International Speedway Corp. Annual Report 2016

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FY2016 Annual Report · International Speedway Corp.

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INTERNATIONAL MOTORSPORTS CENTER

One Daytona Boulevard

Daytona Beach, Florida 32114-1252

www.internationalspeedwaycorporation.com

DEAR INTERNATIONAL SPEEDWAY CORPORATION SHAREHOLDERS, PARTNERS AND EMPLOYEES:

At ISC, our vision is to be the leader in motorsports entertainment

by providing superior, innovative and thrilling guest experiences.
We strive to achieve this vision through prudent reinvestment in
our core business and developing strategic partnerships that provide
growth opportunities and long-term sustainable returns.
In 2016, we continued to grow the business and drive shareholder value.
Revenue increased to $661 million and non-GAAP earnings increased to
$1.48 per diluted share. We generated over $239 million from non-GAAP
EBITDA and cash distributions from our joint-venture partnership in the
Hollywood Casino.

~ ATTENDANCE REMAINS PRIORITY ~

ISC announced sell-outs for three NASCAR Cup events during the year:
the DAYTONA 500, Watkins Glen and Ford Championship weekend
at Homestead-Miami Speedway. Our focused consumer marketing
initiatives have proven successful in recent years in the face of
challenging macroeconomic and industry specific headwinds. We
have strengthened these initiatives by partnering with NASCAR and
key industry stakeholders. Our objective is to stabilize attendance and
grow admissions trends with increasing engagement of core and casual
fans through digital and social media distribution channels, continuing
improvements to the live event experience, segmented hospitality
experiences, and thrilling on track competition.

our marketing partners, including our five founding partners, Toyota,
Florida Hospital, Chevrolet, Sunoco and Axalta. The project has
contributed over $15 million in sustainable incremental EBITDA.

~ MAXIMIZING FACILITY UTILIZATION ~

Maximizing facility utilization is a key strategy for us. In 2016, we hosted
three multi-day music festivals, including the fourth annual Faster Horses
in Michigan and inaugural events, HARD Summer in California and the
Country 500 in Daytona. These events are a fitting complement to our
core business while contributing to the Company’s financial performance.

~ DIVERSIFYING THROUGH STRATEGIC DEVELOPMENTS ~

Our joint venture investment in the Hollywood Casino at Kansas
Speedway contributed $14.9 million to equity earnings, an increase of
over 6%, and cash distributions to ISC totaled $25.9 million in fiscal 2016.

ONE DAYTONA, our mixed use real estate development across from
Daytona International Speedway, commenced construction in spring
2016. Construction is progressing on schedule. Anchor tenants, Cobb
Theatres and Bass Pro Shops, opened with great success in December
2016 and February 2017, respectively. The remaining components of
the project are expected to open in late 2017. ONE DAYTONA will cost
approximately $95 million and generate a return greater than ISC cost
of capital.

~ ROBUST MARKETING PARTNERSHIP PLATFORM ~

~ DISCIPLINED CAPITAL ALLOCATION STRATEGY ~

Corporate sales remain a bright spot for ISC. In 2016 gross corporate
partnership revenue increased over 12%, driven mostly by DAYTONA
Rising. The sport remains a great marketing platform for our corporate
partners, providing a high return for their advertising dollar. We remain
optimistic for future growth in this area of the business.

~ STRONG VIEWERSHIP AND CONSUMPTION ~

We continue to support NASCAR and our broadcast partners’ strategy
to remain competitive and relevant with compelling content. The
Monster Energy NASCAR Cup Series attracted significant viewership
consumption, averaging over 4.6 million viewers per weekend, and
ranked as the number one or number two sports broadcast 17 times
during the 2016 season.

~ REINVESTMENT GENERATES GROWTH OPPORTUNITY ~

2016 marked a significant milestone in ISC’s history. DAYTONA
Rising, the $400 million reimagining of Daytona International
Speedway was completed on budget and in time to kick off the 2016
racing season. The new Daytona International Speedway introduced
innovative amenities and experiences for guests to become immersed
in the live event. The stadium, spanning nearly one mile, includes
wider, more-comfortable seating, social zones, Wi-Fi and enhanced
data connectivity, mobile apps with GPS integration, and improved
vertical transportation with an increased number of elevators and
escalators. The new stadium provides an expansive platform for

We maintain a solid financial position, developed over many years,
that affords us the ability to follow our disciplined capital allocation
strategy and maintain our leadership position in the motorsports
industry. Our financial and liquidity position was further strengthened
through the completion of the sale of our Staten Island property in
2016. Return of capital to shareholders through dividends and share
repurchase is a significant pillar of our capital allocation plan. In 2016
we increased our dividend 58% to $0.41 per share and repurchased
1.7 million shares of ISCA totaling $55.1 million. For the future,
we are well positioned to balance the strategic capital needs of our
business with returning capital to our shareholders.

We appreciate your continued support and look forward to seeing you
at the races!

VICE CHAIR AND CHIEF EXECUTIVE OFFICER

PRESIDENT

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10-K

2016

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________
FORM 10-K
________________________________

(Mark One)
ýAnnual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the fiscal year ended November 30, 2016

¨Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from _____ to _____

Commission File Number 000-02384
________________________________

INTERNATIONAL SPEEDWAY CORPORATION
(Exact name of registrant as specified in its charter)
________________________________

FLORIDA

59-0709342

(State or other jurisdiction of incorporation)

(I.R.S. Employer Identification No.)

ONE DAYTONA BOULEVARD,
DAYTONA BEACH, FLORIDA
(Address of principal executive offices)

32114
(Zip code)

Registrant’s telephone number, including area code: (386) 254-2700
________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Class A Common Stock — $.01 par value

Name of each exchange on which registered
NASDAQ/National Market System

Securities registered pursuant to Section 12 (g) of the Act:
Common Stock — $.10 par value
Class B Common Stock — $.01 par value
(Title of Class)
________________________________

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
YES ý NO ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
YES ¨ NO ý

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ý NO ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every
Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter)
during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
YES ý NO ¨

ISC // 2016 ANNUAL REPORT // FORM 10-K // 1

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is
not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ý

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a
smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company”
in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Non-accelerated filer

ý
q (Do not check if a smaller reporting company)

Accelerated filer

¨
Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
YES ¨ NO ý

The aggregate market value of the voting stock held by nonaffiliates of the registrant as of May 31, 2016 was $901,001,669.53
based upon the last reported sale price of the Class A Common Stock on the NASDAQ National Market System on Thursday,
May 31, 2016 and the assumption that all directors and executive officers of the Company, and their families, are affiliates.

At December 31, 2016, there were outstanding: No shares of Common Stock, $.10 par value per share, 25,320,365 shares of
Class A Common Stock, $.01 par value per share, and 19,759,469 shares of Class B Common Stock, $.01 par value per share.

DOCUMENTS INCORPORATED BY REFERENCE. The information required by Part III is to be incorporated by reference
from the definitive information statement which involves the election of directors at our April 2017 Annual Meeting of
Shareholders and which is to be filed with the Commission not later than 120 days after November 30, 2016.

EXCEPT AS EXPRESSLY INDICATED OR UNLESS THE CONTEXT OTHERWISE REQUIRES, “ISC,” “WE,” “OUR,”
“COMPANY,” “US,” OR “INTERNATIONAL SPEEDWAY” MEAN INTERNATIONAL SPEEDWAY CORPORATION, A
FLORIDA CORPORATION, AND ITS SUBSIDIARIES.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 2

INTERNATIONAL SPEEDWAY CORPORATION
FORM 10-K
FOR THE FISCAL YEAR ENDED NOVEMBER 30, 2016

TABLE OF CONTENTS

PART I

ITEM 1. BUSINESS

ITEM 1A. RISK FACTORS

ITEM 1B. UNRESOLVED STAFF COMMENTS

ITEM 2. PROPERTIES

ITEM 3. LEGAL PROCEEDINGS

ITEM 4. MINE SAFETY DISCLOSURES

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED
STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 6. SELECTED FINANCIAL DATA

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 9A. CONTROLS AND PROCEDURES

ITEM 9B. OTHER INFORMATION

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 11. EXECUTIVE COMPENSATION

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
AND DIRECTOR INDEPENDENCE

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

SIGNATURES

4
4

71
71

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72

ISC // 2016 ANNUAL REPORT // FORM 10-K // 3

PART I

ITEM 1. BUSINESS

GENERAL

We are a leading owner of major motorsports entertainment facilities and promoter of motorsports themed entertainment
activities in the United States. Our motorsports themed event operations consist principally of racing events at our major
motorsports entertainment facilities. We currently own and/or operate 13 of the nation’s major motorsports entertainment
facilities:

• Daytona International Speedway® ("Daytona") in Florida;
• Talladega Superspeedway® ("Talladega") in Alabama;

• Michigan International Speedway® ("Michigan") in Michigan;
• Auto Club Speedway of Southern CaliforniaSM ("Auto Club Speedway") in California;
• Kansas Speedway® ("Kansas") in Kansas;
• Richmond International Raceway® ("Richmond") in Virginia;

• Darlington Raceway® ("Darlington") in South Carolina;
• Chicagoland Speedway® ("Chicagoland") in Illinois;

• Martinsville Speedway® ("Martinsville") in Virginia;
• Phoenix International Raceway® ("Phoenix") in Arizona;
• Homestead-Miami SpeedwaySM ("Homestead") in Florida;
• Watkins Glen International® ("Watkins Glen") in New York; and
• Route 66 RacewaySM ("Route 66") in Illinois.

In 2016, these motorsports entertainment facilities promoted well over 100 stock car, open wheel, sports car, truck, motorcycle
and other racing events, including:

• 21 National Association for Stock Car Auto Racing (“NASCAR”) Monster Energy NASCAR Cup Series events;
• 14 NASCAR Xfinity Series events;

• 9 NASCAR Camping World Truck Series events;
• 2 International Motor Sports Association (“IMSA”) Weather Tech SportsCar Championship Series events including the

premier sports car endurance event in the United States, the Rolex 24 At DAYTONA;

• 5 ARCA Racing Series events;
• One National Hot Rod Association (“NHRA”) Mello Yello Drag Racing Series event;

• 2 IndyCar ("IndyCar") Series events; and
• A number of other prestigious stock car, sports car, open wheel and motorcycle events.

Our business consists principally of promoting racing events at these major motorsports entertainment facilities, which, in total,
currently have approximately 762,000 grandstand seats and 573 suites. We earn revenues and generate substantial cash flows
primarily from admissions, television media rights fees, promotion and sponsorship fees, hospitality rentals (including luxury
suites, chalets and the hospitality portion of club seating), advertising revenues, royalties from licenses of our trademarks,
parking and camping, and track rentals. We own Americrown Service Corporation (“Americrown”), which provides catering,
concessions and services at certain of our motorsports entertainment facilities. We also own and operate the Motor Racing
Network, Inc. ("MRN") radio network, also doing business under the name “MRN Radio”, the nation’s largest independent
motorsports radio network in terms of event programming. We also have an equity investment in a Hollywood Casino at
Kansas Speedway that has generated substantial equity earnings and cash distributions to us since its opening in fiscal year
2012.

At the beginning of fiscal 2017, entitlement of NASCAR's premier series changed. The NASCAR Sprint Cup Series will
become the Monster Energy NASCAR Cup Series. Throughout this document, the naming convention for this series is
consistent with the branding in fiscal 2017 for prospective events and will be referred to as NASCAR Cup Series for
retrospective discussion.

INCORPORATION

We were incorporated in 1953 under the laws of the State of Florida under the name “Bill France Racing, Inc.” and changed our
name to “Daytona International Speedway Corporation” in 1957. With the groundbreaking for Talladega Superspeedway in
1968, we changed our name to “International Speedway Corporation.” Our principal executive offices are located at One

ISC // 2016 ANNUAL REPORT // FORM 10-K // 4

Daytona Boulevard, Daytona Beach, Florida 32114, and our telephone number is (386) 254-2700. We maintain a website at
http://www.internationalspeedwaycorporation.com/. The information on our website is not part of this report.

OPERATIONS

The general nature of our business is a motorsports themed amusement enterprise, furnishing amusement to the public in the
form of motorsports themed entertainment. Our motorsports themed event operations consist principally of racing events at our
major motorsports entertainment facilities, which include providing catering, and food and beverage concessions at our
motorsports entertainment facilities that host NASCAR Cup Series events except for catering, and food and beverage
concessions at Chicagoland and Route 66 . Our other operations include MRN; our 50.0 percent equity investment in the joint
venture Kansas Entertainment, LLC ("Kansas Entertainment"), which operates the Hollywood Casino at Kansas Speedway; and
certain other activities including souvenir merchandising operations. We derived approximately 89.1 percent of our 2016
revenues from NASCAR-sanctioned racing events at our wholly owned motorsports entertainment facilities. In addition to
events sanctioned by NASCAR, in fiscal 2016, we promoted other stock car, sports car, open wheel, motorcycle and go-kart
racing events.

Food, Beverage and Merchandise Operations

We conduct, either through operations of the particular facility or through our wholly owned subsidiary, Americrown, food and
beverage concession operations and catering services, both in suites and chalets, for customers at each of our motorsports
entertainment facilities with the exception of food and beverage concessions and catering services at Chicagoland and Route
66. In January 2015, the Company entered into a 10-year agreement with Fanatics Retail Group Concessions, Inc. ("Fanatics")
for Fanatics to have exclusive retail merchandise rights for its track trademarks and certain other intellectual property at all ISC
tracks (see Merchandising Operations in Future Trends In Operating Results of MANAGEMENT'S DISCUSSION AND
ANALYSIS).

Motor Racing Network, Inc.

Our wholly owned subsidiary, MRN, also does business under the name “MRN Radio”. While not a radio station, MRN creates
motorsports-related programming content carried on radio stations around the country, as well as a national satellite radio
service, Sirius XM Radio. MRN produces and syndicates to radio stations live coverage of the Monster Energy NASCAR Cup,
Xfinity and Camping World Truck series races and certain other races conducted at our motorsports entertainment facilities, as
well as some races conducted at motorsports entertainment facilities we do not own. Sirius XM Radio also compensates MRN
for the contemporaneous re-airing of race broadcasts and certain other production services. MRN produces and provides unique
content to its website, http://www.motorracingnetwork.com/, and derives revenue from the sale of advertising on such website.
Each motorsports entertainment facility has the ability to separately contract for the rights to radio broadcasts of NASCAR and
certain other events held at its location. In addition, MRN provides production services for the trackside large screen video
display units, at NASCAR Cup Series event weekends that take place at our motorsports facilities, as well as at Dover
International Speedway and Pocono Raceway. MRN also produces and syndicates daily and weekly NASCAR racing-themed
programs. MRN derives revenue from the sale of national advertising contained in its syndicated programming, the sale of
advertising and audio and video production services for trackside large screen video display units, as well as from rights fees
paid by radio stations that broadcast the programming.

EQUITY INVESTMENTS

Hollywood Casino at Kansas Speedway

We have a 50/50 partnership with Penn Hollywood Kansas Inc. (“Penn”), a subsidiary of Penn National Gaming Inc., which
operates a Hollywood-themed and branded destination entertainment facility, overlooking turn two at Kansas. Penn is the
managing member of Kansas Entertainment and is responsible for the operation of the casino.

Fairfield Inn Hotel at ONE DAYTONA

We have a 33.25 percent equity interest in a partnership with Daytona Hospitality Group II, LLC ("DHGII"), a subsidiary of
Prime-Shaner Groups, to construct and operate a Fairfield Inn hotel. DHGII is the managing member of the Fairfield and will
be responsible for the development and operations of the hotel.

We have entered into additional joint ventures, which are structured similarly to the Fairfield Inn joint venture. These joint
venture projects include The Daytona, a full service Marriott Autograph Collection hotel, and a residential component of the
ONE DAYTONA project (see "Liquidity and Capital Resources - ONE DAYTONA").

ISC // 2016 ANNUAL REPORT // FORM 10-K // 5

Other Activities

From time to time, we use our motorsports entertainment facilities for testing for teams, driving schools, riding experiences, car
shows, auto fairs, concerts, music festivals and settings for television commercials, print advertisements and motion pictures.
We also rent “show cars” for promotional events.

Competition

We are among the largest owners of major motorsports themed entertainment facilities based on revenues, number of facilities
owned and/or operated, number of motorsports themed events promoted and market capitalization. Racing events compete with
other professional sports such as football, basketball, hockey and baseball, as well as other recreational events and activities.
Our events also compete with other racing events sanctioned by various racing bodies such as NASCAR, the American
Sportbike Racing Association — Championship Cup Series, United States Auto Club (“USAC”), Sports Car Club of America
(“SCCA”), IMSA, IndyCar Series, Automobile Racing Club of America (“ARCA”) and others, many of which are often held
on the same dates at separate motorsports entertainment facilities. We believe that the type and caliber of promoted racing
events, facility location, sight lines, pricing, variety of motorsports themed amusement options and level of customer
conveniences and amenities are the principal factors that distinguish competing motorsports entertainment facilities.

Employees

As of November 30, 2016 we had over 792 full-time employees. We also engage a significant number of temporary personnel
to assist during periods of peak attendance at our events, some of whom are volunteers. None of our employees are represented
by a labor union. We believe that we enjoy a good relationship with our employees.

Company Website Access and SEC Filings

The Company’s website may be accessed at http://www.internationalspeedwaycorporation.com/. Through a link on the Investor
Relations portion of our internet website, you can access all of our filings with the Securities and Exchange Commission
(“SEC”). However, in the event that the website is inaccessible our filings are available to the public over the internet at the
SEC’s website at http://www.sec.gov/. You may also read and copy any document we file with the SEC at its public reference
facilities at 100 F Street, NE, Washington, D.C. 20549. You can also obtain copies of the documents at prescribed rates by
writing to the Public Reference Room of the SEC at 100 F Street, NE, Washington, D.C. 20549. Please call the SEC at 1-800-
SEC-0330 for further information on the operation of the public reference facilities. You can also obtain information about us at
the offices of the National Association of Securities Dealers, 1735 K St., N.W., Washington, D.C. 20006.

ITEM 1A. RISK FACTORS

Forward-looking statements

This report contains forward-looking statements. The documents incorporated into this report by reference may also contain
forward-looking statements. You can identify a forward-looking statement by our use of the words “anticipate,” “estimate,”
“expect,” “may,” “believe,” “objective,” “projection,” “forecast,” “goal,” and similar expressions. Forward-looking statements
include our statements regarding the timing of future events, our anticipated future operations and our anticipated future
financial position and cash requirements.

We believe that the expectations reflected in our forward-looking statements are reasonable. We do not know whether our
expectations will ultimately prove correct.

In the section that follows below, in cautionary statements made elsewhere in this report, and in other filings we have made
with the SEC, we list the important factors that could cause our actual results to differ from our expectations. Our actual results
could differ materially from those anticipated in these forward-looking statements as a result of the risk factors described below
and other factors set forth in or incorporated by reference in this report.

These factors and cautionary statements apply to all future forward-looking statements we make. Many of these factors are
beyond our ability to control or predict. Do not put undue reliance on forward-looking statements or project any future results
based on such statements or on present or prior earnings levels.

Additional information concerning these or other factors, which could cause the actual results to differ materially from those in
our forward-looking statements is contained from time to time in our other SEC filings. Copies of those filings are available
from us and/or the SEC.

Adverse changes in our relationships with NASCAR and other motorsports sanctioning bodies, or their sanctioning practices,
could limit our future success

ISC // 2016 ANNUAL REPORT // FORM 10-K // 6

Our success has been, and is expected to remain, dependent on maintaining good working relationships with the organizations
that sanction the races we promote at our facilities, particularly NASCAR. NASCAR-sanctioned races conducted at our wholly
owned motorsports entertainment facilities accounted for approximately 89.1 percent of our total revenues in fiscal 2016.
Previously, each NASCAR sanctioning agreement (and the accompanying media rights fees revenue) was awarded on an
annual basis. In 2015, we entered into sanctioning agreements with five year terms with NASCAR Event Management, Inc.
("NEM"), an affiliate of NASCAR, for the promotion of our inventory of NASCAR Cup, Xfinity and Camping World Truck
Series events. NASCAR is not required to continue to enter into, renew or extend these five year sanctioning agreements with
us to conduct any event. These agreements may be terminated by NASCAR due to a breach by us or should we be unable to
comply with the terms thereof. Any adverse change in these sanctioning practices, or the economic structure of the NASCAR
industry, could adversely impact our operations and revenue. Moreover, while we may pursue the possible development and/or
acquisition of additional motorsports entertainment facilities in the future, we have no assurance that any sanctioning body,
including NASCAR, will enter into sanctioning agreements with us to conduct races at any newly developed or acquired
motorsports entertainment facilities. Failure to obtain a sanctioning agreement for a major NASCAR event could negatively
affect us. Similarly, although NASCAR has in the past approved our requests for realignment of sanctioned events, NASCAR
is not obligated to modify its race schedules to allow us to schedule our races more efficiently or profitably.

Changes to media rights revenues could adversely affect us

Domestic broadcast and certain ancillary media rights fees revenues derived from NASCAR's three national touring series --
the Monster Energy NASCAR Cup Series, Xfinity Series, and Camping World Truck Series -- are an important component of
our revenue and earnings stream and any adverse changes to such rights fees revenues could adversely impact our results.

Any material changes in the media industry that could lead to differences in historical practices or decreases in the term and/or
financial value of future broadcast agreements, such as a significant decrease in subscriber fees or advertising revenues due to
changing consumer habits, could have a material adverse effect on our revenues and financial results.

Changes, declines and delays in consumer and corporate spending as well as illiquid credit markets could adversely affect us

Our financial results depend significantly upon a number of factors relating to discretionary consumer and corporate spending,
including economic conditions affecting disposable consumer income and corporate budgets such as:

• Employment;

• Business conditions;
Interest rates; and
•

• Taxation rates.

These factors can impact both attendance at our events and advertising and marketing dollars available from the motorsports
industry’s principal sponsors and potential sponsors. Economic and other lifestyle conditions such as illiquid consumer and
business credit markets adversely affect consumer and corporate spending thereby impacting our revenue, profitability and
financial results. Further, changes in consumer behavior such as deferred purchasing decisions and decreased spending budgets
adversely impact our cash flow visibility and revenues. For example, the significant economic deterioration that began in fiscal
2008 and the Great Recession significantly impacted these areas of our business and our revenues and financial results.

Unavailability of credit on favorable terms can adversely impact our growth, development and capital spending plans. General
economic conditions may be significantly and negatively impacted by global events such as terrorist attacks, prospects of war,
or global economic uncertainty. A weakened economic and business climate, as well as consumer uncertainty and the loss of
consumer confidence created by such a climate, could adversely affect our financial results. Finally, our financial results could
also be adversely impacted by a widespread outbreak of a severe epidemiological crisis.

Delay, postponement or cancellation of major motorsports events because of weather could adversely affect us

We promote outdoor motorsports entertainment events. Weather conditions affect sales of, among other things, tickets, food,
drinks and merchandise at these events. Poor weather conditions prior to an event, or even the forecast of poor weather
conditions, could have a negative impact on us, particularly for walk-up ticket sales to events which are not sold out in
advance. If an event scheduled for one of our facilities is delayed or postponed because of weather, we could incur increased
expenses associated with conducting the rescheduled event, as well as possible decreased revenues from tickets, food, drinks
and merchandise at the rescheduled event. Moreover, the forecast of poor weather conditions and/or the delay or postponement
of an event due to weather conditions could have a negative impact on renewals for the following year. If such an event is
canceled, we would incur the expenses associated with preparing to conduct the event as well as losing the revenues, including
any live broadcast revenues, associated with the event.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 7

If a canceled event is part of the Monster Energy NASCAR Cup, Xfinity or Camping World Truck series, in the year of
cancellation we could experience a reduction in the amount of money we expect to receive from television revenues for all of
our NASCAR-sanctioned events in the series that experienced the cancellation. This would occur if, as a result of the
cancellation, and without regard to whether the canceled event was scheduled for one of our facilities, NASCAR experienced a
reduction in television revenues greater than the amount scheduled to be paid to the promoter of the canceled event.

Terrorism and/or fear of violence or attacks at mass gatherings could adversely affect us

Acts of terrorism or violence at mass gatherings or sporting events, prospects of war, global economic uncertainty, or a
widespread outbreak of a severe epidemiological crisis, resulting in public fears regarding attendance at sporting events or mass
gatherings, could negatively impact attendance at our events. Any one of these items could increase our expenses related to
insurance, security and other related matters. In addition, the delay, postponement or cancellation of major motorsports events
could have an adverse impact on us such as increased expenses associated with conducting the rescheduled event, as well as
possible decreased revenues from tickets, food, drinks and merchandise at the rescheduled event. If such an event is canceled,
we would incur the expenses associated with preparing to conduct the event as well as losing the revenues, including any live
broadcast revenues, associated with the event.

France Family Group control of NASCAR creates conflicts of interest

Members of the France Family Group own and control NASCAR. James C. France, our Chairman of the Board, and Lesa
France Kennedy, our Vice Chairwoman and Chief Executive Officer, are both members of the France Family Group in addition
to holding positions with NASCAR. Each of them, as well as our general counsel, spends part of his or her time on NASCAR’s
business. Because of these relationships, even though all related party transactions are approved by our Audit Committee,
certain potential conflicts of interest between us and NASCAR exist with respect to, among other things:

• The terms of any sanctioning agreements that may be awarded to us by NASCAR;

• The amount of time the employees mentioned above and certain of our other employees devote to NASCAR’s affairs;

and

• The amounts charged or paid to NASCAR for office rental, transportation costs, shared executives, administrative

expenses and similar items.

France Family Group members, together, beneficially own approximately 41.0 percent of our capital stock and control over
73.0 percent of the combined voting power of both classes of our common stock. Historically members of the France Family
Group have voted their shares of common stock in the same manner. Accordingly, they can (without the approval of our other
shareholders) elect our entire Board of Directors and determine the outcome of various matters submitted to shareholders for
approval, including fundamental corporate transactions and have done so in the past. If holders of class B common stock other
than the France Family Group elect to convert their beneficially owned shares of class B common stock into shares of class A
common stock and members of the France Family Group do not convert their shares, the relative voting power of the France
Family Group will increase. Voting control by the France Family Group may discourage certain types of transactions involving
an actual or potential change in control of us, including transactions in which the holders of class A common stock might
receive a premium for their shares over prevailing market prices.

Our success depends on the availability and performance of key personnel

Our continued success depends upon the availability and performance of our senior management team, which possesses unique
and extensive industry knowledge and experience. Our inability to retain and attract key employees in the future, could have a
negative effect on our operations and business plans.

Our capital allocation plan may not achieve anticipated results

Enhancing the live event experience for our guests by investing in our major motorsports facilities is a critical strategy for our
growth, and our Board of Directors has endorsed a capital allocation plan for fiscal 2013 through fiscal 2017 related to this
strategy, which includes DAYTONA Rising. In fiscal 2016, our Board endorsed a capital allocation plan for fiscal 2017
through fiscal 2021, which includes strategic reinvestment in our motorsports facilities and the development project ONE
DAYTONA. This plan involves significant challenges and risks including that the projects do not advance our business
strategy or that we do not realize a satisfactory return on our investment. It may take longer than expected to realize the full
benefits from these projects, such as increased revenue, or the benefits may ultimately be smaller than anticipated or may not
be realized. These events could harm our operating results or financial condition.

Future impairment or loss on disposal of goodwill and other intangible assets or long-lived assets by us or our equity
investments and joint ventures could adversely affect our financial results

ISC // 2016 ANNUAL REPORT // FORM 10-K // 8

Our consolidated balance sheets include significant amounts of goodwill and other intangible assets and long-lived assets
which could be subject to impairment or loss on retirement. During the fiscal years ended November 30, 2014, 2015 and 2016
we recorded before-tax charges as losses on retirements of long-lived assets primarily attributable to the removal of certain
other long-lived assets located at our motorsports facilities totaling approximately $10.1 million, $16.0 million and
$2.9 million, respectively. As part of our capital projects process, we identify existing assets that are impacted and require the
acceleration of their remaining useful lives. During the fiscal years ended November 30, 2014, 2015, we recorded
approximately $11.1 million and $6.8 million, respectively, of accelerated depreciation. There were no similar costs in fiscal
2016.

As of November 30, 2016, goodwill and other intangible assets and property and equipment accounts for approximately
$1.8 billion, or 80.7 percent of our total assets. We account for our goodwill and other intangible assets in accordance with
Accounting Standards Codification (“ASC”) 350, “Intangibles — Goodwill and Other”, and for our long-lived assets in
accordance with ASC 360, “Property, Plant and Equipment.” Both ASC 350 and 360 require testing goodwill and other
intangible assets and long-lived assets for impairment based on assumptions regarding our future business outlook. While we
continue to review and analyze many factors that can impact our business prospects in the future, our analyses are subjective
and are based on conditions existing at and trends leading up to the time the assumptions are made. Actual results could differ
materially from these assumptions. Our judgments with regard to our future business prospects could impact whether or not an
impairment is deemed to have occurred, as well as the timing of the recognition of such an impairment charge. If future testing
for impairment of goodwill and other intangible assets or long-lived assets results in a reduction in their carrying value, we will
be required to take the amount of the reduction in such goodwill and other intangible assets or long-lived assets as a non-cash
charge against operating income, which would also reduce shareholders’ equity.

In addition, our growth strategy includes investing in certain joint venture opportunities. In these equity investments we exert
significant influence on the investee but do not have effective control over the investee. These equity investments add an
additional element of risk where they may not advance our business strategy or that we do not realize a satisfactory return on
our investment. It may take longer than expected to realize the full benefits from these equity investments, or the benefits may
ultimately be smaller than anticipated or may not be realized. These events could harm our operating results or financial
condition. Our equity investments total approximately $92.4 million at November 30, 2016.

Personal injuries to spectators and participants could adversely affect financial results

Motorsports can be dangerous to participants and spectators. We maintain insurance policies that provide coverage within limits
that we believe should generally be sufficient to protect us from a large financial loss due to liability for personal injuries
sustained by persons on our property in the ordinary course of our business. There can be no assurance, however, that the
insurance will be adequate or available at all times and in all circumstances. Our financial condition and results of operations
could be affected negatively to the extent claims and expenses in connection with these injuries are greater than insurance
recoveries or if insurance coverage for these exposures becomes unavailable or prohibitively expensive.

In addition, sanctioning bodies could impose more stringent rules and regulations for safety, security and operational activities.
Such regulations include, for example, the improvements and additions of energy absorbing retaining walls at our facilities,
which have increased our capital expenditures, and increased safety and security procedures, which have increased our
operational expenses.

We operate in a highly competitive environment

As an entertainment company, our racing events face competition from other spectator-oriented sporting events and other
leisure, entertainment and recreational activities, including professional football, basketball, hockey and baseball. As a result,
our revenues are affected by the general popularity of motorsports, the availability of alternative forms of recreation and
changing consumer preferences and habits, including how consumers consume entertainment. Our racing events also compete
with other racing events sanctioned by various racing bodies such as NASCAR, USAC, NHRA, SCCA, IMSA, ARCA and
others. Many sports and entertainment businesses have resources that exceed ours.

We are subject to changing governmental regulations and legal standards that could increase our expenses

While we believe that our operations are in material compliance with all applicable federal, state and local environmental, laws
and regulations, if it is determined that damage to persons or property or contamination of the environment has been caused or
exacerbated by the operation or conduct of our business or by pollutants, substances, contaminants or wastes used, generated or
disposed of by us, or if pollutants, substances, contaminants or wastes are found on property currently or previously owned or
operated by us, we may be held liable for such damage and may be required to pay the cost of investigation and/or remediation
of such contamination or any related damage. The amount of such liability as to which we are self-insured could be material.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 9

State and local laws relating to the protection of the environment also can include noise abatement laws that may be applicable
to our racing events.

Our existing facilities continue to be used in situations where the standards for new facilities to comply with certain laws and
regulations, including the Americans with Disabilities Act, are constantly evolving. Changes in the provisions or application of
federal, state or local environmental, land use or other laws, regulations or requirements to our facilities or operations, or the
discovery of previously unknown conditions, also could require us to make additional material expenditures to remediate or
attain compliance.

Regulations governing the use and development of real estate may prevent us from advancing certain of our business strategies,
such as real estate development, and could also substantially delay, complicate and/or increase the costs related to the process
of improving existing facilities.

Our business is subject to, and regulated by certain federal, state and foreign privacy and data protection laws and regulations.
Changes in regulations or regulatory activity related to the acquisition, storage and subsequent use of customer information and
data may prevent us from advancing certain of our business strategies or can increase the costs necessary to comply with such
regulations.

If we do not maintain the security of customer-related information, we could damage our reputation with customers, incur
substantial additional costs and become subject to litigation

In the ordinary course of our business, we collect and store certain personal information in digital form, including but not
limited to name, address and payment account information from individuals, such as our customers, employees and business
partners. We also process customer payment card transactions. In addition, our on-line operations depend upon the secure
transmission of confidential, personal and payment account information over public networks, including information permitting
cashless payments. We limit the amount of payment information by using “tokens” which is an industry best practice that does
not require the credit card number to be stored. Significant resources are dedicated both internally and with external experts to
help us manage information security, network security, data encryption, and other security practices to protect our systems and
data, but these security measures cannot provide absolute security. As with all companies, these security measures are costly,
require ongoing monitoring and rapid change due to technology advances, and are subject to third-party security breaches,
cyber terrorism, employee error or malfeasance, intrusion or other unanticipated situations. Such a compromise of our
information systems that results in personal or payment network information being obtained by unauthorized persons could
adversely affect our reputation with our customers, the credit card brands (such as VISA, MasterCard and American Express)
and others. Such a compromise could also adversely affect our operations, results of operations, financial condition and
liquidity, and could result in litigation against us, the imposition of penalties, restrictions or other requirements by regulatory
bodies or the credit card brands. In addition, a security systems breach could require that we expend significant additional
resources related to our information security systems and could result in a disruption of our operations, particularly our sales
operations. While we maintain cyber liability insurance, not all losses would be covered by such insurance. Further, there can
be no assurance that we will be able to maintain such insurance at commercially reasonable rates.

Our quarterly results are subject to seasonality and variability

We derive most of our income from a limited number of NASCAR-sanctioned races. As a result, our business has been, and is
expected to remain, highly seasonal based on the timing of major racing events. Future schedule changes as determined by
NASCAR or other sanctioning bodies, as well as the acquisition of additional, or divestiture of existing, motorsports
entertainment facilities could impact the timing of our major events in comparison to prior or future periods.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None

ISC // 2016 ANNUAL REPORT // FORM 10-K // 10

ITEM 2. PROPERTIES

Motorsports Entertainment Facilities

The following table sets forth current information relating to each of our motorsports entertainment facilities as of
November 30, 2016:

TRACK NAME

LOCATION

SEATS

SUITES

2016 YEAR END
CAPACITY

NASCAR
CUP
EVENTS

OTHER
MAJOR
EVENTS(1)

MARKETS
SERVED

MEDIA
MARKET
RANK

Daytona International
Speedway
Talladega
Superspeedway

Michigan International
Speedway

Auto Club Speedway of
Southern California

Kansas Speedway
Richmond International
Raceway

Darlington Raceway
Chicagoland Speedway

Martinsville Speedway
Phoenix International
Raceway

Homestead-Miami
Speedway

Watkins Glen
International

Route 66 Raceway

Daytona Beach,
Florida
Talladega,
Alabama
Brooklyn,
Michigan
Fontana,
California
Kansas City,
Kansas
Richmond,
Virginia
Darlington,
South Carolina
Joliet, Illinois
Martinsville,
Virginia
Phoenix,
Arizona
Homestead,
Florida
Watkins Glen,
New York
Joliet, Illinois

101,000

124

78,000

71,000

67,000

64,000

59,000

58,000
55,000

55,000

51,000

47,000

32,000
24,000

—

Orlando/Cen
tral Florida

Atlanta/
Birmingham 10/45

Detroit

Los Angeles

Kansas City

Washington
D.C.

Columbia

Chicago

Greensboro/
High Point

Phoenix

Miami

Buffalo/Roc
hester

53/76

(2)

Chicago

(1) Other major events include NASCAR Xfinity and Camping World Truck series; ARCA; IMSA; IndyCar; and, AMA Pro

Racing.

(2) Route 66's other major event includes an NHRA Mello Yello Drag Racing Series event,

DAYTONA INTERNATIONAL SPEEDWAY. Daytona is a 2.5 mile high-banked, lighted, asphalt, tri-oval superspeedway that
also includes a 3.6-mile road course. We lease the land on which Daytona International Speedway is located from the City of
Daytona Beach. The lease on the property expires in 2054, including renewal options. The facility is situated on 440 acres and
is located in Daytona Beach, Florida.

TALLADEGA SUPERSPEEDWAY. Talladega is a 2.7 mile high-banked, asphalt, tri-oval superspeedway with a 1.3-mile
infield road course. The facility is situated on 1,435 acres and is located about 100 miles from Atlanta, Georgia and
approximately 50 miles from Birmingham, Alabama.

MICHIGAN INTERNATIONAL SPEEDWAY. Michigan is a 2.0 mile moderately-banked, asphalt, tri-oval superspeedway.
The facility is situated on 1,180 acres and is located in Brooklyn, Michigan, approximately 70 miles southwest of Detroit.

AUTO CLUB SPEEDWAY OF SOUTHERN CALIFORNIA. Auto Club Speedway is a 2.0 mile moderately-banked, lighted,
asphalt, tri-oval superspeedway. The facility is situated on 566 acres and is located approximately 40 miles east of Los Angeles
in Fontana, California. The facility also includes a quarter mile drag strip and a 2.8-mile road course.

KANSAS SPEEDWAY. Kansas is a 1.5 mile variable-degree banked, asphalt, tri-oval superspeedway with a 0.9-mile infield
road course. The facility is situated on 1,000 acres and is located in Kansas City, Kansas. Overlooking turn two of Kansas is a
Hollywood-themed and branded destination entertainment facility (see Equity Investments).

ISC // 2016 ANNUAL REPORT // FORM 10-K // 11

RICHMOND INTERNATIONAL RACEWAY. Richmond is a 0.8 mile moderately-banked, lighted, asphalt, oval, intermediate
speedway. The facility is situated on 635 acres and is located approximately 10 miles from downtown Richmond, Virginia.

DARLINGTON RACEWAY. Darlington is a 1.3 mile high-banked, lighted, asphalt, egg-shaped superspeedway. The facility is
situated on 230 acres and is located in Darlington, South Carolina.

CHICAGOLAND SPEEDWAY. Chicagoland is a 1.5 mile moderately-banked, lighted, asphalt, tri-oval superspeedway. The
facility is situated on 930 acres and is located in Joliet, Illinois, approximately 35 miles from Chicago, Illinois.

MARTINSVILLE SPEEDWAY. Martinsville is a 0.5 mile moderately-banked, asphalt and concrete, oval speedway. The
facility is situated on 250 acres and is located in Martinsville, Virginia, approximately 50 miles north of Winston-Salem, North
Carolina.

PHOENIX INTERNATIONAL RACEWAY. Phoenix is a 1.0 mile low-banked, lighted, asphalt, oval superspeedway. The
facility is situated on 598 acres that also includes a 1.5-mile road course located near Phoenix, Arizona.

HOMESTEAD-MIAMI SPEEDWAY. Homestead is a 1.5 mile variable-degree banked, lighted, asphalt, oval superspeedway.
The facility is situated on 404 acres and is located in Homestead, Florida. Homestead is owned by the City of Homestead,
however we operate Homestead under an agreement that expires in 2075, including renewal options.

WATKINS GLEN INTERNATIONAL. Watkins Glen includes 3.4-mile and 2.4-mile road course tracks. The facility is situated
on 1,377 acres and is located near Watkins Glen, New York.

ROUTE 66 RACEWAY. Route 66 includes a quarter mile drag strip and dirt oval speedway. The facility, adjacent to
Chicagoland, is situated on 240 acres and is located in Joliet, Illinois, approximately 35 miles from Chicago, Illinois.

OTHER FACILITIES: We own approximately 245 acres of real property near Daytona which is home to our corporate
headquarters, ONE DAYTONA (see “Liquidity and Capital Resources - ONE DAYTONA”) and other offices and facilities. We
also own an additional approximate 3,800 acres, outside the location of the respective racing facilities, that are used for event
parking, camping, other non-motorsport events and ancillary purposes. In addition, we lease real estate and office space in
Talladega, Alabama, Watkins Glen, New York, Concord, North Carolina and Avondale, Arizona.

Intellectual Property

We have various registered and common law trademark rights, including, but not limited to, “California Speedway,”
“Chicagoland Speedway,” “Darlington Raceway,” “The Great American Race,” “Southern 500,” “Too Tough to Tame,”
“Daytona International Speedway,” “ Daytona 500 EXperience,” the “DAYTONA 500,” the “24 Hours of Daytona,”
“Acceleration Alley,” “Daytona Dream Laps,” “Speedweeks,” “World Center of Racing,” “Homestead-Miami Speedway,”
“Kansas Speedway,” “Martinsville Speedway,” “Michigan International Speedway,” “Phoenix International Raceway,”
“Richmond International Raceway,” “Route 66 Raceway,” “The Action Track,” “Talladega Superspeedway,” “Watkins Glen
International,” “The Glen,” “Americrown,” “Motor Racing Network,” “MRN,” and related logos. We also have licenses from
NASCAR, various drivers and other businesses to use names and logos for merchandising programs and product sales. Our
policy is to protect our intellectual property rights vigorously, through litigation, if necessary, chiefly because of their
proprietary value in merchandise and promotional sales.

ITEM 3. LEGAL PROCEEDINGS

From time to time, we are a party to routine litigation incidental to our business. We do not believe that the resolution of any or
all of such litigation will have a material adverse effect on our financial condition or results of operations.

ITEM 4. MINE SAFETY DISCLOSURES

None

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES

At November 30, 2016, we had two issued classes of capital stock: class A common stock, $.01 par value per share, and class B
common stock, $.01 par value per share. The class A common stock is traded on the NASDAQ National Market System under
the symbol “ISCA.” The class B common stock is traded on the Over-The-Counter Bulletin Board under the symbol
“ISCB.OB” and, at the option of the holder, is convertible to class A common stock at any time. As of November 30, 2016,

ISC // 2016 ANNUAL REPORT // FORM 10-K // 12

there were approximately 1,934 record holders of class A common stock and approximately 344 record holders of class B
common stock.

The reported high and low sales prices or high and low bid information, as applicable, for each quarter indicated are as follows:

Fiscal

First Quarter
Second Quarter
Third Quarter
Fourth Quarter

2015

2016

ISCA

ISCB.OB(1)

High

Low

High

Low

32.65 $
38.27
38.06
37.87

28.54 $
30.25
28.96
30.99

32.50 $
37.85
37.23
37.77

36.40 $
37.80
36.23
38.05

29.71 $
31.75
30.30
30.05

37.77 $
37.00
35.03
37.43

30.75
31.35
31.52
31.25

30.40
32.08
32.63
31.23

(1)

ISCB quotations were obtained from the OTC Bulletin Board and represent prices between dealers and do not include
mark-up, mark-down or commission. Such quotations do not necessarily represent actual transactions.

Stock Purchase Plan

An important component of our capital allocation strategy is returning capital to shareholders. We have solid operating margins
that generate substantial operating cash flow. Using these internally generated proceeds, we have returned a significant amount
of capital to shareholders primarily through our share repurchase program.

The Company has a share repurchase program (“Stock Purchase Plan”) under which it is authorized to purchase up to
$330.0 million of its outstanding Class A common shares. In November 2016, the Company's Board of Directors expanded its
Stock Purchase Plan by an incremental $200.0 million bringing its total current authorization to $530.0 million. 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. No shares have been or will be knowingly purchased from Company insiders or
their affiliates.

(d)
Maximum
number
of shares
(or
approximate
dollar
value of
shares)
that may yet
be
purchased
under the
plans or
programs
(in
thousands)

(a) Total
number
of shares
purchased

(b)
Average
price
paid
per
share

1,098,525 $
17,130

34.04
33.49

1,098,525 $
—

24,346

30,400

32.98

30,400

23,343

486,400

31.53

486,400

7,998

42,786
1,675,241

32.55

42,786
1,658,111

206,604

ISC // 2016 ANNUAL REPORT // FORM 10-K // 13

Period

December 1, 2015 — August 31, 2016

Repurchase program(1)
Employee transactions(2)

September 1, 2016 — September 30, 2016

Repurchase program(1)

October 1, 2016 — October 31, 2016

Repurchase program(1)

November 1, 2016 — November 30, 2016

Repurchase program(1)

(1)

Since inception of the Stock Purchase Plan through November 30, 2016, we have purchased 8,722,073 shares of our
Class A common shares, for a total of approximately $323.4 million. There were no purchases, under the Stock Purchase
Plan, of the Company's Class A common shares during fiscal 2014 or 2015. We purchased 1.7 million shares of our
Class A common shares during fiscal 2016, at an average cost of approximately $33.25 per share (including
commissions), for a total of approximately $55.1 million. At November 30, 2016, we have approximately $206.6 million
remaining repurchase authority under the current Stock Purchase Plan.

(2) Represents shares of our common stock delivered to us in satisfaction of the minimum statutory tax withholding

obligation of holders of restricted shares that vested during the period.

Dividends

Annual dividends were declared in the quarter ended in May and paid in June in the fiscal years reported below on all common
stock that was issued at the time (amount per share):

Fiscal Year:

2012
2013
2014
2015
2016

Securities Authorized For Issuance Under Equity Compensation Plans

Equity Compensation Plan Information

Plan Category

Equity compensation plans approved by security holders
Equity compensation plans not approved by security holders

Total

ITEM 6. SELECTED FINANCIAL DATA

Annual
Dividend

0.20
0.22
0.24
0.26
0.41

Number of
securities
remaining
available
for future
issuance
under equity
compensation
plans
(excluding
securities
reflected in
column
(a))
(c)

Number of
securities
to be
issued upon
exercise of
outstanding
options,
warrants
and rights
(a)

Weighted-average
exercise price of
outstanding
options, warrants
and rights
(b)

119,879 $

—
119,879

37.23
—
37.23

314,221
—
314,221

The following table sets forth our selected financial data as of and for each of the last five fiscal years in the period ended
November 30, 2016. The income statement data for the three fiscal years in the period ended November 30, 2016, and the
balance sheet data as of November 30, 2015 and November 30, 2016, have been derived from our audited historical
consolidated financial statements included elsewhere in this report. The balance sheet data as of November 30, 2014, and the
income statement data and the balance sheet data as of and for the fiscal years ended November 30, 2013 and 2012, have been
derived from our audited historical consolidated financial statements, which are available on our website. You should read the
selected financial data set forth below in conjunction with “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” and our consolidated financial statements and the accompanying notes included elsewhere in this report.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 14

For the Year Ended November 30,

2012

2013

2014

2015

2016

(in thousands, except share and per share data)

Income Statement Data:

Revenues:

Admissions, net
Motorsports and other event related
Food, beverage and merchandise (1)
Other

Total revenues

136,099 $
416,699
45,985
13,584
612,367

129,824 $
425,530
44,046
13,240
612,640

129,688 $
433,738
72,880
15,630
651,936

130,154 $
451,838
47,282
16,096
645,370

123,521
477,197
41,968
18,330
661,016

Expenses:

Direct:

NASCAR event management
fees

Motorsports and other event
related

Food, beverage and
merchandise (1)

General and administrative
Depreciation and amortization (2)
Impairments / losses on retirements
of long-lived assets (3)

Total expenses

Operating income
Interest income (4)
Interest expense (5)
Loss on early redemption of debt (6)
Other (7)
Equity in net (loss) income from equity
investments (8)

Income before income taxes
Income taxes

Net income

Basic and diluted earnings per share

Dividends per share
Weighted average shares outstanding:

Basic
Diluted

Balance Sheet Data (at end of period):

Cash and cash equivalents
Working capital
Total assets
Long-term debt
Total debt
Total shareholders’ equity

154,673

159,349

162,988

167,841

171,836

125,072

125,928

128,229

131,109

133,322

35,642
102,958
77,870

11,143
507,358
105,009
102
(13,501 )
(9,144 )
1,008

33,150
104,925
93,989

16,607
533,948
78,692
96
(15,221 )
—
75

58,265
108,563
90,352

10,148
558,545
93,391
2,107
(9,182 )
—
5,380

38,484
111,617
94,727

16,015
559,793
85,577
157
(9,582 )
—
730

2,757
86,231
31,653
54,578 $

9,434
73,076
27,784
45,292 $

8,916
100,612
33,233
67,379 $

14,060
90,942
34,308
56,634 $

1.18 $

0.97 $

1.45 $

1.21 $

0.20 $

0.22 $

0.24 $

0.26 $

30,142
110,828
102,156

2,905
551,189
109,827
270
(13,837 )
—
12,896

14,913
124,069
47,731
76,338

1.66

0.41

46,386,355
46,396,631

46,470,647
46,486,561

46,559,232
46,573,038

46,621,211
46,635,830

45,981,471
45,995,691

78,379 $
50,868
1,941,741
274,419
276,932
1,248,810

172,827 $
153,780
2,017,506
271,680
274,487
1,287,155

158,847 $
110,783
2,077,651
268,311
271,746
1,346,432

160,548 $
146,915
2,119,663
262,762
265,836
1,393,215

263,727
217,802
2,172,660
259,416
262,820
1,400,360

ISC // 2016 ANNUAL REPORT // FORM 10-K // 15

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Fiscal year 2014 includes consolidated operations of Motorsports Authentics (“MA”) following Speedway Motorsports,
Inc.'s ("SMI") abandonment of its interest and rights in SMISC, LLC on January 31, 2014. As a result, ISC recognized
merchandise revenue and operating expenses totaling approximately $25.7 million and $24.7 million, respectively, for
the 10-month period February 1, 2014 through November 30, 2014.

Fiscal year 2013 includes accelerated depreciation that was recorded due to the shortening the service lives of certain
assets associated with DAYTONA Rising and capacity management initiatives totaling approximately $15.4 million.
Fiscal year 2014 includes accelerated depreciation that was recorded due to the shortening the service lives of certain
assets associated with DAYTONA Rising totaling approximately $11.1 million. Fiscal year 2015 includes accelerated
depreciation that was recorded due to the shortening the service lives of certain assets associated with DAYTONA
Rising totaling approximately $6.8 million.

Fiscal 2012 losses associated with the retirements of certain other long-lived assets is primarily attributable to the
removal of certain assets in connection with the repaving of the track at Kansas, and certain other long-lived assets
located at our motorsports facilities. Fiscal 2013 losses associated with the retirements of certain other long-lived assets
is primarily attributable to the removal of assets not fully depreciated in connection with DAYTONA Rising, capacity
management initiatives and other capital improvements. Fiscal 2014 losses associated with demolition costs in
connection with DAYTONA Rising, capacity management initiatives and other capital improvements. Fiscal 2015 losses
associated with demolition costs in connection with DAYTONA Rising and other capital improvements. Fiscal 2016
losses associated with asset retirements and demolition and/or asset relocation costs in connection with capacity
management initiatives at Richmond and other facility capital improvements.

Fiscal 2014 includes approximately $1.8 million related to settlement of interest income on a long-term receivable.

Fiscal 2013, 2014 and 2015 include approximately $0.8 million $7.2 million, and $6.0 million, respectively, related to
capitalized interest for DAYTONA Rising, (see DAYTONA Rising in Liquidity and Capital Resources of
MANAGEMENT'S DISCUSSION AND ANALYSIS). Fiscal 2016 includes approximately $1.5 million related to
capitalized interest for ONE DAYTONA, DAYTONA Rising, and other capital projects.

In fiscal 2012, we recorded a loss on early redemption of debt related to the redemption of $87.0 million of outstanding
senior notes maturing in 2014.

Fiscal 2012 includes the net gain on sale of certain assets. Fiscal 2014 includes the valuation adjustment related to
consolidation of MA, representing the fair value over the carrying value as of January 31, 2014. Fiscal 2016 includes the
receipt of interest and other consideration, of approximately $11.7 million, related to the sale of the Staten Island
property.

Equity in net (loss) income from equity investments includes the Company’s 50.0 percent portion of Kansas
Entertainment’s net income, more fully discussed in Management's Discussion and Analysis, Equity and Other
Investments. Fiscal 2011 includes pre-development operating expenses not capitalized prior to commencement of
operations in February 2012. Fiscal 2012 reflects a partial year of operations from the Casino opening in February 2012
through November 30, 2012. Included in the Company's equity income in fiscal 2013 is a one-time property tax refund
of approximately $1.1 million.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 16

GAAP to Non-GAAP Reconciliation

The following discussion and analysis of our financial condition and results of operations is presented below using other than
U.S. generally accepted accounting principles (“non-GAAP”) and includes certain non-GAAP financial measures as identified
in the reconciliation below. The non-GAAP financial measures disclosed herein do not have standard meaning and may vary
from the non-GAAP financial measures used by other companies or how we may calculate those measures in other instances
from time to time. Non-GAAP financial measures, such as EBITDA, which we interpret to be calculated as GAAP operating
income, plus depreciation, amortization and other non-cash gain or losses, should not be considered a substitute for, or superior
to, measures of financial performance prepared in accordance with U.S. generally accepted accounting principles ("GAAP").
Also, our “core” financial measures should not be construed as an inference by us that our future results will be unaffected by
those items, which are excluded from our “core” financial measures.

We believe such non-GAAP information is useful and meaningful, and is used by investors to assess the performance of our
core operations, which primarily consists of the ongoing promotions of racing events at our major motorsports entertainment
facilities. Such non-GAAP information separately identifies, displays, and adjusts for items that are not considered to be
reflective of our continuing core operations at our motorsports entertainment facilities. We believe that such non-GAAP
information improves the comparability of the operating results and provides a better understanding of the performance of our
core operations for the periods presented.

We use this non-GAAP information to analyze the current performance and trends and make decisions regarding future
ongoing operations. This non-GAAP financial information may not be comparable to similarly titled measures used by other
entities and should not be considered as an alternative to operating income, net income or diluted earnings per share, which are
determined in accordance with GAAP. The presentation of this non-GAAP financial information is not intended to be
considered independent of or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and
non-GAAP information in evaluating and operating the business and as such deemed it important to provide such information
to investors.

The following financial information is reconciled to comparable information presented using GAAP. Non-GAAP net income
and diluted earnings per share below are derived by adjusting amounts determined in accordance with GAAP for certain items
presented in the accompanying selected operating statement data.

The adjustments for 2012 relate to carrying costs of our Staten Island property, settlement of litigation, marketing and
consulting costs incurred associated with DAYTONA Rising, losses associated with the retirements of certain other long-lived
assets, loss on early redemption of debt, and net gain on sale of certain assets.

