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Segment Information (Tables) | 9 Months Ended
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Sep. 30, 2022
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 September 30, |  | Nine Months Ended September 30,
(in millions) | 2022 |  | 2021 |  | 2022 |  | 2021
Net revenue from external customers: |  |  |  |  |  |  |
Live and Historical Racing: |  |  |  |  |  |  |
Churchill Downs Racetrack | $ | 6.4 |  |  | $ | 7.4 |  |  | $ | 182.6 |  |  | $ | 114.6 |
Derby City Gaming | 41.5 |  |  | 40.2 |  |  | 128.5 |  |  | 113.0 |
Oak Grove | 33.3 |  |  | 27.1 |  |  | 97.8 |  |  | 72.1 |
Turfway Park | 3.1 |  |  | 0.7 |  |  | 8.6 |  |  | 5.9 |
Newport | 6.9 |  |  | 4.3 |  |  | 20.6 |  |  | 13.2 |
Chasers | 0.9 |  |  | — |  |  | 0.9 |  |  | — |
Ellis Park | 0.2 |  |  | — |  |  | 0.2 |  |  | — |
Total Live and Historical Racing | 92.3 |  |  | 79.7 |  |  | 439.2 |  |  | 318.8 |
TwinSpires: |  |  |  |  |  |  |
Horse Racing | 100.9 |  |  | 98.8 |  |  | 321.5 |  |  | 327.7 |
Sports and Casino | 5.3 |  |  | 8.7 |  |  | 21.8 |  |  | 24.1 |
Total TwinSpires | 106.2 |  |  | 107.5 |  |  | 343.3 |  |  | 351.8 |
Gaming: |  |  |  |  |  |  |
Fair Grounds and VSI | 28.5 |  |  | 24.8 |  |  | 107.2 |  |  | 98.2 |
Presque Isle | 33.2 |  |  | 35.9 |  |  | 90.7 |  |  | 90.2 |
Ocean Downs | 33.3 |  |  | 31.7 |  |  | 82.0 |  |  | 78.7 |
Calder | 26.3 |  |  | 25.9 |  |  | 81.2 |  |  | 74.2 |
Oxford | 31.6 |  |  | 31.8 |  |  | 87.8 |  |  | 72.1 |
Riverwalk | 12.6 |  |  | 14.5 |  |  | 41.0 |  |  | 47.3 |
Harlow’s | 11.9 |  |  | 13.3 |  |  | 37.0 |  |  | 43.9 |
Lady Luck Nemacolin | 6.0 |  |  | 7.4 |  |  | 18.1 |  |  | 18.7 |
Total Gaming | 183.4 |  |  | 185.3 |  |  | 545.0 |  |  | 523.3 |
All Other | 1.2 |  |  | 20.5 |  |  | 2.2 |  |  | 38.5 |
Net revenue from external customers | $ | 383.1 |  |  | $ | 393.0 |  |  | $ | 1,329.7 |  |  | $ | 1,232.4 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2022 |  | 2021 |  | 2022 |  | 2021
Intercompany net revenue: |  |  |  |  |  |  |
Live and Historical Racing | $ | 10.1 |  |  | $ | 1.8 |  |  | $ | 26.3 |  |  | $ | 17.9 |
TwinSpires | 1.2 |  |  | 1.5 |  |  | 4.0 |  |  | 4.8
Gaming | 2.5 |  |  | 0.3 |  |  | 4.6 |  |  | 2.3 |
All Other | — |  |  | 2.5 |  |  | — |  |  | 6.5 |
Eliminations | (13.8) |  |  | (6.1) |  |  | (34.9) |  |  | (31.5) |
Intercompany net revenue | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
| Three Months Ended September 30, 2022
