Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 22, 2021 | Jun. 30, 2020 | |
Entity Registrant Name | DOVER MOTORSPORTS INC | ||
Entity Central Index Key | 0001017673 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 23,263,564 | ||
Transition Report | false | ||
Common Stock [Member] | Common Stock | |||
Entity Common Stock, Shares Outstanding | 17,951,616 | ||
Common Stock [Member] | Common Class A [Member] | |||
Entity Common Stock, Shares Outstanding | 18,509,975 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Revenues | $ 38,543,000 | $ 45,963,000 | $ 47,016,000 |
Expenses: | |||
Operating and marketing | 25,221,000 | 29,241,000 | 29,277,000 |
General and administrative | 7,676,000 | 7,524,000 | 7,310,000 |
Depreciation | 3,046,000 | 4,353,000 | 3,285,000 |
Costs to remove long-lived assets | 341,000 | 1,170,000 | |
Total expenses | 36,284,000 | 42,288,000 | 39,872,000 |
Gain on sale of land | 4,843,000 | 4,325,000 | 2,413,000 |
Operating earnings | 7,102,000 | 8,000,000 | 9,557,000 |
Interest (expense) income, net | (35,000) | 22,000 | (62,000) |
Benefit (provision) for contingent obligation | 171,000 | (1,005,000) | (424,000) |
Other income (expense), net | 182,000 | 269,000 | (4,000) |
Earnings before income taxes | 7,420,000 | 7,286,000 | 9,067,000 |
Income tax benefit (expense) | 62,000 | (1,786,000) | (2,178,000) |
Net earnings | 7,482,000 | 5,500,000 | 6,889,000 |
Change in pension net actuarial loss and prior service cost, net of income taxes | (94,000) | (333,000) | 155,000 |
Comprehensive income | $ 7,388,000 | $ 5,167,000 | $ 7,044,000 |
Net earnings per common share (Note 2): | |||
Basic (in dollars per share) | $ 0.21 | $ 0.15 | $ 0.19 |
Diluted (in dollars per share) | $ 0.21 | $ 0.15 | $ 0.19 |
Admissions | |||
Revenues: | |||
Revenues | $ 4,968,000 | $ 5,694,000 | |
Event-related | |||
Revenues: | |||
Revenues | $ 2,885,000 | 6,713,000 | 8,410,000 |
Broadcasting | |||
Revenues: | |||
Revenues | 35,646,000 | 34,267,000 | 32,905,000 |
Other | |||
Revenues: | |||
Revenues | $ 12,000 | $ 15,000 | $ 7,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash | $ 12,568,000 | $ 7,577,000 |
Accounts receivable | 601,000 | 645,000 |
Inventories | 18,000 | 18,000 |
Prepaid expenses and other | 1,557,000 | 1,186,000 |
Income taxes receivable | 24,000 | 283,000 |
Assets held for sale | 5,844,000 | |
Total current assets | 20,612,000 | 9,709,000 |
Property and equipment, net | 63,075,000 | 71,357,000 |
Right of use asset | 112,000 | 188,000 |
Deferred income taxes | 2,425,000 | |
Other assets | 1,322,000 | 1,212,000 |
Total assets | 87,546,000 | 82,466,000 |
Current liabilities: | ||
Accounts payable | 570,000 | 119,000 |
Accrued liabilities | 3,463,000 | 3,710,000 |
Contract liabilities | 1,395,000 | 976,000 |
Non-refundable deposit | 500,000 | |
Total current liabilities | 5,928,000 | 4,805,000 |
Liability for pension benefits | 871,000 | 1,016,000 |
Lease liability | 33,000 | 112,000 |
Non-refundable deposit | 500,000 | |
Provision for contingent obligation | 3,218,000 | 3,389,000 |
Deferred income taxes | 8,469,000 | 8,676,000 |
Total liabilities | 18,519,000 | 18,498,000 |
Commitments and contingencies (see Notes to the Consolidated Financial Statements) | ||
Stockholders' equity: | ||
Preferred stock, $0.10 par value; 1,000,000 shares authorized; shares issued and outstanding: none | ||
Additional paid-in capital | 101,207,000 | 100,994,000 |
Accumulated deficit | (32,032,000) | (36,968,000) |
Accumulated other comprehensive loss | (3,785,000) | (3,691,000) |
Total stockholders' equity | 69,027,000 | 63,968,000 |
Total liabilities and stockholders' equity | 87,546,000 | 82,466,000 |
Common Stock [Member] | ||
Stockholders' equity: | ||
Total stockholders' equity | 1,786,000 | 1,782,000 |
Common Stock [Member] | Common Stock | ||
Stockholders' equity: | ||
Common stock | 1,786,000 | 1,782,000 |
Common Stock [Member] | Common Class A [Member] | ||
Stockholders' equity: | ||
Common stock | 1,851,000 | 1,851,000 |
Total stockholders' equity | $ 1,851,000 | $ 1,851,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock [Member] | Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 17,862,407 | 17,823,979 |
Common stock, shares outstanding | 17,862,407 | 17,823,979 |
Common Stock [Member] | Common Class A [Member] | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 55,000,000 | 55,000,000 |
Common stock, shares issued | 18,509,975 | 18,509,975 |
Common stock, shares outstanding | 18,509,975 | 18,509,975 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Net earnings | $ 7,482,000 | $ 5,500,000 | $ 6,889,000 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation | 3,046,000 | 4,353,000 | 3,285,000 |
Amortization of credit facility fees | 56,000 | 61,000 | 63,000 |
Stock-based compensation | 311,000 | 294,000 | 302,000 |
Deferred income taxes | (2,552,000) | 413,000 | (966,000) |
(Benefit) provision for contingent obligation | (171,000) | 1,005,000 | 424,000 |
(Gains) losses on equity investments | (115,000) | (162,000) | 90,000 |
Gain on sale of land | (4,843,000) | (4,325,000) | (2,413,000) |
Changes in assets and liabilities: | |||
Accounts receivable | 44,000 | 31,000 | (200,000) |
Inventories | 3,000 | (6,000) | |
Prepaid expenses and other | (398,000) | (181,000) | 37,000 |
Accounts payable | 219,000 | (8,000) | 66,000 |
Accrued liabilities | (383,000) | 407,000 | 38,000 |
Payable to Dover Downs Gaming & Entertainment, Inc | (9,000) | 2,000 | |
Income taxes payable/receivable | 215,000 | (380,000) | 1,284,000 |
Contract liabilities | 419,000 | (164,000) | (109,000) |
Liability for pension benefits | (137,000) | (63,000) | (1,835,000) |
Net cash provided by operating activities | 3,193,000 | 6,775,000 | 6,951,000 |
Investing activities: | |||
Capital expenditures | (1,998,000) | (6,446,000) | (992,000) |
Proceeds from sale of land, net | 5,960,000 | 7,224,000 | 4,945,000 |
Non-refundable deposit received | 500,000 | 500,000 | |
Purchases of equity investments | (361,000) | (51,000) | (124,000) |
Proceeds from sale of equity investments | 337,000 | 40,000 | 90,000 |
Net cash provided by investing activities | 4,438,000 | 1,267,000 | 3,919,000 |
Financing activities: | |||
Borrowings from revolving line of credit | 3,880,000 | 4,180,000 | 12,260,000 |
Repayments on revolving line of credit | (3,880,000) | (4,180,000) | (15,500,000) |
Dividends paid | (2,546,000) | (3,642,000) | (2,930,000) |
Repurchase of common stock | (94,000) | (739,000) | (750,000) |
Credit facility fees | (35,000) | ||
Net cash used in financing activities | (2,640,000) | (4,416,000) | (6,920,000) |
Net increase in cash | 4,991,000 | 3,626,000 | 3,950,000 |
Cash, beginning of year | 7,577,000 | 3,951,000 | 1,000 |
Cash, end of year | 12,568,000 | 7,577,000 | 3,951,000 |
Supplemental information: | |||
Interest (received) paid | (17,000) | (72,000) | 72,000 |
Income tax payments | 2,275,000 | 1,752,000 | 1,861,000 |
Change in accounts payable for capital expenditures | $ 232,000 | $ (60,000) | $ 60,000 |
Business Operations
Business Operations | 12 Months Ended |
Dec. 31, 2020 | |
Business Operations | |
Business Operations | NOTE 1 — Business Operations References in this document to “we,” “us” and “our” mean Dover Motorsports, Inc. and/or its wholly owned subsidiaries, as appropriate. Dover Motorsports, Inc. is a public holding company that is a marketer and promoter of motorsports entertainment in the United States. Through our subsidiaries, we own and operate Dover International Speedway ® in Dover, Delaware and Nashville Superspeedway ® near Nashville, Tennessee. Our Dover facility was scheduled to promote the following six events during 2020, all of which were under the auspices of the premier sanctioning body in motorsports - the National Association for Stock Car Auto Racing (“NASCAR”): · 2 NASCAR Cup Series events (May and August); · 2 NASCAR Xfinity Series events (May and August); · 1 NASCAR Gander RV & Outdoors Truck Series event (May); and · 1 NASCAR ARCA Menards Series East event (August). Due to the impacts of the COVID-19 pandemic, our May NASCAR weekend was postponed and the three events originally scheduled for that weekend were held in combination with our already scheduled August NASCAR weekend events. On July 25, 2020, Delaware state officials notified us that due to public safety and health concerns, they would not approve our request to host a limited number of fans at our August NASCAR weekend. As a result, all of our 2020 events were held with no fans in attendance during the third quarter of 2020. In contrast, in 2019 and 2018 we held six events, all with fans in attendance. A NASCAR Cup Series event, a NASCAR Xfinity Series event and a NASCAR Gander RV & Outdoors Truck Series event were held at Dover International Speedway during the second quarter of 2019 and 2018. A NASCAR Cup Series event, a NASCAR Xfinity Series event and a NASCAR ARCA Menards Series East event were held at Dover International Speedway during the fourth quarter of 2019 and 2018. In 2021, we are scheduled to once again promote these six events, with three events at Dover International Speedway in May and three events at Nashville Superspeedway in June. The 2020 global outbreak of COVID-19 was declared a pandemic by the World Health Organization on March 11, 2020 and has resulted in travel restrictions, business closures, government-imposed stay-at-home orders and the implementation of “social distancing,” limitations on the size of gatherings, cancellations of events and certain other measures to prevent the further spread of the virus. The continued spread of COVID-19 has also led to unprecedented global economic disruption and volatility in financial markets, a rise in unemployment levels, decreases in consumer confidence levels and spending, and an overall worsening of U.S. economic conditions. It remains highly uncertain how long the pandemic and the resulting economic challenges and restrictions on day-to-day life will last. New or renewed restrictions may be implemented in response to the virus spread rate in the United States and evolving conditions, including overall uncertainty about the timing of widespread availability of vaccines. For those reasons, we are unable to predict the long-term impact of the pandemic on our business at this time. The extent to which COVID-19 impacts our results will depend on future developments, but the continued spread of COVID-19 and associated economic impacts could have a material adverse effect on our future financial condition, liquidity, results of operations and cash flows. In particular, if restrictions related to COVID-19 limit our ability to host fans at our scheduled 2021 events, our admissions and event-related revenues will be adversely impacted. We hosted the Firefly Music Festival (“Firefly”) on our property in Dover, Delaware for eight consecutive years and it was scheduled to return on June 18-21, 2020. Due to the COVID-19 pandemic, the 2020 event was cancelled. The inaugural three day festival with 40 musical acts was held in July 2012 and the 2019 event was held in June 2019 with approximately 120 musical acts. The promoter of the Firefly event is Goldenvoice, a company of AEG Presents, LLC, a subsidiary of Anschutz Entertainment Group, Inc. AEG Presents is one of the world’s largest presenters of live music and entertainment events. Our amended agreement grants them two 5-year options to extend our facility rental agreement through 2032 in exchange for a rental commitment to secure our property. In addition to the facility rental fee, we also receive a percentage of the concession sales we manage at the events. There has been no decision yet regarding whether Firefly will be held in 2021. If Firefly is not held in 2021, due to government-imposed restrictions related to the COVID-19 pandemic or other reasons, our business will be adversely affected. On August 17, 2017, we entered into an agreement with an entity owned by Panattoni Development Company (the “buyer”) relative to the sale of approximately 147 acres of land at our Nashville property at a purchase price of $35,000 per acre. On March 2, 2018, we closed on the sale of the property with proceeds, less closing costs, of $4,945,000. Net proceeds after taxes were approximately $4,150,000 resulting in a gain of $2,512,000. On September 1, 2017, we also awarded to the buyer a three year option for approximately 88 additional acres at a purchase price of $55,000 per acre. That option agreement has been amended twice since: first, on February 9, 2018, to extend its term and to add additional acreage; and second, on June 25, 2019, in connection with the buyer’s exercise of its option on two parcels, we adjusted the acreage and further extended the term of the option on a third parcel. The buyer paid to us $500,000 for the extension of this option until March 1, 2022, and this non-refundable payment would be credited to the purchase price at the closing of that option parcel. On July 26, 2019, the buyer closed on the sale of the first two parcels, comprising approximately 133 acres, which yielded to us proceeds, less closing costs, of $6,397,000. Net proceeds after taxes were approximately $5,314,000 resulting in a gain of $4,186,000. On July 29, 2020, the buyer closed on the sale of the third parcel of approximately 97 acres at our Nashville property. Proceeds from the sale, less closing costs, were $6,460,000. Net proceeds after taxes were approximately $5,290,000 resulting in a gain of $4,843,000. The buyer’s deposit previously paid to us was credited to the purchase price. In November 2020, we entered into an agreement to sell an additional 350 acres of land at our Nashville facility for $14,355,000. The buyer paid us $500,000, which is non-refundable except in the event of a default by us that is not cured within the applicable cure period, and which would be credited to the purchase price at the closing of the sale of that parcel. The transaction is expected to be consummated on or before May 31, 2021. At December 31, 2020, the carrying value of the land is classified as assets held for sale in our consolidated balance sheet. Assuming this option is exercised, the remaining Nashville Superspeedway property will consist of approximately 650 acres. None of the acreage sold or under agreement extends to the land on which our superspeedway is sited. On February 28, 2019, we entered into an agreement to sell 7.63 acres of land at our Nashville facility for proceeds, less closing costs, of $267,000. The sale closed in the first quarter of 2019 and resulted in a gain of $139,000, which we have reported as gain on sale of land in our consolidated statement of earnings. During September 2018, we entered into negotiations to sell the last remaining parcel of land we owned near St. Louis. The sale resulted in a loss of $99,000, which we reported as loss on sale of land in our consolidated statements of earnings. The sale closed in the first quarter of 2019 with proceeds, less closing costs, of $531,000. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | NOTE 2 — Summary of Significant Accounting Policies Basis of consolidation and presentation— The accompanying consolidated financial statements include the accounts of Dover Motorsports, Inc. and our wholly owned subsidiaries. Intercompany transactions and balances have been eliminated. Investments— Investments, which consist of mutual funds, are reported at fair-value in other assets in our consolidated balance sheets. Changes in fair value are reported in other income (expense), net on the consolidated statements of earnings and comprehensive income. See NOTE 7 – Pension Plans, NOTE 8 – Stockholders’ Equity and NOTE 9 – Fair Value Measurements for further discussion. Accounts receivable— Accounts receivable are stated at their estimated collectible amount and do not bear interest. Inventories— Inventories of items for resale are stated at the lower of cost or net realizable value with cost being determined on the first-in, first-out basis. Prepaid expenses and other - Prepaid expenses and other current assets consist primarily of amounts paid for expenses expected to be recognized within a year, and include the following at December 31: 2020 2019 Insurance $ 1,073,000 $ 692,000 Property taxes 322,000 322,000 Other 162,000 172,000 $ 1,557,000 $ 1,186,000 Property and equipment— Property and equipment is stated at cost. Depreciation is provided using the straight-line method over the following estimated useful lives: Facilities 10-40 years Furniture, fixtures and equipment 3-10 years Impairment of long-lived assets— Long-lived assets are assessed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment loss is measured as the amount by which the carrying amount of the asset exceeds its fair value. Generally, fair value is determined using valuation techniques such as the comparable sales approach based on either independent third party appraisals or pending/completed sales transactions. Leases— Effective January 1, 2019, we account for leases under Accounting Standards Codification 842, Leases. Under this guidance, arrangements meeting the definition of a lease are recorded on the consolidated balance sheet as both a right of use asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or our incremental borrowing rate. During the second quarter of 2019, we entered into certain operating leases with 36 month terms. At December 31, 2020 and 2019, respectively, our consolidated balance sheets included a right of use asset of $112,000 and $188,000, a long-term lease liability of $33,000 and $112,000, and a short-term lease liability, which is included in accrued liabilities, of $79,000 and $76,000. Income taxes— Deferred income taxes are provided on all differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements based upon enacted statutory tax rates in effect at the balance sheet date. We record a valuation allowance to reduce our deferred tax assets when uncertainty regarding their realizability exists. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that has a greater than 50% likelihood of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. As of December 31, 2020, our valuation allowance on state net operating loss carryforwards net of federal income taxes was $363,000, which decreased by $2,099,000 in 2020. These state net operating losses are related to our Nashville facility that has not produced taxable income from operations. In 2020, we announced the reopening of Nashville Superspeedway and signed a four-year sanction agreement to host a NASCAR Cup Series race at the facility. We reversed a portion of the previously recorded valuation allowance on the state net operating loss carry forward as a result of this future taxable income. In November 2020, we entered into an agreement to sell land at our Nashville facility in 2021. We reversed an additional portion of the valuation allowance as a result of this future taxable income. Revenue recognition— We classify our revenues as admissions, event-related, broadcasting and other. “Admissions” revenue includes ticket sales for our events. “Event-related” revenue includes amounts received from sponsorship fees; luxury suite rentals; hospitality tent rentals and catering; concessions and vendor commissions for the right to sell concessions and souvenirs at our events; sales of programs; track rentals; broadcasting rights other than domestic television broadcasting revenue, and other event-related revenues. Additionally, event-related revenue includes amounts received for the use of our property and a portion of the concession sales we manage from the Firefly Music Festival. “Broadcasting” revenue includes rights fees obtained for domestic television broadcasts of events held at our speedway. All of our revenues are based on contracts with customers and, with the exception of certain track rentals, relate to two NASCAR event weekends and the Firefly Music Festival held at our Dover facility. Our contracts are typically for specific events or a racing season. We have several multi-year sponsorship contracts for our racing events and our contract with the promoter of the Firefly Music Festival is multi-year. Revenues pertaining to specific events are deferred and recorded as contract liabilities in our consolidated balance sheet until the event is held. As of December 31, 2020, contract liabilities in our consolidated balance sheet relate to 2021 events. As of December 31, 2019, contract liabilities in our consolidated balances sheets related to 2020 events. Concession and souvenir revenues are recorded at the time of sale. Revenues and related expenses from barter transactions in which we provide sponsorship packages in exchange for goods or services are recorded at fair value. Barter transactions accounted for $213,000, $538,000, and $685,000 of total revenues for the years ended December 31, 2020, 2019 and 2018, respectively. The following table summarizes the liability activity related to contracts with customers for the years ended December 31: 2020 2019 2018 Balance, beginning of year $ 976 $ 1,140 $ 1,249 Reductions from beginning balance (273) (1,140) (1,249) Additional liabilities recorded during the year 3,702 8,811 9,941 Reduction of additional liabilities recorded during the year, not from beginning balance (3,010) (7,835) (8,801) Balance, end of year $ 1,395 $ 976 $ 1,140 We have contracted future revenues representing unsatisfied performance obligations. These contracts contain initial terms typically ranging from one to three years, with some for longer periods, excluding renewal options. We have excluded unsatisfied performance obligations for future NASCAR broadcasting revenue with contract terms through 2024. We anticipate recognizing unsatisfied performance obligations for the calendar year ending 2021 and beyond of approximately $3,219,000 at December 31, 2020. Under the terms of our sanction agreements with NASCAR, we receive a portion of the broadcast revenue NASCAR negotiates with various television networks. NASCAR typically remits payment to us for the broadcast revenue within 30 days of the event being held. NASCAR retains 10% of the gross broadcast rights fees allocated to each NASCAR-sanctioned event as a component of its sanction fee. The remaining 90% is recorded as revenue. The event promoter is required to pay 25% of the gross broadcast rights fees to the event as part of the awards to the competitors, which we record as operating expenses. Expense recognition— The cost of advertising is expensed as incurred. Advertising expenses were $56,000, $1,000,000, and $1,205,000 in 2020, 2019 and 2018, respectively. Certain direct expenses pertaining to specific events, including prize and point fund monies and sanction fees paid to NASCAR, and other expenses associated with our racing events are deferred until the event is held, at which point they are expensed. Net earnings per common share— Nonvested share-based payment awards that include rights to dividends or dividend equivalents, whether paid or unpaid, are considered participating securities, and the two-class method of computing basic and diluted net earnings per common share (“EPS”) is applied for all periods presented. The following table sets forth the computation of EPS (in thousands, except per share amounts): 2020 2019 2018 Net earnings per common share — basic and diluted: Net earnings $ 7,482 $ 5,500 $ 6,889 Allocation to nonvested restricted stock awards (115) (87) (111) Net earnings available to common stockholders $ 7,367 $ 5,413 $ 6,778 Weighted-average shares outstanding — basic and diluted 35,836 35,946 36,130 Net earnings per common share — basic and diluted $ 0.21 $ 0.15 $ 0.19 There were no options outstanding during 2020, 2019 or 2018. Accounting for stock-based compensation— We recorded total stock-based compensation expense for our restricted stock awards of $311,000, $294,000, and $302,000 as general and administrative expenses for the years ended December 31, 2020, 2019 and 2018, respectively. We recorded income tax benefits of $69,000, $71,000, and $83,000 for the years ended December 31, 2020, 2019 and 2018, respectively, related to vesting of our restricted stock awards. Use of estimates— The preparation of the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the reported amounts of assets and liabilities, disclosures about contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are based on our best estimates and judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which we believe to be reasonable under the circumstances. We adjust such estimates and assumptions when facts and circumstances dictate. Volatility in credit and equity markets and declines in consumer spending have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. Reclassifications – Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. As a result of the announcement that we will be moving one of our NASCAR Cup Series events historically held at Dover International Speedway to Nashville Superspeedway pursuant to a four-year sanction agreement with NASCAR, long-term assets that were historically shown separately on the consolidated balance sheet have been included in property and equipment, net. The impact of the reclassification made to prior year amounts is not material and did not affect net earnings or cash flows. Recent accounting pronouncements — In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General . This new standard makes changes to the disclosure requirements for sponsors of defined benefit pension and/or other postretirement benefit plans to improve effectiveness of notes to the financial statements. ASU 2018-14 is effective for fiscal years ending after December 15, 2020, and requires retrospective adoption. The adoption of this ASU did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement . This new standard makes changes to the disclosure requirements for fair value measurements to improve effectiveness of notes to the financial statements. ASU 2018-14 is effective for fiscal years beginning after December 15, 2019, and generally requires retrospective adoption. The adoption of this ASU did not have a material impact on our financial statement disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which requires that lessees recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position and also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The update is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within those fiscal years. The ASU requires a transition adoption election using either 1) a modified retrospective approach with periods prior to the adoption date being recast or 2) a prospective adoption approach with a cumulative-effect adjustment recognized to the opening balance of retained earnings on the adoption date with prior periods not recast. We adopted the standard in the first quarter of 2019 using the prospective adoption approach and elected the practical expedient to not recognize lease assets and liabilities for leases with terms of twelve months or less. The adoption of this ASU did not have a material impact on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which enhances the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Some of the amendments include the following: 1) Require certain equity investments to be measured at fair value with changes in fair value recognized in net income; 2) Simplify the impairment assessment of equity investment's without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) Require public business entities to use exit price notion when measuring fair value of financial instruments for disclosure purposes; and 4) Require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting in a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value; among others. The update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted this standard effective January 1, 2018. In accordance with the standard, we reclassified $73,000, net of income taxes, of unrealized gains from accumulated other comprehensive loss to accumulated deficit as of January 1, 2018. See NOTE 8 — Stockholders' Equity. Additionally, changes in fair value of equity investments are now included in other income (expense), net in our consolidated statements of earnings and comprehensive income. See NOTE 9 — Fair Value Measurements. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment | |
Property and Equipment | NOTE 3 — Property and Equipment Property and equipment consists of the following as of December 31: 2020 2019 Land $ 29,037,000 $ 36,503,000 Facilities 93,055,000 92,932,000 Furniture, fixtures and equipment 9,372,000 9,087,000 Construction in progress 1,985,000 163,000 133,449,000 138,685,000 Less accumulated depreciation (70,374,000) (67,328,000) $ 63,075,000 $ 71,357,000 In the third quarter of 2019, management approved plans to remove certain grandstand seating following the completion of our 2019 race season. As a result, we adjusted the service lives of those assets to properly reflect their shortened estimated useful life. We recorded accelerated depreciation expense of $1,172,000 in 2019 related to these assets. We incurred costs of $341,000 and $1,170,000 in 2020 and 2019, respectively, to remove seating which is included in costs to remove long-lived assets in our consolidated statement of earnings and comprehensive income. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities | |
Accrued Liabilities | NOTE 4 — Accrued Liabilities Accrued liabilities consist of the following as of December 31: 2020 2019 Payroll and related items $ 422,000 $ 434,000 Real estate taxes 920,000 943,000 Pension 1,442,000 1,305,000 Grandstand removal cost — 439,000 Other 679,000 589,000 $ 3,463,000 $ 3,710,000 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Long-Term Debt | |
Long-Term Debt | NOTE 5 — Long-Term Debt At December 31, 2020, Dover Motorsports, Inc. and its wholly owned subsidiaries Dover International Speedway, Inc. and Nashville Speedway, USA, Inc., as co-borrowers had a $30,000,000 credit agreement with a bank group. On September 24, 2019, we modified the credit agreement to extend the maturity date to January 1, 2022 and reduce the total available borrowings under the facility from $35,000,000 to $30,000,000. Interest is based upon LIBOR plus a margin that varies between 125 and 175 basis points depending on the leverage ratio. At December 31, 2020 and 2019, there were no borrowings outstanding under the credit facility. The credit facility contains certain covenants including maximum funded debt to earnings before interest, taxes, depreciation and amortization (“leverage ratio”) and a minimum fixed charge coverage ratio. Material adverse changes in our results of operations could impact our ability to maintain financial ratios necessary to satisfy these requirements. In addition, the credit agreement includes a material adverse change clause. The credit facility also provides that if we default under any other loan agreement that would be a default under this facility. At December 31, 2020, we were in compliance with the terms of the credit facility. The credit facility provides for seasonal funding needs, capital improvements, letter of credit requirements and other general corporate purposes. After consideration of stand-by letters of credit outstanding, the remaining maximum borrowings available pursuant to the credit facility were $17,494,000 at December 31, 2020. On February 25, 2021, we modified the credit agreement to: (1) extend the maturity date to September 1, 2024; (2) to reduce the total available borrowings under the facility from $30,000,000 to $25,000,000; and (3) to replace the fixed charge coverage ratio with an interest coverage ratio. We expect to be in compliance with the financial covenants, and all other covenants, for all measurement periods during the next twelve months. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Income Taxes | NOTE 6 — Income Taxes The current and deferred income tax benefit (expense) is as follows: Years ended December 31, 2020 2019 2018 Current: Federal $ (1,975,000) $ (1,251,000) $ (2,461,000) State (515,000) (122,000) (683,000) (2,490,000) (1,373,000) (3,144,000) Deferred: Federal (29,000) (219,000) 929,000 State 2,581,000 (194,000) 37,000 2,552,000 (413,000) 966,000 Total income tax benefit (expense) $ 62,000 $ (1,786,000) $ (2,178,000) A reconciliation of the effective income tax rate with the applicable statutory federal income tax rate is as follows: Years ended December 31, 2020 2019 2018 Federal tax at statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit 15.4 % 65.8 % 19.8 % Valuation allowance (37.4) % (62.4) % (14.2) % Other 0.2 % 0.1 % (2.6) % Effective income tax rate (0.8) % 24.5 % 24.0 % Deferred income tax assets and liabilities are comprised of the following as of December 31: 2020 2019 Deferred income tax assets: Accruals not currently deductible for income taxes $ 1,857,000 $ 1,905,000 Net operating loss carry-forwards 2,773,000 2,989,000 Total deferred income tax assets 4,630,000 4,894,000 Valuation allowance (363,000) (2,462,000) Net deferred income tax assets 4,267,000 2,432,000 Deferred income tax liabilities: Depreciation (10,311,000) (11,108,000) Total deferred income tax liabilities (10,311,000) (11,108,000) Net deferred income tax liability $ (6,044,000) $ (8,676,000) Amounts recognized in the consolidated balance sheets: Noncurrent deferred income tax assets $ 2,425,000 $ — Noncurrent deferred income tax liabilities (8,469,000) (8,676,000) $ (6,044,000) $ (8,676,000) Deferred income taxes relate to the temporary differences between financial accounting income and taxable income and are primarily attributable to differences between the book and tax basis of property and equipment and net operating loss carry-forwards (expiring through 2032). At December 31, 2020, we have available state net operating loss carryforwards of $54,000,000. Valuation allowances which reserved a portion of the state net operating loss carryforwards, net of federal tax benefit, decreased in 2020, 2019, and 2018 by $2,099,000, $4,543,000 and $1,286,000, respectively. We recognize interest expense and penalties on uncertain income tax positions as a component of interest expense. No interest expense or penalties were recorded for uncertain income tax matters in 2020, 2019 or 2018. As of December 31, 2020 and 2019, we had no liabilities for uncertain income tax matters. We file income tax returns with the Internal Revenue Service and the states in which we conduct business. We have identified the U.S. federal and state of Delaware as our major tax jurisdictions. As of December 31, 2020, tax years after 2016 remain open to examination for federal and Delaware income tax purposes. |
Pension Plans
Pension Plans | 12 Months Ended |
Dec. 31, 2020 | |
Pension Plans | |
Pension Plans | NOTE 7 — Pension Plans We maintain a non-contributory tax qualified defined benefit pension plan that has been frozen since July 2011. All of our full time employees were eligible to participate in the qualified plan. Benefits provided by our qualified pension plan were based on years of service and employees' remuneration over their employment period. Compensation earned by employees up to July 31, 2011 is used for purposes of calculating benefits under our pension plan with no future benefit accruals after this date. We also maintain a non-qualified, non-contributory defined benefit pension plan, the excess plan, for certain employees that has been frozen since July 2011. This excess plan provided benefits that would otherwise be provided under the qualified pension plan but for maximum benefit and compensation limits applicable under federal tax law. The cost associated with the excess plan is determined using the same actuarial methods and assumptions as those used for our qualified pension plan. The assets for the excess plan were $1,322,000 and $1,182,000 as of December 31, 2020 and 2019, respectively, and are recorded in other assets in our consolidated balance sheets (see NOTE 9 — Fair Value Measurements). The following table sets forth the defined benefit plans’ funded status and amounts recognized in our consolidated balance sheets as of December 31: 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 15,455,000 $ 13,359,000 Interest cost 436,000 516,000 Actuarial loss 1,569,000 1,998,000 Benefits paid (432,000) (418,000) Benefit obligation at end of year 17,028,000 15,455,000 Change in plan assets: Fair value of plan assets at beginning of year 13,134,000 11,440,000 Actual gain on plan assets 2,009,000 2,108,000 Contributions — — Benefits paid (432,000) (418,000) Other 4,000 4,000 Fair value of plan assets at end of year 14,715,000 13,134,000 Unfunded status $ (2,313,000) $ (2,321,000) The following table presents the amounts recognized in our consolidated balance sheets as of December 31: 2020 2019 Accrued liabilities $ (1,442,000) $ (1,305,000) Liability for pension benefits (871,000) (1,016,000) $ (2,313,000) $ (2,321,000) Amounts recognized in accumulated other comprehensive loss that have not yet been recognized as components of net periodic pension benefit at December 31 are as follows: 2020 2019 Net actuarial loss, pre-tax $ 6,306,000 $ 6,176,000 The components of net periodic pension benefit for our defined benefit pension plans for the years ended December 31, 2020, 2019 and 2018 are as follows: 2020 2019 2018 Interest cost $ 436,000 $ 516,000 $ 463,000 Expected return on plan assets (740,000) (727,000) (699,000) Recognized net actuarial loss 167,000 149,000 151,000 $ (137,000) $ (62,000) $ (85,000) The net periodic pension benefit is included in other income (expense), net in our consolidated statements of earnings and comprehensive income. The principal assumptions used to determine the net periodic pension benefit for the years ended December 31, 2020, 2019 and 2018, and the actuarial value of the benefit obligation at December 31, 2020 and 2019 (the measurement dates) for our pension plans are as follows: Net Periodic Pension Cost Benefit Obligation 2020 2019 2018 2020 2019 Weighted-average discount rate 3.4 % 4.4 % 3.8 % 2.8 % 3.4 % Weighted-average rate of compensation increase n/a n/a n/a n/a n/a Expected long-term rate of return on plan assets 5.75 % 6.5 % 6.5 % n/a n/a We use the spot rate approach to determine the benefit obligation and the subsequent years’ interest cost component of the net periodic pension benefit. This method uses individual spot rates along the yield curve that correspond with the timing of each benefit payment and will provide a more precise measurement of the interest cost by improving the correlation between projected benefit cash flows and the corresponding spot yield curve rates. For 2020, we assumed a long-term rate of return on plan assets of 5.75%. In developing the expected long-term rate of return assumption, we reviewed asset class return expectations and long-term inflation assumptions and considered our historical compounded return, which was consistent with our long-term rate of return assumption. In determining the 2019 pension liability, we updated from the Society of Actuaries (“SOA”) RP-2014 mortality tables with SOA MP-2018 mortality improvement tables to the SOA Pri-2012 mortality tables with the SOA MP-2019 mortality improvement tables. This mortality update, along with a lower discount rate, resulted in an increase in our benefit obligation and accumulated other comprehensive loss at December 31, 2019. For 2020, we updated to the SOA MP-2020 mortality improvement tables, which along with a lower discount rate, resulted in an increase in our benefit obligation and accumulated other comprehensive loss at December 31, 2020. Historically, our investment goals were to achieve a combination of moderate growth of capital and income with moderate risk. Beginning in 2018, our investment strategy changed to a liability driven investment policy. Our asset management decisions are largely determined by the sum of current and future liabilities of our pension plan. Our liability driven investment strategies involve hedging, in whole or in part, the plan’s exposure to changes in interest rates and inflation. Our liability driven investments consist of exchange traded mutual funds that may have underlying investments in hedge funds that are comprised of bonds, swaps and other derivatives that over time seeks to achieve a return that matches or exceeds the growth in projected pension plan liabilities and duration. Our target allocations for plan assets are 20% equities and 80% liability hedges. The fair values of our pension assets as of December 31, 2020 by asset category are as follows (refer to NOTE 9 — Fair Value Measurements for a description of Level 1, Level 2 and Level 3 categories): Asset Category Total Level 1 Level 2 Level 3 Mutual funds/ETFs: Equity-large cap $ 1,108,000 $ 1,108,000 $ — $ — Equity-mid cap 405,000 405,000 — — Equity-small cap 313,000 313,000 — — Equity-international 750,000 750,000 — — Fixed income 11,798,000 11,798,000 — — Money market 341,000 341,000 — — Total mutual funds/ETFs $ 14,715,000 $ 14,715,000 $ — $ — The fair values of our pension assets as of December 31, 2019 by asset category are as follows (refer to NOTE 9 — Fair Value Measurements for a description of Level 1, Level 2 and Level 3 categories): Asset Category Total Level 1 Level 2 Level 3 Mutual funds/ETFs: Equity-large cap $ 995,000 $ 995,000 $ — $ — Equity-mid cap 502,000 502,000 — — Equity-small cap 560,000 560,000 — — Equity-international 667,000 667,000 — — Fixed income 10,358,000 10,358,000 — — Money market 52,000 52,000 — — Total mutual funds/ETFs $ 13,134,000 $ 13,134,000 $ — $ — We have no minimum required pension contributions for 2021, but will consider making additional contributions. Estimated future benefit payments are as follows: 2021 $ 1,989,000 2022 $ 605,000 2023 $ 665,000 2024 $ 669,000 2025 $ 722,000 2026-2030 $ 3,643,000 We also maintain a non-elective, non-qualified supplemental executive retirement plan (“SERP”) which provides deferred compensation to certain highly compensated employees that approximates the value of benefits lost by the freezing of the pension plan which are not offset by our enhanced matching contributions in our 401(k) plan. The SERP is a discretionary defined contribution plan and contributions made to the SERP in any given year are not guaranteed and will be at the sole discretion of our Compensation and Stock Incentive Committee. In 2020, 2019 and 2018, we recorded general and administrative expenses of $88,000, $120,000, and $112,000, respectively, related to the SERP. During 2020, 2019 and 2018, we contributed $120,000, $108,000, and $85,000 to the plan, respectively. The liability for SERP pension benefits was $88,000 and $120,000 as of December 31, 2020 and 2019, respectively, and is included in accrued liabilities in our consolidated balance sheets. We maintain a defined contribution 401(k) plan that permits participation by substantially all employees. Our matching contributions to the 401(k) plan were $132,000, $118,000, and $129,000 in 2020, 2019 and 2018, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity | |
Stockholders' Equity | NOTE 8 — Stockholders’ Equity Changes in the components of stockholders’ equity are as follows (in thousands, except per share amounts): Accumulated Class A Additional Other Common Common Paid-in Accumulated Comprehensive Stock Stock Capital Deficit Loss Balance at December 31, 2017 $ 1,825 $ 1,851 $ 101,844 $ (42,858) $ (3,440) Adoption of ASU 2016-01 (see NOTE 2) — — — 73 (73) Net earnings — — — 6,889 — Dividends paid, $0.08 per share — — — (2,930) — Issuance of restricted stock awards, net of forfeitures 15 — (15) — — Stock-based compensation — — 302 — — Repurchase and retirement of common stock (35) — (715) — — Change in net actuarial loss and prior service cost, net of income tax expense of $60 — — — — 155 Balance at December 31, 2018 1,805 1,851 101,416 (38,826) (3,358) Net earnings — — — 5,500 — Dividends paid, $0.10 per share — — — (3,642) — Issuance of restricted stock awards, net of forfeitures 14 — (14) — — Stock-based compensation — — 294 — — Repurchase and retirement of common stock (37) — (702) — — Change in net actuarial loss and prior service cost, net of income tax benefit of $135 — — — — (333) Balance of December 31, 2019 1,782 1,851 100,994 (36,968) (3,691) Net earnings — — — 7,482 — Dividends paid, $0.07 per share — — — (2,546) — Issuance of restricted stock awards, net of forfeitures 9 — (9) — — Stock-based compensation — — 311 — — Repurchase and retirement of common stock (5) — (89) — — Change in net actuarial loss and prior service cost, net of income tax benefit of $36 — — — — (94) Balance of December 31, 2020 $ 1,786 $ 1,851 $ 101,207 $ (32,032) $ (3,785) As of December 31, 2020 and 2019, accumulated other comprehensive loss, net of income taxes, consists of the following: 2020 2019 Net actuarial loss and prior service cost not yet recognized in net periodic benefit cost, net of income tax benefit of $2,521,000, and $2,485,000, respectively $ (3,785,000) $ (3,691,000) Holders of common stock have one vote per share and holders of Class A common stock have ten votes per share. There is no cumulative voting. Shares of Class A common stock are convertible at any time into shares of common stock on a share for share basis at the option of the holder thereof. Dividends on Class A common stock cannot exceed dividends on common stock on a per share basis. Dividends on common stock may be paid at a higher rate than dividends on Class A common stock. The terms and conditions of each issue of preferred stock are determined by our Board of Directors. No preferred shares have been issued. Effective June 14, 2016, we adopted a stockholder rights plan. The rights are attached to and trade in tandem with our common stock. The rights, unless earlier redeemed by our board of directors, will detach and trade separately from our common stock only upon the occurrence of certain events such as the unsolicited acquisition by a third party of beneficial ownership of 10% or more of our outstanding combined common stock and Class A common stock or the announcement by a third party of the intent to commence a tender or exchange offer for 10% or more of our outstanding combined common stock and Class A common stock. After the rights have detached, the holders of such rights would generally have the ability to purchase such number of either shares of our common stock or stock of an acquirer of our company having a market value equal to twice the exercise price of the right being exercised, thereby causing substantial dilution to a person or group of persons attempting to acquire control of our company. The rights may serve as a significant deterrent to unsolicited attempts to acquire control of us, including transactions involving a premium to the market price of our stock. The rights expire on June 13, 2026, unless earlier redeemed. On July 28, 2004, our Board of Directors authorized the repurchase of up to 2,000,000 shares of our outstanding common stock. The purchases may be made in the open market or in privately negotiated transactions as conditions warrant. The repurchase authorization has no expiration date, does not obligate us to acquire any specific number of shares and may be suspended at any time. We made no purchases in 2020. During the years ended December 31, 2019 and 2018, we purchased and retired 315,840 and 308,928 shares of our outstanding common stock at an average purchase price of $1.99 and $2.08 per share, respectively, not including nominal brokerage commissions. At December 31, 2020, we had remaining repurchase authority of 384,809 shares. During the years ended December 31, 2020, 2019 and 2018, we purchased and retired 50,572, 48,457, and 47,236 shares of our outstanding common stock at an average purchase price of $1.86, $1.99 and $2.00 per share, respectively. These purchases were made from employees in connection with the vesting of restricted stock awards under our Stock Incentive Plan and were not pursuant to the aforementioned repurchase authorization. Since the vesting of a restricted stock award is a taxable event to our employees for which income tax withholding is required, the plan allows employees to surrender to us some of the shares that would otherwise have transferred to the employee in satisfaction of their tax liability. The surrender of these shares is treated by us as a purchase of the shares. We have a stock incentive plan, adopted in 2014, which provides for the grant of up to 2,000,000 shares of common stock to our officers and key employees through stock options and/or awards valued in whole or in part by reference to our common stock, such as nonvested restricted stock awards. Under the plan, nonvested restricted stock vests an aggregate of twenty percent each year beginning on the second anniversary date of the grant. The aggregate market value of the nonvested restricted stock at the date of issuance is being amortized on a straight-line basis over the six-year period. As of December 31, 2020, there were 1,176,000 shares available for granting options or stock awards. Nonvested restricted stock activity for the year ended December 31, 2020 was as follows: Weighted Average Number of Grant Date Shares Fair Value Nonvested at December 31, 2019 574,800 $ 2.17 Granted 158,000 $ 1.86 Vested (143,800) $ 2.29 Forfeited (53,000) $ 2.07 Nonvested at December 31, 2020 536,000 $ 2.05 The aggregate market value of the nonvested restricted stock at the date of issuance is being amortized on a straight-line basis over the six-year service period or the service period remaining until normal retirement age, if shorter. The total fair value of shares vested during the years ended December 31, 2020, 2019 and 2018 based on the weighted average grant date fair value was $329,000, $328,000, and $288,000, respectively. The grant-date fair value per share of nonvested restricted stock awards granted during the years ended December 31, 2020, 2019 and 2018 was $1.86, $1.99, and $2.00, respectively. We recorded compensation expense of $311,000, $294,000, and $302,000 related to restricted stock awards for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, there was $520,000 of total unrecognized compensation cost related to nonvested restricted stock awards granted to employees under our stock incentive plan. That cost is expected to be recognized over a weighted-average period of 3.6 years. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | NOTE 9 — Fair Value Measurements Our financial instruments are classified and disclosed in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The following table summarizes the valuation of our financial instrument pricing levels as of December 31, 2020 and 2019: Total Level 1 Level 2 Level 3 2020 Investments $ 1,322,000 $ 1,322,000 $ — $ — 2019 Investments $ 1,182,000 $ 1,182,000 $ — $ — Our investments consist of mutual funds. These investments are included in other assets in our consolidated balance sheets. Gains and losses on our investments for the year ended December 31, 2020 are as follows: Net gains recognized during the period on equity investments $ 115,000 Less: net gains recognized during the period on equity investments sold during the period 59,000 Unrealized gains recognized during the period on equity investments still held at period end $ 56,000 The carrying amounts of other financial instruments reported in our consolidated balance sheets for current assets and current liabilities approximate their fair values because of the short maturity of these instruments. There were no borrowings outstanding under our credit facility at December 31, 2020 or 2019. Borrowings under our revolving credit agreement bear interest at the variable rate described in NOTE 5 — Long-Term Debt and therefore we believe would approximate fair value. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions | |
Related Party Transactions | NOTE 10 — Related Party Transactions During the years ended December 31, 2019 and 2018, Dover Downs Gaming & Entertainment, Inc. (“Gaming”), a company previously related through common ownership, allocated costs of $430,000 and $1,775,000, respectively, to us for certain administrative and operating services, including leased space. We allocated certain administrative and operating service costs of $110,000 and $189,000, respectively, to Gaming for the years ended December 31, 2019 and 2018. The allocations were based on an analysis of each company’s share of the costs. In connection with our NASCAR event weekends at Dover International Speedway, Gaming provided certain services, primarily catering, for which we were invoiced $847,000 during the year ended December 31, 2018. Additionally, we invoiced Gaming $15,000, and $211,000 during 2019 and 2018, respectively, for tickets, our commission for suite catering and other services to the NASCAR events. Effective March 28, 2019, Gaming became part of Twin River Worldwide Holdings, Inc. as a result of a merger, and therefore, was no longer related through common ownership. Accordingly, the amounts reflected above for the year ended December 31, 2019 are only through March 28, 2019. The net costs incurred by each company for these services are not necessarily indicative of the costs that would have been incurred if the companies had been unrelated entities and/or had otherwise independently managed these functions; however, management believes that these costs are reasonable. Prior to the spin-off of Gaming from our company in 2002, both companies shared certain real property in Dover, Delaware. At the time of the spin-off, some of this real property was transferred to Gaming to ensure that the real property holdings of each company were aligned with its past uses and future business needs. During its harness racing season, Gaming has historically used the 5/8-mile harness racing track that is located on our property and is on the inside of our one-mile motorsports superspeedway. In order to continue this historic use, we granted a perpetual easement to the harness track to Gaming at the time of the spin-off. This perpetual easement allows Gaming to have exclusive use of the harness track during the period beginning November 1 of each year and ending April 30 of the following year, together with set up and tear down rights for the two weeks before and after such period. The easement requires that Gaming maintain the harness track but does not require the payment of any rent. Various easements and agreements relative to access, utilities and parking have also been entered into between us and Gaming relative to our respective Dover, Delaware facilities. We pay rent to Gaming for the lease of our principal executive office space. Henry B. Tippie, Chairman of our Board of Directors, controls in excess of fifty percent of our voting power. Mr. Tippie's voting control emanates from his direct and indirect holdings of common stock and Class A common stock and from his status as a trustee of the RMT Trust, our largest stockholder. This means that Mr. Tippie has the ability to determine the outcome of the election of directors and to determine the outcome of many significant corporate transactions, many of which only require the approval of a majority of our voting power. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | NOTE 11 — Commitments and Contingencies We lease equipment with leases expiring at various dates through 2022. Total rental expense charged to operations amounted to $81,000, $47,000, and $67,000 for the years ended December 31, 2020, 2019 and 2018, respectively. In September 1999, the Sports Authority of the County of Wilson (Tennessee) issued $25,900,000 in Variable Rate Tax Exempt Infrastructure Revenue Bonds, Series 1999, to acquire, construct and develop certain public infrastructure improvements which benefit Nashville Superspeedway, of which $12,300,000 was outstanding at December 31, 2020. Annual principal payments on these bonds range from $1,100,000 in September 2021 to $1,600,000 in 2029 and are payable solely from sales taxes and incremental property taxes generated from the facility. These bonds are direct obligations of the Sports Authority and therefore have historically not been required to be recorded on our consolidated balance sheet. If the sales taxes and incremental property taxes (“applicable taxes”) are insufficient for the payment of principal and interest on the bonds, we would become responsible for the difference. In the event we were unable to make the payments, they would be made pursuant to a $12,506,000 irrevocable direct-pay letter of credit issued by our bank group. We are exposed to fluctuations in interest rates for these bonds. As of December 31, 2020 and 2019, $217,000 and $637,000, respectively, was available in the sales and incremental property tax fund maintained by the Sports Authority to pay the remaining principal and interest due under the bonds. During 2020, we paid $945,000 into the sales and incremental property tax fund and $1,365,000 was deducted from the fund for debt service. If we fail to maintain the letter of credit that secures the bonds or we allow an uncured event of default to exist under our reimbursement agreement relative to the letter of credit, the bonds would be immediately redeemable. Prior to our recent decision to reopen Nashville Superspeedway in 2021, we had not promoted motorsports events at that facility since 2011. In 2011, we recorded a $2,250,000 provision for contingent obligation reflecting the present value of the estimated portion of the revenue bonds debt service that may not be covered by the projected sales and incremental property taxes from the facility. Due to changing interest rates and future property and sales tax assumptions, the provision for contingent obligation decreased by $171,000 in 2020 and increased by $1,005,000 and $424,000 in 2019 and 2018, respectively, and is $3,218,000 at December 31, 2020 . See NOTE 1 – Business Operations. We have employment, severance and noncompete agreements with certain of our officers and directors under which certain change of control, severance and noncompete payments and benefits might become payable in the event of a change in our control, defined to include a tender offer or the closing of a merger or similar corporate transactions. In the event of such a change in control and the subsequent termination of employment of all employees covered under these agreements, we estimate that the maximum contingent liability would range from $8,000,000 to $8,900,000 depending on the tax treatment of the payments. To the extent that any of the potential payments or benefits due under the agreements constitute an excess “parachute payment” under the Internal Revenue Code and result in the imposition of an excise tax, each agreement requires that we pay the amount of such excise tax plus any additional amounts necessary to place the officer or director in the same after-tax position as he would have been had no excise tax been imposed. We estimate that the tax gross ups that could be paid under the agreements in the event the agreements were triggered due to a change of control could be between $2,000,000 and $2,900,000 and these amounts have been included in the maximum contingent liability disclosed above. This maximum tax gross up figure assumes that none of the payments made after the hypothetical change in control would be characterized as reasonable compensation for services rendered. Each agreement with an executive officer provides that fifty percent of the monthly amount paid during the term is paid in consideration of the executive officer’s non-compete covenants. The exclusion of these amounts would reduce the calculated amount of excess parachute payments subject to tax. We are unable to conclude whether the Internal Revenue Service would characterize all or some of these non-compete payments as reasonable compensation for services rendered. We are also a party to ordinary routine litigation incidental to our business. Management does not believe that the resolution of any of these matters is likely to have a material adverse effect on our results of operations, financial position or cash flows. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Basis of consolidation and presentation | Basis of consolidation and presentation— The accompanying consolidated financial statements include the accounts of Dover Motorsports, Inc. and our wholly owned subsidiaries. Intercompany transactions and balances have been eliminated. |
Investments | Investments— Investments, which consist of mutual funds, are reported at fair-value in other assets in our consolidated balance sheets. Changes in fair value are reported in other income (expense), net on the consolidated statements of earnings and comprehensive income. See NOTE 7 – Pension Plans, NOTE 8 – Stockholders’ Equity and NOTE 9 – Fair Value Measurements for further discussion. |
Accounts receivable | Accounts receivable— Accounts receivable are stated at their estimated collectible amount and do not bear interest. |
Inventories | Inventories— Inventories of items for resale are stated at the lower of cost or net realizable value with cost being determined on the first-in, first-out basis. |
Prepaid expenses and other | Prepaid expenses and other - Prepaid expenses and other current assets consist primarily of amounts paid for expenses expected to be recognized within a year, and include the following at December 31: 2020 2019 Insurance $ 1,073,000 $ 692,000 Property taxes 322,000 322,000 Other 162,000 172,000 $ 1,557,000 $ 1,186,000 |
Property and equipment | Property and equipment— Property and equipment is stated at cost. Depreciation is provided using the straight-line method over the following estimated useful lives: Facilities 10-40 years Furniture, fixtures and equipment 3-10 years |
Impairment of long-lived assets | Impairment of long-lived assets— Long-lived assets are assessed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment loss is measured as the amount by which the carrying amount of the asset exceeds its fair value. Generally, fair value is determined using valuation techniques such as the comparable sales approach based on either independent third party appraisals or pending/completed sales transactions. |
Leases | Leases— Effective January 1, 2019, we account for leases under Accounting Standards Codification 842, Leases. Under this guidance, arrangements meeting the definition of a lease are recorded on the consolidated balance sheet as both a right of use asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or our incremental borrowing rate. During the second quarter of 2019, we entered into certain operating leases with 36 month terms. At December 31, 2020 and 2019, respectively, our consolidated balance sheets included a right of use asset of $112,000 and $188,000, a long-term lease liability of $33,000 and $112,000, and a short-term lease liability, which is included in accrued liabilities, of $79,000 and $76,000. |
Income taxes | Income taxes— Deferred income taxes are provided on all differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements based upon enacted statutory tax rates in effect at the balance sheet date. We record a valuation allowance to reduce our deferred tax assets when uncertainty regarding their realizability exists. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that has a greater than 50% likelihood of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. As of December 31, 2020, our valuation allowance on state net operating loss carryforwards net of federal income taxes was $363,000, which decreased by $2,099,000 in 2020. These state net operating losses are related to our Nashville facility that has not produced taxable income from operations. In 2020, we announced the reopening of Nashville Superspeedway and signed a four-year sanction agreement to host a NASCAR Cup Series race at the facility. We reversed a portion of the previously recorded valuation allowance on the state net operating loss carry forward as a result of this future taxable income. In November 2020, we entered into an agreement to sell land at our Nashville facility in 2021. We reversed an additional portion of the valuation allowance as a result of this future taxable income. |
Revenue recognition | Revenue recognition— We classify our revenues as admissions, event-related, broadcasting and other. “Admissions” revenue includes ticket sales for our events. “Event-related” revenue includes amounts received from sponsorship fees; luxury suite rentals; hospitality tent rentals and catering; concessions and vendor commissions for the right to sell concessions and souvenirs at our events; sales of programs; track rentals; broadcasting rights other than domestic television broadcasting revenue, and other event-related revenues. Additionally, event-related revenue includes amounts received for the use of our property and a portion of the concession sales we manage from the Firefly Music Festival. “Broadcasting” revenue includes rights fees obtained for domestic television broadcasts of events held at our speedway. All of our revenues are based on contracts with customers and, with the exception of certain track rentals, relate to two NASCAR event weekends and the Firefly Music Festival held at our Dover facility. Our contracts are typically for specific events or a racing season. We have several multi-year sponsorship contracts for our racing events and our contract with the promoter of the Firefly Music Festival is multi-year. Revenues pertaining to specific events are deferred and recorded as contract liabilities in our consolidated balance sheet until the event is held. As of December 31, 2020, contract liabilities in our consolidated balance sheet relate to 2021 events. As of December 31, 2019, contract liabilities in our consolidated balances sheets related to 2020 events. Concession and souvenir revenues are recorded at the time of sale. Revenues and related expenses from barter transactions in which we provide sponsorship packages in exchange for goods or services are recorded at fair value. Barter transactions accounted for $213,000, $538,000, and $685,000 of total revenues for the years ended December 31, 2020, 2019 and 2018, respectively. The following table summarizes the liability activity related to contracts with customers for the years ended December 31: 2020 2019 2018 Balance, beginning of year $ 976 $ 1,140 $ 1,249 Reductions from beginning balance (273) (1,140) (1,249) Additional liabilities recorded during the year 3,702 8,811 9,941 Reduction of additional liabilities recorded during the year, not from beginning balance (3,010) (7,835) (8,801) Balance, end of year $ 1,395 $ 976 $ 1,140 We have contracted future revenues representing unsatisfied performance obligations. These contracts contain initial terms typically ranging from one to three years, with some for longer periods, excluding renewal options. We have excluded unsatisfied performance obligations for future NASCAR broadcasting revenue with contract terms through 2024. We anticipate recognizing unsatisfied performance obligations for the calendar year ending 2021 and beyond of approximately $3,219,000 at December 31, 2020. Under the terms of our sanction agreements with NASCAR, we receive a portion of the broadcast revenue NASCAR negotiates with various television networks. NASCAR typically remits payment to us for the broadcast revenue within 30 days of the event being held. NASCAR retains 10% of the gross broadcast rights fees allocated to each NASCAR-sanctioned event as a component of its sanction fee. The remaining 90% is recorded as revenue. The event promoter is required to pay 25% of the gross broadcast rights fees to the event as part of the awards to the competitors, which we record as operating expenses. |
Expense recognition | Expense recognition— The cost of advertising is expensed as incurred. Advertising expenses were $56,000, $1,000,000, and $1,205,000 in 2020, 2019 and 2018, respectively. Certain direct expenses pertaining to specific events, including prize and point fund monies and sanction fees paid to NASCAR, and other expenses associated with our racing events are deferred until the event is held, at which point they are expensed. |
Net earnings per common share | Net earnings per common share— Nonvested share-based payment awards that include rights to dividends or dividend equivalents, whether paid or unpaid, are considered participating securities, and the two-class method of computing basic and diluted net earnings per common share (“EPS”) is applied for all periods presented. The following table sets forth the computation of EPS (in thousands, except per share amounts): 2020 2019 2018 Net earnings per common share — basic and diluted: Net earnings $ 7,482 $ 5,500 $ 6,889 Allocation to nonvested restricted stock awards (115) (87) (111) Net earnings available to common stockholders $ 7,367 $ 5,413 $ 6,778 Weighted-average shares outstanding — basic and diluted 35,836 35,946 36,130 Net earnings per common share — basic and diluted $ 0.21 $ 0.15 $ 0.19 There were no options outstanding during 2020, 2019 or 2018. |
