
months ended
June 30, 2017
as compared to
2016
include:
 
 
Poor weather resulted in postponing and next-day rescheduling
one
Monster Energy NASCAR Cup race, and delaying the completion of
one
NASCAR Xfinity race, at BMS in the
second
quarter
2017
Poor weather resulted in delaying the completion of
one
Monster Energy NASCAR Cup race at CMS in the
second
quarter
2017
TMS held
one
IndyCar race in the
second
quarter
2017;
poor weather at TMS resulted in rescheduling an IndyCar race from the
second
q
uarter
2016
to the
third
quarter
2016
as further discussed below
 
 
Poor weather resulted in postponing and rescheduling 
an IndyCar race at TMS from the
second
quarter
2016
to the
third
quarter
2016.
The Company offered to honor unused tickets through exchange for race tickets to TMS’s Monster Energy NASCAR Cup race in
April 2017
or IndyCar race in
June 2017.
The exchange offer expired in
June 2017,
and cash refunds were
not
offered. Tickets exchanged for race events held in
2017
were
not
significant.
As of
December 31, 2016,
we had deferred race event income of
$524,000
for unredeemed tickets associated with TMS’s
2016
IndyCar race, all of which was recognized in the
second
quarter
2017.
Consolidated Statements of Cash Flows
– 
Before
December 31, 2016,
cash we collected and temporarily held on behalf of our
third
-party food and beverage concessionaire, and
not
remitted until after period end, was presented separately from cash flows from operating activities. We now include such amounts in cash flows from operating activities for both periods, increasing cash flow from operations, and the change in accounts payable, by
$204,000
for the
six
months ended
June 30, 2016.
There was
no
impact on the Consolidated Balance Sheets or Statements of Operations.
Income Taxes
– We provide for income taxes at the end of each interim period based on management’s best estimate of the annual estimated effective income tax rate. Cumulative adjustments to our annual estimated effective income tax rate are recorded in the interim period in which a change in the annual estimated effective income tax rate is determined. Cash paid for income taxes excludes any previous overpayments the Company
may
have elected to apply to income tax liabilities. The Company has
no
undistributed foreign earnings or cash or cash equivalents held outside of the US. See Notes
2
and
8
to the Consolidated Financial Statements in our
2016
Annual Report for additional information on our accounting for income taxes.
 
Our effective income tax rate for the
three
months ended
June 30, 2017
and
2016
was
35.8%
and
37.1%,
and for the
six
months ended
June 30, 2017
and
2016
was
34.1%
and
37.1%,
respectively.
The tax rates for the
three
and
six
months ended
June 30, 2017
reflect reduced net deferred income tax liabilities of
$481,000
and
$1,791,000
for anticipated lower state income tax rates associated with race date realignments, and other lower effective state income tax rates. The tax rate for the
six
months ended
June 30, 2017
was partially offset by reduced deferred tax assets associated with certain state net operating loss carryforwards of
$515,000.
We paid cash of
$725,000
and
$650,000
for income taxes in the
six
months ended
June 30, 2017
and
2016.
 
Accounting for Uncertainty in Income Taxes
– Income tax liabilities for unrecognized tax benefits approximate
$12,006,000
at
June 30, 2017
and
December 31, 2016,
$11,746,000
of which relates to our discontinued operation (see Note
1
to the Consolidated Financial Statements in our
2016
Annual Report). Of those amounts,
$11,794,000
is included in noncurrent other liabilities, all of which would favorably impact our effective tax rate if recognized
,
and
$212,000
is included in deferred tax liabilities, at both
June 30, 2017
and
December 31, 2016.
As of
June 30, 2017
and
December 31, 2016,
management believes
$260,000
of unrecognized tax benefits will be recognized within the next
twelve
months. Interest and penalties associated with unrecognized tax benefits were insignificant for the
three
and
six
months ended
June 30, 2017
and
2016.
As of
June 30, 2017
and
December 31, 2016,
we had
$159,000
and
$140,000
accrued for the payment of interest and penalties on uncertain tax positions, which is included in other noncurrent liabilities. The tax years that remain open to examination include
2006
through
2008,
and
2012
through
2016,
by the California Franchise Tax Board,
2013
through
2016
by the Internal Revenue Service, and
2012
 through
2016
by other state taxing jurisdictions to which we are subject.
 