The adjustments for 2013 relate to carrying costs of our Staten Island property, legal judgment, marketing and consulting costs
incurred associated with DAYTONA Rising, accelerated depreciation associated with DAYTONA Rising and capacity
management initiatives, losses associated with the retirements of certain other long-lived assets, capitalized interest associated
with DAYTONA Rising and net gain on sale of certain assets.

The adjustments for 2014 relate to legal settlement, marketing and consulting costs incurred associated with DAYTONA
Rising, accelerated depreciation, losses associated with the retirements of certain other long-lived assets, impairment of MA
long-lived intangible asset, settlement of interest income related to long-term receivable, DAYTONA Rising project capitalized
interest, MA fair value adjustment and income tax benefits, and net loss on sale of certain assets.

The adjustments for 2015 relate to marketing and consulting costs incurred associated with DAYTONA Rising, accelerated
depreciation, losses associated with the retirements of certain other long-lived assets, DAYTONA Rising project capitalized
interest and net loss on sale of certain assets.

The adjustments for 2016 relate to a legal settlement, certain track redevelopment projects, non-recurring, pre-opening costs
incurred associated with DAYTONA Rising, losses associated with the retirements of certain other long-lived assets related to
capacity management initiatives (which predominately include the removal of grandstands at Richmond) and other facility
capital improvements, capitalized interest related to DAYTONA Rising, ONE DAYTONA and the Phoenix redevelopment
project, gain on sale of Staten Island property, non-cash gain related to the transition of merchandise operations, and net gain on
sale of certain assets (predominately associated with the sale of trailers in association with the transition of merchandise
operations).

ISC // 2016 ANNUAL REPORT // FORM 10-K // 17

For The Year Ended November 30, 2012

Income
Before Taxes

Income Tax
Effect

Net Income

Earnings Per
Share

86,231 $

31,653 $

54,578 $

GAAP
Adjustments:

Carrying costs related to Staten Island
Legal settlement/judgment
DAYTONA Rising project

Losses on retirements of long-lived assets
Loss on early redemption of debt
Net (gain) loss on sale of certain assets

Non-GAAP

4,573
1,175
377
11,143
9,144
(931 )
111,712 $

1,793
461
148
4,368
3,584
(365 )
41,642 $

2,780
714
229
6,775
5,560
(566 )
70,070 $

1.18

0.06
0.01
0.00
0.15
0.12
(0.01 )
1.51

GAAP

Adjustments:

Carrying costs related to Staten Island
Legal settlement/judgment
DAYTONA Rising project
Accelerated depreciation
Losses on retirements of long-lived assets
Capitalized interest
Net (gain) loss on sale of certain assets

Non-GAAP

GAAP

Adjustments:

Legal settlement/judgment

DAYTONA Rising project

Accelerated depreciation

Losses on retirements of long-lived assets

Impairment of MA's long-lived intangible asset

Interest settlement on long-term receivable

Capitalized interest

MA fair value adjustment and income tax benefits

Net (gain) loss on sale of certain assets

For The Year Ended November 30, 2013

Income
Before Taxes

Income Tax
Effect

Net Income

Earnings Per
Share

73,076 $

27,784 $

45,292 $

0.97

2,840
510
1,501
15,392
16,607
(768 )
(75 )
109,083 $

1,112
200
588
6,034
6,510
(301 )
(29 )
41,898 $

1,728
310
913
9,358
10,097
(467 )
(46 )
67,185 $

0.04
0.01
0.02
0.20
0.21
(0.01 )
0.00
1.44

For the Year Ended November 30, 2014

Income
Before Taxes

Income Tax
Effect

Net Income

Earnings Per
Share

100,612 $

33,233 $

67,379 $

1.45

(635 )
1,106
11,117
9,543
605
(1,835 )

(7,215 )

(5,447 )
67

(249 )
434
4,359
3,741
—
(719 )

(2,828 )
4,008
26
42,005 $

(386 )
672
6,758
5,802
605
(1,116 )

(4,387 )

(9,455 )
41
65,913 $

(0.01 )
0.02
0.14
0.12
0.01
(0.02 )

(0.09 )

(0.20 )
0.00
1.42

Non-GAAP

107,918 $

ISC // 2016 ANNUAL REPORT // FORM 10-K // 18

GAAP

Adjustments:

DAYTONA Rising project

Accelerated depreciation

Losses on retirements of long-lived assets

Capitalized interest

Net (gain) loss on sale of certain assets

Non-GAAP

GAAP

Adjustments:

Legal settlement

Track redevelopment projects

DAYTONA Rising project

Losses on retirements of long-lived assets

Capitalized interest

Gain on sale of Staten Island

Gain on transition of merchandise operations

Net (gain) loss on sale of certain assets

For the Year Ended November 30, 2015

Income
Before Taxes

Income Tax
Effect

Net Income

Earnings Per
Share

90,942 $

34,308 $

56,634 $

1.21

1,393
6,830
16,015
(6,006 )

546
2,677
6,280
(2,354 )

847
4,153
9,735
(3,652 )

(730 )
108,444 $

(286 )
41,171 $

(444 )
67,273 $

0.02
0.09
0.21
(0.08 )

(0.01 )
1.44

For the Year Ended November 30, 2016

Income
Before Taxes

Income Tax
Effect

Net Income

Earnings Per
Share

124,069 $

47,731 $

76,338 $

1.66

(1,084 )
240
787
2,905
(1,489 )

(13,631 )

(797 )

(376 )
110,624 $

(418 )
93
304
1,122
(575 )

(5,262 )

(308 )

(666 )
147
483
1,783
(914 )

(8,369 )

(489 )

(145 )
42,542 $

(231 )
68,082 $

(0.02 )
0.01
0.01
0.04
(0.02 )

(0.18 )

(0.01 )

(0.01 )
1.48

Non-GAAP

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

Results of Operations

General

The general nature of our business is a motorsports themed amusement enterprise, furnishing amusement to the public in the
form of motorsports themed entertainment. We derive 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, net” revenue includes ticket sales for all of our racing events and other motorsports activities and amusements,
net of any applicable taxes.

“Motorsports and other event related” revenue primarily includes television and ancillary media rights fees, promotion and
sponsorship fees, hospitality rentals (including luxury suites, chalets and the hospitality portion of club seating), advertising
revenues, royalties from licenses of our trademarks, parking and camping revenues, track rental fees and fees paid by third
party promoters for management of non-motorsports events.

“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.

Direct expenses include (i) NASCAR event management fees, (ii) motorsports and other event related expenses, which include
labor, advertising, costs of competition paid to sanctioning bodies other than NASCAR and other expenses associated with the
promotion of all of our motorsports and other events and activities, and (iii) food, beverage and merchandise expenses,
consisting primarily of labor and costs of goods sold.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 19

We receive distributions from the operations of our 50/50 joint venture in Kansas Entertainment, LLC (see "Equity and Other
Investments - Hollywood Casino at Kansas Speedway").

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. While our estimates and assumptions are based on conditions existing at and trends leading up to
the time the estimates and assumptions are made, actual results could differ materially from those estimates and assumptions.
We continually review our accounting policies, how they are applied and how they are reported and disclosed in the financial
statements.

The following is a summary of our critical accounting policies and estimates and how they are applied in the preparation of the
financial statements.

Basis of Presentation and Consolidation. We consolidate all entities we control by ownership of a majority voting interest and
variable interest entities for which we have the power to direct activities and the obligation to absorb losses. Our judgment in
determining if we consolidate a variable interest entity includes assessing which party, if any, has the power and benefits.
Therefore, we evaluate which activities most significantly affect the variable interest entities economic performance and
determine whether we, or another party, have the power to direct these activities.

We apply the equity method of accounting for our investments in joint ventures and other investees whenever we can exert
significant influence on the investee but do not have effective control over the investee. Our consolidated net income includes
our share of the net earnings or losses from these investees. Our judgment regarding the level of influence over each equity
method investee includes considering factors such as our ownership interest, board representation and policy making decisions.
We periodically evaluate these equity investments for potential impairment where a decline in value is determined to be other
than temporary. We eliminate all significant intercompany transactions from financial results.

Revenue Recognition. Advance ticket sales and event-related revenues for future events are deferred until earned, which is
generally once the events are conducted. The recognition of event-related expenses is matched with the recognition of event-
related revenues.

NASCAR contracts directly with certain network providers for television rights to the entire Monster Energy NASCAR Cup,
Xfinity and Camping World Truck series schedules. Event promoters share in the television rights fees in accordance with the
provision of the sanction agreement for each NASCAR Cup, Xfinity and Camping World Truck series event. 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 Camping World Truck series event as a component of its sanction fees. 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. Ultimately, the promoter retains 65.0 percent of the net cash proceeds from the gross broadcast
rights fees allocated to the event.

Our revenues from marketing partnerships are paid in accordance with negotiated contracts, with the identities of partners and
the terms of sponsorship changing from time to time. Some of our marketing partnership agreements are for multiple facilities
and/or events and include multiple specified elements, such as tickets, hospitality chalets, suites, display space and signage for
each included event. The allocation of such marketing partnership revenues between the multiple elements, events and facilities
is based on relative selling price. The sponsorship revenue allocated to an event is recognized when the event is conducted.

Revenues and related costs from the sale of merchandise to retail customers, internet sales and direct sales to dealers are
recognized at the time of sale.

Business Combinations. All business combinations are accounted for under the acquisition method. Whether net assets or
common stock is acquired, fair values are determined and assigned to the purchased assets and assumed liabilities of the
acquired entity. The excess of the cost of the acquisition over fair value of the net assets acquired is recorded as goodwill.
Business combinations involving existing motorsports entertainment facilities commonly result in a significant portion of the
purchase price being allocated to the fair value of the contract-based intangible asset associated with long-term relationships
manifest in the sanction agreements with sanctioning bodies, such as NASCAR and IMSA series. The continuity of sanction
agreements with these bodies has historically enabled the facility operator to host motorsports events year after year. While
some individual sanction agreements may be of terms as short as one year, sanction agreements with NASCAR's national
touring series' are five years in length and sanction agreements with IMSA are for a three year period. A significant portion of
the purchase price in excess of the fair value of acquired tangible assets is commonly paid to acquire anticipated future cash

ISC // 2016 ANNUAL REPORT // FORM 10-K // 20

flows from events promoted pursuant to these agreements which are expected to continue for the foreseeable future and
therefore, in accordance with ASC 805-50, “Business Combinations,” are recorded as indefinite-lived intangible assets
recognized apart from goodwill.

Capitalization and Depreciation Policies. Property and equipment are stated at cost. Maintenance and repairs that neither
materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Depreciation and
amortization for financial statement purposes are provided on a straight-line basis over the estimated useful lives of the assets.
When we construct assets, we capitalize costs of the project, including, but not limited to, certain pre-acquisition costs,
permitting costs, fees paid to architects and contractors, certain costs of our design and construction subsidiary, property taxes
and interest.

We must make estimates and assumptions when accounting for capital expenditures. Whether an expenditure is considered an
operating expense or a capital asset is a matter of judgment. When constructing or purchasing assets, we must determine
whether existing assets are being replaced or otherwise impaired, which also is a matter of judgment. Our depreciation expense
for financial statement purposes is highly dependent on the assumptions we make about our assets’ estimated useful lives. We
determine the estimated useful lives based upon our experience with similar assets, industry, legal and regulatory factors, and
our expectations of the usage of the asset. Whenever events or circumstances occur which change the estimated useful life of an
asset, we account for the change prospectively. Interest costs associated with major development and construction projects are
capitalized as part of the cost of the project. Interest is typically capitalized on amounts expended using the weighted-average
cost of our outstanding borrowings, since we typically do not borrow funds directly related to a development or construction
project. We capitalize interest on a project when development or construction activities begin, and cease when such activities
are substantially complete or are suspended for more than a brief period.

Impairments / Losses on Retirements of Long-Lived Assets, Goodwill and Other Intangible Assets. Our consolidated balance
sheets include significant amounts of long-lived assets, goodwill and other intangible assets, which could be subject to
impairments / losses on retirements. During the fiscal years ended November 30, 2014, 2015 and 2016 we recorded before-tax
charges as losses on retirements of long-lived assets primarily attributable to costs to remove certain other long-lived assets
located at our motorsports facilities totaling approximately $10.1 million, $16.0 million and $2.9 million, respectively.

As of November 30, 2016, goodwill and other intangible assets and property and equipment account for approximately
$1.8 billion, or 80.7 percent of our total assets. We account for our goodwill and other intangible assets in accordance with
ASC 350 and for our long-lived assets in accordance with ASC 360.

We follow applicable authoritative guidance on accounting for goodwill and other intangible assets which specifies, among
other things, non-amortization of goodwill and other intangible assets with indefinite useful lives and requires testing for
possible impairment, either upon the occurrence of an impairment indicator or at least annually. We complete our annual testing
in our fiscal fourth quarter, based on assumptions regarding our future business outlook and expected future discounted cash
flows attributable to such assets (using the fair value assessment provision of applicable authoritative guidance), supported by
quoted market prices or comparable transactions where available or applicable.

While we continue to review and analyze many factors that can impact our business prospects in the future (as further
described in “Risk Factors”), our analysis is subjective and is based on conditions existing at, and trends leading up to, the time
the estimates and assumptions are made. Different conditions or assumptions, or changes in cash flows or profitability, if
significant, could have a material adverse effect on the outcome of the impairment evaluation and our future condition or
results of operations.

In connection with our fiscal 2016 assessment of goodwill and intangible assets for possible impairment we used the
methodology described above. We believe our methods used to determine fair value and evaluate possible impairment were
appropriate, relevant, and represent methods customarily available and used for such purposes. Our latest annual assessment of
goodwill and other intangible assets in the fourth quarter of fiscal 2016 indicated there had been no impairment and the fair
value substantially exceeded the carrying value for the respective reporting units.

In addition, our growth strategy includes investing in certain joint venture opportunities. In these equity investments we exert
significant influence on the investee but do not have effective control over the investee, which adds an additional element of
risk that could harm our operating results or financial condition. The carrying value of our equity investments were
$92.4 million at November 30, 2016.

Income Taxes. The tax law requires that certain items be included in our tax return at different times than when these items are
reflected in our consolidated financial statements. Some of these differences are permanent, such as expenses not deductible on
our tax return. However, some differences reverse over time, such as depreciation expense, and these temporary differences
create deferred tax assets and liabilities. Our estimates of deferred income taxes and the significant items giving rise to deferred

ISC // 2016 ANNUAL REPORT // FORM 10-K // 21

tax assets and liabilities reflect our assessment of actual future taxes to be paid on items reflected in our financial statements,
giving consideration to both timing and probability of realization. Actual income taxes could vary significantly from these
estimates due to future changes in income tax law or changes or adjustments resulting from final review of our tax returns by
taxing authorities, which could also adversely impact our cash flow.

In the ordinary course of business, there are many transactions and calculations where the ultimate tax outcome is uncertain.
Accruals for uncertain tax positions are provided for in accordance with the requirements of ASC 740, “Income Taxes.” Under
this guidance, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax
position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax
benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a
greater than 50.0 percent likelihood of being realized upon the ultimate settlement. This interpretation also provides guidance
on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities,
accounting for interest and penalties associated with tax positions, and income tax disclosures. Judgment is required in
assessing the future tax consequences of events that have been recognized in our financial statements or tax returns. Although
we believe the estimates are reasonable, no assurance can be given that the final outcome of these matters will not be different
than what is reflected in the historical income tax provisions and accruals. Such differences could have a material impact on the
income tax provision and operating results in the period in which such determination is made.

Contingent Liabilities. Our determination of the treatment of contingent liabilities in the financial statements is based on our
view of the expected outcome of the applicable contingency. In the ordinary course of business, we consult with legal counsel
on matters related to litigation and other experts both within and outside our Company. We accrue a liability if the likelihood of
an adverse outcome is probable and the amount of loss is reasonably estimable. We disclose the matter but do not accrue a
liability if the likelihood of an adverse outcome is reasonably possible and an estimate of loss is not determinable. Legal and
other costs incurred in conjunction with loss contingencies are expensed as incurred.

Equity and Other Investments

Hollywood Casino at Kansas Speedway

Kansas Entertainment, a 50/50 joint venture of 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 is the managing member of Kansas
Entertainment and is responsible for the operations of the casino.

We have accounted for Kansas Entertainment as an equity investment in our financial statements as of November 30, 2016. Our
50.0 percent portion of Kansas Entertainment’s net income was approximately $8.9 million, $14.1 million and $14.9 million for
fiscal years 2014, 2015 and 2016, respectively, and is included in equity in net income from equity investments in our
consolidated statements of operations.

Distributions from Kansas Entertainment, for the year ended November 30, 2016, totaling $25.9 million, consist of
$16.1 million received as a distribution from its profits included in net cash provided by operating activities on our statement of
cash flows; the remaining $9.8 million received was recognized as a return of capital from investing activities on our statement
of cash flows. We received total distributions of approximately $32.1 million in fiscal 2015.

Fairfield Inn Hotel at ONE DAYTONA

Since June 2013, we have pursued development of ONE DAYTONA (see "Liquidity and Capital Resources - ONE
DAYTONA"), the proposed premier mixed use and entertainment destination across from its Daytona International Speedway.
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 will be situated within the ONE DAYTONA development.
As per the partnership agreement, our 33.25 percent share of equity will be limited to our non-cash land contribution and we
will share in the profits and losses from the joint venture proportionately to our equity ownership.

In June 2016, DBR contributed land to the joint venture as per the agreement. Vertical construction of the hotel has commenced
and is expected to open in third quarter of fiscal 2017. DHGII is the managing member of the Fairfield and will be responsible
for the development and operations of the hotel. There were no operations as of November 30, 2016.

As part of the ONE DAYTONA project, we have entered into additional joint ventures, which are structured similarly to the
Fairfield joint venture, where our share of equity will be limited to our non-cash land contribution and we will share in the
profits and losses from the joint venture proportionately to our equity ownership. These joint venture projects include The
Daytona, a full service Marriott Autograph Collection hotel, and a residential component of the ONE DAYTONA project.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 22

Staten Island Property

On August 5, 2013, we announced that we sold our 676 acre parcel of property located in Staten Island, New York, to Staten
Island Marine Development, LLC (“Marine Development”). Marine Development purchased 100 percent of the outstanding
equity membership interests of 380 Development LLC (“380 Development”), a wholly owned indirect subsidiary of ISC and
owner of the Staten Island property, for a total sales price of $80.0 million. In addition, we previously received approximately
$4.2 million for an option provided to the purchaser that is nonrefundable and does not apply to the $80.0 million sales price.

We received $7.5 million, less closing and other administrative costs, of the sales price at closing. The remaining sales price
was financed with us holding a secured mortgage interest in 380 Development as well as the underlying property. The mortgage
balance bore interest at an annual rate of 7.0 percent. In accordance with the terms of the agreement, we have received a
principal payment of approximately $6.1 million plus interest on the mortgage balance through February 29, 2016. The
remaining purchase price of $66.4 million was due in March 2016. We have accounted for the transaction using the cost
recovery method and have deferred the recognition of profit of approximately $1.9 million, and interest totaling approximately
$11.4 million at May 31, 2016, until the carrying amount of the property was recovered, upon final payment.

In March 2016, we completed an assignment of all rights, title and interest in the mortgage and underlying promissory note to
an affiliate of Matrix Development Group, a New York/New Jersey area developer, and received the remaining principal
balance of $66.4 million, plus additional consideration of approximately $0.3 million. We have no further commitments or
contingencies related to the property or its sale. As a result, in the second quarter of fiscal 2016, we recorded a gain of
approximately $13.6 million. The deferred gain of $1.9 million is included in Other operating revenue in our consolidated
statement of operations, and the interest, and additional consideration, received is included in Other in our consolidated
statement of operations.

The net proceeds from the sale, combined with the mortgage interest and related cash tax benefits, has provided us with
approximately $129.8 million in cash through the term of the mortgage.

Income Taxes

The principal causes of the decreased income tax rate for the fiscal year ended November 30, 2014 are the tax treatment related
to the other income recognized as a result of SMI's abandonment of their interest in SMISC, LLC on January 31, 2014,
including the related tax benefits associated with various operating loss and other carryforwards of MA and certain tax filing
positions of SMISC, LLC totaling approximately $4.0 million along with certain state income tax adjustments. The principal
causes of the decreased effective income tax rate as compared to the statutory income tax rate, for the fiscal year ended
November 30, 2015 and 2016 are reductions in certain state tax rates.

As a result of the above items, the Company’s effective income tax rate decreased from the statutory income rate to
approximately 33.0 percent, 37.7 percent and 38.5 percent for the fiscal years ended November 30, 2014, 2015 and 2016,
respectively.

In December 2015, Congress passed the Protecting Americans from Tax Hikes Act which included a retroactive renewal back
to January 1, 2015 of the previously expired tax legislation. The Act extended accelerated depreciation on qualified capital
investments placed into service. This bonus depreciation provision is 50% for qualifying assets placed into service from 2015
through 2017. The impact of this tax legislation did not affect the Company's fiscal 2016 effective tax rate, but correspondingly
reduced the current income tax payable and increased the noncurrent deferred tax liability by $73.4 million.

Future Trends in Operating Results

International Speedway Corporation is the leading owner of major motorsports entertainment facilities and promoter of
motorsports-themed entertainment activities in the United States. We compete for discretionary spending and leisure time with
many other entertainment alternatives and are subject to factors that generally affect the recreation, leisure and sports industry,
including general economic conditions. Our operations are also sensitive to factors that affect corporate budgets. Such factors
include, but are not limited to, general economic conditions, employment and wage levels, business conditions, interest and
taxation rates, relative commodity prices, and changes in consumer tastes and spending habits.

In 2008, an unprecedented global economic crisis began that significantly impacted consumer confidence and
disproportionately affected key demographics of our target customers. Continuing economic uncertainty including the lack of a
broad-based middle class recovery may continue to adversely impact our future attendance, guest spending, and our ability to
grow corporate marketing partnerships all of which could negatively affect revenues and profitability. In fiscal 2009, we
implemented sustainable cost containment initiatives to mitigate declines in certain revenue categories. We are sustaining the
significant cost reductions implemented in previous years and continuously seek ways to improve our operating efficiency
without negatively impacting the guest experience.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 23

Looking to the future, we expect the continuing slow, but uneven, recovery in the broader U.S. economy to provide an
environment for improved attendance-related and corporate partnership revenues. Our industry is also benefiting from
NASCAR securing its broadcast rights through the 2024 season with the largest broadcast rights deal in the sport's 68-year
history. Consistent with major sports properties throughout the world, broadcast rights represent our company's largest revenue
segment. Expanding and extending this contracted revenue will provide us unparalleled long-term cash flow visibility. We also
believe the strategic initiatives and investments we and the motorsports industry have undertaken to grow the sport will
continue to strengthen the long-term health of our Company.

The industry and its stakeholders have demonstrated their commitment to growing the sport by aligning with and executing
upon growth initiatives supporting NASCAR's industry-wide strategic plan whose objective is to build upon NASCAR's appeal
by enhancing the connection with existing fans, as well as attracting and engaging new Gen Y, youth and multicultural
consumers in motorsports. Additional areas of focus include building greater product relevance, cultivating driver star power,
growing social media activities and enhancing the event experience.

A few recent, successful innovations that resulted from NASCAR initiatives that have improved on-track competition and
excitement, include the introduction of refined aerodynamic and downforce specifications providing the driver more control of
the car, knockout group qualifying formats, and overtime rules and enhancements to the Chase for the Championship. In
January 2014 NASCAR announced a new championship format that puts greater emphasis on winning races throughout the
season and expands the current Chase field to 16 drivers. For 2016, the Chase format has been expanded to both Xfinity and
Camping World Truck series events, qualifying 12 drivers and 8 drivers, respectively. The Chase implements a round-by-round
advancement format that ultimately rewards a battle-tested, worthy champion. The format makes every race matter even more,
diminishes points racing, puts a premium on winning races and concludes with a best-of-the-best, first-to-the-finish line
showdown race – all of which is exactly what fans want. The new Chase structure has driven competition to a whole new level
with a thrilling, easy to understand format that we believe translates into greater fan interest and revenue opportunities for these
events. We anticipate continued favorable momentum at our Chase-related events as we move forward.

We support NASCAR's industry strategy on a number of fronts. We are committed to improving our major motorsports
facilities to enhance guest experiences and create stronger fan engagement. Specifically, one of the most ambitious and
important projects in our history is the redevelopment of the frontstretch of the Daytona International Speedway ("Daytona"),
the Company's 57-year-old flagship motorsports facility. The new Daytona International Speedway is the world's first and only
motorsports stadium featuring unique experiences for our guests and providing several new marketing platforms for corporate
partners, broadcasters and industry stakeholders. Fan and stakeholder feedback, related to redevelopment at Daytona, has been
overwhelmingly positive and we were pleased with the financial results after the first full year of events (See "DAYTONA
Rising: Reimagining an American Icon"). We remain confident that elevating the experience at the most important and iconic
motorsports facility in North America will drive further growth for the DAYTONA 500 brand, our 12 other major motorsports
facilities' brands, and the NASCAR brand. We are also confident, that this strategic project will positively influence attendance
trends, corporate involvement in the sport, and the long-term strength of future broadcast media rights revenues.

As part of our strategic plan and updated capital allocation strategy (See "Capital Improvements" and "Growth Strategies"),
ISC recently announced that the Board of Directors approved a project to redevelop the grandstands and infield for Phoenix
International Raceway ("Phoenix"). The project's cost is estimated to be approximately $178.0 million and addresses critical
facility maintenance, enhances the fan experience, provides valuable marketing assets for new sponsorship opportunities, and
creates updated infield amenities including a new 'fanzone'. Phoenix is an attractive asset in ISC's portfolio of tracks with a
number of key attributes that include two major NASCAR Cup series weekends, including the second to the last NASCAR Cup
Series event in the Chase, and a fan-favorite, unique racetrack configuration in the twelfth major media market. Phoenix exists
in an attractive, but competitive marketplace with an exciting opportunity to grow its brand, enhance the facility and guest
experience and provide a sustainable financial return.

Admissions

Driving event sellouts and creating excess demand is key to the optimal performance of our Monster Energy NASCAR Cup
Series events. An important component of our operating strategy continues to be a long-standing focus on supply and demand
when evaluating ticket pricing and adjusting capacity at our facilities. By effectively managing both ticket prices and seating
capacity, we have historically shown the ability to stimulate ticket renewals and advance ticket sales.

Advance ticket sales provide us many benefits such as earlier cash inflow, and reducing the potential negative impact of actual
or forecasted inclement weather. When evaluating ticketing initiatives, we first examine our ticket pricing structure for each
segmented seating area and/or offering within our major motorsports entertainment facilities to ensure prices are on target with
market demand. When determined necessary, we adjust ticket pricing. We believe our ticket pricing philosophy appropriately
factors current demand and provides attractive price points for all income levels and desired fan experiences.

It is important that we maintain the integrity of our ticket pricing model by ensuring our customers who purchase tickets during
the renewal period get preferential pricing. We do not adjust pricing downward inside of the sales cycle to avoid rewarding last-
ISC // 2016 ANNUAL REPORT // FORM 10-K // 24

minute ticket buyers by discounting tickets. Further, we closely monitor and manage the availability of promotional tickets.
Encouraging late cycle buying and offering excess promotional tickets could have a detrimental effect on our ticket pricing
model and long-term value of our business. We believe it is more important to encourage advance ticket sales and maintain
price integrity to achieve long-term growth rather than to capture short-term incremental revenue at the expense of our
customers who purchased tickets during the renewal period. We continue to implement innovative ticket pricing strategies to
capture incremental admissions revenue including ticket price increases over time as the event nears and adjusting pricing of
specific seats within a section or row with desirable attributes and greater demand.

To provide our guests with the best fan experience possible, we have improved fan amenities such as wider seating, increased
the amount of social zones to promote greater fan interaction/engagement for our guests, and adjusted sight lines for better
viewing. Based on our experience, and the continual evolution of modern sports facilities, ticket demand relies strongly on
creating a more personal experience for the fans. Enhancing the live event experience to differentiate it from the at-home
television viewing experience is a critical strategy for our future growth. Other benefits derived from capacity management
include:

•

•
•

improved pricing power for our events;

enticing more customers to renew or purchase tickets earlier in the sales cycle;

increasing customer retention;

• driving greater attendance to our lead-in events, such as NASCAR's Xfinity and Camping World Truck series events;
• generating stronger interest from corporate sponsors; and

•

creating a more visually compelling event for the television audience.

Other key strategic focus areas designed to build fan engagement and augment the live-event experience include providing
enhanced at-track audio and visual experiences, additional and improved concession and merchandise points-of-sale, creating
more interactive social zones and offering greater wireless connectivity. We continuously monitor market demand, evaluate
customer feedback, and explore next generation live-sports entertainment fan amenities, all of which could further impact how
we manage capacity and spend capital at our major motorsports facilities.

Corporate Partnerships

NASCAR is a powerful brand with a loyal fan base that we believe is aware of, appreciates and supports corporate participation
to a greater extent than fans of any other sports property. The combination of brand power and fan loyalty provides an attractive
platform for robust corporate partnerships. The number of FORTUNE 500 companies invested in NASCAR remains higher
than any other sport. More than one-in-four FORTUNE 500 companies, and nearly half of FORTUNE 100 companies, use
NASCAR as part of their marketing strategy and the trend is increasing. The number of FORTUNE 500 companies investing in
NASCAR has increased approximately 20.0 percent since fiscal 2008.

We believe that our presence in key metropolitan statistical areas, year-round event schedule, impressive portfolio of major
motorsports events and attractive fan demographics are beneficial as we continue to pursue renewal and expansion of existing
corporate marketing partnerships and establish new corporate relationships. Companies are demanding more quantifiable return
on investment from their sports marketing strategies and our company is focused on delivering enhanced value through our
strategic initiatives. This includes enhanced facilities, more frequent and diverse content at our facilities, and deeper
understanding of and integration with our customers' business, among other things.

We are very encouraged by organic growth of corporate sales and new sales boosted by strong corporate demand from the
grand opening of DAYTONA Rising. For DAYTONA Rising, we have secured five long-term founding partnerships with
Toyota, Florida Hospital, Chevrolet, Sunoco, and most recently Axalta, all of them equal or exceed ten year relationships. We
also continue to see longer deal terms that provide greater long-term income visibility, which allows our sales team to focus on
incremental revenue generation, and more time for sponsor activation.

2017 marks the beginning of a new, exciting era for NASCAR's premiere racing series. The introduction of Monster Energy as
the series entitlement sponsor for the NASCAR Cup Series establishes a new brand identity that is modern, yet embraces the
heritage of NASCAR racing. NASCAR has expressed that Monster Energy will bring greater commitment and activation to the
sponsorship platform including greater exposure to younger demographics.

It is important to note that 2016 was the last year our revenue included agreements between ISC and Sprint, previous series
sponsor, for various inventory and activation rights at ISC racetracks. These agreements were originally formed in the mid-
2000’s, pre-recession. While we currently expect to have similar agreements in place with Monster Energy, we anticipate the
economics of the agreements will result in a one-time reset in 2017. Our current estimate for gross corporate sales is to decline
approximately 1.0 percent in 2017 due to the reset of these agreements. Excluding this one-time reset, at this time, we expect
an increase between 1.0 percent and 2.0 percent in 2017, with escalators in the low-to-mid single digits going forward.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 25

As of January 2017, we have sold all but two Monster Energy NASCAR Cup race entitlements, all but three NASCAR Xfinity
series entitlements, and all except one NASCAR Camping World Truck series entitlements. For fiscal 2017, we have
agreements in place for approximately 76.0 percent of our gross marketing partnership revenue target. This is compared to
fiscal 2016 at this time when we had approximately 75.0 percent of our gross marketing partnership revenue target sold and had
entitlements for one Monster Energy NASCAR Cup and four NASCAR Xfinity entitlements either open or not announced.
With the vast majority of our event entitlements secured, we can focus more resources on official status categories, which will
better position us to meet our gross marketing partnership revenue target for fiscal 2017.

We believe this demonstrates the value proposition for our corporate partners is stronger than ever.

Television Broadcast and Ancillary Media Rights

Domestic broadcast and ancillary media rights fees are ISC's largest revenue source, accounting for approximately 49.2 percent
of 2016 total revenues.

In August 2013, NASCAR finalized multi-platform broadcast rights agreements with NBCUniversal (“NBC”) and FOX
Broadcasting Company ("FOX") for 10 years, beginning in 2015 through the 2024 season, for the broadcast and related rights
for NASCAR's three national touring series. Financial terms were not disclosed but leading industry sources estimate the
combined agreements value at approximately $8.2 billion over the 10 years. The agreements include Spanish-language rights
and the rights to stream authenticated NASCAR content over the broadcasters' affiliated digital platforms. The streaming
and/or video-on-demand rights are often referred to as 'TV Everywhere' rights in the broadcast industry. These rights are
important to the broadcasters, who can monetize alternative digital delivery methods of NASCAR content, and address the
shifting ways people consume live sports content.

FOX has exclusive rights to the first 16 Monster Energy NASCAR Cup Series point races beginning each year with the
prestigious DAYTONA 500. In addition, FOX retains the rights to the NASCAR Cup Series All-Star Race, The Advance Auto
Parts Clash (formerly the Sprint Unlimited), Can-Am Duel, 14 NASCAR Xfinity Series events and the entire NASCAR
Camping World Truck Series. NBC has exclusive rights to the final 20 Monster Energy NASCAR Cup Series points races
including NASCAR’s playoffs, final 19 NASCAR Xfinity Series events, select NASCAR Regional & Touring Series events
and other live content beginning in 2015. In 2017, NASCAR will have 17 Monster Energy Cup races on network television, the
same as 2016.

NASCAR's solid ratings, the strong demand for live sports programming and the proliferation of on-demand content were
significant factors for NASCAR signing the largest broadcast rights deal in the sport's 68-year history.

In August 2013, FOX debuted its 24-hour Fox Sports 1 network to compete with ESPN. Fox Sports 1 is available in
approximately 86 million television households. In addition to NASCAR, Fox Sports 1 has deals for Major League Baseball,
college football and basketball, Ultimate Fighting Championship, Major League Soccer, United States Golf Association, as well
as other sports. Fox Sports 1 represents the latest in the long migration of marquee sports from broadcast television to
cable/satellite, who generally can support a higher investment due to subscriber fees that are not available to traditional
networks. In 2016, Fox Sports 1 broadcast seven live NASCAR Cup events and eleven NASCAR Xfinity events. NASCAR
events and content are consistently among the highest rated programming on Fox Sports 1.

In January 2, 2012, NBC Sports Network (NBCSN) was re-branded to align NBC owned sports channels with its NBC sports
division, which consists of a unique array of sports assets, including NBC Sports, NBC Olympics, NBC Sports Network
("NBCSN") , Golf Channel, 10 NBC Sports Regional Networks, NBC Sports Radio and NBC Sports Digital (Sports Live
Extra). NBCSN is available in approximately 78 million pay television homes. NBC Sports Group possesses an unparalleled
collection of television rights agreements, and in addition to NASCAR partners with some of the most prestigious sports
properties in the world including the International Olympic Committee and United States Olympic Committee, the NFL, NHL,
PGA TOUR, The R&A, PGA of America, Churchill Downs, Premier League, Tour de France, French Open, Formula One,
IndyCar and many more. In 2016, NBCSN broadcast twelve NASCAR Cup events and thirteen NASCAR Xfinity events,
which represented some of the highest rated programming for NBCSN.

Specific events, such as the impact of inclement weather for events in the current and/or prior year, and from media
competition faced from the 2016 Summer Olympics and the 2016 Presidential campaign, impacts year over year comparability
of television ratings.

NASCAR continues to deliver strong audiences in a changing media consumption environment. Even as fans of all sporting
events choose to consume content through digital and social media alternatives in addition to television viewing, NASCAR's
live television draw is powerful. NASCAR Cup events ranked as the number one or two sports broadcast of the weekend
seventeen times during the 2016 season with the premier series events averaging approximately 4.6 million viewers per
broadcast and approximately 58.0 million total unique television viewers.
ISC // 2016 ANNUAL REPORT // FORM 10-K // 26

During 2016, ratings on FOX declined versus prior year, paralleling the general trend in 2016 for sports viewership and media
consumption. Notable other marquee sports events saw 2016 viewership declines including the Super Bowl, NCAA Final Four,
the Kentucky Derby and the Masters. However, Fox Sports 1 NASCAR ratings increased approximately 3.8% versus 2015
demonstrating that value the NASCAR product brings to the sports network.

In 2016, NASCAR Cup Races on NBC and NBCSN began with a successful kickoff in Daytona for the July NASCAR
weekend resulting in the most-watched summer Daytona race since 2011, with 5.7 million viewers. Some significant 2016
season highlights for NBCSN include the number one most watched NBCSN telecast in record for the Brickyard 400 Cup
event, and NASCAR Cup races now account for the five most watched telecasts ever on that network. Finally, the NASCAR
Cup Championship race from Miami was the second most-watched NASCAR season championship since 2011 and at peak
recorded 8.4 million viewers per minute.

Domestic broadcast media rights fees provide significant cash flow visibility to us, race teams and NASCAR over the contract
term. Television broadcast and ancillary rights fees received from NASCAR for the NASCAR Cup, Xfinity and Camping
World Truck series events conducted at our facilities under these agreements, and recorded as part of motorsports related
revenue, were approximately $302.9 million, $314.5 million and $325.1 million for fiscal 2014, 2015 and 2016, respectively.
Operating income generated by these media rights were approximately $220.1 million, $228.4 million and $236.7 million for
fiscal 2014, 2015 and 2016, respectively.

As media rights revenues fluctuate so do the variable costs tied to the percentage of broadcast rights fees required to be paid to
competitors as part of NASCAR Cup, Xfinity and Camping World Truck series sanction agreements. NASCAR event
management fees ("NEM" or “NASCAR direct expenses”) are outlined in the sanction agreement for each event and are
negotiated in advance of an event. As previously discussed, included in these NASCAR direct expenses are amounts equal to
25.0 percent of the gross domestic television broadcast rights fees allocated to our NASCAR Cup Cup, Xfinity and Camping
World Truck series events, as part of NASCAR event management fees (See “Critical Accounting Policies and Estimates -
Revenue Recognition”). The NASCAR event management fees are contracted from 2016 through 2020 under the five-year
sanction agreements (see Sanctioning Bodies) and paid to NASCAR to contribute to the support and growth of the sport of
NASCAR stock car racing through payments to the teams and sanction fees paid to NASCAR. As such, we do not expect these
costs to materially decrease in the future as a percentage of admissions and motorsports related income.

Digital Media Content

A 2016 digital media study conducted by Deloitte confirmed that the current dynamic media landscape is transforming as a
result of new technologies available and the evolving ways people choose to consume media content. A few of the study's key
findings are as follows:

• The study evaluated the key segments of the U.S. adult population for technology and consumption preferences.

Millennials, defined as adults born after 1983, now make up the largest single segment of generational consumers at
33% of the adult population.

• Across all generations, smart phones are the highest valued technology product device, far outweighing flat-screen

TV's.

• Nearly a quarter of the U.S. population own a streaming media device, and nearly half of U.S. consumers subscribe to

a streaming video service.

• Millennials spend approximately 50% of their time watching movies and TV shows on a device other than a

television, with 20% watching on mobile devices.

• Checking social networks is a daily habit for more than half of all U.S. consumers, skewing much higher for younger

demographics.

• Social media has surpassed television as the most popular source of news for millennials.

Even though the environment is changing, content is still in high-demand regardless of how it is consumed. However, these
statistics point to the importance of providing content through multiple, alternative channels as the importance of digital and
social delivery methods continues to progress.

A key plank of NASCAR's strategy is to continue developing rich content and ensuring its delivery through all of the potential
ways that people consume media, whether through traditional television viewership, dynamic web/mobile content, and/or
through social-media channels. In addition, NASCAR continuously measures content consumption with balanced metrics that
track all the distribution channels to measure the effectiveness of television, digital channels, and social media interest and
demand. On the digital front, NASCAR is continually enhancing NASCAR.com and NASCAR Mobile applications to
strengthen the Industry's digital presence and drive fan engagement. And NASCAR continues to gain critical Industry insights

ISC // 2016 ANNUAL REPORT // FORM 10-K // 27

from the Fan and Media Engagement Center to better understand digital conversations and optimize engagement with the social
community.

Through the 2016 NASCAR season, NASCAR has experienced mostly positive results with its digital product offerings
experiencing steady overall growth. Digital media held strong delivering approximately 55.0 million unique visitors to
NASCAR.com, NASCAR Mobile web and NASCAR Mobile applications.

Two bright spots in the 2016 season are growth of fans using NASCAR related mobile applications, which is up approximately
8.0 percent year-over-year; and growth in the all-important male 18-34 year old demographic. In addition, as the NASCAR
season concluded on NBC, consumption of NASCAR content on NBC Sports’ digital properties (NBCSports.com, the NBC
Sports app and connected devices) garnered 105 million live minutes and 873,000 unique devices this season, up +56% and
+50%, respectively, compared to the 2015 NASCAR season. These reflect positive digital metric trends and demonstrate
progress in NASCAR's key strategic focus areas. On the social media front NASCAR's platforms combined to generate over
4.0 billion social impressions and 256.0 million fan engagements in 2016. Overall, social media reach continues to increase this
year with Facebook growing by almost 20.0 percent the prior year, and Twitter increased by more than 24.0 percent versus
prior year. This tremendous growth in reach and engagement is a direct result of our Industry's strategic initiatives and a
testament to the broader audience of NASCAR and what can be done with targeted activation. We expect these channels to
continue to grow and believe the industry is well positioned to monetize these channels as our fans (mirroring society-at-large)
consume more content.

Along with NASCAR, we closely monitor changes in the television and media landscape. As the media landscape continues to
evolve we believe we are well positioned to navigate because of our long-term partnerships with industry leaders FOX and
NBC, who own the rights to digital distribution of NASCAR content through our current broadcast agreement through 2024.
Collectively we view the shifts in media consumption as positives for consumers and provides our sport the opportunity to
develop and deliver compelling content in rich and diverse ways to interact with our fans. In addition, NASCAR continuously
monitors the broadcast environment and seeks to maximize its return on content with our partners and for the industry
stakeholders.

Sanctioning Bodies

Our success has been, and is expected to remain, dependent on maintaining good working relationships with the organizations
that sanction events at our facilities, particularly with NASCAR, whose sanctioned events at our wholly owned facilities
accounted for approximately 89.1 percent of our revenues in fiscal 2016. NASCAR continues to entertain and discuss proposals
from track operators regarding potential realignment of their portfolio of NASCAR Cup series dates to more geographically
diverse and potentially more desirable markets where there may be greater demand, resulting in an opportunity for increased
revenues to the track operators. We believe that realignments have provided, and will continue to provide, incremental net
positive revenue and earnings as well as further enhance the sport's exposure in highly desirable markets, which we believe
benefits the sport's fans, teams, sponsors and television broadcast partners as well as promoters.

In October 2015, we entered into five year sanction agreements with NEM, an affiliate of NASCAR, for the promotion of the
Company’s inventory of NASCAR Cup, Xfinity and Camping World Truck Series events. In fiscal 2016, we conducted 21
NASCAR Cup Series events, 14 NASCAR Xfinity Series events, and 9 NASCAR Camping World Truck Series events. Each
Sanction Agreement is for a term of five years. Other than the term, the Sanction Agreements are substantially similar to those
entered into in previous years. The Sanction Agreements contain annual increases of between 3.0 percent and 4.0 percent in
media rights fees for each sanctioned event conducted, and provide a specific percentage of media rights fees to be paid to
competitors. The Sanction Agreements also provide for annual increases in sanction fees and non-media rights related prize and
point fund monies (to be paid to competitors) of approximately 4.0 percent annually over the term of the Sanction Agreements.
NASCAR and NEM are controlled by members of the France Family Group which controls approximately 73.4 percent of the
combined voting power of the outstanding stock of the Company, as of November 30, 2016, and some members of which serve
as directors and officers of International Speedway Corporation. The Company strives to ensure, and management believes that,
the terms of the Sanction Agreements transactions are reasonable. Collectively, the media rights fees, sanction fees and non-
media prize and point fund fees that we pay are referred to as NASCAR Event Management fees.

Merchandise Operations

In 2015, NASCAR and NASCAR Team Properties announced a 10-year agreement with Fanatics, to operate NASCAR’s entire
at-track merchandise business and deliver fans an enhanced, experiential at-track shopping environment. As part of the
agreement, Fanatics became the exclusive retailer of NASCAR and driver merchandise at trackside for all 38 NASCAR Cup
Series events. In addition, we also contracted with Fanatics for 10 years of exclusive retail merchandise rights for our track
trademarks and certain other intellectual property at all of our tracks. The new trackside retail model operated by Fanatics has
evolved from using solely haulers for each specific team or driver to displaying all merchandise in a superstore retail
environment supported by, in instances, smaller satellite retail touch points around the track. The new model provides a more
personal and convenient shopping experience for race fans. We believe this improved trackside merchandise model, combined
ISC // 2016 ANNUAL REPORT // FORM 10-K // 28

with select brand name merchandise and an upgraded on-line and mobile experience, better positions us and the industry to
maximize merchandise sales while delivering top quality experience to our fans. Consequently, our wholly owned subsidiaries,
Americrown and MA, no longer provide at track merchandise to fans at motorsports events and therefore no longer recognize
related revenues and expenses. Instead, we receive a percentage of sales from Fanatics, recorded as part of Food, Beverage and
Merchandise Revenue.

For fiscal 2015, we recognized the following non-recurring transactions associated with the transition:

•

sales of merchandise inventory to Fanatics and wholesale transactions by MA totaling approximately $10.4 million
recognized in food, beverage and merchandise revenue and associated expenses totaling approximately $11.0 million
recognized in food, beverage and merchandise expense;

• general and administrative expenses associated with the transition totaling approximately $1.3 million.

There were no comparable transactions in fiscal 2016.

Comparable merchandise sales per capita utilizing the new superstore shopping model are, on average, approximately
6.0 percent greater than sales per capita using the 'hauler' model employed historically. We expect the new merchandising
model will continue to enhance the event experience for our fans and grow the operating margin contribution from the
merchandise line of business.

Capital Improvements

Enhancing the live event experience for our guests is a key strategic pillar to drive future growth. We compete for the
consumers' discretionary dollar with other entertainment options such as concerts and other major sporting events not just
motorsports events. In addition, fans continue to demonstrate willingness to pay for more unique, immersive, and segmented
experiences that cannot be duplicated at-home. Today's consumer wants improved traffic flow, comfortable and wider seating,
clean and available restroom facilities, more points of sale, enhanced audio and visual engagement, social zones and greater
connectivity. Providing these enhancements often requires capital reinvestment.

We are confident that our focus on driving incremental earnings by improving the fan experience leads to increased ticket sales
and better ticket pricing power, growth in sponsorship and hospitality sales, solidifying prospects for longer-term growth in
broadcast media rights fees agreements, and greater potential to capture market share. We continue to be confident that by
continuing to smartly reinvest to create memorable guest experiences, provide attractive pricing and fantastic racing, we will
generate increased revenues and bottom-line results. This has most recently been evident in the success of our redevelopment
of the frontstretch at Daytona International Speedway (see "Liquidity and Capital Resources - DAYTONA Rising").

While we focus on allocating our capital to generate returns in excess of our cost of capital, certain of our capital improvement
investments may not provide immediate, directly traceable near term positive returns on invested capital but over the longer
term will better enable us to effectively compete with other entertainment venues for consumer and corporate spending. See
Capital Allocation in Liquidity and Capital Resources section of Management's Discussion and Analysis for a complete
discussion of how capital improvements at existing facilities integrates into our overall capital allocation.

Growth Strategies

Our growth strategies also continuously explores ways to grow our businesses through acquisitions and external developments
that offer attractive financial returns and leverage our core competencies. A prime example is our joint venture to develop and
operate a Hollywood-themed and branded entertainment destination facility overlooking turn two of Kansas Speedway (see
“Hollywood Casino at Kansas Speedway”).

The Hollywood Casino at Kansas Speedway provides positive cash flow to us and positive equity income in our consolidated
statement of operations for fiscal 2014, 2015 and 2016. We expect for our 2017 fiscal year that our share of the cash flow from
the casino's operations will be approximately $26.0 million to $27.0 million dollars.

Since June 2013, we have pursued development of ONE DAYTONA, a premier mixed use and entertainment destination across
from the Daytona International Speedway. We have commenced site work on the property, completed construction of the Cobb
Theater, and began vertical construction on other phases of the development. We are targeting phase one completion in late
2017 (see “Liquidity and Capital Resources - ONE DAYTONA”).

We remain interested in pursuing further ancillary developments at certain of our other motorsports facilities which enhance
our core business, are market-driven, and provide a prudent return on investment.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 29

Current Operations Comparison

The following table sets forth, for each of the indicated periods, certain selected statement of operations data as a percentage of
total revenues:

Revenues:

Admissions, net
Motorsports and other event related
Food, beverage and merchandise
Other

Total revenues

Expenses:

Direct:

NASCAR event management fees
Motorsports and other event related
Food, beverage and merchandise

General and administrative
Depreciation and amortization
Losses on retirements of long-lived assets

Total expenses

Operating income
Interest expense, net
Other
Equity in net income from equity investments

Income before income taxes
Income taxes

Net income

Comparison of Fiscal 2016 to Fiscal 2015

For the Year Ended

2014

2015

2016

19.9 %
66.5
11.2
2.4
100.0

25.0
19.7
8.9
16.7
13.9
1.5
85.7
14.3
(1.1 )
0.8
1.4
15.4
5.1
10.3 %

20.2 %
70.0
7.3
2.5
100.0

26.0
20.3
6.0
17.3
14.7
2.4
86.7
13.3
(1.5 )
0.1
2.2
14.1
5.3
8.8 %

18.7 %
72.2
6.3
2.8
100.0

26.0
20.2
4.6
16.7
15.5
0.4
83.4
16.6
(2.1 )
2.0
2.3
18.8
7.2
11.6 %

The comparison of fiscal 2016 to fiscal 2015 is impacted by the following factors:

• Year-over-year increases in operating revenues and expenses are significantly driven by the completion of the

DAYTONA Rising project prior to the first quarter of fiscal 2016 events at Daytona International Speedway
("Daytona");

•

In the second and third quarters of fiscal 2016 we hosted the Country 500 music festival at Daytona and HARD summer
music festival at Auto Club Speedway, respectively. Comparatively, in the third quarter of fiscal 2015, we hosted the
Phish Magnaball music festival at Watkins Glen. For these aforementioned music festivals we earned a facility rental
and certain other fees, and recognized revenues and expenses from the sale of concession operations;

• For fiscal 2015, we recognized non-recurring revenue and expense related to the transition of merchandise operations of
approximately $10.4 million and $12.3 million, respectively. Included in this amount is approximately $6.4 million for
inventory sold to Fanatics and $4.0 million of wholesale transactions by MA. These revenues drove a total of
approximately $12.3 million in expense including product costs associated with the non-recurring transactions, non-
recurring costs related to the transition of trackside merchandise operations to Fanatics, as well as partial period
operating expenses incurred prior to the transition of Americrown and MA merchandise operations, for which there was
no related revenue(see "Future Trends in Operating Results, Merchandise Operations"). There were no comparable
transactions in fiscal 2016;

•

In fiscal 2016, we recognized approximately $0.8 million, or $0.01 per diluted share, in non-recurring, pre-opening
costs that are included in general and administrative expense related to DAYTONA Rising. During fiscal 2015, we
recognized approximately $1.4 million, or $0.02 per diluted share, of similar costs;

ISC // 2016 ANNUAL REPORT // FORM 10-K // 30

•

In fiscal 2016, we recognized approximately $2.9 million, or $0.04 per diluted share, of losses associated with asset
retirements and demolition and/or asset relocation costs in connection with capacity management initiatives and other
facility capital improvements. Included in these losses were approximately $0.5 million of expenditures related to
demolition and/or asset relocation costs, the remaining charges were non-cash charges. During fiscal 2015, we
recognized approximately $16.0 million, or $0.21 per diluted share, of similar charges, in connection with DAYTONA
Rising and capacity management initiatives. Included in these losses were approximately $12.5 million of expenditures
related to demolition and/or asset relocation costs, the remaining charges were non-cash charges;

• During fiscal 2016, we capitalized approximately $1.5 million, or $0.02 per diluted share, of interest related to ONE

DAYTONA, DAYTONA Rising and the redevelopment at Phoenix. During fiscal 2015, we recognized approximately
$6.0 million, or $0.08 per diluted share, of similar interest capitalization related to DAYTONA Rising;

• During fiscal 2016, we completed an assignment of all rights, title and interest in the mortgage and underlying

promissory note of our Staten Island property. As a result, we recorded a gain of approximately $13.6 million, or
0.18 per diluted share, comprised of deferred gain, interest, and other consideration paid. The deferred gain of
$1.9 million is included in Other operating revenue in our consolidated statement of operations, and the interest, and
additional consideration, received is included in Other in our consolidated statement of operations (see "Equity and
Other Investments”). There was no comparable transaction in the prior year;

• During fiscal 2016, we recognized a non-cash gain related to the transition of merchandise operations of approximately

$0.8 million, or $0.01 per diluted share. There was no comparable transaction in the prior year; and

• During fiscal 2016, we received a favorable settlement relating to certain ancillary operations of approximately

$1.1 million or $0.02 per diluted share. There was no comparable activity in the prior year.

Fiscal 2016 admissions revenue decreased approximately $6.6 million, or 5.1 percent compared to fiscal 2015. The decrease is
predominately due to decreased attendance and/or admissions at NASCAR events held at certain of our locations. In addition,
the NASCAR Cup event held at Richmond International Raceway ("Richmond") was moved from its traditional Saturday
evening schedule to a Sunday afternoon time slot, and the threat of inclement weather during the NASCAR events held at
Talladega Superspeedway ("Talladega") also contributed to the decrease. Partially offsetting these decreases were increased
attendance and/or admissions related to DAYTONA Rising for events held during Daytona Speedweeks, including the Daytona
500, Bikeweek events, the Coke Zero 400 and the Rolex 24, as well as NASCAR and IMSA weekends at Watkins Glen.

Motorsports and other event related revenue increased approximately $25.4 million, or 5.6 percent, in fiscal 2016 as compared
to fiscal 2015. The increase is largely attributable to increases in sponsorship and hospitality revenues of approximately
$12.7 million, primarily related to DAYTONA Rising and the events held during Daytona Speedweeks. Also contributing to
the increase were increases in television broadcast revenue of approximately $8.5 million, ancillary rights of approximately
$2.2 million and other track related revenues totaling approximately $1.6 million, as well increased revenues from the
aforementioned music festivals totaling approximately $1.0 million, as compared to the prior year.

