Document and Entity Information
Document and Entity Information | 3 Months Ended |
Feb. 28, 2019shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Feb. 28, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | ISCA |
Entity Registrant Name | INTERNATIONAL SPEEDWAY CORP |
Entity Central Index Key | 0000051548 |
Current Fiscal Year End Date | --11-30 |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Class A Common Stock | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 23,791,776 |
Class B Common Stock | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 19,629,216 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 30, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 273,193 | $ 269,011 |
Receivables, less allowance of $1,000 in 2018 and 2019, respectively | 86,367 | 42,833 |
Prepaid expenses and other current assets | 26,528 | 10,611 |
Total Current Assets | 386,088 | 322,455 |
Property and Equipment, net of accumulated depreciation of $1,129,378 and $1,157,288, respectively | 1,512,289 | 1,515,041 |
Other Assets: | ||
Equity investments | 80,554 | 81,225 |
Intangible assets, net | 179,832 | 178,563 |
Goodwill | 118,872 | 118,331 |
Other | 30,497 | 33,745 |
Total Other Assets, Total | 409,755 | 411,864 |
Total Assets | 2,308,132 | 2,249,360 |
Current Liabilities: | ||
Current portion of long-term debt | 4,402 | 4,284 |
Accounts payable | 28,152 | 31,508 |
Deferred income | 71,272 | 36,801 |
Income taxes payable | 9,655 | 2,535 |
Other current liabilities | 14,318 | 15,551 |
Total Current Liabilities | 127,799 | 90,679 |
Long-Term Debt | 251,086 | 251,381 |
Deferred Income Taxes | 260,615 | 260,666 |
Long-Term Deferred Income | 7,428 | 7,575 |
Other Long-Term Liabilities | 2,679 | 3,101 |
Commitments and Contingencies | 0 | 0 |
Shareholders’ Equity: | ||
Additional paid-in capital | 426,041 | 425,233 |
Retained earnings | 1,233,054 | 1,211,499 |
Accumulated other comprehensive loss | (1,000) | (1,204) |
Total Shareholders’ Equity | 1,658,525 | 1,635,958 |
Total Liabilities and Shareholders’ Equity | 2,308,132 | 2,249,360 |
Class A Common Stock $.01 Par Value | ||
Shareholders’ Equity: | ||
Common stock value | 234 | 234 |
Class B Common Stock $.01 Par Value | ||
Shareholders’ Equity: | ||
Common stock value | $ 196 | $ 196 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 30, 2018 |
Allowance for receivables | $ 1,000 | $ 1,000 |
Property and Equipment, accumulated depreciation | $ 1,157,288 | $ 1,129,378 |
Class A Common Stock $.01 Par Value | ||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 80,000,000 | 80,000,000 |
Common Stock, shares issued (in shares) | 23,423,881 | 23,408,516 |
Common Stock, shares outstanding (in shares) | 23,423,881 | 23,408,516 |
Class B Common Stock $.01 Par Value | ||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common Stock, shares issued (in shares) | 19,629,216 | 19,644,581 |
Common Stock, shares outstanding (in shares) | 19,629,216 | 19,644,581 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Revenues [Abstract] | ||
Revenues | $ 150,551 | $ 148,875 |
Direct Expenses: | ||
Other operating expenses | 1,908 | 1,209 |
General and administrative | 29,608 | 25,742 |
Depreciation and amortization | 29,259 | 26,739 |
Losses on asset retirements | 381 | 1,162 |
Costs and Expenses, Total | 125,022 | 116,381 |
Operating income | 25,529 | 32,494 |
Interest income | 1,233 | 521 |
Interest expense | (3,722) | (2,885) |
Equity in net income from equity investments | 5,512 | 4,308 |
Other | 0 | 15 |
Income before income taxes | 28,552 | 34,453 |
Income taxes | 6,997 | (134,894) |
Net income | $ 21,555 | $ 169,347 |
(Loss) earnings per share: | ||
Basic and diluted (in dollars per share) | $ 0.50 | $ 3.83 |
Basic weighted average shares outstanding (shares) | 43,420,992 | 44,196,489 |
Diluted weighted average shares outstanding (shares) | 43,427,255 | 44,210,102 |
Admissions, net | ||
Revenues [Abstract] | ||
Revenues | $ 29,334 | $ 30,562 |
Motorsports and other event related | ||
Revenues [Abstract] | ||
Revenues | 106,641 | 105,786 |
Direct Expenses: | ||
Direct Expenses | 26,388 | 26,035 |
Food, beverage and merchandise | ||
Revenues [Abstract] | ||
Revenues | 9,252 | 7,950 |
Direct Expenses: | ||
Direct Expenses | 6,578 | 5,629 |
Other | ||
Revenues [Abstract] | ||
Revenues | 5,324 | 4,577 |
NASCAR event management fees | ||
Direct Expenses: | ||
Direct Expenses | $ 30,900 | $ 29,865 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 21,555 | $ 169,347 |
Other comprehensive income: | ||
Amortization of terminated interest rate swap, net of tax benefit | 204 | 189 |
Comprehensive income | $ 21,759 | $ 169,536 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Amortization of interest rate swap, net of tax benefit | $ 67 | $ 82 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - 3 months ended Feb. 28, 2019 - USD ($) $ in Thousands | Total | Common StockClass A Common Stock $.01 Par Value | Common StockClass B Common Stock $.01 Par Value | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance at Nov. 30, 2018 | $ 1,635,958 | $ 234 | $ 196 | $ 425,233 | $ 1,211,499 | $ (1,204) |
Activity 12/1/18 — 2/28/19: | ||||||
Net income | 21,555 | 21,555 | ||||
Comprehensive income | 204 | 204 | ||||
Stock-based compensation | 808 | 808 | ||||
Balance at Feb. 28, 2019 | $ 1,658,525 | $ 234 | $ 196 | $ 426,041 | $ 1,233,054 | $ (1,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
OPERATING ACTIVITIES | ||
Net income | $ 21,555 | $ 169,347 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 29,259 | 26,739 |
Stock-based compensation | 808 | 775 |
Amortization of financing costs | 414 | 403 |
Deferred income taxes | (118) | (138,055) |
Income from equity investments | (5,512) | (4,308) |
Distribution from equity investee | 5,800 | 4,621 |
Loss on retirements of long-lived assets, non-cash | 381 | 1,162 |
Other, net | (126) | (517) |
Changes in operating assets and liabilities: | ||
Receivables, net | (43,534) | (67,048) |
Prepaid expenses and other assets | (14,668) | (18,803) |
Accounts payable and other liabilities | 1,575 | (2,601) |
Deferred income | 34,324 | 59,018 |
Income taxes | 7,120 | 3,150 |
Net cash provided by operating activities | 37,278 | 33,883 |
INVESTING ACTIVITIES | ||
Capital expenditures | (25,009) | (8,282) |
Distribution from equity investee | 382 | 629 |
Proceeds from sale of assets | 30 | 311 |
Acquisition of assets | 7,969 | 0 |
Other, net | (280) | 0 |
Net cash used in investing activities | (32,846) | (7,342) |
FINANCING ACTIVITIES | ||
Payment of long-term debt | (250) | (235) |
Exercise of Class A common stock options | 718 | |
Net cash provided by (used in) financing activities | (250) | 483 |
Net increase in cash and cash equivalents | 4,182 | 27,024 |
Cash and cash equivalents at beginning of period | 269,011 | 256,702 |
Cash and cash equivalents at end of period | $ 273,193 | $ 283,726 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Feb. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated interim financial statements have been prepared in compliance with Rule 10-01 of Regulation S-X and accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information but do not include all of the information and disclosures required for complete financial statements. The consolidated balance sheet at November 30, 2018 , has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The statements should be read in conjunction with the consolidated financial statements and notes thereto included in the latest Annual Report on Form 10-K for International Speedway Corporation and its wholly owned subsidiaries (the “Company” or “ISC”). In management’s opinion, the statements include all adjustments which are necessary for a fair presentation of the results for the interim periods. All such adjustments are of a normal recurring nature. Because of the seasonal concentration of racing events, the results of operations for the three months ended February 28, 2018 , and 2019 , are not indicative of the results to be expected for the year. RECENT DEVELOPMENT On November 9, 2018, NASCAR Holdings, Inc. ("NASCAR Holdings") submitted a non-binding proposal to acquire all of the Company's outstanding shares of Class A common stock and Class B common stock that are not owned by the controlling shareholders of NASCAR Holdings (the “Family Stockholders”), for a purchase price of $42.00 per share, in cash, for each such share of ISC Class A common stock and ISC Class B common stock (the "NASCAR Offer"). The NASCAR Offer stated that any transaction would be subject to (i) approval by a special committee ("Special Committee") of The Company's independent directors formed to review the NASCAR Offer and negotiate with NASCAR Holdings in connection therewith; and (ii) a vote in favor of the transaction by a majority of the voting power represented by the shares of the ISC Class A Common Stock and ISC Class B Common Stock held by non-Family Stockholders. Our Board of Directors has formed a Special Committee of independent directors to consider the NASCAR Offer. The Board of Directors has selected J. Hyatt Brown, Larry Aiello, Jr., Larree Renda and William Graves, to serve as the Special Committee. Mr. Brown, our lead independent director, chairs the Special Committee. The Special Committee has retained Dean Bradley Osborne Partners LLC to act as its financial advisor and Wachtell, Lipton, Rosen & Katz to act as its legal counsel to assist and advise it in connection with its evaluation of the NASCAR Offer. The NASCAR Offer provides that NASCAR Holdings reserves the right to withdraw or modify the NASCAR Offer at any time and no legally binding obligation with respect to any transaction will exist unless and until mutually acceptable definitive documentation is executed and delivered by the Company and NASCAR Holdings. There can be no assurance that the transaction proposed by NASCAR Holdings or any related transaction will be completed or as to the terms of any such potential transaction, including with respect to pricing or timing. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Feb. 28, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements On January 5, 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-01, Clarifying the Definition of a Business (ASC 805). Under ASC 805, a business is defined as having a set of assets along with 3 elements or activities—inputs, processes, and outputs. However, confusion occurs when a business does not always have outputs. In addition, all the inputs and processes that a seller uses in operating a set are not required if market participants can acquire the set and continue to produce outputs, for example, by integrating the acquired set with their own inputs and processes. As a result, this definition of a business under ASC 805 led some transactions to be accounted for as a business combination. The update has refined the definition of a business. Now, to be considered a business, an acquisition would have to include an input and a substantive process that together significantly contributes to the ability to create outputs. Public business entities should apply the amendments in this update to annual periods beginning after December 15, 2017, including interim periods within those periods. The amendments in this update were adopted in the first quarter of fiscal 2019. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The main objective of this update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For public business entities that are U.S. Securities and Exchange Commission (SEC) filers, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For all other public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this new guidance on its financial position, results of operations, statement of comprehensive income, and cash flows, and will adopt the provisions of this statement in the first quarter of fiscal 2020. In May 2014, the FASB, in conjunction with the International Accounting Standards Board ("IASB"), issued Accounting Standards update ("ASU") No. 2014-09, "Revenue from Contracts with Customers" (ASC 606), which supersedes the existing revenue recognition requirements under U.S. GAAP and eliminates industry-specific guidance. The new revenue recognition standard provides a five step analysis of transactions to determine when and how revenue is recognized. The new model requires revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The new guidance includes updated disclosure requirements regarding the qualitative and quantitative information of ISC’s nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. During 2016, the FASB issued additional interpretive guidance relating to the standard which covered the topics of principal versus agent considerations and identifying performance obligations and licensing. The standard, along with the subsequent clarifications issued, are effective for reporting periods beginning after December 15, 2017, including interim reporting periods, making it effective for our fiscal year beginning December 1, 2018. The guidance permits two methods of adoption: the full retrospective method, which applies to each prior reporting period presented, and the modified retrospective method, in which the cumulative effect of initially applying the new guidance is recognized as of the date of initial application as an adjustment to the opening balance of retained earnings. The Company has adopted ASC 606 and the related modifications as of December 1, 2018 using the modified retrospective transition and the impact of adopting this new guidance did not result in a material difference in its consolidated financial statements (see note 3). In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842): Leases". The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB is amending the FASB Accounting Standards Codification and creating Topic 842, Leases. This update, along with International Financial Reporting Standards 16, Leases, are the result of the FASB’s and the IASB’s efforts to meet that objective and improve financial reporting. For a public business entity, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of the amendments in this update is permitted for all entities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of adopting this new guidance on its financial position, results of operations, and cash flows, and will adopt the provisions of this statement in the first quarter of fiscal 2020. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments". The objective of this update is to provide specific guidance on eight cash flow classification issues and reduce the existing diversity in practice. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments in this update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company adopted the provisions of this statement in the first quarter of fiscal 2019 and the impact of adopting this new guidance did not result in a material difference in its consolidated statement of cash flows. In January 2017, the FASB issued ASU No. 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The objective of this update is to simplify the subsequent measurement of goodwill, eliminating Step 2 from the goodwill impairment test, which test is measuring goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill to the carrying amount of that goodwill. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity should apply the amendments in this update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. That disclosure should be provided in the first annual period and in the interim period within the first annual period when the entity initially adopts the amendments in this update. A public business entity that is a U.S. Securities and Exchange Commission ("SEC") filer should adopt the amendments in this update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of adopting this new guidance on its financial position, results of operations, and cash flows, and will adopt the provisions of this statement in the first quarter of fiscal 2021. In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin ("SAB") No. 118 (as further clarified by FASB ASU 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118)" to provide guidance for companies that may not have completed their accounting for the income tax effects of the Tax Cuts and Jobs Act of 2017 (Tax Act) in the period of enactment, which is the period that includes December 22, 2017. SAB No. 118 provides for a provisional one year measurement period for entities to finalize their accounting for certain income tax effects related to the Tax Act. SAB No. 118 provides guidance where: (i) the accounting for the income tax effect of the Tax Act is complete and reported in the Tax Act's enactment period, (ii) the accounting for the income tax effect of the Tax Act is incomplete and reported as provisional amounts based on reasonable estimates (to the extent determinable) subject to adjustments during a limited measurement period until complete, and (iii) accounting for the income tax effect of the Tax Act is not reasonably estimable (no related provisional amounts are reported in the enactment period) and entities would continue to apply accounting based on tax law provisions in effect prior to the Tax Act enactment until provisional amounts are reasonably estimable. SAB No. 118 requires disclosure of the reasons for incomplete accounting additional information or analysis needed, among other relevant information. The Company finalized its provisional amounts in the fourth quarter of fiscal 2018 (see Note 11 - Income Taxes). In February 2018, the FASB issued ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income". The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this update also require certain disclosures about stranded tax effects. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption of the amendments in this update is permitted, including adoption in any interim period: (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. The Company is currently evaluating the impact of adopting this new guidance on its financial position, results of operations, statement of comprehensive income, and cash flows, and will adopt the provisions of this statement in the first quarter of fiscal 2020. |
Revenues with Customers
Revenues with Customers | 3 Months Ended |
Feb. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues with Customer | Revenues with Customers The Company has applied the provisions of ASC 606 and all related appropriate guidance based on the modified retrospective method, which was applied only to the contracts which are not completed as of the date of initial application. As per the new guidance, the Company recognizes revenue under the core principle to depict the transfer of control to its customers in an amount reflecting the consideration to which it expects to be entitled. In order to achieve that core principle, the Company has applied the following five-step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The Company’s contracts with customers provide for multiple promised goods and services, including admissions, food, beverage and merchandise, corporate partnerships, television broadcast and radio programming content. The Company typically analyzes the contract and identifies the performance obligations by evaluating whether the promised goods and services are capable of being distinct within the context of the contract at contract inception. Promised goods and services that are not distinct at contract inception are combined. The next step after identifying the performance obligations is determining the transaction price, which includes the impact of variable consideration, based on contractually fixed amounts and an estimation of variable consideration. The Company allocates the transaction price to each performance obligation based on relative stand-alone selling price. Judgment is exercised to determine the stand-alone selling price of each distinct performance obligation. The Company estimates the standalone selling price by reference to the total transaction price less the sum of the observable stand-alone selling prices of other goods or services promised in the contract. In general, transaction price is determined by estimating the fixed amount of consideration to which we are entitled for transfer of goods and services and all relevant sources and components of variable consideration. Variable consideration is estimated by the Company based on the expected value approach. The Company will then estimate variable consideration for a particular type of performance obligation, such method is consistently applied. The Company will constrain estimates of variable consideration based on its expectation of recovery from the customer. Revenues are generally recognized when control of the promised goods or services is transferred to their customers either at a point in time or over time, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. Most of the Company’s contracts have one performance obligation, the promotion of a unique motorsport event, and all consideration is allocated to that performance obligation and recognized at a point in time contemporaneous with the date of the event. For advertising, revenue is recognized when the advertisement is broadcasted and the customer simultaneously receives and consumes benefits as the advertisements are broadcasted. The Company may enter into multiple contracts with a single counter party at or near the same time. The Company will combine contracts and account for them as a single contract when one or more of the following criteria are met: (i) the contracts are negotiated as a package with a single commercial objective, (ii) consideration to be paid in one contract depends on the price or performance of the other contract, and (iii) goods or services promised are a single performance obligation. Under ASC 606, the transaction price of a non-monetary exchange that has commercial substance is based on the fair value of the non-cash consideration received. Under ASC 606, consideration payable to a customer includes cash amounts that an entity pays, or expects to pay, to the customer. Consideration payable to a customer also includes credit or other items that can be applied against amounts owed to the entity. The Company accounts for consideration payable to a customer as a reduction of the transaction price and, therefore, of revenue unless the payment to the customer is in exchange for a distinct good or service that the customer transfers to the entity. The Company may have contracts where there is a significant timing difference between payment and the time when control of the goods or services is transferred to the customer. The Company has adopted the practical expedient and does not adjust for the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Nature of Goods and Services The following is a description of principal activities from which the Company generates its revenue: Event-related revenue The Company’s business consists principally of promoting racing events at its major motorsports entertainment facilities. The Company derives revenues primarily from (i) admissions to motorsports events and motorsports themed amusement activities held at our facilities, (ii) revenue generated in conjunction with or as a result of motorsports events and motorsports themed amusement activities conducted at our facilities, and (iii) catering, concession and merchandising services during or as a result of these events and amusement activities. “Admissions” revenue includes ticket sales for all of our racing events and other motorsports activities and amusements, net of any applicable taxes. Advance ticket sales and event-related revenues for future events are deferred until earned, which is generally once the events are conducted. “Motorsports and other event related” revenue primarily includes television and ancillary media rights fees, promotion and sponsorship fees, royalties from licenses of our trademarks, fees paid by third party promoters for management of non-motorsport events, hospitality rentals (including luxury suites, chalets and the hospitality portion of club seating), advertising revenues, parking and camping revenues, track rental fees, syndication of numerous racing events, and programs through our own radio network, MRN. “Food, beverage and merchandise” revenue includes revenues from concession stands, direct sales of souvenirs, hospitality catering, programs and other merchandise, and fees paid by third party vendors for the right to occupy space to sell souvenirs and concessions at our motorsports entertainment facilities. The delivery of MRN services is recognized utilizing the output method and the measure of progress is when the advertisements are aired over the MRN network. The delivery of all other event related services mentioned above are not considered as a separate performance obligation because our customers cannot receive the relevant benefits unless we also fulfill our obligation to deliver the event. Event related revenue is recognized on an event by event basis based on the fees allocated to the performance obligation within the underlying contractual arrangement. Other revenue Other revenue primarily includes revenues derived from leasing commercial space in our office and retail operations, including those at ONE DAYTONA and the Shoppes at ONE DAYTONA. Disaggregation of revenue In the following table, revenue is disaggregated by product line and timing of transfer of products and services. The table is in line with our reportable segments (see Note 14 - Segment Reporting). Three Months Ended February 28, 2018 February 28, 2019 Admissions $ 30,562 $ 29,334 NASCAR Broadcasting 64,693 67,384 Corporate Sales and Other Event Related 41,093 39,257 Food, Beverage and Merchandise 7,950 9,252 Other 4,577 5,324 Total Revenues $ 148,875 $ 150,551 Contract Balances The Company’s rights to consideration for work completed, but not billed at the reporting date, is classified as a receivable, as it has an unconditional right to payment or only conditional for the passage of time. The Company has no recorded contract assets as of February 28, 2019 . Consideration received in advance from customers is recorded as a contract liability, if a contract exists under ASC 606, until services are delivered or obligations are met and revenue is earned. Contract liability represents the excess of amounts invoiced over amounts recognized as revenues. Contract liabilities to be recognized in the succeeding twelve-month period are classified as current contract liabilities and the remaining amounts, if any, are classified as non-current contract liabilities. Contract liabilities are predominately related to motorsports and other event related revenues, and to a lesser extent, Admissions and Food, Beverage and Merchandise revenues. Contract liabilities of approximately $70.3 million and $7.4 million are included in current and long-term deferred revenues, respectively, on the Consolidated Balance Sheets as of February 28, 2019 . For the period ended February 28, 2019 , we recognized revenue associated with contract liabilities of approximately $25.7 million that were included in the contract liabilities balance at the beginning of the period. Significant changes in the contract liabilities balances during the period are discussed below. Transaction price allocated to the remaining performance obligations The Company applies the optional exemptions and does not disclose: a) information about remaining performance obligations that have an original expected duration of one year or less or b) transaction price allocated to unsatisfied performance obligations for which variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with the series guidance. The typical duration of all event related and other contracts is one year or less and, as a result, the Company applies the optional exemptions and does not disclose information about remaining performance obligations that have an original expected duration of one year or less. The Company has also elected to not disclose transaction price allocated to unsatisfied performance obligations for which variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service for event related promises for those contracts that contain percentage of the sales. The fees are variable for this type of contract, and the uncertainty related to the final fee, is resolved within the current year. Changes in Accounting Policies The Company adopted ASC 606 with an initial application as of the first quarter of fiscal year 2019, using the Modified Retrospective transition method, and applied ASC 606 to contracts with customers that were not completed as of the date of initial application. Comparative information has not been adjusted as the application of ASC 606 resulted in similar reportable activity as under ASC 605, "Revenue Recognition - Multiple-Deliverable Revenue Arrangements", except for that disclosed below. Unbilled Income and Deferred Income Recognition for Sponsorship Agreements The Company previously recognized a receivable for unbilled revenue and a liability in deferred income for an amount equal to the remaining performance obligation at any reporting period. Under ASC 606, the Company will recognize a receivable and a contract liability prior to performance by either party, only if the entity has an unconditional right to payment. The Company has determined it does not have an unconditional right to receive unbilled revenue for remaining performance obligations. Accordingly, the Company will net the amount of unbilled revenue and associated deferred income at any reporting date. Impact on the Consolidated Balance Sheet as of February 28, 2019 : Balance sheet accounts impacted by changes in accounting policies: As reported Adjustments Balances without adoption of ASC 606 Trade Receivables 86,367 17,723 104,090 Impact of Total Assets 86,367 17,723 104,090 Contract liability 70,284 17,624 87,908 Other Liabilities 14,318 99 14,417 Impact of Total Liabilities and Stockholders’ equity 84,602 17,723 102,325 There was no impact on the Consolidated Statement of Comprehensive Income. Impact on the Consolidated Statement of Cash Flows for the three months ended February 28, 2019 : Cash flow items impacted by changes in accounting policies: As reported Adjustments Balances without adoption of ASC 606 Operating activities Adjustments to reconcile net income to net cash (used in) provided by operating activities: Receivables, net (43,534 ) (17,723 ) (61,257 ) Accounts payable and other liabilities 1,575 99 1,674 Deferred income 34,324 17,624 51,948 Impact of net adjustments to cash (used in) provided by operating activities (7,635 ) — (7,635 ) |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Feb. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated using the Company's weighted-average outstanding common shares. Diluted earnings per share is calculated using the Company's weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. In periods when the Company recognizes a net loss, it excludes the impact of outstanding stock awards from the diluted loss per share calculation as their inclusion would have an anti-dilutive effect. The following table sets forth the computation of basic and diluted earnings per share for the three months ended February 28, 2018 and 2019 , respectively (in thousands, except share and per share amounts): Three Months Ended February 28, 2018 February 28, 2019 Numerator: Net income $ 169,347 $ 21,555 Denominator: Weighted average shares outstanding 44,196,489 43,420,992 Effect of dilutive securities 13,613 6,263 Diluted weighted average shares outstanding 44,210,102 43,427,255 Basic and diluted earnings per share $ 3.83 $ 0.50 Anti-dilutive shares excluded in the computation of diluted earnings per share 54,490 18,792 |
Equity and Other Investments
Equity and Other Investments | 3 Months Ended |
Feb. 28, 2019 | |
Equity [Abstract] | |
Equity and Other Investments | Equity and Other Investments Hollywood Casino at Kansas Speedway Kansas Entertainment, LLC, (“Kansas Entertainment”) a 50 /50 joint venture of Penn Hollywood Kansas, Inc. (“Penn”), a subsidiary of Penn National Gaming, Inc., and Kansas Speedway Development Corporation (“KSDC”), a wholly owned indirect subsidiary of ISC, operates the Hollywood-themed casino and branded destination entertainment facility overlooking turn two at Kansas Speedway. Penn, as the managing member of Kansas Entertainment, is responsible for the operations of the casino. The Company has accounted for Kansas Entertainment as an equity investment in the consolidated financial statements as of February 28, 2018 and 2019 . The Company's 50.0 percent portion of Kansas Entertainment’s net income, which is before income taxes as the joint venture is a disregarded entity for income tax purposes, was approximately $4.3 million and $5.5 million for the three months ended February 28, 2018 and 2019 , respectively, and is included in Equity in net income from equity investments in the Consolidated Statements of Operations. Pre-tax cash distributions from Kansas Entertainment for the three months ended February 28, 2018 and 2019 , are recognized on the Company's Consolidated Statement of Cash Flows as follows (in thousands): Three Months Ended February 28, 2018 February 28, 2019 Distribution from profits $ 4,621 $ 5,800 Distribution in excess of profits 629 350 Total Distributions $ 5,250 $ 6,150 Fairfield Inn Hotel at ONE DAYTONA Daytona Hotel Two, LLC ("Fairfield"), a joint venture of Daytona Hospitality Group II, LLC ("DHGII"), a subsidiary of Prime-Shaner Groups, and Daytona Beach Property Holdings Retail, LLC ("DBR"), a wholly owned indirect subsidiary of ISC, was formed to own, construct and operate a Fairfield Inn hotel. The hotel is situated within the ONE DAYTONA development. In June 2016, DBR contributed land to the joint venture as per the agreement. Construction of the hotel was completed and operations commenced in December 2017. DHGII is the managing member of Fairfield. DHGII was responsible for the development of Fairfield and manages ongoing operations of the hotel. As per the partnership agreement, our 33.25 percent share of equity will be limited to the Company's non-cash land contribution and it will share in the profits from the joint venture proportionately to its equity ownership. The Company has accounted for the joint venture in Fairfield as an equity investment in its consolidated financial statements as of February 28, 2019 . The Company's 33.25 percent portion of Fairfield’s net income is before income taxes as the joint venture is a disregarded entity for income tax purposes. For the three months ended February 28, 2019 , the equity investment had losses in excess of its carrying value of approximately $0.2 million . The Company will resume application of the equity method only after its share of unrecognized net income equals the share of net losses not recognized during the period the equity method was suspended. For the three months ended February 28, 2018 , the Company's share of net income was less than $0.1 million , and is included in net income from equity investments in the Company's Consolidated Statements of Operations. Pre-tax cash distributions from Fairfield for the three months ended February 28, 2019 , totaled approximately $33.0 thousand . There were no distributions for the three months ended February 28, 2018 . The DAYTONA Marriott Autograph Collection Hotel at ONE DAYTONA Daytona Hotel One, LLC ("The DAYTONA"), a joint venture of Daytona Hospitality Group, LLC ("DHG"), a subsidiary of Prime-Shaner Groups, and DBR, was formed to own, construct and operate The DAYTONA. The hotel is situated within the ONE DAYTONA development. In June 2017, DBR contributed land to the joint venture as per the agreement and vertical construction of the hotel has commenced and is expected to open in April 2019. DHG is the managing member of The DAYTONA. DHG is responsible for the development of The DAYTONA and will manage the operations of the hotel. As per the partnership agreement, our 34.0 percent share of equity will be limited to the Company's non-cash land contribution and it will share in the profits from the joint venture proportionately to its equity ownership. The Company has accounted for the joint venture in The DAYTONA as an equity investment in the Company's consolidated financial statements as of February 28, 2019 . The Company's 34.0 percent portion of The DAYTONA’s net loss, which is before income taxes as the joint venture is a disregarded entity for income tax purposes, primarily consists of de minimis administrative costs for the three months ended February 28, 2018 and 2019 , respectively, and is included in net income from equity investments in the Company's Consolidated Statements of Operations. Residential Project at ONE DAYTONA Daytona Apartment Holdings, LLC, a joint venture of Daytona Residential Group, LLC, a subsidiary of Prime Group, and DBR, was formed to own, construct, and operate the residential component of the ONE DAYTONA project. The joint venture is structured similarly to the Fairfield and The DAYTONA joint ventures, where the Company's share of equity will be limited to the Company's non-cash land contribution and it will share in the profits from the joint venture proportionately to its equity ownership. As of February 28, 2019 , no contributions have been made towards the residential project at ONE DAYTONA. In March 2019, the Company's land contribution of approximately $3.7 million towards the residential component was finalized. As per the partnership agreement, the Company's 31.0 percent share of equity will be limited to its non-cash land contribution and it will share in the profits from the joint venture proportionately to its equity ownership, which is before income taxes as the joint venture is a disregarded entity for income tax purposes. Other Investments A Community Development District ("CDD") has been established for the purpose of installing and maintaining public infrastructure at ONE DAYTONA (see "Future Liquidity - ONE DAYTONA"). The CDD is a local, special purpose government framework authorized by Chapter 190 of the Florida Statutes for managing and financing infrastructure to support community development. The CDD has negotiated agreements with the City of Daytona Beach and Volusia County for a total of up to $40.0 million in incentives to finance a portion of the infrastructure required for the ONE DAYTONA project. In October 2018, the CDD purchased certain infrastructure assets and specific easement rights from ONE DAYTONA. ONE DAYTONA received approximately $20.0 million of the total incentive amount in cash, with $10.5 million to be received in annual payments derived from a long-term note receivable issued by the CDD. The first payment of the note receivable is expected in fiscal 2019 with maturity no later than fiscal 2046. As of February 28, 2019 , no payments have been received. The remainder of the incentives can be received based on certain criteria met by the project through fiscal 2046. The ISC Board of Directors approved the purchase of certain assets, including trademarks and certain other intellectual property, from Racing Electronics and certain other assets required to support the business services of Racing Electronics. The asset acquisitions were completed in January 2019 for a total cost of approximately $8.2 million in cash. The acquisition meets the criteria of a business combination in accordance with ASC 805, "Business Combinations" The following table summarizes the Company's preliminary purchase price allocation based on the fair values of the assets acquired (in thousands): As of January 4, 2019 Inventory $ 2,340 Property and equipment 4,097 Trade names and trademarks 1,010 Track access rights 260 Goodwill 541 Purchase price consideration $ 8,248 Acquisition accounting and valuation processes with respect to inventory (included in prepaid expenses and other current assets in the Consolidated Balance Sheets), property and equipment, intangible assets, and goodwill, related to the acquisition completed, are preliminary and subject to adjustments within the required one year period. The preliminary track access rights will be amortized over thirty years . The trade names and trademarks is an indefinite-lived intangible asset and is not amortized. The results of operations of Racing Electronics are included in the Company's unaudited condensed consolidated statements of operations subsequent to the closing date of the acquisition and included in the Motorsports Event segment. For the three months ended February 28, 2019 , net revenues and operating loss generated from the acquisition were approximately $1.9 million and $0.2 million , respectively, which includes approximately $0.2 million of non-recurring, non-capitalizable acquisition costs, recognized as an expense in general and administrative costs on the Consolidated Statement of Operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Feb. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The gross carrying value, accumulated amortization and net carrying value of the major classes of intangible assets relating to the Motorsports Event segment are as follows (in thousands): November 30, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets: Other 120 100 20 Total amortized intangible assets 120 100 20 Non-amortized intangible assets: NASCAR — sanction agreements 177,813 — 177,813 Other 730 — 730 Total non-amortized intangible assets 178,543 — 178,543 Total intangible assets $ 178,663 $ 100 $ 178,563 February 28, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets: Other 288 9 279 Total amortized intangible assets 288 9 279 Non-amortized intangible assets: NASCAR — sanction agreements 177,813 — 177,813 Other 1,740 — 1,740 Total non-amortized intangible assets 179,553 — 179,553 Total intangible assets $ 179,841 $ 9 $ 179,832 The increase of approximately $1.0 million in the net carrying amount of non-amortized intangible assets and $0.3 million in net carrying amount of amortized intangible assets, for the three months ended February 28, 2019 , as compared to the fiscal year ended November 30, 2018 , is primarily due to the acquisition of certain assets, including trademarks and other intellectual property from Racing Electronics. The following table presents current and expected amortization expense of the existing intangible assets for each of the following periods (in thousands): Amortization expense for the three months ended February 28, 2019 $ 1 Remaining estimated amortization expense for the year ending November 30: 2019 $ 9 2020 10 2021 10 2022 11 2023 and thereafter 239 The increase of approximately $0.5 million in the carrying value of goodwill during the three months ended February 28, 2019 , relates to the acquisition of certain assets from Racing Electronics. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Feb. 28, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following (in thousands): November 30, 2018 February 28, 2019 Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs 4.63 percent Senior Notes $ 65,000 $ (108 ) $ 65,000 $ (96 ) 3.95 percent Senior Notes 100,000 (244 ) 100,000 (233 ) 6.25 percent Term Loan 46,014 — 45,764 — TIF bond debt service funding commitment 46,291 (1,288 ) 46,304 (1,251 ) Revolving Credit Facility — — — — 257,305 (1,640 ) 257,068 (1,580 ) Less: current portion 4,521 (237 ) 4,639 (237 ) $ 252,784 $ (1,403 ) $ 252,429 $ (1,343 ) The Company's $65.0 million principal amount of senior unsecured notes (“ 4.63 percent Senior Notes”) bear interest at 4.63 percent and are due January 2021. The 4.63 percent Senior Notes require semi-annual interest payments on January 18 and July 18 through their maturity. The 4.63 percent Senior Notes may be redeemed in whole or in part, at the Company’s option, at any time or from time to time at redemption prices as defined in the indenture. Certain of the Company’s wholly owned domestic subsidiaries are guarantors of the 4.63 percent Senior Notes. Certain restrictive covenants of the 4.63 percent Senior Notes require that the Company's ratio of its Consolidated Funded Indebtedness to its Consolidated EBITDA ("leverage ratio") does not exceed 3.50 to 1.0, and its Consolidated EBITDA to Consolidated Interest Expense ("interest coverage ratio") is not less than 2.0 to 1.0. In addition, the Company may not permit the aggregate of certain Priority Debt to exceed 15.0 percent of its Consolidated Net Worth. The 4.63 percent Senior Notes contain various other affirmative and negative restrictive covenants including, among others, limitations on liens, sales of assets, mergers and consolidations and certain transactions with affiliates. As of February 28, 2019 , the Company was in compliance with its various restrictive covenants. At February 28, 2019 , outstanding principal on the 4.63 percent Senior Notes was approximately $65.0 million . The Company's $100.0 million principal amount of senior unsecured notes (“ 3.95 percent Senior Notes”) bear interest at 3.95 percent and are due September 2024. The 3.95 percent Senior Notes require semi-annual interest payments on March 13 and September 13 through their maturity. The 3.95 percent Senior Notes may be redeemed in whole or in part, at the Company's option, at any time or from time to time at redemption prices as defined in the indenture. Certain of the Company's wholly owned domestic subsidiaries are guarantors of the 3.95 percent Senior Notes. Certain restrictive covenants of the 3.95 percent Senior Notes require that the Company's leverage ratio does not exceed 3.50 to 1.0, and its interest coverage ratio is not less than 2.0 to 1.0. In addition, the Company may not permit the aggregate of certain Priority Debt to exceed 15.0 percent of its Consolidated Net Worth. The 3.95 percent Senior Notes contain various other affirmative and negative restrictive covenants including, among others, limitations on liens, sales of assets, mergers and consolidations and certain transactions with affiliates. As of February 28, 2019 , the Company was in compliance with its various restrictive covenants. At February 28, 2019 , outstanding principal on the 3.95 percent Senior Notes was approximately $100.0 million . The term loan (“ 6.25 percent Term Loan”), related to the Company’s International Motorsports Center, has a 25 year term due October 2034, an interest rate of 6.25 percent , and a current monthly payment of approximately $323,000 . At February 28, 2019 , the outstanding principal on the 6.25 percent Term Loan was approximately $45.8 million . At February 28, 2019 , the outstanding taxable special obligation revenue (“TIF”) bond, in connection with the financing of Kansas Speedway, totaled approximately $46.3 million , net of the unamortized discount, which is comprised of a $46.6 million principal amount, 6.75 percent term bond due December 1, 2027 . The TIF bond is repaid by the Unified Government of Wyandotte County/Kansas City, Kansas (“Unified Government”) with payments made in lieu of property taxes (“Funding Commitment”) by the Company’s wholly owned subsidiary, Kansas Speedway Corporation (“KSC”). Principal (mandatory redemption) payments per the Funding Commitment are payable by KSC on October 1 of each year. The semi-annual interest component of the Funding Commitment is payable on April 1 and October 1 of each year. KSC granted a mortgage and security interest in the Kansas project for its Funding Commitment obligation. The Company's $300.0 million revolving credit facility (“2016 Credit Facility”) contains a feature that allows the Company to increase the credit facility to a total of $500.0 million , subject to certain conditions and provides for separate sub-limits of $25.0 million for standby letters of credit and $10.0 million for swing line loans. The 2016 Credit Facility is scheduled to mature five years from the date of inception, with two 1 -year extension options, extending the maturity to September 2023. Interest accrues, at the Company's option, at either LIBOR plus 100.0 — 162.5 basis points or a base rate loan at the highest of: i) Wells Fargo Bank's prime lending rate, ii) the Federal Funds rate, as in effect from time to time, plus 0.5 percent , and iii) one month LIBOR plus 1.0 percent . The 2016 Credit Facility also contains a commitment fee ranging from 0.125 percent to 0.225 percent of unused amounts available for borrowing. The interest rate margin on the LIBOR borrowings and commitment fee are variable depending on the better of the Company's debt rating as determined by specified rating agencies or its leverage ratio. Certain of the Company's wholly owned domestic subsidiaries are guarantors on the 2016 Credit Facility. The 2016 Credit Facility requires that the Company's leverage ratio does not exceed 3.50 to 1.0 ( 4.0 to 1.0 for the four quarters ending after any Permitted Acquisition), and its interest coverage ratio is not less than 2.5 to 1.0. The 2016 Credit Facility also contains various other affirmative and negative restrictive covenants including, among others, limitations on indebtedness, investments, sales of assets, certain transactions with affiliates, entering into certain restrictive agreements and making certain restricted payments as detailed in the agreement. As of February 28, 2019 , the Company was in compliance with its various restrictive covenants. At February 28, 2019 , the Company had no outstanding borrowings under its credit facility. Financing costs related to the credit facility, net of accumulated amortization, of approximately $1.3 million , have been deferred and are included in other assets as of February 28, 2019 . Financing costs are being amortized on a straight-line method, which approximates the effective yield method, over the life of the related financing. At November 30, 2018 and February 28, 2019 , the Company recorded deferred financing costs of approximately $3.0 million and $2.9 million , respectively, net of accumulated amortization. Total interest expense incurred by the Company for the three months ended February 28, 2018 and 2019 , respectively, is as follows (in thousands): Three Months Ended February 28, 2018 February 28, 2019 Interest expense $ 3,852 $ 3,785 Less: capitalized interest 967 63 Net interest expense $ 2,885 $ 3,722 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Feb. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments In accordance with the “Financial Instruments” Topic, ASC 825-10, and in accordance with the “Fair Value Measurements and Disclosures” Topic, ASC 820-10, additional clarification and disclosure is required about the use of fair value measurements. These topics discuss key considerations in determining fair value in such markets and expanding disclosures on recurring fair value measurements, using unobservable inputs (Level 3). Various inputs are considered when determining the carrying values of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities. These items approximate fair value due to the short-term maturities of these assets and liabilities. The Company's note receivable is a variable-based financial instrument and, therefore, its carrying value approximates its fair value. The Company’s credit facilities approximate fair value as they bear interest rates that approximate market. Fair values of long-term debt are based on quoted market prices at the date of measurement and determined by quotes from financial institutions. There have been no changes or transfers between category levels or classes. These inputs are summarized in the three broad levels and two classes listed below: • Level 1 — observable market inputs that are unadjusted quoted prices for identical assets or liabilities in active markets • Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.) • Level 3 — significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments) • Recurring (R) - measured at fair value on recurring basis, subsequent to initial recognition. • Non-recurring (NR) - measured at fair value on nonrecurring basis, subsequent to initial recognition. The following table presents estimated fair values and categorization levels of the Company's financial instruments as of November 30, 2018 and February 28, 2019 , respectively (in thousands): November 30, 2018 February 28, 2019 Assets Level Class Carrying Value Fair Value Carrying Value Fair Value Money market funds 1 R $ 219,229 $ 219,229 $ 230,740 $ 230,740 Note Receivable 2 R 10,500 10,500 10,500 10,500 Liabilities (principal) Senior Notes 2 NR 257,305 260,778 257,056 263,225 The Company had no level 3 inputs as of February 28, 2019 . |
