XML 36 R25.htm IDEA: XBRL DOCUMENT v3.7.0.1
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2017
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)
2017
 
2016
 
2017
 
2016
Net revenue from external customers:
 
 
 
 
 
 
 
Racing:
 
 
 
 
 
 
 
Churchill Downs
$
136.7

 
$
129.1

 
$
139.0

 
$
131.4

Arlington
18.0

 
16.8

 
26.5

 
25.8

Fair Grounds
10.0

 
9.5

 
22.5

 
23.8

Calder
0.6

 
0.7

 
1.2

 
1.3

Total Racing
165.3

 
156.1

 
189.2

 
182.3

Casinos:
 
 
 
 
 
 
 
Oxford Casino
23.1

 
21.1

 
44.0

 
41.0

Riverwalk Casino
12.0

 
12.4

 
23.5

 
25.1

Harlow’s Casino
12.5

 
11.9

 
26.0

 
24.9

Calder Casino
21.8

 
20.5

 
43.2

 
40.8

Fair Grounds Slots
8.8

 
8.8

 
19.0

 
19.4

VSI
9.8

 
9.5

 
19.5

 
19.3

Saratoga
0.3

 
0.2

 
0.6

 
0.4

Total Casinos
88.3

 
84.4

 
175.8

 
170.9

TwinSpires
80.5

 
68.4

 
132.5

 
118.0

Big Fish Games:
 
 
 
 
 
 
 
Social casino
49.5

 
46.5

 
95.7

 
94.0

Casual and mid-core free-to-play
43.9

 
56.0

 
89.2

 
106.4

Premium
19.2

 
22.7

 
39.7

 
46.9

Total Big Fish Games
112.6

 
125.2

 
224.6

 
247.3

Other Investments
5.2

 
4.4

 
9.3

 
8.4

Net revenue from external customers
$
451.9

 
$
438.5

 
$
731.4

 
$
726.9



 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in millions)
2017
 
2016
 
2017
 
2016
Intercompany net revenue:
 
 
 
 
 
 
 
Racing:
 
 
 
 
 
 
 
Churchill Downs
$
8.4

 
$
7.0

 
$
8.7

 
$
7.3

Arlington
1.9

 
1.6

 
2.9

 
2.6

Fair Grounds
0.1

 
—

 
1.0

 
1.0

Total Racing
10.4

 
8.6

 
12.6

 
10.9

TwinSpires
0.3

 
0.3

 
0.6

 
0.6

Other Investments
1.3

 
1.4

 
2.7

 
2.3

Eliminations
(12.0
)
 
(10.3
)
 
(15.9
)
 
(13.8
)
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, 2017
(in millions)
Racing
 
Casinos
 
TwinSpires
 
Big Fish
Games
 
Other Investments
 
Corporate
Net revenue
$
175.7

 
$
88.3

 
$
80.8

 
$
112.6

 
$
6.5

 
$
—

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

 
—

 
—

Platform & development fees
—

 
—

 
—

 
(40.4
)
 
—

 
—

Marketing & advertising
(2.2
)
 
(3.0
)
 
(4.6
)
 
(28.0
)
 
—

 
—

Salaries & benefits
(13.5
)
 
(13.4
)
 
(2.6
)
 
(6.9
)
 
(3.3
)
 
—

Content expense
(4.7
)
 
—

 
(40.2
)
 
—

 
—

 
—

SG&A expense
(4.2
)
 
(5.6
)
 
(3.0
)
 
(5.1
)
 
(0.7
)
 
(1.8
)
Research & development
—

 
—

 
—

 
(9.9
)
 
—

 
—

Other operating expense
(20.0
)
 
(9.8
)
 
(7.0
)
 
(3.6
)
 
(1.2
)
 
(0.3
)
Other income (expense)
0.5

 
10.7

 
—

 
(0.4
)
 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA
$
98.7

 
$
37.5

 
$
19.3

 
$
18.3

 
$
1.3

 
$
(2.1
)

 
Three Months Ended June 30, 2016
(in millions)
Racing
 
Casinos
 
TwinSpires
 
Big Fish
Games
 
Other Investments
 
Corporate
Net revenue
$
164.7

 
$
84.4

 
$
68.7

 
$
125.2

 
$
5.8

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
Taxes & purses
(30.3
)
 
(28.1
)
 
(2.0
)
 
—

 
—

 
—

Platform & development fees
—

 
—

 
—

 
(45.9
)
 
—

 
—

Marketing & advertising
(1.9
)
 
(3.1
)
 
(3.2
)
 
(37.1
)
 
—

 
—

Salaries & benefits
(12.7
)
 
(12.7
)
 
(2.3
)
 
(6.1
)
 
(2.8
)
 
—

Content expense
(4.8
)
 
—

 
(33.5
)
 
—

 
—

 
—

SG&A expense
(4.0
)
 
(5.3
)
 
(2.8
)
 
(4.3
)
 
(0.9
)
 
(2.2
)
Research & development
—

 
—

 
—

 
(9.7
)
 
—

 
—

Other operating expense
(19.9
)
 
(9.7
)
 
(6.1
)
 
(4.0
)
 
(1.0
)
 
—

Other income (expense)
0.2

 
7.8

 
—

 
(0.3
)
 
0.2

 
(0.1
)
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA
$
91.3


$
33.3

 
$
18.8

 
$
17.8

 
$
1.3


$
(2.3
)

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

 
$
175.8

 
$
133.1

 
$
224.6

 
$
12.0

 
$
—

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

 
—

 
—

Platform & development fees
—

 
—

 
—

 
(81.9
)
 
—

 
—

Marketing & advertising
(2.9
)
 
(6.0
)
 
(5.6
)
 
(52.5
)
 
—

 
—

Salaries & benefits
(22.1
)
 
(26.5
)
 
(4.8
)
 
(13.9
)
 
(6.2
)
 
—

Content expense
(7.9
)
 
—

 
(65.6
)
 
—

 
—

 
—

SG&A expense
(8.0
)
 
(10.8
)
 
(5.7
)
 
(9.8
)
 
(1.5
)
 
(4.0
)
Research & development
—

 
—

 
—

 
(20.2
)
 

 
—

Other operating expense
(29.3
)
 
(21.2
)
 
(11.8
)
 
(7.3
)
 
(2.5
)
 
(0.5
)
Other income (expense)
0.5

 
20.3

 
—

 
(0.4
)
 
0.1

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Total segment Adjusted EBITDA
$
89.0

 
$
72.8

 
$
32.5

 
$
38.6

 
$
1.9

 
$
(4.5
)

 
Six Months Ended June 30, 2016
(in millions)
Racing
 
Casinos
 
TwinSpires
 
Big Fish
Games
 
Other Investments
 
Corporate
Net revenue
$
193.2

 
$
170.9

 
$
118.6

 
$
247.3

 
$
10.7

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
Taxes & purses
(41.5
)
 
(56.5
)
 
(4.8
)
 
—

 
—

 
—

Platform & development fees
—

 
—

 
—

 
(90.0
)
 
—

 
—

Marketing & advertising
(2.7
)
 
(6.5
)
 
(4.2
)
 
(79.9
)
 
—

 
—

Salaries & benefits
(21.1
)
 
(24.8
)
 
(4.6
)
 
(12.2
)
 
(5.5
)
 
—

Content expense
(8.1
)
 
—

 
(57.4
)
 
—

 
—

 
—

SG&A expense
(7.9
)
 
(10.4
)
 
(5.6
)
 
(9.2
)
 
(1.6
)
 
(4.0
)
Research & development
—

 
—

 
—

 
(20.5
)
 
—

 
—

Other operating expense
(28.3
)
 
(19.4
)
 
(11.1
)
 
(7.9
)
 
(1.7
)
 
(0.3
)
Other income (expense)
0.3

 
14.3

 
—

 
(0.9
)
 
0.2

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Total segment Adjusted EBITDA
$
83.9

 
$
67.6

 
$
30.9

 
$
26.7

 
$
2.1

 
$
(4.3
)

 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in millions)
2017
 
2016
 
2017
 
2016
Reconciliation of Comprehensive Income to Adjusted EBITDA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income
$
78.0

 
$
70.0

 
$
85.2

 
$
72.8

Foreign currency translation, net of tax
0.3

 
(0.2
)
 
0.4

 
(0.2
)
Net income
78.3

 
69.8

 
85.6

 
72.6

Additions:
 
 
 
 
 
 
 
Depreciation and amortization
24.8

 
26.9

 
49.3

 
53.9

Interest expense
11.6

 
11.1

 
23.4

 
21.7

Income tax provision
47.5

 
41.7

 
52.0

 
37.9

EBITDA
162.2

 
149.5

 
210.3

 
186.1

 
 
 
 
 
 
 
 
Adjustments to EBITDA:
 
 
 
 
 
 
 
Selling, general and administrative:
 
 
 
 
 
 
 
Stock-based compensation expense
6.7

 
5.3

 
11.7

 
9.4

Other charges
—

 
0.3

 
0.1

 
0.3

Other income, expense:
 
 
 
 
 
 
 
Interest, depreciation and amortization expense related to equity investments
3.1

 
2.5

 
6.6

 
5.0

Other charges and recoveries, net
—

 
—

 
—

 
0.4

Acquisition expense, net
0.8

 
1.1

 
1.0

 
3.8

Calder exit costs
0.2

 
1.5

 
0.6

 
1.9

Total adjustments to EBITDA
10.8

 
10.7

 
20.0

 
20.8

Adjusted EBITDA
$
173.0

 
$
160.2

 
$
230.3

 
$
206.9

 
 
 
 
 
 
 
 
Adjusted EBITDA by segment:
 
 
 
 
 
 
 
Racing
$
98.7

 
$
91.3

 
$
89.0

 
$
83.9

Casinos
37.5

 
33.3

 
72.8

 
67.6

TwinSpires
19.3

 
18.8

 
32.5

 
30.9

Big Fish Games
18.3

 
17.8

 
38.6

 
26.7

Other Investments
1.3

 
1.3

 
1.9

 
2.1

Corporate
(2.1
)
 
(2.3
)
 
(4.5
)
 
(4.3
)
Adjusted EBITDA
$
173.0

 
$
160.2

 
$
230.3

 
$
206.9
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)
2017
 
2016
 
2017
 
2016
Casinos
$
7.7

 
$
4.7

 
$
13.8

 
$
8.8

Other Investments
—

 
0.1

 
—

 
(0.2
)
 
$
7.7

 
$
4.8

 
$
13.8

 
$
8.6
Reconciliation of Assets from Segment to Consolidated
(in millions)
June 30, 2017
 
December 31, 2016
Total assets:
 
 
 
Racing
$
453.2

 
$
454.6

Casinos
659.8

 
628.7

TwinSpires
207.5

 
209.9

Big Fish Games
890.9

 
893.8

Other Investments
10.1

 
11.1

Corporate
60.5

 
56.3

 
$
2,282.0

 
$
2,254.4

 
Six Months Ended June 30,
(in millions)
2017
 
2016
Capital expenditures:
 
 
 
Racing
$
38.4

 
$
20.7

Casinos
15.6

 
6.8

TwinSpires
5.2

 
3.7

Big Fish Games
3.5

 
2.2

Other Investments
0.7

 
0.5

Corporate
0.6

 
0.6

 
$
64.0

 
$
34.5