Food, beverage and merchandise revenue decreased approximately $5.3 million, or 11.2 percent, in fiscal 2016 as compared to
fiscal 2015. When excluding the aforementioned transition of merchandise operations of approximately $11.1 million, food,
beverage and merchandise revenue increased approximately $5.8 million as compared to the prior year. This increase is
attributed to increased non-motorsports related catering and concessions revenue related to the aforementioned HARD and
Country 500 music festivals of approximately $3.6 million, approximately $1.5 million related to disaster relief efforts in the
Daytona Beach area related to Hurricane Matthew, and increased motorsports related catering and concessions of
approximately $2.5 million. Slightly offsetting the increase was approximately $1.8 million related to the aforementioned Phish
Magnaball music festival held in fiscal 2015, for which the event was not held in fiscal 2016.

NASCAR event management fees increased by approximately $4.0 million, or 2.4 percent, in fiscal 2016 as compared to fiscal
2015. The increase includes approximately $5.6 million attributable to contracted NEM fees, of which approximately
$2.7 million is attributable to the increase in television broadcast rights fees, as NASCAR sanction agreements require a
specific percentage of television broadcast rights fees to be paid to competitors for the NASCAR Sprint Cup, Xfinity and
Camping World Truck series. This increase is offset by the aforementioned Chicagoland Xfinity series held in 2015 for which
there is no comparable events in 2016.

Motorsports and other event related expense increased by approximately $2.2 million, or 1.7 percent, in fiscal 2016 as
compared to fiscal 2015. The increase is attributable to increased purchased services and personnel related expenses for other
events of approximately $2.6 million, higher operating costs of approximately $1.5 million, associated with the opening of the
world's first motorsports stadium at Daytona, and approximately $1.9 million of expenses related to the aforementioned
IndyCar event held at Phoenix in fiscal 2016, which was not held in fiscal 2015. Partially offsetting the increase were

ISC // 2016 ANNUAL REPORT // FORM 10-K // 31

reductions in expenses of approximately $4.0 million, related to certain fiscal 2015 events held at Chicagoland and Auto Club
Speedway which were not held in fiscal 2016. Motorsports and other event related expenses as a percentage of combined
admissions and motorsports and other event related revenue remained consistent at approximately 22.2 percent for fiscal 2016,
as compared to 22.5 percent for the same period in the prior year.

Food, beverage and merchandise expense decreased approximately $8.3 million, or 21.7 percent, in fiscal 2016 as compared to
fiscal 2015. When excluding the aforementioned fiscal 2015 costs for transition of merchandise operations of approximately
$10.5 million, food, beverage and merchandise expense increased by approximately $2.2 million, as compared to the prior year.
The increase was primarily attributed to increased concession related expenses of approximately $3.2 million, attributed to the
aforementioned HARD summer music festival at Auto Club Speedway and the Country 500 music festival at Daytona, for
which these events were not held in fiscal 2015, and increased motorsports related concessions and catering expenses of
approximately $0.8 million. Slightly offsetting the increase was approximately $1.6 million of concession expenses related to
the aforementioned Phish Magnaball music festival at Watkins Glen for which this event was not held in fiscal 2016. Food,
beverage and merchandise expense as a percentage of food, beverage and merchandise revenue decreased to approximately
71.8 percent for fiscal 2016, as compared to 81.4 percent for the same period in the prior year. The margin improvement is
primarily a result of the aforementioned transition in merchandising operations in fiscal 2015, as well as lower cost of sales
related to concessions and catering as compared to the same period in the prior year, driven by improvements in menu
engineering and production strategy coupled with a modest per cap increase.

General and administrative expense decreased approximately $0.8 million, or 0.7 percent, in fiscal 2016 as compared to fiscal
2015, predominately due to a reduction of approximately $2.2 million in certain administrative costs, a decrease in certain land
lease payments of approximately $1.1 million and approximately $0.5 million of costs related to building maintenance that
occurred in fiscal 2015, for which there were no comparable costs in fiscal 2016. Partially offsetting the decrease were
approximately $1.4 million of costs associated with the opening of the world's first motorsports stadium at Daytona,
approximately $0.4 million of property taxes, approximately $0.7 million of lower reimbursed expenses related to the
aforementioned transition in merchandising operations, and approximately $0.5 million in purchased services, as compared to
prior year. General and administrative expenses as a percentage of total revenues decreased slightly to approximately 16.8
percent for fiscal 2016, as compared to 17.3 percent for fiscal 2015. The slight margin increase is predominately due to higher
total revenues in fiscal 2016.

Depreciation and amortization expense increased approximately $7.4 million, or 7.8 percent, in fiscal 2016, as compared to
fiscal 2015. Depreciation increased approximately $9.5 million due to new assets placed in service associated with DAYTONA
Rising in fiscal 2016. Partially offsetting the increase is approximately $1.1 million attributable to the shortening of service
lives of certain assets associated with the repaving of Watkins Glen, in fiscal 2015, for which there was no comparable event in
the same periods of fiscal 2016 and approximately $1.0 million related to assets that have been fully depreciated, or removed
from service.

Losses on retirements of long-lived assets decreased approximately $13.1 million, or 81.9 percent, in fiscal 2016, as compared
to fiscal 2015. The decrease is primarily due to approximately $12.1 million of fiscal 2015 demolition costs in connection with
DAYTONA Rising, for which there were no comparable cost in fiscal 2016.

Interest income, during fiscal 2016, of approximately $0.3 million, was comparable to the prior year.

Interest expense increased approximately $4.3 million, or 44.4 percent, in fiscal 2016, as compared to fiscal 2015. The increase
was predominately due to lower capitalized interest associated with DAYTONA Rising. Partially offsetting the increase was
capitalized interest of approximately $1.2 million related to ONE DAYTONA.

Equity in net income from equity investments in fiscal 2016 and 2015, respectively, substantially represents our 50.0 percent
equity investments in Hollywood Casino at Kansas Speedway (see “Equity and Other Investments”).

Our effective income tax rate increased from approximately 37.7 percent to approximately 38.5 percent during fiscal 2016
compared to fiscal 2015 (see “Income Taxes”).

As a result of the foregoing, net income increased approximately $19.7 million, or $0.45 per diluted share, for fiscal 2016 as
compared to fiscal 2015.

Comparison of Fiscal 2015 to Fiscal 2014

The comparison of fiscal 2015 to fiscal 2014 is impacted by the following factors:

•

In the third quarter of fiscal 2015, we hosted the Phish Magnaball music festival at Watkins Glen, for which there was
no comparable event in the prior year. Also in the third quarter of fiscal 2015, we hosted the third annual Faster Horses
music festival at Michigan.
ISC // 2016 ANNUAL REPORT // FORM 10-K // 32

• During fiscal 2014, we received a favorable settlement relating to a legal judgment of litigation involving certain

ancillary operations of approximately $0.6 million, or $0.01 per diluted share. There was no comparable activity during
fiscal 2015.

• On January 31, 2014, SMI abandoned its interest and rights in our 50/50 partnership MA, consequently bringing our

ownership of MA to 100.0 percent. MA's operations are included in our consolidated operations subsequent to the date
of SMI's abandonment. Prior to January 31, 2014, MA was accounted for as an equity investment in our financial
statements. As a result of SMI's abandonment of their interest in MA, we recorded other income of approximately
$5.4 million representing the fair value of MA, over the carrying value, as of January 31, 2014. In addition we
recognized tax benefits relating to MA of approximately $4.0 million for fiscal 2014 (see “Equity and Other
Investments and "Income Taxes”). There was no comparable event in the same period of fiscal 2015;

• For fiscal 2015, we recognized revenue and expense related to merchandise operations of approximately $16.5 million
and $12.3 million, respectively. Included in this amount are $5.1 million of commission from third party merchandise
sales, predominately from Fanatics, non-recurring transactions of approximately $10.4 million, which includes
approximately $6.4 million for inventory sold to Fanatics and $4.0 million of wholesale transactions by MA. These
revenues drove a total of approximately $12.3 million in expense including product costs associated with the non-
recurring transactions, non-recurring costs related to the transition of trackside merchandise operations to Fanatics, as
well as partial period operating expenses incurred prior to the transition of Americrown and MA merchandise
operations, for which there was no related revenue. This compares to fiscal 2014, where we recognized revenue and
expense related to merchandise operations of approximately $44.1 million and $35.5 million, respectively, which
included direct sales of trackside merchandise and excluded the partial period pre-consolidation operation of MA prior
to SMI’s abandonment of its MA interest (see "Future Trends in Operating Results, Merchandise Operations");

•

In fiscal 2015, we recognized approximately $1.4 million, or $0.02 per diluted share, in marketing and consulting costs
that are included in general and administrative expense related to DAYTONA Rising. During fiscal 2014, we
recognized approximately $1.1 million, or $0.02 per diluted share, of similar costs;

• During fiscal 2015, we recognized approximately $6.8 million, or $0.09 per diluted share, of accelerated depreciation
that was recorded due to the shortening the service lives of certain assets associated with DAYTONA Rising and other
projects. During fiscal 2014, we recognized approximately $11.1 million, or $0.14 per diluted share, of accelerated
depreciation that was recorded due to the shortening the service lives of certain assets associated with DAYTONA
Rising and capacity management initiatives;

•

In fiscal 2015, we recognized approximately $16.0 million, or $0.21 per diluted share, of losses associated with asset
retirements of losses primarily attributable to demolition and/or asset relocation costs in connection with DAYTONA
Rising, capacity management initiatives and other capital improvements. Included in these losses were approximately
$12.5 million of expenditures related to demolition and/or asset relocation costs, the remaining charges were non-cash
charges. During fiscal 2014, we recognized approximately $10.1 million, or $0.12 per diluted share, of similar charges,
of which approximately $7.5 million of expenditures related to demolition and/or asset relocation costs, the remaining
charges were non-cash, which included an impairment of a long-lived intangible asset related to MA, discussed above;
and

• During fiscal 2015, we capitalized approximately $6.0 million, or $0.08 per diluted share, of interest related to

DAYTONA Rising. During fiscal 2014, we recognized approximately $7.2 million, or $0.09 per diluted share, of
similar interest capitalization.

Fiscal 2015 admissions revenue of $130.2 million was comparable to fiscal 2014. Factors driving attendance increases and
higher average ticket prices include:

•

Increases in attendance and admissions at the DAYTONA 500, Talladega, Martinsville, Auto Club Speedway,
Darlington, Phoenix, Watkins Glen and Homestead;

Increased attendance and admissions for NASCAR's Cup Chase for the Championship events at Chicagoland and
Talladega as well as sold out events for the Fall Phoenix and Homestead Cup races; and

• Certain non-NASCAR events new to the Company’s event schedule in 2015.

Several factors contributed to attendance decreases which offset the noted increases, including:

• The reduced number of seats available at Daytona for the July NASCAR Cup and Xfinity series events as a result of
the construction cycle related to DAYTONA Rising (see Liquidity and Capital Resources - DAYTONA Rising:
Reimagining an American Icon);

•

Inclement weather and the threat of inclement weather during Speedweeks events preceding the DAYTONA 500;

Inclement weather impacting major events at Michigan, Richmond and Kansas; and

ISC // 2016 ANNUAL REPORT // FORM 10-K // 33

• Other decreases in certain markets.

Motorsports and other event related revenue increased approximately $18.1 million, or 4.2 percent, in fiscal 2015 as compared
to fiscal 2014. The increase is largely attributable to increases in television broadcast revenue of approximately $11.6 million.
Also contributing to the increase were advertising, hospitality and sponsorship revenues of approximately $4.2 million, other
ancillary motorsports revenue totaling approximately $1.5 million, as well as the aforementioned music festivals totaling
approximately $0.8 million.

Food, beverage and merchandise revenue decreased approximately $25.6 million, or 35.1 percent, in fiscal 2015 as compared
to fiscal 2014. The decrease is primarily due to the aforementioned transition of merchandise operations of approximately
$27.5 million. Slightly offsetting the decrease were concession sales of approximately $1.8 million related to the
aforementioned Phish Magnaball music festival held in the third quarter of fiscal 2015, for which there was no comparable
event in fiscal 2014.

NASCAR event management fees increased by approximately $4.9 million, or 3.0 percent, in fiscal 2015 as compared to fiscal
2014. The increase includes approximately $3.0 million attributable to increases in television broadcast rights fees, for the
NASCAR Cup, Xfinity and Camping World Truck series events held during the period as standard NASCAR sanctioning
agreements require a specific percentage of television broadcast rights fees to be paid to competitors. The remaining increase is
attributable to higher contracted NEM fees.

Motorsports and other event related expense increased by approximately $2.9 million, or 2.2 percent, in fiscal 2015 as
compared to fiscal 2014. The increase is primarily due to personnel related expenses, incremental costs for certain events
largely driven by inclement weather, as well as other purchased services. Motorsports and other event related expenses as a
percentage of combined admissions and motorsports and other event related revenue remained consistent at approximately
22.5 percent for fiscal 2015, as compared to 22.8 percent for the same period in the prior year.

Food, beverage and merchandise expense decreased approximately $19.8 million, or 34.0 percent, in fiscal 2015 as compared
to fiscal 2014. The decrease is predominately attributable to the aforementioned transition of merchandise operations of
approximately $22.0 million. Slightly offsetting the decrease were concession related expenses of approximately $1.6 million
attributed to the aforementioned Phish Magnaball music festival held in the third quarter of fiscal 2015, for which there was no
comparable event in fiscal 2014. In addition, motorsports related concessions and catering yielded an increase of approximately
$0.6 million. Food, beverage and merchandise expense as a percentage of food, beverage and merchandise revenue increased to
approximately 81.4 percent for fiscal 2015, as compared to 79.9 percent for the same period in the prior year. The decrease in
margin is primarily a result of the aforementioned transition in merchandising operations, however, excluding this activity,
food, beverage and merchandise expense as a percentage of food, beverage and merchandise sales decreased compared to the
same period in 2014 due to increased catering revenues driven by an approximate 3.0 percent increase in prices, slightly offset
by increased spoilage due to inclement weather affecting certain events.

General and administrative expense increased approximately $3.1 million, or 2.8 percent, in fiscal 2015 as compared to fiscal
2014, due to approximately $3.6 million of certain administrative costs and ancillary facility operations, as well as a net
decrease to our general liability insurance reserve in the prior year period of approximately $1.1 million, for which there is no
comparable reduction in the current period. Slightly offsetting the increase was approximately $0.9 million of costs related to
real and tangible property taxes and $0.7 million of non-recurring costs related to the aforementioned transition in
merchandising operations. General and administrative expenses as a percentage of total revenues decreased slightly to
approximately 17.3 percent for fiscal 2015, as compared to 16.7 percent for fiscal 2014. The margin decrease for the period is
primarily due one-time, non-recurring administrative costs related to DAYTONA Rising and to adjustments in our general
liability insurance reserves in the 2014 period.

Depreciation and amortization expense increased approximately $4.4 million, or 4.8 percent, in fiscal 2015 as compared to
fiscal 2014. Approximately $11.9 million of the increase relates to new assets placed in service associated with DAYTONA
Rising, and approximately $5.5 million is attributable to the continued shortening of the service lives of certain assets that will
eventually be retired associated with DAYTONA Rising. Also contributing to the increase is approximately $1.3 million is
attributable to the shortening of service lives of certain assets associated with the repaving of Watkins Glen. Offsetting these
increases are approximately $14.3 million related to assets that have been fully depreciated, or removed from service.

Losses on retirements of long-lived assets of approximately $16.0 million during fiscal 2015 is primarily due to demolition
costs in connection with DAYTONA Rising and other capital improvements.

Interest income during fiscal 2015 decreased approximately $2.0 million as compared to fiscal 2014. The decrease is
predominately due to a settlement reached in fiscal 2014 related to prior years interest associated with a long-term receivable.
There was no comparable event in fiscal 2015.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 34

Interest expense increased approximately $0.4 million, or 4.4 percent, in fiscal 2015, as compared to fiscal 2014. The increase
was predominately due to slightly lower capitalized interest associated with DAYTONA Rising.

Equity in net income from equity investments in fiscal 2015 and 2014, respectively, represents our 50.0 percent equity
investments in Hollywood Casino at Kansas Speedway (see “Equity and Other Investments”).

Our effective income tax rate increased from approximately 33.0 percent to approximately 37.7 percent during fiscal 2015
compared to fiscal 2014 (see “Income Taxes”).

As a result of the foregoing, net income decreased approximately $10.7 million, or $0.24 per diluted share, for fiscal 2015 as
compared to fiscal 2014.

Liquidity and Capital Resources

General

We have historically generated sufficient cash flow from operations to fund our working capital needs, capital expenditures at
existing facilities, and return of capital through payments of an annual cash dividend and repurchase of our shares under our
Stock Purchase Plan. In addition, we have used the proceeds from offerings of our Class A Common Stock, the net proceeds
from the issuance of long-term debt, borrowings under our credit facilities and state and local mechanisms to fund acquisitions
and development projects. The following table sets forth certain selected financial information as of November 30, (in
thousands):

Cash and cash equivalents

Working capital

Total debt

2014

2015

2016

158,847 $
110,783
271,746

160,548 $
146,915
265,836

263,727
217,802
262,820

At November 30, 2016, our working capital was primarily supported by our cash and cash equivalents totaling approximately
$263.7 million. The increase in working capital at November 30, 2016, as compared to the prior period, is predominantly
attributable to the refund received, of approximately $50.8 million, in February 2016 of all of the Federal income tax estimated
payments made in fiscal year 2015. This was a result of the Protecting Americans from Tax Hikes Act, passed by Congress in
December 2015, which renewed previously expired tax legislation that included a retroactive renewal back to January 1, 2015
(see "Capital Allocation"). Also contributing to the increase in working capital were the cash proceeds from the sale of the
Staten Island property (see "Equity and Other Investments - Staten Island Property").

Significant cash flow items during fiscal the fiscal years ended November 30 are as follows (in thousands):

Net cash provided by operating activities (1)
Capital expenditures (2)
Distribution from equity investee and affiliate (3)
Proceeds from sale of Staten Island property (4)
Equity investments and advances to affiliate (5)
Net proceeds (payments) related to long-term debt

2014

2015

2016

162,847 $
(183,936 )
22,000
11,187
(1,322 )

(2,807 )

151,987 $
(155,016 )
32,050
4,648
—
(3,437 )

245,888
(140,793 )
25,900
67,890
(130 )

(3,408 )

Dividends paid and reacquisitions of previously issued common
stock

(11,504 )

(13,111 )

(74,571 )

(1) Variances in net cash provided by operating activities were predominately due to the amount and timing of cash payments for

income taxes (see "Income Taxes"). The increase in net cash provided by operating activities, during the period ended
November 30, 2016, as compared to the same period in the prior year, is driven primarily by the aforementioned Federal income
tax refund received in February 2016

(2) Activity in capital expenditures is predominately due to DAYTONA Rising (see "Capital Expenditures") and ONE DAYTONA

(see "ONE DAYTONA")

(3) Distributions from equity investee and affiliates, consist of amounts received as distribution from their profits and returns of

capital as detailed in our statement of cash flows

(4) Proceeds from sale of Staten Island property consist of interest and principle amounts received as detailed in our statement of

cash flows

ISC // 2016 ANNUAL REPORT // FORM 10-K // 35

(5) Amounts relate to Hollywood Casino at Kansas Speedway (see “Equity and Other Investments”) and ONE DAYTONA (see

"ONE DAYTONA"), respectively

(6) Amounts relate to dividends paid and reacquisition of previously issued common stock (see "Item 2. Unregistered Sales of

Equity Securities and Use of Proceeds")

Our liquidity is primarily generated from our ongoing motorsports operations, and we expect our strong operating cash flow to
continue in the future. In addition, as of November 30, 2016, we have approximately $294.0 million available to draw upon
under our 2016 Credit Facility, if needed. See “Future Liquidity” for additional disclosures relating to our credit facility and
certain risks that may affect our near term operating results and liquidity.

Allocation of capital is driven by our long-term strategic planning and initiatives that encompass our mission, vision and
values. Our primary uses of capital are to maintain modest debt levels that are consistent with our current investment grade debt
rating from Standard and Poor’s. We will invest in our facilities to improve the guest experience and we will make investments
in strategic projects that complement our core business and provide value for our shareholders, all of which is balanced with
returning capital to our shareholders through share repurchases and dividends.

Capital Allocation

We have established a long-term capital allocation plan to ensure we generate sufficient cash flow from operations to fund our
working capital needs, capital expenditures at existing facilities, and return of capital through payments of an annual cash
dividend and repurchase of our shares under our Stock Purchase Plan. In addition, we have used the proceeds from offerings of
our Class A Common Stock, the net proceeds from the issuance of long-term debt, borrowings under our credit facilities and
state and local mechanisms to fund acquisitions and development projects.

Since 2013, we have operated under a capital expenditure plan totaling $600.0 million for reinvestment in existing facilities,
which included capital expenditures related to DAYTONA Rising (see “DAYTONA Rising - Reimagining an American Icon”).
This plan was adopted by the Board of Directors in 2013 and established a multi-year capital facility reinvestment plan through
2017. At November 30, 2016, there was approximately $58.7 million remaining for capital expenditures in approved and/or
planned projects under this plan.

In 2016, our working capital position was further strengthened by the following events:

• Federal tax legislation passed in December 2015 providing for extension of 7-year depreciation for tax purposes on

certain motorsports facility assets placed in service during fiscal 2015 through 2016, and bonus depreciation on capital
expenditures placed in service fiscal 2015 through 2019. While the tax legislation does not impact our overall tax
liability, it does impact the timing of the annual payment of cash taxes. Cash taxes paid for federal and state taxes in
fiscal 2015 was approximately $45.0 million. As a result of this legislation, which was passed subsequent to our fiscal
2015 year-end, but retroactive for all assets placed in service during 2015, we received a tax refund of approximately
$50.8 million in fiscal 2016 related to overpayment of estimated taxes in prior years, primarily attributable to
depreciation for assets placed in service related to DAYTONA Rising. Cash tax payments for fiscal 2016 were
approximately $24.4 million. Cash tax payments for fiscal 2017 are currently estimated to be between $50.0 million to
$55.0 million; and

•

In March 2016, we completed an assignment of all rights, title and interest in the mortgage and underlying promissory
note to an affiliate of Matrix Development Group, a New York/New Jersey area developer, and received the remaining
principal balance of $66.4 million, plus additional consideration of approximately $0.3 million. We have no further
commitments or contingencies related to the property or its sale. As a result, in the second quarter of fiscal 2016, we
recorded a gain of approximately $13.6 million. The deferred gain of $1.9 million is included in Other operating
revenue in our consolidated statement of operations, and the interest and additional consideration received is included
in Other below Operating Income in our consolidated statement of operations.

Following the successful completion of DAYTONA Rising (delivering the project on time, on budget and achieving
incremental $15.0 million EBITDA), along with the aforementioned events strengthening working capital, the Board of
Directors transitioned the remaining commitments under the 2013 $600.0 million plan as of November 30, 2016 and adopted
the following capital allocation plan covering fiscal years 2017 through 2021:

• Capital expenditures for existing facilities up to $500.0 million from fiscal 2017 through fiscal 2021, which includes
approximately $58.7 million for 2017 carried over from the 2013 $600 million plan. This allocation will fund a
reinvestment at Phoenix, the first phase of redevelopment at Richmond, as well as all other maintenance and guest
experience capital expenditures for the remaining existing facilities. In 2017 we will begin the redevelopment of
Phoenix (see “Phoenix Redevelopment”) with completion targeted in late 2018, therefore, we expect spending to be
somewhat front-loaded. While many components of these expected projects will exceed weighted average cost of

ISC // 2016 ANNUAL REPORT // FORM 10-K // 36

capital, considerable maintenance capital expenditures, approximately $40.0 million to $60.0 million annually, will
likely result in a blended return of this invested capital in the mid to low single digits;

•

In addition to the aforementioned $500.0 million in capital expenditures for existing facilities, we expect we will have
an additional $95.0 million of capital expenditures in fiscal 2016 through 2018 related to phase one of ONE
DAYTONA. We expect this investment to exceed our weighted average cost of capital (see "ONE DAYTONA");

• Return of capital to shareholders is a significant pillar of our capital allocation. In fiscal 2016 we increased our

dividend approximately 58.0 percent to $0.41 per share. We expect dividends to increase in 2017, and beyond, by
approximately four to five percent annually. For the year ended November 30, 2016, we repurchased 1.7 million
shares of ISCA on the open market at a weighted average share price of $33.25 for a total of approximately
$55.1 million. In November 2016, our Board of Directors expanded the Stock Purchase Plan by an incremental
$200.0 million bringing its total current authorization to $530.0 million. For 2017 through 2021 we expect our return
of capital program will be approximately $280.0 million, comprised of close to $100.0 million in total annual
dividends and the balance being open market repurchase of ISCA shares over the five year period. At this time we
expect this spending to be evenly allocated per year, although we will scale the repurchase program to buy
opportunistically; and

• We will continue to explore development and/or acquisition opportunities beyond the initiatives discussed above that
build shareholder value and exceed our weighted average cost of capital. Should additional development and/or
acquisitions be pursued, we will provide discrete information on timing, scope, cost and expected returns of such
opportunities.

The aforementioned represents certain components of our capital allocation plan for fiscal 2017 and beyond. This capital
allocation plan is reviewed annually, or more frequently, and can be revised, if necessary, based on changes in business
conditions.

Capital Expenditures

As discussed in “Future Trends in Operating Results,” an important strategy for our future growth will come from investing in
our major motorsports facilities to enhance the live event experience and better enable us to effectively compete with other
entertainment venues for consumer and corporate spending.

Capital expenditures for fiscal 2016 total approximately $140.8 million, inclusive of capitalized interest and labor. In
comparison, the Company spent approximately $155.0 million on capital expenditures for projects at its existing facilities in
fiscal 2015, including DAYTONA Rising. For fiscal 2017, we expect capital expenditures associated with the $500.0 million
capital expenditure plan to range between $100.0 million and $115.0 million, which includes commencement of construction
for the Phoenix Redevelopment project. Incremental to this is approximately $50.0 million to $60.0 million in capital
expenditures related to construction for ONE DAYTONA.

We review the capital expenditure program periodically and modify it as required to meet current business needs.

Future Liquidity

General

As discussed in “Future Trends in Operating Results,” we compete for discretionary spending and leisure time with many other
entertainment alternatives and are subject to factors that generally affect the recreation, leisure and sports industry, including
general economic conditions. Our operations are also sensitive to factors that affect corporate budgets. Such factors include, but
are not limited to, general economic conditions, employment levels, business conditions, interest and taxation rates, relative
commodity prices, and changes in consumer tastes and spending habits. These factors may negatively impact year-over-year
comparability for our revenue categories for the full year, with the exception of domestic broadcast media rights fees. While we
are sustaining the significant cost reductions implemented subsequent to the unprecedented adverse economic conditions that
began in 2008, we do not expect further significant cost reductions.

Our cash flow from operations consists primarily of ticket, hospitality, merchandise, catering and concession sales and
contracted revenues arising from television broadcast rights and marketing partnerships. We believe that cash flows from
operations, along with existing cash, cash equivalents and available borrowings under our credit facility, will be sufficient to
fund:

• operations of our major motorsports facilities for the foreseeable future;
• ONE DAYTONA (see "ONE DAYTONA");

•

the previously discussed capital allocation plans for our existing facilities;

ISC // 2016 ANNUAL REPORT // FORM 10-K // 37

• payments required in connection with the funding of the Unified Government's debt service requirements related to

the TIF bonds;

• payments related to our other existing debt service commitments;

contributions in connection with any future expansion of the Hollywood Casino at Kansas Speedway; and

•
• our annual dividend payment and share repurchases under our Stock Purchase Plan.

We remain interested in pursuing acquisition and/or development opportunities that would increase shareholder value, of which
the timing, size, success and associated potential capital commitments, are unknown at this time. Accordingly, a material
acceleration of our growth strategy could require us to obtain additional capital through debt and/or equity financings. Although
there can be no assurance, we believe that adequate debt and equity financing will be available on satisfactory terms.

While we expect our strong cash flows to continue in the future, our financial results depend significantly on a number of
factors. In addition to local, national, and global economic and financial market conditions, consumer and corporate spending
could be adversely affected by security and other lifestyle conditions resulting in lower than expected future cash flows. See
"Future Trends in Operating Results - Postponement and/or Cancellation of Major Motorsports Events" for further discussion
of items that could have a singular or compounded material adverse effect on our financial success and future cash flow.

Long-Term Obligations and Commitments

Our $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, 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 our option, at any time or from time to time at redemption
prices as defined in the indenture. Certain of our 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 November 30, 2016, the Company was in
compliance with its various restrictive covenants. At November 30, 2016, outstanding principal on the 4.63 percent Senior
Notes was approximately $65.0 million.

Our $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 our option, at any time or from
time to time at redemption prices as defined in the indenture. Certain of our 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 November 30, 2016, the Company was
in compliance with its various restrictive covenants. At November 30, 2016, outstanding principal on the 3.95 percent Senior
Notes was approximately $100.0 million.

The term loan (“6.25 percent Term Loan”), related to our 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 principal and interest. At
November 30, 2016, the outstanding principal on the 6.25 percent Term Loan was approximately $47.9 million.

At November 30, 2016, outstanding TIF bonds totaled approximately $52.1 million, net of the unamortized discount, which is
comprised of a $2.8 million principal amount, 6.15 percent term bond due December 1, 2017 and a $49.7 million principal
amount, 6.75 percent term bond due December 1, 2027. The TIF bonds are repaid by the Unified Government with payments
made in lieu of property taxes (“Funding Commitment”) by our 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.

In October 2002, the Unified Government issued subordinate sales tax special obligation revenue bonds (“2002 STAR Bonds”)
totaling approximately $6.3 million to reimburse us 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 the Kansas
Speedway’s boundaries and are not our obligation. KSC has agreed to guarantee the payment of principal, any required
ISC // 2016 ANNUAL REPORT // FORM 10-K // 38

premium and interest on the 2002 STAR Bonds. At November 30, 2016, the Unified Government had approximately
$0.9 million in 2002 STAR Bonds outstanding. Under a keepwell agreement, we have agreed to provide financial assistance to
KSC, if necessary, to support its guarantee of the 2002 STAR Bonds.

On September 27, 2016, we amended and extended our existing $300.0 million credit facility, maturing November 2017, and
entered into a new $300.0 million revolving credit facility (“2016 Credit Facility”). The 2016 Credit Facility contains a feature
that allows us to increase the credit facility to a total of $500.0 million, subject to certain conditions, 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. Interest accrues, at our 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 our
debt rating as determined by specified rating agencies or its leverage ratio. Certain of our wholly owned domestic subsidiaries
are guarantors on the 2016 Credit Facility. The 2016 Credit Facility requires that our 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 our 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 November 30, 2016, we were
in compliance with the various restrictive covenants contained in the credit facility agreement. At November 30, 2016, we had
no outstanding borrowings under our credit facility.

At November 30, 2016 we had contractual cash obligations to repay debt and to make payments under operating agreements,
leases and commercial commitments in the form of guarantees and unused lines of credit. Payments due under these long-term
obligations are as follows as of November 30, 2016 (in thousands):

Long-term debt
Interest
Motorsports entertainment facility operating
agreement

Other operating leases

Total Contractual Cash Obligations

Less Than
One Year

Obligations Due by Period

2-3 Years

4-5 Years

After
5 Years

3,738 $
13,967

8,613 $
27,185

76,134 $
23,320

176,933
40,214

Total
265,418 $
104,686

16,968
41,896
428,968 $

1,055
4,570
23,330 $

2,110
4,942
42,850 $

2,110
2,066
103,630 $

11,693
30,318
259,158

Commercial commitment expirations are as follows as of November 30, 2016 (in thousands):

Guarantees
Unused credit facilities

Total Commercial Commitments

Commitment Expiration by Period

Total

940 $

300,000
300,940 $

Less Than
One Year

2-3 Years

4-5 Years

After
5 Years

205 $

2,000
2,205 $

275 $
—
275 $

255 $

298,000
298,255 $

205
—
205

DAYTONA Rising: Reimagining an American Icon

DAYTONA Rising is the redevelopment of the frontstretch at Daytona, ISC's 57-year-old flagship motorsports facility, to
enhance the event experience for our fans, marketing partners, broadcasters and the motorsports industry.

In May 2016, Axalta joined Toyota, Florida Hospital, Chevrolet and Sunoco as Founding Partners at Daytona International
Speedway's new motorsports stadium. With each partnership extending over 10 years, the Founding partners received
sponsorship rights for a dedicated injector, as well as innovative fan engagement space, and interior and exterior branding
space, that will enhance the overall guest experience.

By providing our fans with a better experience as well as an expansive platform for our marketing partners, including an
elevated hospitality experience, we expected, upon completion of DAYTONA Rising, to provide an immediate incremental lift
in Daytona's revenues of approximately $20.0 million, and earnings before interest, taxes, depreciation and amortization
("EBITDA”) lift of approximately $15.0 million. For the year ended November 30, 2016, we slightly exceeded these
expectations. We also currently anticipate the project to be accretive to our net income per share within three years of

ISC // 2016 ANNUAL REPORT // FORM 10-K // 39

completion. While these forward-looking amounts are management’s projections and we believe they are reasonable, our actual
results may vary from these estimates due to unanticipated changes in projected attendance, lower than expected ticket prices,
and/or lower than forecasted corporate sponsorships. We do not know whether these expectations will ultimately continue as
actual revenues and operating results may differ materially from these estimates.

Despite not anticipating the need for additional long-term debt to fund this project, accounting rules dictate that we capitalize a
portion of the interest on existing outstanding debt during the construction period. Through November 30, 2016, we recorded
approximately $14.6 million of capitalized interest associated with the DAYTONA Rising project since inception.

Total spending incurred, exclusive of capitalized interest, relating to DAYTONA Rising was approximately$65.9 million for
fiscal 2016, and is approximately $398.7 million since the inception of the project.

We have identified existing assets that were expected to be impacted by the redevelopment and that those assets required
accelerated depreciation, certain removal costs and losses on asset retirements, over the approximate 31-month project time
span. Total accelerated depreciation, certain removal costs and losses on retirements of assets recognized, since the inception of
the project, was approximately $45.4 million. There were no similar costs related to the DAYTONA Rising project in fiscal
2016.

In addition, our depreciation expense, related directly to DAYTONA Rising, increased incrementally by approximately
$11.9 million in fiscal 2015, and an additional $16.4 million in fiscal 2016. The incremental increase in depreciation expense
for fiscal 2015 is based on the opening of approximately 40.0 percent of the new stadium's seating capacity for Budweiser
Speedweeks 2015 and an additional approximate 10.0 percent of the new stadium's seating capacity for the 2015
Coke Zero 400.

As a result, our total depreciation expense for fiscal 2016 is approximately $102.2 million, and is estimated to be between
approximately $100.0 million to $105.0 million in fiscal 2017.

ONE DAYTONA

Since June 2013, we have pursued development of ONE DAYTONA, a premier mixed use and entertainment destination across
from the Daytona International Speedway.

We have crafted a strategy that will create synergy with the Speedway, enhance customer and partner experiences, monetize
real estate on International Speedway Blvd and leverage our real estate on year-round basis.

We have approved land use entitlements for ONE DAYTONA to allow for up to 1.4 million square feet of
retail/dining/entertainment, a 2,500 seat movie theater, 660 hotel rooms, 1,350 residential units, 567,000 square feet of
additional office space and 500,000 square feet of commercial/industrial space.

A Community Development District ("CDD") has been established for the purpose of installing and maintaining public
infrastructure at 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 $40.0 million in
incentives to finance a portion of the estimated $53.0 million in infrastructure required to move forward with the ONE
DAYTONA project.

In March 2015, we announced Legacy Development, a leading national development group, as development consultant for
ONE DAYTONA. Intensely focused on innovative destination retail and mixed-use projects, Legacy Development is working
closely with ISC’s development staff on the project. The Legacy Development team is a natural fit for the project, having
served as the developer for Legends Outlets Kansas City, a mixed-use retail destination across from our Kansas Speedway.

We have completed the design for the first phase of ONE DAYTONA. This first phase will be comprised of three components:
retail, dining and entertainment (“RD&E”); hotels; and residential.

The RD&E component of phase one will be owned and managed 100.0 percent by us. The expected total square footage for the
RD&E first phase is approximately 300,000 square feet. We expect to spend approximately $95.0 million in fiscal 2016
through 2017 on the RD&E component of ONE DAYTONA’s first phase. Other sources of funds will include the public
incentives discussed above and land to be contributed to the project. In September 2016, we announced VCC has been selected
as general contractor to oversee construction of the RD&E component of phase one including Victory Circle and the parking
garage. VCC has an outstanding national reputation for quality and a proven track record leading and managing the
development and construction of some of the country’s most engaging mixed-use developments.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 40

Lease agreements have been executed with Bass Pro Shops®, America’s most popular outdoor store, and Cobb Theatres, the
highly respected Southeastern-based exhibitor, as anchor tenants of ONE DAYTONA. Other announced tenants include P.F.
Chang’s, Hy’s Toggery, Kilwins Confections, Guitar Center, Tervis, IT’SUGAR, Jeremiah’s Italian Ice, Venetian Nail Spa,
Sunglass World, Oklahoma Joe’s BBQ, Rock Bottom Restaurant & Brewery, MidiCi: The Neapolitan Pizza Company,
Lindbergh, Designers Market, and GameTime. Leasing remains strong and we are exceeding our leasing goals for the project.

Shaner Hotels and Prime Hospitality Group ("PHG") have been selected as hotel partners. They have executed a franchise
agreement with Marriott International for an exclusive 145-room full service Autograph Collection hotel at ONE DAYTONA
that will be known as The DAYTONA. They are also building a 105-room select-service Fairfield Inn & Suites by Marriott that
is currently under vertical construction. As part of the partnership agreement, our portion of equity will be limited to our land
contribution and we will share proportionately in the profits from the joint venture.

Prime Group has been selected as the partner for ONE DAYTONA’s residential development. Following an extensive request
for proposal process, ONE DAYTONA chose the Florida developer based on their command of market demographics,
development experience and expert property management systems. Prime Group is proceeding with the development in ONE
DAYTONA for approximately 276 luxury apartment rental units that will add critical mass to the overall ONE DAYTONA
campus. Similar to the hotel partnership, our portion of equity will be limited to our land contribution and we will share
proportionately in the profits from the joint venture.

Cobb Daytona Luxury Theatres opened in December 2016 and Bass Pro Shops is planning a February 2017 opening, followed
by the Fairfield Inn & Suites later in fiscal 2017. We are targeting phase one completion in late fiscal 2017. At stabilization we
expect this first phase on ONE DAYTONA to deliver annual revenue and EBITDA of approximately $12.0 million and
approximately $9.0 million, respectively, and deliver an unlevered return above our weighted average cost of capital. We expect
to add leverage to ONE DAYTONA’s phase one post-stabilization.

Total capital expenditures for ONE DAYTONA, excluding capitalized interest and net of capital incentives, are expected to be
approximately $95.0 million. Through November 30, 2016 capital expenditures totaled approximately $22.0 million, exclusive
of capitalized interest and labor. At this time, there is no project specific financing in place for ONE DAYTONA. Ultimately,
we expect to secure financing for the project upon stabilization. However, accounting rules dictate that we capitalize a portion
of the interest on existing outstanding debt during the construction period. Through November 30, 2016, we recorded
approximately $1.6 million of capitalized interest related to ONE DAYTONA, since inception, and expect approximately
$3.5 million to $4.0 million to be recorded by completion of construction.

Any future phases will be subject to prudent business considerations for which we will provide discrete cost and return
disclosures.

Phoenix Redevelopment

On November 30, 2016, we announced our Board of Directors had approved a multi-year redevelopment project to elevate the
fan and spectator experience at Phoenix, the company’s 52-year-old motorsports venue. The redevelopment is expected to focus
on new and upgraded seating areas, vertical transportation options, new concourses, enhanced hospitality offerings and an
intimate infield experience with greater accessibility to pre-race activities.

The redevelopment of Phoenix is included in our aforementioned $500.0 million capital allocation covering fiscal years 2017
through 2021. The redevelopment project at Phoenix is expected to cost approximately $178.0 million, including maintenance
capital, before capitalized interest. Okland Construction ("Okland") has been selected as general contractor of the project.
Effective November 30, 2016, Phoenix entered into a Design-Build Agreement with Okland. The Design-Build Agreement
obligates Phoenix to pay Okland approximately $136.0 million for the completion of the work described in the Design-Build
Agreement. This amount is a guaranteed maximum price to be paid for the work, which may not change absent a requested
change in the scope of work by Phoenix.

Based on the Company's current plans for Phoenix, it has identified existing assets that are expected to be impacted by the
redevelopment and will require accelerated depreciation, or losses on asset retirements, totaling approximately $3.4 million,
non-cash charges, over the approximate 22-month project time span. Upon completion, the redevelopment is expected to
provide an immediate incremental lift in Phoenix's EBITDA between approximately $8.5 million and $9.0 million. The project
is expected to commence in early 2017 and be complete in late 2018.

Despite the Company not anticipating the need for additional long-term debt to fund this project, accounting rules dictate that
the Company capitalize a portion of the interest on existing outstanding debt during the construction period. The Company
estimates it will record approximately $4.0 million to $4.5 million of capitalized interest from fiscal 2017 through fiscal 2018.

For fiscal 2017, we expect capital expenditures related to the redevelopment of Phoenix to total approximately $70.0 million to
$75.0 million and capitalized interest of approximately $1.2 million.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 41

Speedway Developments

In light of NASCAR's publicly announced position regarding additional potential realignment of the Monster Energy NASCAR
Cup Series schedule, we believe there are still potential development opportunities for public/private partnerships in new,
underserved markets across the country that would create value for our shareholders. However, we are not currently pursuing
any new speedway development opportunities.

Inflation

We do not believe that inflation has had a material impact on our operating costs and earnings.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB"), in conjunction with the International Accounting Standards
Board ("IASB"), issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers". The
objective of this Update is to significantly enhance comparability and clarify principles of revenue recognition practices across
entities, industries, jurisdictions, and capital markets. On July 9, 2015, the FASB approved a one-year deferral of the effective
date, while permitting entities to elect to adopt one year earlier on the original effective date. As a result, for a public entity, the
amendments in this Update are effective for annual reporting periods beginning after December 15, 2017, including interim
periods within that reporting period. The standard can be adopted either retrospectively to each prior reporting period presented
or as a cumulative effect adjustment as of the date of adoption. We are currently in the process of analyzing the information
necessary to determine the impact of adopting this new guidance on our financial position, results of operations, and cash
flows. We will adopt the provisions of this statement in the first quarter of fiscal 2019.

In April 2015, the FASB, in conjunction with the IASB, issued ASU No. 2015-03, "Interest - Imputation of Interest". The
objective of this Update is to simplify the presentation of debt issuance costs. The amendments in this Update require that debt
issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction from the carrying
amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs
are not affected by the amendments in this Update. We have adopted the provisions of this statement in the first quarter of fiscal
2016 and prior periods have been retrospectively adjusted (see "Note 6. Long-Term Debt").

In August 2015, the FASB issued ASU No. 2015-15, "Interest - Imputation of Interest (Sub-Topic 835-30): Presentation and
Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements". Given the absence of
authoritative guidance within Update 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff
would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred
debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding
borrowings on the line-of-credit arrangement. We have adopted the provisions of this statement in the first quarter of fiscal
2016 and prior periods have been retrospectively adjusted.

In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred
Taxes". The objective of this Update is to simplify the presentation of deferred income taxes. The amendments in this Update
require that deferred assets and liabilities be classified as long-term on the balance sheet instead of separating the deferred taxes
into current and noncurrent amounts. For a public entity, the amendments in this Update are effective for annual reporting
periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is
permitted for financial statements that have not been previously issued. We believe that this treatment of deferred taxes reduces
the complexity of financial reporting while improving the usefulness of the information provided to users of the financial
statements. As a result the Company elected to early adopt this Update prospectively as of November 30, 2015.

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 IFRS 16, Leases, are the results of
the FASB’s and the International Accounting Standards Board’s (IASB’s) efforts to meet that objective and improve financial
reporting. For a public 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.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 42

Factors That May Affect Operating Results

This report and the documents incorporated by reference may contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
You can identify a forward-looking statement by our use of the words “anticipate,” “estimate,” “expect,” “may,” “believe,”
“objective,” “projection,” “forecast,” “goal,” and similar expressions. These forward-looking statements include our statements
regarding the timing of future events, our anticipated future operations and our anticipated future financial position and cash
requirements. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not
know whether our expectations will prove correct. We disclose the important factors that could cause our actual results to differ
from our expectations in cautionary statements made in this report and in other filings we have made with the SEC. All
subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly
qualified in their entirety by these cautionary statements. Our actual results could differ materially from those anticipated in
these forward-looking statements as a result of the risk factors described in this report and other factors set forth in or
incorporated by reference in this report.

Many of these factors are beyond our ability to control or predict. We caution you not to put undue reliance on forward-looking
statements or to project any future results based on such statements or on present or prior earnings levels. Additional
information concerning these, or other factors, which could cause the actual results to differ materially from those in the
forward-looking statements is contained from time to time in our other SEC filings. Copies of those filings are available from
us and/or the SEC.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risk from changes in interest rates in the normal course of business. Our interest income and expense
are most sensitive to changes in the general level of U.S. interest rates and the LIBOR rate. In order to manage this exposure,
from time to time we use a combination of debt instruments, including the use of derivatives in the form of interest rate swap
and lock agreements. We do not enter into any derivatives for trading purposes.

The objective of our asset management activities is to provide an adequate level of interest income and liquidity to fund
operations and capital expansion, while minimizing market risk. We utilize overnight sweep accounts and short-term
investments to minimize the interest rate risk. We do not believe that our interest rate risk related to our cash equivalents and
short-term investments is material due to the nature of the investments.

Our objective in managing our interest rate risk on our debt is to negotiate the most favorable interest rate structures that we
can and, as market conditions evolve, adjust our balance of fixed and variable rate debt to optimize our overall borrowing costs
within reasonable risk parameters. Interest rate swaps and locks are used from time to time to convert a portion of our debt
portfolio from a variable rate to a fixed rate or from a fixed rate to a variable rate as well as to lock in certain rates for future
debt issuances.

The following analysis provides quantitative information regarding our exposure to interest rate risk. We utilize valuation
models to evaluate the sensitivity of the fair value of financial instruments with exposure to market risk that assume
instantaneous, parallel shifts in interest rate yield curves. There are certain limitations inherent in the sensitivity analyses
presented, primarily due to the assumption that interest rates change instantaneously. In addition, the analyses are unable to
reflect the complex market reactions that normally would arise from the market shifts modeled.

We have various debt instruments that are issued at fixed rates. These financial instruments, which have a fixed rate of interest,
are exposed to fluctuations in fair value resulting from changes in market interest rates. The fair values of long-term debt are
based on quoted market prices at the date of measurement. Our credit facilities approximate fair value as they bear interest rates
that approximate market. At November 30, 2016, we had no variable debt outstanding.

At November 30, 2016, the fair value of our total long-term debt as determined by quotes from financial institutions was
approximately $278.2 million. The potential decrease in fair value resulting from a hypothetical 10.0 percent shift in interest
rates would be approximately $5.2 million at November 30, 2016.

Credit risk arises from the possible inability of counterparties to meet the terms of their contracts on a net basis. However, we
minimize such risk exposures for these instruments by limiting counterparties to large banks and financial institutions that meet
established credit guidelines. We do not expect to incur any losses as a result of counterparty default.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 43

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders
International Speedway Corporation

We have audited the accompanying consolidated balance sheets of International Speedway Corporation (the “Company”) as of
November 30, 2016 and 2015, and the related consolidated statements of operations, comprehensive income, changes in
shareholders’ equity and cash flows for each of the three years in the period ended November 30, 2016. Our audits also included the
financial statement schedule listed in the Index at Item 15(a). These financial statements and schedule are the responsibility of the
Company’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated
financial position of International Speedway Corporation at November 30, 2016 and 2015, and the consolidated results of its
operations and its cash flows for each of the three years in the period ended November 30, 2016, in conformity with U.S. generally
accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the
basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States),
International Speedway Corporation’s internal control over financial reporting as of November 30, 2016, based on criteria
established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (2013 framework) and our report dated January 27, 2017, expressed an unqualified opinion thereon.

Tampa, Florida
January 27, 2017

/s/ Ernst & Young LLP
Certified Public Accountants

ISC // 2016 ANNUAL REPORT // FORM 10-K // 44

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders
International Speedway Corporation

We have audited International Speedway Corporation’s internal control over financial reporting as of November 30, 2016, based on
criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (2013 framework) (the COSO criteria). International Speedway Corporation’s management is responsible for
maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over
financial reporting included in the accompanying Report of Management on Internal Control over Financial Reporting. Our
responsibility is to express an opinion on the company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control
over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control
over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of
the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being
made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a
material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because
of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, International Speedway Corporation maintained, in all material respects, effective internal control over financial
reporting as of November 30, 2016, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States),
the consolidated balance sheets of International Speedway Corporation as of November 30, 2016 and 2015, and the related
consolidated statements of operations, comprehensive income, changes in shareholders’ equity and cash flows for each of the
three years in the period ended November 30, 2016 of International Speedway Corporation and our report dated January 27,
2017 expressed an unqualified opinion thereon.

Tampa, Florida
January 27, 2017

/s/ Ernst & Young LLP
Certified Public Accountants

ISC // 2016 ANNUAL REPORT // FORM 10-K // 45

INTERNATIONAL SPEEDWAY CORPORATION
Consolidated Balance Sheets

ASSETS
Current Assets:

Cash and cash equivalents
Receivables, less allowance of $1,000 in 2015 and 2016, respectively
Income taxes receivable
Prepaid expenses and other current assets

Total Current Assets
Property and Equipment, net
Other Assets:

Equity investments
Intangible assets, net
Goodwill
Other

Total Assets
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:

Current portion of long-term debt
Accounts payable
Deferred income
Other current liabilities

Total Current Liabilities
Long-Term Debt
Deferred Income Taxes
Long-Term Deferred Income
Other Long-Term Liabilities
Commitments and Contingencies
Shareholders’ Equity:

November 30,

2015

2016

(in thousands, except share
and per share amounts)

160,548 $
42,112
572
62,312
265,544
1,448,964

103,249
178,626
118,791
4,489
405,155
2,119,663 $

3,074 $
56,968
38,243
20,344
118,629
262,762
336,232
6,969
1,856
—

263,727
35,445
189
13,759
313,120
1,455,506

92,392
178,629
118,791
14,222
404,034
2,172,660

3,404
29,770
39,416
22,728
95,318
259,416
409,585
5,988
1,993
—

Class A Common Stock, $.01 par value, 80,000,000 shares authorized;
26,348,051 and 24,922,561 issued and outstanding in 2015 and 2016,
respectively

Class B Common Stock, $.01 par value, 40,000,000 shares authorized;
19,942,136 and 19,767,280 issued and outstanding in 2015 and 2016,
respectively

Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss

Total Shareholders’ Equity
Total Liabilities and Shareholders’ Equity

See accompanying notes

263

249

199
449,136
946,940
(3,323 )
1,393,215
2,119,663 $

197
437,292
965,281
(2,659 )
1,400,360
2,172,660

ISC // 2016 ANNUAL REPORT // FORM 10-K // 46

INTERNATIONAL SPEEDWAY CORPORATION
Consolidated Statements of Operations

REVENUES:

Admissions, net
Motorsports and other event related
Food, beverage and merchandise
Other

EXPENSES:

Direct:

NASCAR event management fees
Motorsports and other event related
Food, beverage and merchandise

General and administrative
Depreciation and amortization
Losses on retirements of long-lived assets

Operating income
Interest income
Interest expense
Other
Equity in net income from equity investments

Income before income taxes
Income taxes

Net income
Earnings per share:

Basic and diluted

Dividends per share

Year Ended November 30,

2014

2015

2016

(in thousands, except share and per share
amounts)

129,688 $
433,738
72,880
15,630
651,936

162,988
128,229
58,265
108,563
90,352
10,148
558,545
93,391
2,107
(9,182 )
5,380
8,916
100,612
33,233
67,379 $

1.45 $

0.24 $

130,154 $
451,838
47,282
16,096
645,370

167,841
131,109
38,484
111,617
94,727
16,015
559,793
85,577
157
(9,582 )
730
14,060
90,942
34,308
56,634 $

1.21 $

0.26 $

123,521
477,197
41,968
18,330
661,016

171,836
133,322
30,142
110,828
102,156
2,905
551,189
109,827
270
(13,837 )
12,896
14,913
124,069
47,731
76,338

1.66

0.41

Basic weighted average shares outstanding

46,559,232

46,621,211

45,981,471

Diluted weighted average shares outstanding

46,573,038

46,635,830

45,995,691

See accompanying notes

ISC // 2016 ANNUAL REPORT // FORM 10-K // 47

INTERNATIONAL SPEEDWAY CORPORATION
Consolidated Statements of Comprehensive Income

Net income

Other comprehensive income:

Year Ended November 30,

2014

2015

2016

67,379 $

56,634 $

76,338

(in thousands)

Amortization of interest rate swap, net of tax benefit of $425,
$424 and $418, respectively

Comprehensive income

657
68,036 $

658
57,292 $

664
77,002

See accompanying notes

ISC // 2016 ANNUAL REPORT // FORM 10-K // 48

INTERNATIONAL SPEEDWAY CORPORATION
Consolidated Statements of Changes in Shareholders’ Equity
(in thousands)

Class A
Common
Stock
$.01 Par
Value

Class B
Common
Stock
$.01 Par
Value

Additional
Paid-in
Capital

Retained
Earnings

Accumulated
Other
Comprehensive
(Loss) Income

Total
Shareholders’
Equity

Balance at November 30, 2013

Net income

Other comprehensive income

Cash dividends ($.24 per share)

Reacquisition of previously issued common stock
Other

Stock-based compensation

Balance at November 30, 2014

Net income

Other comprehensive income

Cash dividends ($.26 per share)

Reacquisition of previously issued common stock
Conversion of Class B Common Stock to Class A
Common Stock

Other

Stock-based compensation

Balance at November 30, 2015

Net income

Other comprehensive income

Exercise of stock options

Cash dividends ($.41 per share)

Reacquisition of previously issued common stock
Conversion of Class B Common Stock to Class A
Common Stock

Other

Stock-based compensation

Balance at November 30, 2016

261 $
—
—
—
—
1
—
262
—
—
—
—

1
—
—
263
—
—
—
—
(16 )

2
—
—
249 $

200 $ 445,097 $ 846,235 $
—
—
—
—
—
—
—
(323 )
—
(82 )
2,826
—
447,518
200
—
—
—
—
—
—
—
(984 )

67,379
—
(11,181 )
—
—
—
902,433
56,634
—
(12,127 )
—

(1 )
—
—
199
—
—
—
—
—

—
(342 )
2,944
449,136
—
—
136
—
(16,558 )

—
—
—
946,940
76,338
—
—
(18,859 )
(39,138 )

(4,638 ) $ 1,287,155
67,379
657
(11,181 )

—
657
—
—
—
—
(3,981 )
—
658
—
—

—
—
—
(3,323 )
—
664
—
—
—

(323 )

(81 )
2,826
1,346,432
56,634
658
(12,127 )

(984 )

—

(342 )
2,944
1,393,215
76,338
664
136
(18,859 )

(55,712 )

—
872
3,706

(2 )
—
—
197 $ 437,292 $ 965,281 $

—
—
—

0
872
3,706
(2,659 ) $ 1,400,360

See accompanying notes

ISC // 2016 ANNUAL REPORT // FORM 10-K // 49

INTERNATIONAL SPEEDWAY CORPORATION
Consolidated Statements of Cash Flows

OPERATING ACTIVITIES
Net income

Adjustments to reconcile net income to net cash provided by
operating activities:

Gain on sale of Staten Island property

Gain on assumption of controlling interest in equity
investee
Depreciation and amortization
Stock-based compensation
Amortization of financing costs
Interest received on Staten Island note receivable
Deferred income taxes
Income from equity investments
Distribution from equity investee

Losses on retirements of long-lived assets, non-cash

Other, net
Changes in operating assets and liabilities

Receivables, net
Prepaid expenses and other assets
Accounts payable and other liabilities
Deferred income
Income taxes

Net cash provided by operating activities
INVESTING ACTIVITIES
Capital expenditures
Distribution from equity investee and affiliate
Equity investments and advances to affiliate
Proceeds from sale of Staten Island property
Proceeds from sale of assets

Cash included in assumption of ownership interest in equity
investee
Other, net

Net cash used in investing activities
FINANCING ACTIVITIES

Payment of long-term debt
Deferred financing fees
Exercise of Class A common stock options
Cash dividends paid
Reacquisition of previously issued common stock

Net cash used in financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year

Year Ended November 30,

2014

2015

2016

(in thousands)

67,379 $

56,634 $

76,338

—

(5,447 )
90,352
2,826
1,779
5,087
(12,346 )
(8,916 )
10,076
2,644
380

(1,776 )
1,977
(517 )
(1,692 )
11,041
162,847

(183,936 )
11,924
(1,322 )
6,100
—

4,686
32
(162,516 )

—
94,727
2,944
1,787
4,648
(15,678 )
(14,060 )
15,209
3,490
(702 )

(14,514 )
4,466
5,128
2,621
5,287
151,987

(155,016 )
16,841
—
—
4,442

—
(5 )

(13,631 )

—
102,156
3,706
1,745
1,162
72,936
(14,913 )
16,067
2,399
(277 )

6,667
(14,751 )
4,837
192
1,255
245,888

(140,793 )
9,833
(130 )
66,728
560

—
(6 )

(133,738 )

(63,808 )

(2,807 )
—
—
(11,181 )
(323 )

(14,311 )
(13,980 )
172,827
158,847 $

(3,437 )
—
—
(12,127 )
(984 )

(16,548 )
1,701
158,847
160,548 $

(3,408 )
(1,058 )
136
(18,859 )
(55,712 )

(78,901 )
103,179
160,548
263,727

Cash and cash equivalents at end of year

See accompanying notes

ISC // 2016 ANNUAL REPORT // FORM 10-K // 50

INTERNATIONAL SPEEDWAY CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOVEMBER 30, 2016

NOTE 1 — DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

DESCRIPTION OF BUSINESS: International Speedway Corporation (“ISC”), including its wholly owned subsidiaries
(collectively the “Company”), is a leading promoter of motorsports themed entertainment activities in the United States. As of
November 30, 2016, the Company owned and/or operated 13 of the nation’s major motorsports entertainment facilities as
follows:

Track Name

Daytona International Speedway
Talladega Superspeedway
Michigan International Speedway
Auto Club Speedway of Southern California
Kansas Speedway
Richmond International Raceway
Darlington Raceway
Chicagoland Speedway
Martinsville Speedway
Phoenix International Raceway
Homestead-Miami Speedway
Watkins Glen International
Route 66 Raceway

Location

Track Length

Daytona Beach, Florida
Talladega, Alabama
Brooklyn, Michigan
Fontana, California
Kansas City, Kansas
Richmond, Virginia
Darlington, South Carolina
Joliet, Illinois

Martinsville, Virginia
Phoenix, Arizona
Homestead, Florida
Watkins Glen, New York

Joliet, Illinois

2.5 miles
2.7 miles
2.0 miles
2.0 miles
1.5 miles
0.8 miles
1.3 miles
1.5 miles
0.5 miles
1.0 miles
1.5 miles
3.4 miles
0.25 miles

In 2016, these motorsports entertainment facilities promoted well over 100 stock car, open wheel, sports car, truck, motorcycle
and other racing events, including:

• 21 National Association for Stock Car Auto Racing (“NASCAR”) NASCAR Cup Series events;
• 14 NASCAR Xfinity Series events;

• 9 NASCAR Camping World Truck Series events;
• 2 International Motor Sports Association (“IMSA”) Weather Tech SportsCar Championship Series events including the

premier sports car endurance event in the United States, the Rolex 24 At DAYTONA;

• 5 ARCA Racing Series events;
• One National Hot Rod Association (“NHRA”) Mello Yello Drag Racing Series event;

• Two IndyCar ("IndyCar") Series event; and
• A number of other prestigious stock car, sports car, open wheel and motorcycle events.

