XML 42 R31.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Selected Quarterly Financial Data, Unaudited | 12 Months Ended
--- | ---
Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract] |
Selected Quarterly Financial Data, Unaudited | Selected Quarterly Financial Data, Unaudited
|  | Quarter Ended 2015
|  | March 31 (a) |  | June 30 (b) |  | September 30 (c) |  | December 31 (d)
Total operating revenues |  | $ | 658.7 |  |  | $ | 691.5 |  |  | $ | 671.6 |  |  | $ | 737.0 |
Total cost of revenues (1) |  | 255.4 |  |  | 275.3 |  |  | 250.0 |  |  | 323.4 |
Selling, general and administrative |  | 145.9 |  |  | 140.9 |  |  | 136.8 |  |  | 144.1 |
Research and development |  | 46.9 |  |  | 48.0 |  |  | 45.9 |  |  | 43.1 |
Employee termination and restructuring |  | 8.2 |  |  | 5.2 |  |  | 5.6 |  |  | 2.9 |
Depreciation and amortization |  | 184.2 |  |  | 222.2 |  |  | 286.5 |  |  | 210.3 |
Goodwill impairments |  | — |  |  | — |  |  | 935.0 |  |  | 67.6 |
Operating income (loss) |  | 18.1 |  |  | (0.1 | ) |  | (988.2 | ) |  | (54.4 | )
Net loss |  | $ | (86.4 | ) |  | $ | (102.2 | ) |  | $ | (1,078.2 | ) |  | $ | (127.5 | )
Basic and diluted net loss per share: |  |  |  |  |  |  |  |
Total basic net loss per share |  | $ | (1.01 | ) |  | $ | (1.19 | ) |  | $ | (12.52 | ) |  | $ | (1.48 | )
Total diluted net loss per share |  | $ | (1.01 | ) |  | $ | (1.19 | ) |  | $ | (12.52 | ) |  | $ | (1.48 | )
Weighted average number of shares used in per share calculations: |  |  |  |  |  |  |  |
Basic shares |  | 85.3 |  |  | 85.9 |  |  | 86.1 |  |  | 86.3 |
Diluted shares |  | 85.3 |  |  | 85.9 |  |  | 86.1 |  |  | 86.3 |
(1) Exclusive of D&A
(a) | Includes accelerated D&A charges of $4.6 million related to long term asset impairments and write-downs.
(b) | Includes inventory write-downs for discontinued product lines of $5.9 million and accelerated D&A charges of $35.1 million related to long-term asset impairments and write-downs, including $25.0 million of trade name assets.
(c) | Includes an impairment charge of $935.0 million to reduce the carrying amount of our SG gaming reporting unit goodwill and accelerated D&A charges of $103.6 million related to long-term asset impairments and write-downs of trade name assets.
(d) | Includes an impairment charge of $67.6 million, which resulted in a tax benefit of $24.9 million, to write-off our U.S. lottery systems reporting unit goodwill, legal contingencies and settlements of $2.5 million, a $35.5 million charge related to other asset impairments and contract cancellation costs included in cost of instant games sales and accelerated D&A charges of $26.4 million related to long-term asset impairments and write-downs.
As previously disclosed in Note 9 to our consolidated financial statements for the three and nine month interim periods ended September 30, 2015, we identified indicators of potential goodwill impairment at our SG gaming reporting unit and performed a preliminary quantitative two-step goodwill impairment test required in accordance with ASC 350. As the step one analysis indicated an impairment of the goodwill of the SG gaming reporting unit, we then proceeded to perform a step two impairment analysis to determine the amount of goodwill impairment, if any, to be recorded. As of November 9, 2015, the filing date of our Quarterly Report on Form 10-Q for the three and nine month interim periods ended September 30, 2015, we had not completed our step two analysis due to its inherent complexity. However, based on the work performed through the date of that filing, we recorded a $535.0 million non-cash goodwill impairment charge with no tax benefit to reduce the historical carrying amount of our SG gaming reporting unit goodwill to its implied fair value, which impairment was reflected in Goodwill impairment in our Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2015. At the time of filing, we believed that the preliminary estimate of the impairment charge was reasonable and represented our current good faith estimate of the amount of the impairment charge based on our analysis to such date. As previously disclosed, our fair value estimates were based on assumptions that were subject to inherent uncertainty and there could be no assurances that no material adjustments to the preliminary estimates would be required as the step two analysis was finalized. Subsequent to filing our Quarterly Report on Form 10-Q, we became aware of an error in our step two analysis. Specifically, in our preliminary step two analysis, we included certain net deferred tax liabilities in the hypothetical purchase price allocation that should not have been included. After removing the net deferred tax liabilities from the hypothetical purchase price allocation, the implied fair value of goodwill decreased by $400.0 million, resulting in a revised total impairment charge of $935.0 million. Accordingly, we have revised the unaudited selected quarterly financial data for the quarter ended September 30, 2015 above to reflect this adjustment. The following tables show the impact of the adjustment on the Company’s previously reported goodwill impairment, operating loss, net loss, comprehensive loss, basic and diluted net loss per share, goodwill, total assets, stockholders’ deficit and total liabilities and stockholders’ (deficit) equity (in millions except per share amounts).
| Three Months Ended September 30, 2015 |  | Nine Months Ended September 30, 2015
| Previously Reported |  | Adjustment |  | As Revised |  | Previously Reported |  | Adjustment |  | As Revised
Goodwill impairment | $ | 535.0 |  |  | $ | 400.0 |  |  | $ | 935.0 |  |  | $ | 535.0 |  |  | $ | 400.0 |  |  | $ | 935.0 |
Operating loss | 588.2 |  |  | 400.0 |  |  | 988.2 |  |  | 570.2 |  |  | 400.0 |  |  | 970.2 |
Net loss | 678.2 |  |  | 400.0 |  |  | 1,078.2 |  |  | 866.8 |  |  | 400.0 |  |  | 1,266.8 |
Comprehensive loss | 727.2 |  |  | 400.0 |  |  | 1,127.2 |  |  | 1,002.9 |  |  | 400.0 |  |  | 1,402.9 |
Basic net loss per share | 7.88 |  |  | 4.64 |  |  | 12.52 |  |  | 10.10 |  |  | 4.66 |  |  | 14.76 |
Diluted net loss per share | 7.88 |  |  | 4.64 |  |  | 12.52 |  |  | 10.10 |  |  | 4.66 |  |  | 14.76 |
| As of September 30, 2015
| Previously Reported |  | Adjustment |  | As Revised
Goodwill | $ | 3,485.2 |  |  | $ | (400.0 | ) |  | $ | 3,085.2 |
Total assets | 8,615.1 |  |  | (400.0 | ) |  | 8,215.1 |
Total stockholder's deficit | (980.8 | ) |  | (400.0 | ) |  | (1,380.8 | )
Total liabilities and stockholders’ (deficit) equity | 8,615.1 |  |  | (400.0 | ) |  | 8,215.1 |
The adjustment had no effect on previously reported consolidated revenues or cash flows of the Company. In accordance with the relevant guidance in ASC 250, we evaluated the materiality of the error from a qualitative and quantitative perspective and concluded it was not material to previous interim period financial statements and does not affect the trend of financial results.
|  | Quarter Ended 2014
|  | March 31 (a) |  | June 30 (b) |  | September 30 (c) |  | December 31 (d)
Total operating revenues |  | $ | 388.1 |  |  | $ | 416.9 |  |  | $ | 415.6 |  |  | $ | 565.8 |
Total cost of revenues (1) |  | 182.8 |  |  | 192.4 |  |  | 199.2 |  |  | 275.0 |
Selling, general and administrative |  | 91.8 |  |  | 95.2 |  |  | 95.6 |  |  | 225.1 |
Research and development |  | 25.9 |  |  | 24.8 |  |  | 26.3 |  |  | 40.0 |
Employee termination and restructuring |  | 5.6 |  |  | 4.9 |  |  | 1.9 |  |  | 18.3 |
Depreciation and amortization |  | 94.1 |  |  | 96.0 |  |  | 100.4 |  |  | 163.8 |
Operating (loss) income |  | (12.1 | ) |  | 3.6 |  |  | (7.8 | ) |  | (156.4 | )
Net loss |  | $ | (45.0 | ) |  | $ | (72.4 | ) |  | $ | (69.8 | ) |  | $ | (47.1 | )
Basic and diluted net loss per share: |  |  |  |  |  |  |  |
Total basic net loss per share |  | $ | (0.53 | ) |  | $ | (0.86 | ) |  | $ | (0.82 | ) |  | $ | (0.55 | )
Total diluted net loss per share |  | $ | (0.53 | ) |  | $ | (0.86 | ) |  | $ | (0.82 | ) |  | $ | (0.55 | )
Weighted average number of shares used in per share calculations: |  |  |  |  |  |  |  |
Basic shares |  | 84.3 |  |  | 84.4 |  |  | 84.7 |  |  | 84.9 |
Diluted shares |  | 84.3 |  |  | 84.4 |  |  | 84.7 |  |  | 84.9 |
(1) Exclusive of D&A.
(a) | Includes $14.5 million gain for the sale of our 20.0% equity interest in Sportech.
(b) | Includes $25.9 million loss on extinguishment of debt primarily related to the tender and redemption premiums and the write-off of deferred financing costs in connection with the purchase and redemption of our 2019 Notes. Also includes $8.0 million charge we recorded related to our share of an estimated net shortfall payment accrued by Northstar Illinois.
(c) | Includes $19.7 million non-cash impairment charge we recorded to write down our Northstar Illinois equity investment.
(d) | Reflects operating results of Bally from the acquisition date to December 31, 2014 including $151.6 million of revenue, $52.9 million of costs of services and product sales, $81.2 million of SG&A, $13.0 million of R&D, $3.9 million of employee termination and restructuring costs, and $36.9 million of D&A. Results from the three months ended December 31, 2014 also included an additional $13.6 million of employee termination and restructuring costs which are described in Note 4 (Employee Termination and Restructuring Plans), $6.2 million of impairment charges associated with the MMC game, $5.2 million of impairment charges related to inventory obsolescence, $4.0 million write-down of certain receivables from international customers and a $3.1 million charge in earnings (loss) from equity investments related to the additional shortfall payment booked by the Northstar Illinois joint venture for the lottery's fiscal year ended June 30, 2014.

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

X
- Definition The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. + References Reference 1: 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=51655806&loc=d3e765-108305 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a)-(j) -URI http://asc.fasb.org/extlink&oid=51825399&loc=d3e1280-108306 Reference 3: 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=51655806&loc=d3e725-108305 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 6 -Section G -Subsection 1 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 302 -Paragraph a + Details
Name: | us-gaap_QuarterlyFinancialInformationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration