Discontinued Operations

6 Months Ended

Jun. 30, 2011

Discontinued Operations

Discontinued Operations

NOTE 2 — DISCONTINUED OPERATIONS

During the three months ended June 30, 2011, the Company recognized a gain on sale of Hollywood Park of $0.2 million upon the expiration of an indemnity of certain contractual obligations related to the sale of Hollywood Park in 2005.

Churchill Downs Entertainment Group, Ellis Park and Hollywood Park have been accounted for as discontinued operations. Accordingly, the results of operations of the dissolved and sold businesses for all periods presented have been classified as discontinued operations, net of income taxes, in the Condensed Consolidated Statements of Net Earnings. Set forth below is a summary of the combined results of operations of the dissolved and sold businesses for the three and six months ended June 30, 2011 and 2010 (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2011		2010			2011			2010
Net revenues	$	—	$	—		$	—		$	—
Operating expenses		—		763			10			872
Selling, general and administrative expenses		—		338			(11	)		670
Operating (loss) income		—		(1,101	)		1			(1,542	)
Other income (expense):
Miscellaneous, net		—		—			—			70
		—		—			—			70
(Loss) earnings from operations before income tax benefit		—		(1,101	)		1			(1,472	)
Income tax benefit		—		437			—			284
(Loss) earnings from operations		—		(664	)		1			(1,188	)
Gain on sale of assets, net of income taxes		157		—			157			—
Net earnings (loss)	$	157	$	(664	)	$	158		$	(1,188	)