SPEEDWAY MOTORSPORTS INC, 10-Q filed on 4/28/2016
Quarterly Report
Document And Entity Information
3 Months Ended
Mar. 31, 2016
Apr. 28, 2016
Entity Registrant Name
SPEEDWAY MOTORSPORTS INC 
 
Entity Central Index Key
0000934648 
 
Trading Symbol
trk 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Accelerated Filer 
 
Entity Current Reporting Status
Yes 
 
Entity Voluntary Filers
No 
 
Entity Well-known Seasoned Issuer
No 
 
Entity Common Stock, Shares Outstanding (in shares)
 
41,205,547 
Document Type
10-Q 
 
Document Period End Date
Mar. 31, 2016 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q1 
 
Amendment Flag
false 
 
Consolidated Balance Sheets (Unaudited) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Current Assets:
 
 
Cash and cash equivalents
$ 79,273 
$ 82,010 
Accounts and notes receivable, net
55,188 
 
Prepaid and refundable income taxes
8,570 
 
Inventories, net
9,738 
8,711 
Prepaid expenses
4,098 
 
Total Current Assets
156,867 
 
Notes Receivable
1,264 
 
Other Assets
29,428 
 
Property and Equipment, Net
1,028,192 
 
Other Intangible Assets, Net
298,394 
298,394 
Goodwill
47,342 
47,342 
Total
1,561,487 
1,539,197 
Current Liabilities:
 
 
Current maturities of long-term debt
7,657 
 
Accounts payable
16,316 
 
Deferred race event and other income, net
92,306 
 
Accrued interest
1,724 
 
Accrued expenses and other current liabilities
20,767 
 
Total Current Liabilities
138,770 
 
Long-term Debt
311,549 
 
Deferred Income, Net
4,412 
 
Deferred Income Taxes, Net
321,457 
 
Other Liabilities
6,706 
 
Total Liabilities
782,894 
 
Stockholders’ Equity:
 
 
Preferred Stock, $.10 par value, shares authorized – 3,000,000, no shares issued
   
 
Common Stock, $.01 par value, shares authorized – 200,000,000, issued and outstanding – 41,208,000 in 2016 and 41,235,000 in 2015
458 
 
Additional Paid-in Capital
256,161 
 
Retained Earnings
623,727 
 
Treasury Stock at cost, shares – 4,612,000 in 2016 and 4,520,000 in 2015
(101,753)
 
Total Stockholders’ Equity
778,593 
784,840 
Total
1,561,487 
 
As Revised [Member]
 
 
Current Assets:
 
 
Cash and cash equivalents
 
82,010 
Accounts and notes receivable, net
 
39,783 
Prepaid and refundable income taxes
 
8,520 
Inventories, net
 
8,711 
Prepaid expenses
 
3,862 
Total Current Assets
 
142,886 
Notes Receivable
 
1,303 
Other Assets
 
29,622 
Property and Equipment, Net
 
1,019,650 
Other Intangible Assets, Net
 
298,394 
Goodwill
 
47,342 
Total
 
1,539,197 
Current Liabilities:
 
 
Current maturities of long-term debt
 
7,677 
Accounts payable
 
12,112 
Deferred race event and other income, net
 
57,549 
Accrued interest
 
4,291 
Accrued expenses and other current liabilities
 
26,740 
Total Current Liabilities
 
108,369 
Long-term Debt
 
313,706 
Deferred Income, Net
 
4,581 
Deferred Income Taxes, Net
 
321,046 
Other Liabilities
 
6,655 
Total Liabilities
 
754,357 
Stockholders’ Equity:
 
 
Preferred Stock, $.10 par value, shares authorized – 3,000,000, no shares issued
 
   
Common Stock, $.01 par value, shares authorized – 200,000,000, issued and outstanding – 41,208,000 in 2016 and 41,235,000 in 2015
 
458 
Additional Paid-in Capital
 
255,294 
Retained Earnings
 
629,115 
Treasury Stock at cost, shares – 4,612,000 in 2016 and 4,520,000 in 2015
 
(100,027)
Total Stockholders’ Equity
 
784,840 
Total
 
$ 1,539,197 
Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $)
Mar. 31, 2016
Dec. 31, 2015
As Revised [Member]
Preferred stock par value (in dollars per share)
$ 0.10 
$ 0.10 
Preferred stock, shares authorized (in shares)
3,000,000 
3,000,000 
Preferred stock, shares issued (in shares)
Common Stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Common Stock, shares authorized (in shares)
200,000,000 
200,000,000 
Common Stock, shares issued (in shares)
41,208,000 
41,235,000 
Common Stock, shares outstanding (in shares)
41,208,000 
41,235,000 
Treasury Stock at cost, shares (in shares)
4,612,000 
4,520,000 
Consolidated Statements of Operations (Unaudited) (USD $)
Share data in Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Admissions
$ 15,439,000 
$ 18,752,000 
Event related revenue
21,730,000 
22,270,000 
NASCAR broadcasting revenue
37,447,000 
36,319,000 
Other operating revenue
8,560,000 
7,933,000 
Total Revenues
83,176,000 
85,274,000 
Direct expense of events
13,060,000 
14,870,000 
NASCAR event management fees
22,298,000 
21,619,000 
Other direct operating expense
5,589,000 
4,838,000 
General and administrative
24,074,000 
23,091,000 
Depreciation and amortization
13,371,000 
13,335,000 
Interest expense, net
3,339,000 
6,257,000 
Loss on early debt redemption and refinancing (Note 5)
   
8,372,000 
Other expense (income), net
68,000 
(390,000)
Total Expenses and Other
81,799,000 
91,992,000 
Income (Loss) Before Income Taxes
1,377,000 
(6,718,000)
(Provision) Benefit for Income Taxes
(516,000)
2,319,000 
Net Income (Loss)
$ 861,000 
$ (4,399,000)
Basic Earnings (Loss) Per Share (Note 6) (in dollars per share)
$ 0.02 
$ (0.11)
Weighted average common shares outstanding (in shares)
41,227 
41,338 
Diluted Earnings (Loss) Per Share (Note 6) (in dollars per share)
$ 0.02 
$ (0.11)
Weighted average common shares outstanding and assumed conversions (in shares)
41,244 
41,376 
Consolidated Statement of Stockholders' Equity (Unaudited) (USD $)
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Treasury Stock [Member]
Total
Balance at Dec. 31, 2015
$ 458,000 
$ 255,294,000 
$ 629,115,000 
$ (100,027,000)
$ 784,840,000 
Balance (in shares) at Dec. 31, 2015
41,235,000 
 
 
 
 
Net income
 
 
861,000 
 
861,000 
Share-based compensation (in shares)
65,000 
 
 
 
 
Share-based compensation
 
867,000 
 
 
867,000 
Quarterly cash dividends of $0.15 per share of common stock
 
 
(6,249,000)
 
(6,249,000)
Repurchases of common stock (in shares)
(92,000)
 
 
 
 
Repurchases of common stock
 
 
 
(1,726,000)
(1,726,000)
Balance at Mar. 31, 2016
$ 458,000 
$ 256,161,000 
$ 623,727,000 
$ (101,753,000)
$ 778,593,000 
Balance (in shares) at Mar. 31, 2016
41,208,000 
 
 
 
 
Consolidated Statement of Stockholders' Equity (Unaudited) (Parentheticals)
3 Months Ended
Mar. 31, 2016
Retained Earnings [Member]
Cash dividends, per share of common stock (in dollars per share)
$ 0.15 
Consolidated Statements of Cash Flows (Unaudited) (USD $)
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2015
As Revised [Member]
Cash Flows from Operating Activities:
 
 
 
Net income (loss)
$ 861,000 
$ (4,399,000)
$ (4,399,000)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
Deferred loan cost amortization
373,000 
 
508,000 
Gain on disposals of property and equipment and insurance recovery
(12,000)
(488,000)
 
Interest expense accretion of debt discount and premium, net
   
 
(149,000)
Depreciation and amortization
13,371,000 
 
13,335,000 
Amortization of deferred income
(193,000)
 
(176,000)
Deferred income tax provision
415,000 
 
(2,319,000)
Share-based compensation
867,000 
 
796,000 
Changes in operating assets and liabilities:
 
 
 
Accounts and notes receivable
(15,405,000)
 
(25,273,000)
Prepaid, refundable and accrued income taxes
(50,000)
 
54,000 
Inventories
(1,027,000)
 
(1,713,000)
Prepaid expenses
(236,000)
 
(602,000)
Accounts payable
591,000 
 
5,457,000 
Deferred race event and other income
34,765,000 
 
33,609,000 
Accrued interest
(2,567,000)
 
(5,193,000)
Accrued expenses and other liabilities
(5,973,000)
 
(4,975,000)
Deferred income
16,000 
 
84,000 
Other assets and liabilities
(155,000)
 
162,000 
Net Cash Provided By Operating Activities
25,641,000 
 
8,718,000 
Cash Flows from Financing Activities:
 
 
 
Borrowings under long-term debt
   
 
250,000,000 
Principal payments on long-term debt
(2,177,000)
 
(250,375,000)
Payment of debt refinancing costs
   
(3,629,000)
 
Dividend payments on common stock
(6,249,000)
 
(6,233,000)
Exercise of common stock options
   
 
285,000 
Repurchases of common stock
(1,726,000)
 
(2,010,000)
Net Cash Used By Financing Activities
(10,152,000)
 
(11,962,000)
Cash Flows from Investing Activities:
 
 
 
Payments for capital expenditures
(18,355,000)
(6,089,000)
(6,089,000)
Payment for other non-current assets
   
(197,000)
 
Proceeds from sales of property and equipment and insurance recovery
   
 
491,000 
Repayment of notes and other receivables
39,000 
 
37,000 
Net Cash Used By Investing Activities
(18,316,000)
 
(5,758,000)
Net Decrease in Cash and Cash Equivalents
(2,827,000)
(9,002,000)
 
Change in cash collected for and payable to third party, cash not provided or used by operating activities (Note 2)
90,000 
 
513,000 
Cash and Cash Equivalents at Beginning of Period
82,010,000 
110,046,000 
 
Cash and Cash Equivalents at End of Period
79,273,000 
101,557,000 
 
Supplemental Cash Flow Information:
 
 
 
Cash paid for interest, net of amounts capitalized
5,949,000 
 
11,497,000 
Supplemental Non-Cash Investing and Financing Activities Information:
 
 
 
Increase (decrease) in accounts payable for capital expenditures
$ 3,540,000 
 
$ (484,000)
Note 1 - Description of Business
Nature of Operations [Text Block]
1. DESCRIPTION OF BUSINESS
 
Basis of Presentation
The consolidated financial statements include the accounts of Speedway Motorsports, Inc. and all of its wholly-owned and operating subsidiaries: Atlanta Motor Speedway LLC (AMS), Bristol Motor Speedway LLC (BMS), Charlotte Motor Speedway LLC (CMS), Kentucky Raceway LLC d/b/a Kentucky Speedway (KyS), Nevada Speedway LLC d/b/a Las Vegas Motor Speedway (LVMS), New Hampshire Motor Speedway, Inc. (NHMS), North Wilkesboro Speedway, Inc. (NWS), Speedway Sonoma LLC (Sonoma Raceway or SR), Texas Motor Speedway, Inc. (TMS), SMISC Holdings, Inc. d/b/a SMI Properties (SMI Properties), US Legend Cars International, Inc. (Legend Cars), Oil-Chem Research Corporation (Oil-Chem), SMI Trackside LLC (SMI Trackside), Speedway Funding LLC, Speedway Motorsports International Limited (BVI) and consolidated foreign entity (SMIL), Speedway Properties Company LLC a/k/a Performance Racing Network (PRN), Speedway Media LLC a/k/a Racing Country USA (RCU), and TSI Management Company LLC d/b/a The Source International LLC (TSI) (collectively, the Company, SMI, we, our or us). Hereafter, references to “the Company’s” or “eight” speedways exclude NWS, which presently has no significant operations and assets consist primarily of real estate which has no significant fair value. See Notes 1 and 2 to the Consolidated Financial Statements in our 2015 Annual Report on Form 10-K (2015 Annual Report) for further description of our business operations, properties and scheduled events.
 
Racing Events
– In 2016
, we plan to hold 24 major annual racing events sanctioned by the National Association for Stock Car Auto Racing, Inc. (NASCAR), including 13 Sprint Cup and 11
Xfinity Series racing events. We also plan to hold eight NASCAR Camping World Truck Series, three NASCAR K&N Pro Series, four NASCAR Whelen Modified Tour, two IndyCar Series, six major National Hot Rod Association (NHRA), one Automobile Racing Club of America (ARCA) and three
World of Outlaws (WOO) racing events.
In 2015, we held 24 major annual racing events sanctioned by NASCAR, including 13 Sprint Cup and 11 Xfinity Series racing events. We also held eight NASCAR Camping World Truck Series, three NASCAR K&N Pro Series, four NASCAR Whelen Modified Tour, two IndyCar Series, six major NHRA, one ARCA and three WOO events.
Note 2 - Significant Accounting Policies and Other Disclosures
Significant Accounting Policies [Text Block]
2.
SIGNIFICANT ACCOUNTING
POLICIES AND OTHER DISCLOSURES
 
These unaudited consolidated financial statements should be read in conjunction with our consolidated financial statements included in our 2015 Annual Report. In management's opinion, these unaudited consolidated financial statements contain all adjustments necessary for their fair presentation at interim periods in accordance with accounting principles generally accepted in the United States. All such adjustments are of a normal recurring nature unless otherwise noted. The results of operations for interim periods are not necessarily indicative of operating results that may be expected for the entire year due to the seasonal nature of the Company's motorsports business. See Note 2 to the Consolidated Financial Statements in our 2015 Annual Report for further discussion of significant accounting policies.
 
Quarterly
Reporting
– We recognize revenues and operating expenses for all events in the calendar quarter in which conducted. Changes in race schedules at our speedways from time to time, including speedway acquisitions, can lessen the comparability of operating results between quarterly financial statements of successive years and increase or decrease the seasonal nature of our motorsports business.
The more significant racing schedule change for the three months ended March 31, 2016 as compared to 2015 includes:
 
 
CMS held one major NHRA racing event in the first quarter 2015 that is being held in the second quarter 2016
Poor weather resulted in delaying the start of the NASCAR Sprint Cup race held at Las Vegas Motor Speedway in the first quarter 2016
 
Income Taxes
– The Company provides for income taxes at the end of each interim period based on management’s best estimate of the annual estimated effective income tax rate. Cumulative adjustments to the Company’s annual estimated effective income tax rate are recorded in the interim period in which a change in the annual estimated effective income tax rate is determined. See Notes 2 and 8 to
the Consolidated Financial Statements in our 2015 Annual Report for additional information on our accounting for income taxes.
 
 
The effective income tax rate for the three months ended March 31, 2016 and 2015 was 37.5% and 34.5%, respectively. The 2015 effective tax rate was reduced by adjustments to certain deferred tax assets, and was 37.1% excluding such adjustments. The Company paid cash of $200,000 and $0 for income taxes in the three months ended March 31, 2016 and 2015.
 
A
ccounting for Uncertainty in Income Taxes
– Income tax liabilities for unrecognized tax benefits approximate $12,280,000 as of March 31, 2016 and December 31, 2015, $11,781,000 of which relates to deferred tax assets associated with the Company’s discontinued operation. At March 31, 2016 and December 31, 2015, $499,000 of those amounts is included in noncurrent other liabilities and $11,781,000 is included in deferred tax liabilities, all of which would favorably impact the Company’s effective tax rate if recognized. As of March 31, 2016 and December 31, 2015, management believes $239,000 of unrecognized tax benefits will be recognized within the next twelve months. During the three months ended March 31, 2016 and 2015, the Company recognized $4,000 and $7,000 of interest and penalties associated with unrecognized tax benefits. As of March 31, 2016 and December 31, 2015, the Company had $173,000 and $169,000 accrued for the payment of interest and penalties on uncertain tax positions, which is included in other noncurrent liabilities. The tax years that remain open to examination include 2006 through 2015 by the California Franchise Tax Board, and 2012 through 2015 by all other taxing jurisdictions to which the Company is subject.
 
Anticipated Income Tax Benefit From Equity Interest Abandonment
On January 31, 2014, the Company abandoned its interest and rights in Motorsports Authentics (former 50% owned, non-controlling interest, merchandising equity investment joint venture) (MA) to focus management resources in areas that may be profitable and more productive. The Company’s carrying value of the investment was reduced to $0 through sizable impairment charges prior to 2010 and MA’s historical operating results. The Company recognized no concurrent tax benefits as valuation allowances were provided against associated deferred tax assets. As a result of abandonment, the Company recognized a material income tax benefit of $48.1 million at December 31, 2013 for the reversal of previously recorded valuation allowances under applicable accounting guidance, and recognized tax losses reported on its 2014 income tax returns. Management believes there is or will be sufficient taxable income in carryback or carryforward periods under tax law for full utilization of these tax losses. The Company reduced income taxes payable by approximately $16.6 million through both March 31, 2016 and December 31, 2015, through utilization of deferred income tax assets, including net operating losses, related to the abandonment.
 
The Company believes it is more likely than not that its filing position would be sustained based on its technical merits upon examination with taxing authorities that have full knowledge of all relevant information. The Company reached this conclusion based on the use of outside legal counsel and other tax consultants and the potential to utilize tax losses. The Company believes it will fully utilize the associated tax losses. Should the Company’s tax position not be fully sustained if examined, an acceleration of material cash income taxes payable could occur. Any differences between the final tax outcome and amounts recorded would affect the Company’s income tax provision in the period in which such determination was made.
 
Other Income Tax
Benefits
– Applicable accounting guidance may require establishing valuation allowances for certain deferred tax assets or income tax liabilities for unrecognized tax benefits, notwithstanding management believes associated tax filing positions are sustainable and are or will be reflected in its tax filings. Should those tax positions not be fully sustained if examined, an acceleration of material income taxes payable could occur. Because no net income tax benefit had been previously reflected because of providing a valuation allowance on related deferred tax assets, the Company’s future results of operations might not be significantly impacted. However, resulting cash required for payments of income taxes could be material in the period in which such determination is made.
 
Taxes Collected from Customers
– The Company reports sales, admission and other taxes collected from customers on both a gross and net basis in operations. Such taxes reported on a gross basis for the three months ended March 31, 2016 and 2015 amounted to $366,000 and $477,000.
 
Advertising Expenses
– Event specific advertising costs are expensed when an associated event is held and included principally in direct expense of events. Non-event related advertising costs are expensed as incurred and included principally in other direct operating expense. Advertising expense amounted to $1,927,000 and $2,283,000 in the three months ended March 31, 2016 and 2015. There were no deferred direct-response advertising costs at March 31, 2016 or December 31, 2015.
 
 
Fair Value of Financial Instruments
– We follow applicable authoritative guidance which requires that financial and non-financial assets and liabilities measured and reported on a fair value basis be classified, disclosed and categorized as further described below. Fair value estimates are based on relevant market information and single broker quoted market prices where available at a specific point in time, and changes in assumptions or market conditions could significantly affect estimates. The carrying values of cash and cash equivalents, accounts and notes receivable, certain other assets and accounts payable approximate fair value because of the short maturity of these financial instruments. Cash surrender values are carried at fair value based on binding broker quoted market prices. Notes and other receivables and bank revolving credit facility and term loan borrowings are variable interest rate financial instruments and, therefore, carrying values approximate fair value. The fixed rate senior notes payable are publicly traded and estimated fair values are based on single broker quoted market prices. Other long-term debt bears interest approximating market rates or where non-interest bearing is discounted based on estimated current cost of borrowings; therefore, carrying values approximate market value. There have been no changes or transfers between category levels or classes. The following table presents estimated fair values and categorization levels of our financial instruments as of March 31, 2016 and December 31, 2015 (in thousands):
 
 
 
 
 
 
 
 
March 31, 2016
 
 
December 31, 2015
 
 
 
Level
 
Class
 
Carrying
Value
 
 
Fair Value
 
 
Carrying
Value
 
 
Fair Value
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
1
 
R
 
$
79,273
 
 
$
79,273
 
 
$
82,010
 
 
$
82,010
 
Cash surrender values
 
 
2
 
NR
 
 
8,715
 
 
 
8,715
 
 
 
8,551
 
 
 
8,551
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Floating rate revolving Credit Facility, including Term Loan
 
 
2
 
NR
 
 
118,000
 
 
 
118,000
 
 
 
120,000
 
 
 
120,000
 
5.125% Senior Notes Payable due 2023
 
 
2
 
NR
 
 
200,000
 
 
 
205,750
 
 
 
200,000
 
 
 
199,000
 
Other long-term debt
 
 
2
 
NR
 
 
1,206
 
 
 
1,206
 
 
 
1,383
 
 
 
1,383
 
  
Level 1:
Quoted market prices in active markets for identical assets or liabilities.
Level 2:
Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3:
Unobservable inputs that are not corroborated by market data.
Class R:
Measured at fair value on recurring basis, subsequent to initial recognition.
Class NR:
Measured at fair value on nonrecurring basis, subsequent to initial recognition.
 
Deferred Income, Other Arrangements –
BMS plans to host two collegiate football games in September 2016, one of which is expected to be substantially larger due to team standings and public interest. Under the similar accounting policy for our racing events described above, we plan to continue to defer advance revenues and direct expenses pertaining to this event until held. Advance revenues and associated direct expenses are reflected in current “Deferred race event and other income, net” as of March 31, 2016 and December 31, 2015.
 
Consolidated Statements of Cash Flows
At times, we collect and temporarily hold cash on behalf of our third-party food and beverage concessionaire which is not remitted until after period end and is presented separately from cash flows from operating activities on the Consolidated Statements of Cash Flows. There are no specific limitations, restrictions or other holding requirements for such cash.
 
Recently Issued Accounting Standards
– The Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 "Revenue from Contracts with Customers (Topic 606): Section A - Summary and Amendments That Create Revenue from Contracts with Customers and Other Assets and Deferred Costs - Contracts with Customers (Subtopic 340-40)” which enhances comparability and clarifies principles of revenue recognition. The guidance includes the core principle that entities recognize revenue to depict transfers of promised goods or services to customers in amounts that reflect the consideration entities expect to be entitled in exchange for those goods or services. In August 2015, the FASB issued Update No. 2015-14 approving deferral of Update No. 2014-09 for one year, with such guidance now effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the potential impact that adoption may have on its financial statements.
 
The FASB issued Accounting Standards Update No. 2015-03 "Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” which requires that debt issuance costs related to debt liabilities be presented in the balance sheet as a direct deduction from the associated carrying amount, similar to debt discounts. In August 2015, the FASB issued Update No. 2015-15 “Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” which provides guidance on presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements, and indicating the SEC staff would not object to entities deferring and presenting debt issuance costs as an asset and subsequently amortizing deferred debt issuance costs ratably over line-of-credit arrangement terms even if there are no outstanding borrowings. The guidance is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. The Company has chosen to continue deferring and presenting debt issuance costs as an asset and amortize deferred debt issuance costs ratably over line-of-credit arrangement terms. As such, adoption had no impact on its financial statements.
 
 
The FASB issued Accounting Standards Update No. 2015-11 "Inventory (Topic 330): Simplifying the Measurement of Inventory” which requires measuring inventory at the lower of cost and net realizable value based on estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation (changed from the previous guidance of lower of cost or market). This update also clarified various other inventory measurement and disclosure requirements. The update does not apply to inventory measured using the LIFO or retail inventory methods. The guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and should be applied prospectively. Early application is permitted. The Company is currently evaluating the potential impact that adoption may have on its financial statements.
  
The FASB issued Accounting Standards Update No. 2016-02 “Leases (Subtopic 842)” which requires lessees to recognize assets and liabilities arising from leases as well as extensive quantitative and qualitative disclosures. Lessees will need to recognize on their balance sheets right-of-use assets and lease liabilities for the majority of their leases (other than leases meeting the definition of a short-term lease). Right-of-use assets will be measured at lease liability amounts, adjusted for lease prepayments, lease incentives received and lessee’s initial direct costs. Lease liabilities will equal the present value of lease payments. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The guidance is required to be applied using the modified retrospective approach for all leases existing as of the effective date, and provides for certain practical expedients. The Company is currently evaluating the potential impact that adoption may have on its financial statements.
 
The FASB issued Accounting Standards Update 2016-09 “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” which changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification of related matters in the statement of cash flows. The guidance is effective for the Company in the first quarter of 2017. The Company is currently evaluating the potential impact that adoption may have on its financial statements.
Note 3 - Inventories
Inventory Disclosure [Text Block]
3. INVENTORIES
 
Inventories, net consist of the following components (in thousands):
   
March 31,
   
December 31,
 
   
2016
   
2015
 
Finished race cars, parts and accessories
  $ 5,070     $ 5,542  
Souvenirs and apparel
    3,883       2,550  
Micro-lubricant
®
and other
    785       619  
Total
  $ 9,738     $ 8,711  
Note 4 - Goodwill and Other Intangible Assets
Goodwill and Intangible Assets Disclosure [Text Block]
4. GOODWILL AND OTHER INTANGIBLE ASSETS
 
Annual Assessment
The Company
evaluates goodwill and other intangible assets for possible impairment annually in the second quarter, or when events or circumstances indicate possible impairment may have occurred. See Notes 2 and 5 to the Consolidated Financial Statements in our 2015 Annual Report for additional information on the Company’s goodwill and other intangible assets and assessment methodology and evaluation. The inputs for measuring fair value are considered "Level 3" or unobservable inputs that are not corroborated by market data under applicable fair value authoritative guidance, as quoted market prices are not available. Management's latest annual assessment in the second quarter 2015 was based predominately on management's best estimate of future discounted operating cash flows and profitability attributable to such assets for all individual reporting units. Management also considered that the estimated market value for comparable NASCAR race event sanction and renewal agreements (the Company had agreements with NASCAR to annually conduct thirteen Sprint Cup, eleven Xfinity and eight Camping World Truck Series races as of the evaluation date), combined with the estimated fair value for all other Company net assets, exceeds its current market capitalization.
Among other factors, the latest assessment assumes projected cash flow and profitability recovery, using modest annual inflationary growth rates for projected revenue streams and operating costs (other than NASCAR broadcasting revenues and event management fees),
and strategic amounts of planned capital expenditures. Management projected annual increases in contracted NASCAR broadcasting rights revenues, and associated NASCAR event management fees, based on historical and anticipated rates which are supported by recently negotiated multi-year contracts. NASCAR event management fees for years after 2020 have not been negotiated, and future annual fees could differ substantially from those assumed in management’s impairment assessment. Management also considered recent market trading ranges of price to earnings and sales multiples, cash flow and other traditional valuation methods, control premiums, and other market information related to the Company’s common stock from historical and forward-looking perspectives.
 
