Income Taxes	6 Months Ended
Jun. 30, 2011
Income Taxes
Income Taxes	NOTE 6 — INCOME TAXES The Company's effective tax rate from continuing operations for the six months ended June 30, 2011 and 2010 was 41.1% and 34.7%, respectively. The prior year effective tax rate was impacted by the recognition of a benefit of $1.6 million during the six months ended June 30, 2010 from the settlement of a federal income tax matter related to prior years' Personal Seat License revenues at Churchill Downs. During the six months ended June 30, 2011, the Company recognized tax benefits resulting in a reduction to the effective tax rate of approximately 0.7%. These benefits were the result of a Tax Increment Financing Agreement ("TIF") entered during 2003 with the Commonwealth of Kentucky, as detailed below and were offset by tax expenses associated with taxes accrued for uncertain tax positions as well as the true-up of prior year taxes. Pursuant to the TIF, the Company is entitled to receive reimbursement of 80% of the increase in Kentucky income and sales tax driven by the 2005 renovation of the Churchill facility. Due to the resolution of uncertainties with the Commonwealth of Kentucky related to the computation of the tax increase during the three months ended June 30, 2011, the Company recognized a $2.9 million reduction of its operating expenses related to the years 2005 through 2010 and the six months ended June 30, 2011, and a $0.6 million reduction in its income tax expense, net of federal taxes, related to the years 2005 through 2010. During the six months ended June 30, 2011, the Company received a refund of $8.5 million from the overpayment of its 2010 federal income taxes and a refund of $1.0 million from an amended prior year federal income tax return related to state lobbying expense deductions. Certain tax authorities may periodically audit the Company, and it may occasionally be assessed interest and penalties by tax jurisdictions. The Company recognizes accrued interest in its income tax provision related to unrecognized income tax benefits, while penalties are accrued in general and administrative expenses. As of June 30, 2011, the Company had accrued $0.3 million of interest expense related to unrecognized income tax benefits and had gross unrecognized tax benefits of $3.4 million. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate for 2011 was $2.2 million.

Income Taxes

6 Months Ended

Jun. 30, 2011

NOTE 6 — INCOME TAXES

The Company's effective tax rate from continuing operations for the six months ended June 30, 2011 and 2010 was 41.1% and 34.7%, respectively. The prior year effective tax rate was impacted by the recognition of a benefit of $1.6 million during the six months ended June 30, 2010 from the settlement of a federal income tax matter related to prior years' Personal Seat License revenues at Churchill Downs. During the six months ended June 30, 2011, the Company recognized tax benefits resulting in a reduction to the effective tax rate of approximately 0.7%. These benefits were the result of a Tax Increment Financing Agreement ("TIF") entered during 2003 with the Commonwealth of Kentucky, as detailed below and were offset by tax expenses associated with taxes accrued for uncertain tax positions as well as the true-up of prior year taxes.

Pursuant to the TIF, the Company is entitled to receive reimbursement of 80% of the increase in Kentucky income and sales tax driven by the 2005 renovation of the Churchill facility. Due to the resolution of uncertainties with the Commonwealth of Kentucky related to the computation of the tax increase during the three months ended June 30, 2011, the Company recognized a $2.9 million reduction of its operating expenses related to the years 2005 through 2010 and the six months ended June 30, 2011, and a $0.6 million reduction in its income tax expense, net of federal taxes, related to the years 2005 through 2010.

During the six months ended June 30, 2011, the Company received a refund of $8.5 million from the overpayment of its 2010 federal income taxes and a refund of $1.0 million from an amended prior year federal income tax return related to state lobbying expense deductions.

Certain tax authorities may periodically audit the Company, and it may occasionally be assessed interest and penalties by tax jurisdictions. The Company recognizes accrued interest in its income tax provision related to unrecognized income tax benefits, while penalties are accrued in general and administrative expenses. As of June 30, 2011, the Company had accrued $0.3 million of interest expense related to unrecognized income tax benefits and had gross unrecognized tax benefits of $3.4 million. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate for 2011 was $2.2 million.