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Segment Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
We manage our operations through three reportable segments: Live and Historical Racing, TwinSpires, 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 2021. Prior year amounts have been reclassified to conform to this presentation. Our operating segments reflect the internal management reporting used by our chief operating decision maker to evaluate results of operations and to assess performance and allocate resources.
•Live and Historical Racing
The Live and Historical Racing segment includes live and historical pari-mutuel racing related revenue and expenses at Churchill Downs Racetrack, Derby City Gaming, Oak Grove, Turfway Park, and Newport.
Churchill Downs Racetrack is the home of the Kentucky Derby and conducts live racing during the year. Derby City Gaming is a historical racing machine facility that operates under the Churchill Downs pari-mutuel racing license at its ancillary training facility in Louisville, Kentucky. Oak Grove conducts live harness racing during the year and operates an HRM facility under its pari-mutuel racing license. Turfway Park conducts live racing during the year, and Newport is an ancillary HRM facility that operates under the Turfway Park pari-mutuel racing license.
Our Live and Historical Racing properties earn commissions primarily from pari-mutuel wagering on live and historical races; simulcast fees earned from other wagering sites; admissions, personal seat licenses, sponsorships, television rights, and other miscellaneous services (collectively "racing event-related services"), as well as food and beverage services.
•TwinSpires
The TwinSpires segment includes the revenue and expenses for the online horse racing and the online and retail sports betting and iGaming wagering business.
TwinSpires Horse Racing operates the online horse racing wagering business for TwinSpires.com, BetAmerica.com, and other white-label platforms; facilitates high dollar wagering by international customers (through Velocity); and provides the Bloodstock Research Information Services platform for horse racing statistical data.
Our sports betting and iGaming business includes the retail and online TwinSpires sports betting and online casino gaming operations.
Our TwinSpires Sports and Casino business operates our sports betting platform in multiple states, including Colorado, Indiana, Maryland, Michigan, Mississippi, New Jersey, Pennsylvania, Tennessee, and Arizona. Our casino iGaming platform is operated in Michigan, New Jersey, and Pennsylvania. The Sports and Casino business includes the results of mobile sports betting, online sports betting, casino iGaming, and our retail sportsbooks. We operate eight retail sportsbooks in Colorado, Indiana, Maryland, Michigan, Arizona, Pennsylvania, and Mississippi, four of which operate under a third party’s casino license. River Casino Des Plaines ("Rivers Des Plaines") retail and online BetRivers sportsbook is included in the Gaming segment.
•Gaming
The Gaming segment includes revenue and expenses for the casino properties and associated racetrack or jai alai facilities which support the casino license as applicable. The Gaming segment has approximately 11,000 slot machines and video lottery terminals ("VLTs") and 200 table games located in eight states.
The Gaming segment revenue and expenses includes the following properties:
◦Calder
◦Fair Grounds and VSI
◦Harlow’s
◦Lady Luck Casino Nemacolin management agreement
◦Ocean Downs
◦Oxford Casino and Hotel ("Oxford")
◦Presque Isle
◦Riverwalk
The Gaming segment also includes net income for our ownership portion of the Company’s equity investments in the following:
◦61.3% equity investment in Midwest Gaming, the parent company of Rivers Des Plaines in Des Plaines, Illinois
◦50% equity investment in MVG
The Gaming segment generates revenue and expenses from slot machines, table games, VLTs, video poker, ancillary food and beverage services, hotel services, commission on pari-mutuel wagering, racing event-related services, and / or other miscellaneous operations.
We have aggregated the following businesses as well as certain corporate operations, and other immaterial joint ventures in "All Other" to reconcile to consolidated results:
•Arlington
•United Tote
•Corporate
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, disposition, and land sale related charges; and
–Other transaction expense, including legal, accounting, and other deal-related expense;
•Stock-based compensation expense;
•Rivers Des Plaines' impact on our investments in unconsolidated affiliates from:
–The impact of changes in fair value of interest rate swaps; and
–Legal reserves and transaction costs;
•Asset impairments;
•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 (loss).
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)202120202019
Net revenue from external customers:
Live and Historical Racing:
Churchill Downs Racetrack$128.1 $63.3 $187.6 
Derby City Gaming154.3 79.5 86.6 
Oak Grove100.7 16.6 — 
Turfway Park 8.1 7.1 2.5 
Newport17.9 3.1 — 
Total Live and Historical Racing409.1 169.6 276.7 
TwinSpires:
Horse Racing396.9 403.2 289.9 
Sports and Casino34.8 11.3 5.7 
Total TwinSpires431.7 414.5 295.6 
Gaming:
Fair Grounds and VSI133.6 97.6 123.0 
Presque Isle119.6 73.1 137.5 
Ocean Downs100.6 60.2 85.9 
Calder100.0 51.8 99.8 
Oxford Casino99.8 44.9 101.7 
Riverwalk Casino61.2 46.3 56.1 
Harlow’s Casino56.1 40.7 54.0 
Lady Luck Nemacolin24.5 20.7 29.3 
Total Gaming695.4 435.3 687.3 
All Other61.0 34.6 70.1 
Net revenue from external customers$1,597.2 $1,054.0 $1,329.7 
Intercompany net revenues:
Live and Historical Racing:
Churchill Downs Racetrack$19.9 $17.8 $15.2 
Turfway Park 1.6 1.4 0.3 
Total Live and Historical Racing21.5 19.2 15.5 
TwinSpires1.41.5 1.1 
Gaming:
Fair Grounds and VSI2.6 2.3 1.9 
Presque Isle0.3 0.2 0.4 
Calder0.1 — 0.1 
Total Gaming3.0 2.5 2.4 
All Other12.9 11.8 11.3 
Eliminations(38.8)(35.0)(30.3)
Intercompany net revenue$— $— $— 
Year Ended December 31, 2021
(in millions)Live and Historical RacingTwinSpiresGamingTotal SegmentsAll OtherTotal
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing$64.0 $380.7 $28.2 $472.9 $29.7 $502.6 
Historical racing(a)
253.0 — — 253.0 — 253.0 
Racing event-related services68.5 — 1.2 69.7 7.0 76.7 
Gaming(a)
— 34.8 622.0 656.8 — 656.8 
Other(a)
23.6 16.2 44.0 83.8 24.3 108.1 
Total$409.1 $431.7 $695.4 $1,536.2 $61.0 $1,597.2 
Year Ended December 31, 2020
(in millions)Live and Historical RacingTwinSpiresGamingTotal SegmentsAll OtherTotal
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing$46.5 $387.5 $22.9 $456.9 $18.2 $475.1 
Historical racing(a)
93.6 — — 93.6 — 93.6 
Racing event-related services21.0 — 3.4 24.4 0.3 24.7 
Gaming(a)
— 11.3 381.3 392.6 — 392.6 
Other(a)
8.5 15.7 27.7 51.9 16.1 68.0 
Total$169.6 $414.5 $435.3 $1,019.4 $34.6 $1,054.0 
Year Ended December 31, 2019
(in millions)Live and Historical RacingTwinSpiresGamingTotal SegmentsAll OtherTotal
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing$61.1 $277.1 $30.7 $368.9 $39.0 $407.9 
Historical racing(a)
81.6 — — 81.6 — 81.6 
Racing event-related services118.6 — 4.1 122.7 5.7 128.4 
Gaming(a)
— 5.7 580.1 585.8 — 585.8 
Other(a)
15.4 12.8 72.4 100.6 25.4 126.0 
Total$276.7 $295.6 $687.3 $1,259.6 $70.1 $1,329.7 
(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 $20.9 million in 2021, $13.1 million in 2020, and $33.4 million in 2019.
Adjusted EBITDA by segment is comprised of the following:
Year Ended December 31, 2021
(in millions)Live and Historical RacingTwinSpiresGaming
Net revenue$430.6 $433.1 $698.4 
Taxes and purses(126.3)(30.6)(264.4)
Marketing and advertising(12.9)(49.4)(11.8)
Salaries and benefits(48.4)(13.9)(87.1)
Content expense(2.5)(206.6)(4.7)
Selling, general and administrative expense(12.8)(9.2)(27.9)
Other operating expense(53.0)(45.4)(72.3)
Other income 0.3 — 181.7 
Adjusted EBITDA$175.0 $78.0 $411.9 
Year Ended December 31, 2020
(in millions)Live and Historical RacingTwinSpiresGaming
Net revenue$188.8 $416.0 $437.8 
Taxes and purses(64.1)(25.1)(171.6)
Marketing and advertising(6.2)(16.5)(7.5)
Salaries & benefits(32.5)(13.0)(75.9)
Content expense(1.5)(202.7)(3.5)
Selling, general and administrative expense(8.7)(8.8)(25.4)
Other operating expense(36.8)(37.1)(59.7)
Other income 0.1 0.1 78.9 
Adjusted EBITDA$39.1 $112.9 $173.1 
Year Ended December 31, 2019
(in millions)Live and Historical RacingTwinSpiresGaming
Net revenue$292.2 $296.7 $689.7 
Taxes and purses(68.7)(16.2)(269.4)
Marketing and advertising(7.1)(12.3)(21.4)
Salaries & benefits(32.8)(11.4)(103.3)
Content expense(2.6)(152.2)(5.3)
Selling, general and administrative expense(8.3)(7.1)(29.1)
Other operating expense(37.3)(28.2)(83.6)
Other income 0.2 — 100.3 
Adjusted EBITDA$135.6 $69.3 $277.9 
 Years Ended December 31,
(in millions)202120202019
Reconciliation of Comprehensive Income (Loss) to Adjusted EBITDA:
Net income (loss) and comprehensive income (loss) attributable to Churchill Downs Incorporated$249.1 $(81.9)$137.5 
Net loss attributable to noncontrolling interest— 0.2 0.3 
Net income (loss) 249.1 (82.1)137.2 
Loss from discontinued operations, net of tax— 95.4 2.4 
Income from continuing operations, net of tax249.1 13.3 139.6 
Additions:
Depreciation and amortization103.2 92.9 96.4 
Interest expense84.7 80.0 70.9 
Income tax provision (benefit)94.5 (5.3)56.8 
EBITDA$531.5 $180.9 $363.7 
Adjustments to EBITDA:
Selling, general and administrative:
Stock-based compensation expense $27.8 $23.7 $23.8 
Legal reserves— — 3.6 
Other charges0.2 0.8 0.4 
Pre-opening expense and other expense5.8 11.2 5.1 
Other income, expense:
Interest, depreciation and amortization expense related to equity investments41.5 38.5 32.6 
Changes in fair value of Rivers Des Plaines' interest rate swaps(12.9)12.9 12.4 
Rivers Des Plaines' legal reserves and transactions costs9.9 — 4.7 
Other charges and recoveries, net— — (0.2)
Transaction expense, net7.9 1.0 5.3 
Asset impairments15.3 17.5 — 
Total adjustments to EBITDA95.5 105.6 87.7 
Adjusted EBITDA$627.0 $286.5 $451.4 
Adjusted EBITDA by segment:
Live and Historical Racing$175.0 $39.1 $135.6 
TwinSpires78.0 112.9 69.3 
Gaming411.9 173.1 277.9 
Total segment Adjusted EBITDA664.9 325.1 482.8 
All Other(37.9)(38.6)(31.4)
Total Adjusted EBITDA$627.0 $286.5 $451.4 
The table below presents total asset information for each of our segments:
 December 31,
(in millions)20212020
Total assets:
Live and Historical Racing$682.7 $663.1 
TwinSpires271.8 257.2 
Gaming1,003.3 950.3 
Total segment assets1,957.8 1,870.6 
All Other1,023.8 815.8 
$2,981.6 $2,686.4 

The table below presents total capital expenditures for each of our segments:
 Years Ended December 31,
(in millions)202120202019
Capital expenditures:
Live and Historical Racing$60.1 $213.3 $77.7 
TwinSpires17.4 6.6 9.7 
Gaming10.3 11.6 37.1 
Total segment capital expenditures87.8 231.5 124.5 
All Other4.0 2.7 6.7 
Total capital expenditures$91.8 $234.2 $131.2