Accounting for stock-based compensation | Accounting for stock-based compensation— We recorded total stock-based compensation expense for our restricted stock awards of $311,000, $294,000, and $302,000 as general and administrative expenses for the years ended December 31, 2020, 2019 and 2018, respectively. We recorded income tax benefits of $69,000, $71,000, and $83,000 for the years ended December 31, 2020, 2019 and 2018, respectively, related to vesting of our restricted stock awards. |
Use of estimates | Use of estimates— The preparation of the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the reported amounts of assets and liabilities, disclosures about contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are based on our best estimates and judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which we believe to be reasonable under the circumstances. We adjust such estimates and assumptions when facts and circumstances dictate. Volatility in credit and equity markets and declines in consumer spending have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. |
Reclassifications | Reclassifications – Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. As a result of the announcement that we will be moving one of our NASCAR Cup Series events historically held at Dover International Speedway to Nashville Superspeedway pursuant to a four-year sanction agreement with NASCAR, long-term assets that were historically shown separately on the consolidated balance sheet have been included in property and equipment, net. The impact of the reclassification made to prior year amounts is not material and did not affect net earnings or cash flows. |
Recent accounting pronouncements | Recent accounting pronouncements — In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General . This new standard makes changes to the disclosure requirements for sponsors of defined benefit pension and/or other postretirement benefit plans to improve effectiveness of notes to the financial statements. ASU 2018-14 is effective for fiscal years ending after December 15, 2020, and requires retrospective adoption. The adoption of this ASU did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement . This new standard makes changes to the disclosure requirements for fair value measurements to improve effectiveness of notes to the financial statements. ASU 2018-14 is effective for fiscal years beginning after December 15, 2019, and generally requires retrospective adoption. The adoption of this ASU did not have a material impact on our financial statement disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which requires that lessees recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position and also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The update is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within those fiscal years. The ASU requires a transition adoption election using either 1) a modified retrospective approach with periods prior to the adoption date being recast or 2) a prospective adoption approach with a cumulative-effect adjustment recognized to the opening balance of retained earnings on the adoption date with prior periods not recast. We adopted the standard in the first quarter of 2019 using the prospective adoption approach and elected the practical expedient to not recognize lease assets and liabilities for leases with terms of twelve months or less. The adoption of this ASU did not have a material impact on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which enhances the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Some of the amendments include the following: 1) Require certain equity investments to be measured at fair value with changes in fair value recognized in net income; 2) Simplify the impairment assessment of equity investment's without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) Require public business entities to use exit price notion when measuring fair value of financial instruments for disclosure purposes; and 4) Require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting in a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value; among others. The update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted this standard effective January 1, 2018. In accordance with the standard, we reclassified $73,000, net of income taxes, of unrealized gains from accumulated other comprehensive loss to accumulated deficit as of January 1, 2018. See NOTE 8 — Stockholders' Equity. Additionally, changes in fair value of equity investments are now included in other income (expense), net in our consolidated statements of earnings and comprehensive income. See NOTE 9 — Fair Value Measurements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Summary of prepaid expense and other current assets | 2020 2019 Insurance $ 1,073,000 $ 692,000 Property taxes 322,000 322,000 Other 162,000 172,000 $ 1,557,000 $ 1,186,000 |
Schedule of estimated useful lives of property and equipment | Facilities 10-40 years Furniture, fixtures and equipment 3-10 years |
Summarized liability activity related to contracts with customers | 2020 2019 2018 Balance, beginning of year $ 976 $ 1,140 $ 1,249 Reductions from beginning balance (273) (1,140) (1,249) Additional liabilities recorded during the year 3,702 8,811 9,941 Reduction of additional liabilities recorded during the year, not from beginning balance (3,010) (7,835) (8,801) Balance, end of year $ 1,395 $ 976 $ 1,140 |
Schedule of the computation of EPS | The following table sets forth the computation of EPS (in thousands, except per share amounts): 2020 2019 2018 Net earnings per common share — basic and diluted: Net earnings $ 7,482 $ 5,500 $ 6,889 Allocation to nonvested restricted stock awards (115) (87) (111) Net earnings available to common stockholders $ 7,367 $ 5,413 $ 6,778 Weighted-average shares outstanding — basic and diluted 35,836 35,946 36,130 Net earnings per common share — basic and diluted $ 0.21 $ 0.15 $ 0.19 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment | |
Schedule of components of property and equipment | 2020 2019 Land $ 29,037,000 $ 36,503,000 Facilities 93,055,000 92,932,000 Furniture, fixtures and equipment 9,372,000 9,087,000 Construction in progress 1,985,000 163,000 133,449,000 138,685,000 Less accumulated depreciation (70,374,000) (67,328,000) $ 63,075,000 $ 71,357,000 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities | |
Schedule of accrued liabilities | 2020 2019 Payroll and related items $ 422,000 $ 434,000 Real estate taxes 920,000 943,000 Pension 1,442,000 1,305,000 Grandstand removal cost — 439,000 Other 679,000 589,000 $ 3,463,000 $ 3,710,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Schedule of current and deferred income tax benefit (expense) | Years ended December 31, 2020 2019 2018 Current: Federal $ (1,975,000) $ (1,251,000) $ (2,461,000) State (515,000) (122,000) (683,000) (2,490,000) (1,373,000) (3,144,000) Deferred: Federal (29,000) (219,000) 929,000 State 2,581,000 (194,000) 37,000 2,552,000 (413,000) 966,000 Total income tax benefit (expense) $ 62,000 $ (1,786,000) $ (2,178,000) |
Schedule of reconciliation of the effective income tax rate with the applicable statutory federal income tax rate | Years ended December 31, 2020 2019 2018 Federal tax at statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit 15.4 % 65.8 % 19.8 % Valuation allowance (37.4) % (62.4) % (14.2) % Other 0.2 % 0.1 % (2.6) % Effective income tax rate (0.8) % 24.5 % 24.0 % |
Schedule of deferred income tax assets and liabilities | 2020 2019 Deferred income tax assets: Accruals not currently deductible for income taxes $ 1,857,000 $ 1,905,000 Net operating loss carry-forwards 2,773,000 2,989,000 Total deferred income tax assets 4,630,000 4,894,000 Valuation allowance (363,000) (2,462,000) Net deferred income tax assets 4,267,000 2,432,000 Deferred income tax liabilities: Depreciation (10,311,000) (11,108,000) Total deferred income tax liabilities (10,311,000) (11,108,000) Net deferred income tax liability $ (6,044,000) $ (8,676,000) Amounts recognized in the consolidated balance sheets: Noncurrent deferred income tax assets $ 2,425,000 $ — Noncurrent deferred income tax liabilities (8,469,000) (8,676,000) $ (6,044,000) $ (8,676,000) |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Pension Plans | |
Schedule of defined benefit plans' funded status and amounts recognized in the entity's consolidated balance sheets | 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 15,455,000 $ 13,359,000 Interest cost 436,000 516,000 Actuarial loss 1,569,000 1,998,000 Benefits paid (432,000) (418,000) Benefit obligation at end of year 17,028,000 15,455,000 Change in plan assets: Fair value of plan assets at beginning of year 13,134,000 11,440,000 Actual gain on plan assets 2,009,000 2,108,000 Contributions — — Benefits paid (432,000) (418,000) Other 4,000 4,000 Fair value of plan assets at end of year 14,715,000 13,134,000 Unfunded status $ (2,313,000) $ (2,321,000) |
Schedule of amounts recognized in the entity's consolidated balance sheets | 2020 2019 Accrued liabilities $ (1,442,000) $ (1,305,000) Liability for pension benefits (871,000) (1,016,000) $ (2,313,000) $ (2,321,000) |
Schedule of amounts expected to recognized as components of net periodic pension benefit, which are included in accumulated other comprehensive loss | 2020 2019 Net actuarial loss, pre-tax $ 6,306,000 $ 6,176,000 |
Schedule of components of net periodic pension benefit for defined benefit pension plans | 2020 2019 2018 Interest cost $ 436,000 $ 516,000 $ 463,000 Expected return on plan assets (740,000) (727,000) (699,000) Recognized net actuarial loss 167,000 149,000 151,000 $ (137,000) $ (62,000) $ (85,000) |
Schedule of principal assumptions used to determine the net periodic pension benefit and the actuarial value of the benefit obligation | Net Periodic Pension Cost Benefit Obligation 2020 2019 2018 2020 2019 Weighted-average discount rate 3.4 % 4.4 % 3.8 % 2.8 % 3.4 % Weighted-average rate of compensation increase n/a n/a n/a n/a n/a Expected long-term rate of return on plan assets 5.75 % 6.5 % 6.5 % n/a n/a |
Schedule of fair values of the entity's pension assets | The fair values of our pension assets as of December 31, 2020 by asset category are as follows (refer to NOTE 9 — Fair Value Measurements for a description of Level 1, Level 2 and Level 3 categories): Asset Category Total Level 1 Level 2 Level 3 Mutual funds/ETFs: Equity-large cap $ 1,108,000 $ 1,108,000 $ — $ — Equity-mid cap 405,000 405,000 — — Equity-small cap 313,000 313,000 — — Equity-international 750,000 750,000 — — Fixed income 11,798,000 11,798,000 — — Money market 341,000 341,000 — — Total mutual funds/ETFs $ 14,715,000 $ 14,715,000 $ — $ — The fair values of our pension assets as of December 31, 2019 by asset category are as follows (refer to NOTE 9 — Fair Value Measurements for a description of Level 1, Level 2 and Level 3 categories): Asset Category Total Level 1 Level 2 Level 3 Mutual funds/ETFs: Equity-large cap $ 995,000 $ 995,000 $ — $ — Equity-mid cap 502,000 502,000 — — Equity-small cap 560,000 560,000 — — Equity-international 667,000 667,000 — — Fixed income 10,358,000 10,358,000 — — Money market 52,000 52,000 — — Total mutual funds/ETFs $ 13,134,000 $ 13,134,000 $ — $ — |
Schedule of estimated future benefit payments | 2021 $ 1,989,000 2022 $ 605,000 2023 $ 665,000 2024 $ 669,000 2025 $ 722,000 2026-2030 $ 3,643,000 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity | |
Schedule of the changes in the components of stockholders' equity | Changes in the components of stockholders’ equity are as follows (in thousands, except per share amounts): Accumulated Class A Additional Other Common Common Paid-in Accumulated Comprehensive Stock Stock Capital Deficit Loss Balance at December 31, 2017 $ 1,825 $ 1,851 $ 101,844 $ (42,858) $ (3,440) Adoption of ASU 2016-01 (see NOTE 2) — — — 73 (73) Net earnings — — — 6,889 — Dividends paid, $0.08 per share — — — (2,930) — Issuance of restricted stock awards, net of forfeitures 15 — (15) — — Stock-based compensation — — 302 — — Repurchase and retirement of common stock (35) — (715) — — Change in net actuarial loss and prior service cost, net of income tax expense of $60 — — — — 155 Balance at December 31, 2018 1,805 1,851 101,416 (38,826) (3,358) Net earnings — — — 5,500 — Dividends paid, $0.10 per share — — — (3,642) — Issuance of restricted stock awards, net of forfeitures 14 — (14) — — Stock-based compensation — — 294 — — Repurchase and retirement of common stock (37) — (702) — — Change in net actuarial loss and prior service cost, net of income tax benefit of $135 — — — — (333) Balance of December 31, 2019 1,782 1,851 100,994 (36,968) (3,691) Net earnings — — — 7,482 — Dividends paid, $0.07 per share — — — (2,546) — Issuance of restricted stock awards, net of forfeitures 9 — (9) — — Stock-based compensation — — 311 — — Repurchase and retirement of common stock (5) — (89) — — Change in net actuarial loss and prior service cost, net of income tax benefit of $36 — — — — (94) Balance of December 31, 2020 $ 1,786 $ 1,851 $ 101,207 $ (32,032) $ (3,785) |
Schedule of accumulated other comprehensive loss, net of income taxes | 2020 2019 Net actuarial loss and prior service cost not yet recognized in net periodic benefit cost, net of income tax benefit of $2,521,000, and $2,485,000, respectively $ (3,785,000) $ (3,691,000) |
Schedule of nonvested restricted stock activity | Weighted Average Number of Grant Date Shares Fair Value Nonvested at December 31, 2019 574,800 $ 2.17 Granted 158,000 $ 1.86 Vested (143,800) $ 2.29 Forfeited (53,000) $ 2.07 Nonvested at December 31, 2020 536,000 $ 2.05 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurements | |
Summary of the valuation of financial instrument pricing levels | Total Level 1 Level 2 Level 3 2020 Investments $ 1,322,000 $ 1,322,000 $ — $ — 2019 Investments $ 1,182,000 $ 1,182,000 $ — $ — |
Schedule of gains and losses on equity investments | Net gains recognized during the period on equity investments $ 115,000 Less: net gains recognized during the period on equity investments sold during the period 59,000 Unrealized gains recognized during the period on equity investments still held at period end $ 56,000 |
Business Operations - Dover Int
Business Operations - Dover International Speedway (Details) - item | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jul. 31, 2012 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Operations | |||||
Number of events promoted | 6 | ||||
Total revenues (in percent) | 98.00% | 96.00% | 96.00% | ||
RFGV Festivals | |||||
Business Operations | |||||
Number of options granted to extend rent agreement | 2 | ||||
Number of years Firefly Music Festival hosted | 5 years | ||||
NASCAR Cup Series events | |||||
Business Operations | |||||
Number of events promoted | 2 | ||||
NASCAR Xfinity Series events | |||||
Business Operations | |||||
Number of events promoted | 2 | ||||
NASCAR Gander RV & Outdoors Truck Series event | |||||
Business Operations | |||||
Number of events promoted | 1 | ||||
Nascar ARCA Menards Series East event | |||||
Business Operations | |||||
Number of events promoted | 1 | ||||
Firefly Music Festival ("Firefly") | |||||
Business Operations | |||||
Number of years Firefly Music Festival hosted | 8 years | ||||
Number of days the event is held | 3 days | ||||
Number of music acts featured in the event | 120 | 40 |
Business Operations - Assets he
Business Operations - Assets held for sale (Details) | Jul. 29, 2020USD ($)a | Jul. 26, 2019USD ($)a | Feb. 28, 2019USD ($)a | Mar. 02, 2018USD ($) | Sep. 01, 2017USD ($)a | Nov. 30, 2020USD ($)a | Sep. 30, 2018USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)a | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 25, 2019USD ($) | Aug. 17, 2017USD ($)a |
Business Operations | |||||||||||||
Non-refundable deposit | $ 500,000 | ||||||||||||
Gain (loss) on sale of land | $ 4,843,000 | $ 4,325,000 | $ 2,413,000 | ||||||||||
Nashville Superspeedway | Assets held for sale | |||||||||||||
Business Operations | |||||||||||||
Acres | a | 7.63 | 350 | 650 | ||||||||||
Non-refundable deposit | $ 500,000 | ||||||||||||
Proceeds, less closing costs | $ 267,000 | $ 14,355,000 | |||||||||||
Gain (loss) on sale of land | $ 139,000 | ||||||||||||
Nashville Superspeedway | Land [Member] | |||||||||||||
Business Operations | |||||||||||||
Acres | a | 97 | 133 | 88 | 147 | |||||||||
Purchase price (per acre) | $ 35,000 | ||||||||||||
Option purchase price (per acre) | $ 55,000 | ||||||||||||
Non-refundable deposit | $ 500,000 | ||||||||||||
Period of option to execute the agreement | 3 years | ||||||||||||
Proceeds, less closing costs | $ 6,460,000 | $ 6,397,000 | $ 4,945,000 | ||||||||||
Net proceeds after taxes | 5,290,000 | 5,314,000 | 4,150,000 | ||||||||||
Gain (loss) on sale of land | $ 4,843,000 | $ 4,186,000 | $ 2,512,000 | ||||||||||
Parcel of land near St. Louis | Assets held for sale | |||||||||||||
Business Operations | |||||||||||||
Proceeds, less closing costs | $ 531,000 | ||||||||||||
Gain (loss) on sale of land | $ (99,000) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Prepaid expenses and other (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Prepaid expense and other current assets | ||
Insurance | $ 1,073,000 | $ 692,000 |
Property taxes | 322,000 | 322,000 |
Other | 162,000 | 172,000 |
Prepaid expenses and other | $ 1,557,000 | $ 1,186,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property and equipment | ||
Accumulated depreciation | $ 70,374,000 | $ 67,328,000 |
Facilities [Member] | Minimum [Member] | ||
Property and equipment | ||
Estimated useful lives | 10 years | |
Facilities [Member] | Maximum [Member] | ||
Property and equipment | ||
Estimated useful lives | 40 years | |
Furniture Fixtures and Equipment [Member] | Minimum [Member] | ||
Property and equipment | ||
Estimated useful lives | 3 years | |
Furniture Fixtures and Equipment [Member] | Maximum [Member] | ||
Property and equipment | ||
Estimated useful lives | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Leases (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Leases | |||
Operating leases terms | 36 months | ||
Right of use asset | $ 112,000 | $ 188,000 | |
Long term lease liability | 33,000 | 112,000 | |
Short term lease liability | $ 79,000 | $ 76,000 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseLiabilityCurrent | us-gaap:OperatingLeaseLiabilityCurrent |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating loss carryforwards | |||
Valuation allowance for deferred tax assets | $ 363,000 | $ 2,462,000 | |
State and Local Jurisdiction [Member] | |||
Operating loss carryforwards | |||
Valuation allowance for deferred tax assets | 363,000 | ||
Decrease in valuation allowances | $ 2,099,000 | $ 4,543,000 | $ 1,286,000 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Revenue recognition (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Revenue recognition | |||
Revenues from barter transaction | $ 213,000 | $ 538,000 | $ 685,000 |
Contract with customer liability rollforward | |||
Balance, beginning of period | 976,000 | 1,140,000 | 1,249,000 |
Reductions from beginning balance | (273,000) | (1,140,000) | (1,249,000) |
Additional liabilities recorded during the period | 3,702,000 | 8,811,000 | 9,941,000 |
Reduction of additional liabilities recorded during the period, not from beginning balance | (3,010,000) | (7,835,000) | (8,801,000) |
Balance, end of period | 1,395,000 | $ 976,000 | $ 1,140,000 |
Unsatisfied performance obligations amount | $ 3,219,000 | ||
Remittance period (in days) | 30 days | ||
Gross broadcast rights fees retained by NASCAR (in percent) | 10.00% | ||
Gross broadcast rights fees recorded as revenue (in percent) | 90.00% | ||
Gross broadcast rights fees payable to the event (in percent) | 25.00% | ||
Minimum [Member] | |||
Contract with customer liability rollforward | |||
Contract term (in years) | 1 year | ||
Maximum [Member] | |||
Contract with customer liability rollforward | |||
Contract term (in years) | 3 years | ||
NASCAR | |||
Revenue recognition | |||
Events excluded from revenue based on contract with customers (number) | item | 2 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Expense recognition (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies | |||
Advertising Expense | $ 56,000 | $ 1,000,000 | $ 1,205,000 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Net earnings per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies | |||
Net earnings | $ 7,482 | $ 5,500 | $ 6,889 |
Allocation to nonvested restricted stock awards | (115) | (87) | (111) |
Net earnings available to common stockholders | $ 7,367 | $ 5,413 | $ 6,778 |
Weighted-average shares outstanding - basic and diluted | 35,836,000 | 35,946,000 | 36,130,000 |
Net earnings per common share - basic and diluted | $ 0.21 | $ 0.15 | $ 0.19 |
Options outstanding (in shares) | 0 | 0 | 0 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Accounting for stock-based compensation (Details) - Restricted Stock [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting for stock-based compensation | |||
Stock-based compensation expense | $ 311,000 | $ 294,000 | $ 302,000 |
Income tax benefits related to vesting of restricted stock awards | $ 69,000 | $ 71,000 | $ 83,000 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Reclassifications (Details) | 12 Months Ended |
Dec. 31, 2020 | |
NASCAR | |
Agreement term | 4 years |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Recent accounting pronouncements (Details) - ASU 2016-01 - USD ($) | Dec. 31, 2018 | Jan. 01, 2018 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Recent accounting pronouncements | ||
Reclassification on adoption of ASU 2016-01 | $ (73,000) | |
Retained Earnings [Member] | ||
Recent accounting pronouncements | ||
Reclassification on adoption of ASU 2016-01 | $ 73,000 | |
Adjustment | Retained Earnings [Member] | ||
Recent accounting pronouncements | ||
Reclassification on adoption of ASU 2016-01 | $ 73,000 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property and equipment | ||
Gross | $ 133,449,000 | $ 138,685,000 |
Less accumulated depreciation | (70,374,000) | (67,328,000) |
Net | 63,075,000 | 71,357,000 |
Accelerated depreciation expense | 1,172,000 | |
Costs to remove long-lived assets | 341,000 | 1,170,000 |
Land [Member] | ||
Property and equipment | ||
Gross | 29,037,000 | 36,503,000 |
Facilities [Member] | ||
Property and equipment | ||
Gross | 93,055,000 | 92,932,000 |
Furniture Fixtures and Equipment [Member] | ||
Property and equipment | ||
Gross | 9,372,000 | 9,087,000 |
Construction in progress | ||
Property and equipment | ||
Gross | $ 1,985,000 | $ 163,000 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities | ||
Payroll and related items | $ 422,000 | $ 434,000 |
Real estate taxes | 920,000 | 943,000 |
Pension | 1,442,000 | 1,305,000 |
Grandstand removal cost | 439,000 | |
Other | 679,000 | 589,000 |
Total | $ 3,463,000 | $ 3,710,000 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Sep. 24, 2019 | Sep. 23, 2019 | |
Long-Term Debt | |||
Maximum borrowing capacity | $ 30,000,000 | $ 30,000,000 | $ 35,000,000 |
Amount outstanding under the credit facility | 0 | ||
Remaining maximum borrowing capacity | 17,494,000 | ||
Minimum [Member] | |||
Long-Term Debt | |||
Maximum borrowing capacity | 25,000,000 | ||
Maximum [Member] | |||
Long-Term Debt | |||
Maximum borrowing capacity | $ 30,000,000 | ||
LIBOR | Minimum [Member] | |||
Long-Term Debt | |||
Basis points (in percent) | 1.25% | ||
LIBOR | Maximum [Member] | |||
Long-Term Debt | |||
Basis points (in percent) | 1.75% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ (1,975,000) | $ (1,251,000) | $ (2,461,000) |
State | (515,000) | (122,000) | (683,000) |
Total | (2,490,000) | (1,373,000) | (3,144,000) |
Deferred: | |||
Federal | (29,000) | (219,000) | 929,000 |
State | 2,581,000 | (194,000) | 37,000 |
Total | 2,552,000 | (413,000) | 966,000 |
Total income tax benefit (expense) | $ 62,000 | $ (1,786,000) | $ (2,178,000) |
Reconciliation of the effective income tax rate with the applicable statutory federal income tax rate | |||
Federal tax at statutory rate (as a percent) | 21.00% | 21.00% | 21.00% |
State taxes, net of federal benefit (as a percent) | 15.40% | 65.80% | 19.80% |
Valuation allowance (as a percent) | (37.40%) | (62.40%) | (14.20%) |
Other (as a percent) | 0.20% | 0.10% | (2.60%) |
Effective income tax rate (as a percent) | (0.80%) | 24.50% | 24.00% |
Deferred income tax assets: | |||
Accruals not currently deductible for income taxes | $ 1,857,000 | $ 1,905,000 | |
Net operating loss carry-forwards | 2,773,000 | 2,989,000 | |
Total deferred income tax assets | 4,630,000 | 4,894,000 | |
Valuation allowance | (363,000) | (2,462,000) | |
Net deferred income tax assets | 4,267,000 | 2,432,000 | |
Deferred income tax liabilities: | |||
Depreciation | (10,311,000) | (11,108,000) | |
Total deferred income tax liabilities | (10,311,000) | (11,108,000) | |
Net deferred income tax liability | (6,044,000) | (8,676,000) | |
Amounts recognized in the consolidated balance sheets: | |||
Noncurrent deferred income tax assets | 2,425,000 | ||
Noncurrent deferred income tax liabilities | (8,469,000) | (8,676,000) | |
Net deferred income tax liability | $ (6,044,000) | $ (8,676,000) |
Income Taxes - Carryforward and
Income Taxes - Carryforward and Valuation allowances (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effect of Tax Cuts and Jobs Act [Abstract] | |||
Federal income tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
Uncertain income tax positions | |||
Interest expense recorded | $ 0 | $ 0 | $ 0 |
Liability for uncertain income tax matters | 0 | 0 | |
State and Local Jurisdiction [Member] | |||
Operating loss carryforwards | |||
Net operating loss carryforwards | 54,000,000 | ||
Decrease in valuation allowances | $ 2,099,000 | $ 4,543,000 | $ 1,286,000 |
Pension Plans (Details)
Pension Plans (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Pension plans | |||
Fair values of pension assets | $ 14,715,000 | $ 13,134,000 | $ 11,440,000 |
Pension Plans, Defined Benefit [Member] | |||
Pension plans | |||
Fair values of pension assets | $ 1,322,000 | $ 1,182,000 |
Pension Plans - Defined benefit
Pension Plans - Defined benefit plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 15,455,000 | $ 13,359,000 | |
Interest cost | 436,000 | 516,000 | $ 463,000 |
Actuarial loss | 1,569,000 | 1,998,000 | |
Benefits paid | (432,000) | (418,000) | |
Benefit obligation at end of year | 17,028,000 | 15,455,000 | 13,359,000 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 13,134,000 | 11,440,000 | |
Actual gain on plan assets | 2,009,000 | 2,108,000 | |
Benefits paid | (432,000) | (418,000) | |
Other | 4,000 | 4,000 | |
Unfunded status | (2,313,000) | (2,321,000) | |
Fair value of plan assets at end of year | 14,715,000 | 13,134,000 | 11,440,000 |
Amounts recognized in consolidated balance sheets | |||
Accrued liabilities | (1,442,000) | (1,305,000) | |
Liability for pension benefits | (871,000) | (1,016,000) | |
Total | (2,313,000) | (2,321,000) | |
Amounts recognized in accumulated other comprehensive loss that have not been recognized as components of net periodic pension benefit (expense) | |||
Net actuarial loss, pre-tax | 6,306,000 | 6,176,000 | |
Components of net periodic pension benefit | |||
Interest cost | 436,000 | 516,000 | 463,000 |
Expected return on plan assets | (740,000) | (727,000) | (699,000) |
Recognized net actuarial loss | 167,000 | 149,000 | 151,000 |
Total net periodic pension benefit | $ (137,000) | $ (62,000) | $ (85,000) |
Net Periodic Pension Cost | |||
Weighted-average discount rate (as a percent) | 3.40% | 4.40% | 3.80% |
Expected long-term rate of return on plan assets (as a percent) | 5.75% | 6.50% | 6.50% |
Benefit Obligation | |||
Weighted-average discount rate (as a percent) | 2.80% | 3.40% |
Pension Plans - Fair Value of P
Pension Plans - Fair Value of Pension and Estimated future benefit (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Pension plans | |||
Fair values of pension assets | $ 14,715,000 | $ 13,134,000 | $ 11,440,000 |
Minimum required pension contributions for 2020 | 0 | ||
Estimated future benefit payments | |||
2021 | 1,989,000 | ||
2022 | 605,000 | ||
2023 | 665,000 | ||
2024 | 669,000 | ||
2025 | 722,000 | ||
2026-2030 | $ 3,643,000 | ||
Equity Funds [Member] | |||
Pension plans | |||
Target allocations for plan assets (as a percent) | 20.00% | ||
Equity and Exchange Traded Funds [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Pension plans | |||
Fair values of pension assets | $ 14,715,000 | 13,134,000 | |
Equity and Exchange Traded Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Pension plans | |||
Fair values of pension assets | 14,715,000 | 13,134,000 | |
Equity Large Cap [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Pension plans | |||
Fair values of pension assets | 1,108,000 | 995,000 | |
Equity Large Cap [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Pension plans | |||
Fair values of pension assets | 1,108,000 | 995,000 | |
Equity Mid Cap [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Pension plans | |||
Fair values of pension assets | 405,000 | 502,000 | |
Equity Mid Cap [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Pension plans | |||
Fair values of pension assets | 405,000 | 502,000 | |
Equity Small Cap [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Pension plans | |||
Fair values of pension assets | 313,000 | 560,000 | |
Equity Small Cap [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Pension plans | |||
Fair values of pension assets | 313,000 | 560,000 | |
Equity Funds Foreign [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Pension plans | |||
Fair values of pension assets | 750,000 | 667,000 | |
Equity Funds Foreign [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Pension plans | |||
Fair values of pension assets | 750,000 | 667,000 | |
Fixed Income Funds [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Pension plans | |||
Fair values of pension assets | 11,798,000 | 10,358,000 | |
Fixed Income Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Pension plans | |||
Fair values of pension assets | 11,798,000 | 10,358,000 | |
Money Market Funds [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Pension plans | |||
Fair values of pension assets | 341,000 | 52,000 | |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Pension plans | |||
Fair values of pension assets | $ 341,000 | $ 52,000 | |
Liability hedges | |||
Pension plans | |||
Target allocations for plan assets (as a percent) | 80.00% |
Pension Plans - SERP (Details)
Pension Plans - SERP (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SERP | |||
Defined contribution plan | |||
Expenses recorded | $ 88,000 | $ 120,000 | $ 112,000 |
Employer contributions | 120,000 | 108,000 | 85,000 |
Liability for pension benefits | 88,000 | 120,000 | |
Defined Contribution 401 K Plan [Member] | |||
Defined contribution plan | |||
Expenses recorded | $ 132,000 | $ 118,000 | $ 129,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | Jun. 14, 2016 | Dec. 31, 2020USD ($)Vote$ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | Jan. 01, 2018USD ($) |
Changes in the components of stockholders' equity | |||||
Balance at the beginning of the period | $ 63,968,000 | ||||
Net earnings | 7,482,000 | $ 5,500,000 | $ 6,889,000 | ||
Dividends paid | 2,546,000 | 3,642,000 | 2,930,000 | ||
Change in net actuarial loss and prior service cost, net of income tax expense | (94,000) | (333,000) | 155,000 | ||
Balance at the end of the period | 69,027,000 | 63,968,000 | |||
Accumulated other comprehensive loss, net of income taxes | |||||
Net actuarial loss and prior service cost not yet recognized in net periodic benefit cost, net of income tax benefit | (3,785,000) | (3,691,000) | |||
Income tax benefit on net actuarial loss and prior service cost not yet recognized in net periodic benefit cost | $ 2,521,000 | 2,485,000 | |||
Minimum percentage of common stock to be acquired for rights to detach and be traded separately from common stock | 10.00% | ||||
Minimum percentage of common stock to be announced for tender or exchange for rights to detach and be traded separately from common stock | 10.00% | ||||
Common Class A [Member] | |||||
Changes in the components of stockholders' equity | |||||
Number of votes per share | Vote | 10 | ||||
Common Stock [Member] | |||||
Changes in the components of stockholders' equity | |||||
Balance at the beginning of the period | $ 1,782,000 | 1,805,000 | 1,825,000 | ||
Issuance of restricted stock awards, net of forfeitures | 9,000 | 14,000 | 15,000 | ||
Repurchase and retirement of common stock | (5,000) | (37,000) | (35,000) | ||
Balance at the end of the period | $ 1,786,000 | 1,782,000 | 1,805,000 | ||
Number of votes per share | Vote | 1 | ||||
Common Stock [Member] | Common Class A [Member] | |||||
Changes in the components of stockholders' equity | |||||
Balance at the beginning of the period | $ 1,851,000 | 1,851,000 | 1,851,000 | ||
Balance at the end of the period | 1,851,000 | 1,851,000 | 1,851,000 | ||
Additional Paid-in Capital [Member] | |||||
Changes in the components of stockholders' equity | |||||
Balance at the beginning of the period | 100,994,000 | 101,416,000 | 101,844,000 | ||
Issuance of restricted stock awards, net of forfeitures | (9,000) | (14,000) | (15,000) | ||
Stock-based compensation | (311,000) | 294,000 | 302,000 | ||
Repurchase and retirement of common stock | (89,000) | (702,000) | (715,000) | ||
Balance at the end of the period | 101,207,000 | 100,994,000 | 101,416,000 | ||
Retained Earnings [Member] | |||||
Changes in the components of stockholders' equity | |||||
Balance at the beginning of the period | (36,968,000) | (38,826,000) | (42,858,000) | ||
Net earnings | 7,482,000 | 5,500,000 | 6,889,000 | ||
Dividends paid | $ (2,546,000) | $ (3,642,000) | $ (2,930,000) | ||
Dividends paid (in dollars per share) | $ / shares | $ 0.07 | $ 0.10 | $ 0.08 | ||
Balance at the end of the period | $ (32,032,000) | $ (36,968,000) | $ (38,826,000) | ||
Retained Earnings [Member] | ASU 2016-01 | |||||
Changes in the components of stockholders' equity | |||||
Adoption of ASU 2016-01 | 73,000 | ||||
Retained Earnings [Member] | ASU 2016-01 | Adjustment | |||||
Changes in the components of stockholders' equity | |||||
Adoption of ASU 2016-01 | $ 73,000 | ||||
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Changes in the components of stockholders' equity | |||||
Balance at the beginning of the period | (3,691,000) | (3,358,000) | (3,440,000) | ||
Change in net actuarial loss and prior service cost, net of income tax expense | (94,000) | (333,000) | 155,000 | ||
Balance at the end of the period | (3,785,000) | (3,691,000) | (3,358,000) | ||
Income tax expense on change in net actuarial loss and prior service cost | $ 36,000 | $ (135,000) | 60,000 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ASU 2016-01 | |||||
Changes in the components of stockholders' equity | |||||
Adoption of ASU 2016-01 | $ (73,000) |
Stockholders' Equity - Stock in
Stockholders' Equity - Stock incentive plan (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2014 | Jul. 28, 2004 | |
Stockholders Equity | |||||
Maximum number of shares authorized for grant | 2,000,000 | ||||
Number of shares available for granting options or stock awards | 1,176,000 | ||||
Share Repurchase Authorization 2004 [Member] | |||||
Stockholders Equity | |||||
Number of shares of common stock authorized to be repurchased | 2,000,000 | ||||
Number of shares purchased and retired | 315,840 | 308,928 | |||
Average purchase price of shares purchased and retired (in dollars per share) | $ 1.99 | $ 2.08 | |||
Remaining number of shares authorized to be repurchased | 384,809 | ||||
Restricted Stock [Member] | |||||
Stockholders Equity | |||||
Number of shares purchased and retired | 50,572 | 48,457 | 47,236 | ||
Average purchase price of shares purchased and retired (in dollars per share) | $ 1.86 | $ 1.99 | $ 2 | ||
Vesting rights percentage each year beginning on the second anniversary date of the grant | 20.00% | ||||
Service period over which the aggregate market value of stock is being amortized | 6 years | 6 years | |||
Number of Shares | |||||
Nonvested at the beginning of the period (in shares) | 574,800 | ||||
Granted (in shares) | 158,000 | ||||
Vested (in shares) | (143,800) | ||||
Forfeited (in shares) | (53,000) | ||||
Nonvested at the end of the period (in shares) | 536,000 | 574,800 | |||
Weighted Average Grant Date Fair Value | |||||
Nonvested at the beginning of the period (in dollars per share) | $ 2.17 | ||||
Granted (in dollars per share) | 1.86 | $ 1.99 | $ 2 | ||
Vested (in dollars per share) | 2.29 | ||||
Forfeited (in dollars per share) | 2.07 | ||||
Nonvested at the end of the period (in dollars per share) | $ 2.05 | $ 2.17 | |||
Additional disclosure | |||||
Total fair value of shares vested during the period (in dollars) | $ 329,000 | $ 328,000 | $ 288,000 | ||
Stock-based compensation expense | 311,000 | $ 294,000 | $ 302,000 | ||
Total unrecognized compensation cost (in dollars) | $ 520,000 | ||||
Weighted-average period for recognition of total unrecognized compensation cost | 3 years 7 months 6 days |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Measurements | ||
Amount outstanding under revolving credit agreement | $ 0 | $ 0 |
Gains and losses on equity instruments | ||
Net gains recognized during the period on equity investments | 115,000 | |
Less: net gains recognized during the period on equity investments sold during the period | 59,000 | |
Unrealized gains recognized during the period on equity investments still held at period end | 56,000 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value Measurements | ||
Investments | 1,322,000 | 1,182,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Measurements | ||
Investments | $ 1,322,000 | $ 1,182,000 |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended | ||
Dec. 31, 2020mi | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Affiliated Entity [Member] | |||
Related Party Transactions | |||
Payable to related party | $ 430,000 | $ 1,775,000 | |
Receivable from related party | 110,000 | 189,000 | |
Harness racing track length (in miles) | mi | 0.625 | ||
Motorsports superspeedway length (in miles) | mi | 1 | ||
Period for set up and tear down rights | 14 days | ||
Affiliated Entity [Member] | NASCAR | |||
Related Party Transactions | |||
Payable to related party | 847,000 | ||
Receivable from related party | $ 15,000 | $ 211,000 | |
Board of Directors Chairman [Member] | |||
Related Party Transactions | |||
Voting rights (in percent) | 50.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2011 | Sep. 30, 1999 | |
Commitments and Contingencies | |||||
Equipment rental expense | $ 81,000 | $ 47,000 | $ 67,000 | ||
Contingent obligation | |||||
(Benefit) provision for contingent obligation | (171,000) | 1,005,000 | $ 424,000 | $ 2,250,000 | |
Provision for contingent obligation | $ 3,218,000 | 3,389,000 | |||
Tax gross up for parachute payment | |||||
Commitments and Contingencies | |||||
Percentage of monthly amount paid in consideration of non-compete covenants | 50.00% | ||||
Minimum [Member] | Employment, severance and noncompete | |||||
Commitments and Contingencies | |||||
Maximum contingent liability | $ 8,000,000 | ||||
Minimum [Member] | Tax gross up for parachute payment | |||||
Commitments and Contingencies | |||||
Maximum contingent liability | 2,000,000 | ||||
Maximum [Member] | Employment, severance and noncompete | |||||
Commitments and Contingencies | |||||
Maximum contingent liability | 8,900,000 | ||||
Maximum [Member] | Tax gross up for parachute payment | |||||
Commitments and Contingencies | |||||
Maximum contingent liability | 2,900,000 | ||||
Nontaxable Municipal Bonds [Member] | Indirect Guarantee of Indebtedness [Member] | |||||
Commitments and Contingencies | |||||
Outstanding amount | 12,300,000 | ||||
Balance available in the sales and incremental property tax fund | 217,000 | $ 637,000 | |||
Amount paid into the sales and incremental property tax fund | 945,000 | ||||
Debt service fee | 1,365,000 | ||||
Nontaxable Municipal Bonds [Member] | Irrevocable direct-pay letter of credit | |||||
Commitments and Contingencies | |||||
Irrevocable direct-pay letter of credit issued | 12,506,000 | ||||
Nontaxable Municipal Bonds [Member] | Minimum [Member] | Indirect Guarantee of Indebtedness [Member] | |||||
Commitments and Contingencies | |||||
Annual payment range | 1,100,000 | ||||
Nontaxable Municipal Bonds [Member] | Maximum [Member] | Indirect Guarantee of Indebtedness [Member] | |||||
Commitments and Contingencies | |||||
Annual payment range | $ 1,600,000 | ||||
Nontaxable Municipal Bonds [Member] | Sports Authority of the County of Wilson (Tennessee) | Indirect Guarantee of Indebtedness [Member] | |||||
Commitments and Contingencies | |||||
Debt issued | $ 25,900,000 |