Everi (EVRI) 10-Q 8 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 01, 2017
Document and Entity Information
Entity Registrant Name	Everi Holdings Inc.
Entity Central Index Key	1,318,568
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		66,785,075
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues	$ 242,230	$ 214,000	$ 479,767	$ 419,769
Costs and expenses
Operating expenses	28,779	30,733	57,772	60,738
Research and development	4,618	4,671	9,161	10,040
Depreciation	11,396	12,470	22,226	24,805
Amortization	17,439	23,600	34,764	46,783
Total costs and expenses	220,938	207,940	435,872	409,925
Operating income	21,292	6,060	43,895	9,844
Other expenses
Interest expense, net of interest income	23,881	24,742	48,938	49,734
Loss on extinguishment of debt	14,615		14,615
Total other expenses	38,496	24,742	63,553	49,734
Loss before income tax	(17,204)	(18,682)	(19,658)	(39,890)
Income tax provision (benefit)	1,853	(7,886)	2,907	(15,942)
Net loss	(19,057)	(10,796)	(22,565)	(23,948)
Foreign currency translation	836	(435)	1,108	(920)
Comprehensive loss	$ (18,221)	$ (11,231)	$ (21,457)	$ (24,868)
Loss per share
Basic (in dollars per share)	$ (0.29)	$ (0.16)	$ (0.34)	$ (0.36)
Diluted (in dollars per share)	$ (0.29)	$ (0.16)	$ (0.34)	$ (0.36)
Weighted average common shares outstanding
Basic (in shares)	66,350	66,041	66,221	66,038
Diluted (in shares)	66,350	66,041	66,221	66,038
Games
Revenues	$ 55,104	$ 54,264	$ 110,380	$ 102,442
Costs and expenses
Cost of revenue (exclusive of depreciation and amortization)	13,239	12,968	25,683	21,404
Operating income	2,722	(7,210)	7,513	(10,456)
Payments
Revenues	187,126	159,736	369,387	317,327
Costs and expenses
Cost of revenue (exclusive of depreciation and amortization)	145,467	123,498	286,266	246,155
Operating income	$ 18,570	$ 13,270	$ 36,382	$ 20,300

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 148,633	$ 119,051
Settlement receivables	47,329	128,821
Trade and other receivables, net of allowances for doubtful accounts of $5,158 and $4,701 at June 30, 2017 and December 31, 2016, respectively	45,423	56,651
Inventory	21,263	19,068
Prepaid expenses and other assets	20,495	18,048
Total current assets	283,143	341,639
Non-current assets
Property, equipment and leased assets, net	103,858	98,439
Goodwill	640,567	640,546
Other intangible assets, net	299,148	317,997
Other receivables	2,748	2,020
Other assets	7,934	7,522
Total non-current assets	1,054,255	1,066,524
Total assets	1,337,398	1,408,163
Current Liabilities
Settlement liabilities	145,702	239,123
Accounts payable and accrued expenses	112,811	94,391
Current portion of long-term debt	8,200	10,000
Total current liabilities	266,713	343,514
Non-current liabilities
Deferred tax liability	60,176	57,611
Long-term debt, less current portion	1,131,473	1,111,880
Other accrued expenses and liabilities	2,955	2,951
Total non-current liabilities	1,194,604	1,172,442
Total liabilities	1,461,317	1,515,956
Commitments and contingencies (Note 12)
Stockholders' deficit)
Common stock, $0.001 par value, 500,000 shares authorized and 91,538 and 90,952 shares issued at June 30, 2017 and December 31, 2016, respectively	92	91
Additional paid-in capital	270,083	264,755
Accumulated deficit	(216,864)	(194,299)
Accumulated other comprehensive loss	(988)	(2,109)
Treasury stock, at cost, 24,870 and 24,867 shares at June 30, 2017 and December 31, 2016, respectively	(176,242)	(176,231)
Total stockholders' deficit	(123,919)	(107,793)
Total liabilities and stockholders' deficit	$ 1,337,398	$ 1,408,163

CONDENSED CONSOLIDATED BALANCE4

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
CONDENSED CONSOLIDATED BALANCE SHEETS
Allowances for doubtful accounts	$ 5,158	$ 4,701
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	91,538,345	90,952,185
Convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized	50,000,000	50,000,000
Convertible preferred stock, shares outstanding	0	0
Treasury stock, shares	24,870,000	24,867,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities
Net loss	$ (22,565)	$ (23,948)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization	56,990	71,588
Amortization of financing costs	3,186	3,349
Loss on sale or disposal of assets	1,399	1,688
Accretion of contract rights	3,909	4,339
Provision for bad debts	5,170	4,955
Write-down of assets		4,289
Reserve for obsolescence	266	667
Loss on extinguishment of debt	14,615
Stock-based compensation	3,480	2,768
Changes in operating assets and liabilities:
Settlement receivables	81,590	18,030
Trade and other receivables	5,283	1,808
Inventory	(2,890)	1,502
Prepaid and other assets	(2,055)	2,617
Deferred income taxes	2,565	(16,784)
Settlement liabilities	(93,479)	(38,500)
Accounts payable and accrued expenses	16,530	18,044
Net cash provided by operating activities	73,994	56,412
Cash flows from investing activities
Capital expenditures	(43,696)	(46,509)
Proceeds from sale of fixed assets	2	4,608
Placement fee agreements	(3,044)	(11,187)
Changes in restricted cash and cash equivalents	(81)	54
Net cash used in investing activities	(46,819)	(53,034)
Cash flows from financing activities
Repayments of prior credit facility	(465,600)	(19,400)
Repayments of secured notes	(335,000)
Proceeds from current credit facility	820,000
Debt issuance costs and discounts	(19,663)	(480)
Proceeds from exercise of stock options	1,799
Purchase of treasury stock	(11)	(13)
Net cash used in financing activities	1,525	(19,893)
Effect of exchange rates on cash	882	(411)
Cash and cash equivalents
Net (decrease) increase for the period	29,582	(16,926)
Balance, beginning of the period	119,051	102,030
Balance, end of the period	148,633	85,104
Supplemental cash disclosures
Cash paid for interest	29,485	23,603
Cash paid for income tax	669	622
Cash refunded for income tax	200	83
Supplemental non-cash disclosures
Accrued and unpaid capital expenditures	3,822	2,457
Transfer of leased gaming equipment to inventory	$ 4,237	$ 3,879

BUSINESS

BUSINESS	6 Months Ended
	Jun. 30, 2017
BUSINESS
BUSINESS	1. BUSINESS Everi Holdings Inc. (formerly known as Global Cash Access Holdings, Inc.) (“Everi Holdings,” “Holdings” or “Everi”) is a holding company, the assets of which are the issued and outstanding shares of capital stock of each of Everi Games Holding Inc. (formerly known as Multimedia Games Holding Company, Inc.) (“Everi Games Holding”), which owns all of the issued and outstanding shares of capital stock of Everi Games Inc. (formerly known as Multimedia Games, Inc.) (“Everi Games” or “Games”) and Everi Payments Inc. (formerly known as Global Cash Access, Inc.) (“Everi Payments” or “Payments”). Unless otherwise indicated, the terms the “Company,” “we,” “us” and “our” refer to Holdings together with its consolidated subsidiaries. Everi is dedicated to providing video and mechanical reel gaming content and technology solutions, integrated gaming payments solutions and compliance and efficiency software. Everi Games provides: (a) comprehensive content, electronic gaming units and systems for Native American and commercial casinos, including both Wide-Area Progressive systems and the award winning TournEvent® slot tournament solution; and (b) the central determinant system for the video lottery terminals installed in the State of New York. Everi Payments provides: (a) access to cash at gaming facilities via Automated Teller Machine (“ATM”) cash withdrawals, credit card cash access transactions, point of sale (“POS”) debit card transactions, and check verification and warranty services; (b) fully integrated gaming industry kiosks that provide cash access and related services; (c) products and services that improve credit decision making, automate cashier operations and enhance patron marketing activities for gaming establishments; (d) compliance, audit and data solutions; and (e) online payment processing solutions for gaming operators in states that offer intrastate, Internet-based gaming and lottery activities.

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Our unaudited Condensed Consolidated Financial Statements included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Some of the information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to such rules and regulations, although we believe the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary for a fair presentation of results for the interim periods have been made. The results for the three and six months ended June 30, 2017 are not necessarily indicative of results to be expected for the full fiscal year. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016. There have been no changes to our basis of presentation and significant accounting policies since the most recent filing of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016. Fair Values of Financial Instruments The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time, based upon relevant market information about the financial instrument. The carrying amount of cash and cash equivalents, settlement receivables, trade receivables, other receivables, settlement liabilities, accounts payable and accrued expenses approximates fair value due to the short-term maturities of these instruments. The fair value of our borrowings are estimated based on various inputs to determine a market price, such as: market demand and supply, size of tranche, maturity and similar instruments trading in more active markets. Level of Fair Value Outstanding June 30, 2017 Term loan 2 $ 827,421 $ 820,000 Senior unsecured notes 1 $ 384,125 $ 350,000 December 31, 2016 Term loan 1 $ 451,632 $ 465,600 Senior secured notes 3 $ 324,950 $ 335,000 Senior unsecured notes 1 $ 350,000 $ 350,000 The new term loan facility was reported at fair value using a Level 2 input as there were quoted prices in markets that were not considered active as of June 30, 2017. The senior unsecured notes were reported at fair value using a Level 1 input as there were quoted prices in markets that were considered active as of June 30, 2017. The term loan was reported at fair value using a Level 1 input as there were quoted prices in markets that were considered active as of December 31, 2016. The senior secured notes were reported at fair value using a Level 3 input as there was no market activity or observable inputs as of December 31, 2016. The senior unsecured notes were reported at fair value using a Level 1 input as there were quoted prices in markets that were considered active as of December 31, 2016. Reclassification of Prior Year Balances Reclassifications were made to the prior-period financial statements to conform to the current period presentation. Recent Accounting Guidance Recently Adopted Accounting Guidance In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04, which provides updated guidance on the goodwill impairment test and the method by which an entity recognizes an impairment charge. These amendments eliminate Step 2 from the current goodwill impairment process and require that an entity recognize an impairment charge equal to the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Additionally, a company should also take into consideration income tax effects from tax deductible goodwill on the carrying amount of a reporting unit when recording an impairment loss. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This guidance will be applied using a prospective approach. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We adopted this guidance in the current period. As no indicators of impairment were identified for our goodwill during the three months ended June 30, 2017, this ASU did not impact our Condensed Consolidated Financial Statements and disclosures included within Notes to Unaudited Condensed Consolidated Financial Statements. In March 2016, the FASB issued ASU No. 2016-09, which simplifies several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, statutory tax withholding requirements and classification on the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. This guidance will be applied either prospectively, retrospectively or using a modified retrospective transition method, depending on the area covered in this update. Early adoption is permitted. We adopted this guidance in the current period on a prospective basis. As of June 30, 2017, the adoption of ASU No. 2016-09 has not impacted our Condensed Consolidated Financial Statements. With respect to forfeitures, the Company will continue to estimate the number of awards expected to be forfeited in accordance with our existing accounting policy. In addition, our Condensed Consolidated Statements of Cash Flows present excess tax benefits as operating activities in the current period, as the prior period was not adjusted. In July 2015, the FASB issued ASU No. 2015-11, which provides guidance on the measurement of inventory value. The amendments require an entity to measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory measured using last-in, first-out (“LIFO”) or the retail inventory method. The amendments do not apply to inventory that is measured using LIFO or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (“FIFO”) or average cost. The pronouncement is effective for annual periods beginning after December 15, 2016, and interim periods within those fiscal years, and early adoption is permitted. We adopted this guidance in the current period. This ASU did not have a material impact on our Condensed Consolidated Financial Statements and disclosures included within the Notes to Unaudited Condensed Consolidated Financial Statements. Recent Accounting Guidance Not Yet Adopted In May 2017, the FASB issued ASU No. 2017-09 to clarify which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. An entity is required to account for the effects of a modification unless all of the following conditions are met: (i) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or value using an alternative measurement method) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification; (ii) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (iii) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted in the first period of the year this guidance is adopted. We are currently evaluating the impact of adopting this guidance on our Condensed Consolidated Financial Statements and disclosures included within Notes to Unaudited Condensed Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-01, which clarifies the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance will be applied using a prospective approach as of the beginning of the first period of adoption. Early adoption is permitted for acquisitions, or disposals that occur before the issuance date or effectiveness date of the amendments when the transaction has not been reported in financial statements that have been issued or made available for issuance. We are currently evaluating the impact of adopting this guidance on our Condensed Consolidated Financial Statements and disclosures included within Notes to Unaudited Condensed Consolidated Financial Statements. In October 2016, the FASB issued ASU No. 2016-18, which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments do not provide a definition of restricted cash or restricted cash equivalents. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance will be applied using a retrospective approach to each period presented. Early adoption is permitted and adoption in an interim period should reflect adjustments as of the beginning of the fiscal year that includes that interim period. We are currently evaluating the impact of adopting this guidance on our Condensed Consolidated Financial Statements and disclosures included within Notes to Unaudited Condensed Consolidated Financial Statements. In October 2016, the FASB issued ASU No. 2016-16, which provides updated guidance on the recognition of the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs, and this eliminates the exception for an intra-entity transfer of such assets. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance will be applied using a modified retrospective approach through a cumulative-effective adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted during the first interim period of the year this guidance is adopted. We are currently evaluating the impact of adopting this guidance on our Condensed Consolidated Financial Statements and disclosures included within Notes to Unaudited Condensed Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, which provides updated guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance will be applied using a retrospective approach. If it is impracticable to apply the amendments retrospectively for some of the issues within this ASU, the amendments for those issues would be applied prospectively as of the earliest date practicable. Early adoption is permitted including adoption in an interim period. We are currently evaluating the impact of adopting this guidance on our Condensed Consolidated Financial Statements and disclosures included within Notes to Unaudited Condensed Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, which provides updated guidance on credit losses for financial assets measured at amortized cost basis and available-for sale debt securities. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This guidance will be applied using a modified retrospective approach for the cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective and using a prospective approach for debt securities for which any other-than-temporary impairment had been recognized before the effective date. Early adoption is permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the impact of adopting this guidance on our Condensed Consolidated Financial Statements and disclosures included within Notes to Unaudited Condensed Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, which provides guidance on the accounting treatment of leases. The ASU establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years and early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While we are currently assessing the impact of this ASU on our Condensed Consolidated Financial Statements, we expect the primary impact to our consolidated financial position upon adoption will be the recognition, on a discounted basis, of our minimum commitments under noncancelable operating leases on our Condensed Consolidated Balance Sheets, which will result in the recording of right of use assets and lease obligations and are currently discussed in “Note 12 — Commitments and Contingencies.” In May 2014, the FASB issued ASU No. 2014-09, which creates FASB Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers” and supersedes ASC Topic 605, “Revenue Recognition”. The guidance replaces industry-specific guidance and establishes a single five-step model to identify and recognize revenue. The core principle of the guidance is that an entity should recognize revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires the entity to disclose further quantitative and qualitative information regarding the nature and amount of revenues arising from contracts with customers, as well as other information about the significant judgments and estimates used in recognizing revenues from contracts with customers. The guidance in ASU 2014-09 was further updated by ASU 2016-08 in March 2016, which provides clarification on the implementation of the principal versus agent considerations in ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, which provides clarification on the implementation of performance obligations and licensing in ASU 2014-09. In May 2016, the FASB issued ASU 2016-11, which amends guidance provided in two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force meeting over various topics relating to ASU 606. In May 2016, the FASB issued ASU 2016-12, which clarified various topics in ASU 606. In December 2016, the FASB issued ASU 2016-20, which clarified additional topics in ASU 606. This guidance was originally effective for interim and annual reporting periods beginning after December 15, 2016. However, in August 2015, the FASB issued ASU No. 2015-14, which extended the effective date to interim and annual periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2015, including interim reporting periods within that reporting period. This guidance may be adopted retrospectively or under a modified retrospective method where the cumulative effect is recognized at the date of initial application. We have performed a review of the requirements of the standard and identified our major revenue streams and the anticipated impact to each of them: Major Revenue Stream Preliminary Expected Impact Upon Adoption Games Segment: Game Sales We expect revenue recognition to be consistent with our current practices, however, there may be some differences as we continue to evaluate the implications. Game Operations We expect revenue recognition to be consistent with our current practices, however, with respect to our Wide- Area Progressive, or WAP, offering(s), for which we initiated this year, we will be required to net the direct costs with Games revenues as opposed to our existing practice of recording those amounts to Games cost of revenues. WAP jackpot expense was approximately $0.1 million for the three and six months ended June 30, 2017. Payments Segment: Cash Advance, ATM, Check Services and Central Credit We expect revenue recognition to be consistent with our current practices, however, there may be some differences as we continue to evaluate the implications. If we do encounter changes to the Kiosk Sales and Services and Compliance Sales and Services offerings, there may be some level of impact to these other Payments related revenue streams as we continue to evaluate the implications. Kiosk Sales and Services We expect to encounter some level of change to our revenue recognition practices for these revenue streams under the new guidance, however, the amounts are not anticipated to be material as we continue to evaluate the implications. Compliance Sales and Services We expect to encounter some level of change to our revenue recognition practices for these revenue streams under the new guidance, however, the amounts are not anticipated to be material as we continue to evaluate the implications. Based on reviews performed thus far, we do not expect our Games or Payments revenues to be materially impacted by the implementation of this guidance. As we continue to take the necessary measures of preparedness in connection with the adoption of the new revenue recognition standard, we continue to do the following: · Evaluate our revenue streams to determine the extent, if any, of the changes to the timing and amount of revenue recorded in each reporting period. · Review our existing accounting policies, procedures and internal controls to further determine the impact of the new standard on our Condensed Consolidated Financial Statements and disclosures included within Notes to Unaudited Condensed Consolidated Financial Statements. · Prepare the enhanced disclosures and updates to our revenue recognition policies to identify performance obligations to customers and that will require significant judgment in both measurement and recognition. · Review in detail our sales contract terms and conditions to determine the necessary adjustments, if any. · Monitor the activity of the FASB and the transition resource group as it relates to specific interpretive guidance that may impact us. We may identify other impacts from the implementation of this guidance as we continue our assessment. We expect to adopt this guidance using the retrospective method beginning in the first quarter of 2018.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	6 Months Ended
	Jun. 30, 2017
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS	3. BUSINESS COMBINATIONS We account for business combinations in accordance with ASC 805, which requires that the identifiable assets acquired and liabilities assumed be recorded at their estimated fair values on the acquisition date separately from goodwill, which is the excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities. We include the results of operations of an acquired business as of the acquisition date. We had no material acquisitions for the three and six months ended June 30, 2017 and 2016.

FUNDING AGREEMENTS

FUNDING AGREEMENTS	6 Months Ended
	Jun. 30, 2017
FUNDING AGREEMENTS
FUNDING AGREEMENTS	4. FUNDING AGREEMENTS Contract Cash Solutions Agreement Our Contract Cash Solutions Agreement with Wells Fargo Bank, N.A. (“Wells Fargo”) allows us to use funds owned by Wells Fargo to provide the currency needed for normal operating requirements for our ATMs. For the use of these funds, we pay Wells Fargo a cash usage fee on the average daily balance of funds utilized multiplied by a contractually defined cash usage rate. These cash usage fees, reflected as interest expense within the Condensed Consolidated Statements of Loss and Comprehensive Loss, were $1.2 million and $2.4 million for the three and six months ended June 30, 2017, respectively, and $0.7 million and $1.6 million for the three and six months ended June 30, 2016, respectively. We are exposed to interest rate risk to the extent that the applicable London Interbank Offered Rate (“LIBOR”) increases. Under this agreement, all currency supplied by Wells Fargo remains the sole property of Wells Fargo at all times until it is dispensed, at which time Wells Fargo obtains an interest in the corresponding settlement receivable which is recorded on a net basis. As these funds are not our assets, supplied cash is not reflected on the Condensed Consolidated Balance Sheets. The outstanding balances of ATM cash utilized by us from Wells Fargo were $259.2 million and $285.4 million as of June 30, 2017 and December 31, 2016, respectively. The Contract Cash Solutions Agreement, as amended, provides us with cash in the maximum amount of $425.0 million during the term of the agreement, which expires on June 30, 2019. We are responsible for any losses of cash in the ATMs under this agreement, and we self‑insure for this risk. We incurred no material losses related to this self‑insurance for the three and six months ended June 30, 2017 and 2016. Site-Funded ATMs We operate ATMs at certain customer gaming establishments where the gaming establishment provides the cash required for the ATM operational needs. We are required to reimburse the customer for the amount of cash dispensed from these Site-Funded ATMs. The Site-Funded ATM liability included within settlement liabilities in the accompanying Condensed Consolidated Balance Sheets was $106.3 million and $151.0 million as of June 30, 2017 and December 31, 2016, respectively. Prefunded Cash Access Agreements Due to certain regulatory requirements, some international gaming establishments require prefunding of cash to cover all outstanding settlement amounts in order for us to provide cash access services to their properties. We enter into agreements with these operators for which we supply our cash access services for their properties. Under these agreements, we maintain sole discretion to either continue or cease operations as well as discretion over the amounts prefunded to the properties and may request amounts to be refunded to us, with appropriate notice to the operator, at any time. The initial prefunded amounts and subsequent amounts from the settlement of transactions are deposited into a bank account that is to be used exclusively for cash access services, and we maintain the right to monitor all transaction activity in that account. The total amount of prefunded cash outstanding was approximately $8.4 million and $8.5 million at June 30, 2017 and December 31, 2016, respectively, and is included in prepaid expenses and other assets on our Condensed Consolidated Balance Sheets.

TRADE AND OTHER RECEIVABLES

TRADE AND OTHER RECEIVABLES	6 Months Ended
	Jun. 30, 2017
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES	5. TRADE AND OTHER RECEIVABLES Trade and loans receivables represent short-term credit granted to customers as well as long-term loans receivable on our games, fully integrated kiosks and compliance products. Trade and loans receivables generally do not require collateral. The balance of trade and loans receivables consists of outstanding balances owed to us by gaming establishments and casino patrons. Other receivables include income taxes receivables and other miscellaneous receivables. The balance of trade and other receivables consisted of the following (in thousands): At June 30, At December 31, 2017 2016 Trade and other receivables, net Games trade and loans receivables $ 36,520 $ 44,410 Payments trade and loans receivables 10,563 12,337 Other receivables 1,088 1,924 Total trade and other receivables, net $ 48,171 $ 58,671 Less: non-current portion of receivables 2,748 2,020 Total trade and other receivables, current portion $ 45,423 $ 56,651 At least quarterly, we evaluate the collectability of the outstanding balances and establish a reserve for the face amount of the expected losses on our receivables. The allowance for doubtful accounts for trade receivables includes reserves for both Games and Payments receivables that totaled $5.2 million and $4.7 million as of June 30, 2017 and December 31, 2016, respectively. The provision for doubtful accounts is generally included within operating expenses in the Condensed Consolidated Statements of Loss and Comprehensive Loss. We also have a provision for doubtful accounts specifically associated with our outstanding check warranty receivables, which is included within Payments cost of revenues (exclusive of depreciation and amortization) in the Condensed Consolidated Statements of Loss and Comprehensive Loss. The outstanding balances of the check warranty and general reserves were $2.9 million and $2.3 million, respectively, as of June 30, 2017 and $2.7 million and $2.0 million, respectively, as of December 31, 2016.