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming |  | Total Segments |  | All Other |  | Total
Net revenue from external customers |  |  |  |  |  |  |  |  |  |  |
Pari-mutuel: |  |  |  |  |  |  |  |  |  |  |
Live and simulcast racing | $ | 1.8 |  |  | $ | 91.0 |  |  | $ | 3.6 |  |  | $ | 96.4 |  |  | $ | — |  |  | $ | 96.4 |
Historical racing(a) | 78.7 |  |  | — |  |  | 3.5 |  |  | 82.2 |  |  | — |  |  | 82.2 |
Racing event-related services | 3.0 |  |  | — |  |  | 0.1 |  |  | 3.1 |  |  | — |  |  | 3.1 |
Gaming(a) | 0.9 |  |  | 5.3 |  |  | 160.6 |  |  | 166.8 |  |  | — |  |  | 166.8 |
Other(a) | 7.9 |  |  | 9.9 |  |  | 15.6 |  |  | 33.4 |  |  | 1.2 |  |  | 34.6 |
Total | $ | 92.3 |  |  | $ | 106.2 |  |  | $ | 183.4 |  |  | $ | 381.9 |  |  | $ | 1.2 |  |  | $ | 383.1 |
| 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 |  |  | 9.4 |  |  | 13.7 |  |  | 29.4 |  |  | 2.9 |  |  | 32.3 |
Total | $ | 79.7 |  |  | $ | 107.5 |  |  | $ | 185.3 |  |  | $ | 372.5 |  |  | $ | 20.5 |  |  | $ | 393.0 |
(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 $8.4 million for the three months ended September 30, 2022 and $6.1 million for the three months ended September 30, 2021.
| Nine Months Ended September 30, 2022
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming |  | Total Segments |  | All Other |  | Total
Net revenue from external customers |  |  |  |  |  |  |  |  |  |  |
Pari-mutuel: |  |  |  |  |  |  |  |  |  |  |
Live and simulcast racing | $ | 53.9 |  |  | $ | 290.9 |  |  | $ | 22.0 |  |  | $ | 366.8 |  |  | $ | — |  |  | $ | 366.8 |
Historical racing(a) | 230.7 |  |  | — |  |  | 4.8 |  |  | 235.5 |  |  | — |  |  | 235.5 |
Racing event-related services | 125.4 |  |  | — |  |  | 0.7 |  |  | 126.1 |  |  | — |  |  | 126.1 |
Gaming(a) | 0.9 |  |  | 21.8 |  |  | 469.6 |  |  | 492.3 |  |  | — |  |  | 492.3 |
Other(a) | 28.3 |  |  | 30.6 |  |  | 47.9 |  |  | 106.8 |  |  | 2.2 |  |  | 109.0 |
Total | $ | 439.2 |  |  | $ | 343.3 |  |  | $ | 545.0 |  |  | $ | 1,327.5 |  |  | $ | 2.2 |  |  | $ | 1,329.7 |
| 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 |  |  | 27.5 |  |  | 32.0 |  |  | 78.1 |  |  | 4.4 |  |  | 82.5 |
Total | $ | 318.8 |  |  | $ | 351.8 |  |  | $ | 523.3 |  |  | $ | 1,193.9 |  |  | $ | 38.5 |  |  | $ | 1,232.4 |
(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 $23.2 million for the nine months ended September 30, 2022 and $15.0 million for the nine months ended September 30, 2021.
