XML 41 R30.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in millions)
2018
 
2017
 
2018
 
2017
Net revenue from external customers:
 
 
 
 
 
 
 
Racing:
 
 
 
 
 
 
 
Churchill Downs
$
154.9

 
$
136.7

 
$
156.9

 
$
139.0

Arlington
17.7

 
18.0

 
26.0

 
26.5

Fair Grounds
9.2

 
10.0

 
22.0

 
22.5

Calder
0.7

 
0.6

 
1.3

 
1.2

Total Racing
182.5

 
165.3

 
206.2

 
189.2

TwinSpires
93.7

 
80.5

 
156.9

 
132.5

Casino:
 
 
 
 
 
 
 
Oxford Casino
26.2

 
23.1

 
50.4

 
44.0

Riverwalk Casino
13.6

 
12.0

 
28.0

 
23.5

Harlow’s Casino
12.5

 
12.5

 
25.8

 
26.0

Calder Casino
25.3

 
21.8

 
49.6

 
43.2

Fair Grounds Slots
9.2

 
8.8

 
19.8

 
19.0

VSI
11.1

 
9.8

 
22.1

 
19.5

Saratoga
0.3

 
0.3

 
0.6

 
0.6

Total Casino
98.2

 
88.3

 
196.3

 
175.8

Other Investments
5.0

 
5.2

 
9.3

 
9.3

Net revenue from external customers
$
379.4

 
$
339.3

 
$
568.7

 
$
506.8


 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in millions)
2018
 
2017
 
2018
 
2017
Intercompany net revenue:
 
 
 
 
 
 
 
Racing:
 
 
 
 
 
 
 
Churchill Downs
$
9.4

 
$
8.4

 
$
9.7

 
$
8.7

Arlington
2.1

 
1.9

 
3.3

 
2.9

Fair Grounds
0.1

 
0.1

 
1.1

 
1.0

Total Racing
11.6

 
10.4

 
14.1

 
12.6

TwinSpires
0.4

 
0.3

 
0.8

 
0.6

Other Investments
1.5

 
1.3

 
2.7

 
2.7

Eliminations
(13.5
)
 
(12.0
)
 
(17.6
)
 
(15.9
)
Intercompany net revenue
$
—

 
$
—

 
$
—

 
$
—
Schedule of Segment Reporting Information, by Segment [Table Text Block]
Adjusted EBITDA by segment is comprised of the following:
 
Three Months Ended June 30, 2018
(in millions)
Racing
 
TwinSpires
 
Casino
 
Other Investments
 
Corporate
Net revenue
$
194.1

 
$
94.1

 
$
98.2

 
$
6.5

 
$
—

 
 
 
 
 
 
 
 
 
 
Taxes & purses
(34.4
)
 
(4.6
)
 
(33.4
)
 
—

 
—

Marketing & advertising
(3.6
)
 
(3.1
)
 
(3.5
)
 
(0.1
)
 
—

Salaries & benefits
(15.3
)
 
(2.4
)
 
(13.6
)
 
(3.6
)
 
—

Content expense
(4.7
)
 
(49.8
)
 
—

 
—

 
—

SG&A expense
(4.6
)
 
(2.9
)
 
(5.6
)
 
(0.7
)
 
(2.6
)
Other operating expense
(22.8
)
 
(8.2
)
 
(11.1
)
 
(1.1
)
 
(0.1
)
Other income
0.4

 
—

 
12.9

 
0.1

 
—

Adjusted EBITDA
$
109.1

 
$
23.1

 
$
43.9

 
$
1.1

 
$
(2.7
)

 
Three Months Ended June 30, 2017
(in millions)
Racing
 
TwinSpires
 
Casino
 
Other Investments
 
Corporate (a)
Net revenue
$
175.7

 
$
80.8

 
$
88.3

 
$
6.5

 
$
—

 
 
 
 
 
 
 
 
 
 
Taxes & purses
(32.9
)
 
(4.1
)
 
(29.7
)
 
—

 
—

Marketing & advertising
(2.2
)
 
(4.6
)
 
(3.0
)
 
—

 
—

Salaries & benefits
(13.5
)
 
(2.6
)
 
(13.4
)
 
(3.3
)
 
—

Content expense
(4.7
)
 
(40.2
)
 
—

 
—

 
—

SG&A expense
(4.2
)
 
(3.0
)
 
(5.6
)
 
(0.7
)
 
(2.5
)
Other operating expense
(20.0
)
 
(7.0
)
 
(9.8
)
 
(1.2
)
 
(0.3
)
Other income
0.5

 
—

 
10.7

 
—

 
—

Adjusted EBITDA
$
98.7

 
$
19.3


$
37.5

 
$
1.3


$
(2.8
)
(a) The Corporate segment includes corporate and other certain expenses of $0.7 million for the three months ended June 30, 2017 that have not been allocated to Big Fish Games as a result of the Big Fish Transaction. The Big Fish Games segment is reported as held for sale and discontinued operations in the accompanying condensed consolidated financial statements and these notes.

