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Segment Information (Tables)

6 Months Ended

Jun. 30, 2024

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:

			Three Months Ended June 30,												Six Months Ended June 30,
(in millions)			2024						2023						2024						2023
Net revenue from external customers:
Live and Historical Racing:
Churchill Downs Racetrack			$	228.0					$	178.3					$	231.1					$	180.7
Louisville			53.1						45.3						106.8						89.3
Northern Kentucky			22.0						17.3						50.5						43.6
Southwestern Kentucky			40.2						37.6						78.8						74.1
Western Kentucky			6.1						9.4						12.9						14.2
Virginia			111.9						94.6						223.1						192.3
New Hampshire			3.4						2.5						6.6						5.2
Total Live and Historical Racing			$	464.7					$	385.0					$	709.8					$	599.4
TwinSpires:			$	151.7					$	137.4					$	258.3					$	232.2
Gaming:
Florida			$	26.5					$	26.0					$	52.6					$	52.1
Iowa			23.5						24.0						46.9						48.5
Indiana			33.9						—						33.9						—
Louisiana			37.1						33.8						81.4						77.9
Maine			26.8						29.5						53.6						57.2
Maryland			26.2						27.6						47.8						50.9
Mississippi			24.5						25.8						50.5						53.3
New York			46.5						44.6						91.5						89.1
Pennsylvania			29.2						34.6						55.2						66.9
Total Gaming			274.2						245.9						513.4						495.9
All Other			0.1						0.2						0.1						0.5
Net revenue from external customers			$	890.7					$	768.5					$	1,481.6					$	1,328.0
Intercompany net revenues:
Live and Historical Racing			$	25.5					$	23.0					$	29.3					$	24.4
TwinSpires			8.2						1.7						15.7						3.3
Gaming			0.2						2.0						4.2						3.6
All Other			1.8						—						1.8						—
Eliminations			(35.7)						(26.7)						(51.0)						(31.3)
Intercompany net revenue			$	—					$	—					$	—					$	—

			Three Months Ended June 30, 2024
(in millions)			Live and Historical Racing						TwinSpires						Gaming						Total Segments						All Other						Total
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing			$	50.4					$	115.4					$	4.5					$	170.3					$	—					$	170.3
Historical racing(a)			212.1						—						9.3						221.4						—						221.4
Racing event-related services			176.0						—						1.4						177.4						—						177.4
Gaming(a)			3.3						4.3						228.1						235.7						—						235.7
Other(a)			22.9						32.0						30.9						85.8						0.1						85.9
Total			$	464.7					$	151.7					$	274.2					$	890.6					$	0.1					$	890.7

			Three Months Ended June 30, 2023
(in millions)			Live and Historical Racing						TwinSpires						Gaming						Total Segments						All Other						Total
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing			$	40.2					$	117.5					$	3.2					$	160.9					$	—					$	160.9
Historical racing(a)			184.1						—						7.0						191.1						—						191.1
Racing event-related services			136.7						—						1.5						138.2						—						138.2
Gaming(a)			2.5						1.2						206.9						210.6						—						210.6
Other(a)			21.5						18.7						27.3						67.5						0.2						67.7
Total			$	385.0					$	137.4					$	245.9					$	768.3					$	0.2					$	768.5

(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 $14.2 million for the three months ended June 30, 2024 and $12.3 million for the three months ended June 30, 2023.

