Company Quick10K Filing
Quick10K
Churchill Downs
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$97.21 40 $3,910
10-Q 2019-06-30 Quarter: 2019-06-30
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-07-31 Earnings, Exhibits
8-K 2019-04-24 Shareholder Vote
8-K 2019-04-24 Earnings, Exhibits
8-K 2019-04-23 Regulation FD, Exhibits
8-K 2019-03-26 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-03-20 Regulation FD, Exhibits
8-K 2019-01-17
8-K 2019-01-11 Regulation FD, Exhibits
8-K 2018-11-16 Other Events, Exhibits
8-K 2018-11-05 Officers, Exhibits
8-K 2018-11-02 Regulation FD, Exhibits
8-K 2018-10-31 Regulation FD, Exhibits
8-K 2018-10-31 Regulation FD, Exhibits
8-K 2018-10-31 Earnings, Exhibits
8-K 2018-08-01 Earnings, Exhibits
8-K 2018-07-16 Regulation FD, Exhibits
8-K 2018-07-09 Regulation FD, Exhibits
8-K 2018-05-07 Other Events
8-K 2018-04-26 Shareholder Vote
8-K 2018-01-09 Enter Agreement, M&A, Earnings, Officers, Regulation FD, Exhibits
EIX Edison 19,500
URI United Rentals 10,520
MPAA Motorcar Parts America 374
OMI Owens & Minor 249
RBKB Rhinebeck Bancorp 130
WYY Widepoint 50
EVTN Enviro Technologies 0
TLLT Xsport Global 0
FUSZ nFusz 0
WTW Weight Watchers 0
CHDN 2019-06-30
Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.A exhibit31a2019610q.htm
EX-31.B exhibit31b2019610q.htm
EX-32 exhibit322019610q.htm

Churchill Downs Earnings 2019-06-30

CHDN 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Document
false--12-31Q22019000002021215000000015000000040400000400000004040000040000000P2YP1Y3000003000000000P9MP1YP1Y 0000020212 2019-01-01 2019-06-30 0000020212 2019-07-17 0000020212 us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-06-30 0000020212 2018-04-01 2018-06-30 0000020212 2018-01-01 2018-06-30 0000020212 us-gaap:ProductAndServiceOtherMember 2019-04-01 2019-06-30 0000020212 2019-04-01 2019-06-30 0000020212 chdn:ChurchillDownsMember 2018-01-01 2018-06-30 0000020212 chdn:ChurchillDownsMember 2019-01-01 2019-06-30 0000020212 us-gaap:ProductAndServiceOtherMember 2018-01-01 2018-06-30 0000020212 chdn:OnlineWageringMember 2019-04-01 2019-06-30 0000020212 chdn:GamingMember 2018-01-01 2018-06-30 0000020212 chdn:GamingMember 2019-01-01 2019-06-30 0000020212 chdn:ChurchillDownsMember 2018-04-01 2018-06-30 0000020212 us-gaap:ProductAndServiceOtherMember 2018-04-01 2018-06-30 0000020212 chdn:ChurchillDownsMember 2019-04-01 2019-06-30 0000020212 chdn:OnlineWageringMember 2018-04-01 2018-06-30 0000020212 chdn:GamingMember 2019-04-01 2019-06-30 0000020212 chdn:OnlineWageringMember 2019-01-01 2019-06-30 0000020212 chdn:GamingMember 2018-04-01 2018-06-30 0000020212 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000020212 chdn:OnlineWageringMember 2018-01-01 2018-06-30 0000020212 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0000020212 2019-06-30 0000020212 2018-12-31 0000020212 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0000020212 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000020212 us-gaap:CommonStockMember 2018-12-31 0000020212 us-gaap:CommonStockMember 2019-06-30 0000020212 2019-01-01 2019-03-31 0000020212 us-gaap:CommonStockMember 2019-03-31 0000020212 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000020212 us-gaap:RetainedEarningsMember 2018-12-31 0000020212 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0000020212 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0000020212 us-gaap:RetainedEarningsMember 2019-06-30 0000020212 2019-03-31 0000020212 us-gaap:AccountingStandardsUpdate201602Member 2018-12-31 0000020212 us-gaap:RetainedEarningsMember 2019-03-31 0000020212 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000020212 2018-01-01 2018-03-31 0000020212 us-gaap:CommonStockMember 2017-12-31 0000020212 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0000020212 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-03-31 0000020212 us-gaap:CommonStockMember 2018-01-01 2018-03-31 0000020212 us-gaap:CommonStockMember 2018-06-30 0000020212 2018-03-31 0000020212 2018-06-30 0000020212 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0000020212 us-gaap:RetainedEarningsMember 2017-12-31 0000020212 us-gaap:RetainedEarningsMember 2018-03-31 0000020212 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0000020212 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0000020212 us-gaap:CommonStockMember 2018-03-31 0000020212 2017-12-31 0000020212 us-gaap:RetainedEarningsMember 2018-06-30 0000020212 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0000020212 us-gaap:AccountingStandardsUpdate201409Member 2017-12-31 0000020212 chdn:MidwestGamingHoldingsLLCMember 2019-06-30 0000020212 chdn:ClairvestGroupInc.Member 2019-03-04 2019-03-04 0000020212 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember chdn:BigFishGamesMember 2018-01-09 2018-01-09 0000020212 chdn:LadyLuckNemacolinTransactionMember 2019-03-08 2019-03-08 0000020212 2018-10-31 2018-10-31 0000020212 chdn:MidwestGamingHoldingsLLCMember 2019-03-04 0000020212 chdn:MidwestGamingHoldingsLLCMember 2019-03-04 2019-03-04 0000020212 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember chdn:BigFishGamesMember 2018-01-09 0000020212 chdn:MidwestGamingHoldingsLLCMember 2019-03-04 2019-03-04 0000020212 chdn:ClairvestGroupInc.Member 2019-03-04 0000020212 chdn:MiamiValleyGamingLLCMember 2019-06-30 0000020212 chdn:MidwestGamingHoldingsLLCMember 2018-10-31 0000020212 chdn:PresqueIsleDownsCasinoAndLadyLuckCasinoMember 2019-01-11 2019-01-11 0000020212 chdn:ClairvestGroupInc.Member 2018-10-31 2018-10-31 0000020212 2019-01-01 0000020212 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0000020212 chdn:PresqueIsleDownsCasinoMember 2019-01-11 0000020212 chdn:PresqueIsleDownsCasinoMember us-gaap:TradeNamesMember 2019-01-11 0000020212 chdn:PresqueIsleDownsCasinoMember chdn:GameRightsMember 2019-01-11 0000020212 chdn:OceanDownsLLCandRacingServicesLLCMember 2018-08-31 0000020212 chdn:OceanDownsLLCMember 2018-08-31 0000020212 chdn:PresqueIsleDownsCasinoMember 2019-01-11 2019-03-31 0000020212 chdn:SaratogaNewYorkAndSaratogaColoradoMember 2018-07-16 0000020212 chdn:OceanDownsLLCMember 2018-08-30 0000020212 chdn:OceanDownsLLCandRacingServicesLLCMember 2018-07-16 0000020212 2018-07-16 2018-07-16 0000020212 chdn:SaratogaNewYorkAndSaratogaColoradoMember 2018-08-31 0000020212 chdn:OceanDownsLLCandRacingServicesLLCMember 2018-01-01 0000020212 chdn:PresqueIsleDownsCasinoMember 2019-01-11 2019-01-11 0000020212 chdn:SaratogaNewYorkAndSaratogaColoradoMember 2018-08-30 0000020212 2018-08-31 2018-08-31 0000020212 chdn:OceanDownsLLCandRacingServicesLLCMember 2018-01-01 2018-03-31 0000020212 chdn:OceanDownsLLCandRacingServicesLLCMember 2018-01-01 2018-06-30 0000020212 chdn:PresqueIsleDownsCasinoMember 2018-04-01 2018-06-30 0000020212 chdn:PresqueIsleDownsCasinoMember 2019-04-01 2019-06-30 0000020212 chdn:PresqueIsleDownsCasinoMember 2018-01-01 2018-06-30 0000020212 chdn:PresqueIsleDownsCasinoMember 2019-01-01 2019-06-30 0000020212 chdn:BigFishGamesMember 2019-01-01 2019-06-30 0000020212 chdn:BigFishGamesMember 2019-04-01 2019-06-30 0000020212 chdn:BigFishGamesMember 2018-04-01 2018-06-30 0000020212 chdn:BigFishGamesMember 2018-01-01 2018-06-30 0000020212 chdn:DeferredPaymentsMember chdn:BigFishGamesMember 2017-12-31 0000020212 chdn:EarnoutLiabilityMember chdn:BigFishGamesMember 2017-12-31 0000020212 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember chdn:BigFishGamesMember 2018-01-01 2018-03-31 0000020212 chdn:ArlingtonSegmentMember 2019-06-30 0000020212 chdn:ChurchillDownsSegmentMember 2019-01-01 2019-06-30 0000020212 chdn:ChurchillDownsSegmentMember 2019-06-30 0000020212 chdn:GamingSegmentMember 2019-06-30 0000020212 chdn:ArlingtonSegmentMember 2018-12-31 0000020212 chdn:OnlineWageringSegmentMember 2019-06-30 0000020212 chdn:GamingSegmentMember 2019-01-01 2019-06-30 0000020212 chdn:OnlineWageringSegmentMember 2019-01-01 2019-06-30 0000020212 chdn:ChurchillDownsSegmentMember 2018-12-31 0000020212 chdn:OnlineWageringSegmentMember 2018-12-31 0000020212 chdn:GamingSegmentMember 2018-12-31 0000020212 chdn:ArlingtonSegmentMember 2019-01-01 2019-06-30 0000020212 chdn:PresqueIsleDownsCasinoMember us-gaap:ContractualRightsMember 2019-06-30 0000020212 us-gaap:ContractualRightsMember chdn:GamingMember 2019-06-30 0000020212 chdn:ArlingtonReportingUnitMember 2019-06-30 0000020212 chdn:RacingSegmentMember 2019-06-30 0000020212 us-gaap:ContractualRightsMember chdn:OnlineWageringMember 2019-06-30 0000020212 chdn:ChurchillDownsReportingUnitMember 2019-06-30 0000020212 chdn:PresqueIsleDownsCasinoMember us-gaap:ContractualRightsMember chdn:OnlineWageringMember 2019-06-30 0000020212 chdn:GamingMember 2019-06-30 0000020212 chdn:PresqueIsleDownsCasinoMember us-gaap:TrademarksMember 2019-06-30 0000020212 chdn:October2018StockRepurchaseProgramMember 2018-12-31 0000020212 chdn:TenderOfferMember 2017-11-29 2018-02-12 0000020212 chdn:October2018StockRepurchaseProgramMember 2019-04-01 2019-06-30 0000020212 chdn:October2018StockRepurchaseProgramMember 2019-01-01 2019-03-31 0000020212 2017-04-25 0000020212 2018-10-29 0000020212 chdn:TenderOfferMember 2017-11-29 0000020212 chdn:October2018StockRepurchaseProgramMember 2019-06-30 0000020212 chdn:October2018StockRepurchaseProgramMember 2018-10-30 0000020212 us-gaap:RestrictedStockUnitsRSUMember chdn:ExecutiveLongTermIncentiveCompensationPlantheELTIPlanMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2019-01-01 2019-06-30 0000020212 us-gaap:RestrictedStockUnitsRSUMember chdn:ExecutiveLongTermIncentiveCompensationPlantheELTIPlanMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2019-01-01 2019-06-30 0000020212 us-gaap:RestrictedStockMember 2019-01-01 2019-06-30 0000020212 us-gaap:PerformanceSharesMember 2019-01-01 2019-06-30 0000020212 us-gaap:SegmentContinuingOperationsMember 2018-01-01 2018-06-30 0000020212 chdn:SeniorNotesDue2027Member us-gaap:SeniorNotesMember 2019-03-25 0000020212 chdn:SeniorNotesDue2027Member us-gaap:SeniorNotesMember 2019-03-25 2019-03-25 0000020212 chdn:SeniorNotesDue2027Member us-gaap:DebtInstrumentRedemptionPeriodOneMember us-gaap:SeniorNotesMember 2019-03-25 2019-03-25 0000020212 2021-01-01 2019-06-30 0000020212 2019-04-01 2019-06-30 0000020212 2020-01-01 2019-06-30 0000020212 chdn:HighPlainesMember chdn:MidwestGamingHoldingsLLCMember 2019-06-30 0000020212 chdn:CasinoInvestorsMember chdn:MidwestGamingHoldingsLLCMember 2019-06-30 0000020212 srt:MaximumMember 2019-06-30 0000020212 srt:MinimumMember 2019-06-30 0000020212 chdn:SeniorNotesDue2028Member us-gaap:SeniorNotesMember 2019-06-30 0000020212 chdn:SeniorNotesDue2028Member us-gaap:FairValueInputsLevel2Member us-gaap:SeniorNotesMember 2018-12-31 0000020212 us-gaap:SecuredDebtMember chdn:A2017CreditAgreementMember us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:LineOfCreditMember 2018-12-31 0000020212 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000020212 us-gaap:SecuredDebtMember chdn:A2017CreditAgreementMember us-gaap:FairValueInputsLevel3Member us-gaap:LineOfCreditMember 2018-12-31 0000020212 us-gaap:SecuredDebtMember chdn:A2017CreditAgreementMember us-gaap:FairValueInputsLevel3Member us-gaap:LineOfCreditMember 2019-06-30 0000020212 us-gaap:SecuredDebtMember chdn:A2017CreditAgreementMember us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:LineOfCreditMember 2019-06-30 0000020212 us-gaap:SecuredDebtMember chdn:A2017CreditAgreementMember us-gaap:FairValueInputsLevel1Member us-gaap:LineOfCreditMember 2019-06-30 0000020212 chdn:SeniorNotesDue2027Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:SeniorNotesMember 2019-06-30 0000020212 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0000020212 us-gaap:SecuredDebtMember chdn:A2017CreditAgreementMember us-gaap:FairValueInputsLevel2Member us-gaap:LineOfCreditMember 2019-06-30 0000020212 us-gaap:SecuredDebtMember chdn:A2017CreditAgreementMember us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:LineOfCreditMember 2018-12-31 0000020212 chdn:SeniorNotesDue2028Member us-gaap:FairValueInputsLevel3Member us-gaap:SeniorNotesMember 2018-12-31 0000020212 chdn:SeniorNotesDue2027Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:SeniorNotesMember 2019-06-30 0000020212 chdn:SeniorNotesDue2028Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:SeniorNotesMember 2019-06-30 0000020212 chdn:SeniorNotesDue2027Member us-gaap:FairValueInputsLevel2Member us-gaap:SeniorNotesMember 2019-06-30 0000020212 chdn:SeniorNotesDue2028Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:SeniorNotesMember 2019-06-30 0000020212 us-gaap:FairValueInputsLevel3Member 2018-12-31 0000020212 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-06-30 0000020212 us-gaap:SecuredDebtMember chdn:A2017CreditAgreementMember us-gaap:FairValueInputsLevel2Member us-gaap:LineOfCreditMember 2018-12-31 0000020212 chdn:SeniorNotesDue2027Member us-gaap:FairValueInputsLevel1Member us-gaap:SeniorNotesMember 2019-06-30 0000020212 chdn:SeniorNotesDue2028Member us-gaap:FairValueInputsLevel1Member us-gaap:SeniorNotesMember 2018-12-31 0000020212 chdn:SeniorNotesDue2028Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:SeniorNotesMember 2018-12-31 0000020212 us-gaap:SecuredDebtMember chdn:A2017CreditAgreementMember us-gaap:FairValueInputsLevel1Member us-gaap:LineOfCreditMember 2018-12-31 0000020212 chdn:SeniorNotesDue2028Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:SeniorNotesMember 2018-12-31 0000020212 us-gaap:FairValueInputsLevel2Member 2018-12-31 0000020212 us-gaap:FairValueInputsLevel1Member 2019-06-30 0000020212 us-gaap:FairValueInputsLevel2Member 2019-06-30 0000020212 chdn:SeniorNotesDue2028Member us-gaap:FairValueInputsLevel1Member us-gaap:SeniorNotesMember 2019-06-30 0000020212 us-gaap:SecuredDebtMember chdn:A2017CreditAgreementMember us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:LineOfCreditMember 2019-06-30 0000020212 chdn:SeniorNotesDue2028Member us-gaap:FairValueInputsLevel3Member us-gaap:SeniorNotesMember 2019-06-30 0000020212 chdn:SeniorNotesDue2028Member us-gaap:FairValueInputsLevel2Member us-gaap:SeniorNotesMember 2019-06-30 0000020212 us-gaap:FairValueInputsLevel3Member 2019-06-30 0000020212 chdn:SeniorNotesDue2027Member us-gaap:FairValueInputsLevel3Member us-gaap:SeniorNotesMember 2019-06-30 0000020212 us-gaap:FairValueInputsLevel1Member 2018-12-31 0000020212 chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember 2019-01-01 2019-06-30 0000020212 chdn:ExternalCustomerMember chdn:GamingMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingMember us-gaap:CorporateMember 2019-01-01 2019-06-30 0000020212 chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember chdn:OnlineWageringMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingSegmentMember 2019-01-01 2019-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember us-gaap:CorporateMember 2019-01-01 2019-06-30 0000020212 chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember chdn:GamingSegmentMember 2019-01-01 2019-06-30 0000020212 chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember chdn:GamingSegmentMember 2019-01-01 2019-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-06-30 0000020212 chdn:ExternalCustomerMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingMember chdn:ChurchillDownsMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember chdn:OnlineWageringMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember us-gaap:CorporateMember 2019-01-01 2019-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember chdn:GamingMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingMember chdn:OnlineWageringMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember chdn:OnlineWageringMember 2019-01-01 2019-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember chdn:ChurchillDownsMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember chdn:GamingSegmentMember 2019-01-01 2019-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:OnlineWageringMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember chdn:GamingSegmentMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember us-gaap:CorporateMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:CorporateMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember chdn:ChurchillDownsMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:ChurchillDownsMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember chdn:ChurchillDownsMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember chdn:OnlineWageringMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember chdn:ChurchillDownsMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingMember chdn:GamingSegmentMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember us-gaap:CorporateMember 2019-01-01 2019-06-30 0000020212 chdn:ChurchillDownsMember 2018-01-01 2018-06-30 0000020212 chdn:OnlineWageringMember 2018-01-01 2018-06-30 0000020212 chdn:GamingSegmentMember 2018-01-01 2018-06-30 0000020212 chdn:OnlineWageringMember 2019-01-01 2019-06-30 0000020212 chdn:ChurchillDownsMember 2019-01-01 2019-06-30 0000020212 chdn:GamingSegmentMember 2018-04-01 2018-06-30 0000020212 chdn:GamingSegmentMember 2019-04-01 2019-06-30 0000020212 chdn:OnlineWageringMember 2019-04-01 2019-06-30 0000020212 chdn:ChurchillDownsMember 2019-04-01 2019-06-30 0000020212 chdn:OnlineWageringMember 2018-04-01 2018-06-30 0000020212 chdn:ChurchillDownsMember 2018-04-01 2018-06-30 0000020212 chdn:ChurchillDownsRacetrackMember us-gaap:OperatingSegmentsMember chdn:ChurchillDownsMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:OnlineWageringMember 2018-04-01 2018-06-30 0000020212 chdn:OnlineSportsBettingAndIGamingMember us-gaap:OperatingSegmentsMember chdn:OnlineWageringMember 2018-01-01 2018-06-30 0000020212 chdn:OxfordAcquisitionMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember 2018-01-01 2018-06-30 0000020212 chdn:LadyLuckNemacolinMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-04-01 2018-06-30 0000020212 chdn:DerbyCityGamingMember us-gaap:OperatingSegmentsMember chdn:ChurchillDownsMember 2018-01-01 2018-06-30 0000020212 chdn:CalderCasinosMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-01-01 2019-06-30 0000020212 chdn:LadyLuckNemacolinMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-01-01 2018-06-30 0000020212 chdn:RiverwalkCasinoMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-04-01 2019-06-30 0000020212 chdn:PresqueIsleDownsCasinoMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-04-01 2018-06-30 0000020212 chdn:OceanDownsLLCandRacingServicesLLCMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-01-01 2018-06-30 0000020212 chdn:ChurchillDownsRacetrackMember us-gaap:OperatingSegmentsMember chdn:ChurchillDownsMember 2019-01-01 2019-06-30 0000020212 chdn:HarlowsCasinoMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-01-01 2018-06-30 0000020212 chdn:SaratogaCasinoHoldingsLLCMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ChurchillDownsMember 2019-04-01 2019-06-30 0000020212 chdn:TwinSpiresMember us-gaap:OperatingSegmentsMember chdn:OnlineWageringMember 2019-04-01 2019-06-30 0000020212 chdn:FairGroundsSlotsMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ChurchillDownsMember 2018-01-01 2018-06-30 0000020212 chdn:FairGroundsSlotsMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-01-01 2019-06-30 0000020212 chdn:DerbyCityGamingMember us-gaap:OperatingSegmentsMember chdn:ChurchillDownsMember 2019-04-01 2019-06-30 0000020212 chdn:ChurchillDownsRacetrackMember us-gaap:OperatingSegmentsMember chdn:ChurchillDownsMember 2018-01-01 2018-06-30 0000020212 chdn:HarlowsCasinoMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-01-01 2019-06-30 0000020212 chdn:PresqueIsleDownsCasinoMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-01-01 2019-06-30 0000020212 chdn:LadyLuckNemacolinMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-01-01 2019-06-30 0000020212 chdn:RiverwalkCasinoMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-04-01 2018-06-30 0000020212 chdn:OnlineSportsBettingAndIGamingMember us-gaap:OperatingSegmentsMember chdn:OnlineWageringMember 2019-04-01 2019-06-30 0000020212 chdn:CalderCasinosMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-04-01 2018-06-30 0000020212 chdn:CalderCasinosMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-01-01 2019-06-30 0000020212 chdn:OnlineSportsBettingAndIGamingMember us-gaap:OperatingSegmentsMember chdn:OnlineWageringMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:OnlineWageringMember 2019-01-01 2019-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember us-gaap:AllOtherSegmentsMember 2018-01-01 2018-06-30 0000020212 chdn:HarlowsCasinoMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-04-01 2019-06-30 0000020212 chdn:OxfordAcquisitionMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-04-01 2018-06-30 0000020212 chdn:OceanDownsLLCandRacingServicesLLCMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-01-01 2019-06-30 0000020212 chdn:RiverwalkCasinoMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-01-01 2018-06-30 0000020212 chdn:SaratogaCasinoHoldingsLLCMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-01-01 2018-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-06-30 0000020212 chdn:TwinSpiresMember us-gaap:OperatingSegmentsMember chdn:OnlineWageringMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember 2019-01-01 2019-06-30 0000020212 chdn:FairGroundsSlotsMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-01-01 2018-06-30 0000020212 chdn:RiverwalkCasinoMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-01-01 2019-06-30 0000020212 chdn:TwinSpiresMember us-gaap:OperatingSegmentsMember chdn:OnlineWageringMember 2018-04-01 2018-06-30 0000020212 chdn:TwinSpiresMember us-gaap:OperatingSegmentsMember chdn:OnlineWageringMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember 2019-04-01 2019-06-30 0000020212 chdn:ChurchillDownsRacetrackMember us-gaap:OperatingSegmentsMember chdn:ChurchillDownsMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-01-01 2018-06-30 0000020212 chdn:DerbyCityGamingMember us-gaap:OperatingSegmentsMember chdn:ChurchillDownsMember 2019-01-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:OnlineWageringMember 2019-04-01 2019-06-30 0000020212 chdn:FairGroundsSlotsMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-04-01 2019-06-30 0000020212 chdn:DerbyCityGamingMember us-gaap:OperatingSegmentsMember chdn:ChurchillDownsMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ChurchillDownsMember 2019-01-01 2019-06-30 0000020212 chdn:LadyLuckNemacolinMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-04-01 2019-06-30 0000020212 chdn:OxfordAcquisitionMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-04-01 2019-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember us-gaap:AllOtherSegmentsMember 2019-04-01 2019-06-30 0000020212 chdn:OceanDownsLLCandRacingServicesLLCMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember 2018-04-01 2018-06-30 0000020212 chdn:OnlineSportsBettingAndIGamingMember us-gaap:OperatingSegmentsMember chdn:OnlineWageringMember 2019-01-01 2019-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember us-gaap:AllOtherSegmentsMember 2018-04-01 2018-06-30 0000020212 chdn:OceanDownsLLCandRacingServicesLLCMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ChurchillDownsMember 2018-04-01 2018-06-30 0000020212 chdn:CalderCasinosMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-04-01 2019-06-30 0000020212 chdn:OxfordAcquisitionMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-04-01 2018-06-30 0000020212 chdn:PresqueIsleDownsCasinoMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:OnlineWageringMember 2018-01-01 2018-06-30 0000020212 chdn:HarlowsCasinoMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-04-01 2018-06-30 0000020212 chdn:SaratogaCasinoHoldingsLLCMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2018-04-01 2018-06-30 0000020212 chdn:SaratogaCasinoHoldingsLLCMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-01-01 2019-06-30 0000020212 chdn:PresqueIsleDownsCasinoMember us-gaap:OperatingSegmentsMember chdn:GamingSegmentMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember us-gaap:CorporateMember 2018-12-31 0000020212 us-gaap:OperatingSegmentsMember chdn:ChurchillDownsMember 2018-12-31 0000020212 us-gaap:OperatingSegmentsMember chdn:OnlineWageringMember 2018-12-31 0000020212 us-gaap:OperatingSegmentsMember chdn:ChurchillDownsMember 2019-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember us-gaap:AllOtherSegmentsMember 2018-12-31 0000020212 us-gaap:OperatingSegmentsMember us-gaap:CorporateMember 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:OnlineWageringMember 2019-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember us-gaap:AllOtherSegmentsMember 2019-06-30 0000020212 us-gaap:IntersegmentEliminationMember 2019-01-01 2019-06-30 0000020212 us-gaap:IntersegmentEliminationMember 2018-04-01 2018-06-30 0000020212 us-gaap:IntersegmentEliminationMember 2019-04-01 2019-06-30 0000020212 us-gaap:IntersegmentEliminationMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember us-gaap:CorporateMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember chdn:ChurchillDownsMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember chdn:OnlineWageringMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember chdn:GamingSegmentMember 2018-04-01 2018-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember us-gaap:AllOtherSegmentsMember 2018-04-01 2018-06-30 0000020212 chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember chdn:OnlineWageringMember 2018-04-01 2018-06-30 0000020212 chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember chdn:OnlineWageringMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingMember chdn:GamingSegmentMember 2018-04-01 2018-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember us-gaap:AllOtherSegmentsMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember us-gaap:CorporateMember 2018-04-01 2018-06-30 0000020212 chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember us-gaap:CorporateMember 2018-04-01 2018-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember us-gaap:AllOtherSegmentsMember 2018-04-01 2018-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember chdn:GamingMember us-gaap:AllOtherSegmentsMember 2018-04-01 2018-06-30 0000020212 chdn:ExternalCustomerMember chdn:GamingMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember chdn:OnlineWageringMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember chdn:ChurchillDownsMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember chdn:GamingSegmentMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:CorporateMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember us-gaap:CorporateMember 2018-04-01 2018-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember us-gaap:AllOtherSegmentsMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingMember us-gaap:CorporateMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingSegmentMember 2018-04-01 2018-06-30 0000020212 chdn:ExternalCustomerMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember chdn:GamingSegmentMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember chdn:ChurchillDownsMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember chdn:GamingSegmentMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingMember chdn:ChurchillDownsMember 2018-04-01 2018-06-30 0000020212 chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingMember chdn:OnlineWageringMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:ChurchillDownsMember 2018-04-01 2018-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember us-gaap:AllOtherSegmentsMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember chdn:ChurchillDownsMember 2018-04-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:OnlineWageringMember 2018-04-01 2018-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember us-gaap:AllOtherSegmentsMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:OnlineWageringMember 2018-01-01 2018-06-30 0000020212 chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember 2018-01-01 2018-06-30 0000020212 chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingMember chdn:OnlineWageringMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember chdn:GamingSegmentMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember chdn:GamingSegmentMember 2018-01-01 2018-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember us-gaap:AllOtherSegmentsMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember chdn:OnlineWageringMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember chdn:ChurchillDownsMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember chdn:OnlineWageringMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingMember us-gaap:CorporateMember 2018-01-01 2018-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember us-gaap:AllOtherSegmentsMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember chdn:GamingSegmentMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember chdn:GamingSegmentMember 2018-01-01 2018-06-30 0000020212 chdn:ExternalCustomerMember chdn:GamingMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember chdn:ChurchillDownsMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember us-gaap:CorporateMember 2018-01-01 2018-06-30 0000020212 chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember 2018-01-01 2018-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember chdn:GamingMember us-gaap:AllOtherSegmentsMember 2018-01-01 2018-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember us-gaap:AllOtherSegmentsMember 2018-01-01 2018-06-30 0000020212 chdn:ExternalCustomerMember 2018-01-01 2018-06-30 0000020212 chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember chdn:OnlineWageringMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember us-gaap:CorporateMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember chdn:OnlineWageringMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingMember chdn:ChurchillDownsMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingMember chdn:GamingSegmentMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:CorporateMember 2018-01-01 2018-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember us-gaap:AllOtherSegmentsMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember chdn:ChurchillDownsMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember chdn:ChurchillDownsMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:ChurchillDownsMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingSegmentMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember us-gaap:CorporateMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember us-gaap:CorporateMember 2018-01-01 2018-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember us-gaap:AllOtherSegmentsMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember chdn:GamingSegmentMember 2019-04-01 2019-06-30 0000020212 chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember 2019-04-01 2019-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember us-gaap:AllOtherSegmentsMember 2019-04-01 2019-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember us-gaap:AllOtherSegmentsMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember chdn:OnlineWageringMember 2019-04-01 2019-06-30 0000020212 chdn:ExternalCustomerMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember chdn:GamingSegmentMember 2019-04-01 2019-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember us-gaap:AllOtherSegmentsMember 2019-04-01 2019-06-30 0000020212 chdn:ExternalCustomerMember chdn:GamingMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember chdn:OnlineWageringMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember chdn:ChurchillDownsMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingMember chdn:ChurchillDownsMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:ChurchillDownsMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember chdn:GamingSegmentMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember chdn:OnlineWageringMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember chdn:ChurchillDownsMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember chdn:ChurchillDownsMember 2019-04-01 2019-06-30 0000020212 chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingSegmentMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingMember chdn:GamingSegmentMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember us-gaap:CorporateMember 2019-04-01 2019-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember us-gaap:AllOtherSegmentsMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:CorporateMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember chdn:ChurchillDownsMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingMember chdn:OnlineWageringMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember us-gaap:CorporateMember 2019-04-01 2019-06-30 0000020212 chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember chdn:OnlineWageringMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:OnlineWageringMember 2019-04-01 2019-06-30 0000020212 us-gaap:MaterialReconcilingItemsMember chdn:ExternalCustomerMember chdn:GamingMember us-gaap:AllOtherSegmentsMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:GamingMember us-gaap:CorporateMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelLiveAndSimulcastRacingMember us-gaap:CorporateMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember chdn:PariMutuelHistoricalRacingMember us-gaap:CorporateMember 2019-04-01 2019-06-30 0000020212 chdn:ExternalCustomerMember chdn:RacingEventRelatedServicesMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember chdn:ExternalCustomerMember us-gaap:ProductAndServiceOtherMember chdn:GamingSegmentMember 2019-04-01 2019-06-30 0000020212 us-gaap:OperatingSegmentsMember us-gaap:CorporateMember 2018-01-01 2018-06-30 0000020212 us-gaap:OperatingSegmentsMember us-gaap:CorporateMember 2019-01-01 2019-06-30 0000020212 srt:MaximumMember chdn:MidwestGamingHoldingsLLCMember us-gaap:SubsequentEventMember 2019-07-25 iso4217:USD xbrli:shares iso4217:USD chdn:slot_machine xbrli:shares chdn:state xbrli:pure chdn:Segments chdn:game
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to            
Commission file number 001-33998
Churchill Downs Incorporated
(Exact name of registrant as specified in its charter)
Kentucky
 
61-0156015
 
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
 
 
600 North Hurstbourne Parkway, Suite 400
Louisville
Kentucky
40222
 
(Address of Principal Executive Offices)
 
(Zip Code)
 
(502)-636-4400
Registrant's telephone number, including area code
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, No Par Value
CHDN
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  Yes     No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
Accelerated filer
Non-accelerated filer
 
Smaller reporting company
 
 
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes    No  
The number of shares outstanding of registrant’s common stock at July 17, 2019 was 40,036,377 shares.
 



CHURCHILL DOWNS INCORPORATED
INDEX TO QUARTERLY REPORT ON FORM 10-Q
For the Quarter Ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019
 
2
 


PART I.
FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS
CHURCHILL DOWNS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in millions, except per common share data)
2019
 
2018
 
2019
 
2018
Net revenue:
 
 
 
 
 
 
 
Churchill Downs
$
182.2

 
$
154.9

 
$
203.2

 
$
156.9

Online Wagering
95.6

 
93.7

 
158.7

 
156.9

Gaming
177.6

 
108.1

 
346.4

 
219.6

All Other
22.0

 
22.7

 
34.5

 
35.3

Total net revenue
477.4


379.4

 
742.8

 
568.7

Operating expense:
 
 
 
 
 
 
 
Churchill Downs
73.6

 
58.0

 
97.0

 
67.9

Online Wagering
62.0

 
59.5

 
107.1

 
103.5

Gaming
133.2

 
78.1

 
258.2

 
157.7

All Other
21.5

 
22.0

 
37.0

 
38.3

Selling, general and administrative expense
30.1

 
23.1

 
55.0

 
41.5

Transaction expense, net
0.6

 
2.1

 
4.1

 
3.5

Total operating expense
321.0

 
242.8

 
558.4

 
412.4

Operating income
156.4

 
136.6

 
184.4

 
156.3

Other income (expense):
 
 
 
 
 
 
 
Interest expense, net
(19.4
)
 
(9.7
)
 
(33.1
)
 
(19.3
)
Equity in income of unconsolidated affiliates
9.5

 
8.8

 
13.6

 
15.3

Miscellaneous, net
0.4

 
0.3

 
0.4

 
0.4

Total other expense
(9.5
)
 
(0.6
)
 
(19.1
)
 
(3.6
)
  Income from continuing operations before provision for income taxes
146.9

 
136.0

 
165.3

 
152.7

Income tax provision
(38.6
)
 
(32.8
)
 
(45.1
)
 
(35.4
)
Income from continuing operations, net of tax
108.3

 
103.2

 
120.2

 
117.3

(Loss) income from discontinued operations, net of tax
(1.2
)
 
(0.1
)
 
(1.5
)
 
167.8

Net income
$
107.1

 
$
103.1

 
$
118.7

 
$
285.1

 
 
 
 
 
 
 
 
Net income (loss) per common share data - basic:
 
 
 
 
 
 
 
Continuing operations
$
2.69

 
$
2.54

 
$
2.99

 
$
2.80

Discontinued operations
$
(0.03
)
 
$

 
$
(0.04
)
 
$
3.99

Net income per common share data - basic
$
2.66

 
$
2.54

 
$
2.95

 
$
6.79

 
 
 
 
 
 
 
 
Net income (loss) per common share data - diluted:
 
 
 
 
 
 
 
Continuing operations
$
2.66

 
$
2.52

 
$
2.96

 
$
2.78

Discontinued operations
$
(0.03
)
 
$

 
$
(0.04
)
 
$
3.97

Net income per common share data - diluted
$
2.63

 
$
2.52

 
$
2.92

 
$
6.75

 
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
Basic
40.1

 
40.7

 
40.3

 
42.0

Diluted
40.7

 
40.9

 
40.7

 
42.2

 
 
 
 
 
 
 
 
Other comprehensive income (loss):
 
 
 
 
 
 
 
Foreign currency translation, net of tax
$

 
$

 
$

 
$
0.6

Change in pension benefits, net of tax

 
(0.2
)
 

 
(0.4
)
Other comprehensive income (loss)

 
(0.2
)
 

 
0.2

Comprehensive income
$
107.1

 
$
102.9

 
$
118.7

 
$
285.3

The accompanying notes are an integral part of the condensed consolidated financial statements.

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019
 
3
 


CHURCHILL DOWNS INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions)
June 30, 2019
 
December 31, 2018
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
202.7

 
$
133.3

Restricted cash
42.8

 
40.0

Accounts receivable, net
72.8

 
28.8

Income taxes receivable

 
17.0

Other current assets
30.2

 
22.4

Total current assets
348.5

 
241.5

Property and equipment, net
880.0

 
757.5

Investment in and advances to unconsolidated affiliates
621.8

 
108.1

Goodwill
363.8

 
338.0

Other intangible assets, net
354.7

 
264.0

Other assets
19.7

 
16.1

Total assets
$
2,588.5

 
$
1,725.2

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
107.2

 
$
47.0

Purses payable
33.0

 
15.8

Account wagering deposit liabilities
29.6

 
29.6

Accrued expense
104.9

 
89.8

Income taxes payable
15.0

 

Current deferred revenue
15.1

 
47.9

Current maturities of long-term debt
4.0

 
4.0

Dividends payable

 
22.5

Total current liabilities
308.8

 
256.6

Long-term debt, net of current maturities and loan origination fees
385.6

 
387.3

Notes payable, net of debt issuance costs
1,084.9

 
493.0

Non-current deferred revenue
17.2

 
21.1

Deferred income taxes
199.9

 
78.2

Other liabilities
38.8

 
15.7

Total liabilities
2,035.2

 
1,251.9

Commitments and contingencies

 

Shareholders' equity:
 
 
 
Preferred stock, no par value; 0.3 shares authorized; no shares issued or outstanding

 

Common stock, no par value; 150.0 shares authorized; 40.0 shares issued and outstanding at June 30, 2019 and 40.4 shares at December 31, 2018
2.9

 

Retained earnings
551.3

 
474.2

Accumulated other comprehensive loss
(0.9
)
 
(0.9
)
Total shareholders' equity
553.3

 
473.3

Total liabilities and shareholders' equity
$
2,588.5

 
$
1,725.2

The accompanying notes are an integral part of the condensed consolidated financial statements.

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019
 
4
 


CHURCHILL DOWNS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(Unaudited)
 
Common Stock
 
Retained
Earnings
 
Accumulated Other Comprehensive Loss
 
Total Shareholders' Equity
(in millions)
Shares
 
Amount
 
 
 
Balance, December 31, 2018
40.4

 
$

 
$
474.2

 
$
(0.9
)
 
$
473.3

Net income
 
 
 
 
11.6

 
 
 
11.6

Issuance of common stock
0.1

 

 
 
 
 
 

Repurchase of common stock
(0.3
)
 
(4.7
)
 
(20.3
)
 
 
 
(25.0
)
Taxes paid related to net share settlement of stock awards
(0.1
)
 

 
(7.6
)
 
 
 
(7.6
)
Issuance of restricted stock awards, net of forfeitures
0.1

 

 
 
 
 
 

Stock-based compensation
 
 
4.7

 
 
 
 
 
4.7

Adoption of ASC 842
 
 
 
 
(0.3
)
 
 
 
(0.3
)
Other
 
 
 
 
0.2

 
 
 
0.2

Balance, March 31, 2019
40.2

 

 
457.8

 
(0.9
)
 
456.9

Net income
 
 
 
 
107.1

 
 
 
107.1

Repurchase of common stock
(0.2
)
 
(4.4
)
 
(13.6
)
 
 
 
(18.0
)
Stock-based compensation
 
 
7.4

 
 
 
 
 
7.4

Other
 
 
(0.1
)
 
 
 
 
 
(0.1
)
Balance, June 30, 2019
40.0

 
$
2.9

 
$
551.3

 
$
(0.9
)
 
$
553.3


 
Common Stock
 
Retained
Earnings
 
Accumulated Other Comprehensive Loss
 
Total Shareholders' Equity
(in millions)
Shares
 
Amount
 
 
 
Balance, December 31, 2017
46.2

 
$
7.3

 
$
634.3

 
$
(1.3
)
 
$
640.3

Net income
 
 
 
 
182.0

 
 
 
182.0

Issuance of common stock
0.1

 

 
 
 
 
 

Repurchase of common stock
(5.7
)
 
(13.5
)
 
(488.0
)
 
 
 
(501.5
)
Taxes paid related to net share settlement of stock awards
(0.1
)
 

 
(12.9
)
 
 
 
(12.9
)
Issuance of restricted stock awards, net of forfeitures
0.1

 

 
 
 
 
 

Stock-based compensation
 
 
6.2

 
 
 
 
 
6.2

Adoption of ASC 606
 
 
 
 
29.7

 
 
 
29.7

Other
 
 
 
 
 
 
0.4

 
0.4

Balance, March 31, 2018
40.6

 

 
345.1

 
(0.9
)
 
344.2

Net income
 
 
 
 
103.1

 
 
 
103.1

Issuance of common stock
0.1

 

 
 
 
 
 

Repurchase of common stock

 
(0.3
)
 

 
 
 
(0.3
)
Stock-based compensation
 
 
6.4

 
 
 
 
 
6.4

Other
 
 
(0.1
)
 
(0.1
)
 
 
 
(0.2
)
Balance, June 30, 2018
40.7

 
$
6.0

 
$
448.1

 
$
(0.9
)
 
$
453.2


The accompanying notes are an integral part of the condensed consolidated financial statements.

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019
 
5
 


CHURCHILL DOWNS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
Six Months Ended June 30,
(in millions)
2019
 
2018
Cash flows from operating activities:
 
 
 
Net income
$
118.7

 
$
285.1

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
42.3

 
29.1

Distributions from unconsolidated affiliates
11.5

 
9.9

Equity in income of unconsolidated affiliates
(13.6
)
 
(15.3
)
Stock-based compensation
12.1

 
12.6

Deferred income taxes
12.1

 
6.9

Gain on sale of Big Fish Games

 
(219.5
)
Other
1.1

 
(2.3
)
Changes in operating assets and liabilities, net of business acquisitions and dispositions:
 
 
 
Income taxes
31.9

 
55.3

Deferred revenue
(36.9
)
 
(43.7
)
Other assets and liabilities
35.1

 
44.2

Net cash provided by operating activities
214.3

 
162.3

Cash flows from investing activities:
 
 
 
Capital maintenance expenditures
(26.2
)
 
(13.7
)
Capital project expenditures
(32.6
)
 
(58.7
)
Acquisition of businesses, net of cash acquired
(172.1
)
 

Investments in and advances to unconsolidated affiliates
(410.1
)
 

Distributions of capital from unconsolidated affiliates
8.1

 

Acquisition of gaming licenses
(22.1
)
 

Proceeds from sale of Big Fish Games

 
970.7

Other
1.1

 
(5.9
)
Net cash (used in) provided by investing activities
(653.9
)
 
892.4

Cash flows from financing activities:
 
 
 
Proceeds from borrowings under long-term debt obligations
1,235.3

 
117.2

Repayments of borrowings under long-term debt obligations
(637.3
)
 
(361.3
)
Payment of dividends
(22.2
)
 
(23.5
)
Repurchase of common stock
(45.5
)
 
(501.8
)
Taxes paid related to net share settlement of stock awards
(7.6
)
 
(12.9
)
Debt issuance costs
(8.6
)
 

Big Fish Games earnout payment

 
(31.8
)
Big Fish Games deferred payment

 
(26.4
)
Other
(2.3
)
 
(4.4
)
Net cash provided by (used in) financing activities
511.8

 
(844.9
)
Net increase in cash, cash equivalents and restricted cash
72.2

 
209.8

Effect of exchange rate changes on cash flows

 
(0.6
)
Cash, cash equivalents and restricted cash, beginning of period
173.3

 
85.5

Cash, cash equivalents and restricted cash, end of period
$
245.5

 
$
294.7

The accompanying notes are an integral part of the condensed consolidated financial statements.

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019
 
6
 


CHURCHILL DOWNS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)

 
Six Months Ended June 30,
(in millions)
2019
 
2018
Supplemental disclosures of cash flow information:
 
 
 
Cash paid during the period for:
 
 
 
Interest
$
23.6

 
$
8.5

Income taxes
1.3

 
23.7

Schedule of non-cash investing and financing activities:
 
 
 
Property and equipment additions included in accounts payable and accrued expenses
6.8

 
21.9

Deferred tax liability assumed from equity investment
109.6

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019
 
7
 

Churchill Downs Incorporated
Notes to Condensed Consolidated Financial Statements
(Unaudited)



1. DESCRIPTION OF BUSINESS
Basis of Presentation
The Churchill Downs Incorporated (the "Company", "we", "us", "our") financial statements are presented in conformity with the requirements of this Quarterly Report on Form 10-Q and consequently do not include all of the disclosures normally required by U.S. generally accepted accounting principles ("GAAP") or those normally made in our Annual Report on Form 10-K. The December 31, 2018 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP.
The following information is unaudited. All per share amounts assume dilution unless otherwise noted. This report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018.
In the opinion of management, all adjustments necessary for a fair statement of this information have been made, and all such adjustments are of a normal, recurring nature.
Segments
During the first quarter of 2019, we realigned our operating segments to reflect the internal management reporting used by our chief operating decision maker to evaluate results of operations and to assess performance and allocate resources. Our internal management reporting changed primarily due to the continued growth in our Churchill Downs Racetrack and Derby City Gaming business and our casino and associated racing businesses, which resulted in our chief operating decision maker's decision to realign our operating segments primarily based on the regulatory licenses governing each business. Since each of these individual businesses operates under single or interdependent licenses, each of these businesses represents an operating segment. As our TwinSpires business and online sports betting and iGaming businesses are managed together, these businesses represent an operating segment. For financial reporting purposes, we aggregate our operating segments that are similar into three reportable segments as follows:
Churchill Downs
The Churchill Downs segment includes live and historical pari-mutuel racing related revenue and expenses at Churchill Downs Racetrack and Derby City Gaming.
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.
Churchill Downs Racetrack and Derby City Gaming earn commissions primarily from pari-mutuel wagering on live races at Churchill Downs and on historical races at Derby City Gaming; 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.
Online Wagering
The Online Wagering segment includes the revenue and expenses for the TwinSpires business ("TwinSpires") and the online Sports Betting and iGaming business.
TwinSpires operates our online horseracing wagering business on TwinSpires.com, BetAmerica.com and other Company platforms; facilitates high dollar wagering by international customers ("Velocity"); and provides the platform for horseracing statistical data generated by our information business that provides data and processing services to the equine industry ("Brisnet").
Our Sports Betting and iGaming business includes the online BetAmerica sports betting and casino gaming operations.
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") located in eight states.
The Gaming segment revenue and expenses includes the following properties:
Calder Casino and Racing ("Calder")

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019
 
8
 

Churchill Downs Incorporated
Notes to Condensed Consolidated Financial Statements
(Unaudited)


Fair Grounds Slots, Fair Grounds Race Course, and Video Services, LLC ("VSI") (collectively, "Fair Grounds and VSI")
Harlow’s Casino Resort and Spa ("Harlow's")
Lady Luck Casino Nemacolin ("Lady Luck Nemacolin") management agreement
Ocean Downs Casino and Racetrack ("Ocean Downs")
Oxford Casino and Hotel ("Oxford")
Presque Isle Downs and Casino ("Presque Isle")
Riverwalk Casino Hotel ("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 Holdings, LLC ("Midwest Gaming"), the parent company of Rivers Casino Des Plaines in Des Plaines, Illinois ("Rivers Des Plaines")
50% equity investment in Miami Valley Gaming and Racing ("MVG")
The Gaming segment generates revenue and expenses from slot machines, table games, VLTs, video poker, retail sports betting, 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 International Racecourse ("Arlington")
United Tote
We conduct our business through these reportable segments and report net revenue and operating expense associated with these reportable segments in the accompanying condensed consolidated statements of comprehensive income. The prior year results were reclassified to conform to this presentation.
Effective January 1, 2019, the Company does not allocate corporate and other related expenses to the reportable segments in the accompanying condensed consolidated statements of comprehensive income. The prior year results in the accompanying consolidated statements of comprehensive income were reclassified to conform to this presentation.
Acquisitions of Presque Isle and Lady Luck Nemacolin
On January 11, 2019, we completed the acquisition of Presque Isle located in Erie, Pennsylvania from Eldorado Resorts, Inc. ("ERI") for cash consideration of $178.9 million (the "Presque Isle Transaction") and $1.6 million of working capital and other purchase price adjustments.
On March 8, 2019, the Company assumed management and acquired certain assets related to the management of Lady Luck Nemacolin in Farmington, Pennsylvania, from ERI for cash consideration of $100,000 (the "Lady Luck Nemacolin Transaction").
Acquisition of Certain Ownership Interests of Midwest Gaming Holdings, LLC
On October 31, 2018, the Company announced that it had entered into a definitive purchase agreement pursuant to which the Company acquired certain ownership interests of Midwest Gaming, the parent company of Rivers Des Plaines in Des Plaines, Illinois, for cash (the "Sale Transaction").
The Sale Transaction was comprised of (i) the Company’s purchase of 100% of the ownership stake in Midwest Gaming held by affiliates and co-investors of Clairvest Group Inc. ("Clairvest") for approximately $291.0 million and (ii) the Company’s offer to purchase, on the same terms, additional units of Midwest Gaming held by High Plaines Gaming, LLC ("High Plaines"), an affiliate of Rush Street Gaming, LLC, and Casino Investors, LLC ("Casino Investors") (collectively, the "Sellers"). On March 5, 2019, the Company completed the Sale Transaction.
Following the closing of the Sale Transaction, the parties entered into a recapitalization transaction pursuant to which Midwest Gaming used approximately $300.0 million in proceeds from new credit facilities to redeem, on a pro rata basis, additional Midwest Gaming units held by High Plaines and Casino Investors (the "Recapitalization" and together with the Sale Transaction, the "Transactions").
Based on the results of the purchase of the Clairvest ownership stake and the purchase, on the same terms, of additional units held by High Plaines and Casino Investors, the Company acquired, at the closing of the Sale Transaction, approximately 42% of Midwest Gaming for aggregate cash consideration of approximately $406.6 million. As a result of the Recapitalization on March 6, 2019, the Company's ownership of Midwest Gaming increased to 61.3%.

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019
 
9
 

Churchill Downs Incorporated
Notes to Condensed Consolidated Financial Statements
(Unaudited)


The total aggregate cash consideration paid for the Sale Transaction was $410.1 million, which included $3.5 million for certain transaction costs and working capital adjustments. We recognized a $109.6 million deferred tax liability and a corresponding increase in our investment in unconsolidated affiliates related to an entity we acquired in conjunction with our acquisition of the Clairvest ownership.
Refer to Note 12, Investments in and Advances to Unconsolidated Affiliates, for further information on the Transactions.
Sale of Big Fish Games, Inc.
On November 29, 2017, the Company entered into a definitive Stock Purchase Agreement (the "Stock Purchase Agreement") to sell its mobile gaming subsidiary, Big Fish Games, Inc. ("Big Fish Games"), a Washington corporation, to Aristocrat Technologies, Inc. (the "Purchaser"), a Nevada corporation, an indirect, wholly owned subsidiary of Aristocrat Leisure Limited, an Australian corporation (the "Big Fish Transaction"). On January 9, 2018, pursuant to the Stock Purchase Agreement, the Company completed the Big Fish Transaction. The Purchaser paid an aggregate consideration of $990.0 million in cash in connection with the Big Fish Transaction, subject to customary adjustments for working capital and indebtedness and certain other adjustments as set forth in the Stock Purchase Agreement. The Company received cash proceeds of $970.7 million, which was net of $5.2 million of working capital adjustments and $14.1 million of transaction costs.
Big Fish Games and the related Big Fish Transaction meet the criteria for discontinued operation presentation. Accordingly, the condensed consolidated statements of comprehensive income and the notes to financial statements reflect Big Fish Games as discontinued operations for all periods presented. Unless otherwise specified, disclosures in these condensed consolidated financial statements reflect continuing operations only. The condensed consolidated statements of cash flows include both continuing and discontinued operations. Refer to Note 5, Discontinued Operations, for further information on the discontinued operations relating to the Big Fish Transaction.
Stock Split
On October 31, 2018, the Company announced a three-for-one split (the "Stock Split") of the Company's common stock for shareholders of record as of January 11, 2019. The additional shares resulting from the Stock Split were distributed on January 25, 2019. Our common stock began trading at the split-adjusted price on January 28, 2019. All share and per-share amounts in the Company’s condensed consolidated financial statements and related notes have been retroactively adjusted to reflect the effects of the Stock Split.
Seasonality
Churchill Downs
Due to the seasonal nature of our live racing business at Churchill Downs Racetrack, revenue and operating results for any interim quarter are generally not indicative of the revenues and operating results for the year and may not be comparable with results for the corresponding period of the previous year. Historically, the majority of our live racing revenue occurs during the second quarter.
Online Wagering
Due to the seasonal nature of the racing business, revenue and operating results for any interim quarter are generally not indicative of the revenues and operating results for the year and may not be comparable with results for the corresponding period of the previous year. Historically, our revenue is higher in the second quarter with the running of the Kentucky Derby and the Kentucky Oaks.
Gaming
Revenue from the properties in our Gaming segment has a seasonal component and is typically higher during the first and second quarters.
2. RECENT ACCOUNTING PRONOUNCEMENTS
Recent Accounting Pronouncement - Adopted on January 1, 2019
In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases, and subsequently has issued additional guidance (collectively, "ASC 842"), which requires companies to generally recognize operating and financing lease liabilities and corresponding right-of-use assets ("ROUAs") on the balance sheet. We adopted ASC 842 on January 1, 2019 using the modified transition method. As part of the transition to ASC 842, we elected the package of practical expedients that allowed us to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. We recognized

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019
 
10
 

Churchill Downs Incorporated
Notes to Condensed Consolidated Financial Statements
(Unaudited)


the cumulative effect of applying ASC 842 as an opening balance sheet adjustment at January 1, 2019. The comparative information has not been retrospectively adjusted and continues to be reported under the accounting standards in effect for those periods.
The adoption of ASC 842 had no impact on our accompanying condensed consolidated statements of comprehensive income or statements of cash flows. Due to the adoption of ASC 842, we recognized operating lease ROUAs and lease liabilities for our operating leases with lease terms greater than one year. We do not have any material finance leases or any material operating leases where we are the lessor. We expect the adoption of ASC 842 will not materially impact our results of operations, financial condition, or cash flows on an ongoing basis.
The cumulative effects of the changes made to our accompanying condensed consolidated balance sheets as of January 1, 2019 for the adoption of ASC 842 were as follows:
(in millions)
As Reported at December 31, 2018
 
Adoption of ASC 842
 
Balance at January 1, 2019
ASSETS
 
 
 
 
 
Other current assets
$
22.4

 
$
(0.3
)
 
$
22.1

Property and equipment, net
757.5

 
25.3

 
782.8

 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
Accrued expense
89.8

 
3.8

 
93.6

Other liabilities
15.7

 
21.5

 
37.2

 
 
 
 
 
 
SHAREHOLDERS' EQUITY
 
 
 
 
 
Retained earnings
474.2

 
(0.3
)
 
473.9


Recent Accounting Pronouncements - effective in 2020 or thereafter
In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other: Internal-Use Software, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new guidance also requires an entity to expense the capitalized implementation costs of a hosting arrangement over the term of the hosting arrangement. The guidance is effective in 2020 with early adoption permitted and may be applied prospectively or retrospectively. We are assessing the impact of the new accounting guidance and currently cannot estimate the financial statement impact of adoption.
In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses, which introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The new model will apply to: (1) loans, accounts receivable, trade receivables, and other financial assets measured at amortized cost, (2) loan commitments and certain other off-balance sheet credit exposures, (3) debt securities and other financial assets measured at fair value through other comprehensive income, and (4) beneficial interests in securitized financial assets. The guidance will become effective in 2020, and is to be applied through a modified retrospective approach during the year of adoption. We are assessing the impact of the new accounting guidance and currently cannot estimate the financial statement impact of adoption.
In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. This new guidance simplifies the accounting for goodwill impairments by removing step two from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess. The new guidance is effective in 2020 with early adoption permitted for any goodwill impairment test performed between January 1, 2017 and January 1, 2020, and is to be applied prospectively. We are assessing the impact of the new accounting guidance and currently cannot estimate the financial statement impact of adoption.
3. SIGNIFICANT ACCOUNTING POLICIES
Except for the accounting policy for leases, which was updated as a result of our adoption of ASC 842 on January 1, 2019, as described in Note 2, Recent Accounting Pronouncements, there have been no changes to our significant accounting policies described in the Annual Report on Form 10-K for the year ended December 31, 2018, that have had a material impact on our condensed consolidated financial statements and related notes.

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019
 
11
 

Churchill Downs Incorporated
Notes to Condensed Consolidated Financial Statements
(Unaudited)


Leases
We determine if an arrangement is a lease at inception. Operating leases are included in property and equipment, net; accrued expense; and other liabilities on our condensed consolidated balance sheets. We generally do not separate lease and non-lease components for our lease contracts. We do not apply the ROUA and leases liability recognition requirements to short-term leases.
Operating lease ROUAs and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future lease payments. The operating lease ROUAs also include any lease payments made prior to commencement and exclude lease incentives and initial direct costs incurred. Our lease terms include all non-cancelable periods and may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.
4. ACQUISITIONS
Presque Isle
On January 11, 2019, the Company completed the Presque Isle Transaction for a cash purchase price of $178.9 million and $1.6 million of working capital and other purchase price adjustments. The fair values for the assets acquired and liabilities assumed in the Presque Isle Transaction shown below are based upon preliminary valuations. Estimates and assumptions used in such valuations are subject to change, which could be significant, within the measurement period up to one year from the acquisition date. The primary areas of the preliminary valuations that are not yet finalized relate to income taxes, intangible assets, working capital adjustments, and residual goodwill. The Company expects to continue to obtain information to assist in determining the fair values of the net assets acquired at the acquisition date during the measurement period. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed, net of cash acquired of $8.4 million, at the date of the acquisition.
(in millions)
Total
Current assets
$
2.1

Property and equipment
78.5

Goodwill
25.8

Intangible assets
71.2

Current liabilities
(4.9
)
Non-current liabilities
(0.6
)
 
$
172.1


The preliminary fair value of the intangible assets consists of the following:
(in millions)
Fair Value Recognized
 
Weighted-Average Useful Life
Gaming rights
$
56.0

 
N/A
Trademark
15.2

 
N/A
Total intangible assets
$
71.2

 
 

Current assets and current liabilities were valued at the existing carrying values as these items are short term in nature and represent management's estimated fair value of the respective items at January 11, 2019.
The property and equipment acquired primarily relates to land, buildings, equipment, and furniture and fixtures. The fair value of the land was determined using the market approach and the fair values of the remaining property and equipment were primarily determined using the cost replacement method which is based on replacement or reproduction costs of the assets.
The fair value of the Presque Isle gaming rights was determined using the Greenfield Method, which is an income approach methodology that calculates the present value of the overall business enterprise based on a projected cash flow stream. This method assumes that the gaming rights intangible asset provides the opportunity to develop a casino in a specified region, and that the present value of the projected cash flows are a result of the realization of advantages contained in these rights. Under this methodology, the acquirer is expected to absorb all start-up costs, as well as incur all expenses pertaining to the acquisition and/

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019
 
12
 

Churchill Downs Incorporated
Notes to Condensed Consolidated Financial Statements
(Unaudited)


or the creation of all tangible and intangible assets. The estimated future revenue and operating expenses and start-up costs of Presque Isle were the primary inputs in the valuation. The gaming rights intangible asset was assigned an indefinite useful life based on the Company's expected use of the asset and determination that no legal, regulatory, contractual, competitive, economic, or other factors limit the useful life of the gaming rights. The renewal of the gaming rights in Pennsylvania is subject to various legal requirements. However, the Company's historical experience has not indicated, nor does the Company expect, any limitations regarding its ability to continue to renew its gaming rights in Pennsylvania.
The trademark intangible asset was valued using the relief-from-royalty method of the income approach, which estimates the fair value of the intangible asset by discounting the fair value of the hypothetical royalty payments a market participant would be willing to pay to enjoy the benefits of the asset. The trademark was assigned an indefinite useful life based on the Company’s intention to keep the Presque Isle name for an indefinite period of time.
Goodwill of $25.8 million was recognized due to the expected contribution of Presque Isle to the Company's overall business strategy. The goodwill was assigned to the Gaming segment and is deductible for tax purposes.
For the period from the Presque Isle Transaction on January 11, 2019 through June 30, 2019, net revenue was $67.0 million and net income was not material for the period.
The following unaudited pro forma consolidated financial information for the Company has been prepared assuming the Company's acquisition of Presque Isle occurred as of January 1, 2018. The unaudited pro forma financial information is not necessarily indicative of either future results of operations or results of operations that might have been achieved had the acquisition been consummated as of January 1, 2018. The unaudited pro forma net income giving effect to the Presque Isle Transaction was not materially different than our historical net income.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in millions)
2019
 
2018
 
2019
 
2018
Net revenue
$
477.4

 
$
416.3

 
$
746.0

 
$
638.8


Lady Luck Nemacolin
On March 8, 2019, we completed the Lady Luck Nemacolin Transaction, by which we assumed management and acquired certain assets related to the management of Lady Luck Nemacolin from ERI for cash consideration of $100,000. The Lady Luck Nemacolin Transaction did not meet the definition of a business and therefore was accounted for as an asset acquisition. The net assets acquired in conjunction with the Lady Luck Nemacolin Transaction were not material.
Ocean Downs
On July 16, 2018, the Company announced its entry into a tax-efficient partial liquidation agreement (the "Liquidation Agreement") for the remaining 50% ownership of the Casino at Ocean Downs and Ocean Downs Racetrack located in Berlin, Maryland ("Ocean Downs") owned by Saratoga Casino Holdings LLC ("SCH") in exchange for the Company's 25% equity interest in SCH, which is the parent company of Saratoga Casino Hotel in Saratoga Springs, New York ("Saratoga New York") and Saratoga Casino Black Hawk in Black Hawk, Colorado ("Saratoga Colorado") (collectively, the "Ocean Downs/Saratoga Transaction"). As part of the Ocean Downs/Saratoga Transaction, Saratoga Harness Racing, Inc. ("SHRI") has agreed to grant the Company and its affiliates exclusive rights to operate online sports betting and iGaming on behalf of SHRI in New York and Colorado for a period of fifteen years from the date of the Liquidation Agreement, should such states permit SHRI to engage in sports betting and iGaming, subject to payment of commercially reasonable royalties to SHRI.
On August 31, 2018, the Company completed the Ocean Downs/Saratoga Transaction, which resulted in the Company owning 100% of the equity interests of Ocean Downs. We therefore consolidated Ocean Downs as of the transaction date. Upon the closing of the Ocean Downs/Saratoga Transaction, the Company no longer has an equity interest or management involvement in Saratoga New York or Saratoga Colorado. Prior to the Ocean Downs/Saratoga Transaction, the Company held an effective 62.5% ownership interest in Ocean Downs, and a 25% ownership interest in Saratoga New York and Saratoga Colorado, all of which were accounted for under the equity method. The consideration transferred to SCH to acquire the remaining interest in Ocean Downs was the Company's equity investments in Saratoga New York and Saratoga Colorado, which had an aggregate fair value of $47.8 million at the acquisition date. Under the acquisition method, the fair values of the consideration transferred and the Company's equity method investment in Ocean Downs, which had a fair value of $80.5 million at the acquisition date, were allocated to the assets acquired and liabilities assumed in the Ocean Downs/Saratoga Transaction. The Company's carrying values in these equity method investments were significantly less than the fair values, resulting in a pre-tax gain of $54.9 million, which is included in the accompanying consolidated statements of comprehensive income. The fair value of the Company's equity method investments in Ocean Downs, Saratoga New York, and Saratoga Colorado was determined under the market and income valuation

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019
 
13
 

Churchill Downs Incorporated
Notes to Condensed Consolidated Financial Statements
(Unaudited)


approaches using inputs primarily related to discounted projected cash flows and price multiples of publicly traded comparable companies.
The following unaudited pro forma consolidated financial information for the Company has been prepared assuming the Company's acquisition of the remaining 50% interest in Ocean Downs occurred as of January 1, 2018. The unaudited pro forma financial information is not necessarily indicative of either future results of operations or results of operations that might have been achieved had the acquisition been consummated as of January 1, 2018. The unaudited pro forma net income giving effect to the Ocean Downs/Saratoga Transaction was not materially different than our historical net income.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in millions)
2018
 
2018
Net revenue
$
400.9

 
$
607.1


5. DISCONTINUED OPERATIONS
On January 9, 2018, the Company completed the Big Fish Transaction, which had a purchase price of $990.0 million. The Company received cash proceeds of $970.7 million, which was net of $5.2 million of working capital adjustments and $14.1 million of transaction costs. The Company derecognized the following upon the Big Fish Transaction:
(in millions)
 
Cash and cash equivalents
$
0.3

Accounts receivable
34.7

Game software development, net
6.7

Other current assets
17.0

Property and equipment, net
17.8

Game software development, net
13.8

Goodwill
530.7

Other intangible assets, net
238.4

Other assets
24.0

Accounts payable
(8.5
)
Accrued expense
(22.6
)
Deferred revenue
(44.2
)
Deferred income taxes
(52.0
)
Other liabilities
(4.9
)
Carrying value of Big Fish Games
$
751.2


The Company recognized a gain of $219.5 million upon the sale recorded in income from discontinued operations on the condensed consolidated statement of comprehensive income for the three months ended March 31, 2018. The gain consisted of cash proceeds of $970.7 million offset by the carrying value of Big Fish Games of $751.2 million. The income tax provision on the gain was $51.2 million, resulting in an after tax gain of $168.3 million.

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019
 
14
 

Churchill Downs Incorporated
Notes to Condensed Consolidated Financial Statements
(Unaudited)


The following table presents the financial results of Big Fish Games included in "(loss) income from discontinued operations, net of tax" in the accompanying condensed consolidated statements of comprehensive income:
 
Three Months Ended June 30,