 
Six Months Ended June 30, 2018
(in millions)
Racing
 
TwinSpires
 
Casinos
 
Other Investments
 
Corporate
Net revenue
$
220.3

 
$
157.7

 
$
196.3

 
$
12.0

 
$
—

 
 
 
 
 
 
 
 
 
 
Taxes & purses
(44.7
)
 
(8.0
)
 
(65.8
)
 
—

 
—

Marketing & advertising
(4.4
)
 
(3.9
)
 
(6.7
)
 
(0.1
)
 
—

Salaries & benefits
(23.9
)
 
(4.5
)
 
(27.1
)
 
(6.8
)
 
—

Content expense
(7.8
)
 
(82.0
)
 
—

 
—

 
—

SG&A expense
(8.6
)
 
(5.7
)
 
(11.0
)
 
(1.4
)
 
(5.0
)
Other operating expense
(31.6
)
 
(14.0
)
 
(21.2
)
 
(2.4
)
 
(0.3
)
Other income
0.4

 
—

 
23.7

 
0.1

 
0.1

Adjusted EBITDA
$
99.7

 
$
39.6

 
$
88.2

 
$
1.4

 
$
(5.2
)

 
Six Months Ended June 30, 2017
(in millions)
Racing
 
TwinSpires
 
Casinos
 
Other Investments
 
Corporate (a)
Net revenue
$
201.8

 
$
133.1

 
$
175.8

 
$
12.0

 
$
—

 
 
 
 
 
 
 
 
 
 
Taxes & purses
(43.1
)
 
(7.1
)
 
(58.8
)
 
—

 
—

Marketing & advertising
(2.9
)
 
(5.6
)
 
(6.0
)
 
—

 
—

Salaries & benefits
(22.1
)
 
(4.8
)
 
(26.5
)
 
(6.2
)
 
—

Content expense
(7.9
)
 
(65.6
)
 
—

 
—

 
—

SG&A expense
(8.0
)
 
(5.7
)
 
(10.8
)
 
(1.5
)
 
(5.4
)
Other operating expense
(29.3
)
 
(11.8
)
 
(21.2
)
 
(2.5
)
 
(0.5
)
Other income
0.5

 
—

 
20.3

 
0.1

 
—

Adjusted EBITDA
$
89.0

 
$
32.5

 
$
72.8

 
$
1.9

 
$
(5.9
)

(a) The Corporate segment includes corporate and other certain expenses of $1.4 million for the six months ended June 30, 2017 that have not been allocated to Big Fish Games as a result of the Big Fish Transaction. The Big Fish Games segment is reported as held for sale and discontinued operations in the accompanying condensed consolidated financial statements and these notes.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in millions)
2018
 
2017
 
2018
 
2017
Reconciliation of Comprehensive Income to Adjusted EBITDA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income
$
102.9

 
$
78.0

 
$
284.9

 
$
85.2

Foreign currency translation, net of tax
—

 
0.3

 
—

 
0.4

Change in pension benefits, net of tax
0.2

 
—

 
0.2

 
—

Net income
103.1

 
78.3

 
285.1

 
85.6

Income from discontinued operations, net of tax
0.1

 
(5.6
)
 
(167.8
)
 
(10.7
)
Income from continuing operations, net of tax
103.2


72.7


117.3


74.9

 
 
 
 
 
 
 
 
Additions:
 
 
 
 
 
 
 
Depreciation and amortization
15.3

 
14.4

 
29.1

 
28.6

Interest expense
9.7

 
11.6

 
19.3

 
23.4

Income tax provision
32.8

 
47.0

 
35.4

 
47.6

EBITDA
161.0

 
145.7

 
201.1

 
174.5

 
 
 
 
 
 
 
 
Adjustments to EBITDA:
 
 
 
 
 
 
 
Selling, general and administrative:
 
 
 
 
 
 
 
Stock-based compensation expense
6.4

 
4.4

 
9.2

 
7.8

Other charges
—

 
(0.2
)
 
—

 
—

Pre-opening expense
0.7

 
0.3

 
1.3

 
0.3

Other income, expense:
 
 
 
 
 
 
 
Interest, depreciation and amortization expense related to equity investments
4.3

 
3.1

 
8.6

 
6.6

Transaction expense, net
2.1

 
0.5

 
3.5

 
0.5

Calder exit costs
—

 
0.2

 
—

 
0.6

Total adjustments to EBITDA
13.5

 
8.3

 
22.6

 
15.8

Adjusted EBITDA
$
174.5

 
$
154.0

 
$
223.7

 
$
190.3

 
 
 
 
 
 
 
 
Adjusted EBITDA by segment:
 
 
 
 
 
 
 
Racing
$
109.1

 
$
98.7

 
$
99.7

 
$
89.0

TwinSpires
23.1

 
19.3

 
39.6

 
32.5

Casino
43.9

 
37.5

 
88.2

 
72.8

Other Investments
1.1

 
1.3

 
1.4

 
1.9

Corporate(a) 
(2.7
)
 
(2.8
)
 
(5.2
)
 
(5.9
)
Adjusted EBITDA
$
174.5

 
$
154.0

 
$
223.7

 
$
190.3
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block]
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in millions)
2018
 
2017
 
2018
 
2017
Casino
$
8.8

 
$
7.7

 
$
15.3

 
$
13.8
Reconciliation of Assets from Segment to Consolidated
The table below presents total asset information for each of our operating segments:
(in millions)
June 30, 2018
 
December 31, 2017
Total assets:
 
 
 
Racing
$
496.4

 
$
483.0

TwinSpires
222.0

 
215.9

Casino
671.9

 
679.6

Other Investments
53.5

 
15.2

Corporate
252.8

 
73.2

Big Fish Games
—

 
892.5

 
$
1,696.6

 
$
2,359.4


The table below presents total capital expenditures for each of our operating segments:
 
Six Months Ended June 30,
(in millions)
2018
 
2017
Capital expenditures:
 
 
 
Racing
$
43.0

 
$
38.4

TwinSpires
4.7

 
5.2

Casino
5.9

 
15.6

Other Investments
17.6

 
0.7

Corporate
1.0

 
0.6

Big Fish Games
—

 
3.5

 
$
72.2

 
$
64.0