Segment Information

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Segment Information

NOTE 9 — SEGMENT INFORMATION

The Company operates in the following four segments: (1) Racing Operations, which includes Churchill Downs Racetrack ("Churchill Downs"), Arlington International Race Course ("Arlington") and its ten off-track betting facilities ("OTBs"), Calder Race Course ("Calder") and Fair Grounds Race Course ("Fair Grounds") and the pari-mutuel activity generated at its twelve OTBs; (2) Gaming, which includes video poker and gaming operations at Calder Casino, Fair Grounds Slots, Harlow’s, Riverwalk and Video Services, LLC (“VSI”); (3) Online Business, which includes TwinSpires, our Advance Deposit Wagering (“ADW”) business, Fair Grounds Account Wagering, Bloodstock Research Information Services, Velocity, a business focused on high wagering-volume international customers and Luckity, an ADW business that offers over 25 unique online games with outcomes based on and determined by pari-mutuel wagers on live horseraces, as well as the Company's equity investment in HRTV, LLC; and (4) Other Investments, which includes United Tote, MVG, Bluff and the Company's other minor investments. Eliminations include the elimination of intersegment transactions.

The table below presents information about the reported segments for the three months ended March 31, 2013 and 2012 (in thousands):

	Three Months Ended March 31,
	2013			2012
Net revenues from external customers:
Churchill Downs	$	2,300		$	2,550
Arlington	7,241			9,417
Calder	2,280			1,868
Fair Grounds	15,992			16,347
Total Racing Operations	27,813			30,182
Calder Casino	20,486			21,879
Fair Grounds Slots	12,364			12,031
VSI	9,761			9,563
Harlow's Casino	15,354			15,863
Riverwalk Casino	14,124			—
Total Gaming	72,089			59,336
Online Business	42,916			44,035
Other Investments	5,099			4,502
Corporate	156			141
Net revenues from external customers	$	148,073		$	138,196
Intercompany net revenues:
Churchill Downs	$	189		$	186
Arlington	137			556
Calder	13			10
Fair Grounds	833			747
Total Racing Operations	1,172			1,499
Online Business	213			206
Other Investments	902			750
Eliminations	(2,287		)	(2,455		)
Net revenues	$	—		$	—
Reconciliation of operating income to net earnings:
Racing Operations	$	(17,078	)	$	(16,413	)
Gaming	14,179			15,058
Online Business	7,884			7,919
Other Investments	(204		)	(1,215		)
Corporate	(1,788		)	(1,629		)
Total operating income	2,993			3,720
Other expense, net	(1,623		)	(1,392		)
Income tax provision	(311		)	(974		)
Earnings from continuing operations	1,059			1,354
Discontinued operations, net of income taxes	(1		)	(1		)
Net earnings and comprehensive income	$	1,058		$	1,353

The table below presents information about equity in earnings (losses) of unconsolidated investments included in the Company’s reported segments for the three months ended March 31, 2013 and 2012 (in thousands):

	Three Months Ended March 31,
	2013			2012
Online Business	$	109		$	(38	)
Other Investments	(273		)	(182		)
	$	(164	)	$	(220	)

The table below presents total asset information for the reported segments (in thousands):

	March 31, 2013		December 31, 2012
Total assets:
Racing Operations	$	640,241	$	659,175
Gaming	222,446		225,872
Online Business	187,756		184,638
Other Investments	46,697		44,652
	$	1,097,140	$	1,114,337

The table below presents total capital expenditure information for the reported segments (in thousands):

	Three Months Ended March 31,
	2013		2012
Capital expenditures:
Racing Operations	$	5,002	$	1,573
Gaming	6,426		1,201
Online Business	1,985		1,062
Other Investments	281		5,284
	$	13,694	$	9,120