			Six Months Ended June 30, 2024
(in millions)			Live and Historical Racing						TwinSpires						Gaming						Total Segments						All Other						Total
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing			$	61.4					$	195.2					$	15.1					$	271.7					$	—					$	271.7
Historical racing(a)			424.2						—						18.1						442.3						—						442.3
Racing event-related services			177.1						—						3.6						180.7						—						180.7
Gaming(a)			6.4						10.0						421.2						437.6						—						437.6
Other(a)			40.7						53.1						55.4						149.2						0.1						149.3
Total			$	709.8					$	258.3					$	513.4					$	1,481.5					$	0.1					$	1,481.6

			Six Months Ended June 30, 2023
(in millions)			Live and Historical Racing						TwinSpires						Gaming						Total Segments						All Other						Total
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing			$	51.2					$	196.9					$	14.8					$	262.9					$	—					$	262.9
Historical racing(a)			369.4						—						13.0						382.4						—						382.4
Racing event-related services			137.7						—						3.4						141.1						—						141.1
Gaming(a)			5.1						5.6						412.4						423.1						—						423.1
Other(a)			36.0						29.7						52.3						118.0						0.5						118.5
Total			$	599.4					$	232.2					$	495.9					$	1,327.5					$	0.5					$	1,328.0

(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 racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $27.6 million for the six months ended June 30, 2024 and $24.5 million for the six months ended June 30, 2023.

The tables below present net revenue from external customers, Adjusted EBITDA by segment and reconciles comprehensive income to Adjusted EBITDA:

Net revenue by segment is comprised of the following:

			Three Months Ended June 30,												Six Months Ended June 30,
(in millions)			2024						2023						2024						2023
Live and Historical Racing			$	464.7					$	385.0					$	709.8					$	599.4
TwinSpires			151.7						137.4						258.3						232.2
Gaming			274.2						245.9						513.4						495.9
All Other			0.1						0.2						0.1						0.5
Net Revenue			$	890.7					$	768.5					$	1,481.6					$	1,328.0

Schedule of Segment Reporting Information

Adjusted EBITDA by segment is comprised of the following:

			Three Months Ended June 30, 2024
(in millions)			Live and Historical Racing						TwinSpires						Gaming
Revenues			$	490.2					$	159.9					$	274.4
Gaming taxes and purses			(100.0)						(7.3)						(83.5)
Marketing and advertising			(12.5)						(4.9)						(9.2)
Salaries and benefits			(36.5)						(8.0)						(40.3)
Content expense			(2.1)						(73.3)						(2.6)
Selling, general and administrative expense			(8.5)						(4.3)						(11.8)
Maintenance, insurance and utilities			(11.5)						(1.0)						(11.1)
Property and other taxes			(1.8)						—						(3.3)
Other operating expense			(38.3)						(14.9)						(20.2)
Other income			0.2						—						48.3
Adjusted EBITDA			$	279.2					$	46.2					$	140.7

			Three Months Ended June 30, 2023
(in millions)			Live and Historical Racing						TwinSpires						Gaming
Revenues			$	408.0					$	139.1					$	247.9
Gaming taxes and purses			(85.4)						(7.0)						(81.7)
Marketing and advertising			(12.1)						(5.3)						(9.0)
Salaries and benefits			(30.3)						(7.5)						(39.5)
Content expense			(2.0)						(68.7)						(2.7)
Selling, general and administrative expense			(7.3)						(2.7)						(10.3)
Maintenance, insurance and utilities			(10.1)						(0.8)						(9.6)
Property and other taxes			(1.5)						(0.1)						(3.0)
Other operating expense			(36.0)						(13.1)						(17.4)
Other income			0.2						—						48.7
Adjusted EBITDA			$	223.5					$	33.9					$	123.4

			Six Months Ended June 30, 2024
(in millions)			Live and Historical Racing						TwinSpires						Gaming
Revenues			$	739.1					$	274.0					$	517.6
Gaming taxes and purses			(165.0)						(12.2)						(164.0)
Marketing and advertising			(21.8)						(6.1)						(17.0)
Salaries and benefits			(63.3)						(15.9)						(78.3)
Content expense			(3.4)						(117.3)						(4.4)
Selling, general and administrative expense			(17.3)						(8.8)						(22.0)
Maintenance, insurance and utilities			(21.8)						(2.0)						(20.7)
Property and other taxes			(4.5)						(0.1)						(6.7)
Other operating expense			(62.2)						(25.8)						(38.5)
Other income			0.2						—						97.5
Adjusted EBITDA			$	380.0					$	85.8					$	263.5

