XML 43 R33.htm IDEA: XBRL DOCUMENT
v3.21.2

Segment Information (Tables) | 9 Months Ended
--- | ---
Sep. 30, 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 September 30, |  | Nine Months Ended September 30,
(in millions) | 2021 |  | 2020 |  | 2021 |  | 2020
Net revenue from external customers: |  |  |  |  |  |  |
Live and Historical Racing: |  |  |  |  |  |  |
Churchill Downs Racetrack | $ | 7.4 |  |  | $ | 34.9 |  |  | $ | 114.6 |  |  | $ | 52.4 |
Derby City Gaming | 40.2 |  |  | 25.9 |  |  | 113.0 |  |  | 55.2 |
Oak Grove | 27.1 |  |  | 2.4 |  |  | 72.1 |  |  | 2.4 |
Turfway Park | 0.7 |  |  | 0.6 |  |  | 5.8 |  |  | 5.2 |
Newport | 4.3 |  |  | — |  |  | 13.3 |  |  | — |
Total Live and Historical Racing | 79.7 |  |  | 63.8 |  |  | 318.8 |  |  | 115.2 |
TwinSpires: |  |  |  |  |  |  |
Horse Racing | 93.1 |  |  | 124.0 |  |  | 313.0 |  |  | 310.5 |
Sports and Casino | 8.7 |  |  | 3.1 |  |  | 24.1 |  |  | 7.0 |
Total TwinSpires | 101.8 |  |  | 127.1 |  |  | 337.1 |  |  | 317.5 |
Gaming: |  |  |  |  |  |  |
Fair Grounds and VSI | 24.8 |  |  | 27.9 |  |  | 98.2 |  |  | 70.6 |
Presque Isle | 35.9 |  |  | 27.5 |  |  | 90.2 |  |  | 56.4 |
Ocean Downs | 31.7 |  |  | 24.3 |  |  | 78.7 |  |  | 42.2 |
Calder | 25.9 |  |  | 6.5 |  |  | 74.2 |  |  | 34.0 |
Oxford | 31.8 |  |  | 12.2 |  |  | 72.1 |  |  | 32.4 |
Riverwalk | 14.5 |  |  | 15.2 |  |  | 47.3 |  |  | 34.6 |
Harlow’s | 13.3 |  |  | 12.7 |  |  | 43.9 |  |  | 29.7 |
Lady Luck Nemacolin | 7.4 |  |  | 7.2 |  |  | 18.7 |  |  | 16.8 |
Total Gaming | 185.3 |  |  | 133.5 |  |  | 523.3 |  |  | 316.7 |
All Other | 26.2 |  |  | 13.4 |  |  | 53.2 |  |  | 26.4 |
Net revenue from external customers | $ | 393.0 |  |  | $ | 337.8 |  |  | $ | 1,232.4 |  |  | $ | 775.8 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2021 |  | 2020 |  | 2021 |  | 2020
Intercompany net revenue: |  |  |  |  |  |  |
Live and Historical Racing | $ | 1.8 |  |  | $ | 7.3 |  |  | $ | 17.9 |  |  | $ | 15.3 |
TwinSpires | 0.4 |  |  | 0.5 |  |  | 1.1 |  |  | 1.2 |
Gaming | 0.3 |  |  | 0.2 |  |  | 2.3 |  |  | 1.7 |
All Other | 3.6 |  |  | 3.8 |  |  | 10.2 |  |  | 9.0 |
Eliminations | (6.1) |  |  | (11.8) |  |  | (31.5) |  |  | (27.2) |
Intercompany net revenue | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
| Three Months Ended September 30, 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 | $ | 5.4 |  |  | $ | 89.4 |  |  | $ | 4.9 |  |  | $ | 99.7 |  |  | $ | 12.6 |  |  | $ | 112.3 |
Historical racing(a) | 66.2 |  |  | — |  |  | — |  |  | 66.2 |  |  | — |  |  | 66.2 |
Racing event-related services | 1.8 |  |  | — |  |  | 0.1 |  |  | 1.9 |  |  | 5.0 |  |  | 6.9 |
Gaming(a) | — |  |  | 8.7 |  |  | 166.6 |  |  | 175.3 |  |  | — |  |  | 175.3 |
Other(a) | 6.3 |  |  | 3.7 |  |  | 13.7 |  |  | 23.7 |  |  | 8.6 |  |  | 32.3 |
Total | $ | 79.7 |  |  | $ | 101.8 |  |  | $ | 185.3 |  |  | $ | 366.8 |  |  | $ | 26.2 |  |  | $ | 393.0 |
| Three Months Ended September 30, 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 | $ | 14.9 |  |  | $ | 119.0 |  |  | $ | 4.6 |  |  | $ | 138.5 |  |  | $ | 8.4 |  |  | $ | 146.9 |
Historical racing(a) | 27.1 |  |  | — |  |  | — |  |  | 27.1 |  |  | — |  |  | 27.1 |
Racing event-related services | 19.1 |  |  | — |  |  | 0.7 |  |  | 19.8 |  |  | 0.2 |  |  | 20.0 |
Gaming(a) | — |  |  | 3.1 |  |  | 122.3 |  |  | 125.4 |  |  | — |  |  | 125.4 |
Other(a) | 2.7 |  |  | 5.0 |  |  | 5.9 |  |  | 13.6 |  |  | 4.8 |  |  | 18.4 |
Total | $ | 63.8 |  |  | $ | 127.1 |  |  | $ | 133.5 |  |  | $ | 324.4 |  |  | $ | 13.4 |  |  | $ | 337.8 |
(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 $6.1 million for the three months ended September 30, 2021 and $2.1 million for the three months ended September 30, 2020.
| Nine Months Ended September 30, 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 | $ | 50.9 |  |  | $ | 300.2 |  |  | $ | 21.0 |  |  | $ | 372.1 |  |  | $ | 27.2 |  |  | $ | 399.3 |
Historical racing(a) | 184.0 |  |  | — |  |  | — |  |  | 184.0 |  |  | — |  |  | 184.0 |
Racing event-related services | 65.3 |  |  | — |  |  | 1.0 |  |  | 66.3 |  |  | 6.9 |  |  | 73.2 |
Gaming(a) | — |  |  | 24.1 |  |  | 469.3 |  |  | 493.4 |  |  | — |  |  | 493.4 |
Other(a) | 18.6 |  |  | 12.8 |  |  | 32.0 |  |  | 63.4 |  |  | 19.1 |  |  | 82.5 |
Total | $ | 318.8 |  |  | $ | 337.1 |  |  | $ | 523.3 |  |  | $ | 1,179.2 |  |  | $ | 53.2 |  |  | $ | 1,232.4 |
| Nine Months Ended September 30, 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 | $ | 35.0 |  |  | $ | 298.5 |  |  | $ | 16.2 |  |  | $ | 349.7 |  |  | $ | 14.9 |  |  | $ | 364.6 |
Historical racing(a) | 54.8 |  |  | — |  |  | — |  |  | 54.8 |  |  | — |  |  | 54.8 |
Racing event-related services | 19.6 |  |  | — |  |  | 2.7 |  |  | 22.3 |  |  | 0.3 |  |  | 22.6 |
Gaming(a) | — |  |  | 7.0 |  |  | 275.5 |  |  | 282.5 |  |  | — |  |  | 282.5 |
Other(a) | 5.8 |  |  | 12.0 |  |  | 22.3 |  |  | 40.1 |  |  | 11.2 |  |  | 51.3 |
Total | $ | 115.2 |  |  | $ | 317.5 |  |  | $ | 316.7 |  |  | $ | 749.4 |  |  | $ | 26.4 |  |  | $ | 775.8 |
(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 $15.0 million for the nine months ended September 30, 2021 and $10.5 million for the nine months ended September 30, 2020.
Schedule of Segment Reporting Information | Adjusted EBITDA by segment is comprised of the following:
| Three Months Ended September 30, 2021
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming
Net revenue | $ | 81.5 |  |  | $ | 102.2 |  |  | $ | 185.6 |
Taxes and purses | (24.6) |  |  | (8.0) |  |  | (71.8) |
Marketing and advertising | (2.9) |  |  | (10.6) |  |  | (3.6) |
Salaries and benefits | (10.9) |  |  | (3.6) |  |  | (22.5) |
Content expense | (0.5) |  |  | (47.1) |  |  | (1.2) |
Selling, general and administrative expense | (3.1) |  |  | (2.2) |  |  | (7.1) |
Other operating expense | (11.8) |  |  | (10.0) |  |  | (19.7) |
Other income | — |  |  | — |  |  | 51.0 |
Adjusted EBITDA | $ | 27.7 |  |  | $ | 20.7 |  |  | $ | 110.7 |
| Three Months Ended September 30, 2020
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming
Net revenue | $ | 71.1 |  |  | $ | 127.6 |  |  | $ | 133.7 |
Taxes and purses | (20.4) |  |  | (8.2) |  |  | (51.5) |
Marketing and advertising | (2.7) |  |  | (6.9) |  |  | (0.6) |
Salaries and benefits | (8.8) |  |  | (3.1) |  |  | (19.1) |
Content expense | (0.2) |  |  | (62.7) |  |  | (1.2) |
Selling, general and administrative expense | (2.8) |  |  | (3.9) |  |  | (8.2) |
Other operating expense | (12.1) |  |  | (10.2) |  |  | (14.3) |
Other income | — |  |  | — |  |  | 35.9 |
Adjusted EBITDA | $ | 24.1 |  |  | $ | 32.6 |  |  | $ | 74.7 |
Adjusted EBITDA by segment is comprised of the following:
| Nine Months Ended September 30, 2021
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming
Net revenue | $ | 336.7 |  |  | $ | 338.2 |  |  | $ | 525.6 |
Taxes and purses | (95.4) |  |  | (22.7) |  |  | (201.1) |
Marketing and advertising | (9.9) |  |  | (35.8) |  |  | (7.5) |
Salaries and benefits | (36.2) |  |  | (9.9) |  |  | (63.0) |
Content expense | (1.9) |  |  | (162.1) |  |  | (3.5) |
Selling, general and administrative expense | (9.2) |  |  | (6.8) |  |  | (19.0) |
Other operating expense | (39.8) |  |  | (34.6) |  |  | (52.9) |
Other income | 0.1 |  |  | — |  |  | 134.3 |
Adjusted EBITDA | $ | 144.4 |  |  | $ | 66.3 |  |  | $ | 312.9 |
| Nine Months Ended September 30, 2020
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming
Net revenue | $ | 130.5 |  |  | $ | 318.7 |  |  | $ | 318.4 |
Taxes and purses | (43.9) |  |  | (19.2) |  |  | (124.5) |
Marketing and advertising | (4.2) |  |  | (13.3) |  |  | (6.3) |
Salaries and benefits | (21.3) |  |  | (9.6) |  |  | (57.6) |
Content expense | (1.0) |  |  | (154.4) |  |  | (2.6) |
Selling, general and administrative expense | (5.7) |  |  | (7.0) |  |  | (18.8) |
Other operating expense | (25.7) |  |  | (28.0) |  |  | (44.8) |
Other income | — |  |  | 0.1 |  |  | 57.0 |
Adjusted EBITDA | $ | 28.7 |  |  | $ | 87.3 |  |  | $ | 120.8 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2021 |  | 2020 |  | 2021 |  | 2020
Reconciliation of Comprehensive Income (Loss) to Adjusted EBITDA: |  |  |  |  |  |  |
Net income (loss) and comprehensive income (loss) attributable to Churchill Downs Incorporated | $ | 61.4 |  |  | $ | 43.2 |  |  | $ | 205.8 |  |  | $ | (99.0) |
Net loss attributable to noncontrolling interest | — |  |  | 0.1 |  |  | — |  |  | 0.2 |
Net income (loss) before noncontrolling interest | 61.4 |  |  | 43.1 |  |  | 205.8 |  |  | (99.2) |
Loss from discontinued operations, net of tax | — |  |  | — |  |  | — |  |  | 96.1 |
Income (loss) from continuing operations, net of tax | 61.4 |  |  | 43.1 |  |  | 205.8 |  |  | (3.1) |
Additions: |  |  |  |  |  |  |
Depreciation and amortization | 25.9 |  |  | 22.4 |  |  | 77.9 |  |  | 66.5 |
Interest expense | 21.7 |  |  | 19.7 |  |  | 63.1 |  |  | 59.3 |
Income tax provision (benefit) | 26.3 |  |  | 13.9 |  |  | 84.1 |  |  | (5.6) |
EBITDA | $ | 135.3 |  |  | $ | 99.1 |  |  | $ | 430.9 |  |  | $ | 117.1 |
Adjustments to EBITDA: |  |  |  |  |  |  |
Selling, general and administrative: |  |  |  |  |  |  |
Stock-based compensation expense | $ | 7.8 |  |  | $ | 6.9 |  |  | $ | 20.4 |  |  | $ | 17.3 |
Other charges | — |  |  | 0.8 |  |  | 0.2 |  |  | 0.7 |
Pre-opening expense and other expense | 1.7 |  |  | 6.2 |  |  | 3.8 |  |  | 9.8 |
Asset impairments | — |  |  | — |  |  | 11.2 |  |  | 17.5 |
Transaction expense, net | 2.0 |  |  | 0.5 |  |  | 2.1 |  |  | 1.0 |
Other income, expense: |  |  |  |  |  |  |
Interest, depreciation and amortization expense related to equity investments | 10.7 |  |  | 9.9 |  |  | 30.8 |  |  | 29.2 |
Changes in fair value of Rivers Des Plaines' interest rate swaps | (2.0) |  |  | (1.5) |  |  | (8.0) |  |  | 14.7 |
Rivers Des Plaines' legal reserves and transaction costs | 0.6 |  |  | — |  |  | 8.6 |  |  | — |
Total adjustments to EBITDA | 20.8 |  |  | 22.8 |  |  | 69.1 |  |  | 90.2 |
Adjusted EBITDA | $ | 156.1 |  |  | $ | 121.9 |  |  | $ | 500.0 |  |  | $ | 207.3 |
Adjusted EBITDA by segment: |  |  |  |  |  |  |
Live and Historical Racing | $ | 27.7 |  |  | $ | 24.1 |  |  | $ | 144.4 |  |  | $ | 28.7 |
TwinSpires | 20.7 |  |  | 32.6 |  |  | 66.3 |  |  | 87.3 |
Gaming | 110.7 |  |  | 74.7 |  |  | 312.9 |  |  | 120.8 |
Total segment Adjusted EBITDA | 159.1 |  |  | 131.4 |  |  | 523.6 |  |  | 236.8 |
All Other | (3.0) |  |  | (9.5) |  |  | (23.6) |  |  | (29.5) |
Total Adjusted EBITDA | $ | 156.1 |  |  | $ | 121.9 |  |  | $ | 500.0 |  |  | $ | 207.3 |
Schedule of Equity in Income of Unconsolidated Investments | The table below presents information about equity in income of unconsolidated affiliates included in our reported segments:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2021 |  | 2020 |  | 2021 |  | 2020
Gaming | $ | 41.6 |  |  | $ | 27.6 |  |  | $ | 102.9 |  |  | $ | 13.2 |
Schedule of Total Assets and Capital Expenditures by Operating Segment | The table below presents total asset information for each of our segments:
| September 30, 2021 |  | December 31, 2020
Total assets: |  |  |
Live and Historical Racing | $ | 651.0 |  |  | $ | 664.1 |
TwinSpires | 282.1 |  |  | 257.2 |
Gaming | 980.9 |  |  | 949.3 |
Total segment assets | 1,914.0 |  |  | 1,870.6 |
All Other | 1,059.5 |  |  | 815.8 |
Total assets | $ | 2,973.5 |  |  | $ | 2,686.4 |
The table below presents total capital expenditures for each of our segments:
| Nine Months Ended September 30,
(in millions) | 2021 |  | 2020
Capital expenditures, net: |  |  |
Live and Historical Racing | $ | 32.3 |  |  | $ | 190.9 |
TwinSpires | 7.9 |  |  | 9.6 |
Gaming | 9.3 |  |  | 5.1 |
Total segment capital expenditures | 49.5 |  |  | 205.6 |
All Other | 2.6 |  |  | 4.5 |
Total capital expenditures | $ | 52.1 |  |  | $ | 210.1 |

X
- Definition Tabular disclosure of all significant reconciling items in the reconciliation of total assets from reportable segments to the entity's consolidated assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 + Details
Name: | us-gaap_ReconciliationOfAssetsFromSegmentToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of each significant reconciling item, other than profit (loss), revenues, or assets, in the reconciliation of totals of such items in reportable segments to the entity's corresponding consolidated amount. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599 + Details
Name: | us-gaap_ReconciliationOfOtherSignificantReconcilingItemsFromSegmentsToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of entity-wide revenues from external customers for each product or service or each group of similar products or services if the information is not provided as part of the reportable operating segment information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 + Details
Name: | us-gaap_ScheduleOfEntityWideInformationRevenueFromExternalCustomersByProductsAndServicesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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=123359005&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=123359005&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=123359005&loc=d3e8906-108599 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration