XML 35 R24.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Segment Information (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2016
Segment Reporting [Abstract] |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2016 |  | 2015 |  | 2016 |  | 2015
Net revenue from external customers: |  |  |  |  |  |  |
Racing: |  |  |  |  |  |  |
Churchill Downs | $ | 8.7 |  |  | $ | 7.9 |  |  | $ | 140.1 |  |  | $ | 136.7 |
Arlington | 24.0 |  |  | 25.0 |  |  | 49.8 |  |  | 48.9 |
Fair Grounds | 5.1 |  |  | 5.3 |  |  | 28.9 |  |  | 30.4 |
Calder | 0.7 |  |  | 0.6 |  |  | 2.0 |  |  | 2.0 |
Total Racing | 38.5 |  |  | 38.8 |  |  | 220.8 |  |  | 218.0 |
Casinos: |  |  |  |  |  |  |
Oxford Casino | 24.4 |  |  | 22.3 |  |  | 65.4 |  |  | 60.8 |
Riverwalk Casino | 10.6 |  |  | 12.0 |  |  | 35.7 |  |  | 37.7 |
Harlow’s Casino | 11.7 |  |  | 11.8 |  |  | 36.6 |  |  | 37.5 |
Calder Casino | 19.0 |  |  | 18.5 |  |  | 59.8 |  |  | 58.7 |
Fair Grounds Slots | 8.5 |  |  | 8.8 |  |  | 27.9 |  |  | 29.9 |
VSI | 8.6 |  |  | 9.0 |  |  | 27.9 |  |  | 27.6 |
Saratoga | 0.2 |  |  | 0.3 |  |  | 0.6 |  |  | 0.3 |
Total Casinos | 83.0 |  |  | 82.7 |  |  | 253.9 |  |  | 252.5 |
TwinSpires | 54.7 |  |  | 50.4 |  |  | 172.3 |  |  | 156.5 |
Big Fish Games: |  |  |  |  |  |  |
Social casino | 44.3 |  |  | 47.4 |  |  | 138.3 |  |  | 145.4 |
Casual and mid-core free-to-play | 56.1 |  |  | 32.6 |  |  | 162.5 |  |  | 86.5 |
Premium | 23.7 |  |  | 27.3 |  |  | 75.0 |  |  | 85.6 |
Fair value adjustments | (1.8 | ) |  | (3.7 | ) |  | (6.2 | ) |  | (17.5 | )
Total Big Fish Games | 122.3 |  |  | 103.6 |  |  | 369.6 |  |  | 300.0 |
Other Investments | 4.5 |  |  | 4.0 |  |  | 12.9 |  |  | 12.1 |
Corporate | 0.4 |  |  | 0.3 |  |  | 0.8 |  |  | 0.8 |
Net revenue from external customers | $ | 303.4 |  |  | $ | 279.8 |  |  | $ | 1,030.3 |  |  | $ | 939.9 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2016 |  | 2015 |  | 2016 |  | 2015
Intercompany net revenue: |  |  |  |  |  |  |
Racing: |  |  |  |  |  |  |
Churchill Downs | $ | 0.9 |  |  | $ | 0.7 |  |  | $ | 8.2 |  |  | $ | 6.3 |
Arlington | 1.9 |  |  | 1.7 |  |  | 4.5 |  |  | 4.1 |
Fair Grounds | — |  |  | — |  |  | 1.0 |  |  | 0.9 |
Total Racing | 2.8 |  |  | 2.4 |  |  | 13.7 |  |  | 11.3 |
TwinSpires | 0.4 |  |  | 0.3 |  |  | 1.0 |  |  | 0.8 |
Other Investments | 0.7 |  |  | 0.8 |  |  | 3.0 |  |  | 2.7 |
Eliminations | (3.9 | ) |  | (3.5 | ) |  | (17.7 | ) |  | (14.8 | )
Intercompany net revenue | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Adjusted EBITDA by segment is comprised of the following:
| Three Months Ended September 30, 2016
