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Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries (Tables) | 6 Months Ended
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Jun. 30, 2019
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries [Abstract] |
Supplemental Condensed Consolidating Balance Sheet | SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET As of June 30, 2019
|  | SGC (Parent) |  | SGI (Issuer 1) |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminating Entries |  | Consolidated
Assets |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 235 |  |  | $ | — |  |  | $ | — |  |  | $ | 141 |  |  | $ | (7 | ) |  | $ | 369 |
Restricted cash |  | — |  |  | 1 |  |  | 35 |  |  | 8 |  |  | — |  |  | 44 |
Accounts receivable, net |  | — |  |  | 100 |  |  | 195 |  |  | 321 |  |  | — |  |  | 616 |
Notes receivable, net |  | — |  |  | — |  |  | 104 |  |  | 16 |  |  | — |  |  | 120 |
Inventories |  | — |  |  | 47 |  |  | 99 |  |  | 103 |  |  | (11 | ) |  | 238 |
Prepaid expenses, deposits and other current assets |  | — |  |  | 61 |  |  | 61 |  |  | 75 |  |  | 1 |  |  | 198 |
Property and equipment, net |  | 34 |  |  | 96 |  |  | 231 |  |  | 204 |  |  | (33 | ) |  | 532 |
Operating lease right-of-use asset |  | 1 |  |  | 25 |  |  | 33 |  |  | 54 |  |  | — |  |  | 113 |
Investment in subsidiaries |  | 3,136 |  |  | 1,163 |  |  | 1,427 |  |  | — |  |  | (5,726 | ) |  | — |
Goodwill |  | — |  |  | 240 |  |  | 1,897 |  |  | 1,142 |  |  | — |  |  | 3,279 |
Intangible assets, net |  | 37 |  |  | 34 |  |  | 1,186 |  |  | 403 |  |  | — |  |  | 1,660 |
Intercompany balances |  | — |  |  | 5,868 |  |  | 67 |  |  | — |  |  | (5,935 | ) |  | — |
Software, net |  | 48 |  |  | 36 |  |  | 109 |  |  | 72 |  |  | — |  |  | 265 |
Other assets(2) |  | 95 |  |  | 419 |  |  | 41 |  |  | 376 |  |  | (433 | ) |  | 498 |
Total assets |  | $ | 3,586 |  |  | $ | 8,090 |  |  | $ | 5,485 |  |  | $ | 2,915 |  |  | $ | (12,144 | ) |  | $ | 7,932 |
Liabilities and stockholders’ (deficit) equity |  |  |  |  |  |  |  |  |  |  |  |
Current portion of long-term debt |  | $ | — |  |  | $ | 42 |  |  | $ | 2 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 45 |
Other current liabilities |  | 52 |  |  | 173 |  |  | 242 |  |  | 255 |  |  | (34 | ) |  | 688 |
Long-term debt, excluding current portion |  | — |  |  | 8,793 |  |  | 8 |  |  | 1 |  |  | — |  |  | 8,802 |
Operating lease liabilities |  | 1 |  |  | 21 |  |  | 28 |  |  | 45 |  |  | — |  |  | 95 |
Other long-term liabilities |  | 96 |  |  | 23 |  |  | 605 |  |  | 168 |  |  | (472 | ) |  | 420 |
Intercompany balances |  | 5,649 |  |  | — |  |  | — |  |  | 286 |  |  | (5,935 | ) |  | — |
Total SGC stockholders’ (deficit) equity |  | (2,212 | ) |  | (962 | ) |  | 4,600 |  |  | 2,065 |  |  | (5,703 | ) |  | (2,212 | )
Noncontrolling interest |  | — |  |  | — |  |  | — |  |  | 94 |  |  | — |  |  | 94 |
Total liabilities and total stockholders’ (deficit) equity |  | $ | 3,586 |  |  | $ | 8,090 |  |  | $ | 5,485 |  |  | $ | 2,915 |  |  | $ | (12,144 | ) |  | $ | 7,932 |
(1) Issuer of obligations under the Subordinated Notes, the Unsecured Notes and the Secured Notes. (2) Includes $11 million and $1 million in non-current restricted cash for Guarantor Subsidiaries and Non-Guarantor Subsidiaries, respectively.
