XML 41 R30.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Segment Information (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2018
Segment Reporting [Abstract] |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] |
| Three Months Ended June 30, |  | Six Months Ended June 30,
(in millions) | 2018 |  | 2017 |  | 2018 |  | 2017
Net revenue from external customers: |  |  |  |  |  |  |
Racing: |  |  |  |  |  |  |
Churchill Downs | $ | 154.9 |  |  | $ | 136.7 |  |  | $ | 156.9 |  |  | $ | 139.0 |
Arlington | 17.7 |  |  | 18.0 |  |  | 26.0 |  |  | 26.5 |
Fair Grounds | 9.2 |  |  | 10.0 |  |  | 22.0 |  |  | 22.5 |
Calder | 0.7 |  |  | 0.6 |  |  | 1.3 |  |  | 1.2 |
Total Racing | 182.5 |  |  | 165.3 |  |  | 206.2 |  |  | 189.2 |
TwinSpires | 93.7 |  |  | 80.5 |  |  | 156.9 |  |  | 132.5 |
Casino: |  |  |  |  |  |  |
Oxford Casino | 26.2 |  |  | 23.1 |  |  | 50.4 |  |  | 44.0 |
Riverwalk Casino | 13.6 |  |  | 12.0 |  |  | 28.0 |  |  | 23.5 |
Harlow’s Casino | 12.5 |  |  | 12.5 |  |  | 25.8 |  |  | 26.0 |
Calder Casino | 25.3 |  |  | 21.8 |  |  | 49.6 |  |  | 43.2 |
Fair Grounds Slots | 9.2 |  |  | 8.8 |  |  | 19.8 |  |  | 19.0 |
VSI | 11.1 |  |  | 9.8 |  |  | 22.1 |  |  | 19.5 |
Saratoga | 0.3 |  |  | 0.3 |  |  | 0.6 |  |  | 0.6 |
Total Casino | 98.2 |  |  | 88.3 |  |  | 196.3 |  |  | 175.8 |
Other Investments | 5.0 |  |  | 5.2 |  |  | 9.3 |  |  | 9.3 |
Net revenue from external customers | $ | 379.4 |  |  | $ | 339.3 |  |  | $ | 568.7 |  |  | $ | 506.8 |
| Three Months Ended June 30, |  | Six Months Ended June 30,
(in millions) | 2018 |  | 2017 |  | 2018 |  | 2017
Intercompany net revenue: |  |  |  |  |  |  |
Racing: |  |  |  |  |  |  |
Churchill Downs | $ | 9.4 |  |  | $ | 8.4 |  |  | $ | 9.7 |  |  | $ | 8.7 |
Arlington | 2.1 |  |  | 1.9 |  |  | 3.3 |  |  | 2.9 |
Fair Grounds | 0.1 |  |  | 0.1 |  |  | 1.1 |  |  | 1.0 |
Total Racing | 11.6 |  |  | 10.4 |  |  | 14.1 |  |  | 12.6 |
TwinSpires | 0.4 |  |  | 0.3 |  |  | 0.8 |  |  | 0.6 |
Other Investments | 1.5 |  |  | 1.3 |  |  | 2.7 |  |  | 2.7 |
Eliminations | (13.5 | ) |  | (12.0 | ) |  | (17.6 | ) |  | (15.9 | )
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 June 30, 2018
(in millions) | Racing |  | TwinSpires |  | Casino |  | Other Investments |  | Corporate
Net revenue | $ | 194.1 |  |  | $ | 94.1 |  |  | $ | 98.2 |  |  | $ | 6.5 |  |  | $ | — |
Taxes & purses | (34.4 | ) |  | (4.6 | ) |  | (33.4 | ) |  | — |  |  | — |
Marketing & advertising | (3.6 | ) |  | (3.1 | ) |  | (3.5 | ) |  | (0.1 | ) |  | — |
Salaries & benefits | (15.3 | ) |  | (2.4 | ) |  | (13.6 | ) |  | (3.6 | ) |  | — |
Content expense | (4.7 | ) |  | (49.8 | ) |  | — |  |  | — |  |  | — |
SG&A expense | (4.6 | ) |  | (2.9 | ) |  | (5.6 | ) |  | (0.7 | ) |  | (2.6 | )
Other operating expense | (22.8 | ) |  | (8.2 | ) |  | (11.1 | ) |  | (1.1 | ) |  | (0.1 | )
Other income | 0.4 |  |  | — |  |  | 12.9 |  |  | 0.1 |  |  | — |
Adjusted EBITDA | $ | 109.1 |  |  | $ | 23.1 |  |  | $ | 43.9 |  |  | $ | 1.1 |  |  | $ | (2.7 | )
| Three Months Ended June 30, 2017
(in millions) | Racing |  | TwinSpires |  | Casino |  | Other Investments |  | Corporate (a)
Net revenue | $ | 175.7 |  |  | $ | 80.8 |  |  | $ | 88.3 |  |  | $ | 6.5 |  |  | $ | — |
Taxes & purses | (32.9 | ) |  | (4.1 | ) |  | (29.7 | ) |  | — |  |  | — |
Marketing & advertising | (2.2 | ) |  | (4.6 | ) |  | (3.0 | ) |  | — |  |  | — |
Salaries & benefits | (13.5 | ) |  | (2.6 | ) |  | (13.4 | ) |  | (3.3 | ) |  | — |
Content expense | (4.7 | ) |  | (40.2 | ) |  | — |  |  | — |  |  | — |
SG&A expense | (4.2 | ) |  | (3.0 | ) |  | (5.6 | ) |  | (0.7 | ) |  | (2.5 | )
Other operating expense | (20.0 | ) |  | (7.0 | ) |  | (9.8 | ) |  | (1.2 | ) |  | (0.3 | )
Other income | 0.5 |  |  | — |  |  | 10.7 |  |  | — |  |  | — |
Adjusted EBITDA | $ | 98.7 |  |  | $ | 19.3 |  |  | $ | 37.5 |  |  | $ | 1.3 |  |  | $ | (2.8 | )
(a) The Corporate segment includes corporate and other certain expenses of $0.7 million for the three months ended June 30, 2017 that have not been allocated to Big Fish Games as a result of the Big Fish Transaction. The Big Fish Games segment is reported as held for sale and discontinued operations in the accompanying condensed consolidated financial statements and these notes.
| Six Months Ended June 30, 2018
(in millions) | Racing |  | TwinSpires |  | Casinos |  | Other Investments |  | Corporate
Net revenue | $ | 220.3 |  |  | $ | 157.7 |  |  | $ | 196.3 |  |  | $ | 12.0 |  |  | $ | — |
Taxes & purses | (44.7 | ) |  | (8.0 | ) |  | (65.8 | ) |  | — |  |  | — |
Marketing & advertising | (4.4 | ) |  | (3.9 | ) |  | (6.7 | ) |  | (0.1 | ) |  | — |
Salaries & benefits | (23.9 | ) |  | (4.5 | ) |  | (27.1 | ) |  | (6.8 | ) |  | — |
Content expense | (7.8 | ) |  | (82.0 | ) |  | — |  |  | — |  |  | — |
SG&A expense | (8.6 | ) |  | (5.7 | ) |  | (11.0 | ) |  | (1.4 | ) |  | (5.0 | )
Other operating expense | (31.6 | ) |  | (14.0 | ) |  | (21.2 | ) |  | (2.4 | ) |  | (0.3 | )
Other income | 0.4 |  |  | — |  |  | 23.7 |  |  | 0.1 |  |  | 0.1 |
Adjusted EBITDA | $ | 99.7 |  |  | $ | 39.6 |  |  | $ | 88.2 |  |  | $ | 1.4 |  |  | $ | (5.2 | )
| Six Months Ended June 30, 2017
(in millions) | Racing |  | TwinSpires |  | Casinos |  | Other Investments |  | Corporate (a)
Net revenue | $ | 201.8 |  |  | $ | 133.1 |  |  | $ | 175.8 |  |  | $ | 12.0 |  |  | $ | — |
Taxes & purses | (43.1 | ) |  | (7.1 | ) |  | (58.8 | ) |  | — |  |  | — |
Marketing & advertising | (2.9 | ) |  | (5.6 | ) |  | (6.0 | ) |  | — |  |  | — |
Salaries & benefits | (22.1 | ) |  | (4.8 | ) |  | (26.5 | ) |  | (6.2 | ) |  | — |
Content expense | (7.9 | ) |  | (65.6 | ) |  | — |  |  | — |  |  | — |
SG&A expense | (8.0 | ) |  | (5.7 | ) |  | (10.8 | ) |  | (1.5 | ) |  | (5.4 | )
Other operating expense | (29.3 | ) |  | (11.8 | ) |  | (21.2 | ) |  | (2.5 | ) |  | (0.5 | )
Other income | 0.5 |  |  | — |  |  | 20.3 |  |  | 0.1 |  |  | — |
Adjusted EBITDA | $ | 89.0 |  |  | $ | 32.5 |  |  | $ | 72.8 |  |  | $ | 1.9 |  |  | $ | (5.9 | )
(a) The Corporate segment includes corporate and other certain expenses of $1.4 million for the six months ended June 30, 2017 that have not been allocated to Big Fish Games as a result of the Big Fish Transaction. The Big Fish Games segment is reported as held for sale and discontinued operations in the accompanying condensed consolidated financial statements and these notes.
| Three Months Ended June 30, |  | Six Months Ended June 30,
(in millions) | 2018 |  | 2017 |  | 2018 |  | 2017
Reconciliation of Comprehensive Income to Adjusted EBITDA: |  |  |  |  |  |  |
Comprehensive income | $ | 102.9 |  |  | $ | 78.0 |  |  | $ | 284.9 |  |  | $ | 85.2 |
Foreign currency translation, net of tax | — |  |  | 0.3 |  |  | — |  |  | 0.4 |
Change in pension benefits, net of tax | 0.2 |  |  | — |  |  | 0.2 |  |  | — |
Net income | 103.1 |  |  | 78.3 |  |  | 285.1 |  |  | 85.6 |
Income from discontinued operations, net of tax | 0.1 |  |  | (5.6 | ) |  | (167.8 | ) |  | (10.7 | )
Income from continuing operations, net of tax | 103.2 |  |  | 72.7 |  |  | 117.3 |  |  | 74.9 |
Additions: |  |  |  |  |  |  |
Depreciation and amortization | 15.3 |  |  | 14.4 |  |  | 29.1 |  |  | 28.6 |
Interest expense | 9.7 |  |  | 11.6 |  |  | 19.3 |  |  | 23.4 |
Income tax provision | 32.8 |  |  | 47.0 |  |  | 35.4 |  |  | 47.6 |
EBITDA | 161.0 |  |  | 145.7 |  |  | 201.1 |  |  | 174.5 |
Adjustments to EBITDA: |  |  |  |  |  |  |
Selling, general and administrative: |  |  |  |  |  |  |
Stock-based compensation expense | 6.4 |  |  | 4.4 |  |  | 9.2 |  |  | 7.8 |
Other charges | — |  |  | (0.2 | ) |  | — |  |  | — |
Pre-opening expense | 0.7 |  |  | 0.3 |  |  | 1.3 |  |  | 0.3 |
Other income, expense: |  |  |  |  |  |  |
Interest, depreciation and amortization expense related to equity investments | 4.3 |  |  | 3.1 |  |  | 8.6 |  |  | 6.6 |
Transaction expense, net | 2.1 |  |  | 0.5 |  |  | 3.5 |  |  | 0.5 |
Calder exit costs | — |  |  | 0.2 |  |  | — |  |  | 0.6 |
Total adjustments to EBITDA | 13.5 |  |  | 8.3 |  |  | 22.6 |  |  | 15.8 |
Adjusted EBITDA | $ | 174.5 |  |  | $ | 154.0 |  |  | $ | 223.7 |  |  | $ | 190.3 |
Adjusted EBITDA by segment: |  |  |  |  |  |  |
Racing | $ | 109.1 |  |  | $ | 98.7 |  |  | $ | 99.7 |  |  | $ | 89.0 |
TwinSpires | 23.1 |  |  | 19.3 |  |  | 39.6 |  |  | 32.5 |
Casino | 43.9 |  |  | 37.5 |  |  | 88.2 |  |  | 72.8 |
Other Investments | 1.1 |  |  | 1.3 |  |  | 1.4 |  |  | 1.9 |
Corporate(a) | (2.7 | ) |  | (2.8 | ) |  | (5.2 | ) |  | (5.9 | )
Adjusted EBITDA | $ | 174.5 |  |  | $ | 154.0 |  |  | $ | 223.7 |  |  | $ | 190.3 |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] |
| Three Months Ended June 30, |  | Six Months Ended June 30,
(in millions) | 2018 |  | 2017 |  | 2018 |  | 2017
Casino | $ | 8.8 |  |  | $ | 7.7 |  |  | $ | 15.3 |  |  | $ | 13.8 |
Reconciliation of Assets from Segment to Consolidated | The table below presents total asset information for each of our operating segments:
(in millions) | June 30, 2018 |  | December 31, 2017
Total assets: |  |  |
Racing | $ | 496.4 |  |  | $ | 483.0 |
TwinSpires | 222.0 |  |  | 215.9 |
Casino | 671.9 |  |  | 679.6 |
Other Investments | 53.5 |  |  | 15.2 |
Corporate | 252.8 |  |  | 73.2 |
Big Fish Games | — |  |  | 892.5 |
| $ | 1,696.6 |  |  | $ | 2,359.4 |
The table below presents total capital expenditures for each of our operating segments:
| Six Months Ended June 30,
(in millions) | 2018 |  | 2017
Capital expenditures: |  |  |
Racing | $ | 43.0 |  |  | $ | 38.4 |
TwinSpires | 4.7 |  |  | 5.2 |
Casino | 5.9 |  |  | 15.6 |
Other Investments | 17.6 |  |  | 0.7 |
Corporate | 1.0 |  |  | 0.6 |
Big Fish Games | — |  |  | 3.5 |
| $ | 72.2 |  |  | $ | 64.0 |

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 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