Capital Stock
Capital Stock | 3 Months Ended |
Feb. 28, 2019 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Stock Purchase Plan The Company has a share repurchase program (“Stock Purchase Plan”), under which it is authorized to purchase up to $530.0 million of its outstanding Class A common shares. The timing and amount of any shares repurchased under the Stock Purchase Plan will depend on a variety of factors, including price, corporate and regulatory requirements, capital availability and other market conditions. The Stock Purchase Plan may be suspended or discontinued at any time without prior notice. The Company terminated the active 10b5-1 plans upon receipt of the aforementioned NASCAR Offer (see Note 1). No shares have been or will be knowingly purchased from Company insiders or their affiliates. Since inception of the Stock Purchase Plan, through February 28, 2019 , the Company has purchased 10,566,002 shares of its Class A common shares, for a total of approximately $391.3 million . The Company did not purchase any shares of its Class A common shares during the three months ended February 28, 2019 . At February 28, 2019 , the Company had approximately $138.7 million remaining repurchase authority under the current Stock Purchase Plan. |
Comprehensive Income
Comprehensive Income | 3 Months Ended |
Feb. 28, 2019 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income | Comprehensive Income Comprehensive income is the change in equity of an enterprise except those resulting from shareholder transactions. Accumulated other comprehensive loss consists of the following (in thousands): November 30, 2018 February 28, 2019 Terminated interest rate swap, net of tax benefit of $1,050 and $983, respectively $ (1,204 ) $ (1,000 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Feb. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, new tax legislation, commonly referred to as the Tax Cuts and Jobs Act of 2017, was enacted, which significantly changed the existing U.S. tax laws. The Tax Act reduced the corporate Federal income tax rate from 35.0 percent to 21.0 percent, eliminated the corporate alternative minimum tax, allowed 100.0 percent expensing of certain qualified capital investments through 2022 (retroactive to September 27, 2017), and further limited the deductibility of certain executive compensation, among other provisions. Under current accounting guidance, the Company recognized the effects of the Tax Act as of the enactment date. During the first quarter of fiscal 2018, as a result of the Tax Act, the Company incurred a material, non-cash reduction of our deferred income tax liabilities and a corresponding material income tax benefit of approximately $143.9 million primarily due to the Federal income tax rate reduction from 35.0 percent to 21.0 percent. The Company's effective income tax rate was approximately 24.5 percent for the three months ended February 28, 2019 , and approximately (391.5) percent for the three months ended February 28, 2018 . The increase in the effective income tax rate for the three months ended February 28, 2019 , as compared to the same period in the prior year, is substantially due to the material income tax benefit and income tax rate reduction associated with the Tax Act, including the aforementioned reduction in deferred income tax liability, in the first quarter of fiscal 2018. In March 2018, the Company was notified that its 2014 federal income tax return is under examination by the Internal Revenue Service. |
Related Party Disclosures and T
Related Party Disclosures and Transactions | 3 Months Ended |
Feb. 28, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Disclosures and Transactions | Related Party Disclosures and Transactions All of the racing events that take place during the Company’s fiscal year are sanctioned by various racing organizations such as National Association for Stock Car Auto Racing (“NASCAR”), the American Historic Racing Motorcycle Association, the American Motorcyclist Association, the Automobile Racing Club of America ("ARCA"), the American Sportbike Racing Association — Championship Cup Series, the Federation Internationale de L’Automobile, the Federation Internationale Motocycliste, International Motor Sports Association (“IMSA”) - a wholly owned subsidiary of NASCAR, Historic Sportscar Racing, IndyCar Series, National Hot Rod Association, the Porsche Club of America, the Sports Car Club of America, the Sportscar Vintage Racing Association, the United States Auto Club and the World Karting Association. NASCAR and IMSA, which sanction many of the Company’s principal racing events, are members of the France Family Group, which controls approximately 74.7 percent of the combined voting power of the outstanding stock of the Company as of February 28, 2019 , and some members of which serve as directors and officers of the Company. Under current agreements, NASCAR contracts directly with certain network providers for television rights to the entire Monster Energy NASCAR Cup, Xfinity and Gander Outdoors Truck series schedules. Under the terms of this arrangement, NASCAR retains 10.0 percent of the gross broadcast rights fees allocated to each Monster Energy NASCAR Cup, Xfinity and Gander Outdoors Truck series event as a component of its sanction fees. The Company, as the promoter, records 90.0 percent of the gross broadcast rights fees as revenue and then records 25.0 percent of the gross broadcast rights fees as part of its awards to the competitors, included in NASCAR event management fees (discussed below). Ultimately, the promoter retains 65.0 percent of the net cash proceeds from the gross broadcast rights fees allocated to the event. The Company’s television broadcast and ancillary rights fees received from NASCAR for the Monster Energy NASCAR Cup, Xfinity, and Gander Outdoors Truck series events conducted at its wholly owned facilities, and recorded as part of motorsports related revenue, were approximately $65.1 million and $68.0 million for the three months ended February 28, 2018 and 2019 , respectively. The Company recorded prize money of approximately $18.1 million and $18.8 million for the three months ended February 28, 2018 and 2019 , respectively, included in NASCAR event management fees (discussed below) related to the aforementioned 25.0 percent of gross broadcast rights fees ultimately paid to competitors. Standard NASCAR and IMSA sanction agreements require racetrack operators to pay event management fees (collectively "NASCAR event management or NEM fees"), which include prize and point fund monies for each sanctioned event conducted, as well as fees paid to NASCAR for sanctioning and officiating of the events. The prize and point fund monies are distributed by NASCAR to participants in the events. Total NEM fees paid by the Company were approximately $29.9 million and $30.9 million for the three months ended February 28, 2018 and 2019 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Feb. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In October 2002, the Unified Government issued subordinate sales tax special obligation revenue bonds (“2002 STAR Bonds”) totaling approximately $6.3 million to reimburse the Company for certain construction already completed on the second phase of the Kansas Speedway project and to fund certain additional construction. The 2002 STAR Bonds, which require annual debt service payments and are due December 1, 2022 , will be retired with state and local taxes generated within Kansas Speedway’s boundaries and are not the Company’s obligation. KSC has agreed to guarantee the payment of principal and any required premium and interest on the 2002 STAR Bonds. At February 28, 2019 , the Unified Government had approximately $0.5 million outstanding on 2002 STAR Bonds. Under a keepwell agreement, the Company has agreed to provide financial assistance to KSC, if necessary, to support KSC’s guarantee of the 2002 STAR Bonds. In connection with the Company’s automobile and workers’ compensation insurance coverages and certain construction contracts, the Company has standby letter of credit agreements in favor of third parties totaling approximately $3.1 million at February 28, 2019 . At February 28, 2019 , there were no amounts drawn on the standby letters of credit. In September 2018, the Company announced a Comprehensive Ticket and Travel Protection Program that allows guests who purchase a grandstand ticket the ability to exchange tickets for a rescheduled NASCAR event at an ISC facility for a future NASCAR event within the ISC portfolio, certain restrictions apply. Should an event be rescheduled to a different date due to inclement weather, and a guest chooses to take advantage of ISC's Weather Protection Program, revenue related to that grandstand ticket would be deferred until earned, which is when the guest's selected event is conducted. At February 28, 2019 , there were no events rescheduled due to inclement weather that would require the deferral of revenues. Current Litigation The Company is from time to time a party to routine litigation incidental to its business. Management does not believe that the resolution of any or all of such litigation will have a material adverse effect on the Company’s financial condition or results of operations. Mergers, such as the one proposed in the NASCAR Offer, which the Company previously discussed the NASCAR Offer in its report on Form 10-K for the fiscal year ended November 30, 2018 , often attract litigation from minority shareholders. On December 14, 2018 a putative class-action shareholder lawsuit was filed in the Seventh Judicial Circuit of Volusia County, Florida by attorneys on behalf of the Firemen's Retirement System of St. Louis related to the NASCAR Offer. The complaint names as defendants: the Company, its directors, its CFO, NASCAR Holdings, and certain of the Family Stockholders, and alleges breach of fiduciary duty and for aiding and abetting those breaches. The Company currently maintains Directors & Officers Insurance. Applicable insurance policies contain certain customary limitations, conditions and exclusions and are subject to a self-insured retention amount. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Feb. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The general nature of the Company’s business is a motorsports themed amusement enterprise, furnishing amusement to the public in the form of motorsports themed entertainment. The Company’s motorsports event operations consist principally of racing events at its major motorsports entertainment facilities. The reporting units within the motorsports segment portfolio are reviewed together as the nature of the products and services, the production processes used, the type or class of customer using our products and services, and the methods used to distribute our products or provide their services are consistent in objectives and principles, and predominately uniform and centralized throughout the Company. The consolidated industry domestic media rights contract, which continues through the 2024 NASCAR season, continues to be the single-largest contributor to the Company's earnings. These media rights are allocated to specific events, are not facility based, and are derived through a corporate contract, which affects all of the motorsports event facilities within the motorsports event segment. Similarly, corporate sponsorship partnership revenue is primarily derived from corporate contracts, negotiated by the Company's corporate sales team, and allocated to multiple, or all, motorsports entertainment facilities depending on the specific arrangement. Thus, the disclosure of these revenue streams, as they relate to each reporting unit, is not practical. The Company’s remaining business units, which are comprised of the radio network production and syndication of numerous racing events and programs, non-motorsports events, certain souvenir merchandising operations not associated with the promotion of motorsports events at the Company’s facilities, construction management services, financing and licensing operations, equity investments and retail and commercial leasing operations are included in the “All Other” segment. The Company evaluates financial performance of the business units on operating profit after allocation of corporate general and administrative (“G&A”) expenses. Corporate G&A expenses are allocated to business units based on each business unit’s net revenues to total net revenues. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Intersegment sales are accounted for at prices comparable to unaffiliated customers. The following tables provide segment reporting of the Company for the three months ended February 28, 2018 and 2019 , respectively (in thousands): Three Months Ended February 28, 2018 Motorsports Event All Other Total Revenues $ 143,778 $ 5,462 $ 149,240 Depreciation and amortization 25,168 1,571 26,739 Operating income (loss) 34,421 (1,927 ) 32,494 Capital expenditures 3,735 4,547 8,282 Total assets 1,704,921 614,045 2,318,966 Equity investments — 85,257 85,257 Three Months Ended February 28, 2019 Motorsports Event All Other Total Revenues $ 144,933 $ 5,957 $ 150,890 Depreciation and amortization 27,392 1,867 29,259 Operating income (loss) 27,465 (1,936 ) 25,529 Capital expenditures 18,186 6,823 25,009 Total assets 1,704,374 603,758 2,308,132 Equity investments — 80,554 80,554 Intersegment revenues were approximately $0.4 million and $0.3 million for the three months ended February 28, 2018 and 2019 , respectively. During the three months ended February 28, 2019 , revenues in the Motorsports Event segment included approximately $1.9 million related to Racing Electronics, for which there was no comparable activity in the same period of the prior year. During the three months ended February 28, 2019 , revenues in the All Other segment have increased by approximately $0.5 million , as compared to the same period in the prior year. The increase in the current three month period is predominantly related to lease revenue from ONE DAYTONA, as new tenants opened during fiscal 2019. Capital expenditures related to the All Other segment increased approximately $2.3 million for the three months ended February 28, 2019 , as compared to the same period in the prior year. The increase is substantially related to the construction activity at The Shoppes at ONE DAYTONA. During the three months ended February 28, 2019 , the Company recognized $0.9 million , of accelerated depreciation, due to shortening the service lives of certain assets associated with the infield project at Talladega. During the three months ended February 28, 2018 , the Company recognized $0.9 million of accelerated depreciation due to shortening the service lives of certain assets, associated with The ISM Raceway Project and the infield project at Richmond. During the three months ended February 28, 2019 , the Company recognized $0.3 million , of asset retirement losses primarily attributable to demolition and/or asset relocation costs in connection with the infield project at Talladega. During the three months ended February 28, 2018 , the Company recognized $1.1 million of similar costs associated with ONE DAYTONA and capacity initiatives. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Feb. 28, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements On January 5, 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-01, Clarifying the Definition of a Business (ASC 805). Under ASC 805, a business is defined as having a set of assets along with 3 elements or activities—inputs, processes, and outputs. However, confusion occurs when a business does not always have outputs. In addition, all the inputs and processes that a seller uses in operating a set are not required if market participants can acquire the set and continue to produce outputs, for example, by integrating the acquired set with their own inputs and processes. As a result, this definition of a business under ASC 805 led some transactions to be accounted for as a business combination. The update has refined the definition of a business. Now, to be considered a business, an acquisition would have to include an input and a substantive process that together significantly contributes to the ability to create outputs. Public business entities should apply the amendments in this update to annual periods beginning after December 15, 2017, including interim periods within those periods. The amendments in this update were adopted in the first quarter of fiscal 2019. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The main objective of this update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For public business entities that are U.S. Securities and Exchange Commission (SEC) filers, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For all other public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this new guidance on its financial position, results of operations, statement of comprehensive income, and cash flows, and will adopt the provisions of this statement in the first quarter of fiscal 2020. In May 2014, the FASB, in conjunction with the International Accounting Standards Board ("IASB"), issued Accounting Standards update ("ASU") No. 2014-09, "Revenue from Contracts with Customers" (ASC 606), which supersedes the existing revenue recognition requirements under U.S. GAAP and eliminates industry-specific guidance. The new revenue recognition standard provides a five step analysis of transactions to determine when and how revenue is recognized. The new model requires revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The new guidance includes updated disclosure requirements regarding the qualitative and quantitative information of ISC’s nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. During 2016, the FASB issued additional interpretive guidance relating to the standard which covered the topics of principal versus agent considerations and identifying performance obligations and licensing. The standard, along with the subsequent clarifications issued, are effective for reporting periods beginning after December 15, 2017, including interim reporting periods, making it effective for our fiscal year beginning December 1, 2018. The guidance permits two methods of adoption: the full retrospective method, which applies to each prior reporting period presented, and the modified retrospective method, in which the cumulative effect of initially applying the new guidance is recognized as of the date of initial application as an adjustment to the opening balance of retained earnings. The Company has adopted ASC 606 and the related modifications as of December 1, 2018 using the modified retrospective transition and the impact of adopting this new guidance did not result in a material difference in its consolidated financial statements (see note 3). In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842): Leases". The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB is amending the FASB Accounting Standards Codification and creating Topic 842, Leases. This update, along with International Financial Reporting Standards 16, Leases, are the result of the FASB’s and the IASB’s efforts to meet that objective and improve financial reporting. For a public business entity, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of the amendments in this update is permitted for all entities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of adopting this new guidance on its financial position, results of operations, and cash flows, and will adopt the provisions of this statement in the first quarter of fiscal 2020. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments". The objective of this update is to provide specific guidance on eight cash flow classification issues and reduce the existing diversity in practice. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments in this update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company adopted the provisions of this statement in the first quarter of fiscal 2019 and the impact of adopting this new guidance did not result in a material difference in its consolidated statement of cash flows. In January 2017, the FASB issued ASU No. 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The objective of this update is to simplify the subsequent measurement of goodwill, eliminating Step 2 from the goodwill impairment test, which test is measuring goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill to the carrying amount of that goodwill. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity should apply the amendments in this update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. That disclosure should be provided in the first annual period and in the interim period within the first annual period when the entity initially adopts the amendments in this update. A public business entity that is a U.S. Securities and Exchange Commission ("SEC") filer should adopt the amendments in this update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of adopting this new guidance on its financial position, results of operations, and cash flows, and will adopt the provisions of this statement in the first quarter of fiscal 2021. In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin ("SAB") No. 118 (as further clarified by FASB ASU 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118)" to provide guidance for companies that may not have completed their accounting for the income tax effects of the Tax Cuts and Jobs Act of 2017 (Tax Act) in the period of enactment, which is the period that includes December 22, 2017. SAB No. 118 provides for a provisional one year measurement period for entities to finalize their accounting for certain income tax effects related to the Tax Act. SAB No. 118 provides guidance where: (i) the accounting for the income tax effect of the Tax Act is complete and reported in the Tax Act's enactment period, (ii) the accounting for the income tax effect of the Tax Act is incomplete and reported as provisional amounts based on reasonable estimates (to the extent determinable) subject to adjustments during a limited measurement period until complete, and (iii) accounting for the income tax effect of the Tax Act is not reasonably estimable (no related provisional amounts are reported in the enactment period) and entities would continue to apply accounting based on tax law provisions in effect prior to the Tax Act enactment until provisional amounts are reasonably estimable. SAB No. 118 requires disclosure of the reasons for incomplete accounting additional information or analysis needed, among other relevant information. The Company finalized its provisional amounts in the fourth quarter of fiscal 2018 (see Note 11 - Income Taxes). In February 2018, the FASB issued ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income". The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this update also require certain disclosures about stranded tax effects. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption of the amendments in this update is permitted, including adoption in any interim period: (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. The Company is currently evaluating the impact of adopting this new guidance on its financial position, results of operations, statement of comprehensive income, and cash flows, and will adopt the provisions of this statement in the first quarter of fiscal 2020. |
Revenues with Customers (Tables
Revenues with Customers (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | In the following table, revenue is disaggregated by product line and timing of transfer of products and services. The table is in line with our reportable segments (see Note 14 - Segment Reporting). Three Months Ended February 28, 2018 February 28, 2019 Admissions $ 30,562 $ 29,334 NASCAR Broadcasting 64,693 67,384 Corporate Sales and Other Event Related 41,093 39,257 Food, Beverage and Merchandise 7,950 9,252 Other 4,577 5,324 Total Revenues $ 148,875 $ 150,551 |
Impact of Adopting ASC 606 on Financial Statements | Accordingly, the Company will net the amount of unbilled revenue and associated deferred income at any reporting date. Impact on the Consolidated Balance Sheet as of February 28, 2019 : Balance sheet accounts impacted by changes in accounting policies: As reported Adjustments Balances without adoption of ASC 606 Trade Receivables 86,367 17,723 104,090 Impact of Total Assets 86,367 17,723 104,090 Contract liability 70,284 17,624 87,908 Other Liabilities 14,318 99 14,417 Impact of Total Liabilities and Stockholders’ equity 84,602 17,723 102,325 There was no impact on the Consolidated Statement of Comprehensive Income. Impact on the Consolidated Statement of Cash Flows for the three months ended February 28, 2019 : Cash flow items impacted by changes in accounting policies: As reported Adjustments Balances without adoption of ASC 606 Operating activities Adjustments to reconcile net income to net cash (used in) provided by operating activities: Receivables, net (43,534 ) (17,723 ) (61,257 ) Accounts payable and other liabilities 1,575 99 1,674 Deferred income 34,324 17,624 51,948 Impact of net adjustments to cash (used in) provided by operating activities (7,635 ) — (7,635 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the three months ended February 28, 2018 and 2019 , respectively (in thousands, except share and per share amounts): Three Months Ended February 28, 2018 February 28, 2019 Numerator: Net income $ 169,347 $ 21,555 Denominator: Weighted average shares outstanding 44,196,489 43,420,992 Effect of dilutive securities 13,613 6,263 Diluted weighted average shares outstanding 44,210,102 43,427,255 Basic and diluted earnings per share $ 3.83 $ 0.50 Anti-dilutive shares excluded in the computation of diluted earnings per share 54,490 18,792 |
