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Business Segments | 6 Months Ended
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Jun. 30, 2016
Segment Reporting [Abstract] |
Business Segments | Business Segments We report our operations in three business segments—Gaming, Lottery and Interactive—representing our different products and services. These are our reportable segments under ASC 280, Segment Reporting. Each of our business segments is managed by a separate executive who reports to our chief executive officer (who is our "chief operating decision maker" as defined under applicable accounting standards). Our three business segments represent separate standalone businesses based on the industries in which we operate. Our Gaming business segment generally sells gaming machines, VLTs and conversion kits and parts, leases or otherwise provides gaming machines, server-based systems and content, sells and supports casino-management systems-based software and hardware, and sells and leases PTG content and Shufflers, including automatic card shufflers, deck checkers and roulette chip sorters, to commercial, tribal and governmental gaming operators. Our Lottery business segment provides instant lottery games and related value-added services, as well as licensed brands utilized in instant lottery games and loyalty and reward services. Our Lottery business segment also provides systems products and services generally comprised of point-of-sale terminals, a central system, customized computer software, data communication services, support and/or related equipment. Our Interactive business segment provides social gaming and RMG services to online casino operators through our remote game servers. Additional discussion regarding the products and services from which each reportable business segment derives its revenue is included in Note 1 (Description of the Business and Summary of Significant Accounting Policies) in our 2015 Annual Report on Form 10-K. The following tables present revenue, cost of revenue, SG&A, R&D, employee termination and restructuring, D&A, operating income and earnings from equity investments for the three and six months ended June 30, 2016 and 2015, respectively, by business segment. Certain unallocated corporate amounts consisted primarily of general and administrative expenses, other income (expense) and D&A.
|  | Three Months Ended June 30, 2016
|  | Gaming |  | Lottery |  | Interactive |  | Total
Revenue: |  |  |  |  |  |  |  |
Services |  | $ | 236.0 |  |  | $ | 44.1 |  |  | $ | 83.4 |  |  | $ | 363.5 |
Product sales |  | 205.9 |  |  | 8.9 |  |  | — |  |  | 214.8 |
Instant games |  | — |  |  | 150.9 |  |  | — |  |  | 150.9 |
Total revenue |  | 441.9 |  |  | 203.9 |  |  | 83.4 |  |  | 729.2 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of services (1) |  | 44.4 |  |  | 26.8 |  |  | 30.2 |  |  | 101.4 |
Cost of product sales (1) |  | 93.4 |  |  | 7.3 |  |  | — |  |  | 100.7 |
Cost of instant games (1) |  | — |  |  | 74.1 |  |  | — |  |  | 74.1 |
Selling, general and administrative |  | 61.2 |  |  | 17.8 |  |  | 26.8 |  |  | 105.8 |
Research and development |  | 38.5 |  |  | 2.6 |  |  | 8.4 |  |  | 49.5 |
Employee termination and restructuring |  | 3.4 |  |  | 0.2 |  |  | 0.5 |  |  | 4.1 |
Depreciation and amortization |  | 154.3 |  |  | 17.2 |  |  | 3.8 |  |  | 175.3 |
Segment operating income |  | $ | 46.7 |  |  | $ | 57.9 |  |  | $ | 13.7 |  |  | $ | 118.3 |
Unallocated corporate costs |  |  |  |  |  |  |  | (59.2 | )
Consolidated operating income |  |  |  |  |  |  |  | $ | 59.1 |
Earnings from equity investments |  | $ | 1.4 |  |  | $ | 6.6 |  |  | $ | — |  |  | $ | 8.0 |
(1) Exclusive of D&A.
|  | Three Months Ended June 30, 2015
|  | Gaming |  | Lottery |  | Interactive |  | Total
Revenue: |  |  |  |  |  |  |  |
Services |  | $ | 240.4 |  |  | $ | 45.9 |  |  | $ | 51.6 |  |  | $ | 337.9 |
Product sales |  | 209.3 |  |  | 8.8 |  |  | — |  |  | 218.1 |
Instant games |  | — |  |  | 135.5 |  |  | — |  |  | 135.5 |
Total revenue |  | 449.7 |  |  | 190.2 |  |  | 51.6 |  |  | 691.5 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of services (1) |  | 53.1 |  |  | 27.5 |  |  | 18.0 |  |  | 98.6 |
Cost of product sales (1) |  | 100.9 |  |  | 7.0 |  |  | — |  |  | 107.9 |
Cost of instant games (1) |  | — |  |  | 68.8 |  |  | — |  |  | 68.8 |
Selling, general and administrative |  | 71.2 |  |  | 16.4 |  |  | 15.2 |  |  | 102.8 |
Research and development |  | 41.1 |  |  | 1.5 |  |  | 5.4 |  |  | 48.0 |
Employee termination and restructuring |  | 2.7 |  |  | — |  |  | 0.3 |  |  | 3.0 |
Depreciation and amortization |  | 181.5 |  |  | 20.0 |  |  | 5.4 |  |  | 206.9 |
Segment operating (loss) income |  | $ | (0.8 | ) |  | $ | 49.0 |  |  | $ | 7.3 |  |  | $ | 55.5 |
Unallocated corporate costs |  |  |  |  |  |  |  | (55.6 | )
Consolidated operating loss |  |  |  |  |  |  |  | $ | (0.1 | )
Earnings from equity investments |  | $ | 1.8 |  |  | $ | 1.5 |  |  | $ | — |  |  | $ | 3.3 |
(1) Exclusive of D&A.
