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Segment Information
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATIONWe manage our operations through three reportable segments: Churchill Downs, Online Wagering and Gaming. Refer to Note 1, Description of Business, for additional information regarding the changes we made to our segments during the first quarter of 2019. Prior year amounts have been reclassified to conform to this presentation.
Eliminations include the elimination of intersegment transactions. We utilize non-GAAP measures, including EBITDA (earnings before interest, taxes, depreciation and amortization) and Adjusted EBITDA. Our chief operating decision maker utilizes Adjusted EBITDA to evaluate segment performance, develop strategy and allocate resources. Adjusted EBITDA includes the following adjustments:
Adjusted EBITDA includes our portion of EBITDA from our equity investments.
Adjusted EBITDA excludes:
•Transaction expense, net which includes:
◦Acquisition and disposition related charges, including fair value adjustments related to earnouts and deferred payments;
◦Calder racing exit costs; and
◦Other transaction expense, including legal, accounting, and other deal-related expense;
•Stock-based compensation expense;
•Midwest Gaming's impact on our investments in unconsolidated affiliates from:
◦The impact of changes in fair value of interest rate swaps; and
◦Recapitalization and transaction costs;
•Asset impairments;
•Gain on Ocean Downs/Saratoga Transaction;
•Loss on extinguishment of debt;
•Legal reserves;
•Pre-opening expense; and
•Other charges, recoveries and expenses
We utilize the Adjusted EBITDA metric to provide a more accurate measure of our core operating results and enable management and investors to evaluate and compare from period to period our operating performance in a meaningful and consistent manner. Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure provided in accordance with GAAP. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited. For segment reporting, Adjusted EBITDA includes intercompany revenue and expense totals that are eliminated in the accompanying consolidated statements of comprehensive income.
Effective January 1, 2019, the Company does not allocate corporate and other related expenses to our segments in the accompanying consolidated statements of comprehensive income. The prior year amounts in the accompanying consolidated statements of comprehensive income were reclassified to conform to this presentation.
The tables below present net revenue from external customers and intercompany revenue from each of our segments, Adjusted EBITDA by segment and reconciles comprehensive income to Adjusted EBITDA:
 Years Ended December 31,
(in millions)201920182017
Net revenue from external customers:
Churchill Downs:
Churchill Downs Racetrack$187.6  $181.0  $161.3  
Derby City Gaming86.6  14.8  —  
Total Churchill Downs274.2  195.8  161.3  
Online Wagering:
TwinSpires289.9  290.2  255.6  
Online Sports Betting and iGaming0.6  —  —  
Total Online Wagering290.5  290.2  255.6  
Gaming:
Presque Isle138.5  —  —  
Fair Grounds and VSI123.0  117.7  111.1  
Oxford Casino101.7  102.0  90.8  
Calder99.8  98.6  87.9  
Ocean Downs85.9  25.9  —  
Riverwalk Casino58.9  54.5  48.2  
Harlow’s Casino55.3  50.2  50.0  
Lady Luck Nemacolin29.3  —  —  
Saratoga—  0.6  1.3  
Total Gaming692.4  449.5  389.3  
All Other72.6  73.5  76.4  
Net revenue from external customers$1,329.7  $1,009.0  $882.6  
Intercompany net revenues:
Churchill Downs$15.2  $12.7  $11.4  
Online Wagering1.1  1.3  1.1  
Gaming:
Fair Grounds and VSI1.8  1.6  1.6  
Calder0.1  0.1  —  
Presque Isle0.5  —  —  
Total Gaming2.4  1.7  1.6  
All Other11.6  11.2  10.8  
Eliminations(30.3) (26.9) (24.9) 
Intercompany net revenue$—  $—  $—  
Twelve Months Ended December 31, 2019
(in millions)Churchill DownsOnline WageringGamingTotal SegmentsAll OtherTotal
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing$59.0  $277.1  $30.7  $366.8  $41.1  $407.9  
Historical racing(a)
81.6  —  —  81.6  —  81.6  
Racing event-related services118.7  —  4.1  122.8  5.6  128.4  
Gaming(a)
—  0.6  585.2  585.8  —  585.8  
Other(a)
14.9  12.8  72.4  100.1  25.9  126.0  
Total$274.2  $290.5  $692.4  $1,257.1  $72.6  $1,329.7  

Twelve Months Ended December 31, 2018
(in millions)Churchill DownsOnline WageringGamingTotal SegmentsAll OtherTotal
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing$54.9  $278.4  $27.1  $360.4  $43.1  $403.5  
Historical racing(a)
13.8  —  —  13.8  —  13.8  
Racing event-related services115.2  —  3.9  119.1  5.8  124.9  
Gaming(a)
—  —  365.9  365.9  —  365.9  
Other(a)
11.9  11.8  52.6  76.3  24.6  100.9  
Total$195.8  $290.2  $449.5  $935.5  $73.5  $1,009.0  

Twelve Months Ended December 31, 2017
(in millions)Churchill DownsOnline WageringGamingTotal SegmentsAll OtherTotal
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing$52.0  $239.6  $27.1  $318.7  $44.8  $363.5  
Historical racing(a)
—  —  —  —  —  —  
Racing event-related services100.5  —  4.2  104.7  6.4  111.1  
Gaming(a)
—  —  315.6  315.6  —  315.6  
Other(a)
8.8  16.0  42.4  67.2  25.2  92.4  
Total$161.3  $255.6  $389.3  $806.2  $76.4  $882.6  

(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 $33.4 million in 2019, $26.1 million in 2018, and $21.5 million in 2017.
Adjusted EBITDA by segment is comprised of the following:
Year Ended December 31, 2019
(in millions)Churchill DownsOnline WageringGaming
Net revenue$289.4  $291.6  $694.8  
Taxes and purses(66.5) (15.3) (270.3) 
Marketing and advertising(7.1) (12.2) (21.5) 
Salaries and benefits(32.0) (11.4) (103.3) 
Content expense(2.4) (152.8) (6.0) 
Selling, general and administrative expense(8.0) (7.2) (29.0) 
Other operating expense(35.9) (26.4) (84.1) 
Other income 0.2  —  100.3  
Adjusted EBITDA$137.7  $66.3  $280.9  

Year Ended December 31, 2018
(in millions)Churchill DownsOnline WageringGaming
Net revenue$208.5  $291.5  $451.2  
Taxes and purses(41.3) (15.2) (153.4) 
Marketing and advertising(5.7) (6.0) (15.5) 
Salaries & benefits(23.7) (9.2) (68.9) 
Content expense(2.2) (152.0) (4.1) 
Selling, general and administrative expense(5.3) (5.9) (18.6) 
Other operating expense(28.0) (24.2) (60.0) 
Other income 0.1  —  43.3  
Adjusted EBITDA$102.4  $79.0  $174.0  

Year Ended December 31, 2017
(in millions)Churchill DownsOnline WageringGaming
Net revenue$172.7  $256.7  $390.9  
Taxes and purses(34.1) (14.7) (130.7) 
Marketing and advertising(2.7) (8.2) (13.0) 
Salaries & benefits(19.3) (9.9) (63.4) 
Content expense(2.4) (125.0) (4.0) 
Selling, general and administrative expense(4.0) (6.9) (17.1) 
Other operating expense(21.3) (22.1) (56.1) 
Other income 0.1  —  42.0  
Adjusted EBITDA$89.0  $69.9  $148.6  
 Years Ended December 31,
(in millions)201920182017
Reconciliation of Comprehensive Income to Adjusted EBITDA:
Comprehensive income attributable to CDI$137.5  $353.2  $140.4  
Foreign currency translation, net of tax—  (0.6) 0.1  
Change in pension benefits, net of tax—  0.2  —  
Net income attributable to CDI137.5  352.8  140.5  
Net loss attributable to noncontrolling interest0.3  —  —  
Net income before noncontrolling interest137.2  352.8  140.5  
Loss (income) from discontinued operations, net of tax2.4  (170.2) (18.1) 
Income from continuing operations, net of tax139.6  182.6  122.4  
Additions:
Depreciation and amortization96.4  63.6  56.0  
Interest expense70.9  40.1  49.3  
Loss on extinguishment of debt—  —  20.7  
Income tax provision (benefit)56.8  51.3  (19.9) 
EBITDA$363.7  $337.6  $228.5  
Adjustments to EBITDA:
Selling, general and administrative:
Stock-based compensation expense $23.8  $17.7  $16.0  
Legal reserves3.6  —  —  
Other, net0.4  (0.6) 0.5  
Pre-opening expense5.1  4.8  0.5  
Other income, expense:
Interest, depreciation and amortization expense related to equity investments32.6  13.9  16.7  
Changes in fair value of Midwest Gaming's interest rate swaps12.4  —  —  
Midwest Gaming's recapitalization and transactions costs4.7  —  —  
Other charges and recoveries, net(0.2) —  —  
Gain on Ocean Downs/Saratoga transaction—  (54.9) —  
Transaction expense, net5.3  10.3  2.3  
Impairment of tangible and other intangible assets—  —  21.7  
Total adjustments to EBITDA87.7  (8.8) 57.7  
Adjusted EBITDA$451.4  $328.8  $286.2  
Adjusted EBITDA by segment:
Churchill Downs$137.7  $102.4  $89.0  
Online Wagering66.3  79.0  69.9  
Gaming280.9  174.0  148.6  
Total segment Adjusted EBITDA484.9  355.4  307.5  
All Other(33.5) (26.6) (21.3) 
Total Adjusted EBITDA$451.4  $328.8  $286.2  
The table below presents information about equity in income of unconsolidated affiliates included in our reported segments:
Years Ended December 31,
(in millions)201920182017
Gaming$50.5  $29.4  $25.3  
All Other0.1  0.2  0.2  
$50.6  $29.6  $25.5  

The table below presents total asset information for each of our segments:
 As of December 31,
(in millions)20192018
Total assets:
Churchill Downs$370.3  $359.6  
Online Wagering241.5  222.8  
Gaming1,030.1  877.1  
Total segment assets1,641.9  1,459.5  
All Other909.1  265.7  
$2,551.0  $1,725.2  

The table below presents total capital expenditures for each of our segments:
 Years Ended December 31,
(in millions)201920182017
Capital expenditures:
Churchill Downs$31.4  $109.6  $54.1  
Online Wagering9.7  9.7  9.0  
Gaming37.1  20.7  39.7  
Total segment capital expenditures78.2  140.0  102.8  
All Other53.0  9.4  6.2  
Total capital expenditures$131.2  $149.4  $109.0