(in millions) | Racing |  | Casinos |  | TwinSpires |  | Big Fish Games |  | Other Investments |  | Corporate
Net revenue | $ | 41.3 |  |  | $ | 83.0 |  |  | $ | 55.1 |  |  | $ | 122.3 |  |  | $ | 5.2 |  |  | $ | 0.4 |
Taxes & purses | (11.2 | ) |  | (28.1 | ) |  | (4.0 | ) |  | — |  |  | — |  |  | — |
Platform & development fees | — |  |  | — |  |  | — |  |  | (45.2 | ) |  | — |  |  | — |
Marketing & advertising | (1.1 | ) |  | (3.0 | ) |  | (1.0 | ) |  | (26.3 | ) |  | — |  |  | — |
Salaries & benefits | (10.3 | ) |  | (13.4 | ) |  | (2.3 | ) |  | (6.2 | ) |  | (2.7 | ) |  | — |
Content expense | (3.9 | ) |  | — |  |  | (26.0 | ) |  | — |  |  | — |  |  | — |
SG&A expense | (4.0 | ) |  | (5.4 | ) |  | (3.0 | ) |  | (4.4 | ) |  | (0.9 | ) |  | (2.2 | )
Research & development | — |  |  | — |  |  | — |  |  | (8.8 | ) |  | — |  |  | — |
Other operating expense | (10.5 | ) |  | (10.0 | ) |  | (4.5 | ) |  | (3.9 | ) |  | (0.9 | ) |  | (0.2 | )
Other income (expense) | 0.1 |  |  | 7.3 |  |  | — |  |  | (0.3 | ) |  | 0.1 |  |  | — |
Change in deferred revenue(1) | n/a |  |  | n/a |  |  | n/a |  |  | (3.8 | ) |  | n/a |  |  | n/a |
Total segment Adjusted EBITDA | $ | 0.4 |  |  | $ | 30.4 |  |  | $ | 14.3 |  |  | $ | 23.4 |  |  | $ | 0.8 |  |  | $ | (2.0 | )
| Three Months Ended September 30, 2015
(in millions) | Racing |  | Casinos |  | TwinSpires |  | Big Fish Games |  | Other Investments |  | Corporate
Net revenue | $ | 41.2 |  |  | $ | 82.7 |  |  | $ | 50.7 |  |  | $ | 103.6 |  |  | $ | 4.8 |  |  | $ | 0.3 |
Taxes & purses | (11.2 | ) |  | (27.5 | ) |  | (3.6 | ) |  | — |  |  | — |  |  | — |
Platform & development fees | — |  |  | — |  |  | — |  |  | (36.1 | ) |  | — |  |  | — |
Marketing & advertising | (1.1 | ) |  | (3.2 | ) |  | (0.7 | ) |  | (21.9 | ) |  | — |  |  | — |
Salaries & benefits | (9.5 | ) |  | (12.8 | ) |  | (2.6 | ) |  | (5.4 | ) |  | (2.8 | ) |  | — |
Content expense | (3.6 | ) |  | — |  |  | (23.6 | ) |  | — |  |  | — |  |  | — |
SG&A expense | (4.3 | ) |  | (6.9 | ) |  | (3.1 | ) |  | (3.8 | ) |  | (0.7 | ) |  | (1.7 | )
Research & development | — |  |  | — |  |  | — |  |  | (9.9 | ) |  | — |  |  | — |
Other operating expense | (11.4 | ) |  | (10.0 | ) |  | (4.2 | ) |  | (3.9 | ) |  | (0.8 | ) |  | (0.2 | )
Other income (expense) | 0.2 |  |  | 4.4 |  |  | 0.2 |  |  | (0.3 | ) |  | — |  |  | — |
Change in deferred revenue(1) | n/a |  |  | n/a |  |  | n/a |  |  | 10.9 |  |  | n/a |  |  | n/a |
Total segment Adjusted EBITDA | $ | 0.3 |  |  | $ | 26.7 |  |  | $ | 13.1 |  |  | $ | 33.2 |  |  | $ | 0.5 |  |  | $ | (1.6 | )
(1) Change in deferred revenue is included in Adjusted EBITDA only for Big Fish Games.
| Nine Months Ended September 30, 2016
(in millions) | Racing |  | Casinos |  | TwinSpires |  | Big Fish Games |  | Other Investments |  | Corporate
Net revenue | $ | 234.5 |  |  | $ | 253.9 |  |  | $ | 173.3 |  |  | $ | 369.6 |  |  | $ | 15.9 |  |  | $ | 0.8 |
Taxes & purses | (52.7 | ) |  | (84.6 | ) |  | (8.8 | ) |  | — |  |  | — |  |  | — |
Platform & development fees | — |  |  | — |  |  | — |  |  | (135.2 | ) |  | — |  |  | — |
Marketing & advertising | (3.8 | ) |  | (9.5 | ) |  | (5.2 | ) |  | (106.2 | ) |  | — |  |  | — |
Salaries & benefits | (31.4 | ) |  | (38.2 | ) |  | (6.9 | ) |  | (18.4 | ) |  | (8.2 | ) |  | — |
Content expense | (12.0 | ) |  | — |  |  | (83.4 | ) |  | — |  |  | — |  |  | — |
SG&A expense | (11.9 | ) |  | (15.8 | ) |  | (8.6 | ) |  | (13.6 | ) |  | (2.5 | ) |  | (6.2 | )
Research & development | — |  |  | — |  |  | — |  |  | (29.3 | ) |  | — |  |  | — |
Other operating expense | (38.8 | ) |  | (29.4 | ) |  | (15.6 | ) |  | (11.8 | ) |  | (2.6 | ) |  | (0.5 | )
Other income (expense) | 0.4 |  |  | 21.6 |  |  | — |  |  | (1.2 | ) |  | 0.3 |  |  | — |
Change in deferred revenue(1) | n/a |  |  | n/a |  |  | n/a |  |  | 5.0 |  |  | n/a |  |  | n/a |
Total segment Adjusted EBITDA | $ | 84.3 |  |  | $ | 98.0 |  |  | $ | 44.8 |  |  | $ | 58.9 |  |  | $ | 2.9 |  |  | $ | (5.9 | )
| Nine Months Ended September 30, 2015
(in millions) | Racing |  | Casinos |  | TwinSpires |  | Big Fish Games |  | Other Investments |  | Corporate
Net revenue | $ | 229.3 |  |  | $ | 252.5 |  |  | $ | 157.3 |  |  | $ | 300.0 |  |  | $ | 14.8 |  |  | $ | 0.8 |
Taxes & purses | (52.3 | ) |  | (83.4 | ) |  | (8.2 | ) |  | — |  |  | — |  |  | — |
Platform & development fees | — |  |  | — |  |  | — |  |  | (103.0 | ) |  | — |  |  | — |
Marketing & advertising | (5.4 | ) |  | (9.4 | ) |  | (3.7 | ) |  | (76.7 | ) |  | — |  |  | — |
Salaries & benefits | (30.3 | ) |  | (38.2 | ) |  | (7.5 | ) |  | (16.5 | ) |  | (8.3 | ) |  | — |
Content expense | (11.3 | ) |  | — |  |  | (75.9 | ) |  | — |  |  | — |  |  | — |
SG&A expense | (13.0 | ) |  | (17.9 | ) |  | (8.6 | ) |  | (12.6 | ) |  | (1.8 | ) |  | (4.5 | )
Research & development | — |  |  | — |  |  | — |  |  | (30.0 | ) |  | — |  |  | — |
Other operating expense | (41.2 | ) |  | (31.3 | ) |  | (14.1 | ) |  | (10.9 | ) |  | (2.4 | ) |  | (1.5 | )
Other income (expense) | 0.5 |  |  | 14.3 |  |  | — |  |  | (0.8 | ) |  | 0.1 |  |  | — |
Change in deferred revenue(1) | n/a |  |  | n/a |  |  | n/a |  |  | 32.0 |  |  | n/a |  |  | n/a |
Total segment Adjusted EBITDA | $ | 76.3 |  |  | $ | 86.6 |  |  | $ | 39.3 |  |  | $ | 81.5 |  |  | $ | 2.4 |  |  | $ | (5.2 | )
(1) Change in deferred revenue is included in Adjusted EBITDA only for Big Fish Games.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2016 |  | 2015 |  | 2016 |  | 2015
Reconciliation of segment Adjusted EBITDA to comprehensive income: |  |  |  |  |  |  |
Racing | $ | 0.4 |  |  | $ | 0.3 |  |  | $ | 84.3 |  |  | $ | 76.3 |
Casinos | 30.4 |  |  | 26.7 |  |  | 98.0 |  |  | 86.6 |
TwinSpires | 14.3 |  |  | 13.1 |  |  | 44.8 |  |  | 39.3 |
Big Fish Games | 23.4 |  |  | 33.2 |  |  | 58.9 |  |  | 81.5 |
Other Investments | 0.8 |  |  | 0.5 |  |  | 2.9 |  |  | 2.4 |
Corporate | (2.0 | ) |  | (1.6 | ) |  | (5.9 | ) |  | (5.2 | )
Total segment Adjusted EBITDA | 67.3 |  |  | 72.2 |  |  | 283.0 |  |  | 280.9 |
Change in Big Fish Games deferred revenue | 3.8 |  |  | (10.9 | ) |  | (5.0 | ) |  | (32.0 | )
Selling, general and administrative: |  |  |  |  |  |  |
Stock-based compensation expense | (4.9 | ) |  | (4.5 | ) |  | (14.3 | ) |  | (10.6 | )