 
Second Quarter 2015 Impairment
In the second quarter 2015, we recorded sizable non-cash impairment charges to reduce the carrying value of non-amortizable race date event sanctioning and renewal agreements associated with NHMS, and goodwill associated with certain event souvenir merchandising activities. These charges resulted from our 2015 annual impairment assessment, which found the estimated fair value of each reporting unit and each indefinite-lived intangible asset substantially exceeded its associated carrying value except for material non-amortizable race date event sanctioning and renewal agreements associated with NHMS. NHMS was acquired in 2008 largely before the severe economic recession, which has resulted in long-term operating challenges for many major sports. The 2015 evaluation reflects continuing lowered estimated future cash flows because the economic recovery has been slower and weaker than previous forecasts, and ongoing lower than anticipated revenues for various major racing events held at NHMS. The evaluation also reflects, similar to challenges faced by many major sports, reduced visibility on profit recovery due to factors such as changing demographics, evolving entertainment choices for fans and appealing “at-home viewing” experiences. As a result, the Company lowered its expectations for forecasted growth rates for certain revenues and profit recovery. As such, a non-cash impairment charge of $96,530,000, before income tax benefits of $34,569,000, was reflected in the second quarter 2015 to reduce the race date intangible assets to estimated fair value. Our 2015 annual assessment also indicated that goodwill associated with SMI Trackside, which conducts event souvenir merchandising at our and other third-party speedways, was impaired because of potentially unfavorable developments associated with NASCAR’s announced industry changes to the trackside merchandising business model. As such, a non-cash impairment charge of $2,338,000, before income tax benefits of $885,000, was reflected in the second quarter 2015 to reduce associated goodwill to an estimated fair value of $0.
 
These impairment charges pertain to the Company’s “motorsports event related” reporting segment. Management believes the methods used to determine fair value and evaluate impairment were appropriate, relevant, and represent methods customarily available and used for such purposes and are the best available estimate of fair value. There have since been no other events or circumstances that indicate possible impairment, and management believes the Company’s operational and cash flow forecasts support its conclusions that no unrecognized impairment exists as of March 31, 2016. Different economic or industry conditions or assumptions, and changes in projected cash flows or profitability, if significantly negative or unfavorable, could have a material adverse effect on the impairment evaluation and our future financial condition or results of operations. The evaluations are subjective and based on conditions, trends and assumptions existing at the time of evaluation.
 
Other Information –
There were no changes in the gross carrying value of goodwill or other intangible assets during the three months ended March 31, 2016. The carrying amounts for goodwill and other intangible assets include accumulated impairments of $148.6 million and $99.9 million at both March 31, 2016 and December 31, 2015. The gross carrying values and accumulated amortization by class of intangible asset are as follows (dollars in thousands):
 
   
March 31, 2016
   
December 31, 2015
           
   
Gross
Carrying
Value
   
Accumulated Amortization
   
Net
   
Gross
Carrying
Value
   
Accumulated
Amortization
   
Net
   
Estimated
Amortization
Period (Years)
 
Nonamortizable race
event sanctioning and
renewal agreements
  $ 298,383           $ 298,383     $ 298,383           $ 298,383          
Amortizable race event
sanctioning and
renewal agreements
    100     $ (89
)
    11       100     $ (89
)
    11     5 - 6  
Total
  $ 298,483     $ (89
)
  $ 298,394     $ 298,483     $ (89
)
  $ 298,394            
Note 5 - Long-term Debt
Long-term Debt [Text Block]
5. LONG-TERM DEBT
 
Bank Credit Facility
Our Credit Facility, among other things: (i) provides for a five-year $100,000,000 senior secured revolving credit facility, with separate sub-limits of $50,000,000 for standby letters of credit and $10,000,000 for swing line loans; (ii) provides for a five-year $150,000,000 senior secured term loan (which was fully drawn) and a five-year delayed draw term loan of up to $50,000,000 (which was fully drawn in March 2015 and repaid in the second quarter 2015) (the Term Loan or Term Loans); (iii) matures in December 2019; (iv) contains an accordion feature allowing the Company to increase revolving commitments or establish a term loan up to an aggregate additional $100,000,000 or $200,000,000, respectively (or a combined aggregate additional amount of up to $250,000,000) with certain lender commitment conditions; (v) allows for annual aggregate payments of dividends and repurchases of SMI securities of up to $50,000,000, increasing up to $75,000,000 subject to maintaining certain financial covenants; and (vi) limits annual capital expenditures to $75,000,000 and provides for motor speedway acquisitions and related businesses. Term Loans require equal minimum quarterly principal payments of at least 5% of initial amounts drawn on an annualized basis ($7,500,000 for fiscal 2016).
 
 
Interest is based, at the Company’s option, upon the Eurodollar Rate plus 1.25% to 2.00% or a base rate defined as the higher of Bank of America’s prime rate, the Federal Funds Rate plus 0.5% or the Eurodollar Rate plus 1%, plus 0.25% to 1.00%. The Credit Facility also contains a commitment fee ranging from 0.25% to 0.40% of unused amounts available for borrowing. The interest rate margins on borrowings and the commitment fee are adjustable periodically based upon certain consolidated total leverage ratios. The Credit Facility contains a number of affirmative and negative financial covenants, including requirements that the Company maintain certain consolidated total leverage ratios and consolidated interest coverage ratios.
 
During the three months ended March 31, 2016, the Company repaid $2,000,000 of Term Loan borrowings. During the three months ended March 31, 2015, the Company borrowed $50,000,000 under the Term Loan for partial funding of the 2019 Senior Notes redemption as further described below.
At March 31, 2016 and December 31, 2015, outstanding borrowings under the Credit Facility were $118,000,000 and $120,000,000 (all Term Loan borrowings), and outstanding letters of credit amounted to $840,000 and $845,000. As of March 31, 2016, the Company had availability for borrowing up to an additional $99,160,000, including up to an additional $49,160,000 in letters of credit, under the revolving Credit Facility, and $50,000,000 under the delayed draw term loan provision.
 
2023 Senior Notes
– We completed a private placement of new 5.125% Senior Notes due 2023 in aggregate principal amount of $200.0 million in January 2015 (the 2023 Senior Notes). The 2023 Senior Notes were issued at par, and net proceeds after commissions and fees of approximately $196,816,000 were used to fund a portion of the March 2015 redemption of 2019 Senior Notes as described below. We completed an exchange offer for substantially identical 2023 Senior Notes registered under the Securities Act in the second quarter 2015. The 2023 Senior Notes mature in February 2023 and interest payments are due semi-annually on February 1 and August 1.
 
2015 Early Redemption of 2019 Senior Notes
– We redeemed all outstanding 6.75% Senior Notes due in 2019 in aggregate principal of $250,000,000 (the 2019 Senior Notes) at 103.375% of par plus accrued interest in March 2015. The 2019 Senior Notes were scheduled to mature in February 2019. We used net proceeds of the 2023 Senior Notes, $50,000,000 of delayed draw Term Loan borrowings under the Credit Facility and cash on hand to fund the redemption, including redemption premium and transaction costs. We recognized a first quarter 2015 charge to earnings of $8,372,000, before income taxes of approximately $3,106,000, for associated redemption premium, unamortized net deferred loan costs and transaction costs of $3,134,000, net of issuance premium of $3,200,000.
 
Other Notes Payable
– At March 31, 2016 and December 31, 2015, long-term debt includes a 3% interest bearing debt obligation of $1,206,000 and $1,383,000 associated with the purchase of real property at BMS, payable in eight annual installments of $194,000 beginning January 2016.
 
Other General Terms and Conditions
– The Credit Facility and 2023 Senior Notes contain specific requirements and restrictive financial covenants and limits or prohibits various financial and transactional activities, and also contain cross-default and change of control provisions. The Company was in compliance with all applicable covenants under these debt agreements as of March 31, 2016. See Note 6 to the Consolidated Financial Statements included in our 2015 Annual Report for additional information on these debt agreements, including dividend, redemption, and right of payment provisions, pledged security and financial and restrictive covenants.
 
Subsidiary Guarantees
Amounts outstanding under the Credit Facility and 2023 Senior Notes are guaranteed by all of SMI’s material operative subsidiaries except for Oil-Chem and its subsidiaries (which are presently minor). These guarantees are full and unconditional and joint and several with the 2023 Senior Notes on a senior unsecured basis. The parent company has no independent assets or operations. There are no restrictions on the subsidiaries’ ability to pay dividends or advance funds to the parent company.
 
Interest Expense, Net
Interest expense, interest income and capitalized interest costs are summarized as follows (in thousands):
 
   
Three Months Ended
 
   
March 31:
 
   
2016
   
2015
 
Gross interest costs
  $ 3,564     $ 6,365  
Less: capitalized interest costs
    (182
)
    (61
)
Interest expense
    3,382       6,304  
Interest income
    (43
)
    (47
)
Interest expense, net
  $ 3,339     $ 6,257  
Weighted-average interest rate on Credit Facility borrowings
    1.9
%
    1.9
%
 
 
During the first quarter 2015, we incurred net interest expense of $1,688,000 on the former 2019 Senior Notes between January 27, 2015 (issuance date of the new 2023 Senior Notes) and March 13, 2015 (redemption date of the 2019 Senior Notes). The new notes were issued before redemption of the former notes because of a favorable interest rate environment and required notice of redemption to 2019 Senior Note holders by the Company.
Note 6 - Per Share and Other Equity Information
Stockholders Equity and Earnings Per Share [Text Block]
6. PER SHARE AND OTHER EQUITY INFORMATION
 
 
The following schedule reconciles basic and diluted income (loss) per share (where computations are anti-dilutive, reported basic and diluted per share amounts are the same) (in thousands except per share amounts):
 
   
Three Months Ended
 
   
March 31:
 
   
2016
   
2015
 
Net income (loss) applicable to common stockholders and assumed conversions
  $ 861     $ (4,399 )
                 
Weighted average common shares outstanding
    41,227       41,338  
Dilution effect of assumed conversions:
               
Common stock equivalents—stock awards
    17       38  
Weighted average common shares outstanding and assumed conversions
    41,244       41,376  
                 
Basic income (loss) per share
  $ 0.02     $ (0.11
)
Diluted income (loss) per share
  $ 0.02     $ (0.11
)
Anti-dilutive common stock equivalents excluded in computing diluted earnings
per share
    134       163  
 
Stock Repurchase Program
The Company’s Board of Directors has approved a stock repurchase program authorizing SMI to repurchase up to an aggregate of 5,000,000 shares of the Company’s outstanding common stock from time to time, depending on market conditions, share price, applicable limitations under the Company’s debt agreements (see Note 5), and other factors the Board of Directors or its designees, in their sole discretion, may consider relevant. The purchases can be in the open market or private transactions. The stock repurchase program is presently funded using available cash and cash equivalents and may be suspended or discontinued at any time. During the three months ended March 31, 2016, the Company repurchased 61,000 shares of common stock for $1,137,000. As of March 31, 2016, the Company could repurchase up to an additional 633,000 shares under the current authorization. During the three months ended March 31, 2016, the Company repurchased approximately 31,000 shares of common stock for $588,000 from management employees to settle income taxes on 64,000 restricted shares that vested during the period. As of and through March 31, 2016, treasury stock includes 245,000 shares of common stock delivered to the Company for such purposes.
 
Declaration of Cash Dividends
– On February 17, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.15 per share of common stock aggregating $6,249,000, which was paid on March 18, 2016 to shareholders of record as of March 1, 2016. On April 19, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.15 per share of common stock aggregating approximately $6.2 million payable on June 6, 2016 to shareholders of record as of May 16, 2016.
These quarterly cash dividends are being paid using available cash and cash equivalents on hand.
Note 9 - Stock Compensation Plans
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
9. STOCK COMPENSATION PLANS
 
 
 
See Note 11 to the Consolidated Financial Statements in our 2015 Annual Report for additional information and terms of the Company’s stock compensation plans.
 
2013 Stock Incentive Plan
– The Compensation Committee of the Company’s Board of Directors approved grants of 35,000 restricted stock units to the Company’s Chief Executive Officer and President (former Chief Operating Officer until February 2015) and 35,000 shares of restricted stock to the Company’s Vice Chairman and Chief Financial Officer in each of the three months ended March 31, 2016 and 2015. These grants are to be settled in shares of common stock, vest in equal installments over three years and are subject to reaching certain defined full year earnings targets established at the beginning of each year by the Compensation Committee. An additional 65,000 restricted stock units were granted to the Company’s Chief Executive Officer and President in the three months ended March 31, 2015 under the same conditions as described above except with a vesting period of five years. Forfeitures in any given year result from differences between the Company’s actual results for the previous year as compared to the defined full year earnings target.
 
The following is a summary of restricted stock and restricted stock units granted, vested and forfeited under the Incentive Compensation Plan for the indicated periods (shares in thousands):
 
   
Three Months Ended March 31:
 
   
2016
   
2015
 
   
Restricted Stock
   
Restricted Stock
Units
   
Restricted Stock
   
Restricted Stock
Units
 
Outstanding, beginning of period
    67       132       64       64  
Granted
    35       35       35       100  
Vested
    (32
)
    (32
)
    (29
)
    (29
)
Forfeited
    (2
)
    (6
)
    (3
)
    (3
)
Outstanding, end of period
    68       129       67       132  
 
In the three months ended March 31, 2016 and 2015, the Company repurchased 31,000 and 28,000 shares of common stock for $588,000 and $630,000 from executive management employees to settle income taxes on 64,000 and 58,000 shares that vested during the period, respectively.
 
2008 Formula Restricted Stock Plan, Amended and Restated as of April 17, 2012
–The Company awarded 3,994 shares of restricted stock to each of the Company’s four non-employee directors in April 2016. An aggregate of 12,816 shares granted to non-employee directors in April 2015 vested in April 2016, and 16,112 shares granted in April 2014 vested in April 2015. All restricted stock awards were granted and vested in accordance with plan provisions.
 
Share-Based Payments
–There were no significant changes in the characteristics of restricted stock or restricted stock units granted in 2016 or 2015 as compared to prior grants and no modifications of the terms of any share-based payment arrangements. There were no significant changes in estimates, assumptions or valuation methods used to estimate the fair value of share-based payment awards. No stock options were granted under any of the Company’s stock compensation plans during the three months ended March 31, 2016 or 2015. No stock options were exercised in the three months ended March 31, 2016. A total of 18,000 stock options previously granted under the 2004 Plan were exercised in the three months ended March 31, 2015 at an exercise price of $15.83.
 
 
Share-based compensation cost for the three months ended March 31, 2016 and 2015 totaled $867,000 and $796,000, before income taxes of $325,000 and $295,000, respectively, and is included in general and administrative expense. There were no capitalized share-based compensation costs at March 31, 2016 or December 31, 2015. As of March 31, 2016, there was approximately $4,796,000 of total unrecognized compensation cost related to non-vested restricted stock and restricted stock units granted under the 2013 Plan, the 2004 Plan and the 2008 Formula Plan that is expected to be recognized over a weighted average period of 1.2 years. As of March 31, 2016, all stock options were vested and there was no unrecognized compensation cost related to stock options granted under any of the Company’s stock compensation plans.
Note 10 - Segment Disclosures
Segment Reporting Disclosure [Text Block]
10
.
SEGMENT DISCLOSURES
 
The Company’s operations are predominately comprised of promoting, marketing and sponsoring motorsports racing events, merchandising and other related activities conducted at its various major speedway facilities located in the United States. The Company’s business activities, including those of its subsidiaries, are further described in Notes 1 and 2
to the Consolidated Financial Statements in our 2015 Annual Report. The Company’s “motorsports event related” segment consists of revenues and expenses associated with all admissions, event related, NASCAR broadcasting and event motorsports merchandising activities. The segment includes motorsports related events and operations for all Company speedways, NASCAR broadcasting and ancillary media rights, PRN and RCU motorsports radio programming, and SMI Properties and SMI Trackside motorsports merchandising at Company and non-Company speedways. These operating segments have been aggregated into the motorsports related reporting segment as each share similar types and classes of customers, similar methods for providing or distributing motorsports related services, souvenirs and other merchandise, and other similar economic characteristics. The Company’s “all other” operations consist of SMIP subsidiary non-event motorsports and non-motorsports merchandising, Legend Cars non-event merchandising and sanctioning body activities, Oil-Chem micro-lubricant activities, TMS natural gas mineral rights lease and related revenues, and office rentals at certain Company speedways.  
 
Segment information as presented below comports with information the Company’s chief operating decision maker and management use and focus on when assessing segment performance and allocating resources. Segment operating income or loss excludes interest, taxes, other income or expense and specified non-recurring items, if any, and corporate general and administrative and depreciation costs are allocated to operating segments based on their respective revenues relative to consolidated revenues. The following tables present the Company’s segment information (in thousands):
 
   
Three Months Ended March 31:
 
   
2016
   
2015
 
   
Motorsports
Event
Related
   
All
Other
   
Consolidated
   
Motorsports
Event
Related
   
All
Other
   
Consolidated
 
Revenues
  $ 77,276     $ 5,900     $ 83,176     $ 79,500     $ 5,774     $ 85,274  
Depreciation and
amortization
    13,328       43       13,371       13,290       45       13,335  
Segment operating
income
    3,381       1,403       4,784       5,645       1,876       7,521  
Capital expenditures
    18,329       26       18,355       6,070       19       6,089  
 
   
March 31, 2016
   
December 31, 2015
 
Other intangibles
  $ 298,394           $ 298,394     $ 298,394           $ 298,394  
Goodwill
    47,342             47,342       47,342             47,342  
Total assets
    1,537,034     $ 24,453       1,561,487       1,515,206     $ 23,991       1,539,197  
 
 
The following table reconciles segment operating income above to consolidated income or loss before income taxes (in thousands):
 
   
Three Months Ended
 
   
March 31:
 
   
2016
   
2015
 
Total segment operating income
  $ 4,784     $ 7,521  
Adjusted for:
               
Interest expense, net
    (3,339
)
    (6,257
)
Loss on early debt redemption and refinancing (Note 5)
    -       (8,372
)
Other (expense) income, net
    (68
)
    390  
Consolidated income (loss) before income taxes
  $ 1,377     $ (6,718
)
Significant Accounting Policies (Policies)
Quarterly
Reporting
– We recognize revenues and operating expenses for all events in the calendar quarter in which conducted. Changes in race schedules at our speedways from time to time, including speedway acquisitions, can lessen the comparability of operating results between quarterly financial statements of successive years and increase or decrease the seasonal nature of our motorsports business.
The more significant racing schedule change for the three months ended March 31, 2016 as compared to 2015 includes:
 
 
CMS held one major NHRA racing event in the first quarter 2015 that is being held in the second quarter 2016
Poor weather resulted in delaying the start of the NASCAR Sprint Cup race held at Las Vegas Motor Speedway in the first quarter 2016
Income Taxes
– The Company provides for income taxes at the end of each interim period based on management’s best estimate of the annual estimated effective income tax rate. Cumulative adjustments to the Company’s annual estimated effective income tax rate are recorded in the interim period in which a change in the annual estimated effective income tax rate is determined. See Notes 2 and 8 to
the Consolidated Financial Statements in our 2015 Annual Report for additional information on our accounting for income taxes.
 
