XML 46 R35.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Business Segments (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2015
Segment Reporting [Abstract] |
Operating Information by Segment | The following tables present revenue, cost of revenue, SG&A, R&D, employee termination and restructuring, goodwill impairments, D&A, operating (loss) income from continuing operations, earnings (loss) from equity investments, total assets and capital expenditures for the years ended (or at) December 31, 2015, 2014 and 2013, respectively, by business segment. Certain unallocated corporate amounts consisted primarily of general and administrative expenses, other income (expense), D&A expense and unallocated assets and capital expenditures.
|  | Year Ended December 31, 2015
|  | Gaming |  | Lottery |  | Interactive |  | Total
Revenue: |  |  |  |  |  |  |  |
Services |  | $ | 956.3 |  |  | $ | 185.5 |  |  | $ | 210.0 |  |  | $ | 1,351.8 |
Product sales |  | 817.3 |  |  | 45.7 |  |  | — |  |  | 863.0 |
Instant games |  | — |  |  | 544.0 |  |  | — |  |  | 544.0 |
Total revenue |  | 1,773.6 |  |  | 775.2 |  |  | 210.0 |  |  | 2,758.8 |
Cost of services (1) |  | 190.1 |  |  | 109.8 |  |  | 72.8 |  |  | 372.7 |
Cost of product sales (1) |  | 370.2 |  |  | 35.3 |  |  | — |  |  | 405.5 |
Cost of instant games (1) |  | — |  |  | 325.9 |  |  | — |  |  | 325.9 |
Selling, general and administrative |  | 285.1 |  |  | 67.0 |  |  | 66.3 |  |  | 418.4 |
Research and development |  | 154.9 |  |  | 6.3 |  |  | 22.7 |  |  | 183.9 |
Employee termination and restructuring |  | 11.2 |  |  | 0.2 |  |  | 1.5 |  |  | 12.9 |
Depreciation and amortization |  | 728.6 |  |  | 95.9 |  |  | 19.6 |  |  | 844.1 |
Goodwill impairments |  | 935.0 |  |  | 67.6 |  |  | — |  |  | 1,002.6 |
Segment operating (loss) income from continuing operations |  | $ | (901.5 | ) |  | $ | 67.2 |  |  | $ | 27.1 |  |  | $ | (807.2 | )
Unallocated corporate costs |  |  |  |  |  |  |  |  |  |  | (217.4 | )
Consolidated operating loss |  |  |  |  |  |  |  |  |  |  | $ | (1,024.6 | )
Earnings from equity investments |  | $ | 3.5 |  |  | $ | 13.4 |  |  | $ | — |  |  | $ | 16.9 |
Assets at December 31, 2015 |  | $ | 6,135.2 |  |  | $ | 1,116.6 |  |  | $ | 211.9 |  |  |  |
Unallocated assets at December 31, 2015 |  |  |  |  |  |  |  |  |  |  | 268.5 |
Consolidated assets at December 31, 2015 |  |  |  |  |  |  |  |  |  |  | $ | 7,732.2 |
Gaming, lottery and interactive capital expenditures |  | $ | 234.8 |  |  | $ | 43.9 |  |  | $ | 6.7 |  |  |  |
Unallocated capital expenditures for the year ended December 31, 2015 |  |  |  |  |  |  |  | 38.2 |
Consolidated capital expenditures for the year ended December 31, 2015 |  |  |  |  |  |  |  | $ | 323.6 |
________________________________________________________________________________________________________________________________
(1) | Exclusive of D&A.
|  | Year Ended December 31, 2014
|  | Gaming |  | Lottery |  | Interactive |  | Total
Revenue: |  |  |  |  |  |  |  |
Services |  | $ | 442.6 |  |  | $ | 201.4 |  |  | $ | 144.5 |  |  | $ | 788.5 |
Product sales |  | 363.8 |  |  | 101.1 |  |  | — |  |  | 464.9 |
Instant games |  | — |  |  | 533.0 |  |  | — |  |  | 533.0 |
Total revenue |  | 806.4 |  |  | 835.5 |  |  | 144.5 |  |  | 1,786.4 |
Cost of services (1) |  | 111.0 |  |  | 120.8 |  |  | 51.9 |  |  | 283.7 |
Cost of product sales (1) |  | 195.5 |  |  | 78.8 |  |  | — |  |  | 274.3 |
Cost of instant games (1) |  | — |  |  | 291.4 |  |  | — |  |  | 291.4 |
Selling, general and administrative |  | 235.3 |  |  | 73.3 |  |  | 57.3 |  |  | 365.9 |
Research and development |  | 98.7 |  |  | 4.6 |  |  | 13.7 |  |  | 117.0 |
Employee termination and restructuring |  | 15.5 |  |  | 3.5 |  |  | 7.1 |  |  | 26.1 |
Depreciation and amortization |  | 318.7 |  |  | 97.1 |  |  | 13.3 |  |  | 429.1 |
Segment operating (loss) income from continuing operations |  | $ | (168.3 | ) |  | $ | 166.0 |  |  | $ | 1.2 |  |  | $ | (1.1 | )
Unallocated corporate costs |  |  |  |  |  |  |  |  | (171.6 | )
Consolidated operating loss |  |  |  |  |  |  |  |  | $ | (172.7 | )
Earnings (loss) from equity investments |  | $ | 3.3 |  |  | $ | (10.9 | ) |  | $ | — |  |  | $ | (7.6 | )
Assets at December 31, 2014 |  | $ | 7,853.0 |  |  | $ | 1,407.2 |  |  | $ | 185.5 |  |  |  |
Unallocated assets at December 31, 2014 |  |  |  |  |  |  |  |  | 275.4 |
Consolidated assets at December 31, 2014 |  |  |  |  |  |  |  |  | $ | 9,721.1 |
Gaming, lottery and interactive capital expenditures |  | $ | 160.5 |  |  | $ | 58.3 |  |  | $ | 5.4 |  |  |  |
Unallocated capital expenditures for the year ended December 31, 2014 |  |  |  |  |  |  |  | 14.1 |
Consolidated capital expenditures for the year ended December 31, 2014 |  |  |  |  |  |  |  | $ | 238.3 |
________________________________________________________________________________________________________________________________
(1) | Exclusive of D&A.
|  | Year Ended December 31, 2013
|  | Gaming |  | Lottery |  | Interactive |  | Total
Revenue: |  |  |  |  |  |  |  |
Services |  | $ | 181.8 |  |  | $ | 203.2 |  |  | $ | 30.0 |  |  | $ | 415.0 |
Product sales |  | 88.7 |  |  | 71.2 |  |  | — |  |  | 159.9 |
Instant games |  | — |  |  | 516.0 |  |  | — |  |  | 516.0 |
Total revenue |  | 270.5 |  |  | 790.4 |  |  | 30.0 |  |  | 1,090.9 |
Cost of services (1) |  | 77.9 |  |  | 113.8 |  |  | 11.4 |  |  | 203.1 |
Cost of product sales (1) |  | 56.4 |  |  | 47.1 |  |  | — |  |  | 103.5 |
Cost of instant games (1) |  | — |  |  | 285.1 |  |  | — |  |  | 285.1 |
Selling, general and administrative |  | 87.1 |  |  | 70.7 |  |  | 10.1 |  |  | 167.9 |
Research and development |  | 17.4 |  |  | 5.5 |  |  | 3.1 |  |  | 26.0 |
Employee termination and restructuring |  | 6.7 |  |  | 5.1 |  |  | 1.9 |  |  | 13.7 |
Depreciation and amortization |  | 103.9 |  |  | 94.5 |  |  | 2.7 |  |  | 201.1 |
Segment operating (loss) income from continuing operations |  | $ | (78.9 | ) |  | $ | 168.6 |  |  | $ | 0.8 |  |  | $ | 90.5 |
Unallocated corporate costs |  |  |  |  |  |  |  |  | (108.8 | )
Consolidated operating loss |  |  |  |  |  |  |  |  | $ | (18.3 | )
(Loss) earnings from equity investments |  | $ | (12.1 | ) |  | $ | 13.6 |  |  | $ | — |  |  | $ | 1.5 |
Assets at December 31, 2013 |  | $ | 2,333.6 |  |  | $ | 1,581.1 |  |  | $ | 84.1 |  |  |  |
Unallocated assets at December 31, 2013 |  |  |  |  |  |  |  |  | 110.8 |
Consolidated assets at December 31, 2013 (2) |  |  |  |  |  |  |  |  | $ | 4,109.6 |
Gaming, lottery and interactive capital expenditures |  | $ | 75.8 |  |  | $ | 79.0 |  |  | $ | 3.2 |  |  |  |
Unallocated capital expenditures for the year ended December 31, 2013 |  |  |  |  |  |  |  | 7.8 |
Consolidated capital expenditures for the year ended December 31, 2013 |  |  |  |  |  |  |  | $ | 165.8 |
________________________________________________________________________________________________________________________________
(1) | Exclusive of D&A.
(2) | Includes the impact of adopting ASU 2015-03, ASU 2015-15, and ASU 2015-17.
Reconciliation of Reportable Segment Operating Income to Income (Loss) Before Income Taxes | The following table presents a reconciliation of business segment operating (loss) income to net loss from continuing operations before income taxes for each period:
|  | Years Ended December 31,
|  | 2015 |  | 2014 |  | 2013
Reported segment operating (loss) income from continuing operations |  | $ | (807.2 | ) |  | $ | (1.1 | ) |  | $ | 90.5 |
Unallocated corporate costs |  | (217.4 | ) |  | (171.6 | ) |  | (108.8 | )
Consolidated operating loss |  | (1,024.6 | ) |  | (172.7 | ) |  | (18.3 | )
Interest expense |  | (664.9 | ) |  | (307.2 | ) |  | (119.5 | )
Earnings (loss) from equity investments |  | 16.9 |  |  | (7.6 | ) |  | 1.5 |
Loss on early extinguishment of debt |  | — |  |  | (25.9 | ) |  | (5.9 | )
Gain on sale of equity interest |  | — |  |  | 14.5 |  |  | — |
Other (expense) income, net |  | (21.6 | ) |  | 4.0 |  |  | (1.1 | )
Net loss from continuing operations before income taxes |  | $ | (1,694.2 | ) |  | $ | (494.9 | ) |  | $ | (143.3 | )
Schedule of the Service and Sales Revenue by Customer Location and Long-Lived Assets by Geographic Segment | The following tables present revenue by customer location and long-lived assets by geographic location:
|  | Years Ended December 31,
|  | 2015 |  | 2014 |  | 2013
Revenue: |  |  |  |  |  |
United States (1) |  | $ | 2,144.0 |  |  | $ | 1,070.1 |  |  | $ | 559.8 |
North America, other than United States |  | 175.0 |  |  | 131.0 |  |  | 74.2 |
United Kingdom |  | 157.5 |  |  | 162.5 |  |  | 157.5 |
Europe, other than the United Kingdom |  | 182.1 |  |  | 283.6 |  |  | 213.2 |
Other |  | 100.2 |  |  | 139.2 |  |  | 86.2 |
Total (2) |  | $ | 2,758.8 |  |  | $ | 1,786.4 |  |  | $ | 1,090.9 |
|  | As of December 31,
|  | 2015 |  | 2014
Property and equipment, net: |  |  |  |
United States |  | $ | 606.4 |  |  | $ | 771.1 |
North America, other than United States |  | 43.4 |  |  | 59.9 |
United Kingdom |  | 76.8 |  |  | 96.6 |
Europe, other than the United Kingdom |  | 28.6 |  |  | 34.2 |
Other |  | 38.8 |  |  | 51.0 |
Total (3) |  | $ | 794.0 |  |  | $ | 1,012.8 |
_____________________________________________________________________________
(1) | Sales to international customers originating from the U.S. were $185.5 million, $58.1 million and $18.5 million for the years ended December 31, 2015, 2014 and 2013, respectively.
(2) | Total revenue from international customers for the years ended December 31, 2015, 2014 and 2013 was $614.8 million, $716.3, million and $531.1 million, respectively.
(3) | Total property and equipment held outside the United States as of December 31, 2015 and 2014 was $187.6 million and $241.7 million, respectively.

X
- Definition Tabular disclosure of all significant reconciling items in the reconciliation of total profit or loss from reportable segments, to the entity's consolidated income before income taxes, extraordinary items, and discontinued operations. + References Reference 1: 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=51669610&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
Name: | us-gaap_ReconciliationOfOperatingProfitLossFromSegmentsToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information concerning material long-lived assets (excluding financial instruments, customer relationships with financial institutions, mortgage and other servicing rights, deferred policy acquisition costs, and deferred taxes assets) located in identified geographic areas and/or the amount of revenue from external customers attributed to that country from which revenue is material. An entity may also provide subtotals of geographic information about groups of countries. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.1) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688 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=51669610&loc=d3e9038-108599 + Details
Name: | us-gaap_ScheduleOfRevenuesFromExternalCustomersAndLongLivedAssetsByGeographicalAreasTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: 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=51669610&loc=d3e8906-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8813-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8736-108599 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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