Schedule of Segment Reporting Information | Adjusted EBITDA by segment is comprised of the following:
| Three Months Ended September 30, 2022
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming
Net revenue | $ | 102.4 |  |  | $ | 107.4 |  |  | $ | 185.9 |
Taxes and purses | (31.6) |  |  | (6.6) |  |  | (70.6) |
Marketing and advertising | (3.6) |  |  | (1.3) |  |  | (4.1) |
Salaries and benefits | (13.3) |  |  | (6.3) |  |  | (24.6) |
Content expense | (0.6) |  |  | (49.3) |  |  | (2.7) |
Selling, general and administrative expense | (3.4) |  |  | (2.7) |  |  | (7.1) |
Other operating expense | (15.6) |  |  | (10.1) |  |  | (21.7) |
Other income | 0.2 |  |  | — |  |  | 56.5 |
Adjusted EBITDA | $ | 34.5 |  |  | $ | 31.1 |  |  | $ | 111.6 |
| Three Months Ended September 30, 2021
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming
Net revenue | $ | 81.5 |  |  | $ | 109.0 |  |  | $ | 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) |  |  | (7.0) |  |  | (22.5) |
Content expense | (0.5) |  |  | (47.1) |  |  | (1.2) |
Selling, general and administrative expense | (3.1) |  |  | (2.6) |  |  | (7.1) |
Other operating expense | (11.8) |  |  | (11.6) |  |  | (19.7) |
Other income | — |  |  | — |  |  | 51.0 |
Adjusted EBITDA | $ | 27.7 |  |  | $ | 22.1 |  |  | $ | 110.7 |
Adjusted EBITDA by segment is comprised of the following:
| Nine Months Ended September 30, 2022
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming
Net revenue | $ | 465.5 |  |  | $ | 347.3 |  |  | $ | 549.6 |
Taxes and purses | (118.0) |  |  | (21.3) |  |  | (206.1) |
Marketing and advertising | (12.9) |  |  | (11.4) |  |  | (11.3) |
Salaries and benefits | (43.1) |  |  | (19.9) |  |  | (72.0) |
Content expense | (2.2) |  |  | (160.5) |  |  | (6.4) |
Selling, general and administrative expense | (9.7) |  |  | (7.9) |  |  | (20.4) |
Other operating expense | (53.6) |  |  | (37.2) |  |  | (63.9) |
Other income | 0.3 |  |  | — |  |  | 140.0 |
Adjusted EBITDA | $ | 226.3 |  |  | $ | 89.1 |  |  | $ | 309.5 |
| Nine Months Ended September 30, 2021
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming
Net revenue | $ | 336.7 |  |  | $ | 356.6 |  |  | $ | 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) |  |  | (20.0) |  |  | (63.0) |
Content expense | (1.9) |  |  | (162.1) |  |  | (3.5) |
Selling, general and administrative expense | (9.2) |  |  | (8.1) |  |  | (19.0) |
Other operating expense | (39.8) |  |  | (38.1) |  |  | (52.9) |
Other income | 0.1 |  |  | — |  |  | 134.3 |
Adjusted EBITDA | $ | 144.4 |  |  | $ | 69.8 |  |  | $ | 312.9 |
|  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) |  |  |  |  | 2022 |  | 2021 |  | 2022 |  | 2021
Reconciliation of Comprehensive Income to Adjusted EBITDA: |  |  |  |  |  |  |  |  |  |  |
Net income and comprehensive income |  |  |  |  | $ | 57.0 |  |  | $ | 61.4 |  |  | $ | 438.4 |  |  | $ | 205.8 |
Additions: |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  |  |  | 27.5 |  |  | 25.9 |  |  | 78.7 |  |  | 77.9 |
Interest expense |  |  |  |  | 36.2 |  |  | 21.7 |  |  | 92.6 |  |  | 63.1 |
Income tax provision |  |  |  |  | 16.4 |  |  | 26.3 |  |  | 173.5 |  |  | 84.1 |
EBITDA |  |  |  |  | $ | 137.1 |  |  | $ | 135.3 |  |  | $ | 783.2 |  |  | $ | 430.9 |
