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v3.10.0.1

Segment Information (Tables) | 12 Months Ended
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Dec. 31, 2018
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) | 2018 |  | 2017 |  | 2016
Net revenue from external customers: |  |  |  |  |
Racing: |  |  |  |  |
Churchill Downs | $ | 181.0 |  |  | $ | 161.3 |  |  | $ | 155.2 |
Arlington | 55.0 |  |  | 57.2 |  |  | 55.3 |
Fair Grounds | 35.8 |  |  | 36.3 |  |  | 38.0 |
Calder Racing | 2.5 |  |  | 2.5 |  |  | 2.6 |
Total Racing | 274.3 |  |  | 257.3 |  |  | 251.1 |
Online Wagering | 290.2 |  |  | 255.6 |  |  | 221.6 |
Casino: |  |  |  |  |
Oxford | 102.0 |  |  | 90.8 |  |  | 84.6 |
Calder | 96.1 |  |  | 85.4 |  |  | 79.1 |
Fair Grounds Slots and VSI | 81.9 |  |  | 74.8 |  |  | 73.8 |
Riverwalk | 54.5 |  |  | 48.2 |  |  | 46.1 |
Harlow’s | 50.2 |  |  | 50.0 |  |  | 48.4 |
Ocean Downs | 25.9 |  |  | — |  |  | — |
Saratoga | 0.6 |  |  | 1.3 |  |  | 0.8 |
Total Casino | 411.2 |  |  | 350.5 |  |  | 332.8 |
Other Investments | 33.3 |  |  | 19.2 |  |  | 16.9 |
Net revenue from external customers | $ | 1,009.0 |  |  | $ | 882.6 |  |  | $ | 822.4 |
Intercompany net revenue: |  |  |  |  |
Racing: |  |  |  |  |
Churchill Downs | $ | 12.7 |  |  | $ | 11.4 |  |  | $ | 10.0 |
Arlington | 6.7 |  |  | 6.3 |  |  | 5.5 |
Fair Grounds | 1.6 |  |  | 1.6 |  |  | 1.5 |
Calder Racing | 0.1 |  |  | — |  |  | — |
Total Racing | 21.1 |  |  | 19.3 |  |  | 17.0 |
Online Wagering | 1.3 |  |  | 1.1 |  |  | 1.3 |
Other Investments | 4.5 |  |  | 4.5 |  |  | 3.9 |
Eliminations | (26.9 | ) |  | (24.9 | ) |  | (22.2 | )
Intercompany net revenue | $ | — |  |  | $ | — |  |  | $ | — |
Schedule of Segment Reporting Information | Adjusted EBITDA by segment is comprised of the following:
| Year Ended December 31, 2018
(in millions) | Racing |  | Online Wagering |  | Casino |  | Other Investments |  | Corporate
Net revenue | $ | 295.4 |  |  | $ | 291.5 |  |  | $ | 411.2 |  |  | $ | 37.8 |  |  | $ | — |
Taxes & purses | (67.3 | ) |  | (15.2 | ) |  | (139.9 | ) |  | (4.3 | ) |  | — |
Marketing & advertising | (6.5 | ) |  | (6.0 | ) |  | (14.7 | ) |  | (1.0 | ) |  | — |
Salaries & benefits | (44.0 | ) |  | (9.2 | ) |  | (58.5 | ) |  | (15.0 | ) |  | — |
Content expense | (14.4 | ) |  | (152.0 | ) |  | (0.3 | ) |  | — |  |  | — |
SG&A expense | (17.8 | ) |  | (12.1 | ) |  | (26.1 | ) |  | (5.3 | ) |  | (11.0 | )
Other operating expense | (53.6 | ) |  | (24.2 | ) |  | (45.5 | ) |  | (7.0 | ) |  | (0.4 | )
Other income | 0.6 |  |  | — |  |  | 43.3 |  |  | 0.1 |  |  | 0.2 |
Adjusted EBITDA | $ | 92.4 |  |  | $ | 72.8 |  |  | $ | 169.5 |  |  | $ | 5.3 |  |  | $ | (11.2 | )
| Year Ended December 31, 2017
(in millions) | Racing |  | Online Wagering |  | Casino |  | Other Investments |  | Corporate(a)
Net revenue | $ | 276.6 |  |  | $ | 256.7 |  |  | $ | 350.5 |  |  | $ | 23.7 |  |  | $ | — |
Taxes & purses | (65.4 | ) |  | (14.7 | ) |  | (117.0 | ) |  | — |  |  | — |
Marketing & advertising | (4.9 | ) |  | (8.2 | ) |  | (12.1 | ) |  | — |  |  | — |
Salaries & benefits | (41.7 | ) |  | (9.9 | ) |  | (53.2 | ) |  | (12.0 | ) |  | — |
Content expense | (15.2 | ) |  | (125.0 | ) |  | — |  |  | — |  |  | — |
SG&A expense | (16.8 | ) |  | (12.4 | ) |  | (22.6 | ) |  | (3.3 | ) |  | (12.2 | )
Other operating expense | (48.9 | ) |  | (22.1 | ) |  | (41.6 | ) |  | (5.1 | ) |  | (0.5 | )
Other income | 0.8 |  |  | — |  |  | 42.0 |  |  | 0.4 |  |  | 0.3 |
Adjusted EBITDA | $ | 84.5 |  |  | $ | 64.4 |  |  | $ | 146.0 |  |  | $ | 3.7 |  |  | $ | (12.4 | )
| Year Ended December 31, 2016
(in millions) | Racing |  | Online Wagering |  | Casino |  | Other Investments |  | Corporate(a)
Net revenue | $ | 268.1 |  |  | $ | 222.9 |  |  | $ | 332.8 |  |  | $ | 20.8 |  |  | $ | — |
Taxes & purses | (64.2 | ) |  | (11.6 | ) |  | (110.9 | ) |  | — |  |  | — |
Marketing & advertising | (4.6 | ) |  | (6.3 | ) |  | (12.7 | ) |  | — |  |  | — |
Salaries & benefits | (40.9 | ) |  | (9.4 | ) |  | (50.8 | ) |  | (10.9 | ) |  | — |
Content expense | (15.6 | ) |  | (107.6 | ) |  | — |  |  | — |  |  | — |
SG&A expense | (16.2 | ) |  | (12.0 | ) |  | (21.2 | ) |  | (3.4 | ) |  | (11.7 | )
Other operating expense | (47.4 | ) |  | (19.8 | ) |  | (39.1 | ) |  | (4.1 | ) |  | (0.6 | )
Other income | 0.5 |  |  | — |  |  | 27.7 |  |  | 0.3 |  |  | 0.2 |
Adjusted EBITDA | $ | 79.7 |  |  | $ | 56.2 |  |  | $ | 125.8 |  |  | $ | 2.7 |  |  | $ | (12.1 | )
(a) The Corporate segment includes corporate and other certain expenses of $3.6 million in 2017 and $3.1 million in 2016 that have not been allocated to Big Fish Games as a result of the Big Fish Transaction and the Big Fish Games segment reported as held for sale and discontinued operations in the accompanying consolidated financial statements and these notes. The table below presents information about earnings (losses) from equity investments, net included in our reported segments:
| Years Ended December 31,
(in millions) | 2018 |  | 2017 |  | 2016
Casino | $ | 29.4 |  |  | $ | 25.3 |  |  | $ | 17.4 |
Other Investments | 0.2 |  |  | 0.2 |  |  | — |
| $ | 29.6 |  |  | $ | 25.5 |  |  | $ | 17.4 |
| Years Ended December 31,
(in millions) | 2018 |  | 2017 |  | 2016
Reconciliation of Comprehensive Income to Adjusted EBITDA: |  |  |  |  |
Comprehensive income | $ | 353.2 |  |  | $ | 140.4 |  |  | $ | 107.5 |
Foreign currency translation, net of tax | (0.6 | ) |  | 0.1 |  |  | (0.2 | )
Change in pension benefits, net of tax | 0.2 |  |  | — |  |  | 0.8 |
Net income | 352.8 |  |  | 140.5 |  |  | 108.1 |
Income from discontinued operations, net of tax | (170.2 | ) |  | (18.1 | ) |  | (11.4 | )
Income from continuing operations, net of tax | 182.6 |  |  | 122.4 |  |  | 96.7 |
Additions: |  |  |  |  |
Depreciation and amortization | 63.6 |  |  | 56.0 |  |  | 58.4 |
Interest expense | 40.1 |  |  | 49.3 |  |  | 43.7 |
Loss on extinguishment of debt | — |  |  | 20.7 |  |  | — |
Income tax provision (benefit) | 51.3 |  |  | (19.9 | ) |  | 50.7 |
EBITDA | $ | 337.6 |  |  | $ | 228.5 |  |  | $ | 249.5 |
Adjustments to EBITDA: |  |  |  |  |
Selling, general and administrative: |  |  |  |  |
Stock-based compensation expense | $ | 17.7 |  |  | $ | 16.0 |  |  | $ | 13.3 |
Other, net | (0.6 | ) |  | 0.5 |  |  | 2.5 |
Pre-opening expense | 4.8 |  |  | 0.5 |  |  | — |
Other income, expense: |  |  |  |  |
Interest, depreciation and amortization expense related to equity investments | 13.9 |  |  | 16.7 |  |  | 10.0 |
Other charges and recoveries, net | — |  |  | — |  |  | 0.5 |
Gain on Ocean Downs/Saratoga transaction | (54.9 | ) |  | — |  |  | — |
Transaction expense, net | 10.3 |  |  | 2.3 |  |  | 0.2 |
Impairment of tangible and other intangible assets | — |  |  | 21.7 |  |  | — |
Gain on Calder land sale | — |  |  | — |  |  | (23.7 | )
Total adjustments to EBITDA | (8.8 | ) |  | 57.7 |  |  | 2.8 |
Adjusted EBITDA | $ | 328.8 |  |  | $ | 286.2 |  |  | $ | 252.3 |
Adjusted EBITDA by segment: |  |  |  |  |
Racing | $ | 92.4 |  |  | $ | 84.5 |  |  | $ | 79.7 |
Online Wagering | 72.8 |  |  | 64.4 |  |  | 56.2 |
Casino | 169.5 |  |  | 146.0 |  |  | 125.8 |
Other Investments | 5.3 |  |  | 3.7 |  |  | 2.7 |
Corporate(a) | (11.2 | ) |  | (12.4 | ) |  | (12.1 | )
Adjusted EBITDA | $ | 328.8 |  |  | $ | 286.2 |  |  | $ | 252.3 |
(a) The Corporate segment includes corporate and other certain expenses of $3.6 million in 2017 and $3.1 million in 2016 that have not been allocated to Big Fish Games as a result of the Big Fish Transaction and the Big Fish Games segment reported as held for sale and discontinued operations in the accompanying consolidated financial statements and these notes.
Schedule of Total Assets and Capital Expenditures by Operating Segment | The table below presents total asset information for each of our operating segments, as well as Big Fish Games, which is no longer reported as an operating segment but is presented as a discontinued operation:
| As of December 31,
(in millions) | 2018 |  | 2017
Total assets: |  |  |
Racing | $ | 498.9 |  |  | $ | 483.0 |
Online Wagering | 222.8 |  |  | 215.9 |
Casino | 774.1 |  |  | 679.6 |
Other Investments | 78.9 |  |  | 15.2 |
Corporate | 150.5 |  |  | 73.2 |
Big Fish Games (discontinued operation) | — |  |  | 892.5 |
| $ | 1,725.2 |  |  | $ | 2,359.4 |
The table below presents total capital expenditures for each of our operating segments, as well as Big Fish Games, which is no longer reported as an operating segment but is presented as a discontinued operation:
| Years Ended December 31,
(in millions) | 2018 |  | 2017 |  | 2016
Capital expenditures: |  |  |  |  |
Racing | $ | 59.9 |  |  | $ | 57.8 |  |  | $ | 26.1 |
Online Wagering | 9.7 |  |  | 9.0 |  |  | 7.0 |
Casino | 15.9 |  |  | 37.5 |  |  | 13.9 |
Other Investments | 61.7 |  |  | 3.4 |  |  | 1.0 |
Corporate | 2.2 |  |  | 1.3 |  |  | 1.2 |
Big Fish Games (discontinued operation) | — |  |  | 7.9 |  |  | 5.5 |
| $ | 149.4 |  |  | $ | 116.9 |  |  | $ | 54.7 |

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8721-108599 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 + Details
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