Income Tax Benefits
– Applicable accounting guidance
may
require establishing valuation allowances for certain deferred tax assets or income tax liabilities for unrecognized tax benefits, notwithstanding management believes associated tax filing positions are sustainable and are or will be reflected in its tax filings. At
June 30, 2017,
liabilities for unrecognized tax benefits totaled
$12.0
million. Should those tax positions
not
be fully sustained if examined, an acceleration of material income taxes payable could occur. Where
no
net income tax benefit had been previously reflected because of providing a valuation allowance on related deferred tax assets, our future results of operations might
not
be significantly impacted. However, resulting cash required for payments of income taxes could be material in the period in which such determination is made.
Taxes Collected from Customers
– We report sales, admission and other taxes collected from customers on both a gross and net basis in operations. Such taxes reported on a gross basis for the
three
months ended
June 30, 2017
and
2016
were
$2,318,000
and
$2,451,000,
and for the
six
months ended
June 30, 2017
and
2016
were
$2,729,000
and
$2,817,000.
Advertising Expenses
– Event specific advertising costs are expensed when an associated event is held and included principally in direct expense of events. Non-event related advertising costs are expensed as incurred and included principally in other direct operating expense. Advertising expense amounted to
$5,419,000
and
$5,655,000
for the
three
months ended
June 30, 2017
and
2016,
and
$7,023,000
and
$7,582,000
for the
six
months ended
June 30, 2017
and
2016.
There were
no
deferred direct-response advertising costs at
June 30, 2017
or
December 31, 2016.
TMS Mineral Rights Lease Receipts
– We recognized royalty revenue of
$530,000
and
$424,000
in the
three
months ended
June 30, 2017
and
2016,
and
$978,000
and
$1,051,000
in the
six
months ended
June 30, 2017
and
2016
under a natural gas mineral rights lease agreement and a joint exploration agreement entitling TMS to stipulated stand-alone and shared royalties, as further described in Note
2
to the Consolidated Financial Statements in our
2016
Annual Report. 
Such revenues can vary from associated volatility in natural gas price levels and common diminishing well production. 
The agreements stipulate that TMS distribute
25%
of production royalty revenues to the lessee, and obligate TMS to spend amounts equal to royalties received on TMS facility and road infrastructure improvements beginning in
2017,
up to specified cumulative amounts. However, at this time, management believes
2017
revenues will
not
differ significantly from
2016,
and that our infrastructure spending will continue to exceed anticipated future royalties. As of
June 30, 2017
and
December 31, 2016,
there was
no
deferred income associated with these agreements.
Fair Value of Financial Instruments
– We follow applicable authoritative guidance which requires that financial and non-financial assets and liabilities measured and reported on a fair value basis be classified, disclosed and categorized as further described below. Fair value estimates are based on relevant market information and single broker quoted market prices where available at a specific point in time, and changes in assumptions or market conditions could significantly affect estimates. The carrying values of cash and cash equivalents, accounts receivable, certain other assets and accounts payable approximate fair value because of the short maturity of these financial instruments. Cash surrender values are carried at fair value based on binding broker quoted market prices. Notes receivable and bank revolving credit facility and term loan borrowings are variable interest rate financial instruments and, therefore, carrying values approximate fair value. The fixed rate senior notes payable are publicly traded and estimated fair values are based on single broker quoted market prices. Other long-term debt bears interest approximating market rates or where non-interest bearing is discounted based on estimated current cost of borrowings; therefore, carrying values approximate market value. There have been
no
changes or transfers between category levels or classes. The following table presents estimated fair values and categorization levels of our financial instruments as of
June 30, 2017
and
December 31, 2016 (
in thousands):
 
             
2017
   
2016
 
   
Level
 
Class
 
Carrying
Value
   
Fair Value
   
Carrying
Value
   
Fair Value
 
                                           
Assets
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
   
1
 
R
  $
87,653
    $
87,653
    $
79,342
    $
79,342
 
Notes receivable
   
2
 
NR
   
1,060
     
1,060
     
1,143
     
1,143
 
Cash surrender values
   
2
 
NR
   
9,360
     
9,360
     
8,919
     
8,919
 
                                           
Liabilities
(principal)
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Floating rate revolving Credit Facility, including Term Loan
   
2
 
NR
   
40,000
     
40,000
     
66,000
     
66,000
 
5.125% Senior Notes Payable due 2023
   
2
 
NR
   
200,000
     
205,000
     
200,000
     
202,500
 
Other long-term debt
   
2
 
NR
   
1,049
     
1,049
     
1,206
     
1,206
 
 
Level
1:
Quoted market prices in active markets for identical assets or liabilities.
Level
2:
Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level
3:
Unobservable inputs that are
not
corroborated by market data.
Class
R:
Measured at fair value on recurring basis, subsequent to initial recognition.
Class
 NR:
Measured at fair value on nonrecurring basis, subsequent to initial recognition.
Property and Equipment
– From time to time, we
may
decide to repurpose various seating, suites and other areas at our speedways for modernizing our facilities, alternative marketing or development purposes such as offering expanded premium hospitality, RV camping and advertising areas, or wider seating and improved sight lines. When management decides on repurpose and removal, depreciation is accelerated and recorded prospectively over shortened estimated remaining useful lives of the assets, and accounted for as a change in estimate, beginning when management contracts and begins removal. In the
first
quarter
2017,
we contracted and began removing approximately
7,000
seats at CMS,
17,000
seats at KyS and
12,000
seats at NHMS, which was substantially completed in the
first
half of
2017.
As such, we recorded pre-tax charges for accelerated depreciation and costs of removal (included in other expense, net) aggregating approximately 
$4,597,000,
before income tax benefits of
$1,700,000,
in the
first
quarter
2017.
These charges are included in our "motorsports event related" reporting segment (see Note
10
).
Recently Issued Accounting Standards
– The Financial Accounting Standards Board (FASB) issued Accounting Standards Update
No.
 
2014
-
09
"Revenue from Contracts with Customers (Topic
606
): Section A - Summary and Amendments That Create Revenue from Contracts with Customers and Other Assets and Deferred Costs - Contracts with Customers (Subtopic
340
-
40
)" which enhances comparability and clarifies principles of revenue recognition arising from contracts with customers that supersedes most current revenue recognition guidance. The guidance includes the core principle that entities recognize revenue to depict transfers of promised goods or services to customers in amounts that reflect the consideration entities expect to be entitled in exchange for those goods or services, and expands required financial statement disclosures regarding revenue recognition. The FASB has recently issued several amendments to the new standard, including Update
No.
2016
-
08
"Revenue from Contracts with Customers (Topic
606
) - Principal versus Agent Considerations" clarifying implementation guidance for those considerations in Update
No.
2014
-
09,
and Update
No.
2016
-
10
"Revenue from Contracts with Customers (Topic 
606
) - Identifying Performance Obligations and Licensing" amending the guidance in Update
No.
2014
-
09
related to those items. The FASB issued Update
No.
2015
-
14
approving deferral of Update
No.
2014
-
09
for
one
year, with such guidance now effective for annual reporting periods beginning after
December 15, 2017,
including interim periods within that reporting period. Early application is permitted as of annual reporting periods beginning after
December 15, 2016,
including interim reporting periods within that reporting period. The guidance
may
be applied retrospectively to each prior period presented or retrospectively with cumulative effects recognized as of the date of adoption. 
The Company
continues preliminary evaluation of the potential impact that adoption
may
have on its financial statements, including associated accounting policies, processes, and system requirements to enable timely and accurate reporting. The Company plans to adopt this new guidance in the
first
quarter
2018
using the modified retrospective method of adoption
 
The FASB issued Accounting Standards Update
No.
2015
-
11
"Inventory (Topic
330
): Simplifying the Measurement of Inventory” which requires measuring inventory at the lower of cost and net realizable value based on estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation (changed from the previous guidance of lower of cost or market). This update also clarified various other inventory measurement and disclosure requirements. The update does
not
apply to inventory measured using the LIFO or retail inventory methods. The guidance is effective for annual reporting periods beginning after
December 15, 2016,
including interim periods within that reporting period, and applied prospectively. The Company’s adoption of this guidance as of
January 1, 2017
had
no
significant impact on its financial statements or disclosures.
 
