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v3.19.1

Segment Information (Tables) | 3 Months Ended
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Mar. 31, 2019
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 segments, net revenue from external customers for each group of similar services, Adjusted EBITDA by segment, and a reconciliation of comprehensive income to Adjusted EBITDA:
| Three Months Ended March 31,
(in millions) | 2019 |  | 2018
Net revenue from external customers: |  |  |
Churchill Downs: |  |  |
Churchill Downs Racetrack | $ | 2.3 |  |  | $ | 2.0 |
Derby City Gaming | 18.7 |  |  | — |
Total Churchill Downs | 21.0 |  |  | 2.0 |
Online Wagering: |  |  |
TwinSpires | 63.0 |  |  | 63.2 |
Online Sports Betting and iGaming | 0.1 |  |  | — |
Total Online Wagering | 63.1 |  |  | 63.2 |
Gaming: |  |  |
Oxford | 23.9 |  |  | 24.2 |
Calder | 25.4 |  |  | 24.9 |
Riverwalk | 16.3 |  |  | 14.4 |
Harlow’s | 15.3 |  |  | 13.3 |
Fair Grounds and VSI | 37.5 |  |  | 34.4 |
Ocean Downs | 18.4 |  |  | — |
Presque Isle | 29.7 |  |  | — |
Lady Luck Nemacolin | 2.3 |  |  | — |
Saratoga | — |  |  | 0.3 |
Total Gaming | 168.8 |  |  | 111.5 |
All Other | 12.5 |  |  | 12.6 |
Net revenue from external customers | $ | 265.4 |  |  | $ | 189.3 |
| Three Months Ended March 31,
(in millions) | 2019 |  | 2018
Intercompany net revenue: |  |  |
Churchill Downs | $ | 0.4 |  |  | $ | 0.3 |
Online Wagering | 0.3 |  |  | 0.4 |
Gaming | 1.3 |  |  | 1.0 |
All Other | 2.2 |  |  | 2.4 |
Eliminations | (4.2 | ) |  | (4.1 | )
Intercompany net revenue | $ | — |  |  | $ | — |
| Three Months Ended March 31, 2019
(in millions) | Churchill Downs |  | Online Wagering |  | Gaming |  | Total Segments |  | All Other |  | Total
Net revenue from external customers |  |  |  |  |  |  |  |  |  |  |
Pari-mutuel: |  |  |  |  |  |  |  |  |  |  |
Live and simulcast racing | $ | 1.4 |  |  | $ | 60.5 |  |  | $ | 12.2 |  |  | $ | 74.1 |  |  | $ | 7.5 |  |  | $ | 81.6 |
Historical racing | 17.7 |  |  | — |  |  | — |  |  | 17.7 |  |  | — |  |  | 17.7 |
Racing event-related services | — |  |  | — |  |  | 1.5 |  |  | 1.5 |  |  | — |  |  | 1.5 |
Gaming | — |  |  | 0.1 |  |  | 146.6 |  |  | 146.7 |  |  | — |  |  | 146.7 |
Other | 1.9 |  |  | 2.5 |  |  | 8.5 |  |  | 12.9 |  |  | 5.0 |  |  | 17.9 |
Total | $ | 21.0 |  |  | $ | 63.1 |  |  | $ | 168.8 |  |  | $ | 252.9 |  |  | $ | 12.5 |  |  | $ | 265.4 |
| Three Months Ended March 31, 2018
(in millions) | Churchill Downs |  | Online Wagering |  | Gaming |  | Total Segments |  | All Other |  | Total
Net revenue from external customers |  |  |  |  |  |  |  |  |  |  |
Pari-mutuel: |  |  |  |  |  |  |  |  |  |  |
Live and simulcast racing | $ | 1.3 |  |  | $ | 61.0 |  |  | $ | 10.6 |  |  | $ | 72.9 |  |  | $ | 7.9 |  |  | $ | 80.8 |
Historical racing | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Racing event-related services | — |  |  | — |  |  | 1.4 |  |  | 1.4 |  |  | — |  |  | 1.4 |
Gaming | — |  |  | — |  |  | 93.9 |  |  | 93.9 |  |  | — |  |  | 93.9 |
Other | 0.7 |  |  | 2.2 |  |  | 5.6 |  |  | 8.5 |  |  | 4.7 |  |  | 13.2 |
Total | $ | 2.0 |  |  | $ | 63.2 |  |  | $ | 111.5 |  |  | $ | 176.7 |  |  | $ | 12.6 |  |  | $ | 189.3 |
Schedule of Segment Reporting Information | Adjusted EBITDA by segment is comprised of the following:
| Three Months Ended March 31, 2019
(in millions) | Churchill Downs |  | Online Wagering |  | Gaming
Net revenue | $ | 21.4 |  |  | $ | 63.4 |  |  | $ | 170.1 |
Taxes & purses | (6.2 | ) |  | (3.3 | ) |  | (65.0 | )
Marketing & advertising | (1.1 | ) |  | (1.0 | ) |  | (5.1 | )
Salaries & benefits | (5.2 | ) |  | (2.5 | ) |  | (24.5 | )
Content expense | (0.5 | ) |  | (32.1 | ) |  | (1.2 | )
SG&A expense | (1.7 | ) |  | (1.8 | ) |  | (6.4 | )
Other operating expense | (5.3 | ) |  | (5.8 | ) |  | (19.0 | )
Other income | — |  |  | — |  |  | 15.9 |
Adjusted EBITDA by segment | $ | 1.4 |  |  | $ | 16.9 |  |  | $ | 64.8 |
| Three Months Ended March 31, 2018
(in millions) | Churchill Downs |  | Online Wagering |  | Gaming
Net revenue | $ | 2.3 |  |  | $ | 63.6 |  |  | $ | 112.5 |
Taxes & purses | (0.7 | ) |  | (3.4 | ) |  | (38.0 | )
Marketing & advertising | (0.3 | ) |  | (0.8 | ) |  | (3.6 | )
Salaries & benefits | (3.1 | ) |  | (2.1 | ) |  | (16.9 | )
Content expense | (0.4 | ) |  | (32.2 | ) |  | (0.9 | )
SG&A expense | (1.0 | ) |  | (1.4 | ) |  | (3.8 | )
Other operating expense | (2.8 | ) |  | (5.8 | ) |  | (13.7 | )
Other income | — |  |  | — |  |  | 10.8 |
Adjusted EBITDA by segment | $ | (6.0 | ) |  | $ | 17.9 |  |  | $ | 46.4 |
| Three Months Ended March 31,
(in millions) | 2019 |  | 2018
Reconciliation of Comprehensive Income to Adjusted EBITDA: |  |  |
Comprehensive income | $ | 11.6 |  |  | $ | 182.4 |
Foreign currency translation, net of tax | — |  |  | (0.6 | )
Change in pension benefits, net of tax | — |  |  | 0.2 |
Net income | 11.6 |  |  | 182.0 |
Loss (income) from discontinued operations, net of tax | 0.3 |  |  | (167.9 | )
Income from continuing operations, net of tax | 11.9 |  |  | 14.1 |
Additions: |  |  |
Depreciation and amortization | 20.8 |  |  | 13.8 |
Interest expense | 13.7 |  |  | 9.6 |
Income tax provision | 6.5 |  |  | 2.6 |
EBITDA | $ | 52.9 |  |  | $ | 40.1 |
Adjustments to EBITDA: |  |  |
Selling, general and administrative: |  |  |
Stock-based compensation expense | $ | 4.7 |  |  | $ | 2.8 |
Other charges | 0.5 |  |  | — |
Pre-opening expense | 1.3 |  |  | 0.6 |
Other income, expense: |  |  |
Interest, depreciation and amortization expense related to equity investments | 3.5 |  |  | 4.3 |
Recapitalization costs related to Midwest Gaming | 8.2 |  |  | — |
Transaction expense, net | 3.5 |  |  | 1.4 |
Total adjustments to EBITDA | 21.7 |  |  | 9.1 |
Adjusted EBITDA | $ | 74.6 |  |  | $ | 49.2 |
Adjusted EBITDA by segment: |  |  |
Churchill Downs | $ | 1.4 |  |  | $ | (6.0 | )
Online Wagering | 16.9 |  |  | 17.9 |
Gaming | 64.8 |  |  | 46.4 |
Total segment Adjusted EBITDA | 83.1 |  |  | 58.3 |
All Other | (8.5 | ) |  | (9.1 | )
Total Adjusted EBITDA | $ | 74.6 |  |  | $ | 49.2 |
Schedule of Equity in Income of Unconsolidated Investments | The table below presents information about equity in income of unconsolidated investments included in our reported segments:
| Three Months Ended March 31,
(in millions) | 2019 |  | 2018
Gaming | $ | 4.1 |  |  | $ | 6.5 |
Schedule of Total Assets and Capital Expenditures by Operating Segment | The table below presents total asset information for each of our segments:
(in millions) | March 31, 2019 |  | December 31, 2018
Total assets: |  |  |
Churchill Downs | $ | 367.7 |  |  | $ | 359.6 |
Online Wagering | 237.4 |  |  | 222.8 |
Gaming | 1,603.8 |  |  | 877.1 |
Total segment assets | 2,208.9 |  |  | 1,459.5 |
All Other | 269.6 |  |  | 265.7 |
Total assets | $ | 2,478.5 |  |  | $ | 1,725.2 |
The table below presents total capital expenditures for each of our segments:
| Three Months Ended March 31,
(in millions) | 2019 |  | 2018
Capital expenditures: |  |  |
Churchill Downs | $ | 9.6 |  |  | $ | 26.2 |
Online Wagering | 11.5 |  |  | 2.3 |
Gaming | 2.5 |  |  | 4.0 |
Total segment capital expenditures | 23.6 |  |  | 32.5 |
All Other | 4.5 |  |  | 1.5 |
Total capital expenditures | $ | 28.1 |  |  | $ | 34.0 |

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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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