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Segment Information (Tables) | 6 Months Ended
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Jun. 30, 2020
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 (loss) income to Adjusted EBITDA:
| Three Months Ended June 30, |  |  |  | Six Months Ended June 30, |  |
(in millions) | 2020 |  | 2019 |  | 2020 |  | 2019
Net revenue from external customers: |  |  |  |  |  |  |
Churchill Downs: |  |  |  |  |  |  |
Churchill Downs Racetrack | $ | 15.6 |  |  | $ | 161.0 |  |  | $ | 17.5 |  |  | $ | 163.3 |
Derby City Gaming | 7.7 |  |  | 21.2 |  |  | 29.3 |  |  | 39.9 |
Total Churchill Downs | 23.3 |  |  | 182.2 |  |  | 46.8 |  |  | 203.2 |
Online Wagering: |  |  |  |  |  |  |
TwinSpires | 119.9 |  |  | 95.6 |  |  | 186.5 |  |  | 158.6 |
Online Sports Betting and iGaming | 1.3 |  |  | — |  |  | 2.0 |  |  | 0.1 |
Total Online Wagering | 121.2 |  |  | 95.6 |  |  | 188.5 |  |  | 158.7 |
Gaming: |  |  |  |  |  |  |
Fair Grounds and VSI | 11.1 |  |  | 30.9 |  |  | 42.7 |  |  | 68.4 |
Presque Isle | 2.0 |  |  | 37.1 |  |  | 29.6 |  |  | 66.8 |
Calder | 5.7 |  |  | 25.6 |  |  | 27.5 |  |  | 51.0 |
Oxford | 0.1 |  |  | 26.3 |  |  | 20.2 |  |  | 50.2 |
Ocean Downs | 3.1 |  |  | 21.9 |  |  | 17.9 |  |  | 40.3 |
Riverwalk | 7.4 |  |  | 14.2 |  |  | 20.1 |  |  | 30.5 |
Harlow’s | 5.6 |  |  | 13.3 |  |  | 17.3 |  |  | 28.6 |
Lady Luck Nemacolin | 2.3 |  |  | 8.3 |  |  | 9.6 |  |  | 10.6 |
Total Gaming | 37.3 |  |  | 177.6 |  |  | 184.9 |  |  | 346.4 |
All Other | 3.3 |  |  | 22.0 |  |  | 17.8 |  |  | 34.5 |
Net revenue from external customers | $ | 185.1 |  |  | $ | 477.4 |  |  | $ | 438.0 |  |  | $ | 742.8 |
| Three Months Ended June 30, |  |  |  | Six Months Ended June 30, |  |
(in millions) | 2020 |  | 2019 |  | 2020 |  | 2019
Intercompany net revenue: |  |  |  |  |  |  |
Churchill Downs | $ | 6.9 |  |  | $ | 10.9 |  |  | $ | 7.2 |  |  | $ | 11.3 |
Online Wagering | 0.4 |  |  | 0.4 |  |  | 0.8 |  |  | 0.7 |
Gaming | — |  |  | 0.2 |  |  | 1.5 |  |  | 1.5 |
All Other | 2.9 |  |  | 3.4 |  |  | 5.9 |  |  | 5.6 |
Eliminations | (10.2) |  |  | (14.9) |  |  | (15.4) |  |  | (19.1) |
Intercompany net revenue | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
| Three Months Ended June 30, 2020 |  |  |  |  |  |  |  |  |  |
(in millions) | Churchill Downs |  | Online Wagering |  | Gaming |  | Total Segments |  | All Other |  | Total
Net revenue from external customers |  |  |  |  |  |  |  |  |  |  |
Pari-mutuel: |  |  |  |  |  |  |  |  |  |  |
Live and simulcast racing | $ | 14.9 |  |  | $ | 115.6 |  |  | $ | 1.7 |  |  | $ | 132.2 |  |  | $ | 0.8 |  |  | $ | 133.0 |
Historical racing(a) | 7.3 |  |  | — |  |  | — |  |  | 7.3 |  |  | — |  |  | 7.3 |
Racing event-related services | 0.5 |  |  | — |  |  | 0.7 |  |  | 1.2 |  |  | — |  |  | 1.2 |
Gaming(a) | — |  |  | 1.5 |  |  | 33.3 |  |  | 34.8 |  |  | — |  |  | 34.8 |
Other(a) | 0.6 |  |  | 4.1 |  |  | 1.6 |  |  | 6.3 |  |  | 2.5 |  |  | 8.8 |
Total | $ | 23.3 |  |  | $ | 121.2 |  |  | $ | 37.3 |  |  | $ | 181.8 |  |  | $ | 3.3 |  |  | $ | 185.1 |
| Three Months Ended June 30, 2019 |  |  |  |  |  |  |  |  |  |
(in millions) | Churchill Downs |  | Online Wagering |  | Gaming |  | Total Segments |  | All Other |  | Total
Net revenue from external customers |  |  |  |  |  |  |  |  |  |  |
Pari-mutuel: |  |  |  |  |  |  |  |  |  |  |
Live and simulcast racing | $ | 41.3 |  |  | $ | 91.1 |  |  | $ | 5.5 |  |  | $ | 137.9 |  |  | $ | 12.2 |  |  | $ | 150.1 |
Historical racing(a) | 19.7 |  |  | — |  |  | — |  |  | 19.7 |  |  | — |  |  | 19.7 |
Racing event-related services | 113.4 |  |  | — |  |  | 0.8 |  |  | 114.2 |  |  | 2.2 |  |  | 116.4 |
Gaming(a) | — |  |  | — |  |  | 150.2 |  |  | 150.2 |  |  | — |  |  | 150.2 |
Other(a) | 7.8 |  |  | 4.5 |  |  | 21.1 |  |  | 33.4 |  |  | 7.6 |  |  | 41.0 |
Total | $ | 182.2 |  |  | $ | 95.6 |  |  | $ | 177.6 |  |  | $ | 455.4 |  |  | $ | 22.0 |  |  | $ | 477.4 |
(a) Food and beverage, hotel, and other services furnished to customers for free as an inducement to gamble or through the redemption of our customers' loyalty points are recorded at their estimated standalone selling prices in Other revenue with a corresponding offset recorded as a reduction in historical pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $0.8 million for the three months ended June 30, 2020 and $7.9 million for the three months ended June 30, 2019.
| Six Months Ended June 30, 2020 |  |  |  |  |  |  |  |  |  |
(in millions) | Churchill Downs |  | Online Wagering |  | Gaming |  | Total Segments |  | All Other |  | Total
Net revenue from external customers |  |  |  |  |  |  |  |  |  |  |
Pari-mutuel: |  |  |  |  |  |  |  |  |  |  |
Live and simulcast racing | $ | 15.9 |  |  | $ | 179.5 |  |  | $ | 11.6 |  |  | $ | 207.0 |  |  | $ | 10.7 |  |  | $ | 217.7 |
Historical racing(b) | 27.7 |  |  | — |  |  | — |  |  | 27.7 |  |  | — |  |  | 27.7 |
Racing event-related services | 0.5 |  |  | — |  |  | 2.0 |  |  | 2.5 |  |  | 0.1 |  |  | 2.6 |
Gaming(b) | — |  |  | 2.2 |  |  | 154.9 |  |  | 157.1 |  |  | — |  |  | 157.1 |
Other(b) | 2.7 |  |  | 6.8 |  |  | 16.4 |  |  | 25.9 |  |  | 7.0 |  |  | 32.9 |
Total | $ | 46.8 |  |  | $ | 188.5 |  |  | $ | 184.9 |  |  | $ | 420.2 |  |  | $ | 17.8 |  |  | $ | 438.0 |
| Six Months Ended June 30, 2019 |  |  |  |  |  |  |  |  |  |
(in millions) | Churchill Downs |  | Online Wagering |  | Gaming |  | Total Segments |  | All Other |  | Total
Net revenue from external customers |  |  |  |  |  |  |  |  |  |  |
Pari-mutuel: |  |  |  |  |  |  |  |  |  |  |
Live and simulcast racing | $ | 42.7 |  |  | $ | 151.6 |  |  | $ | 17.7 |  |  | $ | 212.0 |  |  | $ | 19.7 |  |  | $ | 231.7 |
Historical racing(b) | 37.4 |  |  | — |  |  | — |  |  | 37.4 |  |  | — |  |  | 37.4 |
Racing event-related services | 113.4 |  |  | — |  |  | 2.3 |  |  | 115.7 |  |  | 2.2 |  |  | 117.9 |
Gaming(b) | — |  |  | 0.1 |  |  | 289.2 |  |  | 289.3 |  |  | — |  |  | 289.3 |
Other(b) | 9.7 |  |  | 7.0 |  |  | 37.2 |  |  | 53.9 |  |  | 12.6 |  |  | 66.5 |
Total | $ | 203.2 |  |  | $ | 158.7 |  |  | $ | 346.4 |  |  | $ | 708.3 |  |  | $ | 34.5 |  |  | $ | 742.8 |
(b) Food and beverage, hotel, and other services furnished to customers for free as an inducement to gamble or through the redemption of our customers' loyalty points are recorded at their estimated standalone selling prices in Other revenue with a corresponding offset recorded as a reduction in historical pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $8.4 million for the six months ended June 30, 2020 and $15.5 million for the six months ended June 30, 2019.
Schedule of Segment Reporting Information | Adjusted EBITDA by segment is comprised of the following:
| Three Months Ended June 30, 2020 |  |  |  |
(in millions) | Churchill Downs |  | Online Wagering |  | Gaming
Net revenue | $ | 30.2 |  |  | $ | 121.6 |  |  | $ | 37.3 |
Taxes and purses | (13.9) |  |  | (6.6) |  |  | (14.4) |
Marketing and advertising | (0.3) |  |  | (2.9) |  |  | (0.4) |
Salaries and benefits | (4.9) |  |  | (3.0) |  |  | (9.0) |
Content expense | (0.1) |  |  | (59.7) |  |  | (0.4) |
Selling, general and administrative expense | (1.2) |  |  | (1.7) |  |  | (3.9) |
Other operating expense | (5.3) |  |  | (9.0) |  |  | (11.1) |
Other income | — |  |  | 0.1 |  |  | (0.1) |
Adjusted EBITDA | $ | 4.5 |  |  | $ | 38.8 |  |  | $ | (2.0) |
| Three Months Ended June 30, 2019 |  |  |  |
(in millions) | Churchill Downs |  | Online Wagering |  | Gaming
Net revenue | $ | 193.1 |  |  | $ | 96.0 |  |  | $ | 177.8 |
Taxes and purses | (35.7) |  |  | (4.3) |  |  | (68.5) |
Marketing and advertising | (3.6) |  |  | (4.5) |  |  | (5.1) |
Salaries and benefits | (12.5) |  |  | (2.7) |  |  | (25.4) |
Content expense | (0.8) |  |  | (51.8) |  |  | (1.7) |
Selling, general and administrative expense | (2.0) |  |  | (1.9) |  |  | (6.9) |
Other operating expense | (16.6) |  |  | (8.6) |  |  | (21.8) |
Other income | — |  |  | — |  |  | 27.7 |
Adjusted EBITDA | $ | 121.9 |  |  | $ | 22.2 |  |  | $ | 76.1 |
| Six Months Ended June 30, 2020 |  |  |  |
(in millions) | Churchill Downs |  | Online Wagering |  | Gaming
Net revenue | $ | 54.0 |  |  | $ | 189.3 |  |  | $ | 186.4 |
Taxes & purses | (21.0) |  |  | (10.5) |  |  | (73.5) |
Marketing & advertising | (1.4) |  |  | (6.4) |  |  | (5.7) |
Salaries & benefits | (11.1) |  |  | (6.5) |  |  | (38.5) |
Content expense | (0.5) |  |  | (92.9) |  |  | (1.6) |
SG&A expense | (2.7) |  |  | (3.1) |  |  | (10.6) |
Other operating expense | (10.9) |  |  | (16.2) |  |  | (30.6) |
Other income | — |  |  | 0.1 |  |  | 21.1 |
Adjusted EBITDA | $ | 6.4 |  |  | $ | 53.8 |  |  | $ | 47.0 |
| Six Months Ended June 30, 2019 |  |  |  |
(in millions) | Churchill Downs |  | Online Wagering |  | Gaming
Net revenue | $ | 214.5 |  |  | $ | 159.4 |  |  | $ | 347.9 |
Taxes & purses | (41.9) |  |  | (7.6) |  |  | (133.5) |
Marketing & advertising | (4.7) |  |  | (5.5) |  |  | (10.2) |
Salaries & benefits | (17.7) |  |  | (5.2) |  |  | (49.9) |
Content expense | (1.3) |  |  | (83.9) |  |  | (2.9) |
SG&A expense | (3.7) |  |  | (3.7) |  |  | (13.3) |
Other operating expense | (21.9) |  |  | (14.4) |  |  | (40.8) |
Other income | — |  |  | — |  |  | 43.6 |
Adjusted EBITDA | $ | 123.3 |  |  | $ | 39.1 |  |  | $ | 140.9 |
| Three Months Ended June 30, |  |  |  | Six Months Ended June 30, |  |
(in millions) | 2020 |  | 2019 |  | 2020 |  | 2019
Reconciliation of Comprehensive (Loss) Income to Adjusted EBITDA: |  |  |  |  |  |  |
Net (loss) income and comprehensive (loss) income attributable to CDI | $ | (118.8) |  |  | $ | 107.1 |  |  | $ | (142.2) |  |  | $ | 118.7 |
Net loss attributable to noncontrolling interest | — |  |  | — |  |  | 0.1 |  |  | — |
Net (loss) income before noncontrolling interest | (118.8) |  |  | 107.1 |  |  | (142.3) |  |  | 118.7 |
Loss from discontinued operations, net of tax | 95.2 |  |  | 1.2 |  |  | 96.1 |  |  | 1.5 |
(Loss) income from continuing operations, net of tax | (23.6) |  |  | 108.3 |  |  | (46.2) |  |  | 120.2 |
Additions: |  |  |  |  |  |  |
Depreciation and amortization | 22.1 |  |  | 21.5 |  |  | 44.1 |  |  | 42.3 |
Interest expense | 20.3 |  |  | 19.4 |  |  | 39.6 |  |  | 33.1 |
Income tax (benefit) provision | (7.9) |  |  | 38.6 |  |  | (19.5) |  |  | 45.1 |
EBITDA | $ | 10.9 |  |  | $ | 187.8 |  |  | $ | 18.0 |  |  | $ | 240.7 |
Adjustments to EBITDA: |  |  |  |  |  |  |
Selling, general and administrative: |  |  |  |  |  |  |
Stock-based compensation expense | $ | 6.1 |  |  | $ | 7.4 |  |  | $ | 10.4 |  |  | $ | 12.1 |
Other charges | (0.1) |  |  | — |  |  | (0.1) |  |  | 0.5 |
Pre-opening expense and other expense | 1.9 |  |  | 0.9 |  |  | 3.6 |  |  | 2.2 |
Impairment of intangible assets | — |  |  | — |  |  | 17.5 |  |  | — |
Transaction expense, net | 0.2 |  |  | 0.6 |  |  | 0.5 |  |  | 4.1 |
Other income, expense: |  |  |  |  |  |  |
Interest, depreciation and amortization expense related to equity investments | 9.8 |  |  | 9.7 |  |  | 19.3 |  |  | 13.2 |
Changes in fair value of Midwest Gaming's interest rate swaps | 1.3 |  |  | 7.9 |  |  | 16.2 |  |  | 12.2 |
Midwest Gaming's recapitalization and transactions costs | — |  |  | 0.8 |  |  | — |  |  | 4.7 |
Other | — |  |  | (0.1) |  |  | — |  |  | (0.1) |
Total adjustments to EBITDA | 19.2 |  |  | 27.2 |  |  | 67.4 |  |  | 48.9 |
Adjusted EBITDA | $ | 30.1 |  |  | $ | 215.0 |  |  | $ | 85.4 |  |  | $ | 289.6 |
Adjusted EBITDA by segment: |  |  |  |  |  |  |
Churchill Downs | $ | 4.5 |  |  | $ | 121.9 |  |  | $ | 6.4 |  |  | $ | 123.3 |
Online Wagering | 38.8 |  |  | 22.2 |  |  | 53.8 |  |  | 39.1 |
Gaming | (2.0) |  |  | 76.1 |  |  | 47.0 |  |  | 140.9 |
Total segment Adjusted EBITDA | 41.3 |  |  | 220.2 |  |  | 107.2 |  |  | 303.3 |
All Other | $ | (11.2) |  |  | $ | (5.2) |  |  | $ | (21.8) |  |  | $ | (13.7) |
Total Adjusted EBITDA | $ | 30.1 |  |  | $ | 215.0 |  |  | $ | 85.4 |  |  | $ | 289.6 |
Schedule of Equity in Income of Unconsolidated Investments | The table below presents information about equity in (loss) income of unconsolidated investments included in our reported segments:
| Three Months Ended June 30, |  |  |  | Six Months Ended June 30, |  |
(in millions) | 2020 |  | 2019 |  | 2020 |  | 2019
Gaming | $ | (11.1) |  |  | $ | 9.5 |  |  | $ | (14.4) |  |  | $ | 13.6 |
Schedule of Total Assets and Capital Expenditures by Operating Segment | The table below presents total asset information for each of our segments:
(in millions) | June 30, 2020 |  | December 31, 2019
Total assets: |  |  |
Churchill Downs | $ | 395.2 |  |  | $ | 370.3 |
Online Wagering | 250.1 |  |  | 241.5 |
Gaming | 945.5 |  |  | 1,030.1 |
Total segment assets | 1,590.8 |  |  | 1,641.9 |
All Other | 1,625.2 |  |  | 909.1 |
Total assets | $ | 3,216.0 |  |  | $ | 2,551.0 |
The table below presents total capital expenditures for each of our segments:
| Six Months Ended June 30, |  |
(in millions) | 2020 |  | 2019
Capital expenditures: |  |  |
Churchill Downs | $ | 28.2 |  |  | $ | 21.9 |
Online Wagering | 6.1 |  |  | 4.9 |
Gaming | 4.5 |  |  | 28.2 |
Total segment capital expenditures | 38.8 |  |  | 55.0 |
All Other | 92.5 |  |  | 3.8 |
Total capital expenditures | $ | 131.3 |  |  | $ | 58.8 |

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