$CHDN

CHURCHILL DOWNS INC

CIK:0000020212|SEC Filings

Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Net revenue:
Net revenue	$ 980	$ 934	$ 1,643	$ 1,577
Operating expense:
Selling, general and administrative expense	61	61	120	116
Asset impairments, net	0	2	0	2
Transaction expense, net	1	2	2	2
Total operating expense	623	607	1,143	1,115
Operating income	357	327	500	462
Other (expense) income:
Interest expense, net	(70)	(75)	(142)	(147)
Equity in income of unconsolidated affiliates	41	37	77	70
Miscellaneous, net	0	3	6	3
Total other (expense) income	(29)	(35)	(59)	(74)
Income from operations before provision for income taxes	328	292	441	388
Income tax provision	(86)	(74)	(116)	(93)
Net income	242	218	325	295
Net income attributable to noncontrolling interests	1	1	1	1
Net income attributable to Churchill Downs Incorporated	$ 241	$ 217	$ 324	$ 294
Net income attributable to Churchill Downs Incorporated per common share data:
Basic net income (in dollars per share)	$ 3.43	$ 3.02	$ 4.59	$ 4.02
Diluted net income (in dollars per share)	$ 3.42	$ 2.99	$ 4.58	$ 3.98
Weighted average shares outstanding:
Basic (in shares)	70	72	70	73
Diluted (in shares)	70	72	70	73
Live and Historical Racing
Net revenue:
Net revenue	$ 543	$ 510	$ 840	$ 783
Operating expense:
Operating expense	268	256	467	446
Wagering Services and Solutions
Net revenue:
Net revenue	167	158	276	265
Operating expense:
Operating expense	96	91	164	158
Gaming
Net revenue:
Net revenue	270	266	527	529
Operating expense:
Operating expense	192	191	380	383
All Other
Net revenue:
Net revenue	0	0	0	0
Operating expense:
Operating expense	$ 5	$ 4	$ 10	$ 8

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 325	$ 295
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	115	117
Distributions from unconsolidated affiliates	72	63
Equity in income of unconsolidated affiliates	(77)	(70)
Stock-based compensation	13	11
Deferred income taxes	42	4
Asset impairments	0	2
Amortization of operating lease assets	3	3
Other	5	4
Changes in operating assets and liabilities:
Income taxes	55	81
Deferred revenue	(31)	(37)
Other assets and liabilities	(10)	14
Net cash provided by operating activities	512	487
Cash flows from investing activities:
Capital maintenance expenditures	(38)	(32)
Capital project expenditures	(79)	(133)
Other	(2)	(1)
Net cash used in investing activities	(119)	(166)
Cash flows from financing activities:
Proceeds from borrowings under long-term debt obligations	646	642
Repayments of borrowings under long-term debt obligations	(1,006)	(547)
Payment of dividends	(31)	(30)
Repurchase of common stock	0	(341)
Taxes paid related to net share settlement of stock awards	(3)	(4)
Change in bank overdraft	8	(5)
Other	(1)	(2)
Net cash used in financing activities	(387)	(287)
Net increase in cash, cash equivalents and restricted cash	6	34
Cash, cash equivalents and restricted cash, beginning of period	289	252
Cash, cash equivalents and restricted cash, end of period	295	286
Supplemental disclosures of cash flow information:
Cash paid for interest	139	145
Cash paid for income taxes	19	10
Cash received from income tax refunds	0	1
Schedule of non-cash operating, investing and financing activities:
Property and equipment additions included in accounts payable and accrued expenses	18	28
Right-of-use assets obtained in exchange for lease obligations in operating leases	1	9
Repurchase of common stock included in accrued expense and other current liabilities	$ 0	$ 2

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 196	$ 201
Restricted cash	99	88
Accounts receivable, net	129	93
Income taxes receivable	0	17
Other current assets	60	44
Total current assets	484	443
Property and equipment, net	2,911	2,919
Investment in and advances to unconsolidated affiliates	690	685
Goodwill	900	900
Other intangible assets, net	2,513	2,515
Other assets	23	23
Total assets	7,521	7,485
Current liabilities:
Accounts payable	261	184
Accrued expenses and other current liabilities	370	400
Income taxes payable	38	0
Current deferred revenue	27	55
Current maturities of long-term debt and notes payable	663	63
Dividends payable	0	31
Total current liabilities	1,359	733
Long-term debt, net of current maturities and loan origination fees	1,627	1,986
Notes payable, net of current maturities and debt issuance costs	2,483	3,081
Non-current deferred revenue	12	15
Deferred income taxes	562	520
Other liabilities	87	94
Total liabilities	6,130	6,429
Commitments and contingencies
Redeemable noncontrolling interest	50	46
Shareholders' equity:
Preferred stock	0	0
Common stock	7	0
Retained earnings	1,335	1,011
Accumulated other comprehensive loss	(1)	(1)
Total Churchill Downs Incorporated shareholders' equity	1,341	1,010
Total liabilities and shareholders' equity	$ 7,521	$ 7,485