Adjustments to EBITDA: |  |  |  |  |  |  |  |  |  |  |
Stock-based compensation expense |  |  |  |  | $ | 9.1 |  |  | $ | 7.8 |  |  | $ | 23.5 |  |  | $ | 20.4 |
Legal reserve |  |  |  |  | — |  |  | — |  |  | 3.2 |  |  | — |
Pre-opening expense |  |  |  |  | 4.2 |  |  | 1.7 |  |  | 8.9 |  |  | 3.8 |
Other expenses, net |  |  |  |  | 1.4 |  |  | — |  |  | 5.7 |  |  | 0.2 |
Asset impairments |  |  |  |  | — |  |  | — |  |  | 4.9 |  |  | 11.2 |
Transaction expense, net |  |  |  |  | 1.2 |  |  | 2.0 |  |  | 7.4 |  |  | 2.1 |
Other income, expense: |  |  |  |  |  |  |  |  |  |  |
Interest, depreciation and amortization expense related to equity investments |  |  |  |  | 10.1 |  |  | 10.7 |  |  | 31.7 |  |  | 30.8 |
Changes in fair value of Rivers Des Plaines' interest rate swaps |  |  |  |  | — |  |  | (2.0) |  |  | (12.6) |  |  | (8.0) |
Rivers Des Plaines' legal reserves and transaction costs |  |  |  |  | 0.1 |  |  | 0.6 |  |  | 0.6 |  |  | 8.6 |
Other charges |  |  |  |  | — |  |  | — |  |  | 1.0 |  |  | — |
Gain on Calder land sale |  |  |  |  | — |  |  | — |  |  | (274.6) |  |  | — |
Total adjustments to EBITDA |  |  |  |  | 26.1 |  |  | 20.8 |  |  | (200.3) |  |  | 69.1 |
Adjusted EBITDA |  |  |  |  | $ | 163.2 |  |  | $ | 156.1 |  |  | $ | 582.9 |  |  | $ | 500.0 |
Adjusted EBITDA by segment: |  |  |  |  |  |  |  |  |  |  |
Live and Historical Racing |  |  |  |  | $ | 34.5 |  |  | $ | 27.7 |  |  | $ | 226.3 |  |  | $ | 144.4 |
TwinSpires |  |  |  |  | 31.1 |  |  | 22.1 |  |  | 89.1 |  |  | 69.8 |
Gaming |  |  |  |  | 111.6 |  |  | 110.7 |  |  | 309.5 |  |  | 312.9 |
Total segment Adjusted EBITDA |  |  |  |  | 177.2 |  |  | 160.5 |  |  | 624.9 |  |  | 527.1 |
All Other |  |  |  |  | (14.0) |  |  | (4.4) |  |  | (42.0) |  |  | (27.1) |
Total Adjusted EBITDA |  |  |  |  | $ | 163.2 |  |  | $ | 156.1 |  |  | $ | 582.9 |  |  | $ | 500.0 |
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) | 2022 |  | 2021 |  |  |  |  |  | 2022 |  | 2021
Gaming | $ | 42.3 |  |  | $ | 41.6 |  |  |  |  |  |  | $ | 115.3 |  |  | $ | 102.9 |
Schedule of Total Assets and Capital Expenditures by Operating Segment | The table below presents total asset information for each of our segments:
(in millions) | September 30, 2022 |  | December 31, 2021
Total assets: |  |  |
Live and Historical Racing | $ | 1,051.1 |  |  | $ | 682.7 |
TwinSpires | 285.2 |  |  | 289.6 |
Gaming | 1,318.7 |  |  | 1,003.3 |
Total segment assets | 2,655.0 |  |  | 1,975.6 |
All Other | 2,019.1 |  |  | 1,006.0 |
Total assets | $ | 4,674.1 |  |  | $ | 2,981.6 |
The table below presents total capital expenditures for each of our segments:
| Nine Months Ended September 30,
(in millions) | 2022 |  | 2021
Capital expenditures, net: |  |  |
Live and Historical Racing | $ | 177.4 |  |  | $ | 32.3 |
TwinSpires | 9.3 |  |  | 8.5 |
Gaming | 63.0 |  |  | 9.3 |
Total segment capital expenditures | 249.7 |  |  | 50.1 |
All Other | 14.0 |  |  | 2.0 |
Total capital expenditures | $ | 263.7 |  |  | $ | 52.1 |

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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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599 + Details
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