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Segment Information (Tables) | 3 Months Ended
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Mar. 31, 2021
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 (loss) to Adjusted EBITDA:
| Three Months Ended March 31, |  |
(in millions) | 2021 |  | 2020 |  |  |  |
Net revenue from external customers: |  |  |  |  |  |  |
Live and Historical Racing: |  |  |  |  |  |  |
Churchill Downs Racetrack | $ | 2.0 |  |  | $ | 1.9 |  |  |  |  |
Derby City Gaming | 32.9 |  |  | 21.6 |  |  |  |  |
Oak Grove | 19.4 |  |  | — |  |  |  |  |
Turfway Park | 4.5 |  |  | 4.6 |  |  |  |  |
Newport | 4.4 |  |  | — |  |  |  |  |
Total Live and Historical Racing | 63.2 |  |  | 28.1 |  |  |  |  |
TwinSpires: |  |  |  |  |  |  |
Horse Racing | 92.7 |  |  | 66.6 |  |  |  |  |
Sports and Casino | 7.0 |  |  | 2.5 |  |  |  |  |
Total TwinSpires | 99.7 |  |  | 69.1 |  |  |  |  |
Gaming: |  |  |  |  |  |  |
Fair Grounds and VSI | 38.3 |  |  | 31.6 |  |  |  |  |
Presque Isle | 23.8 |  |  | 27.0 |  |  |  |  |
Calder | 20.9 |  |  | 21.8 |  |  |  |  |
Oxford | 15.7 |  |  | 20.1 |  |  |  |  |
Ocean Downs | 20.0 |  |  | 14.8 |  |  |  |  |
Riverwalk | 14.4 |  |  | 12.0 |  |  |  |  |
Harlow’s | 14.0 |  |  | 11.3 |  |  |  |  |
Lady Luck Nemacolin | 4.9 |  |  | 7.3 |  |  |  |  |
Total Gaming | 152.0 |  |  | 145.9 |  |  |  |  |
All Other | 9.4 |  |  | 9.8 |  |  |  |  |
Net revenue from external customers | $ | 324.3 |  |  | $ | 252.9 |  |  |  |  |
| Three Months Ended March 31, |  |
(in millions) | 2021 |  | 2020 |  |  |  |
Intercompany net revenue: |  |  |  |  |  |  |
Live and Historical Racing | $ | 1.5 |  |  | $ | 1.0 |  |  |  |  |
TwinSpires | 0.4 |  |  | 0.3 |  |  |  |  |
Gaming | 2.0 |  |  | 1.5 |  |  |  |  |
All Other | 2.7 |  |  | 2.4 |  |  |  |  |
Eliminations | (6.6) |  |  | (5.2) |  |  |  |  |
Intercompany net revenue | $ | — |  |  | $ | — |  |  |  |  |
| Three Months Ended March 31, 2021
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming |  | Total Segments |  | All Other |  | Total
Net revenue from external customers |  |  |  |  |  |  |  |  |  |  |
Pari-mutuel: |  |  |  |  |  |  |  |  |  |  |
Live and simulcast racing | $ | 5.9 |  |  | $ | 89.2 |  |  | $ | 11.7 |  |  | $ | 106.8 |  |  | $ | 5.1 |  |  | $ | 111.9 |
Historical racing(a) | 52.9 |  |  | — |  |  | — |  |  | 52.9 |  |  | — |  |  | 52.9 |
Racing event-related services | — |  |  | — |  |  | 0.7 |  |  | 0.7 |  |  | — |  |  | 0.7 |
Gaming(a) | — |  |  | 7.0 |  |  | 132.5 |  |  | 139.5 |  |  | — |  |  | 139.5 |
Other(a) | 4.4 |  |  | 3.5 |  |  | 7.1 |  |  | 15.0 |  |  | 4.3 |  |  | 19.3 |
Total | $ | 63.2 |  |  | $ | 99.7 |  |  | $ | 152.0 |  |  | $ | 314.9 |  |  | $ | 9.4 |  |  | $ | 324.3 |
| Three Months Ended March 31, 2020
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming |  | Total Segments |  | All Other |  | Total
Net revenue from external customers |  |  |  |  |  |  |  |  |  |  |
Pari-mutuel: |  |  |  |  |  |  |  |  |  |  |
Live and simulcast racing | $ | 5.2 |  |  | $ | 63.9 |  |  | $ | 9.9 |  |  | $ | 79.0 |  |  | $ | 5.7 |  |  | $ | 84.7 |
Historical racing(a) | 20.4 |  |  | — |  |  | — |  |  | 20.4 |  |  | — |  |  | 20.4 |
Racing event-related services | — |  |  | — |  |  | 1.3 |  |  | 1.3 |  |  | 0.1 |  |  | 1.4 |
Gaming(a) | — |  |  | 2.5 |  |  | 119.8 |  |  | 122.3 |  |  | — |  |  | 122.3 |
Other(a) | 2.5 |  |  | 2.7 |  |  | 14.9 |  |  | 20.1 |  |  | 4.0 |  |  | 24.1 |
Total | $ | 28.1 |  |  | $ | 69.1 |  |  | $ | 145.9 |  |  | $ | 243.1 |  |  | $ | 9.8 |  |  | $ | 252.9 |
(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 pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $3.7 million for the three months ended March 31, 2021 and $7.6 million for the three months ended March 31, 2020.
Schedule of Segment Reporting Information | Adjusted EBITDA by segment is comprised of the following:
| Three Months Ended March 31, 2021
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming
Net revenue | $ | 64.7 |  |  | $ | 100.1 |  |  | $ | 154.0 |
Taxes and purses | (20.0) |  |  | (6.4) |  |  | (59.3) |
Marketing and advertising | (2.1) |  |  | (8.5) |  |  | (1.4) |
Salaries and benefits | (10.0) |  |  | (3.1) |  |  | (19.9) |
Content expense | (0.6) |  |  | (46.5) |  |  | (1.0) |
Selling, general and administrative expense | (3.0) |  |  | (2.2) |  |  | (6.0) |
Other operating expense | (10.7) |  |  | (10.9) |  |  | (15.5) |
Other income | — |  |  | — |  |  | 31.5 |
Adjusted EBITDA | $ | 18.3 |  |  | $ | 22.5 |  |  | $ | 82.4 |
| Three Months Ended March 31, 2020
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming
Net revenue | $ | 29.1 |  |  | $ | 69.4 |  |  | $ | 147.4 |
Taxes and purses | (9.5) |  |  | (4.3) |  |  | (58.7) |
Marketing and advertising | (1.2) |  |  | (3.5) |  |  | (5.3) |
Salaries and benefits | (7.2) |  |  | (3.5) |  |  | (29.5) |
Content expense | (0.7) |  |  | (32.6) |  |  | (1.0) |
Selling, general and administrative expense | (1.7) |  |  | (1.4) |  |  | (6.7) |
Other operating expense | (7.8) |  |  | (8.1) |  |  | (19.5) |
Other income | — |  |  | — |  |  | 21.2 |
Adjusted EBITDA | $ | 1.0 |  |  | $ | 16.0 |  |  | $ | 47.9 |
| Three Months Ended March 31, |  |
(in millions) | 2021 |  | 2020 |  |  |  |
Reconciliation of Comprehensive Income (Loss) to Adjusted EBITDA: |  |  |  |  |  |  |
Net income (loss) and comprehensive income (loss) attributable to Churchill Downs Incorporated | $ | 36.1 |  |  | $ | (23.4) |  |  |  |  |
Net loss attributable to noncontrolling interest | — |  |  | 0.1 |  |  |  |  |
Net income (loss) before noncontrolling interest | 36.1 |  |  | (23.5) |  |  |  |  |
Loss from discontinued operations, net of tax | — |  |  | 0.9 |  |  |  |  |
Income (loss) from continuing operations, net of tax | 36.1 |  |  | (22.6) |  |  |  |  |
Additions: |  |  |  |  |  |  |
Depreciation and amortization | 26.0 |  |  | 22.0 |  |  |  |  |
Interest expense | 19.4 |  |  | 19.3 |  |  |  |  |
Income tax provision (benefit) | 16.2 |  |  | (11.6) |  |  |  |  |
EBITDA | $ | 97.7 |  |  | $ | 7.1 |  |  |  |  |
Adjustments to EBITDA: |  |  |  |  |  |  |
Selling, general and administrative: |  |  |  |  |  |  |
Stock-based compensation expense | $ | 5.5 |  |  | $ | 4.3 |  |  |  |  |
Pre-opening expense and other expense | 0.6 |  |  | 1.7 |  |  |  |  |
Impairment of intangible assets | — |  |  | 17.5 |  |  |  |  |
Transaction expense, net | 0.1 |  |  | 0.3 |  |  |  |  |
Other income, expense: |  |  |  |  |  |  |
Interest, depreciation and amortization expense related to equity investments | 9.6 |  |  | 9.5 |  |  |  |  |
Changes in fair value of Rivers Des Plaines' interest rate swaps | (4.2) |  |  | 14.9 |  |  |  |  |
Rivers Des Plaines' legal reserves and transaction costs | 1.3 |  |  | — |  |  |  |  |
Total adjustments to EBITDA | 12.9 |  |  | 48.2 |  |  |  |  |
Adjusted EBITDA | $ | 110.6 |  |  | $ | 55.3 |  |  |  |  |
Adjusted EBITDA by segment: |  |  |  |  |  |  |
Live and Historical Racing | $ | 18.3 |  |  | $ | 1.0 |  |  |  |  |
TwinSpires | 22.5 |  |  | 16.0 |  |  |  |  |
Gaming | 82.4 |  |  | 47.9 |  |  |  |  |
Total segment Adjusted EBITDA | 123.2 |  |  | 64.9 |  |  |  |  |
All Other | (12.6) |  |  | (9.6) |  |  |  |  |
Total Adjusted EBITDA | $ | 110.6 |  |  | $ | 55.3 |  |  |  |  |
Schedule of Equity in Income of Unconsolidated Investments | The table below presents information about equity in income (loss) of unconsolidated affiliates included in our reported segments:
| Three Months Ended March 31, |  |
(in millions) | 2021 |  | 2020 |  |  |  |
Gaming | $ | 24.9 |  |  | $ | (3.3) |  |  |  |  |
Schedule of Total Assets and Capital Expenditures by Operating Segment | The table below presents total capital expenditures for each of our segments:
| Three Months Ended March 31,
(in millions) | 2021 |  | 2020
Capital expenditures, net: |  |  |
Live and Historical Racing | $ | 7.8 |  |  | $ | 39.7 |
TwinSpires | 2.3 |  |  | 3.5 |
Gaming | 1.6 |  |  | 3.3 |
Total segment capital expenditures | 11.7 |  |  | 46.5 |
All Other | 0.6 |  |  | 1.8 |
Total capital expenditures | $ | 12.3 |  |  | $ | 48.3 |

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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=120311839&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=120311839&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=121556970&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 30 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599 + Details
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