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Segment Information | 6 Months Ended
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Jun. 30, 2012
Segment Reporting [Abstract] |
Segment Information | SEGMENT INFORMATION The Company operates in the following four segments: (1) Racing Operations, which includes Churchill Downs Racetrack, Arlington Park Race Course and its twelve OTBs, Calder Race Course and Fair Grounds Race Course and the pari-mutuel activity generated at its eleven OTBs; (2) Gaming, which includes video poker and gaming operations at Calder Casino, Fair Grounds Slots, Harlow’s and Video Services, LLC (“VSI”); (3) Online Business, which includes TwinSpires, our Advance Deposit Wagering (“ADW”) business, Fair Grounds Account Wagering, Bloodstock Research Information Services and Velocity, a business focused on high wagering-volume international customers, as well as the Company's equity investment in HRTV, LLC; and (4) Other Investments, which includes United Tote, MVG, Bluff and the Company's other minor investments. Eliminations include the elimination of intersegment transactions. The accounting policies of the segments are the same as those described in the “Summary of Significant Accounting Policies” in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. The Company uses EBITDA (defined as earnings before interest, taxes, depreciation and amortization), a non-GAAP measure, as a key performance measure of the results of operations for purposes of evaluating performance internally. Management believes that the use of this measure enables management and investors to evaluate and compare from period to period the Company’s operating performance in a meaningful and consistent manner. However, EBITDA should not be considered as an alternative to, or more meaningful than, net earnings (as determined in accordance with accounting principles generally accepted in the United States of America) as a measure of our operating results. A reconciliation of EBITDA to net earnings is provided in the following table. The table below presents information about the reported segments for the three and six months ended June 30, 2012 and 2011 (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2012 |  | 2011 |  | 2012 |  | 2011
Net revenues from external customers: |  |  |  |  |  |  |
Churchill Downs | $ | 102,874 |  |  | $ | 96,005 |  |  | $ | 105,424 |  |  | $ | 98,410 |
Arlington Park | 22,807 |  |  | 22,050 |  |  | 32,224 |  |  | 31,398 |
Calder | 22,873 |  |  | 19,412 |  |  | 24,741 |  |  | 22,080 |
Fair Grounds | 11,886 |  |  | 10,904 |  |  | 28,233 |  |  | 28,194 |
Total Racing Operations | 160,440 |  |  | 148,371 |  |  | 190,622 |  |  | 180,082 |
Calder Casino | 19,188 |  |  | 21,711 |  |  | 41,067 |  |  | 42,323 |
Fair Grounds Slots | 9,586 |  |  | 9,458 |  |  | 21,617 |  |  | 21,630 |
VSI | 8,814 |  |  | 8,789 |  |  | 18,377 |  |  | 18,216 |
Harlow's Casino | 13,783 |  |  | 9,501 |  |  | 29,646 |  |  | 26,377 |
Total Gaming | 51,371 |  |  | 49,459 |  |  | 110,707 |  |  | 108,546 |
Online Business | 52,702 |  |  | 46,526 |  |  | 96,737 |  |  | 83,329 |
Other Investments | 5,967 |  |  | 5,192 |  |  | 10,469 |  |  | 9,074 |
Corporate | 336 |  |  | 138 |  |  | 477 |  |  | 209 |
Net revenues from external customers | $ | 270,816 |  |  | $ | 249,686 |  |  | $ | 409,012 |  |  | $ | 381,240 |
Intercompany net revenues: |  |  |  |  |  |  |
Churchill Downs | $ | 4,082 |  |  | $ | 3,464 |  |  | $ | 4,268 |  |  | $ | 3,612 |
Arlington Park | 1,496 |  |  | 1,159 |  |  | 2,052 |  |  | 1,692 |
Calder | 586 |  |  | 486 |  |  | 596 |  |  | 547 |
Fair Grounds | 75 |  |  | — |  |  | 822 |  |  | 778 |
Total Racing Operations | 6,239 |  |  | 5,109 |  |  | 7,738 |  |  | 6,629 |
Online Business | 230 |  |  | 219 |  |  | 436 |  |  | 415 |
Other Investments | 1,072 |  |  | 606 |  |  | 1,822 |  |  | 759 |
Eliminations | (7,541 | ) |  | (5,934 | ) |  | (9,996 | ) |  | (7,803 | )
Net revenues | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Reconciliation of Segment EBITDA to net earnings: |  |  |  |  |  |  |
Racing Operations | $ | 65,390 |  |  | $ | 58,815 |  |  | $ | 53,851 |  |  | $ | 46,327 |
Gaming | 19,438 |  |  | 12,798 |  |  | 39,827 |  |  | 30,331 |
Online Business | 12,539 |  |  | 11,308 |  |  | 22,960 |  |  | 18,853 |
Other Investments | (104 | ) |  | 677 |  |  | (434 | ) |  | 435 |
Corporate | (1,969 | ) |  | 1,385 |  |  | (3,570 | ) |  | 211 |
Total EBITDA | 95,294 |  |  | 84,983 |  |  | 112,634 |  |  | 96,157 |
Depreciation and amortization | (13,638 | ) |  | (13,890 | ) |  | (27,445 | ) |  | (27,876 | )
Interest income (expense), net | (947 | ) |  | (3,405 | ) |  | (2,152 | ) |  | (5,797 | )
Income tax provision | (32,133 | ) |  | (27,698 | ) |  | (33,107 | ) |  | (25,680 | )
Earnings from continuing operations | 48,576 |  |  | 39,990 |  |  | 49,930 |  |  | 36,804 |
Discontinued operations, net of income taxes | — |  |  | 157 |  |  | (1 | ) |  | 158 |
Net earnings and comprehensive income | $ | 48,576 |  |  | $ | 40,147 |  |  | $ | 49,929 |  |  | $ | 36,962 |
The table below presents information about equity in earnings (losses) of unconsolidated investments included in the Company’s reported segments for the three and six months ended June 30, 2012 and 2011 (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2012 |  | 2011 |  | 2012 |  | 2011
Online Business | $ | (516 | ) |  | $ | 393 |  |  | $ | (554 | ) |  | $ | (53 | )
Other Investments | (48 | ) |  | 67 |  |  | (230 | ) |  | 97 |
| $ | (564 | ) |  | $ | 460 |  |  | $ | (784 | ) |  | $ | 44 |
The table below presents total asset information for the reported segments (in thousands):
| June 30, 2012 |  | December 31, 2011
Total assets: |  |  |
Racing Operations | $ | 522,980 |  |  | $ | 509,133 |
Gaming | 215,339 |  |  | 242,174 |
Online Business | 189,516 |  |  | 183,397 |
Other Investments | 31,580 |  |  | 13,318 |
| $ | 959,415 |  |  | $ | 948,022 |
The table below presents total capital expenditure information for the reported segments (in thousands):
| Six Months Ended June 30,
| 2012 |  | 2011
Capital expenditures: |  |  |
Racing Operations | $ | 4,532 |  |  | $ | 3,681 |
Gaming | 3,250 |  |  | 4,736 |
Online Business | 2,306 |  |  | 842 |
Other Investments | 6,385 |  |  | 1,608 |
| $ | 16,473 |  |  | $ | 10,867 |
During the six months ended June 30, 2012, the Company incurred $3.1 million of capital expenditures for its corporate office relocation, which is included in Other Investments.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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