 
The effective income tax rate for the three months ended March 31, 2016 and 2015 was 37.5% and 34.5%, respectively. The 2015 effective tax rate was reduced by adjustments to certain deferred tax assets, and was 37.1% excluding such adjustments. The Company paid cash of $200,000 and $0 for income taxes in the three months ended March 31, 2016 and 2015.
 
A
ccounting for Uncertainty in Income Taxes
– Income tax liabilities for unrecognized tax benefits approximate $12,280,000 as of March 31, 2016 and December 31, 2015, $11,781,000 of which relates to deferred tax assets associated with the Company’s discontinued operation. At March 31, 2016 and December 31, 2015, $499,000 of those amounts is included in noncurrent other liabilities and $11,781,000 is included in deferred tax liabilities, all of which would favorably impact the Company’s effective tax rate if recognized. As of March 31, 2016 and December 31, 2015, management believes $239,000 of unrecognized tax benefits will be recognized within the next twelve months. During the three months ended March 31, 2016 and 2015, the Company recognized $4,000 and $7,000 of interest and penalties associated with unrecognized tax benefits. As of March 31, 2016 and December 31, 2015, the Company had $173,000 and $169,000 accrued for the payment of interest and penalties on uncertain tax positions, which is included in other noncurrent liabilities. The tax years that remain open to examination include 2006 through 2015 by the California Franchise Tax Board, and 2012 through 2015 by all other taxing jurisdictions to which the Company is subject.
 
Anticipated Income Tax Benefit From Equity Interest Abandonment
On January 31, 2014, the Company abandoned its interest and rights in Motorsports Authentics (former 50% owned, non-controlling interest, merchandising equity investment joint venture) (MA) to focus management resources in areas that may be profitable and more productive. The Company’s carrying value of the investment was reduced to $0 through sizable impairment charges prior to 2010 and MA’s historical operating results. The Company recognized no concurrent tax benefits as valuation allowances were provided against associated deferred tax assets. As a result of abandonment, the Company recognized a material income tax benefit of $48.1 million at December 31, 2013 for the reversal of previously recorded valuation allowances under applicable accounting guidance, and recognized tax losses reported on its 2014 income tax returns. Management believes there is or will be sufficient taxable income in carryback or carryforward periods under tax law for full utilization of these tax losses. The Company reduced income taxes payable by approximately $16.6 million through both March 31, 2016 and December 31, 2015, through utilization of deferred income tax assets, including net operating losses, related to the abandonment.
 
The Company believes it is more likely than not that its filing position would be sustained based on its technical merits upon examination with taxing authorities that have full knowledge of all relevant information. The Company reached this conclusion based on the use of outside legal counsel and other tax consultants and the potential to utilize tax losses. The Company believes it will fully utilize the associated tax losses. Should the Company’s tax position not be fully sustained if examined, an acceleration of material cash income taxes payable could occur. Any differences between the final tax outcome and amounts recorded would affect the Company’s income tax provision in the period in which such determination was made.
 
Other Income Tax
Benefits
– Applicable accounting guidance may require establishing valuation allowances for certain deferred tax assets or income tax liabilities for unrecognized tax benefits, notwithstanding management believes associated tax filing positions are sustainable and are or will be reflected in its tax filings. Should those tax positions not be fully sustained if examined, an acceleration of material income taxes payable could occur. Because no net income tax benefit had been previously reflected because of providing a valuation allowance on related deferred tax assets, the Company’s future results of operations might not be significantly impacted. However, resulting cash required for payments of income taxes could be material in the period in which such determination is made.
Taxes Collected from Customers
– The Company reports sales, admission and other taxes collected from customers on both a gross and net basis in operations. Such taxes reported on a gross basis for the three months ended March 31, 2016 and 2015 amounted to $366,000 and $477,000.
Advertising Expenses
– Event specific advertising costs are expensed when an associated event is held and included principally in direct expense of events. Non-event related advertising costs are expensed as incurred and included principally in other direct operating expense. Advertising expense amounted to $1,927,000 and $2,283,000 in the three months ended March 31, 2016 and 2015. There were no deferred direct-response advertising costs at March 31, 2016 or December 31, 2015.
Fair Value of Financial Instruments
– We follow applicable authoritative guidance which requires that financial and non-financial assets and liabilities measured and reported on a fair value basis be classified, disclosed and categorized as further described below. Fair value estimates are based on relevant market information and single broker quoted market prices where available at a specific point in time, and changes in assumptions or market conditions could significantly affect estimates. The carrying values of cash and cash equivalents, accounts and notes receivable, certain other assets and accounts payable approximate fair value because of the short maturity of these financial instruments. Cash surrender values are carried at fair value based on binding broker quoted market prices. Notes and other receivables and bank revolving credit facility and term loan borrowings are variable interest rate financial instruments and, therefore, carrying values approximate fair value. The fixed rate senior notes payable are publicly traded and estimated fair values are based on single broker quoted market prices. Other long-term debt bears interest approximating market rates or where non-interest bearing is discounted based on estimated current cost of borrowings; therefore, carrying values approximate market value. There have been no changes or transfers between category levels or classes. The following table presents estimated fair values and categorization levels of our financial instruments as of March 31, 2016 and December 31, 2015 (in thousands):
 
 
 
 
 
 
 
 
March 31, 2016
 
 
December 31, 2015
 
 
 
Level
 
Class
 
Carrying
Value
 
 
Fair Value
 
 
Carrying
Value
 
 
Fair Value
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
1
 
R
 
$
79,273
 
 
$
79,273
 
 
$
82,010
 
 
$
82,010
 
Cash surrender values
 
 
2
 
NR
 
 
8,715
 
 
 
8,715
 
 
 
8,551
 
 
 
8,551
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Floating rate revolving Credit Facility, including Term Loan
 
 
2
 
NR
 
 
118,000
 
 
 
118,000
 
 
 
120,000
 
 
 
120,000
 
5.125% Senior Notes Payable due 2023
 
 
2
 
NR
 
 
200,000
 
 
 
205,750
 
 
 
200,000
 
 
 
199,000
 
Other long-term debt
 
 
2
 
NR
 
 
1,206
 
 
 
1,206
 
 
 
1,383
 
 
 
1,383
 
  
Level 1:
Quoted market prices in active markets for identical assets or liabilities.
Level 2:
Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3:
Unobservable inputs that are not corroborated by market data.
Class R:
Measured at fair value on recurring basis, subsequent to initial recognition.
Class NR:
Measured at fair value on nonrecurring basis, subsequent to initial recognition.
Deferred Income, Other Arrangements –
BMS plans to host two collegiate football games in September 2016, one of which is expected to be substantially larger due to team standings and public interest. Under the similar accounting policy for our racing events described above, we plan to continue to defer advance revenues and direct expenses pertaining to this event until held. Advance revenues and associated direct expenses are reflected in current “Deferred race event and other income, net” as of March 31, 2016 and December 31, 2015.
Consolidated Statements of Cash Flows
At times, we collect and temporarily hold cash on behalf of our third-party food and beverage concessionaire which is not remitted until after period end and is presented separately from cash flows from operating activities on the Consolidated Statements of Cash Flows. There are no specific limitations, restrictions or other holding requirements for such cash.
Recently Issued Accounting Standards
– The Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 "Revenue from Contracts with Customers (Topic 606): Section A - Summary and Amendments That Create Revenue from Contracts with Customers and Other Assets and Deferred Costs - Contracts with Customers (Subtopic 340-40)” which enhances comparability and clarifies principles of revenue recognition. The guidance includes the core principle that entities recognize revenue to depict transfers of promised goods or services to customers in amounts that reflect the consideration entities expect to be entitled in exchange for those goods or services. In August 2015, the FASB issued Update No. 2015-14 approving deferral of Update No. 2014-09 for one year, with such guidance now effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the potential impact that adoption may have on its financial statements.
 
The FASB issued Accounting Standards Update No. 2015-03 "Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” which requires that debt issuance costs related to debt liabilities be presented in the balance sheet as a direct deduction from the associated carrying amount, similar to debt discounts. In August 2015, the FASB issued Update No. 2015-15 “Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” which provides guidance on presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements, and indicating the SEC staff would not object to entities deferring and presenting debt issuance costs as an asset and subsequently amortizing deferred debt issuance costs ratably over line-of-credit arrangement terms even if there are no outstanding borrowings. The guidance is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. The Company has chosen to continue deferring and presenting debt issuance costs as an asset and amortize deferred debt issuance costs ratably over line-of-credit arrangement terms. As such, adoption had no impact on its financial statements.
The FASB issued Accounting Standards Update No. 2015-11 "Inventory (Topic 330): Simplifying the Measurement of Inventory” which requires measuring inventory at the lower of cost and net realizable value based on estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation (changed from the previous guidance of lower of cost or market). This update also clarified various other inventory measurement and disclosure requirements. The update does not apply to inventory measured using the LIFO or retail inventory methods. The guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and should be applied prospectively. Early application is permitted. The Company is currently evaluating the potential impact that adoption may have on its financial statements.
  
The FASB issued Accounting Standards Update No. 2016-02 “Leases (Subtopic 842)” which requires lessees to recognize assets and liabilities arising from leases as well as extensive quantitative and qualitative disclosures. Lessees will need to recognize on their balance sheets right-of-use assets and lease liabilities for the majority of their leases (other than leases meeting the definition of a short-term lease). Right-of-use assets will be measured at lease liability amounts, adjusted for lease prepayments, lease incentives received and lessee’s initial direct costs. Lease liabilities will equal the present value of lease payments. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The guidance is required to be applied using the modified retrospective approach for all leases existing as of the effective date, and provides for certain practical expedients. The Company is currently evaluating the potential impact that adoption may have on its financial statements.
 
The FASB issued Accounting Standards Update 2016-09 “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” which changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification of related matters in the statement of cash flows. The guidance is effective for the Company in the first quarter of 2017. The Company is currently evaluating the potential impact that adoption may have on its financial statements.
Note 2 - Significant Accounting Policies and Other Disclosures (Tables)
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]
 
 
 
 
 
 
 
March 31, 2016
 
 
December 31, 2015
 
 
 
Level
 
Class
 
Carrying
Value
 
 
Fair Value
 
 
Carrying
Value
 
 
Fair Value
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
1
 
R
 
$
79,273
 
 
$
79,273
 
 
$
82,010
 
 
$
82,010
 
Cash surrender values
 
 
2
 
NR
 
 
8,715
 
 
 
8,715
 
 
 
8,551
 
 
 
8,551
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Floating rate revolving Credit Facility, including Term Loan
 
 
2
 
NR
 
 
118,000
 
 
 
118,000
 
 
 
120,000
 
 
 
120,000
 
5.125% Senior Notes Payable due 2023
 
 
2
 
NR
 
 
200,000
 
 
 
205,750
 
 
 
200,000
 
 
 
199,000
 
Other long-term debt
 
 
2
 
NR
 
 
1,206
 
 
 
1,206
 
 
 
1,383
 
 
 
1,383
 
Note 3 - Inventories (Tables)
Schedule of Inventory, Current [Table Text Block]
   
March 31,
   
December 31,
 
   
2016
   
2015
 
Finished race cars, parts and accessories
  $ 5,070     $ 5,542  
Souvenirs and apparel
    3,883       2,550  
Micro-lubricant
®
and other
    785       619  
Total
  $ 9,738     $ 8,711  
Note 4 - Goodwill and Other Intangible Assets (Tables)
Schedule of Finite Lived and Indefinite Lived Intangible Assets [Table Text Block]
   
March 31, 2016
   
December 31, 2015
           
   
Gross
Carrying
Value
   
Accumulated Amortization
   
Net
   
Gross
Carrying
Value
   
Accumulated
Amortization
   
Net
   
Estimated
Amortization
Period (Years)
 
Nonamortizable race
event sanctioning and
renewal agreements
  $ 298,383           $ 298,383     $ 298,383           $ 298,383          
Amortizable race event
sanctioning and
renewal agreements
    100     $ (89
)
    11       100     $ (89
)
    11     5 - 6  
Total
  $ 298,483     $ (89
)
  $ 298,394     $ 298,483     $ (89
)
  $ 298,394            
Note 5 - Long-term Debt (Tables)
Interest Income and Interest Expense Disclosure [Table Text Block]
   
Three Months Ended
 
   
March 31:
 
   
2016
   
2015
 
Gross interest costs
  $ 3,564     $ 6,365  
Less: capitalized interest costs
    (182
)
    (61
)
Interest expense
    3,382       6,304  
Interest income
    (43
)
    (47
)
Interest expense, net
  $ 3,339     $ 6,257  
Weighted-average interest rate on Credit Facility borrowings
    1.9
%
    1.9
%
Note 6 - Per Share and Other Equity Information (Tables)
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
   
Three Months Ended
 
   
March 31:
 
   
2016
   
2015
 
Net income (loss) applicable to common stockholders and assumed conversions
  $ 861     $ (4,399 )
                 
Weighted average common shares outstanding
    41,227       41,338  
Dilution effect of assumed conversions:
               
Common stock equivalents—stock awards
    17       38  
Weighted average common shares outstanding and assumed conversions
    41,244       41,376  
                 
Basic income (loss) per share
  $ 0.02     $ (0.11
)
Diluted income (loss) per share
  $ 0.02     $ (0.11
)
Anti-dilutive common stock equivalents excluded in computing diluted earnings
per share
    134       163  
Note 9 - Stock Compensation Plans (Tables)
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]
   
Three Months Ended March 31:
 
   
2016
   
2015
 
   
Restricted Stock
   
Restricted Stock
Units
   
Restricted Stock
   
Restricted Stock
Units
 
Outstanding, beginning of period
    67       132       64       64  
Granted
    35       35       35       100  
Vested
    (32
)
    (32
)
    (29
)
    (29
)
Forfeited
    (2
)
    (6
)
    (3
)
    (3
)
Outstanding, end of period
    68       129       67       132  
Note 10 - Segment Disclosures (Tables)
   
Three Months Ended March 31:
 
   
2016
   
2015
 
   
Motorsports
Event
Related
   
All
Other
   
Consolidated
   
Motorsports
Event
Related
   
All
Other
   
Consolidated
 
Revenues
  $ 77,276     $ 5,900     $ 83,176     $ 79,500     $ 5,774     $ 85,274  
Depreciation and
amortization
    13,328       43       13,371       13,290       45       13,335  
Segment operating
income
    3,381       1,403       4,784       5,645       1,876       7,521  
Capital expenditures
    18,329       26       18,355       6,070       19       6,089  
   
Three Months Ended
 
   
March 31:
 
   
2016
   
2015
 
Total segment operating income
  $ 4,784     $ 7,521  
Adjusted for:
               
Interest expense, net
    (3,339
)
    (6,257
)
Loss on early debt redemption and refinancing (Note 5)
    -       (8,372
)
Other (expense) income, net
    (68
)
    390  
Consolidated income (loss) before income taxes
  $ 1,377     $ (6,718
)
   
March 31, 2016
   
December 31, 2015
 
Other intangibles
  $ 298,394           $ 298,394     $ 298,394           $ 298,394  
Goodwill
    47,342             47,342       47,342             47,342  
Total assets
    1,537,034     $ 24,453       1,561,487       1,515,206     $ 23,991       1,539,197  
Note 1 - Description of Business (Details Textual)
12 Months Ended
Dec. 31, 2015
NASCAR [Member] |
Sprint Cup Series Events [Member]
 
Number of Events Planned
13 
Number of Racing Events
13 
NASCAR [Member] |
Xfinity Series Events [Member]
 
Number of Events Planned
11 
Number of Racing Events
11 
NASCAR [Member] |
Camping World Trucks Series Events [Member]
 
Number of Events Planned
Number of Racing Events
NASCAR [Member] |
K and N Pro Series Events [Member]
 
Number of Events Planned
Number of Racing Events
NASCAR [Member] |
Whelen Modified Tour [Member]
 
Number of Events Planned
Number of Racing Events
NASCAR [Member]
 
Number of Events Planned
24 
Number of Racing Events
24 
Indy Car Series [Member]
 
Number of Events Planned
Number of Racing Events
National Hot Rod Association [Member]
 
Number of Events Planned
Number of Racing Events
Automobile Racing Club of America [Member]
 
Number of Events Planned
Number of Racing Events
World of Outlaws [Member]
 
Number of Events Planned
Number of Racing Events
Note 2 - Significant Accounting Policies and Other Disclosures (Details Textual) (USD $)
3 Months Ended 12 Months Ended 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2013
Dec. 31, 2015
Mar. 31, 2016
Adjustments to Certain Deferred Tax Assets [Member]
Mar. 31, 2016
Other Noncurrent Liabilities [Member]
Dec. 31, 2015
Other Noncurrent Liabilities [Member]
Mar. 31, 2016
Deferred Tax Liabilities [Member]
Dec. 31, 2015
Deferred Tax Liabilities [Member]
Mar. 31, 2016
Discontinued Operations [Member]
Dec. 31, 2015
Discontinued Operations [Member]
Jan. 31, 2014
Motorsports Authentics [Member]
Effective Income Tax Rate Reconciliation, Percent
37.50% 
34.50% 
 
 
37.10% 
 
 
 
 
 
 
 
Income Taxes Paid
$ 200,000 
$ 0 
 
 
 
 
 
 
 
 
 
 
Unrecognized Tax Benefits
12,280,000 
 
 
12,280,000 
 
499,000 
499,000 
11,781,000 
11,781,000 
11,781,000 
11,781,000 
 
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit
239,000 
 
 
239,000 
 
 
 
 
 
 
 
 
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense
4,000 
7,000 
 
 
 
 
 
 
 
 
 
 
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued
173,000 
 
 
169,000 
 
 
 
 
 
 
 
 
Equity Method Investment, Ownership Percentage
 
 
 
 
 
 
 
 
 
 
 
50.00% 
Equity Method Investments
 
 
 
 
 
 
 
 
 
 
 
Income Tax Expense (Benefit)
516,000 
(2,319,000)
48,100,000 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Income Taxes Payable
(16,600,000)
 
 
 
 
 
 
 
 
 
 
 
Excise and Sales Taxes
366,000 
477,000 
 
 
 
 
 
 
 
 
 
 
Advertising Expense
1,927,000 
2,283,000 
 
 
 
 
 
 
 
 
 
 
Deferred Advertising Costs
$ 0 
 
 
$ 0 
 
 
 
 
 
 
 
 
Note 2 - Estimated Fair Values and Categorization Levels of Financial Instruments (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Cash and cash equivalents
$ 79,273 
$ 82,010 
$ 101,557 
$ 110,046 
Reported Value Measurement [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Cash and cash equivalents
79,273 
82,010 
 
 
Reported Value Measurement [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Senior Notes Due 2023 [Member]
 
 
 
 
5.125% Senior Notes Payable due 2023
200,000 
199,000 
 
 
Reported Value Measurement [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Cash surrender values
8,715 
8,551 
 
 
Floating rate revolving Credit Facility, including Term Loan
118,000 
120,000 
 
 
Other long-term debt
1,206 
1,383 
 
 
Estimate of Fair Value Measurement [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Cash and cash equivalents
79,273 
82,010 
 
 
Estimate of Fair Value Measurement [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Senior Notes Due 2023 [Member]
 
 
 
 
5.125% Senior Notes Payable due 2023
205,750 
 
 
 
Estimate of Fair Value Measurement [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Cash surrender values
8,715 
8,551 
 
 
Floating rate revolving Credit Facility, including Term Loan
118,000 
120,000 
 
 
Other long-term debt
$ 1,206 
$ 1,383 
 
 
Note 3 - Inventories Components (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Inventory
$ 9,738 
$ 8,711 
Finished Vehicles Parts and Accessories [Member]
 
 
Inventory
5,070 
5,542 
Souvenirs and Apparel [Member]
 
 
Inventory
3,883 
2,550 
Micro Lubricant and Other [Member]
 
 
Inventory
$ 785 
$ 619 
Note 4 - Goodwill and Other Intangible Assets (Details Textual) (USD $)
3 Months Ended 12 Months Ended
Jun. 30, 2015
Dec. 31, 2015
Mar. 31, 2016
Impairment of Intangible Assets (Excluding Goodwill)
$ 96,530,000 
 
 
Impairment of Intangible Assets Income Tax Expense (Benefit)
34,569,000 
 
 
Goodwill, Impairment Loss
 
2,338,000 
 
Impairment of Goodwill Income Tax Expense Benefit
 
885,000 
 
Goodwill, Fair Value Disclosure
 
 
Goodwill, Impaired, Accumulated Impairment Loss
 
148,600,000 
148,600,000 
Other Intangible Assets, Impaired, Accumulated Impairment Loss
 
$ 99,900,000 
$ 99,900,000 
Note 4 - Gross Carrying Values and Accumulated Amortization by Class of Intangible Asset (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2016
Nonamortizable Race Event Sanctioning and Renewal Agreements [Member]
Dec. 31, 2015
Nonamortizable Race Event Sanctioning and Renewal Agreements [Member]
Mar. 31, 2016
Amortizable Race Event Sanctioning and Renewal Agreements [Member]
Minimum [Member]
Mar. 31, 2016
Amortizable Race Event Sanctioning and Renewal Agreements [Member]
Maximum [Member]
Mar. 31, 2016
Amortizable Race Event Sanctioning and Renewal Agreements [Member]
Dec. 31, 2015
Amortizable Race Event Sanctioning and Renewal Agreements [Member]
Nonamortizable race event sanctioning and renewal agreements
 
 
$ 298,383 
$ 298,383 
 
 
 
 
Amortizable race event sanctioning and renewal agreements
 
 
 
 
 
 
100 
100 
Amortizable race event sanctioning and renewal agreements
(89)
(89)
 
 
 
 
(89)
(89)
Amortizable race event sanctioning and renewal agreements
 
 
 
 
 
 
11 
11 
Amortizable race event sanctioning and renewal agreements
 
 
 
 
5 years 
6 years 
 
 
Total
298,483 
298,483 
 
 
 
 
 
 
Other intangibles
$ 298,394 
$ 298,394 
 
 
 
 
 
 
Note 5 - Long-term Debt (Details Textual) (USD $)
3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended 1 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2016
Mar. 31, 2016
Revolving Credit Facility [Member]
The 2014 Amendment of Bank Credit Facility [Member]
Mar. 31, 2016
Revolving Credit Facility [Member]
Dec. 31, 2015
Revolving Credit Facility [Member]
Mar. 31, 2016
Standby Letters of Credit [Member]
The 2014 Amendment of Bank Credit Facility [Member]
Mar. 31, 2016
Swing Line Loans [Member]
The 2014 Amendment of Bank Credit Facility [Member]
Mar. 31, 2016
Senior Secured Term Loan [Member]
The 2014 Amendment of Bank Credit Facility [Member]
Mar. 31, 2016
Delayed Draw Term Loan [Member]
The 2014 Amendment of Bank Credit Facility [Member]
Mar. 31, 2016
Delayed Draw Term Loan [Member]
The 2019 Senior Notes [Member]
Mar. 31, 2016
Letter of Credit [Member]
The 2014 Amendment of Bank Credit Facility [Member]
Mar. 31, 2016
The 2014 Amendment of Bank Credit Facility [Member]
Subject to Maintaining Certain Financial Covenants [Member]
Mar. 31, 2016
The 2014 Amendment of Bank Credit Facility [Member]
Term Loan [Member]
Mar. 31, 2015
The 2014 Amendment of Bank Credit Facility [Member]
Term Loan [Member]
Dec. 31, 2015
The 2014 Amendment of Bank Credit Facility [Member]
Term Loan [Member]
Mar. 31, 2016
The 2014 Amendment of Bank Credit Facility [Member]
Minimum [Member]
Mar. 31, 2016
The 2014 Amendment of Bank Credit Facility [Member]
Maximum [Member]
Mar. 31, 2016
The 2014 Amendment of Bank Credit Facility [Member]
Mar. 13, 2015
The 2019 Senior Notes [Member]
Mar. 31, 2015
The 2019 Senior Notes [Member]
Mar. 13, 2015
The 2019 Senior Notes [Member]
Jan. 31, 2015
The 2023 Senior Notes [Member]
Mar. 31, 2016
Interest Bearing Debt Associated With BMS Purchase [Member]
Dec. 31, 2015
Interest Bearing Debt Associated With BMS Purchase [Member]
Mar. 13, 2015
Term Loan [Member]
Mar. 31, 2016
Eurodollar [Member]
Minimum [Member]
Mar. 31, 2016
Eurodollar [Member]
Maximum [Member]
Mar. 31, 2016
Eurodollar [Member]
Mar. 31, 2016
Federal Funds Effective Swap Rate [Member]
Mar. 31, 2016
Prime Rate [Member]
Minimum [Member]
Mar. 31, 2016
Prime Rate [Member]
Maximum [Member]
Line of Credit Facility, Maximum Borrowing Capacity
 
$ 100,000,000 
 
 
$ 50,000,000 
$ 10,000,000 
 
$ 50,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 50,000,000 
 
 
 
 
 
 
Debt Instrument, Term
 
 
 
 
 
 
5 years 
5 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Face Amount
 
 
 
 
 
 
150,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
250,000,000 
200,000,000 
 
 
 
 
 
 
 
 
 
Revolving Credit Facility Accordion Feature
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term Loan, Maximum Borrowing Capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Agreement, Maximum Borrowing Capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
250,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument Covenant, Maximum Dividends Payments and Repurchases of Securities
 
 
 
 
 
 
 
 
 
 
75,000,000 
 
 
 
 
 
50,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument Covenant Annual Capital Expenditures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
75,000,000