Motor Racing Network, Inc. (“MRN”), the Company’s proprietary radio network, produces and syndicates to radio stations live
coverage of the Monster Energy NASCAR Cup, Xfinity and Camping World Truck series races and certain other races
conducted at the Company’s motorsports entertainment facilities, as well as some races from motorsports entertainment
facilities the Company does not own. In addition, MRN provides production services for the trackside large screen video

ISC // 2016 ANNUAL REPORT // FORM 10-K // 51

display units, at NASCAR Cup Series event weekends that take place at the Company's motorsports facilities. MRN also
produces and syndicates daily and weekly NASCAR racing-themed programs.

SIGNIFICANT ACCOUNTING POLICIES:

PRINCIPLES OF CONSOLIDATION: The accompanying consolidated financial statements include the accounts of
International Speedway Corporation, and its wholly owned subsidiaries. All material intercompany accounts and transactions
have been eliminated in consolidation.

CASH AND CASH EQUIVALENTS: For purposes of reporting cash flows, cash and cash equivalents include cash on hand,
bank demand deposit accounts and overnight sweep accounts used in the Company’s cash management program. All highly
liquid investments with stated maturities of three months or less from the date of purchase are classified as cash equivalents.

The Company maintained its cash and cash equivalents with a limited number of financial institutions at November 30, 2016.

RECEIVABLES: Receivables are stated at their estimated collectible amounts. The allowance for doubtful accounts is
estimated based on historical experience of write offs and current expectations of conditions that might impact the collectability
of accounts.

PROPERTY AND EQUIPMENT: Property and equipment, including improvements to existing facilities, are stated at cost.
Depreciation is provided for financial reporting purposes using the straight-line method over the estimated useful lives as
follows:

Buildings, grandstands and motorsports entertainment facilities
Furniture and equipment

10-30 years
3-8 years

Leasehold improvements are depreciated over the shorter of the related lease term or their estimated useful lives. The Company
evaluates the carrying value of property and equipment and if there are indicators of potential impairment. If events or
circumstances indicate that the carrying value of an asset may not be recoverable, an impairment loss would be recognized
equal to the difference between the carrying value of the asset and its fair value.

EQUITY INVESTMENTS: The Company’s investments in joint ventures and other investees where it can exert significant
influence on the investee, but does not have effective control over the investee, are accounted for using the equity method of
accounting. The Company’s equity in the net income (loss) from equity method investments is recorded as income (loss) with a
corresponding increase (decrease) in the investment. Distributions received from the equity investees reduce the investment.
Distributions from equity investees representing the Company's share of the equity investee's earnings are treated as cash
proceeds from operations while distributions in excess of the equity investee's earnings are considered a return of capital and
treated as cash proceeds from investing activities in the Company's consolidated statement of cash flows.

GOODWILL AND INTANGIBLE ASSETS: All business combinations are accounted for under the purchase method. The
excess of the cost of the acquisition over fair value of the net assets acquired (including recognized intangibles) is recorded as
goodwill. Business combinations involving existing motorsports entertainment facilities commonly result in a significant
portion of the purchase price being allocated to the fair value of the contract-based intangible asset associated with long-term
relationships manifest in the sanction agreements with sanctioning bodies, such as NASCAR and IMSA. The continuity of
sanction agreements with these bodies has historically enabled the Company to host these motorsports events year after year.
While individual sanction agreements may be of terms as short as one year, a significant portion of the purchase price in excess
of the fair value of acquired tangible assets is commonly paid to acquire anticipated future cash flows from events promoted
pursuant to these agreements which are expected to continue for the foreseeable future and therefore, in accordance with
Accounting Standards Codification (“ASC”) 805, are recorded as indefinite-lived intangible assets recognized apart from
goodwill. The Company’s goodwill and other intangible assets are all associated with our Motorsports Event segment.

The Company follows applicable authoritative guidance on accounting for goodwill and other intangible assets which specifies,
among other things, non-amortization of goodwill and other intangible assets with indefinite useful lives and requires testing
for possible impairment, either upon the occurrence of an impairment indicator or at least annually. The Company completes its
annual testing in its fiscal fourth quarter, based on assumptions regarding the Company’s future business outlook and expected
future discounted cash flows attributable to such assets (using the fair value assessment provision of applicable authoritative
guidance), supported by quoted market prices or comparable transactions where available or applicable.

In connection with the Company’s fiscal 2016 assessment of goodwill and intangible assets for possible impairment, the
Company used the future discounted cash flows / income approach based on Level 3 Fair Value hierarchy. The Company
believes its methods used to determine fair value and evaluate possible impairment were appropriate, relevant, and represent

ISC // 2016 ANNUAL REPORT // FORM 10-K // 52

methods customarily available and used for such purposes. The Company’s latest annual assessment of goodwill and other
intangible assets in the fourth quarter of fiscal 2016 indicated there had been no impairment and the fair value exceeded the
carrying value for the respective reporting units.

During fiscal 2016, the Company believes there has been no significant change in the long-term fundamentals of its ongoing
motorsports event business. The Company believes its present operational and cash flow outlook further support its conclusion.
While the Company continues to review and analyze many factors that can impact its business prospects in the future, its
analysis is subjective and is based on conditions existing at, and trends leading up to, the time the estimates and assumptions
are made. Different conditions or assumptions, or changes in cash flows or profitability, if significant, could have a material
adverse effect on the outcome of the impairment evaluation and the Company’s future condition or results of operations.

FAIR VALUE OF 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, 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), clarification and additional
disclosure is required about the use of fair value measurements.

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. These inputs are summarized in the three broad levels 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)

DEFERRED FINANCING FEES: Deferred financing fees are amortized over the term of the related debt and are included in
other non-current assets.

COMPREHENSIVE INCOME: Comprehensive income is the changes in equity of an enterprise except those resulting from
shareholder transactions.

INCOME TAXES: Income taxes have been provided using the asset and liability method. Under this method the Company’s
estimates of deferred income taxes and the significant items giving rise to deferred tax assets and liabilities reflect its
assessment of actual future taxes to be paid on items reflected in its financial statements, giving consideration to both timing
and probability of realization.

The Company establishes tax reserves related to certain matters, including penalties and interest, in the period when it is
determined that it is probable that additional taxes, penalties and interest will be paid, and the amount is reasonably estimable.
Such tax reserves are adjusted, as needed, in light of changing circumstances, such as statute of limitations expirations and
other developments relating to uncertain tax positions and current tax items under examination, appeal or litigation.

REVENUE RECOGNITION: Advance ticket sales and event-related revenues for future events are deferred until earned,
which is generally once the events are conducted. The recognition of event-related expenses is matched with the recognition of
event-related revenues.

NASCAR contracts directly with certain network providers for television rights to the entire Monster Energy NASCAR Cup,
Xfinity and Camping World Truck series schedules. Event promoters share in the television rights fees in accordance with the
provision of the sanction agreement for each Monster Energy NASCAR Cup, Xfinity and Camping World Truck series event.
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 Camping World Truck series event as a component of its sanction fees. 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. 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 revenues from marketing partnerships are paid in accordance with negotiated contracts, with the identities of
partners and the terms of sponsorship changing from time to time. Some of our marketing partnership agreements are for
multiple facilities and/or events and include multiple specified elements, such as tickets, hospitality chalets, suites, display
space and signage for each included event. The allocation of such marketing partnership revenues between the multiple

ISC // 2016 ANNUAL REPORT // FORM 10-K // 53

elements, events and facilities is based on relative selling price. The sponsorship revenue allocated to an event is recognized
when the event is conducted.

Revenues and related costs from the sale of food, beverage and merchandise to retail customers are recognized at the time of
sale.

Kansas Speedway ("Kansas") and Chicagoland Speedway ("Chicagoland") offer Preferred Access Speedway Seating (“PASS”)
agreements, which give purchasers the exclusive right and obligation to purchase season-ticket packages for certain sanctioned
racing events annually, under specified terms and conditions. Among the conditions, licensees are required to purchase all
season-ticket packages when and as offered each year. PASS agreements automatically terminate without refund should owners
not purchase any offered season tickets.

Net fees received under PASS agreements are deferred and are amortized into income over the term of the agreements. Long-
term deferred income under the PASS agreements totals approximately $4.6 million and $3.8 million at November 30, 2015
and 2016, respectively.

ADVERTISING EXPENSE: Advertising costs are expensed as incurred. Advertising expense was approximately
$16.5 million, $17.1 million and $17.7 million for the years ended November 30, 2014, 2015 and 2016, respectively.

LOSS CONTINGENCIES: Legal and other costs incurred in conjunction with loss contingencies are expensed as incurred.

USE OF ESTIMATES: The preparation of the consolidated financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

RECLASSIFICATIONS: Certain prior year amounts in the Consolidated Balance Sheets have been reclassified to conform
with the current year presentation.

NEW ACCOUNTING PRONOUNCEMENTS: In May 2014, the Financial Accounting Standards Board ("FASB"), in
conjunction with the International Accounting Standards Board ("IASB"), issued Accounting Standards Update ("ASU")
No. 2014-09, "Revenue from Contracts with Customers". The objective of this Update is to significantly enhance comparability
and clarify principles of revenue recognition practices across entities, industries, jurisdictions, and capital markets. On July 9,
2015, the FASB approved a one-year deferral of the effective date, while permitting entities to elect to adopt one year earlier on
the original effective date. As a result, for a public entity, the amendments in this Update are effective for annual reporting
periods beginning after December 15, 2017, including interim periods within that reporting period. The standard can be adopted
either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption.
The Company is currently in the process of analyzing the information necessary to determine the impact of adopting this new
guidance on its financial position, results of operations, and cash flows. The Company will adopt the provisions of this
statement in the first quarter of fiscal 2019.

In April 2015, the FASB, in conjunction with the IASB, issued ASU No. 2015-03, "Interest - Imputation of Interest". The
objective of this Update is to simplify the presentation of debt issuance costs. The amendments in this Update require that debt
issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction from the carrying
amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs
are not affected by the amendments in this Update. The Company has adopted the provisions of this statement in the first
quarter of fiscal 2016 and prior periods have been retrospectively adjusted (see "Note 6. Long-Term Debt").

In August 2015, the FASB issued ASU No. 2015-15, "Interest - Imputation of Interest (Sub-Topic 835-30): Presentation and
Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements". Given the absence of
authoritative guidance within Update 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff
would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred
debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding
borrowings on the line-of-credit arrangement. The Company has adopted the provisions of this statement in the first quarter of
fiscal 2016 and prior periods have been retrospectively adjusted.

In November 2015, the Financial Accounting Standards Board issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance
Sheet Classification of Deferred Taxes". The objective of this Update is to simplify the presentation of deferred income taxes.
The amendments in this Update require that deferred assets and liabilities be classified as long-term on the balance sheet
instead of separating the deferred taxes into current and noncurrent amounts. For a public entity, the amendments in this Update
are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting
period. Early application is permitted for financial statements that have not been previously issued. The Company believes that

ISC // 2016 ANNUAL REPORT // FORM 10-K // 54

this treatment of deferred taxes reduces the complexity of financial reporting while improving the usefulness of the information
provided to users of the financial statements. As a result the Company elected to early adopt this Update prospectively as of
November 30, 2015.

NOTE 2 — EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the years ended November 30, (in
thousands, except share and per share amounts):

Numerator:

Net income

Basic earnings per share denominator:

Weighted average shares outstanding

Basic earnings per share:

Income from continuing operations
Loss from discontinued operations

Net income

Denominator:

2014

2015

2016

67,379 $

56,634 $

76,338

46,559,232

46,621,211

45,981,471

1.45 $

1.21 $

1.66

Weighted average shares outstanding
Common stock options

Diluted weighted average shares outstanding

46,559,232
13,806
46,573,038

46,621,211
14,619
46,635,830

45,981,471
14,220
45,995,691

Basic and diluted earnings per share

1.45 $

1.21 $

1.66

Anti-dilutive shares excluded in the computation of diluted
earnings per share

121,462

98,928

81,292

NOTE 3 — PROPERTY AND EQUIPMENT

Property and equipment consists of the following as of November 30, (in thousands):

Land and leasehold improvements
Buildings, grandstands and motorsports entertainment facilities
Furniture and equipment
Construction in progress

Less accumulated depreciation

2015

2016

244,496 $

1,695,682
215,928
131,897
2,288,003
839,039
1,448,964 $

244,337
1,831,804
258,510
55,011
2,389,662
934,156
1,455,506

Depreciation expense was approximately $90.2 million, $94.7 million and $102.2 million for the years ended November 30,
2014, 2015 and 2016, respectively. The depreciation expense for the year ended November 30, 2015, includes approximately

ISC // 2016 ANNUAL REPORT // FORM 10-K // 55

$6.8 million of accelerated depreciation that was recorded due to the shortening of the service lives of certain assets associated
with DAYTONA Rising and capacity management initiatives. There were no similar costs in fiscal 2016.

NOTE 4 — RETIREMENTS OF LONG-LIVED ASSETS

The Company recorded before-tax charges relating to retirements of long-lived assets during the fiscal years ending November
30, as follows (in thousands):

Losses on retirements of long-lived assets

Less: cash portion of losses on asset retirements

Non-cash losses on retirements of long-lived assets

2014

2015

2016

10,148 $
7,504
2,644 $

16,015 $
12,525
3,490 $

2,905
506
2,399

The fiscal 2014 retirements are primarily attributable to the ongoing removal of certain assets in connection with the track
repaving at Kansas, as well as guest enhancements at Talladega Superspeedway (“Talladega”), Richmond International
Raceway (“Richmond”) and certain of the Company's other facilities.

The fiscal 2015 retirements are primarily attributable to the removal of assets not fully depreciated in connection with
DAYTONA Rising, capacity management initiatives and other capital improvements.

The fiscal 2016 retirements are primarily attributable to the removal of assets not fully depreciated in connection with
DAYTONA Rising and other capital improvements.

NOTE 5 — 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 is the managing member of Kansas Entertainment and is responsible for the operations of
the casino.

The Company has accounted for Kansas Entertainment as an equity investment in its consolidated financial statements as of
November 30, 2014, 2015 and 2016, respectively. The Company’s 50.0 percent portion of Kansas Entertainment’s net income
was approximately $8.9 million, $14.1 million and $14.9 million for fiscal years 2014, 2015 and 2016, respectively, and is
included in equity in net income from equity investments in the Company's consolidated statements of operations.

Distributions from Kansas Entertainment, for the years ended November 30, are as follows (in thousands):

Distribution from profits

Distribution in excess of profits

Total Distributions

Fairfield Inn at ONE DAYTONA

2014

2015

2016

10,076 $
11,924
22,000 $

15,209 $
16,841
32,050 $

16,067
9,833
25,900

Since June 2013, the Company has pursued development of ONE DAYTONA, the proposed premier mixed use and
entertainment destination across from its Daytona International Speedway. 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 the Company, was formed to own, construct and operate
a Fairfield Inn Hotel. The Fairfield will be situated within the ONE DAYTONA development. As per the partnership
agreement, the Company's 33.25 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.

In June 2016, DBR contributed land to the joint venture as per the agreement. Vertical construction of the hotel has commenced
and is expected to open in the third quarter of fiscal 2017. DHGII is the managing member of the Fairfield and will be
responsible for the development and operations of the hotel. There were no operations during the year ended November 30,
2016.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 56

Staten Island Property

On August 5, 2013, the Company announced that it sold its 676 acre parcel of property located in Staten Island, New York, to
Staten Island Marine Development, LLC (“Marine Development”). Marine Development purchased 100 percent of the
outstanding equity membership interests of 380 Development LLC (“380 Development”), a wholly owned indirect subsidiary
of ISC and owner of the Staten Island property, for a total sales price of $80.0 million. In addition, the Company previously
received approximately $4.2 million for an option provided to the purchaser that is nonrefundable and does not apply to the
$80.0 million sales price.

The Company received $7.5 million, less closing and other administrative costs, of the sales price at closing. The remaining
sales price was financed with the Company holding a secured mortgage interest in 380 Development as well as the underlying
property. The mortgage balance bore interest at an annual rate of 7.0 percent. In accordance with the terms of the agreement,
the Company received a principal payment of approximately $6.1 million plus interest on this mortgage balance through
February 29, 2016. The remaining purchase price of $66.4 million, was due in March 2016.

In March 2016, the Company completed an assignment of all rights, title and interest in the mortgage and underlying
promissory note to an affiliate of Matrix Development Group, a New York/New Jersey area developer, and received the
remaining principal balance of $66.4 million, plus additional consideration of approximately $0.3 million. The Company has
no further commitments or contingencies related to the property or its sale. As a result, in the second quarter of fiscal 2016, the
Company recorded a gain of approximately $13.6 million, comprised of recognition of profit of approximately $1.9 million,
interest totaling approximately $11.4 million, and other consideration paid. The deferred gain of $1.9 million is included in
Other operating revenue in the Company's consolidated statement of operations, and the interest, and additional consideration
received, is included in Other Revenue in the Company's consolidated statement of operations.

The net proceeds from the sale, combined with the mortgage interest and related total cash tax benefit, has provided the
Company with approximately $129.8 million in incremental cash flow through the aforementioned assignment of all rights.

Motorsports Authentics

Prior to January 31, 2014, the Company was partners with Speedway Motorsports, Inc. ("SMI") in a 50/50 joint venture,
SMISC, LLC, which, through its wholly owned subsidiary Motorsports Authentics, LLC conducts business under the name
Motorsports Authentics (“MA”). MA designs, promotes, markets and distributes motorsports licensed merchandise. On
January 31, 2014, SMI abandoned its interest and rights in SMISC, LLC, consequently bringing the Company's ownership to
100.0 percent. MA's operations are included in the Company's consolidated operations subsequent to the date of SMI's
abandonment. Prior to January 31, 2014, MA was accounted for as an equity investment in the Company's consolidated
financial statements.

As a result of SMI's abandonment of their interest in SMISC, LLC, the Company recorded other income of approximately
$5.4 million, representing the fair value of MA, over the carrying value, as of January 31, 2014. The fair value was based on a
discounted cash flow analysis using level 3 inputs. Most of the fair value represented the value of MA's working capital and the
fair value was not sensitive to assumptions used in the discounted cash flow analysis. In addition, the Company recognized tax
benefits of approximately $4.0 million, representing the tax benefit associated with various operating loss carryforwards of MA
that are expected to be realized in its consolidated tax filings in the future and certain other tax filing positions of SMISC, LLC.
In November 2014, the Company recognized an impairment of a long-lived intangible asset of approximately $0.6 million,
which is included in non-cash losses on retirements of long-lived assets. MA's operating income contribution, subsequent to
consolidation, was immaterial, and is included in the Motorsports Event segment.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 57

Summarized financial information of the Company’s equity investments as of and for the years ended November 30, are as
follows (in thousands):

Current assets
Noncurrent assets
Current liabilities
Noncurrent liabilities
Net sales
Gross profit
Operating income
Net income

2014

2015

2016

33,349 $
215,226
19,273
—
141,849
72,031
20,153
20,153

17,204 $
196,164
17,749
—
153,183
80,691
30,417
30,417

15,856
177,479
17,380
—
153,276
82,087
32,136
32,136

NOTE 6 — GOODWILL AND INTANGIBLE ASSETS

The gross carrying value and accumulated amortization of the major classes of intangible assets as of November 30, are as
follows (in thousands):

Gross
Carrying
Amount

2015

Accumulated
Amortization

Net
Carrying
Amount

10 $
114
124

177,813
793
178,606
178,730 $

10 $
94
104

—
—
—
104 $

—
20
20

177,813
793
178,606
178,626

Gross
Carrying
Amount

2016

Accumulated
Amortization

Net
Carrying
Amount

10 $
120
130

177,813
793
178,606
178,736 $

10 $
97
107

—
—
—
107 $

—
23
23

177,813
793
178,606
178,629

Amortized intangible assets:

Food, beverage and merchandise contracts
Other

Total amortized intangible assets
Non-amortized intangible assets:

NASCAR — sanction agreements
Other

Total non-amortized intangible assets
Total intangible assets

Amortized intangible assets:

Food, beverage and merchandise contracts
Other

Total amortized intangible assets
Non-amortized intangible assets:

NASCAR — sanction agreements
Other

Total non-amortized intangible assets
Total intangible assets

ISC // 2016 ANNUAL REPORT // FORM 10-K // 58

The following table presents current and expected amortization expense of the existing intangible assets as of November 30, for
each of the following periods (in thousands):

Amortization expense for the year ended November 30, 2016
Estimated amortization expense for the year ending November 30:

2017
2018
2019
2020
2021

2
2
2
2
15

There were no changes in the carrying value of goodwill during fiscal 2015 and 2016.

NOTE 7 — LONG-TERM DEBT

Long-term debt consists of the following as of November 30, (in thousands):

4.63 percent Senior Notes
3.95 percent Senior Notes
6.25 percent Term Loan
TIF bond debt service funding commitment
Revolving Credit Facility

Less: current portion

2015

2016

Unamortized
Discount and
Debt Issuance
Costs

Principal

65,000 $
100,000
48,726
54,646
—
268,372
3,408
264,964 $

(261 ) $
(370 )
—
(1,905 )
—
(2,536 )
(334 )

(2,202 ) $

65,000 $
100,000
47,878
52,145
—
265,023
3,738
261,285 $

(210 )
(328 )
—
(1,665 )
—
(2,203 )
(334 )

(1,869 )

For the year ending November 30:

Schedule of Payments (in thousands)

2017

2018

2019

2020

2021

Thereafter

Net premium

Total

3,738
4,091
4,522
5,326
70,808
176,933
265,418
(395 )
265,023

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, 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

ISC // 2016 ANNUAL REPORT // FORM 10-K // 59

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 November 30, 2016, the
Company was in compliance with its various restrictive covenants. At November 30, 2016, 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 our 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
November 30, 2016, the Company was in compliance with its various restrictive covenants. At November 30, 2016,
outstanding principal on the 3.95 percent Senior Notes was approximately $100.0 million.

Debt associated with the Company's wholly owned subsidiary, Chicagoland Speedway, LLC, which owns and operates
Chicagoland and Route 66 Raceway, consisted of revenue bonds payable (“4.82 percent Revenue Bonds”) consisting of
economic development revenue bonds issued by the City of Joliet, Illinois to finance certain land improvements. The 4.82
percent Revenue Bonds had an interest rate of 4.82 percent and a monthly payment of approximately $29,000 principal and
interest. The principal on the 4.82 percent Revenue Bonds was paid in full in November 2015.

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 principal and interest.
At November 30, 2016, the outstanding principal on the 6.25 percent Term Loan was approximately $47.9 million.

At November 30, 2016, in connection with the financing of Kansas Speedway, totaled approximately $52.1 million, net of the
unamortized discount, which is comprised of a $2.8 million principal amount, 6.15 percent term bond due December 1, 2017
and a $49.7 million principal amount, 6.75 percent term bond due December 1, 2027. The TIF bonds are 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.

On September 27, 2016, the Company amended and extended its existing $300.0 million credit facility, maturing November
2017, and entered into a new $300.0 million revolving credit facility (“2016 Credit Facility”). The 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,
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. 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 November 30, 2016, the Company was in compliance with its various restrictive covenants. At
November 30, 2016, the Company had no outstanding borrowings under the 2016 Credit Facility.

At November 30, 2016, the Company has approximately $2.7 million, net of tax, deferred in accumulated other comprehensive
loss associated with a terminated interest rate swap which is being amortized as interest expense over life of the 4.63 percent
Senior Notes (see above).

ISC // 2016 ANNUAL REPORT // FORM 10-K // 60

Total interest expense incurred by the Company for the years ended November 30, are as follows (in thousands):

Interest expense
Less: capitalized interest

Net interest expense

2014

2015

2016

16,479 $
7,297
9,182 $

16,286 $
6,704
9,582 $

16,038
2,201
13,837

At November 30, 2015 and 2016, the Company recorded deferred financing costs of approximately $3.1 million and
$3.6 million, respectively, net of accumulated amortization. These costs are being amortized on a straight line method, which
approximates the effective yield method, over the life of the related financing.

NOTE 8 — FEDERAL AND STATE INCOME TAXES

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for income tax purposes.

Significant components of the provision for income taxes for the years ended November 30, are as follows (in thousands):

Current tax expense (benefit):

Federal
State

Deferred tax expense (benefit):

Federal
State

Provision for income taxes

2014

2015

2016

42,243 $
3,336

46,095 $
3,891

(13,450 )
1,104
33,233 $

(15,164 )

(514 )
34,308 $

(27,061 )
1,856

70,186
2,750
47,731

The reconciliation of income tax expense computed at the federal statutory tax rates to income tax expense for the years ended
November 30, is as follows (percent of pre-tax income):

Income tax computed at federal statutory rates
State income taxes, net of federal tax benefit
MA abandonment benefit

Other, net

2014

2015

2016

35.0 %
3.8
(5.9 )
0.1
33.0 %

35.0 %
2.5
—
0.2
37.7 %

35.0 %
3.2
—
0.3
38.5 %

ISC // 2016 ANNUAL REPORT // FORM 10-K // 61

The components of the net deferred tax assets (liabilities) at November 30, are as follows (in thousands):

2015

2016

Loss carryforwards
Deferred revenues
Accruals
Compensation related
Interest
Deferred tax assets
Valuation allowance

Deferred tax assets, net of valuation allowance
Amortization and depreciation
Equity investment
Other

Deferred tax liabilities
Net deferred tax liabilities

Deferred tax assets — current
Deferred tax liabilities — noncurrent

Net deferred tax liabilities

13,918 $
2,609
7,204
3,509
3,406
30,646
(7,893 )
22,753
(357,389 )
(1,273 )
(323 )

(358,985 )
(336,232 ) $

— $

(336,232 )

(336,232 ) $

15,477
1,529
2,946
4,065
2,740
26,757
(7,031 )
19,726
(428,828 )
(180 )
(303 )

(429,311 )
(409,585 )

—
(409,585 )

(409,585 )

At November 30, 2016 the Company has deferred tax assets related to various state loss carryforwards totaling approximately
$13.2 million that expire in varying amounts beginning in fiscal 2019. The Company also has deferred tax assets related to
federal loss carryforwards subject to limitations under IRC 382 related to MA totaling approximately $2.3 million that expire
beginning in fiscal 2032. The valuation allowance at November 30, 2015 and 2016 was primarily related to state loss
carryforwards that, in the judgment of management, are not more likely to be realized. In evaluating the Company’s ability to
recover its deferred income tax assets it considers all available positive and negative evidence, including operating results,
ongoing tax planning and forecasts of future taxable income on a jurisdiction by jurisdiction basis.

Federal returns for fiscal years 2012 through 2015 remain open and subject to examination by the Internal Revenue Service.
The Company files and remits state income taxes in various states where the Company has determined it is required to file state
income taxes. The Company’s filings with those states remain open for audit for the fiscal years 2011 through 2015.

A reconciliation of the beginning and ending amount of unrecognized tax liability is as follows (in thousands):

Balance at December 1, 2015

Reductions for tax positions of prior years

Balance at November 30, 2016

356
(45 )
311

In December 2015, Congress passed the Protecting Americans from Tax Hikes Act which included a retroactive renewal back
to January 1, 2015 of the previously expired tax legislation. The Act extended accelerated depreciation on qualified capital
investments placed into service. This bonus depreciation provision is 50% for qualifying assets placed into service from 2015
through 2017, 40% for qualifying assets placed into service in 2018 and 30% for qualifying assets placed into service in 2019.
The impact of this tax legislation did not affect the Company's fiscal 2016 effective tax rate, but correspondingly reduced the
current income tax payable and increased the noncurrent deferred tax liability by $73.4 million.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 62

NOTE 9 — CAPITAL STOCK

The Company’s authorized capital includes 80.0 million shares of Class A Common Stock, par value $.01 (“Class A Common
Stock”), 40.0 million shares of Class B Common Stock, par value $.01 (“Class B Common Stock”), and 1.0 million shares of
Preferred Stock, par value $.01 (“Preferred Stock”). The shares of Class A Common Stock and Class B Common Stock are
identical in all respects, except for voting rights and conversion rights as described below. Each share of Class A Common
Stock entitles the holder to one-fifth (1/5) vote on each matter submitted to a vote of the Company’s shareholders and each
share of Class B Common Stock entitles the holder to one (1) vote on each such matter, in each case including the election of
directors. Holders of Class A Common Stock and Class B Common Stock are entitled to receive dividends at the same rate if
and when declared by the Board of Directors out of funds legally available there from, subject to the dividend and liquidation
rights of any Preferred Stock that may be issued and outstanding. Class A Common Stock has no conversion rights. Class B
Common Stock is convertible into Class A Common Stock, in whole or in part, at any time at the option of the holder on the
basis of one share of Class A Common Stock for each share of Class B Common Stock converted. Each share of Class B
Common Stock will also automatically convert into one share of Class A Common Stock if, on the record date of any meeting
of the shareholders, the number of shares of Class B Common Stock then outstanding is less than 10.0 percent of the aggregate
number of shares of Class A Common Stock and Class B Common Stock then outstanding.

The Board of Directors of the Company is authorized, without further shareholder action, to divide any or all shares of the
authorized Preferred Stock into series and fix and determine the designations, preferences and relative rights and qualifications,
limitations, or restrictions thereon of any series so established, including voting powers, dividend rights, liquidation
preferences, redemption rights and conversion privileges. No shares of Preferred Stock are outstanding. The Board of Directors
has not authorized any series of Preferred Stock, and there are no plans, agreements or understandings for the authorization or
issuance of any shares of Preferred Stock.

Stock Purchase Plan

The Company has a share repurchase program (“Stock Purchase Plan”) under which it is authorized to purchase up to
$330.0 million of its outstanding Class A common shares. In November 2016, the Company's Board of Directors expanded its
Stock Purchase Plan by an incremental $200.0 million, bringing its total current authorization to $530.0 million. 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. No shares have been or will be knowingly purchased from
Company insiders or their affiliates.

Since inception of the Stock Purchase Plan through November 30, 2016, the Company has purchased 8,722,073 shares of its
Class A common shares, for a total of approximately $323.4 million. There were no purchases of the Company's Class A shares
during fiscal 2014 or 2015. In fiscal 2016 the Company purchased 1.7 million shares of our Class A common shares, at an
average cost of approximately $33.25 per share (including commissions), for a total of approximately $55.1 million.
Transactions occur in open market purchases and pursuant to a trading plan under Rule 10b5-1. At November 30, 2016, the
Company has approximately $206.6 million remaining repurchase authority under the current Stock Purchase Plan.

NOTE 10 — COMMITMENTS AND CONTINGENCIES

International Speedway Corporation has a salary incentive plan (the “ISC Plan”) designed to qualify under Section 401(k) of
the Internal Revenue Code. Employees of International Speedway Corporation and certain participating subsidiaries who have
completed one month of continuous service are eligible to participate in the ISC Plan. After twelve months of continuous
service, matching contributions are made to a savings trust (subject to certain limits) concurrent with employees’ contributions.
The level of the matching contribution depends upon the amount of the employee contribution. Employees become 100 percent
vested upon entrance to the ISC Plan. The contribution expense for the ISC Plan was approximately $1.6 million, $1.7 million
and $1.7 million for the years ended November 30, 2014, 2015 and 2016, respectively.

The estimated cost to complete approved projects and current construction in progress at November 30, 2016 at the Company’s
existing facilities is approximately $247.2 million. Included in Other current liabilities on the Company's Consolidated Balance
Sheets are approximately $6.5 million and $4.1 million, of certain administrative costs as of November 30, 2015 and 2016,
respectively.

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 the speedway’s

ISC // 2016 ANNUAL REPORT // FORM 10-K // 63

boundaries and are not the Company’s obligation. KSC has agreed to guarantee the payment of principal, any required
premium and interest on the 2002 STAR Bonds. At November 30, 2016, the Unified Government had approximately
$0.9 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.

The Company operates Homestead-Miami Speedway under an operating agreement which expires December 31, 2032 and
provides for subsequent renewal terms through December 31, 2075. The Company operates Daytona International Speedway
under an operating lease agreement which expires November 7, 2054. The Company also has various operating leases for office
space and equipment. The future minimum payments under the operating agreement and leases utilized by the Company having
initial or remaining non-cancelable terms in excess of one year at November 30, 2016, are as follows (in thousands):

For the year ending November 30:

2017
2018
2019
2020
2021
Thereafter

Total

Operating
Agreement

Operating
Leases

1,055 $
1,055
1,055
1,055
1,055
11,693
16,968 $

4,570
2,995
1,947
1,123
943
30,318
41,896

Total expenses incurred under the track operating agreement, these operating leases and all other short-term rentals during the
years ended November 30, 2014, 2015 and 2016 were approximately $14.7 million, $14.4 million, and $13.7 million,
respectively.

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 $6.0 million at
November 30, 2016. At November 30, 2016, there were no amounts drawn on the standby letters of credit.

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.

NOTE 11 — 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
the American Historic Racing Motorcycle Association, the American Motorcyclist Association, the Automobile Racing Club of
America, the American Sportbike Racing Association — Championship Cup Series, the Federation Internationale de
L’Automobile, the Federation Internationale Motocycliste, IMSA, Historic Sportscar Racing, IndyCar Series, NASCAR,
NHRA, 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, which sanctions many of the Company’s principal racing
events, is a member of the France Family Group which controls over 73.0 percent of the combined voting power of the
outstanding stock of the Company, as of November 30, 2016, 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 Camping World Truck series schedules. Under the terms of this arrangement,
NASCAR retains 10.0 percent of the gross broadcast rights fees allocated to each NASCAR Cup, Xfinity and Camping World
Truck series event as a component of its sanction fees. 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 NASCAR Cup, Xfinity and Camping World Truck series events conducted at its wholly owned
facilities were approximately $302.9 million, $314.5 million and $325.1 million in fiscal years 2014, 2015 and 2016,
respectively. The Company recorded prize money of approximately $84.0 million, $87.2 million and $89.6 million in fiscal
years 2014, 2015 and 2016, 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.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 64

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.
The prize and point fund monies are distributed by NASCAR to participants in the events. Total NEM fees paid by the
Company were approximately $163.0 million, $167.8 million and $171.8 million, for the fiscal years ended November 30,
2014, 2015 and 2016, respectively. The Company has outstanding receivables related to NASCAR and its affiliates of
approximately $29.8 million and $21.3 million at November 30, 2015 and 2016, respectively.

The Company and NASCAR, along with certain NASCAR affiliates, share a variety of expenses in the ordinary course of
business. NASCAR pays rent, as well as a related maintenance fee (allocated based on square footage), to the Company for
office space in Daytona Beach, Florida. NASCAR pays the Company for radio, program and strategic initiative advertising,
hospitality and suite rentals, various tickets and credentials, catering services, participation in a NASCAR racing event banquet,
and track and other equipment rentals. The Company pays NASCAR for certain advertising, participation in NASCAR racing
series banquets, the use of NASCAR trademarks and intellectual images and production space on trackside large screen video
display units. The Company’s payments to NASCAR for MRN’s broadcast rights to NASCAR Camping World Truck races
represent an agreed-upon percentage of the Company’s advertising revenues attributable to such race broadcasts. NASCAR
also reimburses the Company for 50.0 percent of the compensation paid to certain personnel working in the Company’s legal,
risk management and transportation departments, as well as 50.0 percent of the compensation expense associated with certain
receptionists. The Company reimburses NASCAR for 50.0 percent of the compensation paid to certain personnel working in
NASCAR’s legal department. NASCAR’s reimbursement for use of the Company’s mailroom, janitorial services, security
services, catering, graphic arts, photo and publishing services, telephone system and the Company’s reimbursement of
NASCAR for use of corporate aircraft is based on actual usage or an allocation of total actual usage. The aggregate amount
received and receivable from NASCAR for shared expenses, net of amounts paid by the Company for shared expenses, totaled
approximately $10.5 million, $10.2 million and $10.2 million during fiscal 2014, 2015 and 2016, respectively. We believe the
amounts earned from or charged by us under each of the aforementioned transactions are commercially reasonable.

IMSA, a wholly owned subsidiary of NASCAR, sanctions various events at certain of the Company’s facilities. Standard IMSA
sanction agreements require racetrack operators to pay event management fees, which include prize and point fund monies for
each sanctioned event conducted. The prize and point fund monies are distributed by IMSA to participants in the events. Event
management fees paid by the Company to IMSA totaled approximately $1.3 million, $1.3 million and $1.3 million for the years
ended November 30, 2014, 2015 and 2016, respectively.

AMA Pro Racing, an entity controlled by a member of the France Family Group, sanctions various events at certain of the
Company’s facilities. Standard AMA Pro Racing sanction agreements require racetrack operators to pay event management
fees, which include prize and point fund monies for each sanctioned event conducted. The prize and point fund monies are
distributed by AMA Pro Racing to participants in the events. Event management fees paid by the Company to AMA Pro Racing
totaled approximately $0.5 million, $0.1 million and $0.1 million during fiscal 2014, 2015 and 2016, respectively.
Furthermore, the Company and AMA Pro Racing share a variety of expenses in the ordinary course of business. The aggregate
amount received from AMA Pro Racing by the Company for shared expenses, net of amounts paid by the Company for shared
expenses, totaled approximately $0.2 million.

The Company strives to ensure, and management believes that, the terms of the Company’s transactions with NASCAR, IMSA
and AMA Pro Racing are commercially reasonable.

Other Related Party Transactions

Certain members of the France Family Group paid the Company for the utilization of security services, event planning, event
tickets, purchase of catering services, maintenance services, and certain equipment. The amounts paid for these items were
based on actual costs incurred, similar prices paid by unrelated third party purchasers of similar items or estimated fair market
values. The net amount received by the Company for these items, totaled approximately $320,000, $456,000 and $306,000
during fiscal 2014, 2015 and 2016, respectively.

Crotty, Bartlett & Kelly, P.A. (“Crotty, Bartlett & Kelly”), is a law firm controlled by family members of W. Garrett Crotty, one
of the Company’s executive officers. The Company engages Crotty, Bartlett & Kelly for certain legal and consulting services.
The aggregate amount paid to Crotty, Bartlett & Kelly by the Company for legal and consulting services totaled approximately
$31,000, $39,000 and $36,000 during fiscal 2014, 2015 and 2016, respectively.

J. Hyatt Brown, one of the Company’s directors, serves as Chairman of Brown & Brown, Inc. (“Brown & Brown”). Brown &
Brown has received commissions for serving as the Company’s insurance broker for several of the Company’s insurance
policies, including the Company’s property and casualty policy and certain employee benefit programs. The aggregate
commissions received by Brown & Brown in connection with the Company’s policies were approximately $492,000, $517,000

ISC // 2016 ANNUAL REPORT // FORM 10-K // 65

and $555,000 during fiscal 2014, 2015 and 2016, respectively. In fiscal 2014 , Brown & Brown paid the Company
approximately $100,000 for the purchase of tickets. There were no comparable transactions in fiscal 2015 or 2016.

One of the Company’s directors, Christy F. Harris, is Of Counsel to Kinsey, Vincent Pyle, L.C., a law firm that provided legal
services to the Company during fiscal 2014, 2015 and 2016. The Company paid approximately $78,000, $35,000 and $97,000
for these services in fiscal 2014, 2015 and 2016, respectively.

We believe the amounts earned from or charged by us under each of the aforementioned transactions are commercially
reasonable.

NOTE 12 — SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Cash paid for income taxes and interest for the years ended November 30, is summarized as follows (in thousands):

Income taxes paid

Interest paid

2014

2015

2016

51,314 $

44,989 $

24,392

14,429 $

14,504 $

14,199

NOTE 13 — LONG-TERM STOCK INCENTIVE PLAN

On November 30, 2016, the Company has two share-based compensation plans, which are described below. Compensation cost
included in operating expenses in the accompanying consolidated statements of operations for those plans was $2.8 million,
$2.9 million, and $3.7 million for the years ended November 30, 2014, 2015 and 2016, respectively. The total income tax
benefit recognized in the consolidated statements of operations for share-based compensation arrangements was approximately
$1.2 million, $1.2 million and $1.5 million for the years ended November 30, 2014, 2015 and 2016, respectively.

The Company’s 1996 Long-Term Stock Incentive Plan (the “1996 Plan”) authorized the grant of stock options (incentive and
nonqualified), stock appreciation rights and restricted stock. The Company reserved an aggregate of 1,000,000 shares (subject
to adjustment for stock splits and similar capital changes) of the Company’s Class A Common Stock for grants under the 1996
Plan. The 1996 Plan terminated in September 2006. All unvested stock options and restricted stock granted prior to the
termination will continue to vest and will continue to be exercisable in accordance with their original terms.

In April, 2006, the Company’s shareholders’ approved the 2006 Long-Term Incentive Plan (the “2006 Plan”) which authorizes
the grant of stock options (incentive and non-qualified), stock appreciation rights, restricted and unrestricted stock, cash awards
and Performance Units (as defined in the 2006 Plan) to employees, consultants and advisers of the Company capable of
contributing to the Company’s performance. The Company has reserved an aggregate of 1,000,000 shares (subject to
adjustment for stock splits and similar capital changes) of the Company’s Class A Common Stock for grants under the 2006
Plan. Incentive Stock Options may be granted only to employees eligible to receive them under the Internal Revenue Code of
1996, as amended. The 2006 Plan approved by the shareholders appoints the Compensation Committee (the “Committee”) to
administer the 2006 Plan. Awards under the 2006 Plan will contain such terms and conditions not inconsistent with the 2006
Plan as the Committee in its discretion approves. The Committee has discretion to administer the 2006 Plan in the manner
which it determines, from time to time, is in the best interest of the Company.

Restricted Stock Awards

Restricted stock awarded under the 1996 Plan and 2006 Plan (collectively the “Plans”) generally is subject to forfeiture in the
event of termination of employment prior to vesting dates. Prior to vesting, the Plans participants own the shares and may vote
and receive dividends, but are subject to certain restrictions. Restrictions include the prohibition of the sale or transfer of the
shares during the period prior to vesting of the shares. The Company also has the right of first refusal to purchase any shares of
stock issued under the Plans which are offered for sale subsequent to vesting. In accordance with ASC 718, “Compensation -
Stock Compensation” the Company is recognizing stock-based compensation on these restricted shares awarded on the
accelerated method over the requisite service period. The fair value of nonvested restricted stock is determined based on the
opening trading price of the Company’s Class A Common Stock on the grant date.

The Company granted 91,076, 89,343 and 92,583 shares of restricted stock awards of the Company’s Class A Common Stock
during the fiscal years ended November 30, 2014, 2015 and 2016, respectively, to certain officers, managers, and other
employees under the Plans. The shares of restricted stock awarded vest at the rate of 50.0 percent on the third anniversary of the
award date and the remaining 50.0 percent on the fifth anniversary of the award date. The weighted average grant date fair
value of these restricted stock awards was $31.44, $36.36 and $33.49 per share, respectively.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 66

The Company granted 8,118, 8,190 and 8,073 shares of restricted stock awards of the Company’s Class A Common Stock
during the fiscal years ended November 30, 2014, 2015 and 2016, respectively, to non-employee directors as partial
compensation for their service as a director. The shares of restricted stock awarded vest at the rate of 100.0 percent on the one
year anniversary after the date of grant. The weighted average grant date fair value of these restricted share awards was $33.28,
$36.67 and $33.45 per share, respectively.

A summary of the status of the Company’s restricted stock as of November 30, 2016, and changes during the fiscal year ended
November 30, 2016, is presented as follows:

Unvested at November 30, 2015

Granted
Vested
Forfeited

Unvested at November 30, 2016

Weighted-
Average
Grant-
Date
Fair Value
(Per Share)

Weighted-
Average
Remaining
Contractual
Term
(Years)

32.03
33.49
32.55
26.69
32.32

3.5

Restricted
Shares

359,793 $
100,656
(69,574 )
(882 )
389,993

As of November 30, 2016, there was approximately $5.4 million of total unrecognized compensation cost related to unvested
restricted stock awards granted under the Stock Plans. This cost is expected to be recognized over a weighted-average period of
approximately 3.5 years. The total fair value of restricted stock awards vested during the fiscal years ended November 30,
2014, 2015 and 2016, was approximately $1.5 million, $3.7 million and $2.3 million, respectively.

Nonqualified and Incentive Stock Options

In fiscal 2010 a portion of each non-employee director’s compensation for their service as a director is through awards of
options to acquire shares of the Company’s Class A Common Stock under the Plans. These options become exercisable one
year after the date of grant and expire on the tenth anniversary of the date of grant. The Company also grants options to certain
non-officer managers to purchase the Company’s Class A Common Stock under the Plans. These options generally vest over a
two and one-half year period and expire on the tenth anniversary of the date of grant. The Company records stock-based
compensation cost on its stock options awarded on the straight-line method over the requisite service period.

The fair value of each option granted is estimated on the grant date using the Black-Scholes-Merton option-pricing valuation
model that uses the assumptions noted in the following table. Expected volatilities are based on implied volatilities from
historical volatility of the Company’s stock and other factors. The Company uses historical data to estimate option exercises
and employee terminations within the valuation model. Separate groups of employees that have similar historical exercise
behavior are considered separately for valuation purposes. The expected term of options granted is estimated based on
historical exercise behavior and represents the period of time that options granted are expected to be outstanding. The risk-free
rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 67

A summary of option activity under the Stock Plan as of November 30, 2016, and changes during the year then ended is
presented as follows:

Options

Outstanding at November 30, 2015

Expired

Exercised

Forfeited

Outstanding at November 30, 2016

148,951 $
(23,751 )

(5,321 )
—
119,879

Weighted-
Average
Exercise
Price

Weighted-
Average
Remaining
Contractual
Term
(Years)

Aggregate
Intrinsic
Value

38.31
46.59
25.65
—

37.23

1.9 $

598,489

Vested and Exercisable at November 30, 2016

119,879 $

37.23

1.9 $

598,489

There were no options granted in fiscal years 2014, 2015 and 2016. There were no options exercised during fiscal years 2014,
2015 and there were 5,321 options exercised during fiscal year 2016. The total intrinsic value of options exercised during the
fiscal year ended November 30, 2016, was approximately $0.6 million. The actual tax benefit realized for the tax deductions
from exercise of the stock options totaled approximately $20,251 for the fiscal year ended November 30, 2016.

As of November 30, 2016, there was no unrecognized compensation cost related to unvested stock options granted under the
Stock Plan.

NOTE 14 — FINANCIAL INSTRUMENTS

etc.)

• Level 3 — significant unobservable inputs (including the Company’s own assumptions in determining the fair value of

investments)

At November 30, 2016, the Company had money market funds totaling approximately $68.4 million and are included in cash
and cash equivalents in the consolidated balance sheets. All inputs used to determine fair value are considered level 1 inputs.

Fair values of long-term debt are based on quoted market prices at the date of measurement. The Company’s credit facilities
approximate fair value as they bear interest rates that approximate market. These inputs used to determine fair value are
considered level 2 inputs. At November 30, 2016, the fair value of the long-term debt, as determined by quotes from financial
institutions, was approximately $278.2 million compared to the carrying amount of approximately $265.0 million.

The Company had no level 3 inputs as of November 30, 2016.

NOTE 15 — QUARTERLY DATA (UNAUDITED)

The Company derives most of its income from a limited number of NASCAR-sanctioned races. As a result, the Company’s
business has been, and is expected to remain, highly seasonal based on the timing of major events.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 68

The following table presents certain unaudited financial data for each quarter of fiscal 2015 and 2016 (in thousands, except per
share amounts):

Total revenue
Operating income (loss)
Net income (loss)
Basic and diluted earnings (loss) per share

Total revenue
Operating income
Net income
Basic and diluted earnings per share

NOTE 16 — SEGMENT REPORTING

Fiscal Quarter Ended

February 28,
2015

May 31,
2015

August 31,
2015

November 30,
2015

136,552 $
21,591
14,953
0.32

164,010 $
19,217
13,355
0.29

125,490 $
(7,138 )
(3,956 )
(0.08 )

219,318
51,907
32,282
0.69

Fiscal Quarter Ended

February 29,
2016

May 31,
2016

August 31,
2016

November 30,
2016

142,630 $
31,166
19,831
0.43

167,561 $
23,679
21,898
0.47

128,986 $
3,737
2,173
0.05

221,839
51,245
32,436
0.72

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 Company’s remaining business units,
which are comprised of the radio network production and syndication of numerous racing events and programs, certain
souvenir merchandising operations not associated with the promotion of motorsports events at the Company’s facilities,
construction management services, leasing operations, and financing and licensing 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. Intersegment revenues were approximately
$2.0 million, $2.1 million and $2.2 million for the years ended November 30, 2014, 2015 and 2016, respectively. The following
table shows information by operating segment (in thousands):

Revenues
Depreciation and amortization
Operating income (loss)
Equity investments income
Capital expenditures
Total assets
Equity investments

Motorsports
Event

For the Year Ended November 30, 2014
All
Other

Total

609,973 $
84,614
99,332
—
177,318
1,621,726
—

43,981 $
5,738
(5,941 )
8,916
6,618
455,925
122,565

653,954
90,352
93,391
8,916
183,936
2,077,651
122,565

ISC // 2016 ANNUAL REPORT // FORM 10-K // 69

Revenues
Depreciation and amortization
Operating income (loss)
Equity investments income
Capital expenditures
Total assets
Equity investments

Schedule II — Valuation and Qualifying Accounts (in thousands)

Description

For the year ended November 30, 2014 Allowance for doubtful
accounts
For the year ended November 30, 2015 Allowance for doubtful
accounts

For the year ended November 30, 2016 Allowance for doubtful
accounts

(A)

Uncollectible accounts written off, net of recoveries.

Motorsports
Event

For the Year Ended November 30, 2015
All
Other

Total

607,483 $
89,823
89,395
—
144,641
1,682,700
—

39,986 $
4,904
(3,818 )
14,060
10,375
439,499
103,249

647,469
94,727
85,577
14,060
155,016
2,122,199
103,249

Motorsports
Event

For the Year Ended November 30, 2016
All
Other

Total

630,213 $
97,816
107,690
—
100,644
1,651,845
—

32,953 $
4,340
2,137
14,913
40,149
520,815
92,392

663,166
102,156
109,827
14,913
140,793
2,172,660
92,392

Balance
beginning
of period

Additions
charged
to
costs and
expenses

Deductions
(A)

Balance
at end
of
period

1,000

101

1,000

260

1,000

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE

None.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 70

ITEM 9A. CONTROLS AND PROCEDURES

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

We conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as such
term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act),
under the supervision of and with the participation of our management, including the Chief Executive Officer and Chief
Financial Officer. Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial
Officer, concluded that our disclosure controls and procedures, subject to limitations as noted below, were effective at
November 30, 2016, and during the period prior to and including the date of this report.

Report of Management on Internal Control Over Financial Reporting

January 27, 2017

We, as members of management of International Speedway Corporation, are responsible for establishing and maintaining
adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f). Internal control
over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting
principles. Internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with U.S. generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance
with authorizations of our management and directors; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial
statements.

Because of its inherent limitations, our disclosure controls and procedures may not prevent or detect misstatements. A control
system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of
the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide
absolute assurance that all control issues and instances of fraud, if any, have been detected. Also, projections of any evaluation
of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies and procedures may deteriorate.

We, under the supervision of and with the participation of our management, including the Chief Executive Officer and Chief
Financial Officer, assessed the Company’s internal control over financial reporting as of November 30, 2016, based on criteria
for effective internal control over financial reporting described in “Internal Control-Integrated Framework” issued by the
Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based on this assessment, we
concluded that we maintained effective internal control over financial reporting as of November 30, 2016, based on the
specified criteria. There were no changes in our internal control over financial reporting during the quarter ended November 30,
2016, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

The effectiveness of our internal control over financial reporting has been audited by Ernst & Young LLP, an independent
registered public accounting firm, as stated in their report which is included herein.

ITEM 9B. OTHER INFORMATION

None

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this Item is set forth under the headings “Directors, Nominees, and Officers ” and under the subheading
“Section 16(a) Beneficial Ownership Reporting Compliance” in the Company’s 2017 Proxy Statement to be filed with the U.S.
Securities and Exchange Commission (“SEC”) within 120 days after November 30, 2016 in connection with the solicitation of
proxies for the Company’s 2017 annual meeting of shareholders and is incorporated herein by reference.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 71

ITEM 11. EXECUTIVE COMPENSATION

The information required by this Item is set forth under the heading “Executive Compensation” and under the heading
“Directors, Nominees and Officers” in the Company’s 2017 Proxy Statement to be filed with the SEC within 120 days after
November 30, 2016 and is incorporated herein by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS

The information required by this Item is set forth under the headings “Voting Securities and Principal Holders” and under the
heading “Directors, Nominees and Officers” in the Company’s 2017 Proxy Statement to be filed with the SEC within 120 days after
November 30, 2016 and is incorporated herein by reference.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

The information required by this Item is set forth under the heading under the subheading "Compensation Committee Interlocks and
Insider Participation" under the heading "Executive Compensation" and under the subheadings "Directors Holding Office Until 2015
Annual Meeting", "Board Leadership" and “Certain Relationships and Related Transactions” under the heading “Directors,
Nominees and Officers” in the Company’s 2017 Proxy Statement to be filed with the SEC within 120 days after November 30, 2016
and is incorporated herein by reference.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

The information required by this Item is set forth under the heading "Registered Independent Public Accounting Firm" and
subheading “Policy on Audit Committee Pre-Approval Policies and Procedures” under the heading “Registered Independent Public
Accounting Firm” in the Company’s 2017 Proxy Statement to be filed with the SEC within 120 days after November 30, 2016 and is
incorporated herein by reference.

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

PART IV

(a) Documents filed as a part of this report

1. Consolidated Financial Statements listed below:

International Speedway Corporation

Consolidated Balance Sheets

— November 30, 2015 and 2016

Consolidated Statements of Operations

— Years ended November 30, 2014, 2015, and 2016

Consolidated Statements of Comprehensive Income

— Years ended November 30, 2014, 2015, and 2016

Consolidated Statements of Changes in Shareholders’ Equity

— Years ended November 30, 2014, 2015, and 2016

Consolidated Statements of Cash Flows

— Years ended November 30, 2014, 2015, and 2016

Notes to Consolidated Financial Statements

2. Consolidated Financial Statement Schedules listed below:

II — Valuation and qualifying accounts

All other schedules are omitted since the required information is not present or is not present in amounts sufficient to require
submission of the schedule, or because the information required is included in the financial statements and notes thereto.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 72

3. Exhibits:

Exhibit
Number

3.1

3.2

3.3

4.1

4.2

4.3

4.4

4.5

10.1

10.2

10.3

10.4

10.5.1

10.5.2

23.1

31.1

31.2

101.INS

101.SCH

101.CAL

101.DEF

101.LAB

101.PRE

***

****

*****

******

*******

********

—

—
—

—

—
—
—
—
—
—

—

—
—
—
—
—
—
—
—
—
—
—

Description of Exhibit

Articles of Amendment of the Restated and Amended Articles of Incorporation of the Company,
as filed with the Florida Department of State on July 26, 1999. (3.1)*

Conformed Copy of Amended and Restated Articles of Incorporation of the Company, as
amended as of July 26, 1999. (3.2)*

Conformed Copy of Amended and Restated By-Laws of the Company. (3)(ii)**

Note Purchase Agreement, dated as of September 13, 2012, among the Company and purchasers
party thereto. (4.2)***

Form of Series 2012A Note due 2024 (included in Exhibit 4.1). (4.2)***

Amended and Restated Revolving Credit Agreement, dated as of November 15, 2012, among the
Company, certain subsidiaries and the lenders party thereto. (10.1)****

Note Purchase Agreement, dated as of January 18, 2011, among the Company and purchasers
party thereto. (10.1)*****

Form of Series 2011A Note due 2021 (included in Exhibit 10.1). (10.1)*****

Daytona Property Lease. (10.4)******

1996 Long-Term Incentive Plan. (10.6)******

2006 Long-Term Incentive Plan. (4)*******

Design-Build Agreement. (10.1) ********

Design-Build Agreement, by and between Phoenix Speedway, LLC and Okland Construction
Company, Inc. (Part 1), dated as of November 30, 2016 — filed herewith.

Design-Build Agreement, by and between Phoenix Speedway, LLC and Okland Construction
Company, Inc. (Part 2), dated as of November 30, 2016 — filed herewith.

Subsidiaries of the Registrant — filed herewith.

Consent of Ernst &Young LLP — filed herewith.

Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer — filed herewith

Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer — filed herewith.

Section 1350 Certification — filed herewith.

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Incorporated by reference to the exhibit shown in parentheses and filed with the Company’s Report on Form 8-K
dated July 26, 1999.
Incorporated by reference to the exhibit shown in parentheses and filed with the Company’s report on Form 10-
Q for the quarter ended February 28, 2003.
Incorporated by reference to the exhibit shown in parentheses and filed with the Company’s report on Form 8-K
filed on September 18, 2012.
Incorporated by reference to the exhibit shown in parentheses and filed with the Company’s report on Form 8-K
filed on November 19, 2012.
Incorporated by reference to the exhibit shown in parentheses and filed with the Company’s report on Form 8-K
filed on January 20, 2011.
Incorporated by reference to the exhibit shown in parentheses and filed with the Company’s Report on Form 10-
K for the year ended November 30, 1998.
Incorporated by reference to the exhibit shown in parentheses and filed with the Company’s Registration
Statement on Form S-8 as filed on February 11, 2010.
Incorporated by reference to the exhibit shown in parentheses and filed with the Company's Amended Form 10-
Q for the quarter ended May 31, 2013.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 73

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused

this report to be signed on its behalf by the undersigned, thereunto duly authorized.

International Speedway Corporation

By:

/s/ Gregory S. Motto

Gregory S. Motto
Chief Financial Officer

Dated: January 27, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following

persons on behalf of the registrant and in the capacities and on the dates indicated.

ISC // 2016 ANNUAL REPORT // FORM 10-K // 74

Signature

Title

Date

/s/ Lesa France Kennedy

Lesa France Kennedy

Chief Executive Officer and Vice Chairman of the
Board (Principal Executive Officer)

January 26, 2017

/s/ Gregory S. Motto

Gregory S. Motto

/s/ James C. France

James C. France

/s/ Brian Z. France

Brian Z. France

/s/ Larry Aiello, Jr.

Larry Aiello, Jr.

/s/ J. Hyatt Brown

J. Hyatt Brown

/s/ William P. Graves

William P. Graves

/s/ Christy F. Harris

Christy F. Harris

/s/ Morteza Hosseini – Kargar

Morteza Hosseini – Kargar

/s/ Sonia M. Green
Sonia M. Green

/s/ Larree M. Renda

Larree M. Renda

/s/ Larry Woodard
Larry Woodard

Vice President, Chief Financial Officer and
Treasurer

January 26, 2017

Chairman of the Board

January 26, 2017

Director

January 26, 2017

ISC // 2016 ANNUAL REPORT // FORM 10-K // 75

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INFORMATION
STATEMENT

2017

This page was intentionally left blank.

3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount

on which the filing fee is calculated and state how it was determined):

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Information Statement Pursuant to Section 14(c) of the Securities Exchange Act of 1934

Washington, D.C. 20549

SCHEDULE 14C INFORMATION

(Amendment No. )

Filed by the Registrant

þ

Filed by a Party other than the Registrant ¨

Check the appropriate box:

þ Definitive Information Statement

¨ Preliminary Information Statement ¨ Confidential, for Use of Commission Only (as permitted by Rule 14c-5(d)(2))

INTERNATIONAL SPEEDWAY CORPORATION

(Name of Registrant as Specified in Its Charter)

Payment of Filing Fee (Check the appropriate box):

þ No fee required

¨ Fee computed on table below per Exchange Act Rules 14c-5(g) and 0-11.

1) Title of each class of securities to which transaction applies:

2) Aggregate number of securities to which transaction applies:

¨ Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which

the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or

4) Proposed maximum aggregate value of transaction:

5) Total fee paid:

¨ Fee paid previously with preliminary materials.

Schedule and the date of its filing.

1) Amount Previously Paid:

2) Form, Schedule or Registration Statement No.:

3) Filing Party:

4) Date Filed:

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14C INFORMATION
Information Statement Pursuant to Section 14(c) of the Securities Exchange Act of 1934
(Amendment No. )

þ
Filed by the Registrant
Filed by a Party other than the Registrant ¨
Check the appropriate box:
¨ Preliminary Information Statement ¨ Confidential, for Use of Commission Only (as permitted by Rule 14c-5(d)(2))
þ Definitive Information Statement

INTERNATIONAL SPEEDWAY CORPORATION
(Name of Registrant as Specified in Its Charter)

Payment of Filing Fee (Check the appropriate box):

þ No fee required

¨ Fee computed on table below per Exchange Act Rules 14c-5(g) and 0-11.

1) Title of each class of securities to which transaction applies:

2) Aggregate number of securities to which transaction applies:

3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount
on which the filing fee is calculated and state how it was determined):

4) Proposed maximum aggregate value of transaction:

5) Total fee paid:

¨ Fee paid previously with preliminary materials.

¨ Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which
the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or
Schedule and the date of its filing.

1) Amount Previously Paid:

2) Form, Schedule or Registration Statement No.:

3) Filing Party:

4) Date Filed:

INTERNATIONAL SPEEDWAY CORPORATION
One Daytona Boulevard
Daytona Beach, Florida 32114

NOTICE OF 2017 ANNUAL MEETING OF SHAREHOLDERS

To the Shareholders of International Speedway Corporation:

The Annual Meeting of the Shareholders of International Speedway Corporation will be held at
THE COBB THEATRE AT ONE DAYTONA, 1850 Legends Lane, Suite E100, Daytona Beach, FL 32115 on Wednesday,
the 12th day of April 2017, commencing at 9:00 A.M. (local time), for the following purposes:

(a)

(b)

(c)

To elect three (3) Directors of the Corporation.

To approve or reject the International Speedway Corporation 2017 Long Term Incentive Plan.

To transact such other business as may properly come before the meeting.

ALL Shareholders of record as of January 31, 2017, will be entitled to vote, either in person or by proxy. Due to logistical
considerations, please be present by 8:45 A.M. Shareholder registration tables will open at 8:00 A.M.

By Order of the Board of Directors

March 7, 2017

W. Garrett Crotty

Senior Vice President, Secretary and General
Counsel

This Notice of 2017 Annual Meeting and the attached Information Statement dated March 7, 2017 should be read in
combination with the Company’s annual report on Form 10-K for the fiscal year ended November 30, 2016 and the Annual
Report. Collectively these documents contain all of the information and disclosures required in connection with the 2017
Annual Meeting of Shareholders. Copies of all of these materials can be found in the Financial Information/SEC Filings
section of the Investor Relations page on our website at www.internationalspeedwaycorporation.com.

INTERNATIONAL SPEEDWAY CORPORATION

One Daytona Boulevard

Daytona Beach, Florida 32114

_______________________________________________

INFORMATION STATEMENT

Pursuant to Section 14(c)

of the Securities Exchange Act of 1934

and Regulation 14C and Schedule 14C thereunder

_______________________________________________

WE ARE NOT ASKING YOU FOR A PROXY AND YOU ARE

REQUESTED NOT TO SEND US A PROXY

This Information Statement has been filed with the Securities and Exchange Commission (the “SEC”) and is first being mailed

on or about March 10, 2017 to holders of record on January 31, 2017 (the “Record Date”) of shares of all classes of the

common stock of International Speedway Corporation, a Florida corporation (the “Company”). This Information Statement

relates to an Annual Meeting of Shareholders and the only matters to be acted upon at the meeting are (i) the election of

directors and (ii) to approve or reject the adoption of the “International Speedway Corporation 2017 Long Term Incentive Plan”

(the “2017 Long Term Incentive Plan”).

You are being provided with this Information Statement pursuant to Section 14(c) of the Securities Exchange Act of 1934, as

amended (the “Exchange Act”), and Regulation 14C and Schedule 14C thereunder.

INTERNATIONAL SPEEDWAY CORPORATION
One Daytona Boulevard
Daytona Beach, Florida 32114
_______________________________________________

INFORMATION STATEMENT

Pursuant to Section 14(c)
of the Securities Exchange Act of 1934
and Regulation 14C and Schedule 14C thereunder
_______________________________________________

WE ARE NOT ASKING YOU FOR A PROXY AND YOU ARE
REQUESTED NOT TO SEND US A PROXY

This Information Statement has been filed with the Securities and Exchange Commission (the “SEC”) and is first being mailed
on or about March 10, 2017 to holders of record on January 31, 2017 (the “Record Date”) of shares of all classes of the
common stock of International Speedway Corporation, a Florida corporation (the “Company”). This Information Statement
relates to an Annual Meeting of Shareholders and the only matters to be acted upon at the meeting are (i) the election of
directors and (ii) to approve or reject the adoption of the “International Speedway Corporation 2017 Long Term Incentive Plan”
(the “2017 Long Term Incentive Plan”).

You are being provided with this Information Statement pursuant to Section 14(c) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), and Regulation 14C and Schedule 14C thereunder.

This page was intentionally left blank.

Contents

DATE, TIME AND PLACE INFORMATION
VOTING SECURITIES AND PRINCIPAL HOLDERS
DIRECTORS, NOMINEES AND OFFICERS
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
DIRECTOR MEETINGS AND COMMITTEES
BOARD LEADERSHIP
RISK OVERSIGHT
DIRECTOR NOMINATION PROCESS
SHAREHOLDER COMMUNICATIONS TO THE BOARD
CODE OF ETHICS
SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
REGISTERED INDEPENDENT PUBLIC ACCOUNTING FIRM
AUDIT COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES
ACTION: APPROVAL OF THE 2017 LONG TERM INCENTIVE PLAN
REPORT OF THE AUDIT COMMITTEE
EXECUTIVE COMPENSATION

COMPENSATION DISCUSSION AND ANALYSIS

Overview and Objectives of Compensation Program

Base Salary, Non-Equity Incentives and Cash Bonuses
Long —Term Compensation - 2006 Long Term Incentive Plan
Other Compensation

Compensation Implementation

Determination of Compensation
Roles of Compensation Committee and Named Executives
Compensation Consultants
Equity Grant Practice
Share Ownership Guidelines
Tax Deductibility of Compensation
Potential Impact on Compensation from Executive Misconduct

Compensation for the Named Executive Officers in 2015

Company Performance
CEO Compensation
Other Named Officers

SUMMARY COMPENSATION TABLE
GRANTS OF PLAN-BASED AWARDS
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR -END
OPTION EXERCISES AND STOCK VESTED
POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE -IN-CONTROL
COMPENSATION OF DIRECTORS
DIRECTOR COMPENSATION TABLE
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
COMPENSATION COMMITTEE REPORT
PERFORMANCE GRAPH
VOTING PROCEDURE

DISSENTERS’ RIGHT OF APPRAISAL

AVAILABLE INFORMATION

1
1
4
7
9
10
10
11
12
12
12
12
13
13
14
15
15
15
16
16
16
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20
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26
27
27
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29
29

DATE, TIME AND PLACE INFORMATION

Our Annual Meeting of Shareholders will be held on Wednesday, April 12, 2017 commencing at 9:00 A.M. (local time) at THE
COBB THEATRE AT ONE DAYTONA, 1850 Legends Lane, Suite E100, Daytona Beach, Florida, 32115. Shareholder
registration tables will open at 8:00 A.M. The mailing address of our principal executive offices is One Daytona Boulevard,
Daytona Beach, Florida 32114.

VOTING SECURITIES AND PRINCIPAL HOLDERS

class A common stock.

This Information Statement is being mailed commencing on or about March 10, 2017 to all of our shareholders of record as of
the Record Date. The Record Date for the Annual Meeting is January 31, 2017. As of the Record Date, we had
25,319,853 shares of class A common stock and 19,759,469 shares of class B common stock issued and outstanding. Each
share of the class A common stock is entitled to one-fifth of one vote on matters submitted to shareholder approval or a vote of
shareholders. Each share of the class B common stock is entitled to one vote on matters submitted to shareholder approval or a
vote of shareholders.

Name of Beneficial Owner (1)
France Family Group (8)
James C. France (9)
Ariel Investments, LLC (10)
Blackrock, Inc. (11)
Vanguard Group (12)
Paradice Investment Mngmnt LLC (13)
Lesa France Kennedy (14)

Brian Z. France (15)
John R. Saunders
J. Hyatt Brown (16)

Daniel W. Houser
Daryl Q. Wolfe
Morteza Hosseini-Kargar (17)

Christy F. Harris (18)
Joel S. Chitwood
William P. Graves
Larry Aiello, Jr.
Larree M. Renda
Sonia M. Green
Larry D. Woodard
All directors and executive officers as a
group (21 persons)(19)

Number of Shares of Common
Stock Beneficially Owned (2)

Percentage of
Common Stock Beneficially Owned

Percentage of
Combined
Voting Power of
Common Stock

Class A (3)
18,385,752
6,209,685
3,483,402
2,521,031
2,199,566
1,662,608
1,239,749
804,182
63,047
56,179
28,390
25,949
23,713
20,321
15,902
13,779
11,914
8,816
3,572
3,572

Class B (4)
18,181,167
6,107,111
0
0
0
0
1,156,896
785,064
11,286
9,000
0
90
0
150
0
0
0
0
0
0

Class A (5)

Class B (6)

42.26 %
20.10 %
13.76 %
9.96 %
8.69 %
6.57 %
4.68 %
3.08 %
0.25 %
0.22 %
0.11 %
0.10 %
0.09 %
0.08 %
0.06 %
0.05 %
0.05 %
0.03 %
0.01 %
0.01 %

92.00 %
30.90 %
0.00 %
0.00 %
0.00 %
0.00 %
5.85 %
3.97 %
0.06 %
0.04 %
0.00 %
0.00 %
0.00 %
0.00 %
0.00 %
0.00 %
0.00 %
0.00 %
0.00 %
0.00 %

(7)
73.41 %
24.68 %
2.81 %
2.03 %
1.77 %
1.34 %
4.73 %
3.18 %
0.09 %
0.07 %
0.02 %
0.02 %
0.02 %
0.02 %
0.01 %
0.01 %
0.01 %
0.01 %
0.00 %
0.00 %

18,743,227

18,204,477

43.06 %

92.13 %

73.77 %

The preceding table sets forth information regarding the beneficial ownership of our class A common stock and our class B
common stock as of the Record Date by:

• All persons known to us who beneficially own 5 percent or more of either class of our common stock;

• Each “named executive officer” in the Summary Compensation Table in this Information Statement;

• Each of our directors and director nominees; and

• All of our directors, director nominees and officers as a group.

As described in the following notes to the table, voting and/or investment power with respect to certain shares of common stock
is shared by the named individuals. Consequently, such shares may be shown as beneficially owned by more than one person.

ISC // 2017 INFORMATION STATEMENT // 1

(1) Unless otherwise indicated the address of each of the beneficial owners identified is c/o International Speedway

Corporation, One Daytona Boulevard, Daytona Beach, Florida 32114.

(2) Unless otherwise indicated, each person has sole voting and investment power with respect to all such shares.

(3) Reflects the aggregate number of shares held by the named beneficial owner assuming (i) the exercise of any options to

acquire shares of class A common stock that are held by such beneficial owner that are exercisable within 60 days of the

Record Date and (ii) the conversion of all shares of class B common stock held by such beneficial owner into shares of

(4) Assumes no conversion of shares of class B common stock into shares of class A common stock.

(5) Assumes (i) the exercise of any options to acquire shares of class A common stock that are held by the named beneficial

owner that are exercisable within 60 days of the Record Date, (ii) the conversion of all shares of class B common stock

held by such beneficial owner into shares of class A common stock, and (iii) the assumption that no other named

beneficial owner has exercised any such options or converted any such shares.

(6) Reflects current ownership percentage of named beneficial owner’s shares of class B common stock without any

conversion of shares of class B common stock into shares of class A common stock.

(7) Assumes no exercise of options or conversion of shares of class B common stock into shares of class A common stock.

(8)

The France Family Group consists of James C. France, Lesa France Kennedy, Brian Z. France and members of their

families and entities controlled by the natural person members of the group. A complete list of all the members of the

France Family Group can be found in its 23rd amendment to Schedule 13G which was filed with the SEC on February

14, 2017. Amounts shown reflect the non-duplicative aggregate of 204,585 Class A and 8,049,071 Class B shares

indicated in the table as beneficially owned by James C. France, Lesa France Kennedy, and Brian Z. France. The

amounts shown also reflect the non-duplicative aggregate of 5,352,122 Class B Shares held by a series of BJF

Descendants Trusts as listed in the Schedule 13G noted above. The amounts shown also reflect the non-duplicative

aggregate of 4,779,974 Class B Shares held by the adult children of James C. France and their descendants and the adult

child of Lesa France Kennedy. See footnotes (9), (14) and (15).

(9)

Includes (i) 1,500 Class B shares held of record by Sharon M. France, his spouse, (ii) 3,192,680 Class B shares held of

record by Western Opportunity Limited Partnership (“Western Opportunity”), (iii) 29,238 Class B shares held of record

by Carl Investment Limited Partnership (“Carl”), (iv) all of the 78,243 Class B shares held of record by Quaternary

Investment Company, (v) 1,301 Class B shares held of record by Carl Two Limited Partnership (“Carl Two”), (vi) all of

the 1,749,848 Class B shares held of record by Carl Three Limited Partnership (“Carl Three”), (vii) all of the 919 Class

B shares held of record by Carl Two, LLC, (viii) 40,251 Class B shares held of record by Automotive Research Bureau

(“ARB”), (ix) all of the 547,166 Class B shares held of record by SM Holder Limited Partnership, and (x) 73,199 Class

B shares held of record by Principal Investment Company. James C. France is the sole shareholder and director of

(x) Principal Investment Company, one of the two general partners of Western Opportunity and (y) Quaternary

Investment Company, the general partner of Carl. He is also the sole member of Carl Two, LLC, the general partner of

Carl Two, and Carl Three, LLC the general partner of Carl Three. Does not include shares held beneficially by the adult

children of James C. France or their descendants.

(10) This owner’s address is 200 East Randolph Drive, Suite 2900, Chicago, Illinois 60601, as reflected on its Amendment

No. 7 to Schedule 13G, which was filed with the SEC on February 14, 2017.

(11) This owner’s address is 55 East 52nd Street, New York, NY 10022, as reflected on its Amendment No. 6 to Schedule

13G, which was filed with the SEC on January 25, 2017.

(12) This owner's address is 100 Vanguard Blvd., Malvern, Pennsylvania 19355, as reflected on its Amendment No. 3 to

Schedule 13G, which was filed with the SEC on February 10, 2017.

(13) This owner's address is 257 Fillmore Street, Suite 200, Denver, Colorado 80206, as reflected on its Schedule 13G, which

was filed with the SEC on February 6, 2017.

(14)

Includes (i) 361,988 Class B shares held of record by BBL Limited Partnership, (ii) 75,286 Class B shares held of record

by Western Opportunity, (iii) 39,992 Class B shares held of record by WCF Family I, Inc., (iv) 73,199 Class B shares

held of record by Sierra Central LLC, (v) 33,291 Class B shares held of record by WCF Family I, Inc. through Western

Opportunity, (vi) 400,537 Class B shares held of record by WCF Family Trust, and (vii) 7,745 shares held of record by

BBL Company. Ms. Kennedy is the sole shareholder and a director of BBL Company, the sole general partner of BBL

Our Annual Meeting of Shareholders will be held on Wednesday, April 12, 2017 commencing at 9:00 A.M. (local time) at THE

Corporation, One Daytona Boulevard, Daytona Beach, Florida 32114.

DATE, TIME AND PLACE INFORMATION

(1) Unless otherwise indicated the address of each of the beneficial owners identified is c/o International Speedway

COBB THEATRE AT ONE DAYTONA, 1850 Legends Lane, Suite E100, Daytona Beach, Florida, 32115. Shareholder

registration tables will open at 8:00 A.M. The mailing address of our principal executive offices is One Daytona Boulevard,

Daytona Beach, Florida 32114.

VOTING SECURITIES AND PRINCIPAL HOLDERS

This Information Statement is being mailed commencing on or about March 10, 2017 to all of our shareholders of record as of

the Record Date. The Record Date for the Annual Meeting is January 31, 2017. As of the Record Date, we had

25,319,853 shares of class A common stock and 19,759,469 shares of class B common stock issued and outstanding. Each

share of the class A common stock is entitled to one-fifth of one vote on matters submitted to shareholder approval or a vote of

shareholders. Each share of the class B common stock is entitled to one vote on matters submitted to shareholder approval or a

vote of shareholders.

(2) Unless otherwise indicated, each person has sole voting and investment power with respect to all such shares.
(3) Reflects the aggregate number of shares held by the named beneficial owner assuming (i) the exercise of any options to
acquire shares of class A common stock that are held by such beneficial owner that are exercisable within 60 days of the
Record Date and (ii) the conversion of all shares of class B common stock held by such beneficial owner into shares of
class A common stock.

(4) Assumes no conversion of shares of class B common stock into shares of class A common stock.
(5) Assumes (i) the exercise of any options to acquire shares of class A common stock that are held by the named beneficial
owner that are exercisable within 60 days of the Record Date, (ii) the conversion of all shares of class B common stock
held by such beneficial owner into shares of class A common stock, and (iii) the assumption that no other named
beneficial owner has exercised any such options or converted any such shares.

(6) Reflects current ownership percentage of named beneficial owner’s shares of class B common stock without any

conversion of shares of class B common stock into shares of class A common stock.

(9)

(7) Assumes no exercise of options or conversion of shares of class B common stock into shares of class A common stock.
(8)

The France Family Group consists of James C. France, Lesa France Kennedy, Brian Z. France and members of their
families and entities controlled by the natural person members of the group. A complete list of all the members of the
France Family Group can be found in its 23rd amendment to Schedule 13G which was filed with the SEC on February
14, 2017. Amounts shown reflect the non-duplicative aggregate of 204,585 Class A and 8,049,071 Class B shares
indicated in the table as beneficially owned by James C. France, Lesa France Kennedy, and Brian Z. France. The
amounts shown also reflect the non-duplicative aggregate of 5,352,122 Class B Shares held by a series of BJF
Descendants Trusts as listed in the Schedule 13G noted above. The amounts shown also reflect the non-duplicative
aggregate of 4,779,974 Class B Shares held by the adult children of James C. France and their descendants and the adult
child of Lesa France Kennedy. See footnotes (9), (14) and (15).
Includes (i) 1,500 Class B shares held of record by Sharon M. France, his spouse, (ii) 3,192,680 Class B shares held of
record by Western Opportunity Limited Partnership (“Western Opportunity”), (iii) 29,238 Class B shares held of record
by Carl Investment Limited Partnership (“Carl”), (iv) all of the 78,243 Class B shares held of record by Quaternary
Investment Company, (v) 1,301 Class B shares held of record by Carl Two Limited Partnership (“Carl Two”), (vi) all of
the 1,749,848 Class B shares held of record by Carl Three Limited Partnership (“Carl Three”), (vii) all of the 919 Class
B shares held of record by Carl Two, LLC, (viii) 40,251 Class B shares held of record by Automotive Research Bureau
(“ARB”), (ix) all of the 547,166 Class B shares held of record by SM Holder Limited Partnership, and (x) 73,199 Class
B shares held of record by Principal Investment Company. James C. France is the sole shareholder and director of
(x) Principal Investment Company, one of the two general partners of Western Opportunity and (y) Quaternary
Investment Company, the general partner of Carl. He is also the sole member of Carl Two, LLC, the general partner of
Carl Two, and Carl Three, LLC the general partner of Carl Three. Does not include shares held beneficially by the adult
children of James C. France or their descendants.

The preceding table sets forth information regarding the beneficial ownership of our class A common stock and our class B

(11) This owner’s address is 55 East 52nd Street, New York, NY 10022, as reflected on its Amendment No. 6 to Schedule

18,743,227

18,204,477

43.06 %

92.13 %

73.77 %

(10) This owner’s address is 200 East Randolph Drive, Suite 2900, Chicago, Illinois 60601, as reflected on its Amendment

No. 7 to Schedule 13G, which was filed with the SEC on February 14, 2017.

13G, which was filed with the SEC on January 25, 2017.

(12) This owner's address is 100 Vanguard Blvd., Malvern, Pennsylvania 19355, as reflected on its Amendment No. 3 to

Schedule 13G, which was filed with the SEC on February 10, 2017.

(13) This owner's address is 257 Fillmore Street, Suite 200, Denver, Colorado 80206, as reflected on its Schedule 13G, which

was filed with the SEC on February 6, 2017.

(14)

Includes (i) 361,988 Class B shares held of record by BBL Limited Partnership, (ii) 75,286 Class B shares held of record
by Western Opportunity, (iii) 39,992 Class B shares held of record by WCF Family I, Inc., (iv) 73,199 Class B shares
held of record by Sierra Central LLC, (v) 33,291 Class B shares held of record by WCF Family I, Inc. through Western
Opportunity, (vi) 400,537 Class B shares held of record by WCF Family Trust, and (vii) 7,745 shares held of record by
BBL Company. Ms. Kennedy is the sole shareholder and a director of BBL Company, the sole general partner of BBL

ISC // 2017 INFORMATION STATEMENT // 2

Number of Shares of Common

Percentage of

Stock Beneficially Owned (2)

Common Stock Beneficially Owned

Class A (3)

Class B (4)

Class A (5)

Class B (6)

(7)

Percentage of

Combined

Voting Power of

Common Stock

92.00 %

30.90 %

73.41 %

24.68 %

18,385,752

6,209,685

3,483,402

2,521,031

2,199,566

1,662,608

1,239,749

804,182

18,181,167

6,107,111

1,156,896

785,064

11,286

9,000

63,047

56,179

28,390

25,949

23,713

20,321

15,902

13,779

11,914

8,816

3,572

150

42.26 %

20.10 %

13.76 %

9.96 %

8.69 %

6.57 %

4.68 %

3.08 %

0.25 %

0.22 %

0.11 %

0.10 %

0.09 %

0.08 %

0.06 %

0.05 %

0.03 %

0.01 %

0.00 %

5.85 %

3.97 %

0.06 %

0.04 %

0.00 %

2.81 %

2.03 %

1.77 %

1.34 %

4.73 %

3.18 %

0.09 %

0.07 %

0.02 %

0.01 %

0.00 %

Name of Beneficial Owner (1)

France Family Group (8)

James C. France (9)

Ariel Investments, LLC (10)

Blackrock, Inc. (11)

Vanguard Group (12)

Paradice Investment Mngmnt LLC (13)

Lesa France Kennedy (14)

Brian Z. France (15)

John R. Saunders

J. Hyatt Brown (16)

Daniel W. Houser

Daryl Q. Wolfe

Morteza Hosseini-Kargar (17)

Christy F. Harris (18)

Joel S. Chitwood

William P. Graves

Larry Aiello, Jr.

Larree M. Renda

Sonia M. Green

Larry D. Woodard

All directors and executive officers as a

group (21 persons)(19)

common stock as of the Record Date by:

• All persons known to us who beneficially own 5 percent or more of either class of our common stock;

• Each “named executive officer” in the Summary Compensation Table in this Information Statement;

• Each of our directors and director nominees; and

• All of our directors, director nominees and officers as a group.

As described in the following notes to the table, voting and/or investment power with respect to certain shares of common stock

is shared by the named individuals. Consequently, such shares may be shown as beneficially owned by more than one person.

(15)

Limited Partnership. She is also the sole member of Sierra Central LLC, one of the two general partners of Western
Opportunity. Does not include shares held beneficially by the adult child of Lesa France Kennedy.
Includes (i) 84,212 Class B shares held of record by Western Opportunity, (ii) 39,992 Class B shares held of record by
WCF Family I, Inc., (iii) 15,695 Class B shares held of record by Western Opportunity as custodian for minor children,
(iv) 33,291 Class B shares held of record by WCF Family I, Inc. through Western Opportunity, and (v) 400,537 Class B
shares held of record by WCF Family Trust.

As of the Record Date our officers, directors and nominees were as follows:

DIRECTORS, NOMINEES AND OFFICERS

Name

Age

Position With the Company

Includes 5,000 Class A shares held as trustee of a qualified trust.

(16) Held of record as joint tenants with Cynthia R. Brown, his spouse.
(17)
(18)
(19) See footnotes (8) and (9) and footnotes (14) through (19).

Includes 1,500 Class A shares held by Mr. Harris as trustee of a Profit Sharing Plan and Trust.

Chairman of the Board, Assistant Treasurer and Director

Vice Chairwoman, Chief Executive Officer and Director

President

Secretary

Executive Vice President and Chief Operating Officer

Executive Vice President, Chief Administration Officer, Chief Legal Officer &

Executive Vice President, Chief Development and Chief Digital Officer

Executive Vice President, Chief Marketing Officer

Senior Vice President, Corporate Services and Chief Human Resources Officer

Senior Vice President, Legal, Chief Compliance Officer and Assistant Secretary

Vice President, Chief Financial Officer and Treasurer

Vice President, Corporate Development

Vice President

James C. France

Lesa France Kennedy

John R. Saunders

Joel S. Chitwood

W. Garrett Crotty

Craig A. Neeb

Daryl Q. Wolfe

Laura E. Jackson

Brett M. Scharback

Gregory S. Motto

Jeffrey T. Boerger

Derek Muldowney

Larry Aiello, Jr.

J. Hyatt Brown

Brian Z. France

William P. Graves

Sonia M. Green

Christy F. Harris

Morteza Hosseini-Kargar

Larree M. Renda

Larry D. Woodard

Director

Our Board of Directors is divided into three classes, with regular three-year staggered terms. Messrs. James C. France, Brian

Z. France and Woodard were elected to hold office until the annual meeting of shareholders to be held in 2017. Ms. Renda was

elected by the Board of Directors to complete the unexpired term of former director Lloyd Reuss and is up for election at the

annual meeting of shareholders to be held in 2017. Ms. Kennedy, Ms. Green and Messrs. Aiello and Brown were elected to

hold office until the annual meeting of shareholders to be held in 2018. Messrs. Graves, Harris and Hosseini were elected to

hold office until the annual meeting of shareholders to be held in 2019.

For the election of directors at the Annual Meeting of Shareholders in April 2017, the Board has accepted the recommendation

of the Nominating and Corporate Governance Committee and approved the nomination of Messrs. James C. France, Brian Z.

France, Mr. Woodard, and Ms. Renda as directors to serve three-year terms and hold office until the annual meeting of

shareholders to be held in 2020.

James C. France is the uncle of Lesa France Kennedy and Brian Z. France who are siblings. There are no other family

relationships among our executive officers and directors.

Directors Holding Office Until 2017 Annual Meeting

Mr. James C. France, a director since 1970, has served as our Chairman since July 2007, and as our Assistant Treasurer since

June 2009. Previously, he served as our Chairman and Chief Executive Officer from July 2007 until June 2009 and he served as

Vice Chairman and Chief Executive Officer from April 2003 until July 2007. He also served as our President and Chief

Operating Officer from 1987 until 2003. Mr. France is also Vice Chairman, Executive Vice President and Assistant Secretary of

NASCAR. Mr. France’s extensive business and motorsports industry experience, knowledge of our Company and proven

leadership ability are among the factors the Board considered with respect to his nomination for re-election to the Board.

Mr. Brian Z. France, a director since 1994, has served as NASCAR’s Chairman and Chief Executive Officer since September

2003, Executive Vice President from February 2001 to September 2003 and Vice Chairman from January 2003 to September

2003. Previously, he served as NASCAR’s Senior Vice President from 1999 to 2001. Mr. France’s extensive experience in and

ISC // 2017 INFORMATION STATEMENT // 3

Limited Partnership. She is also the sole member of Sierra Central LLC, one of the two general partners of Western

Opportunity. Does not include shares held beneficially by the adult child of Lesa France Kennedy.

(15)

Includes (i) 84,212 Class B shares held of record by Western Opportunity, (ii) 39,992 Class B shares held of record by

WCF Family I, Inc., (iii) 15,695 Class B shares held of record by Western Opportunity as custodian for minor children,

(iv) 33,291 Class B shares held of record by WCF Family I, Inc. through Western Opportunity, and (v) 400,537 Class B

shares held of record by WCF Family Trust.

(16) Held of record as joint tenants with Cynthia R. Brown, his spouse.

Includes 5,000 Class A shares held as trustee of a qualified trust.

(17)

(18)

Includes 1,500 Class A shares held by Mr. Harris as trustee of a Profit Sharing Plan and Trust.

(19) See footnotes (8) and (9) and footnotes (14) through (19).

As of the Record Date our officers, directors and nominees were as follows:

DIRECTORS, NOMINEES AND OFFICERS

Name

Age

Position With the Company

James C. France
Lesa France Kennedy
John R. Saunders
Joel S. Chitwood

W. Garrett Crotty

Craig A. Neeb
Daryl Q. Wolfe
Laura E. Jackson
Brett M. Scharback
Gregory S. Motto
Jeffrey T. Boerger
Derek Muldowney
Larry Aiello, Jr.
J. Hyatt Brown
Brian Z. France
William P. Graves
Sonia M. Green
Christy F. Harris
Morteza Hosseini-Kargar
Larree M. Renda
Larry D. Woodard

72
55
60
47

56
49
51
42
44
52
51
66
79
54
64
67
71
61
58
57

Chairman of the Board, Assistant Treasurer and Director
Vice Chairwoman, Chief Executive Officer and Director
President
Executive Vice President and Chief Operating Officer
Executive Vice President, Chief Administration Officer, Chief Legal Officer &
Secretary
Executive Vice President, Chief Development and Chief Digital Officer
Executive Vice President, Chief Marketing Officer
Senior Vice President, Corporate Services and Chief Human Resources Officer
Senior Vice President, Legal, Chief Compliance Officer and Assistant Secretary
Vice President, Chief Financial Officer and Treasurer
Vice President, Corporate Development
Vice President
Director
Director
Director
Director
Director
Director
Director
Director
Director

Our Board of Directors is divided into three classes, with regular three-year staggered terms. Messrs. James C. France, Brian
Z. France and Woodard were elected to hold office until the annual meeting of shareholders to be held in 2017. Ms. Renda was
elected by the Board of Directors to complete the unexpired term of former director Lloyd Reuss and is up for election at the
annual meeting of shareholders to be held in 2017. Ms. Kennedy, Ms. Green and Messrs. Aiello and Brown were elected to
hold office until the annual meeting of shareholders to be held in 2018. Messrs. Graves, Harris and Hosseini were elected to
hold office until the annual meeting of shareholders to be held in 2019.

For the election of directors at the Annual Meeting of Shareholders in April 2017, the Board has accepted the recommendation
of the Nominating and Corporate Governance Committee and approved the nomination of Messrs. James C. France, Brian Z.
France, Mr. Woodard, and Ms. Renda as directors to serve three-year terms and hold office until the annual meeting of
shareholders to be held in 2020.

James C. France is the uncle of Lesa France Kennedy and Brian Z. France who are siblings. There are no other family
relationships among our executive officers and directors.

Directors Holding Office Until 2017 Annual Meeting

Mr. James C. France, a director since 1970, has served as our Chairman since July 2007, and as our Assistant Treasurer since
June 2009. Previously, he served as our Chairman and Chief Executive Officer from July 2007 until June 2009 and he served as
Vice Chairman and Chief Executive Officer from April 2003 until July 2007. He also served as our President and Chief
Operating Officer from 1987 until 2003. Mr. France is also Vice Chairman, Executive Vice President and Assistant Secretary of
NASCAR. Mr. France’s extensive business and motorsports industry experience, knowledge of our Company and proven
leadership ability are among the factors the Board considered with respect to his nomination for re-election to the Board.

Mr. Brian Z. France, a director since 1994, has served as NASCAR’s Chairman and Chief Executive Officer since September
2003, Executive Vice President from February 2001 to September 2003 and Vice Chairman from January 2003 to September
2003. Previously, he served as NASCAR’s Senior Vice President from 1999 to 2001. Mr. France’s extensive experience in and

ISC // 2017 INFORMATION STATEMENT // 4

knowledge of the motorsports industry, in particular NASCAR, are among the factors the Board considered with respect to his
nomination for re-election to the Board.

Ms. Larree M. Renda, a director since 2015, currently serves as a member of the Board of Directors of Casey’s General Stores,
where she serves on the Audit, Risk and Compensation Committees. She also serves as a member of the Board of Regents of
the University of Portland. Prior to joining the Board of Directors, Ms. Renda served as one of Safeway’s top female
executives for 15 years, most recently as Executive Vice President from 1999 - 2015. She managed retail strategies and held
many administrative roles for Safeway, one of the largest food and drug retailers in North America. Her areas of influence
included labor relations, public affairs, communications, government relations, health initiatives, human resources, corporate
social responsibility and sustainability, philanthropy, industrial engineering, IT and real estate. Ms. Renda’s leading experience
in retail strategy, real estate, and financial planning are among the factors the Board considered with respect to her nomination
for re-election to the Board. Ms. Renda was elected by the Board of Directors to complete the unexpired term of former
director Lloyd Reuss and is up for election at the 2017 annual meeting of shareholders.

Mr. Larry D. Woodard, a director since April 2013, is President and CEO at Graham Stanley Advertising, a firm he founded in
2010, which integrates traditional and digital advertising. Prior to that, Mr. Woodard served as the President and CEO of
Vigilante Advertising for over a decade. Mr. Woodard’s 26 years of experience as a highly regarded and successful advertising
industry executive, his experience in business, and being a weekly columnist and on air commentator regarding advertising and
marketing issues, are among the factors the Board considered with respect to his nomination for re-election to the Board.

Directors Holding Office Until 2018 Annual Meeting

Ms. Lesa France Kennedy, a director since 1984, became Vice Chairwoman July 2007 and was named our Chief Executive
Officer in June 2009. Previously, she served as our President from April 2003 until June 2009. Ms. Kennedy served as our
Executive Vice President from January 1996 until April 2003, Secretary from 1987 until January 1996 and served as our
Treasurer from 1989 until January 1996. Ms. Kennedy is also Vice Chairwoman, Executive Vice President and Assistant
Treasurer of NASCAR. Ms. Kennedy’s experience in the motorsports industry, her knowledge of our Company and proven
leadership ability are among the factors the Board considered in concluding she is qualified to serve as a Board member.

Mr. Larry Aiello, Jr., a director since 2003, served as the President and Chief Executive Officer of Corning Cable Systems,
which is part of Corning, Inc. from 2002 until his retirement in 2008. Mr. Aiello joined Corning, Inc. in 1973. He was named
Senior Vice President and Chief of Staff-Corning Optical Communications in 2000. Mr. Aiello’s business background and
experience enhance his ability to analyze and contribute valuable insight on matters such as financing and capital management.
In addition, his contributions as a member and then Chairman of our Audit Committee are among the factors the Board
considered in concluding he is qualified to serve as a Board member.

Mr. J. Hyatt Brown, a director since 1987, serves as the Chairman of Brown & Brown, Inc. and has been in the insurance
business since 1959. Mr. Brown also currently serves as a director of NextEra Energy, Inc. and Verisk Analytics, Inc. Until
January 2010, Mr. Brown served on the Board of Rock-Tenn Company, until April 2008, he served on the Board of SunTrust
Banks, Inc. and until December 2006, he served on the Board of BellSouth Corporation, each a publicly held company.
Mr. Brown’s extensive business experience, service on boards of other publicly traded companies and proven leadership
abilities are among the factors the Board considered in concluding he is qualified to serve as a Board member. Mr. Brown is our
lead independent director.

Ms. Sonia M. Green, a director since April 2013, is President and CEO of SMG Marketing Group providing marketing, sales
and communications expertise to organizations in both the for profit and non-profit sectors. She currently serves on the board of
The Soup Kitchen of Boynton Beach and is a member of the 4Kids Business Development Council. From 2001 to 2008, Ms.
Green served as Director of Diversity Marketing and Sales for General Motors Corporation. She also previously served on the
board of the Greater Miami Chamber of Commerce, the Avon Products Foundation and National Hispanic Corporate Council
for which she served as Chairperson. Ms. Green’s nationally recognized leadership in marketing and brand communications for
more than 20 years, with a specialty in multicultural/diversity marketing, as well as her experience as a trusted spokesperson on
diversity and marketing issues for both Spanish and English media outlets, are among the factors the Board considered in
concluding she is qualified to serve as a Board member.

ISC // 2017 INFORMATION STATEMENT // 5

Directors Holding Office Until 2019 Annual Meeting

Mr. William P. Graves, a director since September 2003, served as President and Chief Executive Officer of the American

Trucking Association from January 2003 until January 2017. Mr. Graves served as Governor of the State of Kansas from

January 1995 until January 2003. Mr. Graves’ experience as a governor, as well as his knowledge of governmental affairs, are

among the factors the Board considered in concluding he is qualified to serve as a Board member.

Mr. Christy F. Harris, a director since 1984, has been engaged in the private practice of business and commercial law for more

than 40 years and currently is Of Counsel with Kinsey, Vincent, Pyle, P.L. Mr. Harris served as a Managing Director of AMA

Pro Racing until 2013. Mr. Harris also has served on the Board of ACCUS (Automobile Competition Committee for the United

States) for over five years and as a judge of the FIM International Tribunal for Motorsports Controversies and Disputes.

Mr. Harris’ experience as an attorney and counselor to businesses and their management, along with his extensive knowledge

of our business, are among the factors the Board considered in concluding he is qualified to serve as a Board member.

Mr. Morteza Hosseini-Kargar, a director since 2007, is the Chairman and Chief Executive Officer of Intervest Construction,

Inc. and has served in that role for over five years. Mr. Hosseini’s experience in real estate development and successful

ownership and operation of businesses are among the factors the Board considered in concluding he is qualified to serve as a

Ms. Green, Ms. Renda, and Messrs. Aiello, Brown, Graves, Hosseini and Woodard have been determined by the Board to be

“independent” as that term is presently defined in Rule 4200(a)(15) of the NASDAQ listing standards.

Board member.

Officers

Mr. Jeffrey T. Boerger became Vice President, Corporate Development since April 2016. In this role, he oversees all ISC-

owned and operated real estate, seeking its highest and best use. He served as President of Kansas Speedway Development

Corp. from March 2010 until April 2016, managing our investment in the Hollywood Casino Kansas Speedway, a role in which

he continues to serve. Prior to that, Mr. Boerger served as President of Kansas Speedway from May 2002 until March 2010.

Mr. Joel S. Chitwood became Executive Vice President and Chief Operating Officer since April 2016. Prior to that he had

served as Executive Vice President since April 2015. He served as Vice President for us from August 2009 to April 2015, and in

August 2010 was named President of Daytona International Speedway, one of our subsidiaries, a role in which he served until

April 2016. Prior to that, he served as President and Chief Operating Officer of Indianapolis Motor Speedway from November

2004 through August 2009. He served as Senior Vice President, Business Affairs for Indianapolis Motor Speedway from

October 2002 to November 2004. Mr. Chitwood also served as Vice President and General Manager of Raceway Associates,

LLC, which oversaw construction of Chicagoland Speedway from 1999 to 2002.

Mr. W. Garrett Crotty became Executive Vice President, Chief Administration Officer, Chief Legal Officer & Secretary in April

2015. He served as a Senior Vice President from April 2004 to April 2015. Mr. Crotty was named a Vice President in July 1999

and since 1996 has served as Secretary and General Counsel. Mr. Crotty has also served as General Counsel of NASCAR since

1996 and as a member of NASCAR’s Board of Directors since 2006.

Ms. Laura E. Jackson was named Senior Vice President, Corporate Services and Chief Human Resources Officer in April 2015.

She was named Vice President, Corporate Services in February 2013, after serving as our Vice President, Human Resources

from April 2010 through January 2013. Prior to that, she had served as our Managing Director, Human Resources from January

2009 through March 2010. Before joining the Company, Ms. Jackson served as Senior Vice President, Human Resources for

Textron, Inc. from September 2003 through January 2009.

Mr. Gregory S. Motto was named Vice President, Chief Financial Officer and Treasurer in December 2016. Prior to that, he

served as Vice President, Finance and Accounting, and Controller in April 2015. Mr. Motto joined us in 2000, and has served

in positions as Financial Analyst, Assistant Controller and Director of Strategic Planning. Prior to joining ISC, Motto worked

for GE Capital, serving as Financial Analyst responsible for financial planning and analysis and strategic planning. While at

GE Capital, Mr. Motto completed the GE Financial Management Program with honors.

Mr. Derek J. Muldowney was named Vice President in April 2016. Prior to that, he served for more than ten years as Executive

Vice President of ISC Design & Development, our design, construction and development subsidiary.

knowledge of the motorsports industry, in particular NASCAR, are among the factors the Board considered with respect to his

nomination for re-election to the Board.

Ms. Larree M. Renda, a director since 2015, currently serves as a member of the Board of Directors of Casey’s General Stores,

where she serves on the Audit, Risk and Compensation Committees. She also serves as a member of the Board of Regents of

the University of Portland. Prior to joining the Board of Directors, Ms. Renda served as one of Safeway’s top female

executives for 15 years, most recently as Executive Vice President from 1999 - 2015. She managed retail strategies and held

many administrative roles for Safeway, one of the largest food and drug retailers in North America. Her areas of influence

included labor relations, public affairs, communications, government relations, health initiatives, human resources, corporate

social responsibility and sustainability, philanthropy, industrial engineering, IT and real estate. Ms. Renda’s leading experience

in retail strategy, real estate, and financial planning are among the factors the Board considered with respect to her nomination

for re-election to the Board. Ms. Renda was elected by the Board of Directors to complete the unexpired term of former

director Lloyd Reuss and is up for election at the 2017 annual meeting of shareholders.

Mr. Larry D. Woodard, a director since April 2013, is President and CEO at Graham Stanley Advertising, a firm he founded in

2010, which integrates traditional and digital advertising. Prior to that, Mr. Woodard served as the President and CEO of

Vigilante Advertising for over a decade. Mr. Woodard’s 26 years of experience as a highly regarded and successful advertising

industry executive, his experience in business, and being a weekly columnist and on air commentator regarding advertising and

marketing issues, are among the factors the Board considered with respect to his nomination for re-election to the Board.

Ms. Lesa France Kennedy, a director since 1984, became Vice Chairwoman July 2007 and was named our Chief Executive

Officer in June 2009. Previously, she served as our President from April 2003 until June 2009. Ms. Kennedy served as our

Executive Vice President from January 1996 until April 2003, Secretary from 1987 until January 1996 and served as our

Treasurer from 1989 until January 1996. Ms. Kennedy is also Vice Chairwoman, Executive Vice President and Assistant

Treasurer of NASCAR. Ms. Kennedy’s experience in the motorsports industry, her knowledge of our Company and proven

leadership ability are among the factors the Board considered in concluding she is qualified to serve as a Board member.

Mr. Larry Aiello, Jr., a director since 2003, served as the President and Chief Executive Officer of Corning Cable Systems,

which is part of Corning, Inc. from 2002 until his retirement in 2008. Mr. Aiello joined Corning, Inc. in 1973. He was named

Senior Vice President and Chief of Staff-Corning Optical Communications in 2000. Mr. Aiello’s business background and

experience enhance his ability to analyze and contribute valuable insight on matters such as financing and capital management.

In addition, his contributions as a member and then Chairman of our Audit Committee are among the factors the Board

considered in concluding he is qualified to serve as a Board member.

Mr. J. Hyatt Brown, a director since 1987, serves as the Chairman of Brown & Brown, Inc. and has been in the insurance

business since 1959. Mr. Brown also currently serves as a director of NextEra Energy, Inc. and Verisk Analytics, Inc. Until

January 2010, Mr. Brown served on the Board of Rock-Tenn Company, until April 2008, he served on the Board of SunTrust

Banks, Inc. and until December 2006, he served on the Board of BellSouth Corporation, each a publicly held company.

Mr. Brown’s extensive business experience, service on boards of other publicly traded companies and proven leadership

abilities are among the factors the Board considered in concluding he is qualified to serve as a Board member. Mr. Brown is our

lead independent director.

Ms. Sonia M. Green, a director since April 2013, is President and CEO of SMG Marketing Group providing marketing, sales

and communications expertise to organizations in both the for profit and non-profit sectors. She currently serves on the board of

The Soup Kitchen of Boynton Beach and is a member of the 4Kids Business Development Council. From 2001 to 2008, Ms.

Green served as Director of Diversity Marketing and Sales for General Motors Corporation. She also previously served on the

board of the Greater Miami Chamber of Commerce, the Avon Products Foundation and National Hispanic Corporate Council

for which she served as Chairperson. Ms. Green’s nationally recognized leadership in marketing and brand communications for

more than 20 years, with a specialty in multicultural/diversity marketing, as well as her experience as a trusted spokesperson on

diversity and marketing issues for both Spanish and English media outlets, are among the factors the Board considered in

concluding she is qualified to serve as a Board member.

Directors Holding Office Until 2019 Annual Meeting

Mr. William P. Graves, a director since September 2003, served as President and Chief Executive Officer of the American
Trucking Association from January 2003 until January 2017. Mr. Graves served as Governor of the State of Kansas from
January 1995 until January 2003. Mr. Graves’ experience as a governor, as well as his knowledge of governmental affairs, are
among the factors the Board considered in concluding he is qualified to serve as a Board member.

Mr. Christy F. Harris, a director since 1984, has been engaged in the private practice of business and commercial law for more
than 40 years and currently is Of Counsel with Kinsey, Vincent, Pyle, P.L. Mr. Harris served as a Managing Director of AMA
Pro Racing until 2013. Mr. Harris also has served on the Board of ACCUS (Automobile Competition Committee for the United
States) for over five years and as a judge of the FIM International Tribunal for Motorsports Controversies and Disputes.
Mr. Harris’ experience as an attorney and counselor to businesses and their management, along with his extensive knowledge
of our business, are among the factors the Board considered in concluding he is qualified to serve as a Board member.

Mr. Morteza Hosseini-Kargar, a director since 2007, is the Chairman and Chief Executive Officer of Intervest Construction,
Inc. and has served in that role for over five years. Mr. Hosseini’s experience in real estate development and successful
ownership and operation of businesses are among the factors the Board considered in concluding he is qualified to serve as a
Board member.

Ms. Green, Ms. Renda, and Messrs. Aiello, Brown, Graves, Hosseini and Woodard have been determined by the Board to be
“independent” as that term is presently defined in Rule 4200(a)(15) of the NASDAQ listing standards.

Directors Holding Office Until 2018 Annual Meeting

Officers

Mr. Jeffrey T. Boerger became Vice President, Corporate Development since April 2016. In this role, he oversees all ISC-
owned and operated real estate, seeking its highest and best use. He served as President of Kansas Speedway Development
Corp. from March 2010 until April 2016, managing our investment in the Hollywood Casino Kansas Speedway, a role in which
he continues to serve. Prior to that, Mr. Boerger served as President of Kansas Speedway from May 2002 until March 2010.

Mr. Joel S. Chitwood became Executive Vice President and Chief Operating Officer since April 2016. Prior to that he had
served as Executive Vice President since April 2015. He served as Vice President for us from August 2009 to April 2015, and in
August 2010 was named President of Daytona International Speedway, one of our subsidiaries, a role in which he served until
April 2016. Prior to that, he served as President and Chief Operating Officer of Indianapolis Motor Speedway from November
2004 through August 2009. He served as Senior Vice President, Business Affairs for Indianapolis Motor Speedway from
October 2002 to November 2004. Mr. Chitwood also served as Vice President and General Manager of Raceway Associates,
LLC, which oversaw construction of Chicagoland Speedway from 1999 to 2002.

Mr. W. Garrett Crotty became Executive Vice President, Chief Administration Officer, Chief Legal Officer & Secretary in April
2015. He served as a Senior Vice President from April 2004 to April 2015. Mr. Crotty was named a Vice President in July 1999
and since 1996 has served as Secretary and General Counsel. Mr. Crotty has also served as General Counsel of NASCAR since
1996 and as a member of NASCAR’s Board of Directors since 2006.

Ms. Laura E. Jackson was named Senior Vice President, Corporate Services and Chief Human Resources Officer in April 2015.
She was named Vice President, Corporate Services in February 2013, after serving as our Vice President, Human Resources
from April 2010 through January 2013. Prior to that, she had served as our Managing Director, Human Resources from January
2009 through March 2010. Before joining the Company, Ms. Jackson served as Senior Vice President, Human Resources for
Textron, Inc. from September 2003 through January 2009.

Mr. Gregory S. Motto was named Vice President, Chief Financial Officer and Treasurer in December 2016. Prior to that, he
served as Vice President, Finance and Accounting, and Controller in April 2015. Mr. Motto joined us in 2000, and has served
in positions as Financial Analyst, Assistant Controller and Director of Strategic Planning. Prior to joining ISC, Motto worked
for GE Capital, serving as Financial Analyst responsible for financial planning and analysis and strategic planning. While at
GE Capital, Mr. Motto completed the GE Financial Management Program with honors.

Mr. Derek J. Muldowney was named Vice President in April 2016. Prior to that, he served for more than ten years as Executive
Vice President of ISC Design & Development, our design, construction and development subsidiary.

ISC // 2017 INFORMATION STATEMENT // 6

Mr. Craig A. Neeb was named Executive Vice President, Chief Development and Chief Digital Officer in April 2015. He had
served as Senior Vice President, Business Development and Chief Digital Officer since April 2014. Mr. Neeb was named our
Vice President, Business Development and Chief Digital Officer in February 2013, after serving as our Vice President — Multi
Channel Marketing from June 2009 through January 2013. Mr. Neeb also served as our Chief Information Officer from
November 2000 until February 2013. Mr. Neeb also served as our Managing Director of Marketing Services from 2008 to June
2009.

Mr. John R. Saunders was appointed our President in June 2009. Previously he served as Executive Vice President from April
2004 until June 2009 and from April 2003 until June 2009 served as our Chief Operating Officer. He had served as Senior Vice
President-Operations from July 1999 until April 2003, at which time he was appointed Senior Vice President and Chief
Operating Officer. He had served as a Vice President since 1997 and was President of Watkins Glen International, a subsidiary
of the Company, from 1983 until 1997.

Mr. Brett M. Scharback was named Senior Vice President, Legal, Chief Compliance Officer and Assistant Secretary in April
2015. He had served as Vice President — Deputy General Counsel, Chief Compliance Officer and Assistant Secretary since
April 2010. Prior to that, he served as Managing Director, Deputy General Counsel from May 2009 through March 2010 and
served as our Associate General Counsel from October 2004 through April 2009. Prior to joining us, Mr. Scharback was an
Associate in the Washington, D.C. office of Baker Botts L.L.P.

Mr. Daryl Q. Wolfe was named Executive Vice President, Chief Marketing Officer in April 2015. He had served as Senior Vice
President, Chief Marketing Officer since April 2012. Prior to that, he served as Vice President, Chief Marketing Officer from
April 2007 to April 2012. He had previously served as Vice President, Sales and Media from 2005 to 2007. Mr. Wolfe had
served as Managing Director, Marketing Partnerships from 2003 to 2005, and as Senior Director, Marketing Partnerships from
2001 to 2003.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

All of the racing events that take place during our fiscal year are sanctioned by various racing organizations such as the
American Historic Racing Motorcycle Association, the American Motorcyclist Association, the Automobile Racing Club of
America, the American Sportbike Racing Association - Championship Cup Series, the Federation Internationale de
L’Automobile, the Federation Internationale Motocycliste, International Motor Sports Association (“IMSA”), Historic
Sportscar Racing, IndyCar Series, NASCAR, 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.

Under current agreements, NASCAR contracts directly with certain network providers for television rights to the entire
NASCAR Cup, Xfinity and Camping World Truck series schedules. Under the terms of this arrangement, NASCAR retains
10.0 percent of the gross broadcast rights fees allocated to each NASCAR Cup, Xfinity and Camping World Truck series event
as a component of its sanction fees. 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. Ultimately, the promoter retains
65.0 percent of the net cash proceeds from the gross broadcast rights fees allocated to the event. Our television broadcast and
ancillary rights fees received from NASCAR for the NASCAR Cup, Xfinity and Camping World Truck series events conducted
at our wholly owned facilities were approximately $325.1 million in fiscal year 2016.

NASCAR, which sanctions many of our principal racing events, is a member of the France Family Group which controls over
73.0 percent of the combined voting power of our outstanding stock and some members of which serve as directors and officers
of our Company. Standard NASCAR sanction agreements require racetrack operators to pay NASCAR Event Management
("NEM") fees, which include prize and point fund monies for each sanctioned event conducted. The prize and point fund
monies are distributed by NASCAR to participants in the events. We recorded prize money of approximately $89.6 million, in
fiscal 2016, included in NEM fees, related to the aforementioned 25.0 percent of gross broadcast rights fees ultimately paid to
competitors. We have outstanding receivables related to NASCAR and its affiliates of approximately $23.1 million at
November 30, 2016.

In addition, we share a variety of expenses with NASCAR in the ordinary course of business. NASCAR pays rent, as well as a
related maintenance fee (allocated based on square footage), to us for office space in Daytona Beach, Florida. NASCAR pays
us for radio, program and strategic initiative advertising, hospitality and suite rentals, various tickets and credentials, catering

ISC // 2017 INFORMATION STATEMENT // 7

services, participation in a NASCAR racing event banquet, and track and other equipment rentals. We pay NASCAR for certain

advertising, participation in NASCAR racing series banquets, the use of NASCAR trademarks and intellectual images and

production space on trackside large screen video displays. We believe the amounts earned from, or charged by us, under each of

the aforementioned transactions are commercially reasonable. Our payments to NASCAR for Motor Racing Network’s

broadcast rights to NASCAR Camping World Truck races represent an agreed-upon percentage of our advertising revenues

attributable to such race broadcasts. NASCAR also reimburses us for 50.0 percent of the compensation paid to certain

personnel working in our legal, risk management and transportation departments, as well as 50.0 percent of the compensation

expense associated with certain receptionists. We reimburse NASCAR for 50.0 percent of the compensation paid to certain

personnel working in NASCAR’s legal department. NASCAR’s reimbursement for use of our mailroom, janitorial services,

security services, catering, graphic arts, photo and publishing services, telephone system and our reimbursement of NASCAR

for use of corporate aircraft is based on actual usage or an allocation of total actual usage. The aggregate amount received from

NASCAR by us for shared expenses, net of amounts paid by us for shared expenses, totaled approximately $10.2 million

during fiscal 2016.

IMSA, a wholly owned subsidiary of NASCAR, sanctions various events at certain of our facilities. Standard IMSA sanction

agreements require racetrack operators to pay event management fees, which include prize and point fund monies for each

sanctioned event conducted. The prize and point fund monies are distributed by IMSA to participants in the events. Event

management fees paid by us to IMSA totaled approximately $1.3 million for the year ended November 30, 2016.

AMA Pro Racing, an entity controlled by a member of the France Family Group, sanctions various events at certain of our

facilities. Standard AMA Pro Racing sanction agreements require racetrack operators to pay event management fees, which

include prize and point fund monies for each sanctioned event conducted. The prize and point fund monies are distributed by

AMA Pro Racing to participants in the events. Event management fees paid by us to AMA Pro Racing totaled approximately

$0.1 million during fiscal 2016. The aggregate amount received from AMA Pro Racing by the Company for shared expenses,

net of amounts paid by the Company for shared expenses, totaled approximately $0.2 million.

We strive to ensure, and management believes that, the terms of our transactions with NASCAR, IMSA and AMA Pro Racing

are no less favorable to us than could be obtained from an unrelated party.

Other Related Party Transactions

Certain members of the France Family Group paid us for the utilization of security services, event planning, event tickets,

purchase of catering services, maintenance services, and certain equipment. The amounts paid for these items were based on

actual costs incurred, similar prices paid by unrelated third party purchasers of similar items or estimated fair market values.

The net amount received by us for these items totaled approximately $0.3 million during fiscal 2016.

Crotty, Bartlett & Kelly, P.A. (“Crotty, Bartlett & Kelly”), is a law firm controlled by family members of W. Garrett Crotty, one

of our executive officers. We engage Crotty, Bartlett & Kelly for certain legal and consulting services. The aggregate amount

paid to Crotty, Bartlett & Kelly by us for legal and consulting services totaled approximately $36,000 during fiscal 2016.

J. Hyatt Brown, one of our directors, serves as Chairman of Brown & Brown, Inc. (“Brown & Brown”). Brown & Brown has

received commissions for serving as our insurance broker for several of our insurance policies, including our property and

casualty policy and certain employee benefit programs. The aggregate commissions received by Brown & Brown in connection

with these policies were approximately $0.6 million during fiscal 2016.

One of our directors, Christy F. Harris, is Of Counsel to Kinsey, Vincent Pyle, P.L., a law firm that provided legal services to us

during fiscal 2016. We paid approximately $97,000 for these services in fiscal 2016, which were charged to us on the same

We believe the amounts earned from or charged by us under each of the aforementioned transactions are commercially

basis as those provided other clients.

reasonable.

Approval of Related Party Transactions

We have adopted written policies and procedures for review, approval and ratification of transactions with related persons.

These policies are evidenced in the Code of Conduct. In addition, our employees are subject to similar policies concerning

Mr. Craig A. Neeb was named Executive Vice President, Chief Development and Chief Digital Officer in April 2015. He had

served as Senior Vice President, Business Development and Chief Digital Officer since April 2014. Mr. Neeb was named our

Vice President, Business Development and Chief Digital Officer in February 2013, after serving as our Vice President — Multi

Channel Marketing from June 2009 through January 2013. Mr. Neeb also served as our Chief Information Officer from

November 2000 until February 2013. Mr. Neeb also served as our Managing Director of Marketing Services from 2008 to June

2009.

Mr. John R. Saunders was appointed our President in June 2009. Previously he served as Executive Vice President from April

2004 until June 2009 and from April 2003 until June 2009 served as our Chief Operating Officer. He had served as Senior Vice

President-Operations from July 1999 until April 2003, at which time he was appointed Senior Vice President and Chief

Operating Officer. He had served as a Vice President since 1997 and was President of Watkins Glen International, a subsidiary

of the Company, from 1983 until 1997.

Mr. Brett M. Scharback was named Senior Vice President, Legal, Chief Compliance Officer and Assistant Secretary in April

2015. He had served as Vice President — Deputy General Counsel, Chief Compliance Officer and Assistant Secretary since

April 2010. Prior to that, he served as Managing Director, Deputy General Counsel from May 2009 through March 2010 and

served as our Associate General Counsel from October 2004 through April 2009. Prior to joining us, Mr. Scharback was an

Associate in the Washington, D.C. office of Baker Botts L.L.P.

Mr. Daryl Q. Wolfe was named Executive Vice President, Chief Marketing Officer in April 2015. He had served as Senior Vice

President, Chief Marketing Officer since April 2012. Prior to that, he served as Vice President, Chief Marketing Officer from

April 2007 to April 2012. He had previously served as Vice President, Sales and Media from 2005 to 2007. Mr. Wolfe had

served as Managing Director, Marketing Partnerships from 2003 to 2005, and as Senior Director, Marketing Partnerships from

2001 to 2003.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

All of the racing events that take place during our fiscal year are sanctioned by various racing organizations such as the

American Historic Racing Motorcycle Association, the American Motorcyclist Association, the Automobile Racing Club of

America, the American Sportbike Racing Association - Championship Cup Series, the Federation Internationale de

L’Automobile, the Federation Internationale Motocycliste, International Motor Sports Association (“IMSA”), Historic

Sportscar Racing, IndyCar Series, NASCAR, 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.

Under current agreements, NASCAR contracts directly with certain network providers for television rights to the entire

NASCAR Cup, Xfinity and Camping World Truck series schedules. Under the terms of this arrangement, NASCAR retains

10.0 percent of the gross broadcast rights fees allocated to each NASCAR Cup, Xfinity and Camping World Truck series event

as a component of its sanction fees. 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. Ultimately, the promoter retains

65.0 percent of the net cash proceeds from the gross broadcast rights fees allocated to the event. Our television broadcast and

ancillary rights fees received from NASCAR for the NASCAR Cup, Xfinity and Camping World Truck series events conducted

at our wholly owned facilities were approximately $325.1 million in fiscal year 2016.

NASCAR, which sanctions many of our principal racing events, is a member of the France Family Group which controls over

73.0 percent of the combined voting power of our outstanding stock and some members of which serve as directors and officers

of our Company. Standard NASCAR sanction agreements require racetrack operators to pay NASCAR Event Management

("NEM") fees, which include prize and point fund monies for each sanctioned event conducted. The prize and point fund

monies are distributed by NASCAR to participants in the events. We recorded prize money of approximately $89.6 million, in

fiscal 2016, included in NEM fees, related to the aforementioned 25.0 percent of gross broadcast rights fees ultimately paid to

competitors. We have outstanding receivables related to NASCAR and its affiliates of approximately $23.1 million at

November 30, 2016.

In addition, we share a variety of expenses with NASCAR in the ordinary course of business. NASCAR pays rent, as well as a

related maintenance fee (allocated based on square footage), to us for office space in Daytona Beach, Florida. NASCAR pays

us for radio, program and strategic initiative advertising, hospitality and suite rentals, various tickets and credentials, catering

services, participation in a NASCAR racing event banquet, and track and other equipment rentals. We pay NASCAR for certain
advertising, participation in NASCAR racing series banquets, the use of NASCAR trademarks and intellectual images and
production space on trackside large screen video displays. We believe the amounts earned from, or charged by us, under each of
the aforementioned transactions are commercially reasonable. Our payments to NASCAR for Motor Racing Network’s
broadcast rights to NASCAR Camping World Truck races represent an agreed-upon percentage of our advertising revenues
attributable to such race broadcasts. NASCAR also reimburses us for 50.0 percent of the compensation paid to certain
personnel working in our legal, risk management and transportation departments, as well as 50.0 percent of the compensation
expense associated with certain receptionists. We reimburse NASCAR for 50.0 percent of the compensation paid to certain
personnel working in NASCAR’s legal department. NASCAR’s reimbursement for use of our mailroom, janitorial services,
security services, catering, graphic arts, photo and publishing services, telephone system and our reimbursement of NASCAR
for use of corporate aircraft is based on actual usage or an allocation of total actual usage. The aggregate amount received from
NASCAR by us for shared expenses, net of amounts paid by us for shared expenses, totaled approximately $10.2 million
during fiscal 2016.

IMSA, a wholly owned subsidiary of NASCAR, sanctions various events at certain of our facilities. Standard IMSA sanction
agreements require racetrack operators to pay event management fees, which include prize and point fund monies for each
sanctioned event conducted. The prize and point fund monies are distributed by IMSA to participants in the events. Event
management fees paid by us to IMSA totaled approximately $1.3 million for the year ended November 30, 2016.

AMA Pro Racing, an entity controlled by a member of the France Family Group, sanctions various events at certain of our
facilities. Standard AMA Pro Racing sanction agreements require racetrack operators to pay event management fees, which
include prize and point fund monies for each sanctioned event conducted. The prize and point fund monies are distributed by
AMA Pro Racing to participants in the events. Event management fees paid by us to AMA Pro Racing totaled approximately
$0.1 million during fiscal 2016. The aggregate amount received from AMA Pro Racing by the Company for shared expenses,
net of amounts paid by the Company for shared expenses, totaled approximately $0.2 million.

We strive to ensure, and management believes that, the terms of our transactions with NASCAR, IMSA and AMA Pro Racing
are no less favorable to us than could be obtained from an unrelated party.

Other Related Party Transactions

Certain members of the France Family Group paid us for the utilization of security services, event planning, event tickets,
purchase of catering services, maintenance services, and certain equipment. The amounts paid for these items were based on
actual costs incurred, similar prices paid by unrelated third party purchasers of similar items or estimated fair market values.
The net amount received by us for these items totaled approximately $0.3 million during fiscal 2016.

Crotty, Bartlett & Kelly, P.A. (“Crotty, Bartlett & Kelly”), is a law firm controlled by family members of W. Garrett Crotty, one
of our executive officers. We engage Crotty, Bartlett & Kelly for certain legal and consulting services. The aggregate amount
paid to Crotty, Bartlett & Kelly by us for legal and consulting services totaled approximately $36,000 during fiscal 2016.

J. Hyatt Brown, one of our directors, serves as Chairman of Brown & Brown, Inc. (“Brown & Brown”). Brown & Brown has
received commissions for serving as our insurance broker for several of our insurance policies, including our property and
casualty policy and certain employee benefit programs. The aggregate commissions received by Brown & Brown in connection
with these policies were approximately $0.6 million during fiscal 2016.

One of our directors, Christy F. Harris, is Of Counsel to Kinsey, Vincent Pyle, P.L., a law firm that provided legal services to us
during fiscal 2016. We paid approximately $97,000 for these services in fiscal 2016, which were charged to us on the same
basis as those provided other clients.

We believe the amounts earned from or charged by us under each of the aforementioned transactions are commercially
reasonable.

Approval of Related Party Transactions

We have adopted written policies and procedures for review, approval and ratification of transactions with related persons.
These policies are evidenced in the Code of Conduct. In addition, our employees are subject to similar policies concerning

ISC // 2017 INFORMATION STATEMENT // 8

conflicts of interest, business ethics and conduct, as contained in our Employee Handbook. The Audit Committee is charged in
its Charter with the ultimate responsibility for the review and approval of all related party transactions meeting the thresholds
that require disclosure pursuant to Item 404 of Regulation S-K. All proposed transactions (regardless of the amount involved)
with any director or executive officer (or their affiliates) are required to be submitted to the Audit Committee for approval prior
to the transaction taking place. As part of our disclosure controls, all related party transactions are reported monthly and
reviewed by the Disclosure Committee quarterly, which includes the Chief Compliance Officer and the Director of Internal
Audit. The Disclosure Committee is responsible for elevating matters for Audit Committee consideration. While the standard
used to evaluate a transaction will vary depending upon the particular circumstances, the goal is to make sure that we are
treated fairly and on the same basis as transactions with parties that are not related. There have been no instances during the last
fiscal year where such policies and procedures were not followed, nor were there any transactions listed in “Certain
Relationships and Related Transactions” that were not reviewed by the Audit Committee.

DIRECTOR MEETINGS AND COMMITTEES

Our Board of Directors met three times during fiscal 2016. Our Board of Directors has an Audit Committee, a Compensation
Committee, a Nominating and Corporate Governance Committee, a Growth & Development Committee and a Financing and
Stock Repurchase Committee.

The functions of the Audit Committee (which presently consists of Ms. Renda and Messrs. Aiello (Chair), Brown and Graves)
include (i) meeting with auditors to discuss the scope, fees, timing and results of the annual audit, (ii) reviewing our
consolidated financial statements, and (iii) performing other duties deemed appropriate by the Board. The Board of Directors
has adopted a written charter for the Audit Committee, which is available on our website at
www.internationalspeedwaycorporation.com. The Board of Directors has determined that Ms. Renda and Messrs. Aiello and
Brown are qualified as audit committee financial experts (as defined by the SEC) and that all of the members of the Audit
Committee are “independent” (as independence is presently defined in Rule 4200(a)(15) of the NASDAQ listing standards).
The Audit Committee met six times during fiscal 2016.

The functions of the Compensation Committee (which presently consists of Ms. Renda (Chair) and Messrs. Graves and
Woodard) include (i) reviewing existing compensation levels of executive officers, (ii) making compensation recommendations
to management and the Board, and (iii) performing other duties deemed appropriate by the Board. The Board of Directors has
adopted a written charter for the Compensation Committee, which is available on our website at
www.internationalspeedwaycorporation.com. The Board has determined that all the members of the Compensation Committee
are “independent” (as independence is presently defined in Rule 4200(a)(15) of the NASDAQ listing standards). The
Compensation Committee met three times during fiscal 2016.

The functions of the Nominating and Corporate Governance Committee (which presently consists of Messrs. Brown (Chair),
Aiello and Graves) include (i) selecting and recommending to the Board director nominees for election at each annual meeting
of shareholders, as well as director nominees to fill vacancies arising between annual meetings, (ii) reviewing and
recommending to the Board changes to the compensation package for directors, (iii) reviewing and, if appropriate, making
changes to the responsibilities of directors and the qualifications for new nominees, (iv) annually assessing the Board’s
effectiveness as a whole as well as the effectiveness of the individual directors and the Board’s various committees,
(v) reviewing and recommending to the Board changes to the corporate governance standards for the Board and its committees,
and (vi) performing other duties deemed appropriate by the Board. The Nominating and Corporate Governance Committee met
once during fiscal 2016.

The functions of the Growth and Development Committee (which presently consists of Ms. Green and Messrs. Aiello, Brown,
Brian Z. France, Harris (Chair) and Hosseini) include (i) reviewing the actual and proposed internal growth and external
development projects of the Company, (ii) making recommendations to management and the Board regarding matters that
come before the Committee, and (iii) performing other duties deemed appropriate by the Board. The Growth and Development
Committee met three times during fiscal 2016.

The functions of the Financing and Stock Repurchase Committee (which presently consists of Messrs. Aiello, Brown, James C.
France (Chair) and Harris) include (i) reviewing, as needed, the actual and proposed mechanisms used by the Company to
obtain financing for the Company, (ii) overseeing and monitoring the stock repurchase activities of the Company,

ISC // 2017 INFORMATION STATEMENT // 9

(iii) exercising authority delegated to it by the Board to approve changes to the Company’s stock repurchase program within

limits established by the Board, (iv) making recommendations to management and the Board regarding matters that come

before the Committee, and (v) performing other duties deemed appropriate by the Board. The Financing and Stock Repurchase

Committee met six times during fiscal 2016.

During fiscal 2016, all of the directors attended at least 75 percent of the aggregate of (1) the total number of meetings of the

Board of Directors and (2) the total number of meetings held by all committees of the Board on which they served.

BOARD LEADERSHIP

Our Board has the flexibility to determine whether the roles of Chairman of the Board and Chief Executive Officer should be

separated or combined. The Board makes this decision based on its evaluation of the circumstances and the Company’s specific

needs. Effective June 2009, upon the retirement of James C. France from the position of Chief Executive Officer, the roles of

Chairman and Chief Executive Officer were separated. James C. France continues to serve as Chairman of the Board, while

Lesa France Kennedy serves as Vice Chairwoman and Chief Executive Officer. Prior to June 2009, the positions of Chairman

and Chief Executive Officer were held jointly by James C. France.

We believe that this leadership structure is desirable under present circumstances because it allows Ms. Kennedy to focus her

efforts on running our business and managing it in the best interests of our shareholders, while we are able to continue to

benefit from Mr. James C. France’s extensive business and motorsports industry experience, knowledge of our Company and

proven leadership ability. We believe that having Mr. James C. France as Chairman benefits the Company in that it allows him

to use his expertise in both industry relationships and sanctioning body partnerships, as well as his extensive Company

knowledge, in setting the strategic agenda of the Board.

Our lead independent director, J. Hyatt Brown, coordinates providing feedback from other non-management members of the

Board to the Chief Executive Officer and other management regarding business issues and risk. Mr. Brown, through his role as

Chairman of the Nominating and Corporate Governance Committee, also manages the process of annual director self-

assessment and evaluation of the Board as a whole.

RISK OVERSIGHT

Our Board of Directors takes an active role in the oversight of risks impacting our Company. While management is responsible

for managing the Company’s risk on a daily basis and for bringing to the Board’s attention areas of risk which are most

material to our business, the Board and management work closely to ensure that integrity and accountability are integrated into

our operations. The Board, including through certain of its committees, discussed in more detail below (which are comprised

solely of independent directors), and through regular meetings of the independent directors without management present,

regularly reviews areas of risk (both compliance and business risk) to us and advises and directs management on the scope and

implementation of policies, strategy and other actions designed to mitigate such risks.

Many of the direct risk oversight functions are performed by the Audit Committee and our internal audit staff. Specific

examples of risks primarily overseen by the Audit Committee include risks related to the preparation of our financial

statements, disclosure controls and procedures, internal controls and procedures required by the Sarbanes-Oxley Act,

accounting, financial and auditing risks, matters reported to the Audit Committee through our Internal Audit Department and

through anonymous reporting procedures, cyber security, and regulations and risks associated with related party transactions.

Through our regular compliance work related to the Sarbanes-Oxley Act, we have created entity level controls that are

validated on a regular basis by our Internal Audit Department. These controls are designed to help prevent control failures as

well as assist in the awareness of a control failure. Members of our management team also participate in an enterprise risk

management committee, which regularly evaluates those risks deemed to be significant to us. The Audit Committee receives

regular updates regarding those risks identified by the enterprise risk management committee.

The Nominating and Corporate Governance Committee regularly monitors our compliance with corporate governance

standards and regulations. The Compensation Committee reviews and evaluates potential risks related to compensation

programs for executive and certain non-executive employees of the Company, as further described below in the section entitled

“Compensation Discussion and Analysis.” The Growth and Development Committee reviews and evaluates risks related to any

strategic ventures, transactions or capital expenditures.

conflicts of interest, business ethics and conduct, as contained in our Employee Handbook. The Audit Committee is charged in

its Charter with the ultimate responsibility for the review and approval of all related party transactions meeting the thresholds

that require disclosure pursuant to Item 404 of Regulation S-K. All proposed transactions (regardless of the amount involved)

with any director or executive officer (or their affiliates) are required to be submitted to the Audit Committee for approval prior

to the transaction taking place. As part of our disclosure controls, all related party transactions are reported monthly and

reviewed by the Disclosure Committee quarterly, which includes the Chief Compliance Officer and the Director of Internal

Audit. The Disclosure Committee is responsible for elevating matters for Audit Committee consideration. While the standard

treated fairly and on the same basis as transactions with parties that are not related. There have been no instances during the last

fiscal year where such policies and procedures were not followed, nor were there any transactions listed in “Certain

Relationships and Related Transactions” that were not reviewed by the Audit Committee.

DIRECTOR MEETINGS AND COMMITTEES

Our Board of Directors met three times during fiscal 2016. Our Board of Directors has an Audit Committee, a Compensation

Committee, a Nominating and Corporate Governance Committee, a Growth & Development Committee and a Financing and

Stock Repurchase Committee.

The functions of the Audit Committee (which presently consists of Ms. Renda and Messrs. Aiello (Chair), Brown and Graves)

include (i) meeting with auditors to discuss the scope, fees, timing and results of the annual audit, (ii) reviewing our

consolidated financial statements, and (iii) performing other duties deemed appropriate by the Board. The Board of Directors

has adopted a written charter for the Audit Committee, which is available on our website at

www.internationalspeedwaycorporation.com. The Board of Directors has determined that Ms. Renda and Messrs. Aiello and

Brown are qualified as audit committee financial experts (as defined by the SEC) and that all of the members of the Audit

Committee are “independent” (as independence is presently defined in Rule 4200(a)(15) of the NASDAQ listing standards).

The Audit Committee met six times during fiscal 2016.

The functions of the Compensation Committee (which presently consists of Ms. Renda (Chair) and Messrs. Graves and

to management and the Board, and (iii) performing other duties deemed appropriate by the Board. The Board of Directors has

adopted a written charter for the Compensation Committee, which is available on our website at

www.internationalspeedwaycorporation.com. The Board has determined that all the members of the Compensation Committee

are “independent” (as independence is presently defined in Rule 4200(a)(15) of the NASDAQ listing standards). The

Compensation Committee met three times during fiscal 2016.

The functions of the Nominating and Corporate Governance Committee (which presently consists of Messrs. Brown (Chair),

Aiello and Graves) include (i) selecting and recommending to the Board director nominees for election at each annual meeting

of shareholders, as well as director nominees to fill vacancies arising between annual meetings, (ii) reviewing and

recommending to the Board changes to the compensation package for directors, (iii) reviewing and, if appropriate, making

changes to the responsibilities of directors and the qualifications for new nominees, (iv) annually assessing the Board’s

effectiveness as a whole as well as the effectiveness of the individual directors and the Board’s various committees,

(v) reviewing and recommending to the Board changes to the corporate governance standards for the Board and its committees,

and (vi) performing other duties deemed appropriate by the Board. The Nominating and Corporate Governance Committee met

once during fiscal 2016.

The functions of the Growth and Development Committee (which presently consists of Ms. Green and Messrs. Aiello, Brown,

Brian Z. France, Harris (Chair) and Hosseini) include (i) reviewing the actual and proposed internal growth and external

development projects of the Company, (ii) making recommendations to management and the Board regarding matters that

come before the Committee, and (iii) performing other duties deemed appropriate by the Board. The Growth and Development

Committee met three times during fiscal 2016.

The functions of the Financing and Stock Repurchase Committee (which presently consists of Messrs. Aiello, Brown, James C.

France (Chair) and Harris) include (i) reviewing, as needed, the actual and proposed mechanisms used by the Company to

obtain financing for the Company, (ii) overseeing and monitoring the stock repurchase activities of the Company,

used to evaluate a transaction will vary depending upon the particular circumstances, the goal is to make sure that we are

BOARD LEADERSHIP

(iii) exercising authority delegated to it by the Board to approve changes to the Company’s stock repurchase program within
limits established by the Board, (iv) making recommendations to management and the Board regarding matters that come
before the Committee, and (v) performing other duties deemed appropriate by the Board. The Financing and Stock Repurchase
Committee met six times during fiscal 2016.

During fiscal 2016, all of the directors attended at least 75 percent of the aggregate of (1) the total number of meetings of the
Board of Directors and (2) the total number of meetings held by all committees of the Board on which they served.

Our Board has the flexibility to determine whether the roles of Chairman of the Board and Chief Executive Officer should be
separated or combined. The Board makes this decision based on its evaluation of the circumstances and the Company’s specific
needs. Effective June 2009, upon the retirement of James C. France from the position of Chief Executive Officer, the roles of
Chairman and Chief Executive Officer were separated. James C. France continues to serve as Chairman of the Board, while
Lesa France Kennedy serves as Vice Chairwoman and Chief Executive Officer. Prior to June 2009, the positions of Chairman
and Chief Executive Officer were held jointly by James C. France.

We believe that this leadership structure is desirable under present circumstances because it allows Ms. Kennedy to focus her
efforts on running our business and managing it in the best interests of our shareholders, while we are able to continue to
benefit from Mr. James C. France’s extensive business and motorsports industry experience, knowledge of our Company and
proven leadership ability. We believe that having Mr. James C. France as Chairman benefits the Company in that it allows him
to use his expertise in both industry relationships and sanctioning body partnerships, as well as his extensive Company
knowledge, in setting the strategic agenda of the Board.

Our lead independent director, J. Hyatt Brown, coordinates providing feedback from other non-management members of the
Board to the Chief Executive Officer and other management regarding business issues and risk. Mr. Brown, through his role as
Chairman of the Nominating and Corporate Governance Committee, also manages the process of annual director self-
assessment and evaluation of the Board as a whole.

Woodard) include (i) reviewing existing compensation levels of executive officers, (ii) making compensation recommendations

RISK OVERSIGHT

Our Board of Directors takes an active role in the oversight of risks impacting our Company. While management is responsible
for managing the Company’s risk on a daily basis and for bringing to the Board’s attention areas of risk which are most
material to our business, the Board and management work closely to ensure that integrity and accountability are integrated into
our operations. The Board, including through certain of its committees, discussed in more detail below (which are comprised
solely of independent directors), and through regular meetings of the independent directors without management present,
regularly reviews areas of risk (both compliance and business risk) to us and advises and directs management on the scope and
implementation of policies, strategy and other actions designed to mitigate such risks.

Many of the direct risk oversight functions are performed by the Audit Committee and our internal audit staff. Specific
examples of risks primarily overseen by the Audit Committee include risks related to the preparation of our financial
statements, disclosure controls and procedures, internal controls and procedures required by the Sarbanes-Oxley Act,
accounting, financial and auditing risks, matters reported to the Audit Committee through our Internal Audit Department and
through anonymous reporting procedures, cyber security, and regulations and risks associated with related party transactions.
Through our regular compliance work related to the Sarbanes-Oxley Act, we have created entity level controls that are
validated on a regular basis by our Internal Audit Department. These controls are designed to help prevent control failures as
well as assist in the awareness of a control failure. Members of our management team also participate in an enterprise risk
management committee, which regularly evaluates those risks deemed to be significant to us. The Audit Committee receives
regular updates regarding those risks identified by the enterprise risk management committee.

The Nominating and Corporate Governance Committee regularly monitors our compliance with corporate governance
standards and regulations. The Compensation Committee reviews and evaluates potential risks related to compensation
programs for executive and certain non-executive employees of the Company, as further described below in the section entitled
“Compensation Discussion and Analysis.” The Growth and Development Committee reviews and evaluates risks related to any
strategic ventures, transactions or capital expenditures.

ISC // 2017 INFORMATION STATEMENT // 10

In addition to the foregoing, the Board has adopted a Code of Ethics, which is applicable to all of our employees, including the
directors, our principal executive officer, the principal financial officer and the principal accounting officer. The Code of Ethics
is designed, among other things, to deter wrongdoing and promote ethical conduct, full and accurate reporting in all our filings
with the SEC, and compliance with applicable laws. The Code of Ethics mandates the maintenance of a 24 hour hotline that
any employee can use to report, anonymously if they so choose, any suspected fraud, financial impropriety or other alleged
wrongdoing. All calls are handled by the Senior Vice President and Chief Compliance Officer, the Senior Vice President,
Corporate Services and/or Director of Internal Audit, as appropriate, who regularly report to the Audit Committee on calls
received. A copy of the current Code of Ethics is available on our website at www.internationalspeedwaycorporation.com.

DIRECTOR NOMINATION PROCESS

A current copy of the Nominating and Corporate Governance Committee charter is available on our website at
www.internationalspeedwaycorporation.com. Each director on the Nominating and Corporate Governance Committee has been
determined by the Board to be “independent” (as independence is presently defined by the NASDAQ listing standards).

As part of its process and procedures, the Nominating and Corporate Governance Committee considers director candidates
recommended by shareholders. All recommendations of director candidates by shareholders following the proper procedures
(as set forth below) will be furnished to the Nominating and Corporate Governance Committee and will be considered in the
same manner and according to the same criteria as would all other director candidates.

There have been no material changes to the procedures by which shareholders may recommend nominees to our Board.
Shareholders who wish to nominate directors for election at an annual meeting of shareholders are required to follow the
procedures contained in Article VI of our Amended and Restated Articles of Incorporation, which are available on our website
at www.internationalspeedwaycorporation.com. Nominations must be in writing, addressed to the Secretary, and must be
received in writing not less than 120 days nor more than 180 days prior to the first anniversary of the date of our notice of
annual meeting of shareholders provided for the previous year’s annual meeting. The shareholder’s notice to the Secretary must
set forth (i) certain information regarding the nominee, such as name, age and principal occupation, and (ii) certain information
regarding the shareholder(s) such as the name and record address of the shareholder(s) and the number of shares of our capital
stock such shareholder(s) own. No person nominated by shareholders will be eligible for election as a director unless
nominated in accordance with these procedures. There were no shareholder nominations submitted for the 2017 annual meeting
of shareholders. Nominations by shareholders for the 2017 annual meeting must be received by the Secretary between
September 8, 2017 and November 7, 2017.

As stated in its charter, the Nominating and Corporate Governance Committee will annually assess the Board’s effectiveness,
including the core competencies and qualifications of members of the Board. If the Nominating and Corporate Governance
Committee deems it necessary, it may select and retain an executive search firm to identify qualified candidates for nomination
to serve as members of the Board.

The Nominating and Corporate Governance Committee will consider all nominees to our Board of Directors, and make its
recommendations to the full Board, which will then decide whether to nominate a Board candidate. The Nominating and
Corporate Governance Committee will consider each nominee’s skill, experience, knowledge and judgment, and believes that
members of and nominees to the Board should reflect expertise in one or more of the following areas important to us:
accounting and finance, business of motorsports, mergers and acquisitions, leadership, business and management, strategic
planning, government relations, investor relations, legal issues, executive leadership development and executive compensation.
Further, the assessment of a nominee’s qualifications will include consideration of the nominee’s ability to use sound judgment;
service on the boards of directors of other companies, public and private; integrity, honesty, fairness and independence;
understanding of our business; and interest and willingness to serve on the Board and dedicate the requisite time and attention
to service on the Board. All nominees to our Board will be considered by the Nominating and Corporate Governance
Committee with these factors in mind.

As part of the Nominating and Corporate Governance Committee’s assessment of a prospective director nominee’s skill,
experience, knowledge and judgment, the committee considers diversity of background and personal experience. Ideally, the
Board should be composed of persons having a diversity of skills, background and experience that are useful to us and our
present and future needs. However, the Nominating and Corporate Governance Committee does not have a formal policy

ISC // 2017 INFORMATION STATEMENT // 11

specifying how diversity of background and personal experience should be applied and assessed in identifying or evaluating

director nominees. When considering potential nominees for the Board, the Nominating and Corporate Governance Committee

considers the standards above and each potential nominee’s individual qualifications in light of the needs of the Board at such

time and its anticipated needs in the future.

It is our policy to hold the annual meeting of directors immediately following the annual meeting of shareholders. All Board

members are invited to attend the annual meeting of shareholders and are expected to attend, but are not required to attend. In

fiscal 2016, all members of the Board attended the annual meeting of shareholders.

SHAREHOLDER COMMUNICATIONS TO THE BOARD

Shareholders may contact an individual director, the Board as a group, or a specified Board committee or group, including the

non-employee directors as a group, by mailing correspondence in the following manner:

International Speedway Corporation

c/o Legal Department

One Daytona Blvd.

Daytona Beach, Florida 32114

Attention: Board of Directors

Each communication should specify the applicable addressee or addressees to be contacted as well as the general topic of the

communication. Our Legal Department will initially receive and process communications before forwarding them to the

addressee. All communications from shareholders will be promptly forwarded to the addressee(s).

CODE OF ETHICS

Our Audit Committee has adopted a code of ethics that applies to all of our employees, including our senior financial officers,

our principal executive officer and our principal financial officer. A copy of that code of ethics is available on our website at

www.internationalspeedwaycorporation.com. We intend to satisfy our disclosure obligations regarding any amendment to, or

waiver from, any provision of our code of ethics that applies to any of our senior financial officers by posting that information

on our website, as well as making all public disclosures required by the SEC. At the present time there have been no

amendments or waivers.

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Based upon a review of Forms 3 and 4 and amendments thereto furnished to us during the fiscal year ended

November 30, 2016, Forms 5 and amendments thereto furnished to us with respect to the fiscal year ended November 30, 2016,

and written representations furnished to us, there is no person who, at any time during the fiscal year, was a director, officer, or

beneficial owner of more than ten percent of any class of our securities that failed to file on a timely basis the reports required

by Section 16(a) of the Exchange Act during the fiscal year ended November 30, 2016.

REGISTERED INDEPENDENT PUBLIC ACCOUNTING FIRM

Ernst & Young LLP and its predecessors have served as our auditors since 1966. Representatives of Ernst & Young LLP will be

present at the Annual Meeting of Shareholders with the opportunity to make a statement, if they so desire, and will be available

to respond to appropriate questions from shareholders.

The following table presents fees for all professional services provided by Ernst & Young LLP for the audit of our consolidated

financial statements for the years ended November 30, 2016 and 2015, and fees billed for other services rendered by Ernst &

Young LLP during those periods.

In addition to the foregoing, the Board has adopted a Code of Ethics, which is applicable to all of our employees, including the

directors, our principal executive officer, the principal financial officer and the principal accounting officer. The Code of Ethics

is designed, among other things, to deter wrongdoing and promote ethical conduct, full and accurate reporting in all our filings

with the SEC, and compliance with applicable laws. The Code of Ethics mandates the maintenance of a 24 hour hotline that

any employee can use to report, anonymously if they so choose, any suspected fraud, financial impropriety or other alleged

wrongdoing. All calls are handled by the Senior Vice President and Chief Compliance Officer, the Senior Vice President,

Corporate Services and/or Director of Internal Audit, as appropriate, who regularly report to the Audit Committee on calls

received. A copy of the current Code of Ethics is available on our website at www.internationalspeedwaycorporation.com.

DIRECTOR NOMINATION PROCESS

A current copy of the Nominating and Corporate Governance Committee charter is available on our website at

www.internationalspeedwaycorporation.com. Each director on the Nominating and Corporate Governance Committee has been

determined by the Board to be “independent” (as independence is presently defined by the NASDAQ listing standards).

As part of its process and procedures, the Nominating and Corporate Governance Committee considers director candidates

recommended by shareholders. All recommendations of director candidates by shareholders following the proper procedures

(as set forth below) will be furnished to the Nominating and Corporate Governance Committee and will be considered in the

same manner and according to the same criteria as would all other director candidates.

There have been no material changes to the procedures by which shareholders may recommend nominees to our Board.

Shareholders who wish to nominate directors for election at an annual meeting of shareholders are required to follow the

procedures contained in Article VI of our Amended and Restated Articles of Incorporation, which are available on our website

received in writing not less than 120 days nor more than 180 days prior to the first anniversary of the date of our notice of

annual meeting of shareholders provided for the previous year’s annual meeting. The shareholder’s notice to the Secretary must

set forth (i) certain information regarding the nominee, such as name, age and principal occupation, and (ii) certain information

regarding the shareholder(s) such as the name and record address of the shareholder(s) and the number of shares of our capital

stock such shareholder(s) own. No person nominated by shareholders will be eligible for election as a director unless

nominated in accordance with these procedures. There were no shareholder nominations submitted for the 2017 annual meeting

of shareholders. Nominations by shareholders for the 2017 annual meeting must be received by the Secretary between

As stated in its charter, the Nominating and Corporate Governance Committee will annually assess the Board’s effectiveness,

including the core competencies and qualifications of members of the Board. If the Nominating and Corporate Governance

Committee deems it necessary, it may select and retain an executive search firm to identify qualified candidates for nomination

to serve as members of the Board.

The Nominating and Corporate Governance Committee will consider all nominees to our Board of Directors, and make its

recommendations to the full Board, which will then decide whether to nominate a Board candidate. The Nominating and

Corporate Governance Committee will consider each nominee’s skill, experience, knowledge and judgment, and believes that

members of and nominees to the Board should reflect expertise in one or more of the following areas important to us:

accounting and finance, business of motorsports, mergers and acquisitions, leadership, business and management, strategic

planning, government relations, investor relations, legal issues, executive leadership development and executive compensation.

Further, the assessment of a nominee’s qualifications will include consideration of the nominee’s ability to use sound judgment;

service on the boards of directors of other companies, public and private; integrity, honesty, fairness and independence;

understanding of our business; and interest and willingness to serve on the Board and dedicate the requisite time and attention

to service on the Board. All nominees to our Board will be considered by the Nominating and Corporate Governance

Committee with these factors in mind.

As part of the Nominating and Corporate Governance Committee’s assessment of a prospective director nominee’s skill,

experience, knowledge and judgment, the committee considers diversity of background and personal experience. Ideally, the

Board should be composed of persons having a diversity of skills, background and experience that are useful to us and our

present and future needs. However, the Nominating and Corporate Governance Committee does not have a formal policy

specifying how diversity of background and personal experience should be applied and assessed in identifying or evaluating
director nominees. When considering potential nominees for the Board, the Nominating and Corporate Governance Committee
considers the standards above and each potential nominee’s individual qualifications in light of the needs of the Board at such
time and its anticipated needs in the future.

It is our policy to hold the annual meeting of directors immediately following the annual meeting of shareholders. All Board
members are invited to attend the annual meeting of shareholders and are expected to attend, but are not required to attend. In
fiscal 2016, all members of the Board attended the annual meeting of shareholders.

SHAREHOLDER COMMUNICATIONS TO THE BOARD

Shareholders may contact an individual director, the Board as a group, or a specified Board committee or group, including the
non-employee directors as a group, by mailing correspondence in the following manner:

International Speedway Corporation
c/o Legal Department
One Daytona Blvd.
Daytona Beach, Florida 32114
Attention: Board of Directors

Each communication should specify the applicable addressee or addressees to be contacted as well as the general topic of the
communication. Our Legal Department will initially receive and process communications before forwarding them to the
addressee. All communications from shareholders will be promptly forwarded to the addressee(s).

at www.internationalspeedwaycorporation.com. Nominations must be in writing, addressed to the Secretary, and must be

CODE OF ETHICS

Our Audit Committee has adopted a code of ethics that applies to all of our employees, including our senior financial officers,
our principal executive officer and our principal financial officer. A copy of that code of ethics is available on our website at
www.internationalspeedwaycorporation.com. We intend to satisfy our disclosure obligations regarding any amendment to, or
waiver from, any provision of our code of ethics that applies to any of our senior financial officers by posting that information
on our website, as well as making all public disclosures required by the SEC. At the present time there have been no
amendments or waivers.

September 8, 2017 and November 7, 2017.

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Based upon a review of Forms 3 and 4 and amendments thereto furnished to us during the fiscal year ended
November 30, 2016, Forms 5 and amendments thereto furnished to us with respect to the fiscal year ended November 30, 2016,
and written representations furnished to us, there is no person who, at any time during the fiscal year, was a director, officer, or
beneficial owner of more than ten percent of any class of our securities that failed to file on a timely basis the reports required
by Section 16(a) of the Exchange Act during the fiscal year ended November 30, 2016.

REGISTERED INDEPENDENT PUBLIC ACCOUNTING FIRM

Ernst & Young LLP and its predecessors have served as our auditors since 1966. Representatives of Ernst & Young LLP will be
present at the Annual Meeting of Shareholders with the opportunity to make a statement, if they so desire, and will be available
to respond to appropriate questions from shareholders.

The following table presents fees for all professional services provided by Ernst & Young LLP for the audit of our consolidated
financial statements for the years ended November 30, 2016 and 2015, and fees billed for other services rendered by Ernst &
Young LLP during those periods.

ISC // 2017 INFORMATION STATEMENT // 12

Fee Category

Audit fees (1)
Audit-related fees (2)
Tax fees (3)
All other fees (4)

Fiscal Year

2016
816,142 $
43,500 $
— $
— $

2015
833,284
—
8,150
—

$
$
$
$

(1) Audit fees consisted principally of professional services rendered for the annual integrated audit of our consolidated
financial statements and the effectiveness of our internal control over financial reporting, the review of our quarterly
consolidated financial statements and services that are normally provided by the accountant in connection with statutory
and regulatory filings or engagements.

(2) Audit-related fees consists of professional services rendered for assurance and related services that are reasonably

related to the performance of the audit or review of our financial statements and are not included in Audit Fees above.
There were no such services rendered during fiscal 2015.

(3)

Tax fees consisted principally of professional services rendered for tax compliance and tax advice. There were no such
services rendered during fiscal 2016.

(4)

There were no other fees for products and services that are not disclosed in the previous categories.

AUDIT COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES

The Audit Committee, or one of its members who has been delegated pre-approval authority, considers and has approval
authority over all engagements of the independent auditors. If a decision on an engagement is made by an individual member,
the decision is presented at the next meeting of the Audit Committee. All of the engagements resulting in the fees disclosed
above for fiscal 2016 and 2015 were approved by the Audit Committee prior to the engagement.

ACTION: APPROVAL OF THE 2017 LONG TERM INCENTIVE PLAN

This Information Statement contains a brief summary of the material aspects of the 2017 Long Term Incentive Plan to be
approved by the Board of Directors and shareholders at the annual meeting.

Purpose

The purpose of the 2017 Long Term Incentive Plan is to provide key employees (including officers and directors), consultants
and advisors of the Company with increased financial incentives to make significant and extraordinary contributions to the
long-term performance and growth of the Company, to align the interests of such key employees, consultants and advisors with
the interests of the shareholders, and to facilitate attracting and retaining key employees, consultants and advisors.

Types of Awards & Eligibility

The 2017 Long Term Incentive Plan authorizes the grant of stock options (incentive and non-qualified), stock appreciation
rights (“SARs”), restricted and unrestricted stock, cash awards and Performance Units (as defined in the 2017 Long Term
Incentive Plan) to employees, consultants and advisors of the Company capable of contributing to the Company’s performance.
Incentive Stock Options may be granted only to employees eligible to receive them under the Internal Revenue Code of 1996,
as amended.

Number of Authorized Shares

The Company has reserved an aggregate of 1,500,000 shares (subject to adjustment for stock splits and similar capital changes)
of Class A Common Stock for grants under the 2017 Long Term Incentive Plan.

Administration of the Plan

The Board of Directors has appointed the Board’s Compensation Committee (the “Committee”) to administer the 2017 Long
Term Incentive Plan. Awards under the 2017 Long Term Incentive Plan will contain such terms and conditions not inconsistent
with the 2017 Long Term Incentive Plan as the Committee in its discretion approves. The Committee has discretion to
administer the 2017 Long Term Incentive Plan in the manner which it determines, from time to time, is in the best interest of
the Company. For example, the Committee will fix the terms of stock options, SARs, restricted and unrestricted stock grants

ISC // 2017 INFORMATION STATEMENT // 13

and determine whether, in the case of such options and SARs, they may be exercised immediately or at a later date or dates.

Awards may also be granted subject to conditions relating to continued employment and restrictions on transfer. In addition,

subject to applicable law and certain restrictions set forth in the 2017 Long Term Incentive Plan, the Committee may provide, at

the time an award is made or at any time thereafter, for the acceleration of a participant’s rights or cash settlement upon a

change in control of the Company. The terms and conditions of awards need not be the same for each participant. The foregoing

examples illustrate, but do not limit, the manner in which the Committee may exercise its authority in administering the 2017

Long Term Incentive Plan. In addition, all questions of interpretation of the 2017 Long Term Incentive Plan will be determined

by the Committee.

Approval of the Plan

The Committee approved the 2017 Long Term Incentive Plan on February 2, 2017 by unanimous consent. A copy of the

2017 Long Term Incentive Plan is attached to this Information Statement.

REPORT OF THE AUDIT COMMITTEE

The following is the report of the Audit Committee with respect to the Company’s audited financial statements for the fiscal year

ended November 30, 2016. The information contained in this report shall not be deemed “soliciting material” or otherwise

considered “filed” with the SEC, and such information shall not be incorporated by reference into any future filing under the

Securities Act or the Exchange Act except to the extent the Company specifically incorporates such information by reference of

such filing.

The Audit Committee oversees the Company’s financial reporting process on behalf of the Board of Directors. The Company’s

management has the primary responsibility for the financial statements, for maintaining effective internal control over financial

reporting, and for assessing the effectiveness of internal control over financial reporting. In fulfilling its oversight

responsibilities, the Audit Committee reviewed and discussed the audited consolidated financial statements and the related

schedules in the Annual Report with Company management, including a discussion of the quality, not just the acceptability, of

the accounting principles; the reasonableness of significant judgments; and the clarity of disclosures in the financial statements.

The Audit Committee is governed by a charter. A copy of the charter is available on the Company’s website at

www.internationalspeedwaycorporation.com. The Audit Committee performs a review and reassessment of its charter annually.

The charter was last amended effective November 9, 2016. The Audit Committee held six meetings during fiscal year 2016.

The Audit Committee consists of four members: Ms. Renda and Messrs. Aiello, Brown and Graves. The Board of Directors has

determined that Ms. Renda and Messrs. Aiello and Brown are qualified as audit committee financial experts (as defined by the

SEC) and that all of the members of the Audit Committee are “independent” (as independence is presently defined in Rule

4200(a)(15) of the NASDAQ listing standards and Rule 10A-3 of the Securities Exchange Act of 1934).

The meetings of the Audit Committee are designed to facilitate and encourage communication among the Audit Committee, the

Company, the Company’s internal audit function and the Company’s independent auditor. The Audit Committee discussed with

the Company’s internal auditors and independent auditor the overall scope and plans for their respective audits. The Audit

Committee meets with the internal auditors and the independent auditor, with and without management present, to discuss the

results of their examinations; their evaluations of the Company’s internal control including internal control over financial

reporting; and the overall quality of the Company’s financial reporting.

The Audit Committee recognizes the importance of maintaining the independence of the Company’s Independent Auditor, both

in fact and appearance. Each year, the Audit Committee evaluates the qualifications, performance and independence of the

Company’s Independent Auditor and determines whether to re-engage the current Independent Auditor. In doing so, the Audit

Committee considers the quality and efficiency of the services provided by the auditors, the auditors’ capabilities and the

auditors’ technical expertise and knowledge of the Company’s operations and industry. Based on this evaluation, the Audit

Committee has retained Ernst & Young LLP (“EY”) as the Company’s Independent Auditor for fiscal year 2016. EY has been

the Independent Auditor for the Company since 1966.

The Audit Committee reviewed with the independent auditor, which is responsible for expressing an opinion on the conformity

of those audited consolidated financial statements and related schedules with US generally accepted accounting principles, its

judgments as to the quality, not just the acceptability, of the Company’s accounting principles and such other matters as are

required to be discussed with the Audit Committee by the standards of the Public Company Accounting Oversight Board

14 | Page

Fee Category

Audit fees (1)

Audit-related fees (2)

Tax fees (3)

All other fees (4)

(1) Audit fees consisted principally of professional services rendered for the annual integrated audit of our consolidated

financial statements and the effectiveness of our internal control over financial reporting, the review of our quarterly

and regulatory filings or engagements.

(2) Audit-related fees consists of professional services rendered for assurance and related services that are reasonably

related to the performance of the audit or review of our financial statements and are not included in Audit Fees above.

There were no such services rendered during fiscal 2015.

(3)

Tax fees consisted principally of professional services rendered for tax compliance and tax advice. There were no such

services rendered during fiscal 2016.

(4)

There were no other fees for products and services that are not disclosed in the previous categories.

AUDIT COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES

The Audit Committee, or one of its members who has been delegated pre-approval authority, considers and has approval

authority over all engagements of the independent auditors. If a decision on an engagement is made by an individual member,

the decision is presented at the next meeting of the Audit Committee. All of the engagements resulting in the fees disclosed

above for fiscal 2016 and 2015 were approved by the Audit Committee prior to the engagement.

ACTION: APPROVAL OF THE 2017 LONG TERM INCENTIVE PLAN

This Information Statement contains a brief summary of the material aspects of the 2017 Long Term Incentive Plan to be

approved by the Board of Directors and shareholders at the annual meeting.

Purpose

The purpose of the 2017 Long Term Incentive Plan is to provide key employees (including officers and directors), consultants

and advisors of the Company with increased financial incentives to make significant and extraordinary contributions to the

long-term performance and growth of the Company, to align the interests of such key employees, consultants and advisors with

the interests of the shareholders, and to facilitate attracting and retaining key employees, consultants and advisors.

Types of Awards & Eligibility

The 2017 Long Term Incentive Plan authorizes the grant of stock options (incentive and non-qualified), stock appreciation

rights (“SARs”), restricted and unrestricted stock, cash awards and Performance Units (as defined in the 2017 Long Term

Incentive Plan) to employees, consultants and advisors of the Company capable of contributing to the Company’s performance.

Incentive Stock Options may be granted only to employees eligible to receive them under the Internal Revenue Code of 1996,

as amended.

Number of Authorized Shares

Administration of the Plan

The Company has reserved an aggregate of 1,500,000 shares (subject to adjustment for stock splits and similar capital changes)

of Class A Common Stock for grants under the 2017 Long Term Incentive Plan.

The Board of Directors has appointed the Board’s Compensation Committee (the “Committee”) to administer the 2017 Long

Term Incentive Plan. Awards under the 2017 Long Term Incentive Plan will contain such terms and conditions not inconsistent

with the 2017 Long Term Incentive Plan as the Committee in its discretion approves. The Committee has discretion to

administer the 2017 Long Term Incentive Plan in the manner which it determines, from time to time, is in the best interest of

the Company. For example, the Committee will fix the terms of stock options, SARs, restricted and unrestricted stock grants

Fiscal Year

2016

816,142 $

43,500 $

— $

2015

833,284

—

8,150

—

and determine whether, in the case of such options and SARs, they may be exercised immediately or at a later date or dates.
Awards may also be granted subject to conditions relating to continued employment and restrictions on transfer. In addition,
subject to applicable law and certain restrictions set forth in the 2017 Long Term Incentive Plan, the Committee may provide, at
the time an award is made or at any time thereafter, for the acceleration of a participant’s rights or cash settlement upon a
change in control of the Company. The terms and conditions of awards need not be the same for each participant. The foregoing
examples illustrate, but do not limit, the manner in which the Committee may exercise its authority in administering the 2017
Long Term Incentive Plan. In addition, all questions of interpretation of the 2017 Long Term Incentive Plan will be determined
by the Committee.

consolidated financial statements and services that are normally provided by the accountant in connection with statutory

Approval of the Plan

The Committee approved the 2017 Long Term Incentive Plan on February 2, 2017 by unanimous consent. A copy of the
2017 Long Term Incentive Plan is attached to this Information Statement.

REPORT OF THE AUDIT COMMITTEE

The following is the report of the Audit Committee with respect to the Company’s audited financial statements for the fiscal year
ended November 30, 2016. The information contained in this report shall not be deemed “soliciting material” or otherwise
considered “filed” with the SEC, and such information shall not be incorporated by reference into any future filing under the
Securities Act or the Exchange Act except to the extent the Company specifically incorporates such information by reference of
such filing.

The Audit Committee oversees the Company’s financial reporting process on behalf of the Board of Directors. The Company’s
management has the primary responsibility for the financial statements, for maintaining effective internal control over financial
reporting, and for assessing the effectiveness of internal control over financial reporting. In fulfilling its oversight
responsibilities, the Audit Committee reviewed and discussed the audited consolidated financial statements and the related
schedules in the Annual Report with Company management, including a discussion of the quality, not just the acceptability, of
the accounting principles; the reasonableness of significant judgments; and the clarity of disclosures in the financial statements.

The Audit Committee is governed by a charter. A copy of the charter is available on the Company’s website at
www.internationalspeedwaycorporation.com. The Audit Committee performs a review and reassessment of its charter annually.
The charter was last amended effective November 9, 2016. The Audit Committee held six meetings during fiscal year 2016.
The Audit Committee consists of four members: Ms. Renda and Messrs. Aiello, Brown and Graves. The Board of Directors has
determined that Ms. Renda and Messrs. Aiello and Brown are qualified as audit committee financial experts (as defined by the
SEC) and that all of the members of the Audit Committee are “independent” (as independence is presently defined in Rule
4200(a)(15) of the NASDAQ listing standards and Rule 10A-3 of the Securities Exchange Act of 1934).

The meetings of the Audit Committee are designed to facilitate and encourage communication among the Audit Committee, the
Company, the Company’s internal audit function and the Company’s independent auditor. The Audit Committee discussed with
the Company’s internal auditors and independent auditor the overall scope and plans for their respective audits. The Audit
Committee meets with the internal auditors and the independent auditor, with and without management present, to discuss the
results of their examinations; their evaluations of the Company’s internal control including internal control over financial
reporting; and the overall quality of the Company’s financial reporting.

The Audit Committee recognizes the importance of maintaining the independence of the Company’s Independent Auditor, both
in fact and appearance. Each year, the Audit Committee evaluates the qualifications, performance and independence of the
Company’s Independent Auditor and determines whether to re-engage the current Independent Auditor. In doing so, the Audit
Committee considers the quality and efficiency of the services provided by the auditors, the auditors’ capabilities and the
auditors’ technical expertise and knowledge of the Company’s operations and industry. Based on this evaluation, the Audit
Committee has retained Ernst & Young LLP (“EY”) as the Company’s Independent Auditor for fiscal year 2016. EY has been
the Independent Auditor for the Company since 1966.

The Audit Committee reviewed with the independent auditor, which is responsible for expressing an opinion on the conformity
of those audited consolidated financial statements and related schedules with US generally accepted accounting principles, its
judgments as to the quality, not just the acceptability, of the Company’s accounting principles and such other matters as are
required to be discussed with the Audit Committee by the standards of the Public Company Accounting Oversight Board

ISC // 2017 INFORMATION STATEMENT // 14

14 | Page

(United States) (PCAOB), including PCAOB Auditing Standard No. 16, Communications With Audit Committees, the rules of
the Securities and Exchange Commission, and other applicable regulations. In addition, the Audit Committee has discussed
with the independent auditor the firm’s independence from Company management and the Company, including the matters in
the letter from the firm required by PCAOB Rule 3526, Communication with Audit Committees Concerning Independence, and
considered the compatibility of non-audit services with the independent auditor’s independence.

The Audit Committee also reviewed and discussed together with management and the independent auditor the Company’s
audited consolidated financial statements for the fiscal year ended November 30, 2016, and the results of management’s
assessment of the effectiveness of the Company’s internal control over financial reporting and the independent auditor’s audit
of internal control over financial reporting.

In reliance on the reviews and discussions referred to above, the Audit Committee recommended to the Board of Directors, and
the Board has approved, that the audited consolidated financial statements and related schedules and management’s assessment
of the effectiveness of the Company’s internal control over financial reporting be included in the Annual Report on Form 10-K
for the fiscal year ended November 30, 2016, filed by the Company with the Securities and Exchange Commission.

Larry Aiello, Jr., Audit Committee Chair
J. Hyatt Brown, Audit Committee Member
William P. Graves, Audit Committee Member
Larree M. Renda, Audit Committee Member

EXECUTIVE COMPENSATION

COMPENSATION DISCUSSION AND ANALYSIS

Overview and Objectives of Compensation Program

The goal of the compensation programs for our named executive officers is to retain and reward leaders who create long-term
value for our shareholders. This goal affects the compensation elements we use and our compensation decisions.

Other Compensation

We have designed and implemented our compensation programs for our named executives to:

•

reward them for financial and operating performance;

align their interests with those of our shareholders; and

encourage them to remain with the Company.

Most of our compensation elements simultaneously fulfill one or more of our performance, alignment and retention objectives.
These elements consist of:

•

salary and annual discretionary bonus;

• non-equity (cash) incentive compensation based upon annually determined performance criteria;

•

equity incentive compensation based upon annually determined performance criteria combined with a time based
vesting schedule; and

• other benefits.

In deciding on the type and amount of compensation for each executive, we focus almost exclusively on each executive’s
current pay, rather than historic pay. We combine the compensation elements for each executive in a manner we believe
optimizes the value for our shareholders and supports the goals of our compensation programs.

We provide a combination of pay elements with the goal of aligning executive incentives with shareholder value. The three
major elements of our executive compensation — base salary, annual cash awards (which include bonuses and non-equity
incentives) and long-term equity incentives — simultaneously fulfill one or more of our performance, alignment and retention
objectives.

The following summarizes the compensation elements we use as tools to reward, retain and align the performance expectations
of our named executives.

ISC // 2017 INFORMATION STATEMENT // 15

Base Salary, Non-Equity Incentives and Cash Bonuses

Base salaries for our named executives are designed to provide competitive levels of compensation dependent on the scope of

their responsibilities, their leadership skills and values, and their performance. For each named executive officer, we pay annual

non-equity incentives each February for the prior year’s performance based upon management’s evaluation and the

Compensation Committee’s qualitative assessment of the executives’ performance. This short term compensation element is in

line with the stated goal of our compensation programs, namely retaining and rewarding leaders who create long-term value for

our shareholders. The incentives were determined using the criteria approved by the Compensation Committee for

performance against normalized corporate financial performance measures based on budget of revenue; operating margin based

on budget, and capital allocation based on budget. For fiscal 2016, the corporate financial measurements for these non-equity

incentives were weighted as follows: 1) revenue based on budget as 34 percent, 2) operating margin based on budget as 33

percent and 3) capital allocation based on budget as 33 percent.

In addition to amounts paid pursuant to our non-equity incentive plan, the Compensation Committee retains discretion to award

cash bonuses where performance may warrant. We also award a small annual holiday cash bonus based on seniority.

Long —Term Compensation — 2006 Long Term Incentive Plan & 2017 Long Term Incentive Plan

We emphasize long-term variable compensation at the senior executive levels because of our desire to reward effective long-

term management decision making and our desire to retain executive officers who have the potential to impact both our short-

term and long-term profitability. We believe that providing Restricted Stock Units (RSUs) is an effective means to focus our

named executives on delivering long-term value to our shareholders. RSUs allow us to reward and retain the named executives

by offering them the opportunity to receive shares of our stock on the date the restrictions lapse so long as they continue to be

employed by the Company. Our 2006 Long Term Incentive Plan expired during 2016. Our 2017 Long Term Incentive Plan has

been approved by the Committee and is subject to Board of Directors and shareholder approval at this annual meeting.

We provide our named executive officers with other benefits, reflected in the All Other Compensation column in the Summary

Compensation Table, that we believe are reasonable, competitive and consistent with our overall compensation program and

goals. The costs of these benefits constitute only a small percentage of each named executive officer’s total compensation, and

include premiums paid on life insurance policies and Company contributions to a 401(k) plan. The named executive officers

also participate in the standard health insurance benefits offered to all employees. We also provide the use of a car provided by

the Company and comprehensive physical examinations every other year. The named executive officers are encouraged to

attend events at the motorsports entertainment facilities operated by the Company as part of their job function and permitted to

bring a guest with them to these events at no charge to the executive.

Compensation Implementation

Determination of Compensation

As part of our total overall compensation plan, the compensation for our named executive officers depends on the scope of their

responsibilities, their leadership skills and values, and their individual performance, as well as the Company's performance.

Decisions regarding salary increases are affected by the named executives’ current salary and the amounts paid within and

outside the Company. Base salary rates are reviewed on annual basis and adjusted when appropriate by the Compensation

Committee based upon changes in market conditions and the Company’s performance factors. When making decisions

regarding compensation, we focus almost exclusively on each executive’s current pay, rather than historic pay.

The Compensation Committee exercises its discretion in initially making compensation decisions, after reviewing the

performance of the Company and evaluating an executive’s prospects and performance during the year against established

goals, operational performance, business responsibilities, and current compensation arrangements. The following is a summary

of key considerations affecting the determination of compensation for the named executives:

Emphasis on Consistent Performance. Our compensation program provides a greater pay opportunity for executives who

demonstrate superior performance for sustained periods of time. Each of our named officers has served us for many years,

(United States) (PCAOB), including PCAOB Auditing Standard No. 16, Communications With Audit Committees, the rules of

the Securities and Exchange Commission, and other applicable regulations. In addition, the Audit Committee has discussed

with the independent auditor the firm’s independence from Company management and the Company, including the matters in

the letter from the firm required by PCAOB Rule 3526, Communication with Audit Committees Concerning Independence, and

considered the compatibility of non-audit services with the independent auditor’s independence.

The Audit Committee also reviewed and discussed together with management and the independent auditor the Company’s

audited consolidated financial statements for the fiscal year ended November 30, 2016, and the results of management’s

assessment of the effectiveness of the Company’s internal control over financial reporting and the independent auditor’s audit

of internal control over financial reporting.

In reliance on the reviews and discussions referred to above, the Audit Committee recommended to the Board of Directors, and

the Board has approved, that the audited consolidated financial statements and related schedules and management’s assessment

of the effectiveness of the Company’s internal control over financial reporting be included in the Annual Report on Form 10-K

for the fiscal year ended November 30, 2016, filed by the Company with the Securities and Exchange Commission.

Larry Aiello, Jr., Audit Committee Chair

J. Hyatt Brown, Audit Committee Member

William P. Graves, Audit Committee Member

Larree M. Renda, Audit Committee Member

EXECUTIVE COMPENSATION

COMPENSATION DISCUSSION AND ANALYSIS

Overview and Objectives of Compensation Program

The goal of the compensation programs for our named executive officers is to retain and reward leaders who create long-term

value for our shareholders. This goal affects the compensation elements we use and our compensation decisions.

We have designed and implemented our compensation programs for our named executives to:

Most of our compensation elements simultaneously fulfill one or more of our performance, alignment and retention objectives.

•

reward them for financial and operating performance;

align their interests with those of our shareholders; and

encourage them to remain with the Company.

These elements consist of:

•

salary and annual discretionary bonus;

vesting schedule; and

• other benefits.

In deciding on the type and amount of compensation for each executive, we focus almost exclusively on each executive’s

current pay, rather than historic pay. We combine the compensation elements for each executive in a manner we believe

optimizes the value for our shareholders and supports the goals of our compensation programs.

We provide a combination of pay elements with the goal of aligning executive incentives with shareholder value. The three

major elements of our executive compensation — base salary, annual cash awards (which include bonuses and non-equity

incentives) and long-term equity incentives — simultaneously fulfill one or more of our performance, alignment and retention

The following summarizes the compensation elements we use as tools to reward, retain and align the performance expectations

objectives.

of our named executives.

Base Salary, Non-Equity Incentives and Cash Bonuses

Base salaries for our named executives are designed to provide competitive levels of compensation dependent on the scope of
their responsibilities, their leadership skills and values, and their performance. For each named executive officer, we pay annual
non-equity incentives each February for the prior year’s performance based upon management’s evaluation and the
Compensation Committee’s qualitative assessment of the executives’ performance. This short term compensation element is in
line with the stated goal of our compensation programs, namely retaining and rewarding leaders who create long-term value for
our shareholders. The incentives were determined using the criteria approved by the Compensation Committee for
performance against normalized corporate financial performance measures based on budget of revenue; operating margin based
on budget, and capital allocation based on budget. For fiscal 2016, the corporate financial measurements for these non-equity
incentives were weighted as follows: 1) revenue based on budget as 34 percent, 2) operating margin based on budget as 33
percent and 3) capital allocation based on budget as 33 percent.

In addition to amounts paid pursuant to our non-equity incentive plan, the Compensation Committee retains discretion to award
cash bonuses where performance may warrant. We also award a small annual holiday cash bonus based on seniority.

Long —Term Compensation — 2006 Long Term Incentive Plan & 2017 Long Term Incentive Plan

We emphasize long-term variable compensation at the senior executive levels because of our desire to reward effective long-
term management decision making and our desire to retain executive officers who have the potential to impact both our short-
term and long-term profitability. We believe that providing Restricted Stock Units (RSUs) is an effective means to focus our
named executives on delivering long-term value to our shareholders. RSUs allow us to reward and retain the named executives
by offering them the opportunity to receive shares of our stock on the date the restrictions lapse so long as they continue to be
employed by the Company. Our 2006 Long Term Incentive Plan expired during 2016. Our 2017 Long Term Incentive Plan has
been approved by the Committee and is subject to Board of Directors and shareholder approval at this annual meeting.

Other Compensation

We provide our named executive officers with other benefits, reflected in the All Other Compensation column in the Summary
Compensation Table, that we believe are reasonable, competitive and consistent with our overall compensation program and
goals. The costs of these benefits constitute only a small percentage of each named executive officer’s total compensation, and
include premiums paid on life insurance policies and Company contributions to a 401(k) plan. The named executive officers
also participate in the standard health insurance benefits offered to all employees. We also provide the use of a car provided by
the Company and comprehensive physical examinations every other year. The named executive officers are encouraged to
attend events at the motorsports entertainment facilities operated by the Company as part of their job function and permitted to
bring a guest with them to these events at no charge to the executive.

• non-equity (cash) incentive compensation based upon annually determined performance criteria;

Compensation Implementation

•

equity incentive compensation based upon annually determined performance criteria combined with a time based

Determination of Compensation

As part of our total overall compensation plan, the compensation for our named executive officers depends on the scope of their
responsibilities, their leadership skills and values, and their individual performance, as well as the Company's performance.
Decisions regarding salary increases are affected by the named executives’ current salary and the amounts paid within and
outside the Company. Base salary rates are reviewed on annual basis and adjusted when appropriate by the Compensation
Committee based upon changes in market conditions and the Company’s performance factors. When making decisions
regarding compensation, we focus almost exclusively on each executive’s current pay, rather than historic pay.

The Compensation Committee exercises its discretion in initially making compensation decisions, after reviewing the
performance of the Company and evaluating an executive’s prospects and performance during the year against established
goals, operational performance, business responsibilities, and current compensation arrangements. The following is a summary
of key considerations affecting the determination of compensation for the named executives:

Emphasis on Consistent Performance. Our compensation program provides a greater pay opportunity for executives who
demonstrate superior performance for sustained periods of time. Each of our named officers has served us for many years,

ISC // 2017 INFORMATION STATEMENT // 16

during which she/he has held diverse positions of increasing responsibility. The amount of their pay reflects their consistent
contribution with the expectation of continued contribution to our success. Our emphasis on performance affects our
discretionary annual cash bonus, non-equity incentives and equity incentive compensation. We incorporate current year and
expected performance into our compensation decisions and percentage increases or decreases in the amount of annual
compensation. For fiscal 2016, the criteria to determine overall compensation remained consistent with prior years and our
stated philosophy.

Discretion and Judgment. We generally adhere to our historic practices and formulas in determining the amount and mix of
compensation elements. Because of our reliance on the formulaic achievement of annual Company financial goals in
determining the amount of plan-based compensation, short term changes in business performance can have a significant impact
on the compensation of the named executive officers. We consider competitive market compensation paid by other companies
of similar size and market capitalization, but we do not attempt to maintain a certain target percentile within a peer group or
otherwise rely on data of peer companies to determine executive compensation.

We do not have any specific apportionment goal with respect to the mix between equity incentive awards and cash payments.
We generally attempt to assess an executive’s total pay opportunities and whether we have provided the appropriate incentives
to accomplish our compensation objectives. Our mix of compensation elements is designed to reward recent results and
performance through a combination of non-equity (cash) and equity incentive awards. We also seek to balance compensation
elements that are based on financial, operational and strategic metrics. We believe the most important indicator of whether our
compensation objectives are being met is our ability to motivate our named executives to deliver superior performance and
retain them.

Significance of Company Results. The Compensation Committee primarily evaluates the named executives’ contributions to the
Company’s overall performance rather than focusing only on their individual function. The Compensation Committee believes
that the named executives share the responsibility to support the goals and performance of the Company, as the executive
members of the Company’s leadership team. While this compensation philosophy influences all of the committee’s
compensation decisions, it has the biggest impact on annual non-equity incentive awards and, generally, discretionary bonuses.

Consideration of Risk. Our compensation programs are discretionary, balanced and focused on rewarding performance for both
current year and long-term strategy. Under this structure, a greater amount of compensation can be achieved through consistent
superior performance over sustained periods of time. Long-term incentive plan compensation in the form of restricted stock is
restricted to multiple vesting years with 50 percent vesting in three years and the remainder vesting in five years. We believe
this provides strong incentives for our named executive officers to manage the Company for the long term while avoiding
excessive risk-taking in the short term. Goals and objectives reflect a balanced mix of quantitative and qualitative performance
measures to avoid excessive weight on a single performance measure. The elements of compensation are mixed among current
non-equity (cash) payments and equity awards. With limited exceptions, the Compensation Committee retains the ability to
adjust compensation for quality of performance and adherence to our values. The Company does not believe that its
compensation policies and practices are reasonably likely to have a material adverse effect on the Company.

No Employment and Severance Agreements. None of our named executive officers have employment or change-of-control
agreements nor do they have pre-negotiated severance agreements in place. Our named executive officers serve at the will of
the Board, which enables the Company to terminate their employment with discretion as to the terms of any severance
arrangement. This is consistent with our performance-based employment and compensation philosophy. Of course, the fact that
our Chairman of the Board and our Vice Chairwoman and Chief Executive Officer are members of the France Family Group,
which has the ability to elect the entire Board, does impact such discretion in their case. In addition, the time vesting of our
plan–based restricted stock awards help retain our executives by subjecting to forfeiture any unvested shares if they leave the
Company prior to retirement. There are change-of-control provisions associated with each award of such plan-based restricted
stock awards. Change of control is defined in the individual participant plans for all participants in the restricted stock incentive
program. A copy of the 2006 Long Term Incentive Plan is on file with the SEC in connection with our Form S-8 registration
statement, filed on February 11, 2010.

A copy of the 2017 Long Term Incentive Plan is attached to this Information Statement.

ISC // 2017 INFORMATION STATEMENT // 17

Roles of Compensation Committee and Named Executives

Executive officer compensation is overseen by the Compensation Committee of the Board of Directors, which is composed

entirely of independent directors, pursuant to its charter. A copy of the charter may be viewed on the Company’s website at

www.internationalspeedwaycorporation.com.

Prior to the beginning of each fiscal year the Compensation Committee establishes a total pool of dollars to be used for

increases in annual salary compensation for all of our employees, including all of the named executive officers. In setting this

total pool of dollars the members of the Compensation Committee consider a variety of factors, including, but not limited to,

historic and projected earnings per share, anticipated revenue growth, established salary ranges and market conditions. The

committee members then use their collective business judgment to establish the total pool of dollars for increases in annual

salary compensation.

Under the direction of the CEO, the proposed salaries, individual performance goals and targeted bonuses for each of the

named executive officers other than the CEO are presented to the Compensation Committee which reviews and approves them.

The salary of the CEO is then separately considered and approved by the Compensation Committee. Although no particular

weighting of the factors or formula is used, the Committee considers (1) Company and individual performance as measured

against management goals approved by the Board of Directors, (2) personal performance in support of the Company’s goals as

measured by annual evaluation criteria, and (3) intangible factors and criteria such as payments by competitors for similar

positions and market movement.

Each of the named executive officers is assigned a target non-equity incentive opportunity based on corporate and personal

goals for the year. The actual non-equity incentive for each named executive officer will range from 0 percent to 150 percent of

the target depending upon results of corporate performance and personal performance during the year. The 2016 fiscal year

corporate financial measurements consist of three components which are weighted as follows: 1) revenue based on budget as

34 percent, 2) operating margin based on budget as 33 percent and 3) capital allocation based on budget as 33 percent. Both the

targets and the actual performance are determined on a normalized basis and may vary from year to year as established by the

Compensation Committee.

For fiscal 2016, our named executive officers are: Ms. Lesa France Kennedy, Chief Executive Officer; Mr. Daniel W. Houser,

Executive Vice President and Chief Financial Officer; Mr. John R. Saunders, President; Mr. Joel S. Chitwood, Executive Vice

President and Chief Operating Officer; and Mr. Daryl Q. Wolfe, Executive Vice President and Chief Marketing Officer.

The Compensation Committee reviews and approves the recommended corporate performance goals and objectives which are

used in establishing plan-based incentive compensation for all of the named executive officers.

Compensation Consultants

Neither the Company nor the Compensation Committee has any contractual arrangement with any compensation consultant

who has a role in determining or recommending the amount or form of senior executive or director compensation. Our named

executive officers have not participated in the selection of any particular compensation consultant. The Company obtains

market intelligence on compensation trends from a variety of sources through our human resources personnel, with the

oversight of the Committee. Each year we participate in compensation surveys conducted by well-known compensation

consultants as a means of understanding external market practices. Except for the foregoing, we have not used the services of

any other compensation consultant in matters affecting senior executive or director compensation. In the future, either the

Company or the Compensation Committee may engage or seek the advice of compensation consultants.

Equity Grant Practices

The only form of equity compensation currently provided to our named executive officers is awards of shares of restricted

stock. If the 2017 Long Term Incentive Plan is approved by the shareholders, awards of restricted stock for 2017 based on

2016 performance will be made under the 2017 Long Term Incentive Plan in a similar fashion as those made in past years

pursuant to the 2006 Long Term Incentive Plan. For each fiscal year the named executive officers are provided an opportunity

to be awarded shares of restricted stock based upon the same normalized corporate financial performance measures established

for non-equity incentive payments, as discussed above. The targeted number of shares is fixed by the Compensation Committee

and represents a specified percentage of the named executive officer’s annual base salary based upon the average price of our

during which she/he has held diverse positions of increasing responsibility. The amount of their pay reflects their consistent

contribution with the expectation of continued contribution to our success. Our emphasis on performance affects our

discretionary annual cash bonus, non-equity incentives and equity incentive compensation. We incorporate current year and

expected performance into our compensation decisions and percentage increases or decreases in the amount of annual

compensation. For fiscal 2016, the criteria to determine overall compensation remained consistent with prior years and our

stated philosophy.

Discretion and Judgment. We generally adhere to our historic practices and formulas in determining the amount and mix of

compensation elements. Because of our reliance on the formulaic achievement of annual Company financial goals in

determining the amount of plan-based compensation, short term changes in business performance can have a significant impact

on the compensation of the named executive officers. We consider competitive market compensation paid by other companies

of similar size and market capitalization, but we do not attempt to maintain a certain target percentile within a peer group or

otherwise rely on data of peer companies to determine executive compensation.

We do not have any specific apportionment goal with respect to the mix between equity incentive awards and cash payments.

We generally attempt to assess an executive’s total pay opportunities and whether we have provided the appropriate incentives

to accomplish our compensation objectives. Our mix of compensation elements is designed to reward recent results and

performance through a combination of non-equity (cash) and equity incentive awards. We also seek to balance compensation

elements that are based on financial, operational and strategic metrics. We believe the most important indicator of whether our

compensation objectives are being met is our ability to motivate our named executives to deliver superior performance and

retain them.

Significance of Company Results. The Compensation Committee primarily evaluates the named executives’ contributions to the

Company’s overall performance rather than focusing only on their individual function. The Compensation Committee believes

that the named executives share the responsibility to support the goals and performance of the Company, as the executive

members of the Company’s leadership team. While this compensation philosophy influences all of the committee’s

compensation decisions, it has the biggest impact on annual non-equity incentive awards and, generally, discretionary bonuses.

Consideration of Risk. Our compensation programs are discretionary, balanced and focused on rewarding performance for both

current year and long-term strategy. Under this structure, a greater amount of compensation can be achieved through consistent

superior performance over sustained periods of time. Long-term incentive plan compensation in the form of restricted stock is

restricted to multiple vesting years with 50 percent vesting in three years and the remainder vesting in five years. We believe

this provides strong incentives for our named executive officers to manage the Company for the long term while avoiding

excessive risk-taking in the short term. Goals and objectives reflect a balanced mix of quantitative and qualitative performance

measures to avoid excessive weight on a single performance measure. The elements of compensation are mixed among current

non-equity (cash) payments and equity awards. With limited exceptions, the Compensation Committee retains the ability to

adjust compensation for quality of performance and adherence to our values. The Company does not believe that its

compensation policies and practices are reasonably likely to have a material adverse effect on the Company.

No Employment and Severance Agreements. None of our named executive officers have employment or change-of-control

agreements nor do they have pre-negotiated severance agreements in place. Our named executive officers serve at the will of

the Board, which enables the Company to terminate their employment with discretion as to the terms of any severance

arrangement. This is consistent with our performance-based employment and compensation philosophy. Of course, the fact that

our Chairman of the Board and our Vice Chairwoman and Chief Executive Officer are members of the France Family Group,

which has the ability to elect the entire Board, does impact such discretion in their case. In addition, the time vesting of our

plan–based restricted stock awards help retain our executives by subjecting to forfeiture any unvested shares if they leave the

Company prior to retirement. There are change-of-control provisions associated with each award of such plan-based restricted

stock awards. Change of control is defined in the individual participant plans for all participants in the restricted stock incentive

program. A copy of the 2006 Long Term Incentive Plan is on file with the SEC in connection with our Form S-8 registration

statement, filed on February 11, 2010.

A copy of the 2017 Long Term Incentive Plan is attached to this Information Statement.

Roles of Compensation Committee and Named Executives

Executive officer compensation is overseen by the Compensation Committee of the Board of Directors, which is composed
entirely of independent directors, pursuant to its charter. A copy of the charter may be viewed on the Company’s website at
www.internationalspeedwaycorporation.com.

Prior to the beginning of each fiscal year the Compensation Committee establishes a total pool of dollars to be used for
increases in annual salary compensation for all of our employees, including all of the named executive officers. In setting this
total pool of dollars the members of the Compensation Committee consider a variety of factors, including, but not limited to,
historic and projected earnings per share, anticipated revenue growth, established salary ranges and market conditions. The
committee members then use their collective business judgment to establish the total pool of dollars for increases in annual
salary compensation.

Under the direction of the CEO, the proposed salaries, individual performance goals and targeted bonuses for each of the
named executive officers other than the CEO are presented to the Compensation Committee which reviews and approves them.
The salary of the CEO is then separately considered and approved by the Compensation Committee. Although no particular
weighting of the factors or formula is used, the Committee considers (1) Company and individual performance as measured
against management goals approved by the Board of Directors, (2) personal performance in support of the Company’s goals as
measured by annual evaluation criteria, and (3) intangible factors and criteria such as payments by competitors for similar
positions and market movement.

Each of the named executive officers is assigned a target non-equity incentive opportunity based on corporate and personal
goals for the year. The actual non-equity incentive for each named executive officer will range from 0 percent to 150 percent of
the target depending upon results of corporate performance and personal performance during the year. The 2016 fiscal year
corporate financial measurements consist of three components which are weighted as follows: 1) revenue based on budget as
34 percent, 2) operating margin based on budget as 33 percent and 3) capital allocation based on budget as 33 percent. Both the
targets and the actual performance are determined on a normalized basis and may vary from year to year as established by the
Compensation Committee.

For fiscal 2016, our named executive officers are: Ms. Lesa France Kennedy, Chief Executive Officer; Mr. Daniel W. Houser,
Executive Vice President and Chief Financial Officer; Mr. John R. Saunders, President; Mr. Joel S. Chitwood, Executive Vice
President and Chief Operating Officer; and Mr. Daryl Q. Wolfe, Executive Vice President and Chief Marketing Officer.

The Compensation Committee reviews and approves the recommended corporate performance goals and objectives which are
used in establishing plan-based incentive compensation for all of the named executive officers.

Compensation Consultants

Neither the Company nor the Compensation Committee has any contractual arrangement with any compensation consultant
who has a role in determining or recommending the amount or form of senior executive or director compensation. Our named
executive officers have not participated in the selection of any particular compensation consultant. The Company obtains
market intelligence on compensation trends from a variety of sources through our human resources personnel, with the
oversight of the Committee. Each year we participate in compensation surveys conducted by well-known compensation
consultants as a means of understanding external market practices. Except for the foregoing, we have not used the services of
any other compensation consultant in matters affecting senior executive or director compensation. In the future, either the
Company or the Compensation Committee may engage or seek the advice of compensation consultants.

Equity Grant Practices

The only form of equity compensation currently provided to our named executive officers is awards of shares of restricted
stock. If the 2017 Long Term Incentive Plan is approved by the shareholders, awards of restricted stock for 2017 based on
2016 performance will be made under the 2017 Long Term Incentive Plan in a similar fashion as those made in past years
pursuant to the 2006 Long Term Incentive Plan. For each fiscal year the named executive officers are provided an opportunity
to be awarded shares of restricted stock based upon the same normalized corporate financial performance measures established
for non-equity incentive payments, as discussed above. The targeted number of shares is fixed by the Compensation Committee
and represents a specified percentage of the named executive officer’s annual base salary based upon the average price of our

ISC // 2017 INFORMATION STATEMENT // 18

publicly traded shares during the fiscal year prior to the establishment of the share target. This targeted share award amount is
communicated to the named executive officers during the second quarter of our fiscal year. Upon completion of the fiscal year
and the financial audit, our normalized performance against the financial performance measures is evaluated, a percentage of
the targeted award to be actually awarded is determined, reviewed and approved by the Compensation Committee and the
restricted shares are issued in the name of the named executive officers on May 1 following the completion of the fiscal year.
The restricted shares then vest over time, with 50 percent vesting three years after issuance and the remaining 50 percent
vesting five years after issuance. Prior to vesting the recipient may vote the shares and receive dividends on the restricted
shares as granted. If employment ends prior to the expiration of the vesting period due to a change of control or for reasons
acceptable to the Compensation Committee (death, disability, retirement, etc.) all or a portion of the unvested restricted shares
may be allowed to vest. Termination of employment for any other reason will result in forfeiture of all unvested shares. The
timing of calculations of opportunities, amounts, awards and vesting dates are made solely for administrative efficiency and
without regard to earnings or other major announcements by the Company. There are change-of-control provisions associated
with each award of restricted shares. Change of control is defined in the individual participant plans for all participants in the
restricted stock incentive program. A copy of the 2017 Long Term Incentive Plan is attached to this Information Statement.

Share Ownership Guidelines

The Company has no equity security ownership guidelines or requirements for the named executive officers. We have share
ownership guidelines for our non-employee directors, as more fully described below in the “Compensation of Directors”
section.

Tax Deductibility of Compensation

Section 162(m) of the Internal Revenue Code of 1986, as amended, imposes a $1.0 million limit on the amount that a public
company may deduct for compensation paid to the company’s CEO or any of the Company’s four other most highly
compensated executive officers who are employed as of the end of the year. The Committee considers tax implications in
determining executive pay, and generally endeavors to provide compensation that is tax deductible under Internal Revenue
Code Section 162(m). The Committee, however, reserves the right to forego any or all of the tax deduction if it believes it to
be in the best interest of the Company and its shareholders.

The amounts shown in the Summary Compensation Table contain components which are not considered taxable income to the
individuals under current Internal Revenue Code provisions.

Potential Impact on Compensation from Executive Misconduct

If the Board should determine that an executive officer has engaged in fraudulent or intentional misconduct, the Board could
take action to remedy the misconduct, prevent its recurrence, and impose such discipline on the wrongdoers as would be
appropriate. Discipline would vary depending on the facts and circumstances, and may include, without limitation,
(1) termination of employment, (2) initiating an action for breach of fiduciary duty, and (3) if the misconduct resulted in a
restatement of the Company’s financial results, seeking reimbursement of any portion of performance-based or incentive
compensation paid or awarded to the executive that is greater than would have been paid or awarded if calculated based on the
restated financial results. These remedies would be in addition to, and not in lieu of, any actions imposed by law enforcement
agencies, regulators or other authorities.

Compensation for the Named Executive Officers in 2016

Company Performance

The specific compensation decisions made for each of the named executive officers for fiscal 2016 reflect the focus on the
performance of the Company against specific financial and operational measurements.

A significant portion of each of the named executive officer’s plan-based incentive compensation is based upon the Company’s
performance against the normalized corporate financial performance measures and weighting of 1) revenue based on budget
(34 percent), 2) operating margin based on budget (33 percent), and 3) capital allocation based on budget (33 percent). Based
on the evaluation of the Company’s performance against these measures in fiscal 2016, the payout of plan based non-equity

ISC // 2017 INFORMATION STATEMENT // 19

incentives was at 72.5 percent of the targeted opportunity defined above, except for Mr. Chitwood as described below. For

fiscal 2016, the non-equity incentives further aligned earning opportunities in support of overall business cost containment

measures, as well as the execution of long term strategic growth measures such as managing to budget our Daytona Rising

project. Amounts described below regarding plan-based non-equity incentives are reflective of performance against this 100

percent earning opportunity. Potential awards of restricted stock made pursuant to our long-term incentive plan continued to be

at 100 percent of earning potential for the named executive officers.

For the named executive officers eligible for plan-based non-equity incentives, 100 percent of the earning potential for fiscal

2016 was as follows: $414,517 for Ms. Kennedy; $162,287 for Mr. Houser; $322,769 for Mr. Saunders; $163,669 for Mr.

Chitwood; and $120,781 for Mr. Wolfe. A more detailed analysis of our financial and operational performance is contained in

the Management’s Discussion & Analysis section of our 2016 Annual Report on Form 10-K filed with the SEC.

CEO Compensation

In determining Ms. Kennedy’s base salary compensation for 2016, the Compensation Committee considered her performance

as CEO and the performance of the Company in fiscal 2016. In addition, the Compensation Committee considered general

trends of Company performance over the prior several years, outcomes related to growth and development activities and

strategic initiatives, market conditions, as well as the responsibilities of the position and her strategic value to the Company.

Ms. Kennedy and the Board continued to respond to the evolving economic conditions by focusing on the following

performance framework (1) outperforming in a tough environment, (2) maintaining and maximizing financial flexibility,

(3) optimizing sustainable cost containment and (4) protecting the Company’s reputation and long-term strategy. The

Committee determined that Ms. Kennedy performed at a high level resulting in a 3.0 percent increase in base salary for

Ms. Kennedy from the previous year.

The Compensation Committee believes that Ms. Kennedy performed well in 2016 by executing on the established performance

framework and in delivering a strong financial performance. The Compensation Committee believes that the Company’s fiscal

2016 reflected leadership decisions that effectively mitigated revenue deterioration with sustainable cost containment, capital

allocation discipline and execution against defined strategic initiatives, including meeting financial and schedule metrics for the

completion of the reconstruction and the grand opening of Daytona International Speedway, the Company's flagship facility. In

determining the bonus and incentive portions of her compensation for fiscal 2016, the Compensation Committee determined

that Ms. Kennedy performed at a high level. In light of Ms. Kennedy's performance, she received a total plan-based non-equity

incentive in the amount of $300,138, which was 72.5 percent of her total target opportunity. This reflects a 72.5 percent payout

of total target opportunity due to strong performance against the corporate financial performance measures, as well as an

additional amount related to her performance against individual goals set by the Compensation Committee. Ms. Kennedy also

received 10,468 shares of restricted stock (valued at $350,573 as of the May 1, 2016 grant date) for her fiscal year 2015

leadership performance. This grant is pursuant to the 2006 Long Term Incentive Plan. The restricted stock is subject to a

vesting schedule, with 50 percent vesting in three years and the remainder vesting in five years. The final value will be

determined on the actual vesting date.

In addition, pursuant to the aforementioned fiscal year 2016 performance factors, the Compensation Committee determined that

Ms. Kennedy is eligible for a restricted stock award of 10,621 shares, the value of which will be determined based upon the

May 1, 2017 grant date. This grant, subject to shareholder approval of the 2017 Long Term Incentive Plan, is pursuant to the

2017 Long Term Incentive Plan and based on annual financial performance of the Company.

Other Named Officers

In determining the base salary compensation of Mr. Houser, Mr. Saunders, Mr. Chitwood and Mr. Wolfe for fiscal 2016 the

Compensation Committee considered the same criteria as for the CEO. The Compensation Committee also considered the

recommendations based upon evaluation of individual functional area responsibilities and goals as submitted by the CEO.

The non-equity incentive plan compensation was determined with the criteria for effectively mitigating revenue deterioration

with sustainable cost containment, capital allocation discipline and execution against defined financial measures.

Daniel W. Houser: Mr. Houser served as our Chief Financial Officer from 2009 until his retirement on November 30, 2016 and

was also an Executive Vice President of the Company. Mr. Houser’s financial objectives, as the leader of our finance

publicly traded shares during the fiscal year prior to the establishment of the share target. This targeted share award amount is

communicated to the named executive officers during the second quarter of our fiscal year. Upon completion of the fiscal year

and the financial audit, our normalized performance against the financial performance measures is evaluated, a percentage of

the targeted award to be actually awarded is determined, reviewed and approved by the Compensation Committee and the

restricted shares are issued in the name of the named executive officers on May 1 following the completion of the fiscal year.

The restricted shares then vest over time, with 50 percent vesting three years after issuance and the remaining 50 percent

vesting five years after issuance. Prior to vesting the recipient may vote the shares and receive dividends on the restricted

shares as granted. If employment ends prior to the expiration of the vesting period due to a change of control or for reasons

acceptable to the Compensation Committee (death, disability, retirement, etc.) all or a portion of the unvested restricted shares

may be allowed to vest. Termination of employment for any other reason will result in forfeiture of all unvested shares. The

timing of calculations of opportunities, amounts, awards and vesting dates are made solely for administrative efficiency and

with each award of restricted shares. Change of control is defined in the individual participant plans for all participants in the

restricted stock incentive program. A copy of the 2017 Long Term Incentive Plan is attached to this Information Statement.

The Company has no equity security ownership guidelines or requirements for the named executive officers. We have share

ownership guidelines for our non-employee directors, as more fully described below in the “Compensation of Directors”

Share Ownership Guidelines

section.

Tax Deductibility of Compensation

Section 162(m) of the Internal Revenue Code of 1986, as amended, imposes a $1.0 million limit on the amount that a public

company may deduct for compensation paid to the company’s CEO or any of the Company’s four other most highly

compensated executive officers who are employed as of the end of the year. The Committee considers tax implications in

determining executive pay, and generally endeavors to provide compensation that is tax deductible under Internal Revenue

Code Section 162(m). The Committee, however, reserves the right to forego any or all of the tax deduction if it believes it to

be in the best interest of the Company and its shareholders.

The amounts shown in the Summary Compensation Table contain components which are not considered taxable income to the

individuals under current Internal Revenue Code provisions.

Potential Impact on Compensation from Executive Misconduct

If the Board should determine that an executive officer has engaged in fraudulent or intentional misconduct, the Board could

take action to remedy the misconduct, prevent its recurrence, and impose such discipline on the wrongdoers as would be

appropriate. Discipline would vary depending on the facts and circumstances, and may include, without limitation,

(1) termination of employment, (2) initiating an action for breach of fiduciary duty, and (3) if the misconduct resulted in a

restatement of the Company’s financial results, seeking reimbursement of any portion of performance-based or incentive

compensation paid or awarded to the executive that is greater than would have been paid or awarded if calculated based on the

restated financial results. These remedies would be in addition to, and not in lieu of, any actions imposed by law enforcement

agencies, regulators or other authorities.

Compensation for the Named Executive Officers in 2016

Company Performance

The specific compensation decisions made for each of the named executive officers for fiscal 2016 reflect the focus on the

performance of the Company against specific financial and operational measurements.

A significant portion of each of the named executive officer’s plan-based incentive compensation is based upon the Company’s

performance against the normalized corporate financial performance measures and weighting of 1) revenue based on budget

(34 percent), 2) operating margin based on budget (33 percent), and 3) capital allocation based on budget (33 percent). Based

on the evaluation of the Company’s performance against these measures in fiscal 2016, the payout of plan based non-equity

without regard to earnings or other major announcements by the Company. There are change-of-control provisions associated

CEO Compensation

incentives was at 72.5 percent of the targeted opportunity defined above, except for Mr. Chitwood as described below. For
fiscal 2016, the non-equity incentives further aligned earning opportunities in support of overall business cost containment
measures, as well as the execution of long term strategic growth measures such as managing to budget our Daytona Rising
project. Amounts described below regarding plan-based non-equity incentives are reflective of performance against this 100
percent earning opportunity. Potential awards of restricted stock made pursuant to our long-term incentive plan continued to be
at 100 percent of earning potential for the named executive officers.

For the named executive officers eligible for plan-based non-equity incentives, 100 percent of the earning potential for fiscal
2016 was as follows: $414,517 for Ms. Kennedy; $162,287 for Mr. Houser; $322,769 for Mr. Saunders; $163,669 for Mr.
Chitwood; and $120,781 for Mr. Wolfe. A more detailed analysis of our financial and operational performance is contained in
the Management’s Discussion & Analysis section of our 2016 Annual Report on Form 10-K filed with the SEC.

In determining Ms. Kennedy’s base salary compensation for 2016, the Compensation Committee considered her performance
as CEO and the performance of the Company in fiscal 2016. In addition, the Compensation Committee considered general
trends of Company performance over the prior several years, outcomes related to growth and development activities and
strategic initiatives, market conditions, as well as the responsibilities of the position and her strategic value to the Company.
Ms. Kennedy and the Board continued to respond to the evolving economic conditions by focusing on the following
performance framework (1) outperforming in a tough environment, (2) maintaining and maximizing financial flexibility,
(3) optimizing sustainable cost containment and (4) protecting the Company’s reputation and long-term strategy. The
Committee determined that Ms. Kennedy performed at a high level resulting in a 3.0 percent increase in base salary for
Ms. Kennedy from the previous year.

The Compensation Committee believes that Ms. Kennedy performed well in 2016 by executing on the established performance
framework and in delivering a strong financial performance. The Compensation Committee believes that the Company’s fiscal
2016 reflected leadership decisions that effectively mitigated revenue deterioration with sustainable cost containment, capital
allocation discipline and execution against defined strategic initiatives, including meeting financial and schedule metrics for the
completion of the reconstruction and the grand opening of Daytona International Speedway, the Company's flagship facility. In
determining the bonus and incentive portions of her compensation for fiscal 2016, the Compensation Committee determined
that Ms. Kennedy performed at a high level. In light of Ms. Kennedy's performance, she received a total plan-based non-equity
incentive in the amount of $300,138, which was 72.5 percent of her total target opportunity. This reflects a 72.5 percent payout
of total target opportunity due to strong performance against the corporate financial performance measures, as well as an
additional amount related to her performance against individual goals set by the Compensation Committee. Ms. Kennedy also
received 10,468 shares of restricted stock (valued at $350,573 as of the May 1, 2016 grant date) for her fiscal year 2015
leadership performance. This grant is pursuant to the 2006 Long Term Incentive Plan. The restricted stock is subject to a
vesting schedule, with 50 percent vesting in three years and the remainder vesting in five years. The final value will be
determined on the actual vesting date.

In addition, pursuant to the aforementioned fiscal year 2016 performance factors, the Compensation Committee determined that
Ms. Kennedy is eligible for a restricted stock award of 10,621 shares, the value of which will be determined based upon the
May 1, 2017 grant date. This grant, subject to shareholder approval of the 2017 Long Term Incentive Plan, is pursuant to the
2017 Long Term Incentive Plan and based on annual financial performance of the Company.

Other Named Officers

In determining the base salary compensation of Mr. Houser, Mr. Saunders, Mr. Chitwood and Mr. Wolfe for fiscal 2016 the
Compensation Committee considered the same criteria as for the CEO. The Compensation Committee also considered the
recommendations based upon evaluation of individual functional area responsibilities and goals as submitted by the CEO.

The non-equity incentive plan compensation was determined with the criteria for effectively mitigating revenue deterioration
with sustainable cost containment, capital allocation discipline and execution against defined financial measures.

Daniel W. Houser: Mr. Houser served as our Chief Financial Officer from 2009 until his retirement on November 30, 2016 and
was also an Executive Vice President of the Company. Mr. Houser’s financial objectives, as the leader of our finance

ISC // 2017 INFORMATION STATEMENT // 20

organization, focused on the overall performance of the Company. His strategic and operational goals focused on providing
operational support in achieving financial goals, including serving as the process driver for maintaining the Company's cost
containment deliverables, balance sheet management, delivering on financial commitments for the Company's completion and
grand opening of the reconstruction of Daytona International Speedway, and leading the Company’s relationship with rating
agencies.

Mr. Houser's base salary increased 3.0 percent in fiscal 2016. The Compensation Committee assessment of Mr. Houser’s
performance in fiscal 2016 aligned to support a total plan-based non-equity incentive in the amount of $117,577, which was
72.5 percent of his total target opportunity. This reflects a 72.5 percent payout due to performance against the corporate
financial performance measures, as well as an additional amount related to his performance against individual goals set by the
Compensation Committee. Mr. Houser also received 5,132 shares of restricted stock (valued at $171,871 as of the May 1, 2016
grant date) for his performance in fiscal year 2015. This grant is pursuant to the 2006 Long Term Incentive Plan. The restricted
stock is subject to a vesting schedule, with 50 percent vesting in three years and the remainder vesting in five years. The final
value will be determined on the actual vesting date.

In addition, the Compensation Committee determined, based on Mr. Houser’s fiscal year 2016 performance, that he is eligible
for a restricted stock award, subject to shareholder approval of the 2017 Long Term Incentive Plan, of 5,206 shares, the value
of which will be determined upon the May 1, 2017 grant date. This grant is pursuant to the 2017 Long Term Incentive Plan and
based on annual financial performance of the Company.

John R. Saunders: Mr. Saunders, in his position as President, had financial objectives that focused on the overall performance
of the Company and were the same as Ms. Kennedy’s.

His strategic and operational goals included providing operational and leadership support for the Company’s strategy
development and execution against the Board approved strategic plan focusing on maintaining and growing the core business,
leveraging the core business and driving a top performing organization. Mr. Saunders led the Company’s core business growth
activities which included revenue generation and improving performance and cost competitiveness, and driving the
achievement of key financial and schedule deliverables for the completion and grand opening of the reconstruction of Daytona
International Speedway. In fiscal 2016, Mr. Saunders led the Company in continuing to maintain cost containment initiatives.

Mr. Saunders' base salary increased 3.0 percent in fiscal 2016. The Compensation Committee assessment of Mr. Saunders’
performance in 2016 aligned to support his receiving a plan-based non-equity incentive of $233,846, which was 72.5 percent of
his total target opportunity. This reflects a 72.5 percent payout due to performance against the corporate financial performance
measures, as well as an additional amount related to his performance against individual goals set by the Compensation
Committee. Mr. Saunders also received 7,361 shares of restricted stock (valued at $246,520 as of the May 1, 2016 grant date)
for his fiscal year 2015 leadership performance. This grant is pursuant to the 2006 Long Term Incentive Plan. The restricted
stock is subject to a vesting schedule, with 50 percent vesting in three years and the remainder vesting in five years. The final
value will be determined on the actual vesting date.

In addition, the Compensation Committee determined, based on Mr. Saunders’ significant performance in fiscal year 2016 that
he is eligible for a restricted stock award, subject to shareholder approval of the 2017 Long Term Incentive Plan, of 7,468
shares, the value of which will be determined upon the May 1, 2017 grant date. This grant is pursuant to the 2017 Long Term
Incentive Plan and based on annual financial performance of the Company.

Joel S. Chitwood: Mr. Chitwood, in his position as Executive Vice President and Chief Operating Officer, had financial
objectives that focused on the overall performance of the Company, as well as goals and objectives for his functional area of
responsibility in leading the strategic and revenue generation performance of the Company's facility portfolio including the
completion of the reconstruction and grand opening of Daytona International Speedway. His strategic goals included creating
brand interest and demand for product, as well as focusing on elements of pricing strategies and margin rates to drive customer
renewal and retention, and the overall guest experience.