Equity and Other Investments Eq
Equity and Other Investments Equity and Other Investments (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Equity [Abstract] | |
Schedule of Distributions from Equity Method Investments | Pre-tax cash distributions from Kansas Entertainment for the three months ended February 28, 2018 and 2019 , are recognized on the Company's Consolidated Statement of Cash Flows as follows (in thousands): Three Months Ended February 28, 2018 February 28, 2019 Distribution from profits $ 4,621 $ 5,800 Distribution in excess of profits 629 350 Total Distributions $ 5,250 $ 6,150 |
Schedule of Preliminary Purchase Price Allocation | The following table summarizes the Company's preliminary purchase price allocation based on the fair values of the assets acquired (in thousands): As of January 4, 2019 Inventory $ 2,340 Property and equipment 4,097 Trade names and trademarks 1,010 Track access rights 260 Goodwill 541 Purchase price consideration $ 8,248 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The gross carrying value, accumulated amortization and net carrying value of the major classes of intangible assets relating to the Motorsports Event segment are as follows (in thousands): November 30, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets: Other 120 100 20 Total amortized intangible assets 120 100 20 Non-amortized intangible assets: NASCAR — sanction agreements 177,813 — 177,813 Other 730 — 730 Total non-amortized intangible assets 178,543 — 178,543 Total intangible assets $ 178,663 $ 100 $ 178,563 February 28, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets: Other 288 9 279 Total amortized intangible assets 288 9 279 Non-amortized intangible assets: NASCAR — sanction agreements 177,813 — 177,813 Other 1,740 — 1,740 Total non-amortized intangible assets 179,553 — 179,553 Total intangible assets $ 179,841 $ 9 $ 179,832 |
Current and Expected Amortization Expense of Intangible Assets | The following table presents current and expected amortization expense of the existing intangible assets for each of the following periods (in thousands): Amortization expense for the three months ended February 28, 2019 $ 1 Remaining estimated amortization expense for the year ending November 30: 2019 $ 9 2020 10 2021 10 2022 11 2023 and thereafter 239 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consists of the following (in thousands): November 30, 2018 February 28, 2019 Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs 4.63 percent Senior Notes $ 65,000 $ (108 ) $ 65,000 $ (96 ) 3.95 percent Senior Notes 100,000 (244 ) 100,000 (233 ) 6.25 percent Term Loan 46,014 — 45,764 — TIF bond debt service funding commitment 46,291 (1,288 ) 46,304 (1,251 ) Revolving Credit Facility — — — — 257,305 (1,640 ) 257,068 (1,580 ) Less: current portion 4,521 (237 ) 4,639 (237 ) $ 252,784 $ (1,403 ) $ 252,429 $ (1,343 ) |
Schedule of Interest Expense | Total interest expense incurred by the Company for the three months ended February 28, 2018 and 2019 , respectively, is as follows (in thousands): Three Months Ended February 28, 2018 February 28, 2019 Interest expense $ 3,852 $ 3,785 Less: capitalized interest 967 63 Net interest expense $ 2,885 $ 3,722 |
Financial Instruments Financial
Financial Instruments Financial Instruments (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Values and Categorization Levels of Financial Instruments, Assets and Liab | The following table presents estimated fair values and categorization levels of the Company's financial instruments as of November 30, 2018 and February 28, 2019 , respectively (in thousands): November 30, 2018 February 28, 2019 Assets Level Class Carrying Value Fair Value Carrying Value Fair Value Money market funds 1 R $ 219,229 $ 219,229 $ 230,740 $ 230,740 Note Receivable 2 R 10,500 10,500 10,500 10,500 Liabilities (principal) Senior Notes 2 NR 257,305 260,778 257,056 263,225 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Comprehensive Income | Comprehensive income is the change in equity of an enterprise except those resulting from shareholder transactions. Accumulated other comprehensive loss consists of the following (in thousands): November 30, 2018 February 28, 2019 Terminated interest rate swap, net of tax benefit of $1,050 and $983, respectively $ (1,204 ) $ (1,000 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | The following tables provide segment reporting of the Company for the three months ended February 28, 2018 and 2019 , respectively (in thousands): Three Months Ended February 28, 2018 Motorsports Event All Other Total Revenues $ 143,778 $ 5,462 $ 149,240 Depreciation and amortization 25,168 1,571 26,739 Operating income (loss) 34,421 (1,927 ) 32,494 Capital expenditures 3,735 4,547 8,282 Total assets 1,704,921 614,045 2,318,966 Equity investments — 85,257 85,257 Three Months Ended February 28, 2019 Motorsports Event All Other Total Revenues $ 144,933 $ 5,957 $ 150,890 Depreciation and amortization 27,392 1,867 29,259 Operating income (loss) 27,465 (1,936 ) 25,529 Capital expenditures 18,186 6,823 25,009 Total assets 1,704,374 603,758 2,308,132 Equity investments — 80,554 80,554 |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Details) | Nov. 09, 2018$ / shares |
International Speedway Corporation (“ISC”) | Proposal | NASCAR Holdings, Inc. (“NASCAR Holdings”) | |
Business Acquisition [Line Items] | |
Proposed purchase price per share (in usd per share) | $ 42 |
Revenues with Customers - Addit
Revenues with Customers - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Nov. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Current deferred revenues | $ 71,272 | $ 36,801 |
Long-term deferred revenues | 7,428 | $ 7,575 |
Motorsport and other Event-related activity | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Current deferred revenues | 70,300 | |
Long-term deferred revenues | 7,400 | |
Revenue recognized associated with contract liabilities | $ 25,700 |
Revenues with Customers - Disag
Revenues with Customers - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 150,551 | $ 148,875 |
Admissions, net | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 29,334 | 30,562 |
NASCAR Broadcasting | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 67,384 | 64,693 |
Corporate Sales and Other Event Related | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 39,257 | 41,093 |
Food, beverage and merchandise | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 9,252 | 7,950 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 5,324 | $ 4,577 |
Revenues with Customers - Impac
Revenues with Customers - Impact of Adopting 606 on Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Nov. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |||
Trade Receivables | $ 86,367 | $ 42,833 | |
Contract liability | 70,284 | ||
Other Liabilities | 14,318 | ||
Total Liabilities and Shareholders’ Equity | 84,602 | ||
Additional Cash Flow Elements, Operating Activities [Abstract] | |||
Receivables, net | (43,534) | $ (67,048) | |
Accounts payable and other liabilities | 1,575 | (2,601) | |
Deferred income | 34,324 | $ 59,018 | |
Impact of net adjustments to cash (used in) provided by operating activities | (7,635) | ||
Balances without adoption of ASC 606 | |||
Balance Sheet Related Disclosures [Abstract] | |||
Trade Receivables | 104,090 | ||
Contract liability | 87,908 | ||
Other Liabilities | 14,417 | ||
Total Liabilities and Shareholders’ Equity | 102,325 | ||
Additional Cash Flow Elements, Operating Activities [Abstract] | |||
Receivables, net | (61,257) | ||
Accounts payable and other liabilities | 1,674 | ||
Deferred income | 51,948 | ||
Impact of net adjustments to cash (used in) provided by operating activities | (7,635) | ||
Adjustments | ASC 606 | |||
Balance Sheet Related Disclosures [Abstract] | |||
Trade Receivables | 17,723 | ||
Contract liability | 17,624 | ||
Other Liabilities | 99 | ||
Total Liabilities and Shareholders’ Equity | 17,723 | ||
Additional Cash Flow Elements, Operating Activities [Abstract] | |||
Receivables, net | (17,723) | ||
Accounts payable and other liabilities | 99 | ||
Deferred income | 17,624 | ||
Impact of net adjustments to cash (used in) provided by operating activities | $ 0 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Numerator: | ||
Net income | $ 21,555 | $ 169,347 |
Denominator: | ||
Weighted average shares outstanding (shares) | 43,420,992 | 44,196,489 |
Effect of dilutive securities (shares) | 6,263 | 13,613 |
Diluted weighted average shares outstanding (shares) | 43,427,255 | 44,210,102 |
Basic and diluted earnings per share | ||
Basic and diluted (in dollars per share) | $ 0.50 | $ 3.83 |
Anti-dilutive shares excluded in the computation of diluted earnings per share (shares) | 18,792 | 54,490 |
Equity and Other Investments -
Equity and Other Investments - Additional Information (Detail) - USD ($) | Jan. 04, 2019 | Mar. 31, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 |
Schedule of Equity Method Investments [Line Items] | |||||||
Equity in net income from equity investments | $ 5,512,000 | $ 4,308,000 | |||||
Financing Receivable, Gross | $ 40,000,000 | ||||||
Proceeds from payments on notes receivable | $ 0 | ||||||
Acquisition of assets | $ 7,969,000 | 0 | |||||
Kansas Entertainment | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership interest in joint venture | 50.00% | 50.00% | |||||
Equity in net income from equity investments | $ 5,500,000 | 4,300,000 | |||||
Fairfield Inn Hotel at ONE DAYTONA | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership interest in joint venture | 33.25% | 33.25% | |||||
Equity in net income from equity investments | (100,000) | ||||||
Losses in excess of carrying value | $ 200,000 | $ 200,000 | |||||
Autograph Hotel at ONE DAYTONA | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership interest in joint venture | 34.00% | 34.00% | |||||
Residential Project at ONE DAYTONA | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Land contribution towards residential component | $ 0 | ||||||
Cash Distribution | Kansas Entertainment | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Distributions | 6,150,000 | 5,250,000 | |||||
Cash Distribution | Fairfield Inn Hotel at ONE DAYTONA | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Distributions | 33,000 | $ 0 | |||||
Subsequent Event [Member] | Residential Project at ONE DAYTONA | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership interest in joint venture | 31.00% | ||||||
Land contribution towards residential component | $ 3,700,000 | ||||||
ONE DAYTONA | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Proceeds from sale of assets | 20,000,000 | ||||||
Periodic payment | $ 10,500,000 | ||||||
Racing Electronics | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Acquisition of assets | $ 8,200,000 | ||||||
Non-recurring, noncapitalizable acquisition costs recognized | $ 200,000 | ||||||
Net revenue | 1,900,000 | ||||||
Operating income | $ 200,000 | ||||||
Track Access Rights | Racing Electronics | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Amortization period of acquired intangible | 30 years |
Equity and Other Investments _2
Equity and Other Investments - Distributions from Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||
Distribution from profits | $ 5,800 | $ 4,621 |
Distribution from equity investee | 382 | 629 |
Kansas Entertainment | Cash Distribution | ||
Schedule of Equity Method Investments [Line Items] | ||
Distribution from profits | 5,800 | 4,621 |
Distribution from equity investee | 350 | 629 |
Total Distributions | $ 6,150 | $ 5,250 |
Equity and Other Investments _3
Equity and Other Investments - Schedule of Preliminary Purchase Price Allocation (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Jan. 04, 2019 | Nov. 30, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 118,872 | $ 118,331 | |
Racing Electronics | |||
Business Acquisition [Line Items] | |||
Inventory | $ 2,340 | ||
Property and equipment | 4,097 | ||
Trade names and trademarks | 1,010 | ||
Track access rights | 260 | ||
Goodwill | 541 | ||
Purchase price consideration | $ 8,248 |
Summary of Intangible Assets (D
Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 30, 2018 |
Intangible Assets by Major Class [Line Items] | ||
Net Carrying Amount | $ 179,832 | $ 178,563 |
Motorsports Event | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 179,841 | 178,663 |
Accumulated Amortization | 9 | 100 |
Net Carrying Amount | 179,832 | 178,563 |
Motorsports Event | Amortized intangible assets | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 288 | 120 |
Accumulated Amortization | 9 | 100 |
Net Carrying Amount | 279 | 20 |
Motorsports Event | Amortized intangible assets | Other | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 288 | 120 |
Accumulated Amortization | 9 | 100 |
Net Carrying Amount | 279 | 20 |
Motorsports Event | Non-amortized intangible assets | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 179,553 | 178,543 |
Net Carrying Amount | 179,553 | 178,543 |
Motorsports Event | Non-amortized intangible assets | Other | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 1,740 | 730 |
Net Carrying Amount | 1,740 | 730 |
Motorsports Event | Non-amortized intangible assets | NASCAR - sanction agreements | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 177,813 | 177,813 |
Net Carrying Amount | $ 177,813 | $ 177,813 |
Current and Expected Amortizati
Current and Expected Amortization Expense of Intangible Assets (Detail) $ in Thousands | 3 Months Ended |
Feb. 28, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortization expense for the three months ended February 28, 2019 | $ 1 |
Remaining estimated amortization expense for the year ending November 30: | |
2019 | 9 |
2020 | 10 |
2021 | 10 |
2022 | 11 |
2023 and thereafter | $ 239 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) | 3 Months Ended |
Feb. 28, 2019USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | |
Increase in carrying value of goodwill | $ 541,000 |
Motorsports Event | |
Indefinite-lived Intangible Assets [Line Items] | |
Increase in net carrying amount due to sale of certain business operations | $ 1,000,000 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 30, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 257,068 | $ 257,305 |
Debt Instrument, Unamortized Discount and Debt Issuance Costs | (1,580) | (1,640) |
Less: current portion | 4,639 | 4,521 |
Debt Instrument, Unamortized Discount and Debt Issuance Costs, Current | (237) | (237) |
Long-Term Debt | 252,429 | 252,784 |
Debt Instrument, Unamortized Discount and Debt Issuance Costs, Non-current | (1,343) | (1,403) |
4.63 percent Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 65,000 | 65,000 |
Debt Instrument, Unamortized Discount and Debt Issuance Costs | (96) | (108) |
3.95 percent Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 100,000 | 100,000 |
Debt Instrument, Unamortized Discount and Debt Issuance Costs | (233) | (244) |
6.25 percent Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | 45,764 | 46,014 |
Debt Instrument, Unamortized Discount and Debt Issuance Costs | 0 | 0 |
TIF bond debt service funding commitment | ||
Debt Instrument [Line Items] | ||
Long-term debt | 46,304 | 46,291 |
Debt Instrument, Unamortized Discount and Debt Issuance Costs | (1,251) | (1,288) |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 0 |
Debt Instrument, Unamortized Discount and Debt Issuance Costs | $ 0 | $ 0 |
Long-Term Debt - Non-printing (
Long-Term Debt - Non-printing (Detail) | Feb. 28, 2019 | Nov. 30, 2018 |
4.63 percent Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, interest rate | 4.63% | 4.63% |
3.95 percent Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, interest rate | 3.95% | 3.95% |
6.25 percent Term Loan | ||
Debt Instrument [Line Items] | ||
Debt, interest rate | 6.25% | 6.25% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Detail) | Sep. 27, 2016USD ($)extention_option | Feb. 28, 2019USD ($)Year | Nov. 30, 2018USD ($) |
Debt Disclosure [Line Items] | |||
Long-term Debt, Gross | $ 257,068,000 | $ 257,305,000 | |
Finance costs, net of accumulated amortization | 2,900,000 | $ 3,000,000 | |
4.63 percent Senior Notes | |||
Debt Disclosure [Line Items] | |||
Proceeds from long-term debt | $ 65,000,000 | ||
Debt, interest rate | 4.63% | 4.63% | |
Frequency of periodic payment | semi-annual | ||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 3.50 | ||
Debt Instrument, Covenant, Interest Coverage Ratio, Maximum | 2 | ||
Debt Instrument, Covenant Consolidated Net Worth, Percentage, Maximum | 15.00% | ||
Long-term debt | $ 65,000,000 | ||
Long-term Debt, Gross | $ 65,000,000 | $ 65,000,000 | |
4.63 percent Senior Notes | Semi Annual Payment, First Payment | |||
Debt Disclosure [Line Items] | |||
Debt Instrument Interest Rate Payment Date | January 18 | ||
4.63 percent Senior Notes | Semi Annual Payment, Second Payment | |||
Debt Disclosure [Line Items] | |||
Debt Instrument Interest Rate Payment Date | July 18 | ||
3.95 percent Senior Notes | |||
Debt Disclosure [Line Items] | |||
Proceeds from long-term debt | $ 100,000,000 | ||
Debt, interest rate | 3.95% | 3.95% | |
Frequency of periodic payment | semi-annual | ||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 3.50 | ||
Debt Instrument, Covenant Consolidated Net Worth, Percentage, Maximum | 15.00% | ||
Long-term debt | $ 100,000,000 | ||
Long-term Debt, Gross | $ 100,000,000 | $ 100,000,000 | |
3.95 percent Senior Notes | Semi Annual Payment, First Payment | |||
Debt Disclosure [Line Items] | |||
Debt Instrument Interest Rate Payment Date | March 13 | ||
3.95 percent Senior Notes | Semi Annual Payment, Second Payment | |||
Debt Disclosure [Line Items] | |||
Debt Instrument Interest Rate Payment Date | September 13 | ||
6.25 percent Term Loan | |||
Debt Disclosure [Line Items] | |||
Debt, interest rate | 6.25% | 6.25% | |
Long-term debt | $ 45,800,000 | ||
Long-term Debt, Gross | 45,764,000 | $ 46,014,000 | |
Debt, monthly payment | $ 323,000 | ||
Debt term | Year | 25 | ||
TIF bond debt service funding commitment | |||
Debt Disclosure [Line Items] | |||
Long-term Debt, Gross | $ 46,304,000 | $ 46,291,000 | |
Principal payment date | October 1 | ||
TIF bond debt service funding commitment | Semi Annual Payment, First Payment | |||
Debt Disclosure [Line Items] | |||
Debt Instrument Interest Rate Payment Date | April 1 | ||
TIF bond debt service funding commitment | Semi Annual Payment, Second Payment | |||
Debt Disclosure [Line Items] | |||
Debt Instrument Interest Rate Payment Date | October 1 | ||
TIF bond debt service funding commitment | Term Bond Due December 1st 2027 | |||
Debt Disclosure [Line Items] | |||
Debt, interest rate | 6.75% | ||
Long-term debt | $ 46,600,000 | ||
Debt, maturity date | Dec. 1, 2027 | ||
2016 Credit Facility | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 3.50 | ||
Debt Instrument, Covenant, Interest Coverage Ratio, Maximum | 2.5 | ||
Credit Facility current borrowing capacity | $ 300,000,000 | ||
Debt maturity period | 5 years | ||
Number of extension options available | extention_option | 2 | ||
Duration of each extension option | 1 year | ||
Credit Facility potential borrowing capacity | $ 500,000,000 | ||
Debt instrument basis points | 0.50% | ||
Credit Facility amount outstanding | $ 0 | ||
Finance costs, net of accumulated amortization | $ 1,300,000 | ||
2016 Credit Facility | Minimum | |||
Debt Disclosure [Line Items] | |||
Unused capacity commitment fee (percent) | 0.125% | ||
2016 Credit Facility | Maximum | |||
Debt Disclosure [Line Items] | |||
Unused capacity commitment fee (percent) | 0.225% | ||
2016 Credit Facility | Standby Letters of Credit | |||
Debt Disclosure [Line Items] | |||
Credit Facility current borrowing capacity | $ 25,000,000 | ||
2016 Credit Facility | Swing Line Loan | |||
Debt Disclosure [Line Items] | |||
Credit Facility current borrowing capacity | $ 10,000,000 | ||
Four Quarters Ending after any Permitted Acquisition | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 4 | ||
London Interbank Offered Rate (LIBOR) | 2016 Credit Facility | |||
Debt Disclosure [Line Items] | |||
Debt instrument basis points | 1.00% | ||
London Interbank Offered Rate (LIBOR) | 2016 Credit Facility | Minimum | |||
Debt Disclosure [Line Items] | |||
Debt instrument basis points | 1.00% | ||
London Interbank Offered Rate (LIBOR) | 2016 Credit Facility | Maximum | |||
Debt Disclosure [Line Items] | |||
Debt instrument basis points | 1.625% |
Long-Term Debt Schedule of Inte
Long-Term Debt Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Debt Disclosure [Abstract] | ||
Interest expense | $ 3,785 | $ 3,852 |
Less: capitalized interest | 63 | 967 |
Net interest expense | $ 3,722 | $ 2,885 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Estimated Fair Values and Categorization Levels of Financial Instruments (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 30, 2018 |
Reported Value Measurement [Member] | Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 230,740 | $ 219,229 |
Reported Value Measurement [Member] | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Note Receivable | 10,500 | 10,500 |
Estimate of Fair Value Measurement [Member] | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Note Receivable | 10,500 | 10,500 |
Senior Notes | Reported Value Measurement [Member] | Nonrecurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 257,056 | 257,305 |
Senior Notes | Estimate of Fair Value Measurement [Member] | Nonrecurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | $ 263,225 | $ 260,778 |
Capital Stock (Details)
Capital Stock (Details) - Class A Common Stock - Stock Purchase Plan | 147 Months Ended |
Feb. 28, 2019USD ($)shares | |
Equity, Class of Treasury Stock [Line Items] | |
Authorized amount under Stock Purchase Plan | $ 530,000,000 |
Stock repurchased during the period (shares) | shares | 10,566,002 |
Stock repurchased during the period | $ 391,300,000 |
Remaining repurchase authority under the Stock Purchase Plan | $ 138,700,000 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 30, 2018 |
Statement of Comprehensive Income [Abstract] | ||
Terminated interest rate swap, net of tax benefit of $1,050 and $983, respectively | $ (1,000) | $ (1,204) |
Accumulated other comprehensive income (loss), terminated interest rate swap, tax | $ 983 | $ 1,050 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit resulting from the Tax Act | $ 143.9 | |
Effective income tax rate (percent) | 24.50% | (391.50%) |
Related Party Disclosures and_2
Related Party Disclosures and Transactions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Majority Shareholder | ||
Related Party Transaction [Line Items] | ||
France Family Group, which contains NASCAR, ownership of voting interest in the Company | 74.70% | |
NASCAR | ||
Related Party Transaction [Line Items] | ||
Allocation of broadcast rights fees for each NASCAR Sprint Cup, Nationwide or Camping World Truck series event | 10.00% | |
Television broadcast and ancillary rights fees from continuing operations received from NASCAR for the NASCAR Sprint Cup, Nationwide and Camping World Truck series events recorded as part of motorsports related revenue | $ 68 | $ 65.1 |
Prize and point fund monies paid to NASCAR | $ 18.8 | 18.1 |
Event Promoter | ||
Related Party Transaction [Line Items] | ||
Allocation of broadcast rights fees for each NASCAR Sprint Cup, Nationwide or Camping World Truck series event | 90.00% | |
Prize money paid by event promoter as a percent of broadcast rights fees for each NASCAR Sprint Cup, Nationwide or Camping World Truck series event | 25.00% | |
Allocation Of gross broadcast rights revenue retained by the promoter | 65.00% | |
Prize and point fund monies paid to NASCAR | $ 30.9 | $ 29.9 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | |
Oct. 31, 2002 | Feb. 28, 2019 | |
Standby Letter of Credit | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Standby letter of credit agreements in favor of third parties | $ 3,100,000 | |
Amounts drawn on standby letter of credit | 0 | |
2002 STAR Bonds | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Proceeds from long-term debt | $ 6,300,000 | |
Frequency of periodic payment | annual | |
Debt, maturity date | Dec. 1, 2022 | |
Long-term debt | $ 500,000 |
Segment Reporting (Detail)
Segment Reporting (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 150,890 | $ 149,240 |
Depreciation and amortization | 29,259 | 26,739 |
Operating income (loss) | 25,529 | 32,494 |
Capital expenditures | 25,009 | 8,282 |
Total Assets | 2,308,132 | 2,318,966 |
Equity Investments | 80,554 | 85,257 |
Motorsports Event | ||
Segment Reporting Information [Line Items] | ||
Revenues | 144,933 | 143,778 |
Depreciation and amortization | 27,392 | 25,168 |
Operating income (loss) | 27,465 | 34,421 |
Capital expenditures | 18,186 | 3,735 |
Total Assets | 1,704,374 | 1,704,921 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 5,957 | 5,462 |
Depreciation and amortization | 1,867 | 1,571 |
Operating income (loss) | (1,936) | (1,927) |
Capital expenditures | 6,823 | 4,547 |
Total Assets | 603,758 | 614,045 |
Equity Investments | $ 80,554 | $ 85,257 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Segment Reporting Disclosure [Line Items] | ||
Revenues | $ 150,890,000 | $ 149,240,000 |
Impairment of long lived assets | 381,000 | 1,162,000 |
Intersegment Elimination | ||
Segment Reporting Disclosure [Line Items] | ||
Revenues | 300,000 | 400,000 |
All Other | ||
Segment Reporting Disclosure [Line Items] | ||
Revenues | 5,957,000 | 5,462,000 |
Increase in revenue | 500,000 | |
Increase in capital expenditures | 2,300,000 | |
Motorsports Event | ||
Segment Reporting Disclosure [Line Items] | ||
Revenues | 144,933,000 | 143,778,000 |
Motorsports Event | Phoenix Raceway Project | General and Administrative Expense | ||
Segment Reporting Disclosure [Line Items] | ||
Accelerated depreciation | 900,000 | 900,000 |
Impairment of long lived assets | 300,000 | 1,100,000 |
Racing Electronics | Motorsports Event | ||
Segment Reporting Disclosure [Line Items] | ||
Revenues | $ 1,900,000 | $ 0 |