XML 37 R22.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Description of the Business and Summary of Significant Accounting Policies (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Aggregate Business Acquisitions Completed | The following table summarizes an aggregate disclosure related to business acquisitions completed during the first half of 2017 and is based on the preliminary allocations of the purchase price expected to be finalized by the fourth quarter of 2017, pending completion of the valuation analyses for acquired intangible assets:
| Total Consideration | Cash paid, net of cash acquired | Contingent Consideration 1 | Allocation of purchase price to Intangible assets, net 2 | Weighted average useful life of acquired intangible assets | Excess purchase price allocated to Goodwill
Aggregate total | $ | 57.8 |  | $ | 52.1 |  | $ | 4.9 |  | $ | 46.0 |  | 9.2 | $ | 14.6 |
1 Contingent consideration as determined by fair value and included in the consideration transferred. 2 Intangible assets primarily consist of technology-based and customer relationship intangible assets. The fair value of these intangible assets was determined using a combination of a royalty savings method and the excess earnings method using Level 3 in the hierarchy as established by ASC 820. The discount rates and royalty rates used in the valuation analysis ranged between 9% and 20% and 1% and 16%, respectively.
Summary of Revenue by Type Within Each Business Segment | The following table summarizes our revenues by type within each of our business segments:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
Gaming |  |  |  |  |  |  |
Gaming operations | $ | 178.4 |  |  | $ | 186.0 |  |  | $ | 350.8 |  |  | $ | 370.4 |
Gaming machine sales | 163.3 |  |  | 154.4 |  |  | 319.5 |  |  | 288.9 |
Gaming systems | 67.1 |  |  | 59.5 |  |  | 128.6 |  |  | 119.2 |
Table products | 48.4 |  |  | 42.0 |  |  | 98.3 |  |  | 85.1 |
Total | $ | 457.2 |  |  | $ | 441.9 |  |  | $ | 897.2 |  |  | $ | 863.6 |
Lottery |  |  |  |  |  |  |
Instant products | $ | 151.3 |  |  | $ | 153.7 |  |  | $ | 293.0 |  |  | $ | 291.0 |
Lottery systems | 51.0 |  |  | 50.2 |  |  | 98.4 |  |  | 100.6 |
Total | $ | 202.3 |  |  | $ | 203.9 |  |  | $ | 391.4 |  |  | $ | 391.6 |
Interactive |  |  |  |  |  |  |
Social Gaming - B2C | $ | 91.1 |  |  | $ | 69.1 |  |  | $ | 171.3 |  |  | $ | 129.2 |
Other | 15.7 |  |  | 14.3 |  |  | 31.8 |  |  | 26.8 |
Total | $ | 106.8 |  |  | $ | 83.4 |  |  | $ | 203.1 |  |  | $ | 156.0 |
Summary of Deferred Revenue Activity | The following table summarizes the deferred revenue activity for the reporting period:
| Six Months Ended June 30,
| 2017 |  | 2016
Deferred revenue balance, beginning of period | $ | 67.4 |  |  | $ | 57.8 |
New deferrals | 111.1 |  |  | 145.8 |
Amounts recognized in revenue | (119.3 | ) |  | (143.2 | )
Deferred revenue balance, end of period | $ | 59.2 |  |  | $ | 60.4 |
Schedule of Impact of Adopting Revenue Recognition Guidance | The following table summarizes the anticipated impact to the financial statements based on our assessment completed to date:
Business Segment | Revenue Type | Anticipated Impact
Gaming | Gaming operations Gaming machine sales Gaming systems Table products | Ÿ We anticipate the following impact on the net amount of revenue for WAP jackpot payments, which will no longer be treated as an expense but rather as a reduction to revenue: WAP jackpot expense of $5.3 million and $12.4 million for the three and six months ended June 30, 2017, respectively, and $8.1 million and $16.7 million for the three and six months ended June 30, 2016, respectively, recognized as cost of services. Ÿ We continue to evaluate the impact on timing and amount of revenue. Ÿ We do not anticipate a material impact on timing or amount of revenue. Ÿ We continue to evaluate the impact on timing and amount of revenue. Ÿ We continue to evaluate the impact on timing and amount of revenue. We are currently assessing the adoption impact on our U.K. gaming operations, which includes gaming operations, machine sales and to a lesser extent gaming system revenue streams.
Lottery | Instant products Lottery systems | Ÿ We do not anticipate a material impact on timing or amount of revenue for our PPU instant products arrangements. Ÿ We continue to evaluate the impact on timing and amount of revenue on our participation based instant products arrangements as well as licensing and player loyalty arrangements. Ÿ We continue to evaluate the impact on timing and amount of revenue.
Interactive | All | Ÿ We do not anticipate a material impact on timing or amount of revenue.

X
- Definition Tabular disclosure of the type of arrangements and the corresponding amounts that comprise the current and noncurrent balance of deferred revenue as of the balance sheet date. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 605 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 13.A.4(a).Q1) -URI http://asc.fasb.org/extlink&oid=65893310&loc=d3e214044-122780 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section 45 -Paragraph 8 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=82887183&loc=d3e6935-107765 + Details
Name: | us-gaap_DeferredRevenueByArrangementDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the recognition of revenue arrangements under which the entity does or will perform multiple revenue-generating activities, categorized by type of arrangement. This item includes certain revenue arrangements that include software elements. This item does not include multiple-deliverable arrangements for industries that prepare disclosures under specific requirements (for instance, construction-type and production-type contracts) otherwise provided for in the taxonomy. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 605 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68059916&loc=d3e50766-111635 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 605 -SubTopic 25 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=68059916&loc=SL6750900-111635 + Details
Name: | us-gaap_RevenueRecognitionMultipleDeliverableArrangementsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This table does not include leveraged buyouts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1486-128463 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 + Details
Name: | us-gaap_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22580-107794 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=68064558&loc=d3e765-108305 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22499-107794 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.10-01.(b)(6)) -URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22583-107794 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68064558&loc=d3e725-108305 + Details
Name: | us-gaap_ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration