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v3.19.3.a.u2

Segment Information (Tables) | 12 Months Ended
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Dec. 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, Adjusted EBITDA by segment and reconciles comprehensive income to Adjusted EBITDA:
| Years Ended December 31, |  |  |  |
(in millions) | 2019 |  | 2018 |  | 2017
Net revenue from external customers: |  |  |  |  |
Churchill Downs: |  |  |  |  |  |  |  |
Churchill Downs Racetrack | $ | 187.6 |  |  | $ | 181.0 |  |  | $ | 161.3 |
Derby City Gaming | 86.6 |  |  | 14.8 |  |  | — |
Total Churchill Downs | 274.2 |  |  | 195.8 |  |  | 161.3 |
Online Wagering: |  |  |  |  |
TwinSpires | 289.9 |  |  | 290.2 |  |  | 255.6 |
Online Sports Betting and iGaming | 0.6 |  |  | — |  |  | — |
Total Online Wagering | 290.5 |  |  | 290.2 |  |  | 255.6 |
Gaming: |  |  |  |  |
Presque Isle | 138.5 |  |  | — |  |  | — |
Fair Grounds and VSI | 123.0 |  |  | 117.7 |  |  | 111.1 |
Oxford Casino | 101.7 |  |  | 102.0 |  |  | 90.8 |
Calder | 99.8 |  |  | 98.6 |  |  | 87.9 |
Ocean Downs | 85.9 |  |  | 25.9 |  |  | — |
Riverwalk Casino | 58.9 |  |  | 54.5 |  |  | 48.2 |
Harlow’s Casino | 55.3 |  |  | 50.2 |  |  | 50.0 |
Lady Luck Nemacolin | 29.3 |  |  | — |  |  | — |
Saratoga | — |  |  | 0.6 |  |  | 1.3 |
Total Gaming | 692.4 |  |  | 449.5 |  |  | 389.3 |
All Other | 72.6 |  |  | 73.5 |  |  | 76.4 |
Net revenue from external customers | $ | 1,329.7 |  |  | $ | 1,009.0 |  |  | $ | 882.6 |
Intercompany net revenues: |  |  |  |  |  |  |  |
Churchill Downs | $ | 15.2 |  |  | $ | 12.7 |  |  | $ | 11.4 |
Online Wagering | 1.1 |  |  | 1.3 |  |  | 1.1 |
Gaming: |  |  |  |  |
Fair Grounds and VSI | 1.8 |  |  | 1.6 |  |  | 1.6 |
Calder | 0.1 |  |  | 0.1 |  |  | — |
Presque Isle | 0.5 |  |  | — |  |  | — |
Total Gaming | 2.4 |  |  | 1.7 |  |  | 1.6 |
All Other | 11.6 |  |  | 11.2 |  |  | 10.8 |
Eliminations | (30.3) |  |  | (26.9) |  |  | (24.9) |
Intercompany net revenue | $ | — |  |  | $ | — |  |  | $ | — |
| Twelve Months Ended December 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 | $ | 59.0 |  |  | $ | 277.1 |  |  | $ | 30.7 |  |  | $ | 366.8 |  |  | $ | 41.1 |  |  | $ | 407.9 |
Historical racing(a) | 81.6 |  |  | — |  |  | — |  |  | 81.6 |  |  | — |  |  | 81.6 |
Racing event-related services | 118.7 |  |  | — |  |  | 4.1 |  |  | 122.8 |  |  | 5.6 |  |  | 128.4 |
Gaming(a) | — |  |  | 0.6 |  |  | 585.2 |  |  | 585.8 |  |  | — |  |  | 585.8 |
Other(a) | 14.9 |  |  | 12.8 |  |  | 72.4 |  |  | 100.1 |  |  | 25.9 |  |  | 126.0 |
Total | $ | 274.2 |  |  | $ | 290.5 |  |  | $ | 692.4 |  |  | $ | 1,257.1 |  |  | $ | 72.6 |  |  | $ | 1,329.7 |
| Twelve Months Ended December 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 | $ | 54.9 |  |  | $ | 278.4 |  |  | $ | 27.1 |  |  | $ | 360.4 |  |  | $ | 43.1 |  |  | $ | 403.5 |
Historical racing(a) | 13.8 |  |  | — |  |  | — |  |  | 13.8 |  |  | — |  |  | 13.8 |
Racing event-related services | 115.2 |  |  | — |  |  | 3.9 |  |  | 119.1 |  |  | 5.8 |  |  | 124.9 |
Gaming(a) | — |  |  | — |  |  | 365.9 |  |  | 365.9 |  |  | — |  |  | 365.9 |
Other(a) | 11.9 |  |  | 11.8 |  |  | 52.6 |  |  | 76.3 |  |  | 24.6 |  |  | 100.9 |
Total | $ | 195.8 |  |  | $ | 290.2 |  |  | $ | 449.5 |  |  | $ | 935.5 |  |  | $ | 73.5 |  |  | $ | 1,009.0 |
| Twelve Months Ended December 31, 2017 |  |  |  |  |  |  |  |  |  |
(in millions) | Churchill Downs |  | Online Wagering |  | Gaming |  | Total Segments |  | All Other |  | Total
Net revenue from external customers |  |  |  |  |  |  |  |  |  |  |
Pari-mutuel: |  |  |  |  |  |  |  |  |  |  |
Live and simulcast racing | $ | 52.0 |  |  | $ | 239.6 |  |  | $ | 27.1 |  |  | $ | 318.7 |  |  | $ | 44.8 |  |  | $ | 363.5 |
Historical racing(a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Racing event-related services | 100.5 |  |  | — |  |  | 4.2 |  |  | 104.7 |  |  | 6.4 |  |  | 111.1 |
Gaming(a) | — |  |  | — |  |  | 315.6 |  |  | 315.6 |  |  | — |  |  | 315.6 |
Other(a) | 8.8 |  |  | 16.0 |  |  | 42.4 |  |  | 67.2 |  |  | 25.2 |  |  | 92.4 |
Total | $ | 161.3 |  |  | $ | 255.6 |  |  | $ | 389.3 |  |  | $ | 806.2 |  |  | $ | 76.4 |  |  | $ | 882.6 |
(a)Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers' loyalty points are recorded at the estimated standalone selling prices in Other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $33.4 million in 2019, $26.1 million in 2018, and $21.5 million in 2017.
Schedule of Segment Reporting Information | Adjusted EBITDA by segment is comprised of the following:
| Year Ended December 31, 2019 |  |  |  |
(in millions) | Churchill Downs |  | Online Wagering |  | Gaming
Net revenue | $ | 289.4 |  |  | $ | 291.6 |  |  | $ | 694.8 |
Taxes and purses | (66.5) |  |  | (15.3) |  |  | (270.3) |
Marketing and advertising | (7.1) |  |  | (12.2) |  |  | (21.5) |
Salaries and benefits | (32.0) |  |  | (11.4) |  |  | (103.3) |
Content expense | (2.4) |  |  | (152.8) |  |  | (6.0) |
Selling, general and administrative expense | (8.0) |  |  | (7.2) |  |  | (29.0) |
Other operating expense | (35.9) |  |  | (26.4) |  |  | (84.1) |
Other income | 0.2 |  |  | — |  |  | 100.3 |
Adjusted EBITDA | $ | 137.7 |  |  | $ | 66.3 |  |  | $ | 280.9 |
| Year Ended December 31, 2018 |  |  |  |
(in millions) | Churchill Downs |  | Online Wagering |  | Gaming
Net revenue | $ | 208.5 |  |  | $ | 291.5 |  |  | $ | 451.2 |
Taxes and purses | (41.3) |  |  | (15.2) |  |  | (153.4) |
Marketing and advertising | (5.7) |  |  | (6.0) |  |  | (15.5) |
Salaries & benefits | (23.7) |  |  | (9.2) |  |  | (68.9) |
Content expense | (2.2) |  |  | (152.0) |  |  | (4.1) |
Selling, general and administrative expense | (5.3) |  |  | (5.9) |  |  | (18.6) |
Other operating expense | (28.0) |  |  | (24.2) |  |  | (60.0) |
Other income | 0.1 |  |  | — |  |  | 43.3 |
Adjusted EBITDA | $ | 102.4 |  |  | $ | 79.0 |  |  | $ | 174.0 |
| Year Ended December 31, 2017 |  |  |  |
(in millions) | Churchill Downs |  | Online Wagering |  | Gaming
Net revenue | $ | 172.7 |  |  | $ | 256.7 |  |  | $ | 390.9 |
Taxes and purses | (34.1) |  |  | (14.7) |  |  | (130.7) |
Marketing and advertising | (2.7) |  |  | (8.2) |  |  | (13.0) |
Salaries & benefits | (19.3) |  |  | (9.9) |  |  | (63.4) |
Content expense | (2.4) |  |  | (125.0) |  |  | (4.0) |
Selling, general and administrative expense | (4.0) |  |  | (6.9) |  |  | (17.1) |
Other operating expense | (21.3) |  |  | (22.1) |  |  | (56.1) |
Other income | 0.1 |  |  | — |  |  | 42.0 |
Adjusted EBITDA | $ | 89.0 |  |  | $ | 69.9 |  |  | $ | 148.6 |
| Years Ended December 31, |  |  |  |
(in millions) | 2019 |  | 2018 |  | 2017
Reconciliation of Comprehensive Income to Adjusted EBITDA: |  |  |  |  |
Comprehensive income attributable to CDI | $ | 137.5 |  |  | $ | 353.2 |  |  | $ | 140.4 |
Foreign currency translation, net of tax | — |  |  | (0.6) |  |  | 0.1 |
Change in pension benefits, net of tax | — |  |  | 0.2 |  |  | — |
Net income attributable to CDI | 137.5 |  |  | 352.8 |  |  | 140.5 |
Net loss attributable to noncontrolling interest | 0.3 |  |  | — |  |  | — |
Net income before noncontrolling interest | 137.2 |  |  | 352.8 |  |  | 140.5 |
Loss (income) from discontinued operations, net of tax | 2.4 |  |  | (170.2) |  |  | (18.1) |
Income from continuing operations, net of tax | 139.6 |  |  | 182.6 |  |  | 122.4 |
Additions: |  |  |  |  |
Depreciation and amortization | 96.4 |  |  | 63.6 |  |  | 56.0 |
Interest expense | 70.9 |  |  | 40.1 |  |  | 49.3 |
Loss on extinguishment of debt | — |  |  | — |  |  | 20.7 |
Income tax provision (benefit) | 56.8 |  |  | 51.3 |  |  | (19.9) |
EBITDA | $ | 363.7 |  |  | $ | 337.6 |  |  | $ | 228.5 |
Adjustments to EBITDA: |  |  |  |  |
Selling, general and administrative: |  |  |  |  |
Stock-based compensation expense | $ | 23.8 |  |  | $ | 17.7 |  |  | $ | 16.0 |
Legal reserves | 3.6 |  |  | — |  |  | — |
Other, net | 0.4 |  |  | (0.6) |  |  | 0.5 |
Pre-opening expense | 5.1 |  |  | 4.8 |  |  | 0.5 |
Other income, expense: |  |  |  |  |
Interest, depreciation and amortization expense related to equity investments | 32.6 |  |  | 13.9 |  |  | 16.7 |
Changes in fair value of Midwest Gaming's interest rate swaps | 12.4 |  |  | — |  |  | — |
Midwest Gaming's recapitalization and transactions costs | 4.7 |  |  | — |  |  | — |
Other charges and recoveries, net | (0.2) |  |  | — |  |  | — |
Gain on Ocean Downs/Saratoga transaction | — |  |  | (54.9) |  |  | — |
Transaction expense, net | 5.3 |  |  | 10.3 |  |  | 2.3 |
Impairment of tangible and other intangible assets | — |  |  | — |  |  | 21.7 |
Total adjustments to EBITDA | 87.7 |  |  | (8.8) |  |  | 57.7 |
Adjusted EBITDA | $ | 451.4 |  |  | $ | 328.8 |  |  | $ | 286.2 |
Adjusted EBITDA by segment: |  |  |  |  |
Churchill Downs | $ | 137.7 |  |  | $ | 102.4 |  |  | $ | 89.0 |
Online Wagering | 66.3 |  |  | 79.0 |  |  | 69.9 |
Gaming | 280.9 |  |  | 174.0 |  |  | 148.6 |
Total segment Adjusted EBITDA | 484.9 |  |  | 355.4 |  |  | 307.5 |
All Other | (33.5) |  |  | (26.6) |  |  | (21.3) |
Total Adjusted EBITDA | $ | 451.4 |  |  | $ | 328.8 |  |  | $ | 286.2 |
The table below presents information about equity in income of unconsolidated affiliates included in our reported segments:
| Years Ended December 31, |  |  |  |
(in millions) | 2019 |  | 2018 |  | 2017
Gaming | $ | 50.5 |  |  | $ | 29.4 |  |  | $ | 25.3 |
All Other | 0.1 |  |  | 0.2 |  |  | 0.2 |
| $ | 50.6 |  |  | $ | 29.6 |  |  | $ | 25.5 |
Schedule of Total Assets and Capital Expenditures by Operating Segment | The table below presents total asset information for each of our segments:
| As of December 31, |  |
(in millions) | 2019 |  | 2018
Total assets: |  |  |
Churchill Downs | $ | 370.3 |  |  | $ | 359.6 |
Online Wagering | 241.5 |  |  | 222.8 |
Gaming | 1,030.1 |  |  | 877.1 |
Total segment assets | 1,641.9 |  |  | 1,459.5 |
All Other | 909.1 |  |  | 265.7 |
| $ | 2,551.0 |  |  | $ | 1,725.2 |
The table below presents total capital expenditures for each of our segments:
| Years Ended December 31, |  |  |  |
(in millions) | 2019 |  | 2018 |  | 2017
Capital expenditures: |  |  |  |  |
Churchill Downs | $ | 31.4 |  |  | $ | 109.6 |  |  | $ | 54.1 |
Online Wagering | 9.7 |  |  | 9.7 |  |  | 9.0 |
Gaming | 37.1 |  |  | 20.7 |  |  | 39.7 |
Total segment capital expenditures | 78.2 |  |  | 140.0 |  |  | 102.8 |
All Other | 53.0 |  |  | 9.4 |  |  | 6.2 |
Total capital expenditures | $ | 131.2 |  |  | $ | 149.4 |  |  | $ | 109.0 |

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