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Business Segments | 3 Months Ended
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Mar. 31, 2018
Segment Reporting [Abstract] |
Business Segments | Business Segments In connection with the NYX acquisition (see Note 1), in the first quarter of 2018, we reviewed our operating and business segments in light of certain changes in the organizational and operational structure of the Company, including changes in financial information regularly reviewed by management, including our chief operating decision maker (CODM), who is also our Chief Executive Officer. Based on this review, we determined that our Social gaming business, previously included in our Interactive business segment, should be disclosed as a separate business segment and the remaining Interactive business integrated with the acquired NYX business, collectively forming the new Digital business segment. Business segment information for the three months ended March 31, 2017 has been recast to reflect these changes. As a result of the above changes and starting with the first quarter of the 2018 reporting period, we report our operations in four business segments—Gaming, Lottery, Social and Digital—representing our different products and services. A detailed discussion regarding the products and services from which our Gaming and Lottery business segments generally derive their revenue is included in our 2017 10-K Note 2. Our Social business segment provides social gaming services through our own B2C applications. Our Digital business segment provides highly customizable software design, development, licensing, maintenance and support services from a comprehensive suite of technology solutions to enable our customers to operate sports books, including betting markets across both fixed-odds and pari-mutuel betting styles, a distribution platform, full gaming process support services, brand and player management, including SG Universe services, and RMG services to online casino operators through our remote game servers. The products and services from which each reportable segment derives its revenues are further discussed in Note 2. In evaluating financial performance, operating income (loss) is our segment measure of profit or loss. The accounting policies of our business segments are the same as those described within the Notes in our 2017 10-K and in Note 1 and Note 2 (for revenue recognition) in this Quarterly Report on Form 10-Q. The following tables present our segment information:
| Three Months Ended March 31, 2018
| Gaming |  | Lottery |  | Social |  | Digital |  | Corporate(1) |  | Total
Total revenue | $ | 443.0 |  |  | $ | 201.7 |  |  | $ | 97.4 |  |  | $ | 69.7 |  |  | $ | — |  |  | $ | 811.8 |
D&A | 139.4 |  |  | 14.2 |  |  | 6.6 |  |  | 16.0 |  |  | 11.9 |  |  | 188.1 |
Restructuring and other | 1.4 |  |  | 0.8 |  |  | 18.1 |  |  | 5.7 |  |  | 26.2 |  |  | 52.2 |
Operating income (loss) | 72.1 |  |  | 61.1 |  |  | (0.2 | ) |  | (4.5 | ) |  | (79.1 | ) |  | 49.4 |
Interest expense |  |  |  |  |  |  |  |  |  |  | (154.8 | )
Earnings from equity investments |  |  |  |  |  |  |  |  |  |  | 7.3 |
Loss on debt financing transactions |  |  |  |  |  |  |  |  |  |  | (93.2 | )
Loss on remeasurement of debt |  |  |  |  |  |  |  |  |  |  | (1.1 | )
Other expense, net |  |  |  |  |  |  |  |  |  |  | (3.2 | )
Net loss before income taxes |  |  |  |  |  |  |  |  |  |  | (195.6 | )
Assets as of March 31, 2018 | $ | 5,321.3 |  |  | $ | 1,104.3 |  |  | $ | 202.6 |  |  | $ | 918.3 |  |  | $ | 190.7 |  |  | $ | 7,737.2 |
(1) Includes corporate amounts not allocated to the business segments.
| Three Months Ended March 31, 2017
| Gaming |  | Lottery |  | Social |  | Digital |  | Corporate(1) |  | Total
Total revenue | $ | 440.0 |  |  | $ | 189.1 |  |  | $ | 80.2 |  |  | $ | 16.1 |  |  | $ | — |  |  | $ | 725.4 |
D&A | 123.3 |  |  | 13.9 |  |  | 2.6 |  |  | 1.4 |  |  | 23.9 |  |  | 165.1 |
Restructuring and other | 4.2 |  |  | 0.3 |  |  | 0.8 |  |  | — |  |  | 3.9 |  |  | 9.2 |
Operating income (loss) | 77.5 |  |  | 56.1 |  |  | 13.5 |  |  | 3.7 |  |  | (62.8 | ) |  | 88.0 |
Interest expense |  |  |  |  |  |  |  |  |  |  | (159.4 | )
Earnings from equity investments |  |  |  |  |  |  |  |  |  |  | 9.5 |
Loss on debt financing transactions |  |  |  |  |  |  |  |  |  |  | (29.7 | )
Other income, net |  |  |  |  |  |  |  |  |  |  | 7.5 |
Net loss before income taxes |  |  |  |  |  |  |  |  |  |  | (84.1 | )
Assets as of December 31, 2017 | $ | 5,401.6 |  |  | $ | 1,070.6 |  |  | $ | 219.1 |  |  | $ | 61.2 |  |  | $ | 972.8 |  |  | $ | 7,725.3 |
(1) Includes corporate amounts not allocated to the business segments.
The following table presents our recast quarterly selected segment financial data for 2017 and 2016:
| Recast Quarterly Segment Financial Data
| 2017 |  | 2016
| March 31 |  | June 30 |  | September 30 |  | December 31 |  | March 31 |  | June 30 |  | September 30 |  | December 31
Total revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Social | $ | 80.2 |  |  | $ | 91.1 |  |  | $ | 95.1 |  |  | $ | 95.5 |  |  | $ | 60.2 |  |  | $ | 69.1 |  |  | $ | 70.3 |  |  | $ | 74.8 |
Digital | 16.1 |  |  | 15.7 |  |  | 16.3 |  |  | 17.8 |  |  | 12.4 |  |  | 14.3 |  |  | 14.9 |  |  | 16.8 |
Previous Interactive Segment | $ | 96.3 |  |  | $ | 106.8 |  |  | $ | 111.4 |  |  | $ | 113.3 |  |  | $ | 72.6 |  |  | $ | 83.4 |  |  | $ | 85.2 |  |  | $ | 91.6 |
Total operating income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Social | $ | 13.5 |  |  | $ | 17.5 |  |  | $ | 12.2 |  |  | $ | 14.4 |  |  | $ | 11.0 |  |  | $ | 13.4 |  |  | $ | 8.1 |  |  | $ | 11.9 |
Digital | 3.7 |  |  | 1.3 |  |  | 0.7 |  |  | 1.1 |  |  | 0.5 |  |  | 0.3 |  |  | 1.5 |  |  | 1.8 |
Previous Interactive Segment | $ | 17.2 |  |  | $ | 18.8 |  |  | $ | 12.9 |  |  | $ | 15.5 |  |  | $ | 11.5 |  |  | $ | 13.7 |  |  | $ | 9.6 |  |  | $ | 13.7 |

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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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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