			Six Months Ended June 30, 2023
(in millions)			Live and Historical Racing						TwinSpires						Gaming
Revenues			$	623.8					$	235.5					$	499.5
Gaming taxes and purses			(141.9)						(12.0)						(165.3)
Marketing and advertising			(20.3)						(6.7)						(17.6)
Salaries and benefits			(52.1)						(13.7)						(74.0)
Content expense			(3.5)						(111.7)						(4.5)
Selling, general and administrative expense			(16.0)						(5.1)						(22.5)
Maintenance, insurance and utilities			(19.4)						(1.7)						(19.4)
Property and other taxes			(2.7)						(0.1)						(6.3)
Other operating expense			(62.5)						(22.2)						(34.3)
Other income			0.2						1.0						97.3
Adjusted EBITDA			$	305.6					$	63.3					$	252.9

Adjusted EBITDA by segment is comprised of the following:

			Three Months Ended June 30,												Six Months Ended June 30,
(in millions)			2024						2023						2024						2023
Reconciliation of Comprehensive Income to Adjusted EBITDA:
Net income attributable to Churchill Downs Incorporated			$	209.3					$	143.0					$	289.7					$	298.7
Net income attributable to noncontrolling interest			0.9						—						0.9						—
Net income and comprehensive income			210.2						143.0						290.6						298.7
Additions:
Depreciation and amortization			49.2						41.8						96.1						79.7
Interest expense			73.5						65.2						143.9						129.9
Income tax provision			84.1						56.2						105.5						109.4
EBITDA			$	417.0					$	306.2					$	636.1					$	617.7
Adjustments to EBITDA:
Stock-based compensation expense			$	8.9					$	8.1					$	16.1					$	16.7
Pre-opening expense			7.5						3.2						15.8						6.4
Arlington exit costs			—						5.9						—						9.3
Other expenses, net			0.1						6.6						0.3						6.9
Asset impairments			—						24.5						—						24.5
Transaction expense, net			0.6						0.5						4.7						0.3
Other income, expense:
Interest, depreciation and amortization expense related to equity investments			10.5						9.9						20.8						19.7
Rivers Des Plaines' legal reserves and transaction costs			0.3						—						0.3						—
Other charges and recoveries, net			(0.1)						(1.2)						(6.8)						(0.9)
Gain on sale of Arlington			—						—						—						(114.0)
Total adjustments to EBITDA			27.8						57.5						51.2						(31.1)
Adjusted EBITDA			$	444.8					$	363.7					$	687.3					$	586.6
Adjusted EBITDA by segment:
Live and Historical Racing			$	279.2					$	223.5					$	380.0					$	305.6
TwinSpires			46.2						33.9						85.8						63.3
Gaming			140.7						123.4						263.5						252.9
Total segment Adjusted EBITDA			466.1						380.8						729.3						621.8
All Other			(21.3)						(17.1)						(42.0)						(35.2)
Total Adjusted EBITDA			$	444.8					$	363.7					$	687.3					$	586.6

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, 2024						December 31, 2023
Total assets:
Live and Historical Racing			$	4,040.0					$	3,872.9
TwinSpires			480.2						473.9
Gaming			1,944.4						1,920.9
Total segment assets			6,464.6						6,267.7
All Other			705.5						687.8
Total assets			$	7,170.1					$	6,955.5

The table below presents total capital expenditures for each of our segments:

			Six Months Ended June 30,
(in millions)			2024						2023
Capital expenditures:
Live and Historical Racing			$	188.3					$	239.8
TwinSpires			7.2						6.4
Gaming			88.5						62.4
Total segment capital expenditures			284.0						308.6
All Other			8.0						3.8
Total capital expenditures			$	292.0					$	312.4

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- Definition

Tabular disclosure of all significant reconciling items in the reconciliation of total assets from reportable segments to the entity's consolidated assets.

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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.

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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.

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