The FASB issued Accounting Standards Update
No.
2016
-
02
“Leases (Subtopic
842
)” which replaces all current US GAAP guidance on this topic, and requires lessees to recognize assets and liabilities arising from leases as well as extensive quantitative and qualitative disclosures. Lessees will need to recognize on their balance sheets right-of-use assets and lease liabilities for the majority of their leases (other than leases meeting the definition of a short-term lease). Right-of-use assets will be measured at lease liability amounts, adjusted for lease prepayments, lease incentives received and lessee
’s initial direct costs. Lease liabilities will equal the present value of lease payments. Assets will be based on the liability, subject to adjustment, such as for initial direct costs. Operating leases
may
typically result in straight-line expense, while finance leases similar to front-loaded expense pattern. Classification will be based on criteria largely similar to those applied in current lease accounting. The guidance is effective for fiscal years beginning after
December 15, 2018,
and interim periods within those fiscal years. Early adoption is permitted. The guidance is required to be applied using the modified retrospective approach for all leases existing as of the effective date, requires application at the beginning of the earliest comparative period presented, and provides for certain practical expedients. The Company is currently evaluating the potential impact that adoption
may
have on its financial statements.
 
The FASB issued Accounting Standards Update
No.
2016
-
15
“Statement of Cash Flows (Topic
23
) - Classification of Certain Cash Receipts and Cash Payments” which provides specific guidance on
eight
cash flow classification issues. The guidance is effective for fiscal years beginning
 after
December 15, 2017,
and interim periods within those fiscal years, and should be applied using a retrospective transition method to each period presented. Early adoption is permitted, and any amendments must be adopted in the same period. At this time, the Company believes adoption will have
no
significant impact on its financial statements, and plans to apply this guidance to future classifications when applicable.
 
The FASB issued Accounting Standards Update
No.
2017
-
04
“Intangibles
– Goodwill and Other (Topic
350
): Simplifying the Test of Goodwill Impairment” which simplifies how an entity is required to test goodwill for impairment by eliminating Step
2
(measuring goodwill impairment loss by comparing implied fair value of a reporting unit’s goodwill to the carrying amount of that goodwill) from the impairment test. Under this update, entities should perform goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount, and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The same impairment assessment applies to all reporting units, and entities still have the option to perform qualitative assessment for a reporting unit to determine if quantitative impairment testing is necessary. This update modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. Entities will
no
longer determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. The Company is required to adopt this guidance for its annual or any interim goodwill impairment tests in fiscal years beginning after
December 15, 2019,
and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after
January 1, 2017.
The Company early adopted this guidance for its annual impairment testing performed in the
second
quarter
2017
(see Note
4
).
Note 2 - Significant Accounting Policies and Other Disclosures (Tables)
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]
             
2017
   
2016
 
   
Level
 
Class
 
Carrying
Value
   
Fair Value
   
Carrying
Value
   
Fair Value
 
                                           
Assets
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
   
1
 
R
  $
87,653
    $
87,653
    $
79,342
    $
79,342
 
Notes receivable
   
2
 
NR
   
1,060
     
1,060
     
1,143
     
1,143
 
Cash surrender values
   
2
 
NR
   
9,360
     
9,360
     
8,919
     
8,919
 
                                           
Liabilities
(principal)
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Floating rate revolving Credit Facility, including Term Loan
   
2
 
NR
   
40,000
     
40,000
     
66,000
     
66,000
 
5.125% Senior Notes Payable due 2023
   
2
 
NR
   
200,000
     
205,000
     
200,000
     
202,500
 
Other long-term debt
   
2
 
NR
   
1,049
     
1,049
     
1,206
     
1,206
 
Note 3 - Inventories (Tables)
Schedule of Inventory, Current [Table Text Block]
   
June 30,
   
December 31,
 
   
2017
   
2016
 
Finished race cars, parts and accessories
  $
5,021
    $
5,263
 
Souvenirs and apparel
   
2,252
     
2,131
 
Micro-lubricant
®
and other
   
736
     
818
 
Total
  $
8,009
    $
8,212
 
Note 4 - Goodwill and Other Intangible Assets (Tables)
Schedule of Intangible Assets and Goodwill [Table Text Block]
   
Other Intangible Assets
   
Goodwill
 
   
201
7
   
2016
   
2017
   
201
6
 
Balance, beginning of year
  $
298,383
    $
298,394
    $
47,342
    $
47,342
 
Increase from acquisitions
   
     
     
     
 
Decrease from impairment charges 
   
     
     
(1,117
)
   
 
Balance, end of
period
  $
298,383
    $
298,394
    $
46,225
    $
47,342
 
Note 5 - Long-term Debt (Tables)
Interest Income and Interest Expense Disclosure [Table Text Block]
   
Three Mont
hs Ended
June 30:
   
Six Months Ended
June 30:
 
   
201
7
   
201
6
   
201
7
   
201
6
 
Gross interest costs
  $
3,336
    $
3,543
    $
6,644
    $
7,107
 
Less: capitalized interest costs
   
(98
)
   
(196
)
   
(153
)
   
(378
)
Interest expense
   
3,238
     
3,347
     
6,491
     
6,729
 
Interest income
   
(75
)
   
(56
)
   
(323
)
   
(99
)
Interest expense, net
  $
3,163
    $
3,291
    $
6,168
    $
6,630
 
Weighted-average interest rate on Credit Facility borrowings
   
2.3
%
   
1.9
%
   
2.2
%
   
1.9
%
Note 6 - Per Share and Other Equity Information (Tables)
   
Three Months Ended
June 30:
   
Six Months
Ended
June 30:
 
   
2017
   
2016
   
2017
   
2016
 
N
et income applicable to common stockholders and assumed conversions
  $
27,306
    $
24,747
    $
25,371
    $
25,608
 
                                 
Weighted average common shares outstanding
   
41,045
     
41,184
     
41,066
     
41,206
 
Dilution effect of assumed
conversions:
                               
Common stock equivalents
—stock awards
   
11
     
11
     
16
     
14
 
Weighted average common shares outstanding and assumed conversions
   
41,056
     
41,195
     
41,082
     
41,220
 
                                 
Basic earnings per share
  $
0.67
    $
0.60
    $
0.62
    $
0.62
 
Diluted earnings per share
  $
0.67
    $
0.60
    $
0.62
    $
0.62
 
Anti-dilutive common stock equivalents excluded in computing diluted earnings per share
   
12
     
157
     
11
     
145
 
Declaration date
 
February 1
5, 2017
   
April 19, 201
7
   
July 19, 201
7
 
Record date
 
March 1, 201
7
   
May 1
5, 2017
   
August 15, 201
7
 
Paid or payable to shareholders
 
March 1
7, 2017
   
June
5, 2017
   
September 5, 201
7
 
Aggregate quarterly cash dividend
  $
6,241
    $
6,157
   
Approximately $6,200
 
Dividend per common share
  $
0.15
    $
0.15
    $
0.15
 
Note 9 - Stock Compensation Plans (Tables)
Share-based Compensation, Stock Options, Activity [Table Text Block]
   
Six Months Ended June 30:
 
   
2017
   
2016
 
   
Restricted
Stock
   
Restricted
Stock
Units
   
Restricted
Stock
   
Restricted
Stock
Units
 
Outstanding, beginning of period
   
68
     
129
     
67
     
132
 
Granted
   
35
     
35
     
35
     
35
 
Vested
   
(32
)
   
(32
)
   
(32
)
   
(32
)
Forfeited
   
(5
)
   
(5
)
   
(2
)
   
(6
)
Outstanding, end of period
   
66
     
127
     
68
     
129
 
Note 10 - Segment Disclosures (Tables)
   
Three Months Ended June 30:
 
   
2017
   
2016
 
   
Motorsports
Event
Related
   
 
All
Other
   
 
Consolidated
   
Motorsports
Event
Related
   
All
Other
   
 
Consolidated
 
Revenues
  $
174,144
    $
5,109
    $
179,253
    $
170,694
    $
4,994
    $
175,688
 
Depreciation and amortization
   
13,434
     
35
     
13,469
     
13,529
     
41
     
13,570
 
Impairment of goodwill (Note 4)
   
1,117
     
     
1,117
     
     
     
 
Segment operating income
   
43,953
     
1,358
     
45,311
     
41,396
     
1,247
     
42,643
 
   
Six Months Ended June 30:
 
   
2017
   
2016
 
   
Motorsports
Event
Related
   
 
All
Other
   
 
Consolidated
   
Motorsports
Event
Related
   
All
Other
   
 
Consolidated
 
Revenues
  $
249,242
    $
10,336
    $
259,578
    $
247,970
    $
10,894
    $
258,864
 
Depreciation and amortization
   
30,901
     
73
     
30,974
     
26,857
     
84
     
26,941
 
Impairment of goodwill (Note 4)
   
1,117
     
     
1,117
     
     
     
 
Segment operating income
   
42,428
     
2,460
     
44,888
     
44,777
     
2,650
     
47,427
 
Capital expenditures
   
15,045
     
21
     
15,066
     
28,107
     
50
     
28,157
 
   
Three Months Ended
June 30:
   
Six Months Ended
June 30:
 
   
2017
   
2016
   
2017
   
2016
 
Total se
gment operating income
  $
45,311
    $
42,643
    $
44,888
    $
47,427
 
Adjusted for:
                               
Interest expense, net
   
(3,163
)
   
(3,291
)
   
(6,168
)
   
(6,630
)
Other income (expense), net
   
376
     
13
     
(202
)
   
(55
)
Consolidated income before income taxes
  $
42,524
    $
39,365
    $
38,518
    $
40,742
 
   
June 30, 2017
   
December 31, 2016
 
Other intangibles
  $
298,383
     
    $
298,383
    $
298,383
     
    $
298,383
 
Goodwill
   
46,225
     
     
46,225
     
47,342
     
     
47,342
 
Total assets
   
1,475,083
    $
24,045
     
1,499,128
     
1,474,127
    $
24,022
     
1,498,149
 
Note 1 - Description of Business (Details Textual)
6 Months Ended 12 Months Ended
Jun. 30, 2017
Dec. 31, 2016
NASCAR [Member]
Number of Racing Events
24
24
NASCAR [Member] |
Monster Energy Cup [Member]
Number of Racing Events
13
13
NASCAR [Member] |
Xfinity Series Events [Member]
Number of Racing Events
11
11
NASCAR [Member] |
Camping World Trucks Series Events [Member]
Number of Racing Events
8
8
NASCAR [Member] |
K and N Pro Series Events [Member]
Number of Racing Events
3
3
NASCAR [Member] |
Whelen Modified Tour [Member]
Number of Racing Events
4
4
Indy Car Series [Member]
Number of Racing Events
2
2
National Hot Rod Association [Member]
Number of Racing Events
6
6
Automobile Racing Club of America [Member]
Number of Racing Events
1
1
World of Outlaws [Member]
Number of Racing Events
3
3
Note 2 - Significant Accounting Policies and Other Disclosures (Details Textual)(USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Mar. 31, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2016
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit
$260,000
$260,000
$260,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued
159,000
159,000
140,000
Deferred Advertising Costs
0
0
0
Accelerated Depreciation and Removal Costs, Before Tax
4,597,000
Income Tax Expense (Benefit), Accelerated Depreciation and Removal Costs
(1,700,000)
Increase (Decrease) in Accounts Payable
2,473,000
4,161,000
Net Cash Provided by (Used in) Operating Activities
62,140,000
77,196,000
Effective Income Tax Rate Reconciliation, Percent
35.80%
37.10%
34.10%
37.10%
Increase (Decrease) in Deferred Income Tax Liabilities for Anticipated Change in State Income Tax Rates
(481,000)
(1,791,000)
Deferred Tax Assets, Operating Loss Carryforwards, State and Local
515,000
515,000
Income Taxes Paid
725,000
650,000
Unrecognized Tax Benefits
12,006,000
12,006,000
12,006,000
Excise and Sales Taxes
2,318,000
2,451,000
2,729,000
2,817,000
Advertising Expense
5,419,000
5,655,000
7,023,000
7,582,000
Other Noncurrent Liabilities [Member]
Unrecognized Tax Benefits
11,794,000
11,794,000
11,794,000
Deferred Tax Liabilities [Member]
Unrecognized Tax Benefits
212,000
212,000
212,000
Discontinued Operations [Member]
Unrecognized Tax Benefits
11,746,000
11,746,000
11,746,000
Restatement Adjustment [Member]
Increase (Decrease) in Accounts Payable
204,000
Net Cash Provided by (Used in) Operating Activities
204,000
Texas Motor Speedway Inc. [Member]
Royalty Revenue
530,000
424,000
978,000
1,051,000
Royalty Revenue, Distribution, Percentage
25.00%
Texas Motor Speedway Inc. [Member] |
Royalty Arrangement [Member]
Deferred Revenue
0
0
0
Texas Motor Speedway Inc. [Member] |
Indy Car Series [Member]
Deferred Revenue
$524,000
Charlotte Motor Speedway LLC [Member]
Number of Seats Removed
7,000
Kentucky Speedway [Member]
Number of Seats Removed
17,000
New Hampshire Motor Speedway, Inc. [Member]
Number of Seats Removed
12,000
Note 2 - Significant Accounting Policies and Other Disclosures - Estimated Fair Values and Categorization Levels of Financial Instruments (Details)(USD $)
In Thousands, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Jun. 30, 2016
Dec. 31, 2015
Cash and cash equivalents
$87,653
$79,342
$84,103
$82,010
Reported Value Measurement [Member] |
Fair Value, Inputs, Level 2 [Member]
Cash and cash equivalents
87,653
79,342
Notes receivable
1,060
1,143
Cash surrender values
9,360
8,919
Floating rate revolving Credit Facility, including Term Loan
40,000
66,000
5.125% Senior Notes Payable due 2023
200,000
200,000
Other long-term debt
1,049
1,206
Estimate of Fair Value Measurement [Member] |
Fair Value, Inputs, Level 2 [Member]
Cash and cash equivalents
87,653
79,342
Notes receivable
1,060
1,143
Cash surrender values
9,360
8,919
Floating rate revolving Credit Facility, including Term Loan
40,000
66,000
5.125% Senior Notes Payable due 2023
205,000
202,500
Other long-term debt
$1,049
$1,206
Note 2 - Significant Accounting Policies and Other Disclosures - Estimated Fair Values and Categorization Levels of Financial Instruments (Details) (Parentheticals)
Jun. 30, 2017
Dec. 31, 2016
Debt Instrument, Interest Rate, Stated Percentage
5.125%
5.125%
Note 3 - Inventories - Inventories Components (Details)(USD $)
In Thousands, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Inventories, net
$8,009
$8,212
Finished Vehicles Parts and Accessories [Member]
Inventories, net
5,021
5,263
Souvenirs and Apparel [Member]
Inventories, net
2,252
2,131
Micro Lubricant and Other [Member]
Inventories, net
$736
$818
Note 4 - Goodwill and Other Intangible Assets (Details Textual)(USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2016
Dec. 31, 2015
Other Intangible Assets, Impaired, Accumulated Impairment Loss
$99,900,000
$99,900,000
$99,900,000
Indefinite-Lived Intangible Assets (Excluding Goodwill)
298,383,000
298,394,000
298,383,000
298,394,000
298,383,000
298,394,000
Goodwill
46,225,000
47,342,000
46,225,000
47,342,000
47,342,000
47,342,000
Goodwill, Impairment Loss
1,117,000
  
1,117,000
  
Goodwill, Impaired, Accumulated Impairment Loss
149,700,000
149,700,000
148,600,000
Unrecognized [Member]
Goodwill, Impairment Loss
0
SMI Properties [Member]
Goodwill
0
0
Motorsports Event Segment [Member]
Goodwill, Impairment Loss, Tax Benefit
419,000
Goodwill
46,225,000
46,225,000
47,342,000
Goodwill, Impairment Loss
1,117,000
  
1,117,000
  
Nonamortizable Race Event Sanctioning and Renewal Agreements [Member]
Indefinite-Lived Intangible Assets (Excluding Goodwill)
298,383,000
298,383,000
298,383,000
NHMS and TMS [Member] |
Nonamortizable Race Event Sanctioning and Renewal Agreements [Member]
Indefinite-Lived Intangible Assets (Excluding Goodwill)
$199,600,000
$199,600,000
$98,800,000
Note 4 - Goodwill and Other Intangible Assets - Changes in Gross Carrying Value of Other Intangible Assets and Goodwill (Details)(USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Balance, beginning of year
$47,342