|  | Six Months Ended June 30, 2016
|  | Gaming |  | Lottery |  | Interactive |  | Total
Revenue: |  |  |  |  |  |  |  |
Services |  | $ | 468.6 |  |  | $ | 89.2 |  |  | $ | 156.0 |  |  | $ | 713.8 |
Product sales |  | 395.0 |  |  | 17.4 |  |  | — |  |  | 412.4 |
Instant games |  | — |  |  | 285.0 |  |  | — |  |  | 285.0 |
Total revenue |  | 863.6 |  |  | 391.6 |  |  | 156.0 |  |  | 1,411.2 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of services (1) |  | 85.6 |  |  | 54.9 |  |  | 55.8 |  |  | 196.3 |
Cost of product sales (1) |  | 181.2 |  |  | 13.9 |  |  | — |  |  | 195.1 |
Cost of instant games (1) |  | — |  |  | 141.1 |  |  | — |  |  | 141.1 |
Selling, general and administrative |  | 129.1 |  |  | 34.3 |  |  | 51.3 |  |  | 214.7 |
Research and development |  | 76.7 |  |  | 5.2 |  |  | 15.7 |  |  | 97.6 |
Employee termination and restructuring |  | 5.0 |  |  | 1.3 |  |  | 0.5 |  |  | 6.8 |
Depreciation and amortization |  | 295.9 |  |  | 35.0 |  |  | 7.5 |  |  | 338.4 |
Segment operating income |  | $ | 90.1 |  |  | $ | 105.9 |  |  | $ | 25.2 |  |  | $ | 221.2 |
Unallocated corporate costs |  |  |  |  |  |  |  | (111.8 | )
Consolidated operating income |  |  |  |  |  |  |  | $ | 109.4 |
Earnings from equity investments |  | $ | 1.4 |  |  | $ | 9.8 |  |  | $ | — |  |  | $ | 11.2 |
(1) Exclusive of D&A.
|  | Six Months Ended June 30, 2015
|  | Gaming |  | Lottery |  | Interactive |  | Total
Revenue: |  |  |  |  |  |  |  |
Services |  | $ | 478.3 |  |  | $ | 91.5 |  |  | $ | 98.5 |  |  | $ | 668.3 |
Product sales |  | 397.2 |  |  | 20.3 |  |  | — |  |  | 417.5 |
Instant games |  | — |  |  | 264.4 |  |  | — |  |  | 264.4 |
Total revenue |  | 875.5 |  |  | 376.2 |  |  | 98.5 |  |  | 1,350.2 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of services (1) |  | 98.6 |  |  | 55.9 |  |  | 34.6 |  |  | 189.1 |
Cost of product sales (1) |  | 188.7 |  |  | 17.1 |  |  | — |  |  | 205.8 |
Cost of instant games (1) |  | — |  |  | 135.8 |  |  | — |  |  | 135.8 |
Selling, general and administrative |  | 145.4 |  |  | 33.5 |  |  | 30.3 |  |  | 209.2 |
Research and development |  | 80.9 |  |  | 3.1 |  |  | 10.9 |  |  | 94.9 |
Employee termination and restructuring |  | 6.9 |  |  | 0.2 |  |  | 1.0 |  |  | 8.1 |
Depreciation and amortization |  | 324.8 |  |  | 41.3 |  |  | 10.5 |  |  | 376.6 |
Segment operating income |  | $ | 30.2 |  |  | $ | 89.3 |  |  | $ | 11.2 |  |  | $ | 130.7 |
Unallocated corporate costs |  |  |  |  |  |  |  | (112.7 | )
Consolidated operating income |  |  |  |  |  |  |  | $ | 18.0 |
Earnings from equity investments |  | $ | 1.7 |  |  | $ | 4.7 |  |  | $ | — |  |  | $ | 6.4 |
(1) Exclusive of D&A. The following table presents a reconciliation of business segment operating income to net loss before income taxes for each period:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2016 |  | 2015 |  | 2016 |  | 2015
Business segment operating income |  | $ | 118.3 |  |  | $ | 55.5 |  |  | $ | 221.2 |  |  | $ | 130.7 |
Unallocated corporate costs |  | (59.2 | ) |  | (55.6 | ) |  | (111.8 | ) |  | (112.7 | )
Consolidated operating income (loss) |  | 59.1 |  |  | (0.1 | ) |  | 109.4 |  |  | 18.0 |
Interest expense |  | (165.3 | ) |  | (166.4 | ) |  | (331.0 | ) |  | (330.7 | )
Earnings from equity investments |  | 8.0 |  |  | 3.3 |  |  | 11.2 |  |  | 6.4 |
Gain on early extinguishment of debt |  | 25.2 |  |  | — |  |  | 25.2 |  |  | — |
Other income (expense), net |  | 1.7 |  |  | (4.3 | ) |  | 2.4 |  |  | (9.9 | )
Net loss before income taxes |  | $ | (71.3 | ) |  | $ | (167.5 | ) |  | $ | (182.8 | ) |  | $ | (316.2 | )
In evaluating financial performance, we focus on operating income (loss) as a segment's measure of profit or loss. The accounting policies of our business segments are the same as those described in our summary of significant accounting policies in Note 1 (Description of the Business and Summary of Significant Accounting Policies) in our 2015 Annual Report on Form 10-K.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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