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2018
|  | SGC (Parent) |  | SGI (Issuer 1) |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminating Entries |  | Consolidated
Assets |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 74 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 94 |  |  | $ | (1 | ) |  | $ | 168 |
Restricted cash |  | — |  |  | 1 |  |  | 32 |  |  | 6 |  |  | — |  |  | 39 |
Accounts receivable, net |  | — |  |  | 79 |  |  | 205 |  |  | 315 |  |  | — |  |  | 599 |
Notes receivable, net |  | — |  |  | — |  |  | 101 |  |  | 13 |  |  | — |  |  | 114 |
Inventories |  | — |  |  | 40 |  |  | 82 |  |  | 111 |  |  | (17 | ) |  | 216 |
Prepaid expenses, deposits and other current assets |  | 6 |  |  | 63 |  |  | 92 |  |  | 72 |  |  | — |  |  | 233 |
Property and equipment, net |  | 31 |  |  | 112 |  |  | 219 |  |  | 218 |  |  | (33 | ) |  | 547 |
Investment in subsidiaries |  | 2,836 |  |  | 975 |  |  | 1,093 |  |  | — |  |  | (4,904 | ) |  | — |
Goodwill |  | — |  |  | 240 |  |  | 1,897 |  |  | 1,143 |  |  | — |  |  | 3,280 |
Intangible assets, net |  | 43 |  |  | 34 |  |  | 1,291 |  |  | 441 |  |  | — |  |  | 1,809 |
Intercompany balances |  | — |  |  | 6,054 |  |  | — |  |  | — |  |  | (6,054 | ) |  | — |
Software, net |  | 58 |  |  | 39 |  |  | 128 |  |  | 60 |  |  | — |  |  | 285 |
Other assets(2) |  | 110 |  |  | 404 |  |  | 46 |  |  | 308 |  |  | (440 | ) |  | 428 |
Total assets |  | $ | 3,158 |  |  | $ | 8,042 |  |  | $ | 5,186 |  |  | $ | 2,781 |  |  | $ | (11,449 | ) |  | $ | 7,718 |
Liabilities and stockholders’ (deficit) equity |  |  |  |  |  |  |  |  |  |  |  |
Current portion of long-term debt |  | $ | — |  |  | $ | 42 |  |  | $ | — |  |  | $ | 3 |  |  | $ | — |  |  | $ | 45 |
Other current liabilities |  | 64 |  |  | 162 |  |  | 248 |  |  | 254 |  |  | (26 | ) |  | 702 |
Long-term debt, excluding current portion |  | — |  |  | 8,991 |  |  | — |  |  | 1 |  |  | — |  |  | 8,992 |
Other long-term liabilities |  | 106 |  |  | 8 |  |  | 637 |  |  | 172 |  |  | (481 | ) |  | 442 |
Intercompany balances |  | 5,451 |  |  | — |  |  | 49 |  |  | 554 |  |  | (6,054 | ) |  | — |
Total SGC stockholders’ (deficit) equity |  | (2,463 | ) |  | (1,161 | ) |  | 4,252 |  |  | 1,797 |  |  | (4,888 | ) |  | (2,463 | )
Total liabilities and total stockholders’ (deficit) equity |  | $ | 3,158 |  |  | $ | 8,042 |  |  | $ | 5,186 |  |  | $ | 2,781 |  |  | $ | (11,449 | ) |  | $ | 7,718 |
(1) Issuer of obligations under the Subordinated Notes, the Unsecured Notes (other than the 2026 Unsecured Notes, which were not issued until March 2019) and the Secured Notes.
(2) Includes $12 million and $1 million in non-current restricted cash for Guarantor Subsidiaries and Non-Guarantor Subsidiaries, respectively.
Supplemental Condensed Consolidating Statement of Income | SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS Three Months Ended June 30, 2019
|  | SGC (Parent) |  | SGI (Issuer 1) |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminating Entries |  | Consolidated
Revenue |  | $ | — |  |  | $ | 147 |  |  | $ | 358 |  |  | $ | 407 |  |  | $ | (67 | ) |  | $ | 845 |
Cost of services, cost of product sales and cost of instant products(2) |  | — |  |  | 94 |  |  | 108 |  |  | 176 |  |  | (57 | ) |  | 321 |
SG&A |  | 31 |  |  | 9 |  |  | 48 |  |  | 94 |  |  | (8 | ) |  | 174 |
R&D |  | — |  |  | 1 |  |  | 19 |  |  | 26 |  |  | — |  |  | 46 |
D&A |  | 12 |  |  | 13 |  |  | 104 |  |  | 45 |  |  | (4 | ) |  | 170 |
Restructuring and other |  | 1 |  |  | 1 |  |  | 1 |  |  | 3 |  |  | — |  |  | 6 |
Operating (loss) income |  | (44 | ) |  | 29 |  |  | 78 |  |  | 63 |  |  | 2 |  |  | 128 |
Interest expense |  | — |  |  | (147 | ) |  | — |  |  | — |  |  | — |  |  | (147 | )
Loss on debt financing transactions |  | — |  |  | (60 | ) |  | — |  |  | — |  |  | — |  |  | (60 | )
Loss on remeasurement of debt |  | — |  |  | (3 | ) |  | — |  |  | — |  |  | — |  |  | (3 | )
Other income (expense), net |  | 16 |  |  | 131 |  |  | (119 | ) |  | (14 | ) |  | — |  |  | 14 |
Net (loss) income before equity in income of subsidiaries and income taxes |  | (28 | ) |  | (50 | ) |  | (41 | ) |  | 49 |  |  | 2 |  |  | (68 | )
Equity in (loss) income of subsidiaries |  | (30 | ) |  | 2 |  |  | 12 |  |  | — |  |  | 16 |  |  | — |
Income tax (expense) benefit |  | (19 | ) |  | 14 |  |  | 9 |  |  | (11 | ) |  | — |  |  | (7 | )
Net (loss) income |  | (77 | ) |  | (34 | ) |  | (20 | ) |  | 38 |  |  | 18 |  |  | (75 | )
Less: Net income attributable to noncontrolling interest |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
Net (loss) income attributable to SGC |  | $ | (77 | ) |  | $ | (34 | ) |  | $ | (20 | ) |  | $ | 36 |  |  | $ | 18 |  |  | $ | (77 | )
Net (loss) income |  | $ | (77 | ) |  | $ | (34 | ) |  | $ | (20 | ) |  | $ | 38 |  |  | $ | 18 |  |  | $ | (75 | )
Other comprehensive loss |  | (51 | ) |  | (15 | ) |  | (3 | ) |  | (66 | ) |  | 84 |  |  | (51 | )
Total comprehensive loss |  | (128 | ) |  | (49 | ) |  | (23 | ) |  | (28 | ) |  | 102 |  |  | (126 | )
Less: comprehensive income attributable to noncontrolling interest |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
Comprehensive loss attributable to SGC |  | $ | (128 | ) |  | $ | (49 | ) |  | $ | (23 | ) |  | $ | (30 | ) |  | $ | 102 |  |  | $ | (128 | )
(1) Issuer of obligations under the Subordinated Notes, the Unsecured Notes and the Secured Notes. (2) Excludes D&A.
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME Three Months Ended June 30, 2018
|  | SGC (Parent) |  | SGI (Issuer 1) |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminating Entries |  | Consolidated
Revenue |  | $ | — |  |  | $ | 136 |  |  | $ | 405 |  |  | $ | 376 |  |  | $ | (72 | ) |  | $ | 845 |
Cost of services, cost of product sales and cost of instant products (2) |  | — |  |  | 86 |  |  | 132 |  |  | 159 |  |  | (61 | ) |  | 316 |
SG&A |  | 44 |  |  | 9 |  |  | 51 |  |  | 83 |  |  | (13 | ) |  | 174 |
R&D |  | — |  |  | 1 |  |  | 22 |  |  | 26 |  |  | — |  |  | 49 |
D&A |  | 12 |  |  | 7 |  |  | 107 |  |  | 50 |  |  | (3 | ) |  | 173 |
Restructuring and other |  | 30 |  |  | (3 | ) |  | 2 |  |  | 5 |  |  | — |  |  | 34 |
Operating (loss) income |  | (86 | ) |  | 36 |  |  | 91 |  |  | 53 |  |  | 5 |  |  | 99 |
Interest expense |  | — |  |  | (146 | ) |  | — |  |  | — |  |  | — |  |  | (146 | )
Gain on remeasurement of debt |  | — |  |  | 34 |  |  | — |  |  | — |  |  | — |  |  | 34 |
Other income (expense), net |  | 17 |  |  | 132 |  |  | (119 | ) |  | (23 | ) |  | — |  |  | 7 |
Net (loss) income before equity in income of subsidiaries and income taxes |  | (69 | ) |  | 56 |  |  | (28 | ) |  | 30 |  |  | 5 |  |  | (6 | )
Equity in income (loss) of subsidiaries |  | 26 |  |  | 13 |  |  | (17 | ) |  | — |  |  | (22 | ) |  | — |
Income tax benefit (expense) |  | 37 |  |  | (26 | ) |  | (4 | ) |  | (7 | ) |  | — |  |  | — |
Net (loss) income |  | $ | (6 | ) |  | $ | 43 |  |  | $ | (49 | ) |  | $ | 23 |  |  | $ | (17 | ) |  | $ | (6 | )
Other comprehensive (loss) income |  | (83 | ) |  | 30 |  |  | (36 | ) |  | (119 | ) |  | 125 |  |  | (83 | )
Comprehensive (loss) income |  | $ | (89 | ) |  | $ | 73 |  |  | $ | (85 | ) |  | $ | (96 | ) |  | $ | 108 |  |  | $ | (89 | )
(1) Issuer of obligations under the Subordinated Notes, the Unsecured Notes (other than the 2026 Unsecured Notes, which were not issued until March 2019) and the Secured Notes. (2) Excludes D&A.
Supplemental Condensed Consolidating Statement of Cash Flows | SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2019
|  | SGC (Parent) |  | SGI (Issuer 1) |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminating Entries |  | Consolidated
Net cash (used in) provided by operating activities |  | $ | (35 | ) |  | $ | 55 |  |  | $ | 101 |  |  | $ | 147 |  |  | $ | (6 | ) |  | $ | 262 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | (9 | ) |  | (16 | ) |  | (56 | ) |  | (51 | ) |  | — |  |  | (132 | )
Distributions of capital from equity investments |  | — |  |  | — |  |  | — |  |  | 18 |  |  | — |  |  | 18 |
Additions to equity method investments |  | — |  |  | (1 | ) |  | — |  |  | — |  |  | — |  |  | (1 | )
Other, principally change in intercompany investing activities |  | — |  |  | 228 |  |  | (52 | ) |  | — |  |  | (176 | ) |  | — |
Net cash (used in) provided by investing activities |  | (9 | ) |  | 211 |  |  | (108 | ) |  | (33 | ) |  | (176 | ) |  | (115 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Payments of long-term debt, net of proceeds |  | — |  |  | (251 | ) |  | — |  |  | (2 | ) |  | — |  |  | (253 | )
Payments of debt issuance and deferred financing costs |  | — |  |  | (14 | ) |  | — |  |  | (1 | ) |  | — |  |  | (15 | )
Payments on license obligations |  | (13 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (13 | )
Sale of future revenue |  | — |  |  | — |  |  | 11 |  |  | — |  |  | — |  |  | 11 |
Net proceeds from the sale of SciPlay common stock |  | — |  |  | — |  |  | — |  |  | 342 |  |  | — |  |  | 342 |
Payments of deferred SciPlay common stock offering costs |  | — |  |  | — |  |  | — |  |  | (8 | ) |  | — |  |  | (8 | )
Net redemptions of common stock under stock-based compensation plans and other |  | (1 | ) |  | (2 | ) |  | (2 | ) |  | (2 | ) |  | — |  |  | (7 | )
Other, principally change in intercompany financing activities |  | 219 |  |  | — |  |  | — |  |  | (395 | ) |  | 176 |  |  | — |
Net cash provided by (used in) financing activities |  | 205 |  |  | (267 | ) |  | 9 |  |  | (66 | ) |  | 176 |  |  | 57 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Increase (decrease) in cash, cash equivalents and restricted cash |  | 161 |  |  | (1 | ) |  | 2 |  |  | 49 |  |  | (6 | ) |  | 205 |
Cash, cash equivalents and restricted cash, beginning of period |  | 74 |  |  | 2 |  |  | 44 |  |  | 101 |  |  | (1 | ) |  | 220 |
Cash, cash equivalents and restricted cash, end of period |  | $ | 235 |  |  | $ | 1 |  |  | $ | 46 |  |  | $ | 150 |  |  | $ | (7 | ) |  | $ | 425 |
(1) Issuer of obligations under the Subordinated Notes, the Unsecured Notes and the Secured Notes.
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2018
|  | SGC (Parent) |  | SGI (Issuer 1) |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminating Entries |  | Consolidated
Net cash (used in) provided by operating activities |  | $ | (51 | ) |  | $ | (59 | ) |  | $ | 85 |  |  | $ | 164 |  |  | $ | (7 | ) |  | $ | 132 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | (22 | ) |  | (46 | ) |  | (89 | ) |  | (43 | ) |  | — |  |  | (200 | )
Acquisitions of businesses and assets, net of cash acquired |  | — |  |  | — |  |  | (10 | ) |  | (264 | ) |  | — |  |  | (274 | )
Distributions of capital from equity investments |  | — |  |  | — |  |  | — |  |  | 23 |  |  | — |  |  | 23 |
Additions to equity method investments |  | — |  |  | (1 | ) |  | — |  |  | (74 | ) |  | — |  |  | (75 | )
Other, principally change in intercompany investing activities |  | — |  |  | 48 |  |  | — |  |  | — |  |  | (48 | ) |  | — |
Net cash (used in) provided by investing activities |  | (22 | ) |  | 1 |  |  | (99 | ) |  | (358 | ) |  | (48 | ) |  | (526 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Proceeds net of payments on long-term debt |  | — |  |  | 97 |  |  | — |  |  | (4 | ) |  | — |  |  | 93 |
Repayment of assumed NYX debt |  | — |  |  | — |  |  | — |  |  | (288 | ) |  | — |  |  | (288 | )
Payments of debt issuance and deferred financing costs |  | — |  |  | (39 | ) |  | — |  |  | — |  |  | — |  |  | (39 | )
Payments on license obligations |  | (14 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (14 | )
Net redemptions of common stock under stock-based compensation plans and other |  | (19 | ) |  | — |  |  | (2 | ) |  | — |  |  | — |  |  | (21 | )
Other, principally change in intercompany financing activities |  | (581 | ) |  | — |  |  | 15 |  |  | 518 |  |  | 48 |  |  | — |
Net cash (used in) provided by financing activities |  | (614 | ) |  | 58 |  |  | 13 |  |  | 226 |  |  | 48 |  |  | (269 | )
Effect of exchange rate changes on cash, cash equivalents and restricted cash |  | — |  |  | — |  |  | — |  |  | (3 | ) |  | — |  |  | (3 | )
(Decrease) increase in cash, cash equivalents and restricted cash |  | (687 | ) |  | — |  |  | (1 | ) |  | 29 |  |  | (7 | ) |  | (666 | )
Cash, cash equivalents and restricted cash, beginning of period |  | 733 |  |  | — |  |  | 44 |  |  | 60 |  |  | (3 | ) |  | 834 |
Cash, cash equivalents and restricted cash end of period |  | $ | 46 |  |  | $ | — |  |  | $ | 43 |  |  | $ | 89 |  |  | $ | (10 | ) |  | $ | 168 |
(1) Issuer of obligations under the Subordinated Notes, the Unsecured Notes (other than the 2026 Unsecured Notes, which were not issued until March 2019) and the Secured Notes.

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