Other charges | (3.1 | ) |  | — |  |  | (3.4 | ) |  | — |
Other income, expense: |  |  |  |  |  |  |
Equity investments - interest, depreciation and amortization expense | (2.5 | ) |  | (2.2 | ) |  | (7.5 | ) |  | (6.4 | )
Other (charges) and recoveries, net | — |  |  | (0.1 | ) |  | (0.4 | ) |  | 6.0 |
Big Fish Games acquisition expense | (1.1 | ) |  | (2.8 | ) |  | (4.9 | ) |  | (17.4 | )
Calder exit costs | (0.5 | ) |  | (12.7 | ) |  | (2.4 | ) |  | (13.5 | )
Depreciation and amortization | (27.5 | ) |  | (27.4 | ) |  | (81.4 | ) |  | (82.1 | )
Interest (expense) income, net | (11.1 | ) |  | (6.7 | ) |  | (32.8 | ) |  | (21.1 | )
Income before income tax provision | 20.4 |  |  | 4.9 |  |  | 130.9 |  |  | 103.8 |
Income tax provision | (11.7 | ) |  | (0.7 | ) |  | (49.6 | ) |  | (46.1 | )
Net income | 8.7 |  |  | 4.2 |  |  | 81.3 |  |  | 57.7 |
Foreign currency translation, net of tax | — |  |  | — |  |  | 0.2 |  |  | (0.4 | )
Comprehensive income | $ | 8.7 |  |  | $ | 4.2 |  |  | $ | 81.5 |  |  | $ | 57.3 |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2016 |  | 2015 |  | 2016 |  | 2015
Casinos | $ | 4.8 |  |  | $ | 2.3 |  |  | $ | 13.6 |  |  | $ | 7.7 |
Other Investments | 0.1 |  |  | — |  |  | (0.1 | ) |  | 0.5 |
| $ | 4.9 |  |  | $ | 2.3 |  |  | $ | 13.5 |  |  | $ | 8.2 |
Reconciliation of Assets from Segment to Consolidated |
| Nine Months Ended September 30,
(in millions) | 2016 |  | 2015
Capital expenditures: |  |  |
Racing | $ | 23.4 |  |  | $ | 8.3 |
Casinos | 9.7 |  |  | 15.4 |
TwinSpires | 5.4 |  |  | 3.1 |
Big Fish Games | 3.6 |  |  | 3.0 |
Other Investments | 0.8 |  |  | 0.4 |
Corporate | 1.2 |  |  | 0.6 |
| $ | 44.1 |  |  | $ | 30.8 |
(in millions) | September 30, 2016 |  | December 31, 2015
Total assets: |  |  |
Racing | $ | 424.4 |  |  | $ | 437.1 |
Casinos | 621.8 |  |  | 631.3 |
TwinSpires | 208.1 |  |  | 202.4 |
Big Fish Games | 923.0 |  |  | 947.1 |
Other Investments | 10.9 |  |  | 12.2 |
Corporate | 36.5 |  |  | 47.3 |
| $ | 2,224.7 |  |  | $ | 2,277.4 |

X
- Definition Tabular disclosure of all significant reconciling items in the reconciliation of total assets from reportable segments to the entity's consolidated assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 Reference 2: 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=68060357&loc=d3e8924-108599 + Details
Name: | us-gaap_ReconciliationOfAssetsFromSegmentToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of each significant reconciling item, other than profit (loss), revenues, or assets, in the reconciliation of totals of such items in reportable segments to the entity's corresponding consolidated amount. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 Reference 2: 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=68060357&loc=d3e8924-108599 + Details
Name: | us-gaap_ReconciliationOfOtherSignificantReconcilingItemsFromSegmentsToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of all significant reconciling items in the reconciliation of total revenues from reportable segments to the entity's consolidated revenues. + References Reference 1: 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=68060357&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
Name: | us-gaap_ReconciliationOfRevenueFromSegmentsToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: 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=68060357&loc=d3e8906-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8813-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8736-108599 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration