XML 59 R45.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Segment Information (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2016
Segment Reporting [Abstract] |
Net Revenue From External Customers and Intercompany Revenue From Each Operating Segment | The tables below present net revenue from external customers and intercompany revenue from each of our operating segments, Adjusted EBITDA by segment and reconciles Comprehensive Income to Adjusted EBITDA:
| Years Ended December 31,
(in millions) | 2016 |  | 2015 |  | 2014
Net revenue from external customers: |  |  |  |  |
Racing: |  |  |  |  |
Churchill Downs | $ | 155.2 |  |  | $ | 151.1 |  |  | $ | 143.2 |
Arlington | 55.3 |  |  | 54.4 |  |  | 60.3 |
Fair Grounds | 38.0 |  |  | 39.8 |  |  | 38.6 |
Calder | 2.6 |  |  | 2.7 |  |  | 19.3 |
Total Racing | 251.1 |  |  | 248.0 |  |  | 261.4 |
Casinos: |  |  |  |  |
Oxford Casino | 84.6 |  |  | 80.4 |  |  | 76.5 |
Riverwalk Casino | 46.1 |  |  | 49.8 |  |  | 50.1 |
Harlow’s Casino | 48.4 |  |  | 49.0 |  |  | 50.2 |
Calder Casino | 79.1 |  |  | 77.4 |  |  | 77.0 |
Fair Grounds Slots | 36.9 |  |  | 39.0 |  |  | 40.8 |
VSI | 36.9 |  |  | 36.9 |  |  | 33.7 |
Saratoga | 0.8 |  |  | 0.4 |  |  | — |
Total Casinos | 332.8 |  |  | 332.9 |  |  | 328.3 |
TwinSpires | 220.6 |  |  | 200.2 |  |  | 191.0 |
Big Fish Games: |  |  |  |  |
Social casino | 182.5 |  |  | 193.4 |  |  | 7.6 |
Casual and mid-core free-to-play | 212.7 |  |  | 125.3 |  |  | 2.1 |
Premium | 91.0 |  |  | 95.0 |  |  | 4.2 |
Total Big Fish Games | 486.2 |  |  | 413.7 |  |  | 13.9 |
Other Investments | 16.9 |  |  | 16.6 |  |  | 16.5 |
Corporate | 1.0 |  |  | 0.9 |  |  | 1.1 |
Net revenue from external customers | $ | 1,308.6 |  |  | $ | 1,212.3 |  |  | $ | 812.2 |
Intercompany net revenue: |  |  |  |  |
Racing: |  |  |  |  |
Churchill Downs | $ | 10.0 |  |  | $ | 7.8 |  |  | $ | 7.0 |
Arlington | 5.5 |  |  | 5.1 |  |  | 5.8 |
Fair Grounds | 1.5 |  |  | 1.3 |  |  | 1.1 |
Calder | — |  |  | — |  |  | 0.7 |
Total Racing | 17.0 |  |  | 14.2 |  |  | 14.6 |
TwinSpires | 1.3 |  |  | 1.1 |  |  | 1.0 |
Other Investments | 3.9 |  |  | 3.5 |  |  | 4.1 |
Eliminations | (22.2 | ) |  | (18.8 | ) |  | (19.7 | )
Intercompany net revenue | $ | — |  |  | $ | — |  |  | $ | — |
Schedule of Segment Reporting Information |
| Years Ended December 31,
(in millions) | 2016 |  | 2015 |  | 2014
Reconciliation of Comprehensive Income to Adjusted EBITDA: |  |  |  |  |
Comprehensive income | $ | 107.5 |  |  | $ | 64.7 |  |  | $ | 46.3 |
Foreign currency translation, net of tax | (0.2 | ) |  | 0.5 |  |  | 0.1 |
Net change in pension benefits, net of tax | 0.8 |  |  | — |  |  | — |
Net income | 108.1 |  |  | 65.2 |  |  | 46.4 |
Additions: |  |  |  |  |
Depreciation and amortization | 108.6 |  |  | 109.7 |  |  | 68.3 |
Interest expense | 43.7 |  |  | 28.6 |  |  | 20.8 |
Income tax provision | 60.0 |  |  | 46.9 |  |  | 30.1 |
EBITDA | $ | 320.4 |  |  | $ | 250.4 |  |  | $ | 165.6 |
Adjustments to EBITDA: |  |  |  |  |
Selling, general and administrative: |  |  |  |  |
Stock-based compensation expense | 18.9 |  |  | 13.8 |  |  | 11.9 |
Other charges | 2.5 |  |  | — |  |  | (0.4 | )
TwinSpires operating expense | — |  |  | — |  |  | 3.2 |
Other income, expense: |  |  |  |  |
Interest, depreciation and amortization expense related to equity investments | 10.0 |  |  | 8.5 |  |  | 8.7 |
Other charges and recoveries, net | 0.5 |  |  | (5.8 | ) |  | 2.6 |
Acquisition expense, net | 3.4 |  |  | 21.7 |  |  | 10.2 |
Gain on Calder land sale | (23.7 | ) |  | — |  |  | — |
Calder exit costs | 2.5 |  |  | 13.9 |  |  | 2.3 |
Total adjustments to EBITDA | 14.1 |  |  | 52.1 |  |  | 38.5 |
Adjusted EBITDA | $ | 334.5 |  |  | $ | 302.5 |  |  | $ | 204.1 |
Adjusted EBITDA by segment: |  |  |  |  |
Racing | $ | 79.7 |  |  | $ | 71.8 |  |  | $ | 61.2 |
Casinos | 125.8 |  |  | 114.9 |  |  | 107.2 |
TwinSpires | 55.2 |  |  | 48.6 |  |  | 39.8 |
Big Fish Games | 79.1 |  |  | 68.5 |  |  | (0.7 | )
Other Investments | 2.7 |  |  | 2.9 |  |  | 1.6 |
Corporate | (8.0 | ) |  | (4.2 | ) |  | (5.0 | )
Adjusted EBITDA | $ | 334.5 |  |  | $ | 302.5 |  |  | $ | 204.1 |
Adjusted EBITDA by segment is comprised of the following:
| Year Ended December 31, 2016
(in millions) | Racing |  | Casinos |  | TwinSpires |  | Big Fish Games |  | Other Investments |  | Corporate
Net revenue | $ | 268.1 |  |  | $ | 332.8 |  |  | $ | 221.9 |  |  | $ | 486.2 |  |  | $ | 20.8 |  |  | $ | 1.0 |
Taxes & purses | (64.2 | ) |  | (110.9 | ) |  | (11.7 | ) |  | — |  |  | — |  |  | — |
Platform & development fees | — |  |  | — |  |  | — |  |  | (179.9 | ) |  | — |  |  | — |
Marketing & advertising | (4.6 | ) |  | (12.7 | ) |  | (6.3 | ) |  | (127.9 | ) |  | — |  |  | — |
Salaries & benefits | (40.9 | ) |  | (50.8 | ) |  | (9.4 | ) |  | (25.0 | ) |  | (10.9 | ) |  | — |
Content expense | (15.6 | ) |  | — |  |  | (107.6 | ) |  | — |  |  | — |  |  | — |
SG&A expense | (16.2 | ) |  | (21.2 | ) |  | (11.9 | ) |  | (18.5 | ) |  | (3.4 | ) |  | (8.6 | )
Research & development | — |  |  | — |  |  | — |  |  | (39.0 | ) |  | — |  |  | — |
Other operating expense | (47.4 | ) |  | (39.1 | ) |  | (19.8 | ) |  | (15.9 | ) |  | (4.1 | ) |  | (0.6 | )
Other income (expense) | 0.5 |  |  | 27.7 |  |  | — |  |  | (0.9 | ) |  | 0.3 |  |  | 0.2 |
Adjusted EBITDA | $ | 79.7 |  |  | $ | 125.8 |  |  | $ | 55.2 |  |  | $ | 79.1 |  |  | $ | 2.7 |  |  | $ | (8.0 | )
| Year Ended December 31, 2015
(in millions) | Racing |  | Casinos |  | TwinSpires |  | Big Fish Games |  | Other Investments |  | Corporate
Net revenue | $ | 262.2 |  |  | $ | 332.9 |  |  | $ | 201.3 |  |  | $ | 413.7 |  |  | $ | 20.1 |  |  | $ | 0.9 |
Taxes & purses | (63.6 | ) |  | (109.9 | ) |  | (10.6 | ) |  | — |  |  | — |  |  | — |
Platform & development fees | — |  |  | — |  |  | — |  |  | (143.6 | ) |  | — |  |  | — |
Marketing & advertising | (6.1 | ) |  | (12.4 | ) |  | (4.8 | ) |  | (107.7 | ) |  | — |  |  | — |
Salaries & benefits | (39.2 | ) |  | (49.7 | ) |  | (9.9 | ) |  | (22.3 | ) |  | (11.1 | ) |  | — |
Content expense | (14.6 | ) |  | — |  |  | (97.9 | ) |  | — |  |  | — |  |  | — |
SG&A expense | (16.6 | ) |  | (24.1 | ) |  | (11.5 | ) |  | (16.8 | ) |  | (2.5 | ) |  | (6.3 | )
Research & development | — |  |  | — |  |  | — |  |  | (39.4 | ) |  | — |  |  | — |
Other operating expense | (50.9 | ) |  | (41.3 | ) |  | (18.0 | ) |  | (14.8 | ) |  | (3.8 | ) |  | 1.1 |
Other income (expense) | 0.6 |  |  | 19.4 |  |  | — |  |  | (0.6 | ) |  | 0.2 |  |  | 0.1 |
Adjusted EBITDA | $ | 71.8 |  |  | $ | 114.9 |  |  | $ | 48.6 |  |  | $ | 68.5 |  |  | $ | 2.9 |  |  | $ | (4.2 | )
| Year Ended December 31, 2014
(in millions) | Racing |  | Casinos |  | TwinSpires |  | Big Fish Games |  | Other Investments |  | Corporate
Net revenue | $ | 276.0 |  |  | $ | 328.3 |  |  | $ | 192.0 |  |  | $ | 13.9 |  |  | $ | 20.6 |  |  | $ | 1.1 |
Taxes & purses | (72.7 | ) |  | (108.0 | ) |  | (9.2 | ) |  | — |  |  | — |  |  | — |
Platform & development fees | — |  |  | — |  |  | — |  |  | (5.1 | ) |  | — |  |  | — |
Marketing & advertising | (6.1 | ) |  | (12.5 | ) |  | (4.7 | ) |  | (5.7 | ) |  | — |  |  | — |
Salaries & benefits | (45.1 | ) |  | (49.1 | ) |  | (11.5 | ) |  | (2.6 | ) |  | (11.8 | ) |  | (0.2 | )
Content expense | (19.0 | ) |  | — |  |  | (92.6 | ) |  | — |  |  | — |  |  | — |
SG&A expense | (18.4 | ) |  | (25.5 | ) |  | (13.0 | ) |  | (0.8 | ) |  | (2.8 | ) |  | (5.3 | )
Research & development | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other operating expense | (54.1 | ) |  | (43.5 | ) |  | (21.2 | ) |  | (0.4 | ) |  | (4.5 | ) |  | (0.7 | )
Other income (expense) | 0.6 |  |  | 17.5 |  |  | — |  |  | — |  |  | 0.1 |  |  | 0.1 |
Adjusted EBITDA | $ | 61.2 |  |  | $ | 107.2 |  |  | $ | 39.8 |  |  | $ | (0.7 | ) |  | $ | 1.6 |  |  | $ | (5.0 | )
The table below presents information about earnings (losses) from equity investments, net included in our reported segments:
| Years Ended December 31,
(in millions) | 2016 |  | 2015 |  | 2014
Casinos | $ | 17.4 |  |  | $ | 10.9 |  |  | $ | 8.9 |
TwinSpires | — |  |  | — |  |  | (0.1 | )
Other Investments | — |  |  | 0.3 |  |  | (2.5 | )
| $ | 17.4 |  |  | $ | 11.2 |  |  | $ | 6.3 |
Schedule of Total Assets and Capital Expenditures by Operating Segment | The table below presents total asset information for each of our operating segments:
| As of December 31,
(in millions) | 2016 |  | 2015
Total assets: |  |  |
Racing | $ | 454.6 |  |  | $ | 437.1 |
Casinos | 628.7 |  |  | 631.3 |
TwinSpires | 209.9 |  |  | 202.4 |
Big Fish Games | 893.8 |  |  | 947.1 |
Other Investments | 11.1 |  |  | 12.2 |
Corporate | 56.3 |  |  | 47.3 |
| $ | 2,254.4 |  |  | $ | 2,277.4 |
The table below presents total capital expenditures for each of our operating segments:
| Years Ended December 31,
(in millions) | 2016 |  | 2015 |  | 2014
Capital expenditures: |  |  |  |  |
Racing | $ | 26.1 |  |  | $ | 12.3 |  |  | $ | 33.9 |
Casinos | 13.9 |  |  | 18.8 |  |  | 7.7 |
TwinSpires | 7.0 |  |  | 4.3 |  |  | 5.8 |
Big Fish Games | 5.5 |  |  | 6.4 |  |  | 0.1 |
Other Investments | 1.0 |  |  | 0.8 |  |  | 5.3 |
Corporate | 1.2 |  |  | 0.9 |  |  | 1.7 |
| $ | 54.7 |  |  | $ | 43.5 |  |  | $ | 54.5 |

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 entity-wide revenues from external customers for each product or service or each group of similar products or services if the information is not provided as part of the reportable operating segment information. + References Reference 1: 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=68060357&loc=d3e9031-108599 + Details
Name: | us-gaap_ScheduleOfEntityWideInformationRevenueFromExternalCustomersByProductsAndServicesTextBlock
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