Mr. Chitwood's base salary increased in accordance with his promotion to Chief Operating Officer in fiscal 2016. The
Compensation Committee assessment of Mr. Chitwood's performance in 2016 aligned to support his receiving a plan-based
non-equity incentive of $120,459 which was 73.8 percent of his total target opportunity. This amount is reflective of his
leadership in the completion of the Daytona Rising project, as well as his operational performance for the grand opening of

ISC // 2017 INFORMATION STATEMENT // 21

Daytona International Speedway. In addition, Mr. Chitwood received a $50,000 cash bonus for significant leadership in driving

the on time and on budget completion of the Daytona International Speedway reconstruction project and successful grand

opening in February 2016. Mr. Chitwood also received 3,795 shares of restricted stock (valued at $126,378 as of the May 1,

2016 grant date) for his performance in fiscal year 2015. This grant is pursuant to the 2006 Long Term Incentive Plan. The

restricted stock is subject to a vesting schedule, with 50 percent vesting in three years and the remainder vesting in five years.

The final value will be determined on the actual vesting date.

In addition, the Compensation Committee determined, based on Mr. Chitwood's fiscal year 2016 performance, that he is

eligible for a restricted stock award, subject to shareholder approval of the 2017 Long Term Incentive Plan, of 5,206 shares, the

value of which will be determined upon the May 1, 2017 grant date. This grant is pursuant to the 2017 Long Term Incentive

Plan and based on annual financial performance of the Company.

Daryl Q. Wolfe: Mr. Wolfe, in his position as Executive Vice President, Chief Marketing Officer had financial objectives that

focused on the overall performance of the Company, as well as goals and objectives for his functional area of responsibility.

These included leading the strategic and revenue generation performance for ISC and establishing the founding partner injector

sponsorships including securing the center injector multi-year sponsorship for the reconstructed Daytona International

Speedway. His strategic goals included creating brand interest and demand for product, as well as focusing on elements of

pricing strategies and margin rates to drive customer retention.

Mr. Wolfe's base salary increased 3.0 percent in fiscal 2016. The Compensation Committee assessment of Mr. Wolfe’s

performance in 2016 aligned to support his receiving a plan-based non-equity incentive of $87,506 which was 72.5 percent of

his total target opportunity. This reflects a 72.5 percent payout due to performance against the corporate financial performance

measures, as well as an additional amount related to his performance against individual goals set by the Compensation

Committee. In addition, Mr. Wolfe received a $50,000 cash bonus for significant leadership in driving the on time and on

budget completion of the Daytona International Speedway reconstruction project and successful grand opening in February

2016. Mr. Wolfe also received 4,129 shares of restricted stock (valued at $138,280 as of the May 1, 2016 grant date) for his

performance in fiscal year 2015. This grant is pursuant to the 2006 Long Term Incentive Plan. The restricted stock is subject to

a vesting schedule, with 50 percent vesting in three years and the remainder vesting in five years. The final value will be

determined on the actual vesting date.

In addition, the Compensation Committee determined, based on Mr. Wolfe's fiscal year 2016 performance, that he is eligible for

a restricted stock award, subject to shareholder approval of the 2017 Long Term Incentive Plan, of 4,189 shares the value will

be determined upon the May 1, 2017 grant date. This grant is pursuant to the 2017 Long Term Incentive Plan.

SUMMARY COMPENSATION TABLE

Name and Principal Position

Year

Salary ($)

Bonus (1) ($)

(2) ($)

Stock Awards

Non-Equity

Incentive Plan

Compensation

(3) ($)

All Other

Compensation

(4) ($)

Total ($)

Lesa France Kennedy

Vice Chairwoman and

CEO

Daniel W. Houser

EVP, CFO,

Treasurer

John R. Saunders

President

Joel S. Chitwood

EVP, Chief Operating

Officer

Daryl Q. Wolfe

EVP, Chief Marketing

Officer

2016 $

2015 $

2014 $

2016 $

2015 $

2014 $

2016 $

2015 $

2014 $

2016 $

2015 $

2014 $

2016 $

690,862 $

671,513 $

648,630 $

329,730 $

342,917 $

331,134 $

586,854 $

570,418 $

550,934 $

391,097 $

322,305 $

312,090 $

335,503 $

300 $

— $

250 $

300 $

50,100 $

100 $

50,250 $

350,573 $

384,216 $

328,422 $

171,871 $

188,345 $

161,004 $

246,520 $

270,155 $

230,927 $

125,889 $

137,986 $

118,026 $

138,280 $

300,318 $

402,444 $

281,711 $

117,577 $

157,560 $

110,292 $

233,846 $

313,368 $

219,358 $

120,459 $

136,149 $

100,000 $

87,506 $

24,889 $ 1,366,942

32,181 $ 1,490,654

19,077 $ 1,278,140

38,304 $

36,344 $

40,291 $

657,482

725,416

642,971

43,148 $ 1,110,668

45,040 $ 1,199,281

43,158 $ 1,044,677

38,524 $

35,349 $

39,389 $

38,029 $

726,069

631,889

569,605

649,568

2015 $

326,107 $

200 $

156,093 $

117,263 $

34,433 $

634,096

organization, focused on the overall performance of the Company. His strategic and operational goals focused on providing

operational support in achieving financial goals, including serving as the process driver for maintaining the Company's cost

containment deliverables, balance sheet management, delivering on financial commitments for the Company's completion and

grand opening of the reconstruction of Daytona International Speedway, and leading the Company’s relationship with rating

agencies.

Mr. Houser's base salary increased 3.0 percent in fiscal 2016. The Compensation Committee assessment of Mr. Houser’s

performance in fiscal 2016 aligned to support a total plan-based non-equity incentive in the amount of $117,577, which was

72.5 percent of his total target opportunity. This reflects a 72.5 percent payout due to performance against the corporate

financial performance measures, as well as an additional amount related to his performance against individual goals set by the

Compensation Committee. Mr. Houser also received 5,132 shares of restricted stock (valued at $171,871 as of the May 1, 2016

grant date) for his performance in fiscal year 2015. This grant is pursuant to the 2006 Long Term Incentive Plan. The restricted

stock is subject to a vesting schedule, with 50 percent vesting in three years and the remainder vesting in five years. The final

value will be determined on the actual vesting date.

In addition, the Compensation Committee determined, based on Mr. Houser’s fiscal year 2016 performance, that he is eligible

for a restricted stock award, subject to shareholder approval of the 2017 Long Term Incentive Plan, of 5,206 shares, the value

of which will be determined upon the May 1, 2017 grant date. This grant is pursuant to the 2017 Long Term Incentive Plan and

based on annual financial performance of the Company.

John R. Saunders: Mr. Saunders, in his position as President, had financial objectives that focused on the overall performance

of the Company and were the same as Ms. Kennedy’s.

His strategic and operational goals included providing operational and leadership support for the Company’s strategy

development and execution against the Board approved strategic plan focusing on maintaining and growing the core business,

leveraging the core business and driving a top performing organization. Mr. Saunders led the Company’s core business growth

activities which included revenue generation and improving performance and cost competitiveness, and driving the

achievement of key financial and schedule deliverables for the completion and grand opening of the reconstruction of Daytona

International Speedway. In fiscal 2016, Mr. Saunders led the Company in continuing to maintain cost containment initiatives.

Mr. Saunders' base salary increased 3.0 percent in fiscal 2016. The Compensation Committee assessment of Mr. Saunders’

performance in 2016 aligned to support his receiving a plan-based non-equity incentive of $233,846, which was 72.5 percent of

his total target opportunity. This reflects a 72.5 percent payout due to performance against the corporate financial performance

measures, as well as an additional amount related to his performance against individual goals set by the Compensation

Committee. Mr. Saunders also received 7,361 shares of restricted stock (valued at $246,520 as of the May 1, 2016 grant date)

for his fiscal year 2015 leadership performance. This grant is pursuant to the 2006 Long Term Incentive Plan. The restricted

stock is subject to a vesting schedule, with 50 percent vesting in three years and the remainder vesting in five years. The final

value will be determined on the actual vesting date.

In addition, the Compensation Committee determined, based on Mr. Saunders’ significant performance in fiscal year 2016 that

he is eligible for a restricted stock award, subject to shareholder approval of the 2017 Long Term Incentive Plan, of 7,468

shares, the value of which will be determined upon the May 1, 2017 grant date. This grant is pursuant to the 2017 Long Term

Incentive Plan and based on annual financial performance of the Company.

Joel S. Chitwood: Mr. Chitwood, in his position as Executive Vice President and Chief Operating Officer, had financial

objectives that focused on the overall performance of the Company, as well as goals and objectives for his functional area of

responsibility in leading the strategic and revenue generation performance of the Company's facility portfolio including the

completion of the reconstruction and grand opening of Daytona International Speedway. His strategic goals included creating

brand interest and demand for product, as well as focusing on elements of pricing strategies and margin rates to drive customer

renewal and retention, and the overall guest experience.

Mr. Chitwood's base salary increased in accordance with his promotion to Chief Operating Officer in fiscal 2016. The

Compensation Committee assessment of Mr. Chitwood's performance in 2016 aligned to support his receiving a plan-based

non-equity incentive of $120,459 which was 73.8 percent of his total target opportunity. This amount is reflective of his

leadership in the completion of the Daytona Rising project, as well as his operational performance for the grand opening of

Daytona International Speedway. In addition, Mr. Chitwood received a $50,000 cash bonus for significant leadership in driving
the on time and on budget completion of the Daytona International Speedway reconstruction project and successful grand
opening in February 2016. Mr. Chitwood also received 3,795 shares of restricted stock (valued at $126,378 as of the May 1,
2016 grant date) for his performance in fiscal year 2015. This grant is pursuant to the 2006 Long Term Incentive Plan. The
restricted stock is subject to a vesting schedule, with 50 percent vesting in three years and the remainder vesting in five years.
The final value will be determined on the actual vesting date.

In addition, the Compensation Committee determined, based on Mr. Chitwood's fiscal year 2016 performance, that he is
eligible for a restricted stock award, subject to shareholder approval of the 2017 Long Term Incentive Plan, of 5,206 shares, the
value of which will be determined upon the May 1, 2017 grant date. This grant is pursuant to the 2017 Long Term Incentive
Plan and based on annual financial performance of the Company.

Daryl Q. Wolfe: Mr. Wolfe, in his position as Executive Vice President, Chief Marketing Officer had financial objectives that
focused on the overall performance of the Company, as well as goals and objectives for his functional area of responsibility.
These included leading the strategic and revenue generation performance for ISC and establishing the founding partner injector
sponsorships including securing the center injector multi-year sponsorship for the reconstructed Daytona International
Speedway. His strategic goals included creating brand interest and demand for product, as well as focusing on elements of
pricing strategies and margin rates to drive customer retention.

Mr. Wolfe's base salary increased 3.0 percent in fiscal 2016. The Compensation Committee assessment of Mr. Wolfe’s
performance in 2016 aligned to support his receiving a plan-based non-equity incentive of $87,506 which was 72.5 percent of
his total target opportunity. This reflects a 72.5 percent payout due to performance against the corporate financial performance
measures, as well as an additional amount related to his performance against individual goals set by the Compensation
Committee. In addition, Mr. Wolfe received a $50,000 cash bonus for significant leadership in driving the on time and on
budget completion of the Daytona International Speedway reconstruction project and successful grand opening in February
2016. Mr. Wolfe also received 4,129 shares of restricted stock (valued at $138,280 as of the May 1, 2016 grant date) for his
performance in fiscal year 2015. This grant is pursuant to the 2006 Long Term Incentive Plan. The restricted stock is subject to
a vesting schedule, with 50 percent vesting in three years and the remainder vesting in five years. The final value will be
determined on the actual vesting date.

In addition, the Compensation Committee determined, based on Mr. Wolfe's fiscal year 2016 performance, that he is eligible for
a restricted stock award, subject to shareholder approval of the 2017 Long Term Incentive Plan, of 4,189 shares the value will
be determined upon the May 1, 2017 grant date. This grant is pursuant to the 2017 Long Term Incentive Plan.

SUMMARY COMPENSATION TABLE

Name and Principal Position

Year

Salary ($)

Bonus (1) ($)

Lesa France Kennedy
Vice Chairwoman and
CEO

Daniel W. Houser
EVP, CFO,
Treasurer

John R. Saunders
President

Joel S. Chitwood
EVP, Chief Operating
Officer

Daryl Q. Wolfe
EVP, Chief Marketing
Officer

2016 $
2015 $
2014 $
2016 $
2015 $
2014 $
2016 $
2015 $
2014 $
2016 $
2015 $
2014 $
2016 $

2015 $

690,862 $
671,513 $
648,630 $
329,730 $
342,917 $
331,134 $
586,854 $
570,418 $
550,934 $
391,097 $
322,305 $
312,090 $
335,503 $
326,107 $

Stock Awards
(2) ($)
350,573 $
384,216 $
328,422 $
171,871 $
188,345 $
161,004 $
246,520 $
270,155 $
230,927 $
125,889 $
137,986 $
118,026 $
138,280 $
156,093 $

300 $
300 $
300 $
— $
250 $
250 $
300 $
300 $
300 $
50,100 $
100 $
100 $
50,250 $
200 $

Non-Equity
Incentive Plan
Compensation
(3) ($)
300,318 $
402,444 $
281,711 $
117,577 $
157,560 $
110,292 $
233,846 $
313,368 $
219,358 $
120,459 $
136,149 $
100,000 $
87,506 $
117,263 $

All Other
Compensation
(4) ($)

Total ($)

24,889 $ 1,366,942
32,181 $ 1,490,654
19,077 $ 1,278,140
657,482
38,304 $
725,416
36,344 $
40,291 $
642,971
43,148 $ 1,110,668
45,040 $ 1,199,281
43,158 $ 1,044,677
726,069
38,524 $
631,889
35,349 $
569,605
39,389 $
649,568
38,029 $
634,096
34,433 $

ISC // 2017 INFORMATION STATEMENT // 22

(1) Amounts shown in this column represent amounts for a small holiday bonus based on seniority. In addition, Messrs.

Chitwood and Wolfe each received a $50,000 cash bonus for significant leadership in driving the on time and on budget
completion of the Daytona International Speedway reconstruction project and successful grand opening in February
2016.

(2) Amounts shown in this column represent stock awards made to each of the named executives pursuant to our 2006

Long-Term Incentive Plan as a result of the executives' prior fiscal year performance. All amounts reflected are as of the
grant date. For further information on these awards, please see the discussion labeled “Compensation for the Named
Executive Officers in 2016” beginning on page 16 herein. The amounts for Stock Awards reflect the aggregate grant date
fair value of such awards, computed in accordance with Financial Accounting Standards Board ASC Topic 718. See
Note 13 — Long-Term Stock Incentive Plan to the Consolidated Financial Statements in our fiscal 2016 Annual Report
on Form 10-K for additional information concerning this plan and related Stock Awards and valuation assumptions.

(3)

For additional information on our annual incentive compensation plan for management, please see the discussion labeled
“Compensation for the Named Executive Officers in 2016” beginning on page 16 herein.

(4) Amounts shown under the “All Other Compensation” column represent amounts paid for basic employee benefits
available to all employees (i.e. group life insurance, accidental death and dismemberment insurance, group health
insurance, long term disability insurance, and short term disability coverage), the annual lease value of Company-
provided vehicles, travel related costs of guests in connection with attending events at the motorsports entertainment
facilities operated by the Company, a NASCAR banquet, other business related travel, as well as other personal travel,
and 401(K) contributions. Although the coverage limits for Life Insurance and long term disability are different for
officers, the cost incurred by the Company to provide the executive benefit is the same as the cost for basic employee
benefits.

Table 1

Percent Variance

> + 10%

> 0.0%

< - 2.5%

< - 5.0%

< - 6.5%

< - 8.5%

< - 10.0%

> 10.0%

Estimated Future Payouts Under
Non-Equity Incentive Plan Awards

Estimated Future Payouts
Under Equity Incentive Plan
Awards

All
Other
Stock
Awards:
Number
of
Shares
of Stock
(#)

Grant
Date
Fair
Value of
Stock
and
Option
Awards
(4)($)

Thres-
hold
(1)($)

Target
(3)($)

Maximum
($)

GRANTS OF PLAN-BASED AWARDS

Name

Grant
Date

Author-
ization
Date

Lesa France
Kennedy

11/30/16
05/01/16

Daniel W.
Houser

John R.
Saunders

Joel S.
Chitwood

Daryl Q.
Wolfe

11/30/16

05/01/16

11/30/16

05/01/16
11/30/16
05/01/16
11/30/16
05/01/16

11/08/16
01/25/16

11/08/16
01/25/16
11/08/16
01/25/16
11/08/16
01/25/16
11/08/16
01/25/16

Thres-
hold
(1)($)

Target
(2)($)
$ — $ 414,517 $ 621,775

Maximum
($)

$ — $ 162,287 $ 243,430

$ — $ 322,769 $ 484,153

$ — $ 163,669 $ 245,503

$ — $ 120,781 $ 181,171

$ —

$ 360,160

$ 540,240

—

351,934

$ —

$ 176,550

$ 264,825

—

172,538

$ —

$ 253,237

$ 379,855

—

247,477

fiscal 2016 Annual Report on Form 10-K for additional information concerning this plan and related Stock Awards and

$ —

$ 176,550

$ 264,825

—

126,378

$ —

$ 142,052

$ 213,078

—

138,817

valuation assumptions.

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END

(1) No thresholds are provided for in the applicable plan. The final award is determined through a calculation based on the
weighted measurements as described below, and using the same formula as the equity based cash payout along with a
discretionary amount based on performance against individual goals and achievement.

(2)

For fiscal 2016, a significant portion of the named executive officer’s plan-based non-equity incentive compensation is
based upon the Company’s actual performance against the budgeted normalized corporate financial performance
measures approved by the Board. The approved measurements are weighted to calculate the total target, detailed as
follows: (1) Revenue 34 percent, (2) Operating Margin 33 percent, and (3) Capital Allocation metrics 33 percent.
Accordingly, and consistent with the Company's cost containment initiatives, the plan-based non-equity incentive was
capped at 75 percent of the usual earning potential for named executive officers. The approved incremental earning
opportunity completes the target opportunity at 100 percent for 2016. The calculated variance percentage of actual

ISC // 2017 INFORMATION STATEMENT // 23

Name

Lesa France Kennedy

Daniel W. Houser

John R. Saunders

Joel S. Chitwood

Daryl Q. Wolfe

performance compared to budgeted performance is then used to determine the percentage payout for each respective

measure, as represented in Table 1. Based on the evaluation of the Company’s performance against these measures for

fiscal 2016, the portion of each named executive officer’s plan-based incentive compensation was set at 72.5 percent of

the targeted opportunity, with weighted performance for the revenue target, the operating margin target, the capital

allocation target and the exceeding EBITDA target. A more detailed analysis of our financial and operational

performance is contained in the Management’s Discussion & Analysis section of our 2016 Annual Report on Form 10-K

filed with the SEC.

(3)

The targeted number of shares is fixed by the Compensation Committee and represents a specified earning opportunity

for the named executive officer’s annual base salary based upon the average price of our publicly traded shares during

the fiscal year prior to the establishment of the share target. This targeted share award amount is communicated to the

named executive officers during the second quarter of our fiscal year. Upon completion of the fiscal year and the

financial audit, our normalized performance against the financial performance measures is evaluated, a percentage of the

targeted award to be actually awarded is determined, reviewed and approved by the Compensation Committee and the

restricted shares are issued in the name of the named executive officers on May 1 following the completion of the fiscal

year. The maximum amount of the award is 1.5 times the target. In 2016, payout of the award was determined by actual

performance against the budgeted normalized corporate financial performance measures approved by the Board. The

approved measurements are weighted to calculate the total target, detailed as follows: (1) Revenue, (2) Operating Margin

and (3) Capital Allocation.

(4)

The Grant Date Fair Value of Stock and Option Awards reflects the aggregate grant date fair value of the restricted stock

granted pursuant to our 2006 Long Term Incentive Plan computed in accordance with Financial Accounting Standards

Board ASC Topic 718. See Note 13 – Long-Term Stock Incentive Plan to the Consolidated Financial Statements in our

Payout

Discretionary

100 %

90 %

80 %

70 %

60 %

50 %

0 %

Stock Awards

Number of Shares of

Stock That Have Not

Vested (1)(#)

Market Value of

Shares of Stock

That Have Not

Vested (2)($)

45,232

21,163

32,081

15,902

17,706

1,664,538

778,798

1,180,581

585,194

651,581

performance compared to budgeted performance is then used to determine the percentage payout for each respective
measure, as represented in Table 1. Based on the evaluation of the Company’s performance against these measures for
fiscal 2016, the portion of each named executive officer’s plan-based incentive compensation was set at 72.5 percent of
the targeted opportunity, with weighted performance for the revenue target, the operating margin target, the capital
allocation target and the exceeding EBITDA target. A more detailed analysis of our financial and operational
performance is contained in the Management’s Discussion & Analysis section of our 2016 Annual Report on Form 10-K
filed with the SEC.

Table 1

Percent Variance

> + 10%
> 0.0%
< - 2.5%
< - 5.0%
< - 6.5%
< - 8.5%
< - 10.0%
> 10.0%

Payout

Discretionary
100 %
90 %
80 %
70 %
60 %
50 %
0 %

(3)

The targeted number of shares is fixed by the Compensation Committee and represents a specified earning opportunity
for the named executive officer’s annual base salary based upon the average price of our publicly traded shares during
the fiscal year prior to the establishment of the share target. This targeted share award amount is communicated to the
named executive officers during the second quarter of our fiscal year. Upon completion of the fiscal year and the
financial audit, our normalized performance against the financial performance measures is evaluated, a percentage of the
targeted award to be actually awarded is determined, reviewed and approved by the Compensation Committee and the
restricted shares are issued in the name of the named executive officers on May 1 following the completion of the fiscal
year. The maximum amount of the award is 1.5 times the target. In 2016, payout of the award was determined by actual
performance against the budgeted normalized corporate financial performance measures approved by the Board. The
approved measurements are weighted to calculate the total target, detailed as follows: (1) Revenue, (2) Operating Margin
and (3) Capital Allocation.

(4)

The Grant Date Fair Value of Stock and Option Awards reflects the aggregate grant date fair value of the restricted stock
granted pursuant to our 2006 Long Term Incentive Plan computed in accordance with Financial Accounting Standards
Board ASC Topic 718. See Note 13 – Long-Term Stock Incentive Plan to the Consolidated Financial Statements in our
fiscal 2016 Annual Report on Form 10-K for additional information concerning this plan and related Stock Awards and
valuation assumptions.

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END

Name

Lesa France Kennedy
Daniel W. Houser
John R. Saunders
Joel S. Chitwood
Daryl Q. Wolfe

Stock Awards

Number of Shares of
Stock That Have Not
Vested (1)(#)

Market Value of
Shares of Stock
That Have Not
Vested (2)($)

45,232
21,163
32,081
15,902
17,706

$
$
$
$
$

1,664,538
778,798
1,180,581
585,194
651,581

ISC // 2017 INFORMATION STATEMENT // 24

(1)

The table below shows the vesting dates for the number of shares of common stock underlying unvested restricted stock
grants reflected in the Number of Shares of Stock That Have Not Vested column:

Number of Restricted Shares Vesting

Vesting Date

05/1/2017

05/1/2018

05/1/2019

05/1/2020

05/1/2021

Lesa France
Kennedy

Daniel W.
Houser

John R.
Saunders

Joel S.
Chitwood

Daryl Q.
Wolfe

14,257
10,001
10,457
5,283
5,234

5,979
4,902
5,126
2,590
2,566

10,302
7,031
7,353
3,715
3,680

4,776
3,593
3,757
1,897
1,879

5,246
4,063
4,187
2,146
2,064

(2) Amounts are calculated by multiplying $36.80, the closing price of our common stock on November 30, 2016, by the

applicable number of shares.

OPTION EXERCISES AND STOCK VESTED

Name

Lesa France Kennedy
Daniel W. Houser
John R. Saunders
Joel S. Chitwood
Daryl Q. Wolfe

Stock Awards

Number of
Shares
Acquired on
Vesting (#)

7,775
3,554
5,478
2,544
3,158

$
$
$
$
$

Value Realized on
Vesting (1) ($)

260,385
119,023
183,458
85,199
105,761

(1) Amounts are calculated by multiplying the number of shares vesting by the market value of our common stock on the

dates of stock vesting, May 1, 2016, which was $33.49.

POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE-IN-CONTROL

The only potential payments for any of the named executive officers are related to the unvested shares of restricted stock as
shown in the Outstanding Equity Awards at Fiscal Year End above. Upon the occurrence of a change of control as defined in
the individual participant plans for all participants in the restricted stock incentive program all of the unvested shares would
immediately vest for each participant. There are no other arrangements to be disclosed pursuant to this item.

Name

Lesa France Kennedy (1)
Daniel W. Houser (1)
John R. Saunders (1)
Joel S. Chitwood (1)
Daryl Q. Wolfe (1)

Number of Shares of
Stock That Have Not
Vested (#)
45,232
21,163
32,081
15,902
17,706

$
$
$
$
$

Payment upon a
Change-in-Control
(2)($)

1,664,538
778,798
1,180,581
585,194
651,581

(1) Change-in-Control is defined in the individual participant plans for all participants in the restricted stock incentive

program. A copy of the plan is on file with the SEC in connection with our Form S-8 registration statement, filed on
February 11, 2010.

COMPENSATION OF DIRECTORS

We pay our non-employee directors:

a $20,000 annual cash fee;

•

attended;

an annual grant of restricted Class A common stock in an amount equal to $30,000 based on the stock price on the

grant date of such restricted stock;

a cash fee of $750 for each meeting of the board of directors attended;

a cash fee of $500 for each meeting of each committee (other than the Audit Committee) of the board of directors

• members of the Audit Committee are paid a cash fee of $750 for each meeting of the Audit Committee attended; and

•

the chairman of the Audit Committee is paid an additional $5,000 annual cash fee.

The number of restricted shares granted to each non-employee director are determined by dividing a dollar amount by the per-

share closing price of our Class A common stock on the date of grant (rounded to the nearest whole share). Throuh 2016, these

stock awards were issued pursuant to the 2006 Long Term Incentive Plan and vest after one year. Starting in 2017, such stock

awards will be issued pursuant to the 2017 Long Term Incentive Plan if approved by shareholders. All meeting fees are paid at

the time of the meeting.

In addition, we also reimburse non-employee directors for all expenses incurred in the performance of their duties.

No non-employee director received perquisites and personal benefits with a total value of $10,000 or more during the fiscal

year ended November 30, 2016.

The Board has adopted share ownership guidelines applicable to non-employee directors providing that non-employee directors

should, upon three years of becoming a director, own and hold a minimum of common stock of the Company with a market

value of at least $90,000. Each such non-employee director is required to maintain that level of stock ownership for so long as

he or she serves on the Board. Restricted shares issued by the Company to a non-employee director are counted for purposes of

determining a non-employee director's ownership.

DIRECTOR COMPENSATION TABLE

Name

Larry Aiello, Jr.

J. Hyatt Brown

Brian Z. France

William P. Graves

Sonia Green

Christy F. Harris

Morteza Hosseini-Kargar

Larree M. Renda

Larry Woodard

Fees Earned or

Paid in Cash ($)(1)

Stock Awards

($)(2)

Total ($)

36,500 $

31,000 $

22,250 $

29,250 $

23,750 $

27,250 $

24,250 $

28,750 $

24,250 $

30,055 $

66,555

61,055

52,305

59,305

53,805

57,305

54,305

58,805

54,305

(1) Amounts shown in the “Fees Earned or Paid in Cash” column represent the sum of all annual fee and meeting fee cash

payments made to the indicated non-employee directors during the fiscal year ended November 30, 2016. It does not

include any expense reimbursement.

(2)

Stock Awards were granted pursuant to our 2006 Long Term Incentive Plan. The amounts for Stock Awards reflect the

aggregate grant date fair value of such awards, computed in accordance with Financial Accounting Standards Board

ASC Topic 718. See Note 13 — Long-Term Incentive Plan to the Consolidated Financial Statements in our fiscal

(2) Amounts are calculated by multiplying $36.80, the closing price of our common stock on November 30, 2016, by the

2016 Annual Report on Form 10-K for additional information concerning this plan and related Stock Awards and

applicable number of shares.

valuation assumptions.

ISC // 2017 INFORMATION STATEMENT // 25

(1)

The table below shows the vesting dates for the number of shares of common stock underlying unvested restricted stock

grants reflected in the Number of Shares of Stock That Have Not Vested column:

COMPENSATION OF DIRECTORS

We pay our non-employee directors:

Number of Restricted Shares Vesting

Vesting Date

05/1/2017

05/1/2018

05/1/2019

05/1/2020

05/1/2021

Lesa France

Kennedy

Daniel W.

Houser

John R.

Saunders

Joel S.

Chitwood

Daryl Q.

Wolfe

14,257

10,001

10,457

5,283

5,234

5,979

4,902

5,126

2,590

2,566

10,302

7,031

7,353

3,715

3,680

4,776

3,593

3,757

1,897

1,879

5,246

4,063

4,187

2,146

2,064

(2) Amounts are calculated by multiplying $36.80, the closing price of our common stock on November 30, 2016, by the

applicable number of shares.

OPTION EXERCISES AND STOCK VESTED

•

a $20,000 annual cash fee;

an annual grant of restricted Class A common stock in an amount equal to $30,000 based on the stock price on the
grant date of such restricted stock;

a cash fee of $750 for each meeting of the board of directors attended;

a cash fee of $500 for each meeting of each committee (other than the Audit Committee) of the board of directors
attended;

• members of the Audit Committee are paid a cash fee of $750 for each meeting of the Audit Committee attended; and

•

the chairman of the Audit Committee is paid an additional $5,000 annual cash fee.

The number of restricted shares granted to each non-employee director are determined by dividing a dollar amount by the per-
share closing price of our Class A common stock on the date of grant (rounded to the nearest whole share). Throuh 2016, these
stock awards were issued pursuant to the 2006 Long Term Incentive Plan and vest after one year. Starting in 2017, such stock
awards will be issued pursuant to the 2017 Long Term Incentive Plan if approved by shareholders. All meeting fees are paid at
the time of the meeting.

In addition, we also reimburse non-employee directors for all expenses incurred in the performance of their duties.

Value Realized on

Vesting (1) ($)

No non-employee director received perquisites and personal benefits with a total value of $10,000 or more during the fiscal
year ended November 30, 2016.

The Board has adopted share ownership guidelines applicable to non-employee directors providing that non-employee directors
should, upon three years of becoming a director, own and hold a minimum of common stock of the Company with a market
value of at least $90,000. Each such non-employee director is required to maintain that level of stock ownership for so long as
he or she serves on the Board. Restricted shares issued by the Company to a non-employee director are counted for purposes of
determining a non-employee director's ownership.

DIRECTOR COMPENSATION TABLE

Name

Larry Aiello, Jr.
J. Hyatt Brown
Brian Z. France
William P. Graves
Sonia Green
Christy F. Harris
Morteza Hosseini-Kargar
Larree M. Renda
Larry Woodard

Fees Earned or
Paid in Cash ($)(1)

Stock Awards
($)(2)

Total ($)

$
$
$
$
$
$
$
$
$

36,500 $
31,000 $
22,250 $
29,250 $
23,750 $
27,250 $
24,250 $
28,750 $
24,250 $

30,055 $
30,055 $
30,055 $
30,055 $
30,055 $
30,055 $
30,055 $
30,055 $
30,055 $

66,555
61,055
52,305
59,305
53,805
57,305
54,305
58,805
54,305

(1) Amounts shown in the “Fees Earned or Paid in Cash” column represent the sum of all annual fee and meeting fee cash

payments made to the indicated non-employee directors during the fiscal year ended November 30, 2016. It does not
include any expense reimbursement.

(2)

Stock Awards were granted pursuant to our 2006 Long Term Incentive Plan. The amounts for Stock Awards reflect the
aggregate grant date fair value of such awards, computed in accordance with Financial Accounting Standards Board
ASC Topic 718. See Note 13 — Long-Term Incentive Plan to the Consolidated Financial Statements in our fiscal
2016 Annual Report on Form 10-K for additional information concerning this plan and related Stock Awards and
valuation assumptions.

ISC // 2017 INFORMATION STATEMENT // 26

Name

Lesa France Kennedy

Daniel W. Houser

John R. Saunders

Joel S. Chitwood

Daryl Q. Wolfe

Name

Lesa France Kennedy (1)

Daniel W. Houser (1)

John R. Saunders (1)

Joel S. Chitwood (1)

Daryl Q. Wolfe (1)

February 11, 2010.

applicable number of shares.

(1) Amounts are calculated by multiplying the number of shares vesting by the market value of our common stock on the

dates of stock vesting, May 1, 2016, which was $33.49.

POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE-IN-CONTROL

The only potential payments for any of the named executive officers are related to the unvested shares of restricted stock as

shown in the Outstanding Equity Awards at Fiscal Year End above. Upon the occurrence of a change of control as defined in

the individual participant plans for all participants in the restricted stock incentive program all of the unvested shares would

immediately vest for each participant. There are no other arrangements to be disclosed pursuant to this item.

(1) Change-in-Control is defined in the individual participant plans for all participants in the restricted stock incentive

program. A copy of the plan is on file with the SEC in connection with our Form S-8 registration statement, filed on

(2) Amounts are calculated by multiplying $36.80, the closing price of our common stock on November 30, 2016, by the

Stock Awards

Number of

Acquired on

Vesting (#)

7,775

3,554

5,478

2,544

3,158

260,385

119,023

183,458

85,199

105,761

Number of Shares of

Stock That Have Not

Payment upon a

Change-in-Control

Vested (#)

(2)($)

45,232

21,163

32,081

15,902

17,706

1,664,538

778,798

1,180,581

585,194

651,581

As of November 30, 2016 the non-employee directors held the following shares of restricted stock and stock options to acquire
shares of our Class A common stock:

PERFORMANCE GRAPH

Name

Larry Aiello, Jr.
J. Hyatt Brown
Brian Z. France
William P. Graves
Sonia Green
Christy F. Harris
Morteza Hosseini-Kargar
Larree M. Renda
Larry Woodard

Aggregate Option
Awards
Outstanding at
11/30/2016 (1)(#)

Number of Shares
of Stock That Have
Not Vested (1)(#)

3,119
2,880
13,342
8,005
—
9,447
11,839
—
—

897
897
897
897
897
897
897
897
897

(1)

Stock and Option Awards were granted pursuant to our 2006 Long-Term Incentive Plan. See also Note 13 — Long-Term
Stock Incentive Plan to the Consolidated Financial Statements in our fiscal year 2016 Annual Report on Form 10-K for
additional information concerning this plan and related Stock and Option Awards and valuation assumptions.

COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

The Compensation Committee members whose names appear on the Compensation Committee Report below were committee
members during all of fiscal year 2016. No member of the Compensation Committee is or has been a former or current
executive officer of the Company or had any relationships requiring disclosure by the Company under the SEC’s rules requiring
disclosure of certain relationships and related party transactions. None of the Company’s executive officers served as a director
or a member of a compensation committee (or other committee serving an equivalent function) of any other entity that has or
has had one or more executive officers who served as a director or member of the Compensation Committee during the fiscal
year ended November 30, 2016.

COMPENSATION COMMITTEE REPORT

The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis with management and
recommended to the board of directors that the Compensation Discussion and Analysis be included in this information
statement and our annual report on Form 10-K.

Larree M. Renda
William P. Graves
Larry D. Woodard

ISC // 2017 INFORMATION STATEMENT // 27

Assumes $100 investment in the common stock of International Speedway Corporation, Nasdaq Stocks SIC 7900-

7999 (US Companies) and Nasdaq Stock Market Indices on November 30, 2011 (US Companies) with dividend

reinvestment.

The rules of the SEC require us to provide a line graph covering at least the last five fiscal years and comparing the yearly

percentage change in our total shareholder return on a class of our common stock with the cumulative total return of a broad

equity index, assuming reinvestment of dividends, and the cumulative total return, assuming reinvestment of dividends, of a

published industry or line-of-business index; peer issuers selected in good faith; or issuers with similar market capitalization.

The graph above compares the cumulative total five year return of our class A common stock with that of the NASDAQ Stock

Market Index (U.S. Companies) and with the 40 NASDAQ issuers (U.S. companies) listed in SIC codes 7900-7999, which

encompasses service businesses in the amusement, sports and recreation industry, including indoor operations that are not

subject to the impact of weather on operations, and pari-mutual and other wagering operations. We conduct large outdoor

sporting and entertainment events that are subject to the impact of weather. The stock price shown has been estimated from the

high and low prices for each quarter for which the close is not available. Because of the unique nature of our business and the

fact that public information is available concerning only a limited number of companies involved in the same line of business,

and no public information is available concerning other companies in our line of business, we do not believe that the

information presented above is meaningful.

As of November 30, 2016 the non-employee directors held the following shares of restricted stock and stock options to acquire

shares of our Class A common stock:

PERFORMANCE GRAPH

Name

Larry Aiello, Jr.

J. Hyatt Brown

Brian Z. France

William P. Graves

Sonia Green

Christy F. Harris

Morteza Hosseini-Kargar

Larree M. Renda

Larry Woodard

Aggregate Option

Awards

Outstanding at

11/30/2016 (1)(#)

Number of Shares

of Stock That Have

Not Vested (1)(#)

3,119

2,880

13,342

8,005

—

9,447

11,839

—

897

(1)

Stock and Option Awards were granted pursuant to our 2006 Long-Term Incentive Plan. See also Note 13 — Long-Term

Stock Incentive Plan to the Consolidated Financial Statements in our fiscal year 2016 Annual Report on Form 10-K for

additional information concerning this plan and related Stock and Option Awards and valuation assumptions.

COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

The Compensation Committee members whose names appear on the Compensation Committee Report below were committee

members during all of fiscal year 2016. No member of the Compensation Committee is or has been a former or current

executive officer of the Company or had any relationships requiring disclosure by the Company under the SEC’s rules requiring

disclosure of certain relationships and related party transactions. None of the Company’s executive officers served as a director

or a member of a compensation committee (or other committee serving an equivalent function) of any other entity that has or

has had one or more executive officers who served as a director or member of the Compensation Committee during the fiscal

year ended November 30, 2016.

COMPENSATION COMMITTEE REPORT

The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis with management and

recommended to the board of directors that the Compensation Discussion and Analysis be included in this information

statement and our annual report on Form 10-K.

Larree M. Renda

William P. Graves

Larry D. Woodard

Assumes $100 investment in the common stock of International Speedway Corporation, Nasdaq Stocks SIC 7900-
7999 (US Companies) and Nasdaq Stock Market Indices on November 30, 2011 (US Companies) with dividend
reinvestment.

The rules of the SEC require us to provide a line graph covering at least the last five fiscal years and comparing the yearly
percentage change in our total shareholder return on a class of our common stock with the cumulative total return of a broad
equity index, assuming reinvestment of dividends, and the cumulative total return, assuming reinvestment of dividends, of a
published industry or line-of-business index; peer issuers selected in good faith; or issuers with similar market capitalization.
The graph above compares the cumulative total five year return of our class A common stock with that of the NASDAQ Stock
Market Index (U.S. Companies) and with the 40 NASDAQ issuers (U.S. companies) listed in SIC codes 7900-7999, which
encompasses service businesses in the amusement, sports and recreation industry, including indoor operations that are not
subject to the impact of weather on operations, and pari-mutual and other wagering operations. We conduct large outdoor
sporting and entertainment events that are subject to the impact of weather. The stock price shown has been estimated from the
high and low prices for each quarter for which the close is not available. Because of the unique nature of our business and the
fact that public information is available concerning only a limited number of companies involved in the same line of business,
and no public information is available concerning other companies in our line of business, we do not believe that the
information presented above is meaningful.

ISC // 2017 INFORMATION STATEMENT // 28

Driven to be the world leader in motorsports entertainment by providing

superior, innovative and thrilling guest experiences.

VOTING PROCEDURE

With respect to the election of directors, the person receiving a plurality of the votes cast by shares entitled to vote for the
position being filled shall be elected. We know of no other items to come before the meeting other than those stated above. On
any other item that should come before the meeting, the matter shall be decided by a majority of the votes cast by shares
entitled to vote at the meeting.

In advance of the meeting we may appoint one or more inspectors of election or judges of the vote, as the case may be, to act at
the meeting or any adjournment thereof. In case any person who may be appointed as an inspector or judge fails to appear or
act, the vacancy may be filled at the meeting by the person presiding. In case of dispute the inspectors or judges, if any, shall
determine the number of shares of stock outstanding and the voting power of each, the shares of stock represented at the
meeting, the existence of a quorum, the validity and effect of proxies, and shall receive votes, ballots and consents, hear and
determine all challenges and questions arising in connection with the right to vote, count and tabulate votes, ballots and
consents, determine the result, and do such acts as are proper to conduct the election or vote with fairness to all shareholders.
On request of the person presiding at the meeting, the inspector or inspectors or judge or judges, if any, shall make a report in
writing of any challenge, question or matter determined by him or them, and execute a certificate of any fact found by him or
them.

DISSENTERS’ RIGHT OF APPRAISAL

We do not anticipate that any matter will be acted upon at the meeting that would give rise to rights of appraisal or similar
rights of dissenters.

AVAILABLE INFORMATION

We file annual, quarterly and special reports, information statements and other information with the SEC. Our SEC filings are
available to the public over the internet at the SEC’s web site at www.sec.gov. You may also read and copy any document we
file with the SEC at its public reference facilities at 100 F Street, NE, Washington, D.C. 20549. You can also obtain copies of
the documents at prescribed rates by writing to the Public Reference Section of the SEC at 100 F Street, NE, Washington D.C.
20549. Please call the SEC at 1-800-SEC-0330 for further information on the operation of the public reference facilities. You
can also obtain information about us at the offices of the Financial Industry Regulatory Authority, 1735 K St., N.W.,
Washington, D.C. 20006.

By Order of the Board of Directors

March 7, 2017

W. Garrett Crotty

Senior Vice President, Secretary and General
Counsel

ISC // 2017 INFORMATION STATEMENT // 29

Driven to be the world leader in motorsports entertainment by providing
superior, innovative and thrilling guest experiences.

INTERNATIONAL SPEEDWAY CORPORATION

2017 LONG TERM INCENTIVE PLAN

be exercised, to remove the restrictions on shares of Restricted Stock, or to modify the manner in which

Performance Units are determined and whether the Performance Units are paid in cash or Shares. The

Committee shall not, however, extend the date an Option or SAR can be exercised beyond the date the

Award expires by its original terms or the tenth anniversary of the Award’s original date of grant, whichever

ARTICLE I

ESTABLISHMENT OF THE PLAN

is earlier.

1.1

Plan Name. This Plan shall be known as the International Speedway Corporation 2017 Long

and directors who are also key employees), the non-employee directors of the Corporation and selected

1.4

Purpose. The purpose of the Plan is (i) to provide selected key employees (including officers

Term Incentive Plan.

1.2

Effective Date and Expiration of Plan.

consultants and advisors of the Corporation and its Subsidiaries with increased financial incentives to make

significant and extraordinary contributions to the long-term performance and growth of the Corporation and

its Subsidiaries; (ii) to align and join the interests of key employees, non-employee directors, consultants

(a)

The Plan shall be effective on the date the Board of Directors or the Committee

and advisors with the interests of the shareholders of the Corporation by focusing on long-term goals and

adopts the Plan (the “Effective Date”), provided that the shareholders of the Corporation approve the Plan

creation of increases in shareholder value; and (iii) to facilitate attracting and retaining key employees,

within twelve (12) months of its adoption by the Board of Directors or the Committee.

consultants and advisors of exceptional ability by providing incentive compensation opportunities

(b)

The Plan may be suspended, abandoned or terminated at any time by the Board of

Directors or the Committee. Unless sooner terminated, the Plan shall terminate on the date that is ten (10)

years after shareholder approval of the Plan (the “Term”), and no Awards may be made thereafter. The

termination of the Plan shall not affect the validity of any Award outstanding on the date of termination.

1.3

Amendment.

competitive with those of other major corporations.

ARTICLE II

DEFINITIONS

Unless otherwise defined in the Plan, as used herein, the following definitions shall apply:

(a)

“Administrator” means the Committee or the designated individual or individuals to

(a)

Subject to applicable law, the Board of Directors or the Committee may amend the

whom the Committee delegates authority under and in accordance with the Plan.

Plan or any portion thereof from time to time in such respects as the Board of Directors or the Committee

may deem advisable in order that any Awards shall conform to any change in applicable laws or regulations

or in any other respect the Board of Directors or the Committee may deem to be in the best interests of the

(b)

“Award” means, individually or collectively, any Option, SAR, Restricted Stock,

Restricted Performance Stock, Unrestricted Stock, Cash Award or Performance Unit Award.

Corporation; provided, however, that no such amendment shall, without approval of the shareholders of the

(c)

“Award Statement” means a written confirmation of an Award under the Plan

Corporation: (i) except as expressly provided in the Plan, increase the number of shares of Common Stock

furnished to the Participant.

which may be issued under the Plan; (ii) expand the types of awards available to Participants under the Plan;

(iii) materially expand the class of persons eligible to participate in the Plan; (iv) materially change the

method of determining the Option Price; (v) delete or limit the provision prohibiting the re-pricing of

Options; or (vi) extend the Term of the Plan. No such amendment, suspension, or termination shall

materially adversely alter or impair any outstanding Award without the consent of the Participant affected

thereby.

(b)

Notwithstanding Section 1.3(a), the Committee may amend or modify any

outstanding Awards in any manner to the extent that the Committee would have had the authority under the

provisions of the Plan as in effect at the time of the Award, initially to award such Awards as so modified or

amended, including, without limitation, to change the date or dates as of which such Options or SARs may

paid.

(d)

“Board of Directors” shall mean the Board of Directors of the Corporation.

(e)

“Cash Proceeds” means the cash actually received by the Corporation for the

purchase price payable upon exercise of an Option plus the maximum tax benefit that could be realized by

the Corporation as a result of the exercise of such Option, which tax benefit shall be determined by

multiplying (i) the amount that is deductible as a result of any such Option exercise (currently equal to the

amount upon which the Participant’s tax withholding obligation is calculated), times (ii) the maximum

federal corporate income tax rate for the year of exercise. To the extent a Participant pays the exercise price

and/or withholding taxes with shares, Cash Proceeds shall not be calculated with respect to the amounts so

INTERNATIONAL SPEEDWAY CORPORATION

2017 LONG TERM INCENTIVE PLAN

be exercised, to remove the restrictions on shares of Restricted Stock, or to modify the manner in which

Performance Units are determined and whether the Performance Units are paid in cash or Shares. The

Committee shall not, however, extend the date an Option or SAR can be exercised beyond the date the

Award expires by its original terms or the tenth anniversary of the Award’s original date of grant, whichever

ARTICLE I

ESTABLISHMENT OF THE PLAN

is earlier.

1.1

Plan Name. This Plan shall be known as the International Speedway Corporation 2017 Long

and directors who are also key employees), the non-employee directors of the Corporation and selected

1.4

Purpose. The purpose of the Plan is (i) to provide selected key employees (including officers

Term Incentive Plan.

1.2

Effective Date and Expiration of Plan.

consultants and advisors of the Corporation and its Subsidiaries with increased financial incentives to make

significant and extraordinary contributions to the long-term performance and growth of the Corporation and

its Subsidiaries; (ii) to align and join the interests of key employees, non-employee directors, consultants

(a)

The Plan shall be effective on the date the Board of Directors or the Committee

and advisors with the interests of the shareholders of the Corporation by focusing on long-term goals and

adopts the Plan (the “Effective Date”), provided that the shareholders of the Corporation approve the Plan

creation of increases in shareholder value; and (iii) to facilitate attracting and retaining key employees,

within twelve (12) months of its adoption by the Board of Directors or the Committee.

consultants and advisors of exceptional ability by providing incentive compensation opportunities

(b)

The Plan may be suspended, abandoned or terminated at any time by the Board of

Directors or the Committee. Unless sooner terminated, the Plan shall terminate on the date that is ten (10)

years after shareholder approval of the Plan (the “Term”), and no Awards may be made thereafter. The

termination of the Plan shall not affect the validity of any Award outstanding on the date of termination.

1.3

Amendment.

competitive with those of other major corporations.

ARTICLE II

DEFINITIONS

Unless otherwise defined in the Plan, as used herein, the following definitions shall apply:

(a)

“Administrator” means the Committee or the designated individual or individuals to

(a)

Subject to applicable law, the Board of Directors or the Committee may amend the

whom the Committee delegates authority under and in accordance with the Plan.

Plan or any portion thereof from time to time in such respects as the Board of Directors or the Committee

may deem advisable in order that any Awards shall conform to any change in applicable laws or regulations

or in any other respect the Board of Directors or the Committee may deem to be in the best interests of the

(b)

“Award” means, individually or collectively, any Option, SAR, Restricted Stock,

Restricted Performance Stock, Unrestricted Stock, Cash Award or Performance Unit Award.

Corporation; provided, however, that no such amendment shall, without approval of the shareholders of the

(c)

“Award Statement” means a written confirmation of an Award under the Plan

Corporation: (i) except as expressly provided in the Plan, increase the number of shares of Common Stock

furnished to the Participant.

which may be issued under the Plan; (ii) expand the types of awards available to Participants under the Plan;

(iii) materially expand the class of persons eligible to participate in the Plan; (iv) materially change the

method of determining the Option Price; (v) delete or limit the provision prohibiting the re-pricing of

Options; or (vi) extend the Term of the Plan. No such amendment, suspension, or termination shall

materially adversely alter or impair any outstanding Award without the consent of the Participant affected

thereby.

(b)

Notwithstanding Section 1.3(a), the Committee may amend or modify any

outstanding Awards in any manner to the extent that the Committee would have had the authority under the

provisions of the Plan as in effect at the time of the Award, initially to award such Awards as so modified or

amended, including, without limitation, to change the date or dates as of which such Options or SARs may

(d)

“Board of Directors” shall mean the Board of Directors of the Corporation.

(e)

“Cash Proceeds” means the cash actually received by the Corporation for the

purchase price payable upon exercise of an Option plus the maximum tax benefit that could be realized by

the Corporation as a result of the exercise of such Option, which tax benefit shall be determined by

multiplying (i) the amount that is deductible as a result of any such Option exercise (currently equal to the

amount upon which the Participant’s tax withholding obligation is calculated), times (ii) the maximum

federal corporate income tax rate for the year of exercise. To the extent a Participant pays the exercise price

and/or withholding taxes with shares, Cash Proceeds shall not be calculated with respect to the amounts so

paid.

(f)

“Cause,” except for purposes of Article XI, with respect to any Participant, means (i)

“Surviving Corporation”) in substantially the same proportion as their ownership of the voting securities of

the definition of “Cause” as set forth in any individual employment agreement which may be applicable to

the Corporation immediately before such merger, consolidation, or reorganization; and

such Participant, or (ii) in the case of a Participant who does not have an individual employment agreement

that defines Cause, then “Cause” means the termination of a Participant’s employment by his or her

employer by reason of his or her (1) engaging in gross misconduct that is injurious to his or her employer

and/or the Corporation, monetarily or otherwise, (2) misappropriation of funds, (3) willful misrepresentation

to the directors or officers of his or her employer and/or the Corporation, (4) gross negligence in the

and

immediately prior to the execution of the agreement providing for such merger, consolidation or

reorganization constitute a majority of the members of the Board of Directors of the Surviving Corporation;

(B)

the individuals who were members of the Board of Directors

performance of the Participant’s duties having an adverse effect on the business, operations, assets,

(C)

no person (other than the Corporation, any Subsidiary, any

properties or financial condition of his or her employer and/or the Corporation, (5) conviction of a crime

employee benefit plan, or any trust forming a part thereof) maintained by the Corporation, the Surviving

involving moral turpitude, or (6) entering into competition with his or her employer and/or the Corporation.

Corporation, any subsidiary of the Surviving Corporation, or any person or group who, immediately prior

The determination of whether a Participant’s employment was terminated for Cause shall be made by the

to such merger, consolidation, or reorganization, was the beneficial owner of 20% or more of the then

Corporation in its sole discretion.

(g)

“Change in Control” means any of the following events, unless the Board of

outstanding voting securities of the Corporation, is the beneficial owner of 10% or more of the combined

voting power of the Surviving Corporation’s then outstanding voting securities;

Directors prior to such event determines by an affirmative vote of a least 85% of the Directors that such

(D)

a transaction described in clauses (i) through (iii) above is

event should not be deemed a change in control:

referred to herein as a “Non-Control Transaction;”

(i)

An acquisition (other than directly from the Corporation) of any voting

(2)

the complete liquidation or dissolution of the Corporation; or

securities of the Corporation by any person or group who previously was the beneficial owner of less than

10% of the combined voting power of the Corporation’s outstanding voting securities and who immediately

after such acquisition is the beneficial owner of 20% or more of the combined voting power of the

Corporation’s then outstanding voting securities; provided, however, that, in determining whether a change

the assets of the Corporation to any person (other than a transfer to a Subsidiary).

(3)

an agreement for sale or other disposition of all or substantially all of

(iii) Notwithstanding the foregoing, a change of control will not be deemed to

of control has occurred, voting securities which are acquired by (1) an employee benefit plan (or a trust

occur solely because any person (a “Subject Person”) acquires beneficial ownership of more than the

forming a part thereof) maintained by the Corporation or any Subsidiary, (2) the Corporation or any

permitted amount of the outstanding voting securities of the Corporation as a result of the acquisition of

Subsidiary, (3) any individual member of a group which immediately prior to the acquisition was the

voting securities by the Corporation which, by reducing the number of voting securities outstanding,

beneficial owner of 51% or more of the combined voting power of the Corporation’s outstanding voting

increases the proportional number of shares beneficially owned by the Subject Person, provided that if a

securities, or (4) any person in connection with a Non-Control Transaction (as hereinafter defined), will not

change of control would occur (but for the operation of this sentence) as a result of the acquisition of voting

constitute an acquisition which results in a change of control;

(ii)

Approval by stockholders of the Corporation of:

securities by the Corporation, and after such share acquisition by the Corporation, the Subject Person

becomes the beneficial owner of any additional voting securities which increases the percentage of the then

outstanding voting securities beneficially owned by the Subject Person, then a change of control will be

(1)

a merger, consolidation, or reorganization involving the Corporation,

deemed to have occurred.

unless:

(A)

the shareholders of the Corporation immediately before such

Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

For the purposes of the foregoing definitions, “group” shall have the same meaning as when used in

merger, consolidation, or reorganization will own, directly or indirectly, immediately following such

merger, consolidation, or reorganization, at least 80% of the combined voting power of the outstanding

voting securities of the corporation resulting from such merger, consolidation, or reorganization (the

Notwithstanding the provisions of this Section 2(g), for any Award that is subject to the requirements

of Code Section 409A, (1) no event shall constitute a Change in Control unless the event qualifies under

Treas. Reg. § 1.409A-3(i)(5), with respect to the recipient of the Award, as a change in ownership of the

corporation, a change in effective control of the corporation, or a change in the ownership of a substantial