PREPAID AND OTHER ASSETS

PREPAID AND OTHER ASSETS	6 Months Ended
	Jun. 30, 2017
PREPAID AND OTHER ASSETS
PREPAID AND OTHER ASSETS	6. PREPAID AND OTHER ASSETS Prepaid and other assets include the balance of prepaid expenses, deposits, debt issuance costs on our Revolving Credit Facility (defined herein), restricted cash and other assets. The current portion of these assets is included in prepaid and other assets and the non-current portion is included in other assets, both of which are contained within the Condensed Consolidated Balance Sheets. The balance of the current portion of prepaid and other assets consisted of the following (in thousands): At June 30, At December 31, 2017 2016 Prepaid expenses and other assets Deposits $ 8,915 $ 8,622 Prepaid expenses 8,205 5,937 Other 3,375 3,489 Total prepaid expenses and other assets $ 20,495 $ 18,048 The balance of the non-current portion of other assets consisted of the following (in thousands): At June 30, At December 31, 2017 2016 Other assets Prepaid expenses and deposits $ 3,732 $ 3,399 Debt issuance costs of revolving credit facility 944 689 Other 3,258 3,434 Total other assets $ 7,934 $ 7,522

INVENTORY

INVENTORY	6 Months Ended
	Jun. 30, 2017
INVENTORY
INVENTORY	7. INVENTORY Our inventory primarily consists of component parts as well as work-in-progress and finished goods. The cost of inventory includes cost of materials, labor, overhead and freight. The inventory is stated at the lower of cost or market and accounted for using the FIFO method. Inventory consisted of the following (in thousands): At June 30, At December 31, 2017 2016 Inventory Raw materials and component parts, net of reserves of $1,985 and $2,155 at June 30, 2017 and December 31, 2016, respectively $ 13,776 $ 12,570 Work-in-progress 3,380 1,502 Finished goods 4,107 4,996 Total inventory $ 21,263 $ 19,068

PROPERTY, EQUIPMENT AND LEASED

PROPERTY, EQUIPMENT AND LEASED ASSETS	6 Months Ended
	Jun. 30, 2017
PROPERTY, EQUIPMENT AND LEASED ASSETS
PROPERTY, EQUIPMENT AND LEASED ASSETS	8. PROPERTY, EQUIPMENT AND LEASED ASSETS Property, equipment and leased assets consist of the following (in thousands): At June 30, 2017 At December 31, 2016 Useful Life Accumulated Net Book Accumulated Net Book (Years) Cost Depreciation Value Cost Depreciation Value Property, equipment and leased assets Rental pool - deployed - 4 $ 140,620 $ 67,803 $ 72,817 $ 123,812 $ 59,188 $ 64,624 Rental pool - undeployed - 4 16,050 8,673 7,377 13,456 5,721 7,735 ATM equipment 5 16,694 12,127 4,567 16,537 11,189 5,348 Leasehold and building improvements Lease Term 10,387 4,422 5,965 10,023 3,698 6,325 Cash advance equipment 3 8,363 4,993 3,370 8,590 4,499 4,091 Machinery, office and other equipment - 5 31,989 22,227 9,762 30,424 20,108 10,316 Total $ 224,103 $ 120,245 $ 103,858 $ 202,842 $ 104,403 $ 98,439 In the second quarter of 2016, our corporate aircraft was classified as held for sale and sold for $4.8 million during the period. We recognized a $0.9 million loss on the sale of the aircraft, which was included in operating expenses in the Condensed Consolidated Statements of Loss and Comprehensive Loss for the three and six months ended June 30, 2016. The aircraft was included in machinery, office and other equipment. Depreciation expense related to property, equipment and leased assets totaled approximately $11.4 million and $22.2 million for the three and six months ended June 30, 2017, respectively, and $12.5 million and $24.8 million for the three and six months ended June 30, 2016, respectively. There was no material impairment of our property, equipment and leased assets for the three and six months ended June 30, 2017 and 2016.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2017
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	9. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the purchase price over the identifiable tangible and intangible assets acquired plus liabilities assumed arising from business combinations. The balance of goodwill was $640.6 million and $640.5 million at June 30, 2017 and December 31, 2016, respectively. In accordance with ASC 350, we test goodwill at the reporting unit level, which are identified as operating segments or one level below, for impairment on an annual basis and between annual tests if events and circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount. We test for impairment annually on a reporting unit basis, at the beginning of our fourth fiscal quarter, or more often under certain circumstances. The annual impairment test is completed using either: a qualitative Step 0 assessment based on reviewing relevant events and circumstances; or a quantitative Step 1 assessment, which determines the fair value of the reporting unit, using an income approach that discounts future cash flows based on the estimated future results of our reporting units and a market approach that compares market multiples of comparable companies to determine whether or not any impairment exists. If the fair value of a reporting unit is less than its carrying amount, we will use the Step 1 assessment to determine the impairment in accordance with the adoption of ASU No 2017-04. No impairment was identified for our goodwill for the three and six months ended June 30, 2017 and 2016. Other Intangible Assets Other intangible assets consist of the following (in thousands): At June 30, 2017 At December 31, 2016 Useful Life Accumulated Net Book Accumulated Net Book (years) Cost Amortization Value Cost Amortization Value Other intangible assets Contract rights under placement fee agreements - 7 $ 19,168 $ 8,572 $ 10,596 $ 17,742 $ 6,281 $ 11,461 Customer contracts - 14 50,975 42,097 8,878 50,975 40,419 10,556 Customer relationships - 12 231,100 53,171 177,929 231,100 42,688 188,412 Developed technology and software - 6 236,664 143,997 92,667 224,265 126,721 97,544 Patents, trademarks and other - 17 28,949 19,871 9,078 27,771 17,747 10,024 Total $ 566,856 $ 267,708 $ 299,148 $ 551,853 $ 233,856 $ 317,997 Amortization expense related to other intangible assets was approximately $17.4 million and $34.8 million for the three and six months ended June 30, 2017, respectively, and $23.6 million and $46.8 million for the three and six months ended June 30, 2016, respectively. We evaluate our other intangible assets for potential impairment in connection with our quarterly review process. There was no material impairment identified for any of our other intangible assets for the three and six months ended June 30, 2017 and 2016. We enter into placement fee agreements to provide financing for new gaming facilities or for the expansion or improvement of existing facilities. The funding under placement fee agreements is not reimbursed. In return for the fees under these agreements, each facility dedicates a percentage of its floor space, or an agreed upon unit count, for the placement of our electronic gaming machines (“EGMs”) over the term of the agreement, generally 12 to 83 months, and we receive a fixed percentage or flat fee of those machines’ hold per day. Certain of the agreements contain EGM performance standards that could allow the respective facility to reduce a portion of our guaranteed floor space. Placement fees and amounts advanced in excess of those to be reimbursed by the customer for real property and land improvements are allocated to intangible assets and are generally amortized over the term of the contract, which is recorded as a reduction of revenue generated from the facility. In the past we have, and in the future, we may, by mutual agreement, amend these agreements to reduce our floor space at the facilities. Any proceeds received for the reduction of floor space are first applied against the intangible asset for that particular placement fee agreement, if any, and the remaining net book value of the intangible asset is prospectively amortized on a straight-line method over the remaining estimated useful life. We paid approximately $3.0 million for the three and six months ended June 30, 2017 and $10.2 million and $11.2 million for the three and six months ended June 30, 2016, respectively, to extend the term of placement fee agreements with a customer for certain of its locations.

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	6 Months Ended
	Jun. 30, 2017
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	10. ACCOUNTS PAYABLE AND ACCRUED EXPENSES The following table presents our accounts payable and accrued expenses (in thousands): At June 30, At December 31, 2017 2016 Accounts payable and accrued expenses Trade accounts payable $ 58,421 $ 55,352 Accrued interest 16,270 82 Payroll and related expenses 10,020 12,305 Deferred and unearned revenues 10,413 9,222 Cash access processing and related expenses 5,683 7,001 Accrued taxes 2,357 2,587 Other 9,647 7,842 Total accounts payable and accrued expenses $ 112,811 $ 94,391

LONG-TERM DEBT

LONG-TERM DEBT	6 Months Ended
	Jun. 30, 2017
LONG-TERM DEBT
LONG-TERM DEBT	11. LONG-TERM DEBT The following table summarizes our outstanding indebtedness (in thousands): At June 30, At December 31, 2017 2016 Long-term debt Senior secured term loan $ 820,000 $ 465,600 Senior secured notes — 335,000 Senior unsecured notes 350,000 350,000 Total debt 1,170,000 1,150,600 Less: debt issuance costs and discount (30,327) (28,720) Total debt after debt issuance costs and discount 1,139,673 1,121,880 Less: current portion of long-term debt (8,200) (10,000) Long-term debt, less current portion $ 1,131,473 $ 1,111,880 Refinancing On May 9, 2017 (the “Closing Date”), Everi Payments, as borrower, and Holdings entered into a credit agreement with the lenders party thereto and Jefferies Finance LLC, as administrative agent, collateral agent, swing line lender, letter of credit issuer, sole lead arranger and sole book manager (the “New Credit Agreement”). The New Credit Agreement provides for: (i) a $35.0 million, five-year senior secured revolving credit facility (the “New Revolving Credit Facility”); and (ii) an $820.0 million, seven-year senior secured term loan facility (the “New Term Loan Facility,” and together with the New Revolving Credit Facility, the “New Credit Facilities”). The fees associated with the New Credit Facilities included discounts of approximately $4.1 million and debt issuance costs of approximately $15.5 million. All borrowings under the New Credit Facilities are subject to the satisfaction of customary conditions, including the absence of defaults and the accuracy of representations and warranties. The proceeds from the New Term Loan Facility incurred on the Closing Date were used to: (i) refinance: (a) the Everi Payments existing credit facility with an outstanding balance of approximately $462.3 million with Bank of America, N.A., as administrative agent, collateral agent, swing line lender and letter of credit issuer, Deutsche Bank Securities Inc., as syndication agent, and Merrill Lynch, Pierce, Fenner & Smith Incorporated and Deutsche Bank Securities Inc., as joint lead arrangers and joint book managers (the “Prior Credit Facility”); and (b) the Everi Payments 7.25% Senior Secured Notes due 2021 in the aggregate original principal amount of $335.0 million (the “Refinanced Secured Notes”); and (ii) pay related transaction fees and expenses. In connection with the refinancing, we recorded a non-cash charge of approximately $14.6 million during the second quarter of 2017 related to the unamortized deferred financing fees and discounts related to the extinguished term loan under the Prior Credit Facility and the redeemed Refinanced Secured Notes. No prepayment penalties were incurred. New Credit Facilities The New Term Loan Facility matures seven years after the Closing Date (the “Stated Term Maturity Date”); provided that, if on the date that is 91 days prior to the maturity date (the “Unsecured Notes Maturity Date”) for the Everi Payments 10.00% Senior Unsecured Notes due 2022 in the aggregate original principal amount of $350.0 million (the “Unsecured Notes”), any Unsecured Notes remain outstanding and the Unsecured Notes Maturity Date has not been extended to a date that is at least six months after the Stated Term Maturity Date, then the New Term Loan Facility shall mature on the date that is 91 days before the Unsecured Notes Maturity Date. The New Revolving Credit Facility matures five years after the Closing Date; provided, that, if on the date that is 121 days prior to the Unsecured Notes Maturity Date, any Unsecured Notes remain outstanding and the Unsecured Notes Maturity Date has not been extended to a date that is at least six months after the Stated Term Maturity Date, then the New Revolving Credit Facility shall mature on the date that is 121 days before the Unsecured Notes Maturity Date. The New Revolving Credit Facility is available for general corporate purposes, including permitted acquisitions, working capital and the issuance of letters of credit. The interest rate per annum applicable to loans under the New Revolving Credit Facility will be, at Everi Payments’ option, the base rate or the Eurodollar Rate (defined to be the London Interbank Offered Rate or a comparable or successor rate) (the “Eurodollar Rate”) plus, in each case, an applicable margin. The interest rate per annum applicable to the New Term Loan Facility will also be, at Everi Payments’ option, the base rate or the Eurodollar Rate plus, in each case, an applicable margin. The Eurodollar Rate will be reset at the beginning of each selected interest period based on the Eurodollar Rate then in effect; provided that, if the Eurodollar Rate is below 1.0%, then such rate will be equal to 1.0% plus the applicable margin. The base rate is a fluctuating interest rate equal to the highest of: (i) the prime lending rate announced by the administrative agent; (ii) the federal funds effective rate from time to time plus 0.50%; and (iii) the Eurodollar Rate (after taking account of any applicable floor) applicable for an interest period of one month plus 1.00%. The applicable margins for both the New Revolving Credit Facility and the New Term Loan Facility are: (i) 4.50% in respect of Eurodollar Rate loans and (ii) 3.50% in respect of base rate loans. Voluntary prepayments of the term loan and the revolving loans and voluntary reductions in the unused commitments are permitted in whole or in part, in minimum amounts as set forth in the New Credit Agreement governing the New Credit Facilities, with prior notice but without premium or penalty, except that certain refinancings of the term loans within six months after the Closing Date will be subject to a prepayment premium of 1.00% of the principal amount repaid. Subject to certain exceptions, the obligations under the New Credit Facilities are secured by substantially all of the present and after acquired assets of each of Everi Payments, Holdings and the subsidiary guarantors party thereto including: (i) a perfected first priority pledge of all the capital stock of Everi Payments and each domestic direct, wholly owned material restricted subsidiary held by Holdings, Everi Payments or any such subsidiary guarantor; and (ii) a perfected first priority security interest in substantially all other tangible and intangible assets of Holdings, Everi Payments, and such subsidiary guarantors (including, but not limited to, accounts receivable, inventory, equipment, general intangibles, investment property, real property, intellectual property and the proceeds of the foregoing). Subject to certain exceptions, the New Credit Facilities are unconditionally guaranteed by Holdings and such subsidiary guarantors. The New Credit Agreement governing the New Credit Facilities contains certain covenants that, among other things, limit Holdings’ ability, and the ability of certain of its subsidiaries, to incur additional indebtedness, sell assets or consolidate or merge with or into other companies, pay dividends or repurchase or redeem capital stock, make certain investments, issue capital stock of subsidiaries, incur liens, prepay, redeem or repurchase subordinated debt, and enter into certain types of transactions with its affiliates. The New Credit Agreement governing the New Credit Facilities also requires Holdings, together with its subsidiaries, to comply with a consolidated secured leverage ratio. At June 30, 2017, our consolidated secured leverage ratio was 3.67 to 1.00, with a maximum allowable ratio of 5.00 to 1.00. Our maximum consolidated secured leverage ratio will be 5.00 to 1.00, 4.75 to 1.00, and 4.50 to 1.00 as of December 31, 2017, 2018, and 2019 and thereafter, respectively. We were in compliance with the terms of the New Credit Facilities as of June 30, 2017. Events of default under the New Credit Agreement governing the New Credit Facilities include customary events such as a cross-default provision with respect to other material debt. In addition, an event of default will occur if Holdings undergoes a change of control. This is defined to include the case where Holdings ceases to own 100% of the equity interests of Everi Payments, or where any person or group acquires a percentage of the economic or voting interests of Holdings’ capital stock of 35% or more (determined on a fully diluted basis). We are required to repay the New Term Loan Facility in an amount equal to 0.25% per quarter of the initial aggregate principal, with the final principal repayment installment on the maturity date. Interest is due in arrears on each interest payment date applicable thereto and at such other times as may be specified in the New Credit Agreement. As to any loan other than a base rate loan, the interest payment dates shall be the last day of each interest period applicable to such loan and the maturity date ( provided , however , that if any interest period for a Eurodollar Rate loan exceeds three months, the respective dates that fall every three months after the beginning of such interest period shall also be interest payment dates). As to any base rate loan, the interest payment dates shall be last business day of each March, June, September and December and the maturity date. For the quarter ended June 30, 2017, the Prior Credit Facility had an applicable weighted average interest rate of 6.30%; the New Term Loan Facility had an applicable weighted average interest rate of 5.66%; and a blended weighted average interest rate of 5.89%. For the six months ended June 30, 2017, the Prior Credit Facility had an applicable weighted average interest rate of 6.29%; the New Term Loan Facility had an applicable weighted average interest rate of 5.66%; and a blended weighted average interest rate of 5.99% for the period ended June 30, 2017. At June 30, 2017, we had $820.0 million of borrowings outstanding under the New Term Loan Facility and no borrowings outstanding under the New Revolving Credit Facility. We had $35.0 million of additional borrowing availability under the New Revolving Credit Facility as of June 30, 2017. Refinanced Senior Secured Notes In connection with entering into the New Credit Agreement, on May 9, 2017, Everi Payments redeemed in full $335.0 million face value (plus accrued interest) of the Refinanced Secured Notes. As a result of the redemption, the Company recorded $1.7 million, which consisted of unamortized deferred financing fees of $0.2 million and discounts of $1.5 million. These fees are included in the total $14.6 million non-cash charge. Senior Unsecured Notes In December 2014, we issued $350.0 million in aggregate principal amount of 10.00% Unsecured Notes due 2022 (the “Unsecured Notes”). The fees associated with the Unsecured Notes included original issue discounts of approximately $3.8 million and debt issuance costs of approximately $14.0 million. Interest is due semi-annually in arrears each January and July. The Unsecured Notes were acquired by the initial purchasers pursuant to the terms of a purchase agreement. Under the terms of the purchase agreement, during a one-year period following the closing and upon prior notice from the initial purchasers, the Company was required to use commercially reasonable efforts to aid the purchasers in the resale of the Unsecured Notes, including by preparing an updated offering memorandum and participating in reasonable marketing efforts including road shows, to the extent required therein. The Unsecured Notes were resold by the initial purchasers to third parties in the second quarter of 2015. In December 2015, we completed an exchange offer in which all of the unregistered Unsecured Notes were exchanged for a like amount of Unsecured Notes that had been registered under the Securities Act. We were in compliance with the terms of the Unsecured Notes as of June 30, 2017 and December 31, 2016.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2017
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	12. COMMITMENTS AND CONTINGENCIES The following transactions have resulted in a change in our commitments under contractual obligations as compared to those disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016: In May 2017, we entered into the New Credit Agreement, which provides for the $35.0 million New Revolving Credit Facility and the $820.0 million New Term Loan Facility. Under the New Credit Agreement, we are required to make principal payments of 1% annually of $4.1 million in 2017, $8.2 million in years 2018 through 2021 and $783.1 million thereafter. We also have required interest payments, computed using a blended weighted average interest rate at June 30, 2017 of 5.56%, of $23.7 million, $45.7 million, $45.2 million, $44.8 million, $44.4 million and $102.5 million from 2017 through 2021 and thereafter, respectively. In August 2017, we extended the term of our placement fee agreements to 6 years and 11 months with our largest customer in Oklahoma. Under the terms of the agreement, we made a $10.0 million cash payment in August 2017 and will pay approximately $5.6 million per quarter in placement fees, beginning in January 2018 and ending in July 2019. We are involved in various investigations, claims and lawsuits in the ordinary course of our business. In addition, various legal actions, claims and governmental inquiries and proceedings are pending or may be instituted or asserted in the future against us and our subsidiaries. Although the outcome of our legal proceedings cannot be predicted with certainty and no assurances can be provided, based upon current information, we do not believe the liabilities, if any, which may ultimately result from the outcome of such matters, individually or in the aggregate, will have a material adverse impact on our financial position, liquidity or results of operations.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2017
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY	13. SHAREHOLDERS’ EQUITY Preferred Stock. Our amended and restated certificate of incorporation, as amended, allows our Board of Directors, without further action by stockholders, to issue up to 50,000,000 shares of preferred stock in one or more series and to fix the designations, powers, preferences, privileges and relative participating, optional, or special rights as well as the qualifications, limitations or restrictions of the preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption and liquidation preferences. As of June 30, 2017 and December 31, 2016, we had no shares of preferred stock outstanding. Common Stock. Subject to the preferences that may apply to shares of preferred stock that may be outstanding at the time, the holders of outstanding shares of common stock are entitled to receive dividends out of assets legally available at the times and in the amounts as our Board of Directors may from time to time determine. All dividends are non-cumulative. In the event of the liquidation, dissolution or winding up of Everi, the holders of common stock are entitled to share ratably in all assets remaining after the payment of liabilities, subject to the prior distribution rights of preferred stock, if any, then outstanding. Each stockholder is entitled to one vote for each share of common stock held on all matters submitted to a vote of stockholders. Cumulative voting for the election of directors is not provided for. The common stock is not entitled to preemptive rights and is not subject to conversion or redemption. There are no sinking fund provisions applicable to the common stock. Each outstanding share of common stock is fully paid and non-assessable. As of June 30, 2017 and December 31, 2016, we had 91,538,345 and 90,952,185 shares of common stock issued, respectively. Treasury Stock. Employees may direct us to withhold vested shares of restricted stock to satisfy the minimum statutory withholding requirements applicable to their restricted stock vesting. We repurchased or withheld from restricted stock awards 455 and 3,029 shares of common stock for the three and six months ended June 30, 2017, respectively, at an aggregate purchase price of $3,117 and $10,591, respectively, and 2,324 and 4,912 shares of common stock for the three and six months ended June 30, 2016, respectively, at an aggregate purchase price of $4,081 and $13,015, respectively, to satisfy the minimum applicable tax withholding obligations related to the vesting of such restricted stock awards.

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES	6 Months Ended
	Jun. 30, 2017
WEIGHTED AVERAGE COMMON SHARES
WEIGHTED AVERAGE COMMON SHARES	14. WEIGHTED AVERAGE COMMON SHARES The weighted average number of shares of common stock outstanding used in the computation of basic and diluted loss per share is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Weighted average shares Weighted average number of common shares outstanding - basic 66,350 66,041 66,221 66,038 Potential dilution from equity grants (1) — — — — Weighted average number of common shares outstanding - diluted 66,350 66,041 66,221 66,038 (1) The Company was in a net loss position for the three and six months ended June 30, 2017 and 2016; therefore, no potential dilution from the application of the treasury stock method was applicable. Equity awards to purchase approximately 11.9 million and 15.3 million shares of common stock for the three and six months ended June 30, 2017, respectively, and 17.1 million and 15.9 million shares of common stock for the three and six months ended June 30, 2016, respectively, were excluded from the computation of diluted net loss per share as this effect would have been antidilutive.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2017
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION	15. SHARE-BASED COMPENSATION Equity Incentive Awards Our 2014 Equity Incentive Plan (as amended and restated effective May 23, 2017, the “Amended and Restated 2014 Plan”) and our 2012 Equity Incentive Plan (as amended, the “2012 Plan”) are used to attract and retain the best available personnel, to provide additional incentives to employees, directors and consultants and to promote the success of our business. The Amended and Restated 2014 Plan superseded the then current 2005 Stock Incentive Plan (the “2005 Plan”). The 2012 Plan was assumed in connection with our acquisition of Everi Games Holding and conformed to include similar provisions to those as set forth in the Amended and Restated 2014 Plan. Our equity incentive plans are administered by the Compensation Committee of our Board of Directors, which has the authority to select individuals who are to receive equity incentive awards and to specify the terms and conditions of grants of such awards, including, but not limited to, the vesting provisions and exercise prices. Generally, we grant the following award types: (a) time-based options, (b) market-based options and (c) restricted stock. These awards have varying vesting provisions and expiration periods. For the three and six months ended June 30, 2017, we granted time- and market-based options. Our time-based stock options granted under our equity plans generally vest at a rate of 25% per year on each of the first four anniversaries of the option grant dates. These options expire after a ten-year period. Our market-based options granted in 2017 vest at a rate of 25% per year on each of the first four anniversaries of the grant date, provided that as of the vesting date for each vesting tranche, the closing price of the Company’s shares on the New York Stock Exchange is at least a specified price hurdle, defined as a 25% premium to the closing stock price on the grant date. If the price hurdle is not met as of the vesting date for a vesting tranche, then the vested tranche shall vest and become vested shares on the last day of a period of 30 consecutive trading days during which the closing price is at least the price hurdle. These options expire after a ten-year period. Our market-based options granted in 2016 vest at a rate of 25% per year on each of the first four anniversaries of the grant date, provided that as of the vesting date for each vesting tranche, the closing price of the Company’s shares on the New York Stock Exchange is at least a specified price hurdle, defined as a 50% premium to the closing stock price on the grant date. If the price hurdle is not met as of the vesting date for a vesting tranche, then the vested tranche shall vest and become vested shares on the last day of a period of 30 consecutive trading days during which the closing price is at least the price hurdle. These options expire after a ten-year period. A summary of award activity is as follows (in thousands): Stock Options Restricted Stock Granted Granted Outstanding, December 31, 2016 18,233 80 Additional authorized shares — — Granted 4,061 40 Exercised options or vested shares (575) (11) Cancelled or forfeited (200) — Outstanding, June 30, 2017 21,519 109 The maximum number of shares available for future equity awards, both under the Amended and Restated 2014 Plan and the 2012 Plan, is approximately 4.5 million shares of our common stock. There are no shares available for future equity awards under the 2005 Plan. Stock Options The fair values of our standard time-based options were determined as of the date of grant using the Black-Scholes option pricing model with the following assumptions: Six months ended June 30, 2017 2016 Risk-free interest rate 2 % 1 % Expected life of options (in years) 6 5 Expected volatility 54 % 51 % Expected dividend yield — % — % For the six months ended June 30, 2016, certain executive and director grants were valued under the Black-Scholes option pricing model that utilized different assumptions from those used for our standard time-based options. For the time-based options granted on February 25, 2016, the assumptions were: (a) risk-free interest rate of 1%; (b) expected term of five years; (c) expected volatility of 49%; and (d) no expected dividend yield. For the time-based options granted on February 13, 2016, the assumptions were: (a) risk-free interest rate of 1%; (b) expected term of six years; (c) expected volatility of 49%; and (d) no expected dividend yield. The fair values of our market-based options were determined as of the date of grant using a lattice-based option valuation model with the following assumptions: Six months ended June 30, 2017 2016 Risk-free interest rate 3 % 2 % Measurement period (in years) 10 10 Expected volatility 70 % 68 % Expected dividend yield — % — % The following tables present the options activity: Weighted Number of Weighted Average Average Life Aggregate Common Shares Exercise Price Remaining Intrinsic Value (in thousands) (per share) (years) (in thousands) Outstanding, December 31, 2016 18,233 $ 6.02 6.4 $ 2,387 Granted 4,061 3.34 Exercised (575) 3.21 Canceled or forfeited (200) 4.68 Outstanding, June 30, 2017 21,519 $ 5.60 6.6 $ 44,789 Vested and expected to vest, June 30, 2017 18,835 $ 5.73 6.5 $ 37,328 Exercisable, June 30, 2017 10,769 $ 6.90 4.9 $ 11,413 There were 58,000 and 4.1 million options granted for the three and six months ended June 30, 2017, respectively, and 3.4 million and 4.0 million options granted for the three and six months ended June 30, 2016, respectively. The weighted average grant date fair value per share of options granted was $3.28 and $1.83 for the three and six months ended June 30, 2017, respectively, and $0.73 and $0.81 for the three and six months ended June 30, 2016, respectively. The total intrinsic value of options exercised was $2.0 million for the three and six months ended June 30, 2017. No options were exercised during the three and six months ended June 30, 2016. There was $13.4 million in unrecognized compensation expense related to options expected to vest as of June 30, 2017. This cost is expected to be recognized on a straight-line basis over a weighted average period of 2.4 years. We recorded $3.3 million in non-cash compensation expense related to options granted that were expected to vest for the six months ended June 30, 2017. We received $1.8 million in cash from the exercise of options for the three and six months ended June 30, 2017. There was $15.2 million in unrecognized compensation expense related to options expected to vest as of June 30, 2016. This cost was expected to be recognized on a straight-line basis over a weighted average period of 2.5 years. We recorded $2.6 million in non-cash compensation expense related to options granted that were expected to vest as of June 30, 2016. There were no proceeds received from the exercise of options as no exercises occurred for the three and six months ended June 30, 2016. Restricted Stock The following is a summary of non-vested share awards for our time-based restricted stock: Weighted Shares Average Grant Outstanding Date Fair Value (in thousands) (per share) Outstanding, December 31, 2016 80 $ 7.12 Granted 40 6.66 Vested (11) 7.03 Forfeited — — Outstanding, June 30, 2017 109 $ 6.96 There were 40,000 shares of restricted stock granted for the three and six months ended June 30, 2017. The total fair value of restricted stock vested was $12,128 and $80,590 for the three and six months ended June 30, 2017, respectively, and $11,422 and $23,608 for the three and six months ended June 30, 2016, respectively. There was $0.9 million in unrecognized compensation expense related to shares of time based restricted stock expected to vest as of June 30, 2017. This cost is expected to be recognized on a straight-line basis over a weighted average period of 1.5 years. There were 11,070 shares of restricted stock that vested and we recorded $0.2 million in non-cash compensation expense related to the restricted stock granted that was expected to vest during the six months ended June 30, 2017. There was $1.5 million in unrecognized compensation expense related to shares of time-based restricted shares expected to vest as of June 30, 2016. This cost was expected to be recognized on a straight-line basis over a weighted average period of 2.0 years. There were 20,500 shares of time-based restricted shares vested and we recorded $0.2 million in non-cash compensation expense related to the restricted stock granted that was expected to vest for the six months ended June 30, 2016.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2017
INCOME TAXES
INCOME TAXES	16. INCOME TAXES The income tax provision reflected an effective income tax rate of negative 10.8% and negative 14.8% for the three and six months ended June, 30, 2017, which was less than the statutory federal rate of 35.0%, primarily due to an increase in our valuation allowance for deferred tax assets, partially offset by state taxes, the benefit from stock option exercises, and the benefit from a research credit. The income tax provision reflected an effective income tax rate of 42.2% and 40.0% for the three and six months ended June 30, 2016, respectively, which was higher than the statutory federal rate of 35.0%, primarily due to state taxes, the true-up of certain foreign losses, the lower foreign tax rate applicable to our foreign source income, and the benefit from a research credit. During the second quarter of 2017, we increased our valuation allowance by approximately $8.3 million for our deferred tax assets. We have analyzed filing positions in all of the federal, state and foreign jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions. As of June 30, 2017, the Company recorded $0.8 million of unrecognized tax benefits, all of which would impact our effective tax rate, if recognized. We do not anticipate that our unrecognized tax benefits will materially change within the next 12 months. The Company has not accrued any penalties and interest for its unrecognized tax benefits. Other than the unrecognized tax benefit recorded, we believe that our income tax filing positions and deductions will be sustained upon audit, and we do not anticipate any other adjustments that will result in a material change to our financial position. We may, from time to time, be assessed interest or penalties by tax jurisdictions, although any such assessments historically have been minimal and immaterial to our financial results. Our policy for recording interest and penalties associated with audits and unrecognized tax benefits is to record such items as a component of income tax in our Condensed Consolidated Statements of Loss and Comprehensive Loss.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2017
SEGMENT INFORMATION
SEGMENT INFORMATION	17. SEGMENT INFORMATION Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-making group in deciding how to allocate resources and in assessing performance. Our chief operating decision-making group consists of the Chief Executive Officer and the Chief Financial Officer. This group manages the business, allocates resources and measures profitability based on our operating segments. Our operating segments are managed and reviewed separately, as each represents products that can be sold separately to our customers. Our chief operating decision-making group has determined the following to be the operating segments for which we conduct business: (a) Games and (b) Payments. We have reported our financial performance based on our segments in both the current and prior periods. Each of these segments is monitored by our management for performance against its internal forecast and is consistent with our internal management reporting. · The Games segment provides solutions directly to gaming establishments to offer their patrons gaming entertainment related experiences including: leased gaming equipment; sales and maintenance related services of gaming equipment; gaming systems; and ancillary products and services. · The Payments segment provides solutions directly to gaming establishments to offer their patrons cash access related services and products, including: access to cash at gaming facilities via ATM cash withdrawals, credit card cash access transactions and POS debit card cash access transactions; check-related services; fully integrated kiosks and maintenance services; compliance, audit and data software; casino credit data and reporting services and other ancillary offerings. Corporate overhead expenses have been allocated to the segments either through specific identification or based on a reasonable methodology. In addition, we allocate depreciation and amortization expenses to the business segments. Our business is predominantly domestic with no specific regional concentrations and no significant assets in foreign locations. The accounting policies of the operating segments are generally the same as those described in the summary of significant accounting policies. The following tables present segment information (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Revenues Games $ 55,104 $ 54,264 $ 110,380 $ 102,442 Payments 187,126 159,736 369,387 317,327 Total revenues $ 242,230 $ 214,000 $ 479,767 $ 419,769 Operating income (loss) Games $ 2,722 $ (7,210) $ 7,513 $ (10,456) Payments 18,570 13,270 36,382 20,300 Total operating income $ 21,292 $ 6,060 $ 43,895 $ 9,844 At June 30, 2017 At December 31, 2016 Total assets Games $ 879,961 $ 894,213 Payments 457,437 513,950 Total assets $ 1,337,398 $ 1,408,163 Major Customers. For the three and six months ended June 30, 2017 and 2016, no single customer accounted for more than 10% of our revenues. Our five largest customers accounted for approximately 26% and 27% for the three and six month ended June 30, 2017, respectively, and 31% and 32% for the three and six months ended June 30, 2016, respectively.

CONDENSED CONSOLIDATING FINANCI

CONDENSED CONSOLIDATING FINANCIAL INFORMATION	6 Months Ended
	Jun. 30, 2017
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
CONDENSED CONSOLIDATING FINANCIAL INFORMATION	18. CONDENSED CONSOLIDATING FINANCIAL INFORMATION We conduct substantially all of our business through our U.S. and foreign subsidiaries. Everi Payments’ (“Subsidiary Issuer”) obligations under the Unsecured Notes are fully and unconditionally guaranteed, subject to certain customary release provisions, on a joint and several basis by Holdings (“Parent”) and substantially all of our 100%-owned U.S. subsidiaries other than Subsidiary Issuer (the “Guarantor Subsidiaries” and, together with Parent, the “Guarantors” and each a “Guarantor”). The guarantees of our Unsecured Notes will be released under the following customary circumstances: (i) the sale or disposition of all or substantially all of the assets of the Guarantor (by way of merger, consolidation, or otherwise) to a person that is not (either before or after giving effect to such transaction) Parent, Subsidiary Issuer or a restricted subsidiary; (ii) the sale or disposition of sufficient capital stock of the Guarantor to a person that is not (either before or after giving effect to such transaction) Parent, Subsidiary Issuer or a restricted subsidiary and the Guarantor ceases to be a restricted subsidiary of Subsidiary Issuer as a result of the sale or other disposition; (iii) the designation of the Guarantor as an unrestricted subsidiary in accordance with the indenture governing the Unsecured Notes; or (iv) the legal or covenant defeasance of the Unsecured Notes or the satisfaction and discharge of the indenture governing the Unsecured Notes. Presented below is condensed consolidating financial information for (a) Parent, (b) Subsidiary Issuer, (c) the Guarantor Subsidiaries and (d) our U.S. subsidiaries that are not Guarantor Subsidiaries and our foreign subsidiaries (collectively, the “Non-Guarantor Subsidiaries”) as of June 30, 2017 and December 31, 2016 and for the three and six months ended June 30, 2017 and 2016. The condensed consolidating financial information has been presented to show the nature of assets held and the results of operations and cash flows of Parent, Subsidiary Issuer, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries assuming that the guarantee structure of the Unsecured Notes had been in effect at the beginning of the periods presented. Three Months Ended June 30, 2017 Parent Subsidiary Guarantor Non-Guarantor Eliminations Total Revenues Games $ — $ — $ 54,702 $ 3,266 $ (2,864) $ 55,104 Payments — 173,387 7,794 8,319 (2,374) 187,126 Total revenues — 173,387 62,496 11,585 (5,238) 242,230 Costs and expenses Games cost of revenue (exclusive of depreciation and amortization) — — 12,883 1,632 (1,276) 13,239 Payments cost of revenue (exclusive of depreciation and amortization) — 136,639 2,508 6,320 — 145,467 Operating expenses — 17,351 11,040 4,350 (3,962) 28,779 Research and development — — 4,596 22 — 4,618 Depreciation — 1,679 9,601 116 — 11,396 Amortization — 2,616 14,344 479 — 17,439 Total costs and expenses — 158,285 54,972 12,919 (5,238) 220,938 Operating income (loss) — 15,102 7,524 (1,334) — 21,292 Other expenses (income) Interest expense, net of interest income — 512 23,153 216 — 23,881 Equity in loss (income) of subsidiaries 19,057 (1,805) 21 — (17,273) — Loss on extinguishment of debt — 14,615 — — — 14,615 Total other expenses 19,057 13,322 23,174 216 (17,273) 38,496 (Loss) income before income tax (19,057) 1,780 (15,650) (1,550) 17,273 (17,204) Income tax provision (benefit) — 414 1,670 (231) — 1,853 Net (loss) income (19,057) 1,366 (17,320) (1,319) 17,273 (19,057) Foreign currency translation 836 — — 836 (836) 836 Comprehensive (loss) income $ (18,221) $ 1,366 $ (17,320) $ (483) $ 16,437 $ (18,221) Three Months Ended June 30, 2016 Parent Subsidiary Guarantor Non-Guarantor Eliminations Total Revenues Games $ — $ — $ 54,264 $ — $ — $ 54,264 Payments — 148,231 7,685 4,194 (374) 159,736 Total revenues — 148,231 61,949 4,194 (374) 214,000 Costs and expenses Games cost of revenue (exclusive of depreciation and amortization) — — 12,968 — — 12,968 Payments cost of revenue (exclusive of depreciation and amortization) — 118,885 2,206 2,407 — 123,498 Operating expenses — 16,496 14,107 504 (374) 30,733 Research and development — — 4,671 — — 4,671 Depreciation — 1,965 10,474 31 — 12,470 Amortization — 3,142 19,888 570 — 23,600 Total costs and expenses — 140,488 64,314 3,512 (374) 207,940 Operating income (loss) — 7,743 (2,365) 682 — 6,060 Other expense (income) Interest expense, net of interest income — 1,576 23,105 61 — 24,742 Equity in loss (income) of subsidiaries 10,796 (3,520) — — (7,276) — Total other expense (income) 10,796 (1,944) 23,105 61 (7,276) 24,742 (Loss) income before income tax (10,796) 9,687 (25,470) 621 7,276 (18,682) Income tax provision (benefit) — 1,823 (9,960) 251 — (7,886) Net (loss) income (10,796) 7,864 (15,510) 370 7,276 (10,796) Foreign currency translation (435) — — (435) 435 (435) Comprehensive (loss) income $ (11,231) $ 7,864 $ (15,510) $ (65) $ 7,711 $ (11,231) Six Months Ended June 30, 2017 Non- Subsidiary Guarantor Guarantor Parent Issuer Subsidiaries Subsidiaries Eliminations Total Revenues Games $ — $ — $ 110,220 $ 3,706 $ (3,546) $ 110,380 Payments — 340,060 15,482 16,369 (2,524) 369,387 Total revenues — 340,060 125,702 20,075 (6,070) 479,767 Costs and expenses Games cost of revenue (exclusive of depreciation and amortization) — — 25,802 1,839 (1,958) 25,683 Payments cost of revenue (exclusive of depreciation and amortization) — 269,739 4,689 11,838 — 286,266 Operating expenses — 34,894 22,098 4,892 (4,112) 57,772 Research and development — — 9,134 27 — 9,161 Depreciation — 3,442 18,552 232 — 22,226 Amortization — 5,496 28,306 962 — 34,764 Total costs and expenses — 313,571 108,581 19,790 (6,070) 435,872 Operating income — 26,489 17,121 285 — 43,895 Other expense (income) Interest expense, net of interest income — 2,508 46,049 381 — 48,938 Equity in income (loss) of subsidiaries 22,565 (5,986) (82) — (16,497) — Loss on extinguishment of debt — 14,615 — — — 14,615 Total other expense 22,565 11,137 45,967 381 (16,497) 63,553 (Loss) income before income tax (22,565) 15,352 (28,846) (96) 16,497 (19,658) Income tax (benefit) provision — (646) 3,400 153 — 2,907 Net (loss) income (22,565) 15,998 (32,246) (249) 16,497 (22,565) Foreign currency translation 1,108 — — 1,108 (1,108) 1,108 Comprehensive (loss) income $ (21,457) $ 15,998 $ (32,246) $ 859 $ 15,389 $ (21,457) Six Months Ended June 30, 2016 Non- Subsidiary Guarantor Guarantor Parent Issuer Subsidiaries Subsidiaries Eliminations Total Revenues Games $ — $ — $ 102,442 $ — $ — $ 102,442 Payments — 294,617 15,103 8,352 (745) 317,327 Total revenues — 294,617 117,545 8,352 (745) 419,769 Costs and expenses Games cost of revenue (exclusive of depreciation and amortization) — — 21,404 — — 21,404 Payments cost of revenue (exclusive of depreciation and amortization) — 236,949 4,548 4,658 — 246,155 Operating expenses — 37,421 23,081 981 (745) 60,738 Research and development — — 10,040 — — 10,040 Depreciation — 4,484 20,260 61 — 24,805 Amortization — 6,242 39,391 1,150 — 46,783 Total costs and expenses — 285,096 118,724 6,850 (745) 409,925 Operating income (loss) — 9,521 (1,179) 1,502 — 9,844 Other expense (income) Interest expense, net of interest income — 3,509 46,103 122 — 49,734 Equity in loss (income) of subsidiaries 23,948 (6,814) — — (17,134) — Total other expense (income) 23,948 (3,305) 46,103 122 (17,134) 49,734 (Loss) income before income tax (23,948) 12,826 (47,282) 1,380 17,134 (39,890) Income tax provision (benefit) — 1,936 (18,382) 504 — (15,942) Net (loss) income (23,948) 10,890 (28,900) 876 17,134 (23,948) Foreign currency translation (920) — — (920) 920 (920) Comprehensive (loss) income $ (24,868) $ 10,890 $ (28,900) $ (44) $ 18,054 $ (24,868) At June 30, 2017 Parent Subsidiary Guarantor Non-Guarantor Eliminations Total ASSETS Current assets Cash and cash equivalents $ — $ 105,119 $ 8,172 $ 35,342 $ — $ 148,633 Settlement receivables — 36,550 — 10,779 — 47,329 Trade and other receivables, net — 6,763 35,013 3,647 — 45,423 Inventory — 5,896 15,367 — — 21,263 Prepaid expenses and other assets — 6,376 5,256 8,863 — 20,495 Intercompany balances — 132,937 202,342 1,515 (336,794) — Total current assets — 293,641 266,150 60,146 (336,794) 283,143 Non-current assets Property, equipment and leased assets, net — 13,725 88,577 1,556 — 103,858 Goodwill — 151,417 488,511 639 — 640,567 Other intangible assets, net — 21,025 274,287 3,836 — 299,148 Other receivables — 1,394 1,354 — — 2,748 Investment in subsidiaries (123,889) 178,954 969 86 (56,120) — Deferred tax asset — 34,995 — — (34,995) — Other assets — 5,085 2,625 224 — 7,934 Intercompany balances — 1,146,516 — — (1,146,516) — Total non-current assets (123,889) 1,553,111 856,323 6,341 (1,237,631) 1,054,255 Total assets $ (123,889) $ 1,846,752 $ 1,122,473 $ 66,487 $ (1,574,425) $ 1,337,398 LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EARNINGS Current liabilities Settlement liabilities $ — $ 117,351 $ 132 $ 28,219 $ — $ 145,702 Accounts payable and accrued expenses — 81,596 28,722 2,493 — 112,811 Current portion of long-term debt — 8,200 — — — 8,200 Intercompany balances — 199,378 125,295 12,121 (336,794) — Total current liabilities — 406,525 154,149 42,833 (336,794) 266,713 Non-current liabilities Deferred tax liability — — 95,171 — (34,995) 60,176 Long-term debt, less current portion — 1,131,473 — — — 1,131,473 Other accrued expenses and liabilities — 2,619 336 — — 2,955 Intercompany balances — — 1,146,516 — (1,146,516) — Total non-current liabilities — 1,134,092 1,242,023 — (1,181,511) 1,194,604 Total liabilities — 1,540,617 1,396,172 42,833 (1,518,305) 1,461,317 Stockholders’ (deficit) equity Common stock 92 — — — — 92 Additional paid-in capital 270,083 89,779 6,352 21,108 (117,239) 270,083 Accumulated (deficit) earnings (216,864) 217,314 (279,505) 4,513 57,678 (216,864) Accumulated other comprehensive loss (958) (958) (546) (1,967) 3,441 (988) Treasury stock, at cost (176,242) — — — — (176,242) Total stockholders’ (deficit) equity (123,889) 306,135 (273,699) 23,654 (56,120) (123,919) Total liabilities and stockholders’ (deficit) equity $ (123,889) $ 1,846,752 $ 1,122,473 $ 66,487 $ (1,574,425) $ 1,337,398 At December 31, 2016 Parent Subsidiary Guarantor Non-Guarantor Eliminations Total ASSETS Current assets Cash and cash equivalents $ — $ 88,648 $ 9,103 $ 21,300 $ — $ 119,051 Settlement receivables — 122,222 — 6,599 — 128,821 Trade and other receivables, net — 9,001 41,743 5,907 — 56,651 Inventory — 6,009 13,059 — — 19,068 Prepaid expenses and other assets — 5,359 3,807 8,882 — 18,048 Intercompany balances — 106,729 188,028 1,461 (296,218) — Total current assets — 337,968 255,740 44,149 (296,218) 341,639 Non-current assets Property, equipment and leased assets, net — 15,144 81,993 1,302 — 98,439 Goodwill — 151,417 488,512 617 — 640,546 Other intangible assets, net — 23,901 289,338 4,758 — 317,997 Other receivables — 2,019 — 1 — 2,020 Investment in subsidiaries (107,751) 171,979 1,293 86 (65,607) — Deferred tax asset — 37,578 — — (37,578) — Other assets — 4,940 2,286 296 — 7,522 Intercompany balances — 1,143,115 7,851 — (1,150,966) — Total non-current assets (107,751) 1,550,093 871,273 7,060 (1,254,151) 1,066,524 Total assets $ (107,751) $ 1,888,061 $ 1,127,013 $ 51,209 $ (1,550,369) $ 1,408,163 LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY Current liabilities Settlement liabilities $ — $ 225,170 $ 268 $ 13,685 $ — $ 239,123 Accounts payable and accrued expenses — 64,192 28,970 1,229 — 94,391 Current portion of long-term debt — 10,000 — — — 10,000 Intercompany balances — 189,488 101,387 5,343 (296,218) — Total current liabilities — 488,850 130,625 20,257 (296,218) 343,514 Non-current liabilities Deferred tax liability — — 95,189 — (37,578) 57,611 Long-term debt, less current portion — 1,111,880 — — — 1,111,880 Other accrued expenses and liabilities — 2,583 368 — — 2,951 Intercompany balances — — 1,143,116 7,850 (1,150,966) — Total non-current liabilities — 1,114,463 1,238,673 7,850 (1,188,544) 1,172,442 Total liabilities — 1,603,313 1,369,298 28,107 (1,484,762) 1,515,956 Stockholders’ deficit Common stock 91 — — — — 91 Additional paid-in capital 264,755 85,499 5,314 21,093 (111,906) 264,755 Accumulated (deficit) earnings (194,299) 201,316 (247,273) 5,168 40,789 (194,299) Accumulated other comprehensive loss (2,067) (2,067) (326) (3,159) 5,510 (2,109) Treasury stock, at cost (176,231) — — — — (176,231) Total stockholders’ (deficit) equity (107,751) 284,748 (242,285) 23,102 (65,607) (107,793) Total liabilities and stockholders’ (deficit) equity $ (107,751) $ 1,888,061 $ 1,127,013 $ 51,209 $ (1,550,369) $ 1,408,163 Six Months Ended June 30, 2017 Parent Subsidiary Guarantor Non-Guarantor Eliminations Total Cash flows from operating activities Net loss (loss) $ (22,565) $ 15,998 $ (32,246) $ (249) $ 16,497 $ (22,565) Adjustments to reconcile net loss (income) to cash provided by operating activities: Depreciation and amortization — 8,938 46,858 1,194 — 56,990 Amortization of financing costs — 3,186 — — — 3,186 Loss on sale or disposal of assets — 331 1,068 — — 1,399 Accretion of contract rights — — 3,909 — — 3,909 Provision for bad debts — (179) 5,349 — — 5,170 Reserve for obsolescence — 258 8 — — 266 Loss on early extinguishment of debt — 14,615 — — — 14,615 Equity in loss (income) of subsidiaries 22,565 (5,986) (82) — (16,497) — Stock-based compensation — 2,442 1,038 — — 3,480 Changes in operating assets and liabilities: Net settlement receivables and liabilities — (22,146) (135) 10,392 — (11,889) Other changes in operating assets and liabilities 51 1,020 15,578 2,784 — 19,433 Net cash provided by operating activities 51 18,477 41,345 14,121 — 73,994 Cash flows from investing activities Capital expenditures — (3,858) (39,302) (536) — (43,696) Proceeds from sale of fixed assets — 2 — — — 2 Placement fee agreements — — (3,044) — — (3,044) Changes in restricted cash and cash equivalents — 49 (130) — — (81) Intercompany investing activities (1,839) 1,953 200 (97) (217) — Net cash used in investing activities (1,839) (1,854) (42,276) (633) (217) (46,819) Cash flows from financing activities Repayments of prior credit facility — (465,600) — — — (465,600) Repayments of secured notes — (335,000) — — — (335,000) Proceeds from current credit facility — 820,000 — — — 820,000 Debt issuance costs and discounts — (19,663) — — — (19,663) Proceeds from exercise of stock options 1,799 — — — — 1,799 Purchase of treasury stock (11) — — — — (11) Intercompany financing activities — 111 — (328) 217 — Net cash provided by (used in) financing activities 1,788 (152) — (328) 217 1,525 Effect of exchange rates on cash — — — 882 — 882 Cash and cash equivalents Net increase (decrease) for the period — 16,471 (931) 14,042 — 29,582 Balance, beginning of the period — 88,648 9,103 21,300 — 119,051 Balance, end of the period $ — $ 105,119 $ 8,172 $ 35,342 $ — $ 148,633 Six Months Ended June 30, 2016 Parent Subsidiary Guarantor Non-Guarantor Eliminations Total Cash flows from operating activities Net (loss) income $ (23,948) $ 10,890 $ (28,900) $ 876 $ 17,134 $ (23,948) Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities: Depreciation and amortization — 10,726 59,651 1,211 — 71,588 Amortization of financing costs — 3,349 — — — 3,349 Loss on sale or disposal of assets — 924 764 — — 1,688 Accretion of contract rights — — 4,339 — — 4,339 Provision for bad debts — 17 4,938 — — 4,955 Write-down of assets — — 4,289 4,289 Reserve for obsolescence — 365 302 — — 667 Equity in loss (income) of subsidiaries 23,948 (6,814) — — (17,134) — Stock-based compensation — 1,929 839 — — 2,768 Changes in operating assets and liabilities: Net settlement receivables and liabilities — (21,968) (25) 1,523 — (20,470) Other changes in operating assets and liabilities 1 (4,950) 12,017 119 — 7,187 Net cash provided by (used in) operating activities 1 (5,532) 58,214 3,729 — 56,412 Cash flows from investing activities Capital expenditures — (5,953) (40,452) (104) — (46,509) Proceeds from sale of fixed assets — 4,608 — — — 4,608 Placement fee agreements — — (11,187) — — (11,187) Changes in restricted cash and cash equivalents — 54 — — — 54 Intercompany investing activities 6 586 99 (45) (646) — Net cash provided by (used in) investing activities 6 (705) (51,540) (149) (646) (53,034) Cash flows from financing activities Repayments of prior credit facility — (19,400) — — — (19,400) Debt issuance costs and discounts — (480) — — — (480) Purchase of treasury stock (13) — — — — (13) Intercompany financing activities — 42 — (688) 646 — Net cash used in financing activities (13) (19,838) — (688) 646 (19,893) Effect of exchange rates on cash — — — (411) — (411) Cash and cash equivalents Ne t(decrease) increase for the period (6) (26,075) 6,674 2,481 — (16,926) Balance, beginning of the period 6 87,078 3,900 11,046 — 102,030 Balance, end of the period $ — $ 61,003 $ 10,574 $ 13,527 $ — $ 85,104

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2017
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	19. SUBSEQUENT EVENTS As of the filing date, we had not identified, and were not aware of, any subsequent event for the period.

BASIS OF PRESENTATION AND SUM25

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation Our unaudited Condensed Consolidated Financial Statements included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Some of the information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to such rules and regulations, although we believe the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary for a fair presentation of results for the interim periods have been made. The results for the three and six months ended June 30, 2017 are not necessarily indicative of results to be expected for the full fiscal year. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016. There have been no changes to our basis of presentation and significant accounting policies since the most recent filing of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016.
Fair Values of Financial Instruments	Fair Values of Financial Instruments The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time, based upon relevant market information about the financial instrument. The carrying amount of cash and cash equivalents, settlement receivables, trade receivables, other receivables, settlement liabilities, accounts payable and accrued expenses approximates fair value due to the short-term maturities of these instruments. The fair value of our borrowings are estimated based on various inputs to determine a market price, such as: market demand and supply, size of tranche, maturity and similar instruments trading in more active markets. Level of Fair Value Outstanding June 30, 2017 Term loan 2 $ 827,421 $ 820,000 Senior unsecured notes 1 $ 384,125 $ 350,000 December 31, 2016 Term loan 1 $ 451,632 $ 465,600 Senior secured notes 3 $ 324,950 $ 335,000 Senior unsecured notes 1 $ 350,000 $ 350,000 The new term loan facility was reported at fair value using a Level 2 input as there were quoted prices in markets that were not considered active as of June 30, 2017. The senior unsecured notes were reported at fair value using a Level 1 input as there were quoted prices in markets that were considered active as of June 30, 2017. The term loan was reported at fair value using a Level 1 input as there were quoted prices in markets that were considered active as of December 31, 2016. The senior secured notes were reported at fair value using a Level 3 input as there was no market activity or observable inputs as of December 31, 2016. The senior unsecured notes were reported at fair value using a Level 1 input as there were quoted prices in markets that were considered active as of December 31, 2016.
Reclassification of Prior Year Balances	Reclassification of Prior Year Balances Reclassifications were made to the prior-period financial statements to conform to the current period presentation.
Recent Accounting Guidance	Recent Accounting Guidance Recently Adopted Accounting Guidance In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04, which provides updated guidance on the goodwill impairment test and the method by which an entity recognizes an impairment charge. These amendments eliminate Step 2 from the current goodwill impairment process and require that an entity recognize an impairment charge equal to the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Additionally, a company should also take into consideration income tax effects from tax deductible goodwill on the carrying amount of a reporting unit when recording an impairment loss. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This guidance will be applied using a prospective approach. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We adopted this guidance in the current period. As no indicators of impairment were identified for our goodwill during the three months ended June 30, 2017, this ASU did not impact our Condensed Consolidated Financial Statements and disclosures included within Notes to Unaudited Condensed Consolidated Financial Statements. In March 2016, the FASB issued ASU No. 2016-09, which simplifies several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, statutory tax withholding requirements and classification on the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. This guidance will be applied either prospectively, retrospectively or using a modified retrospective transition method, depending on the area covered in this update. Early adoption is permitted. We adopted this guidance in the current period on a prospective basis. As of June 30, 2017, the adoption of ASU No. 2016-09 has not impacted our Condensed Consolidated Financial Statements. With respect to forfeitures, the Company will continue to estimate the number of awards expected to be forfeited in accordance with our existing accounting policy. In addition, our Condensed Consolidated Statements of Cash Flows present excess tax benefits as operating activities in the current period, as the prior period was not adjusted. In July 2015, the FASB issued ASU No. 2015-11, which provides guidance on the measurement of inventory value. The amendments require an entity to measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory measured using last-in, first-out (“LIFO”) or the retail inventory method. The amendments do not apply to inventory that is measured using LIFO or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (“FIFO”) or average cost. The pronouncement is effective for annual periods beginning after December 15, 2016, and interim periods within those fiscal years, and early adoption is permitted. We adopted this guidance in the current period. This ASU did not have a material impact on our Condensed Consolidated Financial Statements and disclosures included within the Notes to Unaudited Condensed Consolidated Financial Statements. Recent Accounting Guidance Not Yet Adopted In May 2017, the FASB issued ASU No. 2017-09 to clarify which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. An entity is required to account for the effects of a modification unless all of the following conditions are met: (i) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or value using an alternative measurement method) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification; (ii) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (iii) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted in the first period of the year this guidance is adopted. We are currently evaluating the impact of adopting this guidance on our Condensed Consolidated Financial Statements and disclosures included within Notes to Unaudited Condensed Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-01, which clarifies the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance will be applied using a prospective approach as of the beginning of the first period of adoption. Early adoption is permitted for acquisitions, or disposals that occur before the issuance date or effectiveness date of the amendments when the transaction has not been reported in financial statements that have been issued or made available for issuance. We are currently evaluating the impact of adopting this guidance on our Condensed Consolidated Financial Statements and disclosures included within Notes to Unaudited Condensed Consolidated Financial Statements. In October 2016, the FASB issued ASU No. 2016-18, which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments do not provide a definition of restricted cash or restricted cash equivalents. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance will be applied using a retrospective approach to each period presented. Early adoption is permitted and adoption in an interim period should reflect adjustments as of the beginning of the fiscal year that includes that interim period. We are currently evaluating the impact of adopting this guidance on our Condensed Consolidated Financial Statements and disclosures included within Notes to Unaudited Condensed Consolidated Financial Statements. In October 2016, the FASB issued ASU No. 2016-16, which provides updated guidance on the recognition of the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs, and this eliminates the exception for an intra-entity transfer of such assets. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance will be applied using a modified retrospective approach through a cumulative-effective adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted during the first interim period of the year this guidance is adopted. We are currently evaluating the impact of adopting this guidance on our Condensed Consolidated Financial Statements and disclosures included within Notes to Unaudited Condensed Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, which provides updated guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance will be applied using a retrospective approach. If it is impracticable to apply the amendments retrospectively for some of the issues within this ASU, the amendments for those issues would be applied prospectively as of the earliest date practicable. Early adoption is permitted including adoption in an interim period. We are currently evaluating the impact of adopting this guidance on our Condensed Consolidated Financial Statements and disclosures included within Notes to Unaudited Condensed Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, which provides updated guidance on credit losses for financial assets measured at amortized cost basis and available-for sale debt securities. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This guidance will be applied using a modified retrospective approach for the cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective and using a prospective approach for debt securities for which any other-than-temporary impairment had been recognized before the effective date. Early adoption is permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the impact of adopting this guidance on our Condensed Consolidated Financial Statements and disclosures included within Notes to Unaudited Condensed Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, which provides guidance on the accounting treatment of leases. The ASU establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years and early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While we are currently assessing the impact of this ASU on our Condensed Consolidated Financial Statements, we expect the primary impact to our consolidated financial position upon adoption will be the recognition, on a discounted basis, of our minimum commitments under noncancelable operating leases on our Condensed Consolidated Balance Sheets, which will result in the recording of right of use assets and lease obligations and are currently discussed in “Note 12 — Commitments and Contingencies.” In May 2014, the FASB issued ASU No. 2014-09, which creates FASB Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers” and supersedes ASC Topic 605, “Revenue Recognition”. The guidance replaces industry-specific guidance and establishes a single five-step model to identify and recognize revenue. The core principle of the guidance is that an entity should recognize revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires the entity to disclose further quantitative and qualitative information regarding the nature and amount of revenues arising from contracts with customers, as well as other information about the significant judgments and estimates used in recognizing revenues from contracts with customers. The guidance in ASU 2014-09 was further updated by ASU 2016-08 in March 2016, which provides clarification on the implementation of the principal versus agent considerations in ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, which provides clarification on the implementation of performance obligations and licensing in ASU 2014-09. In May 2016, the FASB issued ASU 2016-11, which amends guidance provided in two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force meeting over various topics relating to ASU 606. In May 2016, the FASB issued ASU 2016-12, which clarified various topics in ASU 606. In December 2016, the FASB issued ASU 2016-20, which clarified additional topics in ASU 606. This guidance was originally effective for interim and annual reporting periods beginning after December 15, 2016. However, in August 2015, the FASB issued ASU No. 2015-14, which extended the effective date to interim and annual periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2015, including interim reporting periods within that reporting period. This guidance may be adopted retrospectively or under a modified retrospective method where the cumulative effect is recognized at the date of initial application. We have performed a review of the requirements of the standard and identified our major revenue streams and the anticipated impact to each of them: Major Revenue Stream Preliminary Expected Impact Upon Adoption Games Segment: Game Sales We expect revenue recognition to be consistent with our current practices, however, there may be some differences as we continue to evaluate the implications. Game Operations We expect revenue recognition to be consistent with our current practices, however, with respect to our Wide- Area Progressive, or WAP, offering(s), for which we initiated this year, we will be required to net the direct costs with Games revenues as opposed to our existing practice of recording those amounts to Games cost of revenues. WAP jackpot expense was approximately $0.1 million for the three and six months ended June 30, 2017. Payments Segment: Cash Advance, ATM, Check Services and Central Credit We expect revenue recognition to be consistent with our current practices, however, there may be some differences as we continue to evaluate the implications. If we do encounter changes to the Kiosk Sales and Services and Compliance Sales and Services offerings, there may be some level of impact to these other Payments related revenue streams as we continue to evaluate the implications. Kiosk Sales and Services We expect to encounter some level of change to our revenue recognition practices for these revenue streams under the new guidance, however, the amounts are not anticipated to be material as we continue to evaluate the implications. Compliance Sales and Services We expect to encounter some level of change to our revenue recognition practices for these revenue streams under the new guidance, however, the amounts are not anticipated to be material as we continue to evaluate the implications. Based on reviews performed thus far, we do not expect our Games or Payments revenues to be materially impacted by the implementation of this guidance. As we continue to take the necessary measures of preparedness in connection with the adoption of the new revenue recognition standard, we continue to do the following: · Evaluate our revenue streams to determine the extent, if any, of the changes to the timing and amount of revenue recorded in each reporting period. · Review our existing accounting policies, procedures and internal controls to further determine the impact of the new standard on our Condensed Consolidated Financial Statements and disclosures included within Notes to Unaudited Condensed Consolidated Financial Statements. · Prepare the enhanced disclosures and updates to our revenue recognition policies to identify performance obligations to customers and that will require significant judgment in both measurement and recognition. · Review in detail our sales contract terms and conditions to determine the necessary adjustments, if any. · Monitor the activity of the FASB and the transition resource group as it relates to specific interpretive guidance that may impact us. We may identify other impacts from the implementation of this guidance as we continue our assessment. We expect to adopt this guidance using the retrospective method beginning in the first quarter of 2018.

BASIS OF PRESENTATION AND SUM26

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of fair value and carrying value of borrowings	Level of Fair Value Outstanding June 30, 2017 Term loan 2 $ 827,421 $ 820,000 Senior unsecured notes 1 $ 384,125 $ 350,000 December 31, 2016 Term loan 1 $ 451,632 $ 465,600 Senior secured notes 3 $ 324,950 $ 335,000 Senior unsecured notes 1 $ 350,000 $ 350,000

TRADE AND OTHER RECEIVABLES (Ta

TRADE AND OTHER RECEIVABLES (Tables)	6 Months Ended
	Jun. 30, 2017
TRADE AND OTHER RECEIVABLES
Schedule of components of trade and other receivables	The balance of trade and other receivables consisted of the following (in thousands): At June 30, At December 31, 2017 2016 Trade and other receivables, net Games trade and loans receivables $ 36,520 $ 44,410 Payments trade and loans receivables 10,563 12,337 Other receivables 1,088 1,924 Total trade and other receivables, net $ 48,171 $ 58,671 Less: non-current portion of receivables 2,748 2,020 Total trade and other receivables, current portion $ 45,423 $ 56,651

PREPAID AND OTHER ASSETS (Table

PREPAID AND OTHER ASSETS (Tables)	6 Months Ended
	Jun. 30, 2017
PREPAID AND OTHER ASSETS
Schedule of components of current portion of prepaid and other assets	The balance of the current portion of prepaid and other assets consisted of the following (in thousands): At June 30, At December 31, 2017 2016 Prepaid expenses and other assets Deposits $ 8,915 $ 8,622 Prepaid expenses 8,205 5,937 Other 3,375 3,489 Total prepaid expenses and other assets $ 20,495 $ 18,048
Schedule of components of non-current portion of prepaid and other assets	The balance of the non-current portion of other assets consisted of the following (in thousands): At June 30, At December 31, 2017 2016 Other assets Prepaid expenses and deposits $ 3,732 $ 3,399 Debt issuance costs of revolving credit facility 944 689 Other 3,258 3,434 Total other assets $ 7,934 $ 7,522

INVENTORY (Tables)

INVENTORY (Tables)	6 Months Ended
	Jun. 30, 2017
INVENTORY
Schedule of components of inventory	Inventory consisted of the following (in thousands): At June 30, At December 31, 2017 2016 Inventory Raw materials and component parts, net of reserves of $1,985 and $2,155 at June 30, 2017 and December 31, 2016, respectively $ 13,776 $ 12,570 Work-in-progress 3,380 1,502 Finished goods 4,107 4,996 Total inventory $ 21,263 $ 19,068

PROPERTY, EQUIPMENT AND LEASE30

PROPERTY, EQUIPMENT AND LEASED ASSETS (Tables)	6 Months Ended
	Jun. 30, 2017
PROPERTY, EQUIPMENT AND LEASED ASSETS
Schedule of components of property, equipment and leased assets	Property, equipment and leased assets consist of the following (in thousands): At June 30, 2017 At December 31, 2016 Useful Life Accumulated Net Book Accumulated Net Book (Years) Cost Depreciation Value Cost Depreciation Value Property, equipment and leased assets Rental pool - deployed - 4 $ 140,620 $ 67,803 $ 72,817 $ 123,812 $ 59,188 $ 64,624 Rental pool - undeployed - 4 16,050 8,673 7,377 13,456 5,721 7,735 ATM equipment 5 16,694 12,127 4,567 16,537 11,189 5,348 Leasehold and building improvements Lease Term 10,387 4,422 5,965 10,023 3,698 6,325 Cash advance equipment 3 8,363 4,993 3,370 8,590 4,499 4,091 Machinery, office and other equipment - 5 31,989 22,227 9,762 30,424 20,108 10,316 Total $ 224,103 $ 120,245 $ 103,858 $ 202,842 $ 104,403 $ 98,439

GOODWILL AND OTHER INTANGIBLE31

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2017
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of components of other intangible assets	Other intangible assets consist of the following (in thousands): At June 30, 2017 At December 31, 2016 Useful Life Accumulated Net Book Accumulated Net Book (years) Cost Amortization Value Cost Amortization Value Other intangible assets Contract rights under placement fee agreements - 7 $ 19,168 $ 8,572 $ 10,596 $ 17,742 $ 6,281 $ 11,461 Customer contracts - 14 50,975 42,097 8,878 50,975 40,419 10,556 Customer relationships - 12 231,100 53,171 177,929 231,100 42,688 188,412 Developed technology and software - 6 236,664 143,997 92,667 224,265 126,721 97,544 Patents, trademarks and other - 17 28,949 19,871 9,078 27,771 17,747 10,024 Total $ 566,856 $ 267,708 $ 299,148 $ 551,853 $ 233,856 $ 317,997

ACCOUNTS PAYABLE AND ACCRUED 32

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	6 Months Ended
	Jun. 30, 2017
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Schedule of accounts payable and accrued expenses	The following table presents our accounts payable and accrued expenses (in thousands): At June 30, At December 31, 2017 2016 Accounts payable and accrued expenses Trade accounts payable $ 58,421 $ 55,352 Accrued interest 16,270 82 Payroll and related expenses 10,020 12,305 Deferred and unearned revenues 10,413 9,222 Cash access processing and related expenses 5,683 7,001 Accrued taxes 2,357 2,587 Other 9,647 7,842 Total accounts payable and accrued expenses $ 112,811 $ 94,391

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	6 Months Ended
	Jun. 30, 2017
LONG-TERM DEBT
Schedule of outstanding indebtedness	The following table summarizes our outstanding indebtedness (in thousands): At June 30, At December 31, 2017 2016 Long-term debt Senior secured term loan $ 820,000 $ 465,600 Senior secured notes — 335,000 Senior unsecured notes 350,000 350,000 Total debt 1,170,000 1,150,600 Less: debt issuance costs and discount (30,327) (28,720) Total debt after debt issuance costs and discount 1,139,673 1,121,880 Less: current portion of long-term debt (8,200) (10,000) Long-term debt, less current portion $ 1,131,473 $ 1,111,880

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES (Tables)	6 Months Ended
	Jun. 30, 2017
WEIGHTED AVERAGE COMMON SHARES
Schedule of weighted average number of common shares outstanding used in computation of basic and diluted earnings per share	Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Weighted average shares Weighted average number of common shares outstanding - basic 66,350 66,041 66,221 66,038 Potential dilution from equity grants (1) — — — — Weighted average number of common shares outstanding - diluted 66,350 66,041 66,221 66,038 (1) The Company was in a net loss position for the three and six months ended June 30, 2017 and 2016; therefore, no potential dilution from the application of the treasury stock method was applicable. Equity awards to purchase approximately 11.9 million and 15.3 million shares of common stock for the three and six months ended June 30, 2017, respectively, and 17.1 million and 15.9 million shares of common stock for the three and six months ended June 30, 2016, respectively, were excluded from the computation of diluted net loss per share as this effect would have been antidilutive.

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2017
Equity Incentive Awards
Summary of award activity	A summary of award activity is as follows (in thousands): Stock Options Restricted Stock Granted Granted Outstanding, December 31, 2016 18,233 80 Additional authorized shares — — Granted 4,061 40 Exercised options or vested shares (575) (11) Cancelled or forfeited (200) — Outstanding, June 30, 2017 21,519 109
Summary of options activity	Weighted Number of Weighted Average Average Life Aggregate Common Shares Exercise Price Remaining Intrinsic Value (in thousands) (per share) (years) (in thousands) Outstanding, December 31, 2016 18,233 $ 6.02 6.4 $ 2,387 Granted 4,061 3.34 Exercised (575) 3.21 Canceled or forfeited (200) 4.68 Outstanding, June 30, 2017 21,519 $ 5.60 6.6 $ 44,789 Vested and expected to vest, June 30, 2017 18,835 $ 5.73 6.5 $ 37,328 Exercisable, June 30, 2017 10,769 $ 6.90 4.9 $ 11,413
Summary of non-vested share awards for time-based restricted shares	Weighted Shares Average Grant Outstanding Date Fair Value (in thousands) (per share) Outstanding, December 31, 2016 80 $ 7.12 Granted 40 6.66 Vested (11) 7.03 Forfeited — — Outstanding, June 30, 2017 109 $ 6.96
Time Based Options
Equity Incentive Awards
Schedule assumptions used to determine fair value	Six months ended June 30, 2017 2016 Risk-free interest rate 2 % 1 % Expected life of options (in years) 6 5 Expected volatility 54 % 51 % Expected dividend yield — % — %
Market Performance Based Options
Equity Incentive Awards
Schedule assumptions used to determine fair value	Six months ended June 30, 2017 2016 Risk-free interest rate 3 % 2 % Measurement period (in years) 10 10 Expected volatility 70 % 68 % Expected dividend yield — % — %

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2017
SEGMENT INFORMATION
Schedule of segment information	The following tables present segment information (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Revenues Games $ 55,104 $ 54,264 $ 110,380 $ 102,442 Payments 187,126 159,736 369,387 317,327 Total revenues $ 242,230 $ 214,000 $ 479,767 $ 419,769 Operating income (loss) Games $ 2,722 $ (7,210) $ 7,513 $ (10,456) Payments 18,570 13,270 36,382 20,300 Total operating income $ 21,292 $ 6,060 $ 43,895 $ 9,844 At June 30, 2017 At December 31, 2016 Total assets Games $ 879,961 $ 894,213 Payments 457,437 513,950 Total assets $ 1,337,398 $ 1,408,163

CONDENSED CONSOLIDATING FINAN37

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2017
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
Schedule of condensed consolidating statements of income and comprehensive income	Three Months Ended June 30, 2017 Parent Subsidiary Guarantor Non-Guarantor Eliminations Total Revenues Games $ — $ — $ 54,702 $ 3,266 $ (2,864) $ 55,104 Payments — 173,387 7,794 8,319 (2,374) 187,126 Total revenues — 173,387 62,496 11,585 (5,238) 242,230 Costs and expenses Games cost of revenue (exclusive of depreciation and amortization) — — 12,883 1,632 (1,276) 13,239 Payments cost of revenue (exclusive of depreciation and amortization) — 136,639 2,508 6,320 — 145,467 Operating expenses — 17,351 11,040 4,350 (3,962) 28,779 Research and development — — 4,596 22 — 4,618 Depreciation — 1,679 9,601 116 — 11,396 Amortization — 2,616 14,344 479 — 17,439 Total costs and expenses — 158,285 54,972 12,919 (5,238) 220,938 Operating income (loss) — 15,102 7,524 (1,334) — 21,292 Other expenses (income) Interest expense, net of interest income — 512 23,153 216 — 23,881 Equity in loss (income) of subsidiaries 19,057 (1,805) 21 — (17,273) — Loss on extinguishment of debt — 14,615 — — — 14,615 Total other expenses 19,057 13,322 23,174 216 (17,273) 38,496 (Loss) income before income tax (19,057) 1,780 (15,650) (1,550) 17,273 (17,204) Income tax provision (benefit) — 414 1,670 (231) — 1,853 Net (loss) income (19,057) 1,366 (17,320) (1,319) 17,273 (19,057) Foreign currency translation 836 — — 836 (836) 836 Comprehensive (loss) income $ (18,221) $ 1,366 $ (17,320) $ (483) $ 16,437 $ (18,221) Three Months Ended June 30, 2016 Parent Subsidiary Guarantor Non-Guarantor Eliminations Total Revenues Games $ — $ — $ 54,264 $ — $ — $ 54,264 Payments — 148,231 7,685 4,194 (374) 159,736 Total revenues — 148,231 61,949 4,194 (374) 214,000 Costs and expenses Games cost of revenue (exclusive of depreciation and amortization) — — 12,968 — — 12,968 Payments cost of revenue (exclusive of depreciation and amortization) — 118,885 2,206 2,407 — 123,498 Operating expenses — 16,496 14,107 504 (374) 30,733 Research and development — — 4,671 — — 4,671 Depreciation — 1,965 10,474 31 — 12,470 Amortization — 3,142 19,888 570 — 23,600 Total costs and expenses — 140,488 64,314 3,512 (374) 207,940 Operating income (loss) — 7,743 (2,365) 682 — 6,060 Other expense (income) Interest expense, net of interest income — 1,576 23,105 61 — 24,742 Equity in loss (income) of subsidiaries 10,796 (3,520) — — (7,276) — Total other expense (income) 10,796 (1,944) 23,105 61 (7,276) 24,742 (Loss) income before income tax (10,796) 9,687 (25,470) 621 7,276 (18,682) Income tax provision (benefit) — 1,823 (9,960) 251 — (7,886) Net (loss) income (10,796) 7,864 (15,510) 370 7,276 (10,796) Foreign currency translation (435) — — (435) 435 (435) Comprehensive (loss) income $ (11,231) $ 7,864 $ (15,510) $ (65) $ 7,711 $ (11,231) Six Months Ended June 30, 2017 Non- Subsidiary Guarantor Guarantor Parent Issuer Subsidiaries Subsidiaries Eliminations Total Revenues Games $ — $ — $ 110,220 $ 3,706 $ (3,546) $ 110,380 Payments — 340,060 15,482 16,369 (2,524) 369,387 Total revenues — 340,060 125,702 20,075 (6,070) 479,767 Costs and expenses Games cost of revenue (exclusive of depreciation and amortization) — — 25,802 1,839 (1,958) 25,683 Payments cost of revenue (exclusive of depreciation and amortization) — 269,739 4,689 11,838 — 286,266 Operating expenses — 34,894 22,098 4,892 (4,112) 57,772 Research and development — — 9,134 27 — 9,161 Depreciation — 3,442 18,552 232 — 22,226 Amortization — 5,496 28,306 962 — 34,764 Total costs and expenses — 313,571 108,581 19,790 (6,070) 435,872 Operating income — 26,489 17,121 285 — 43,895 Other expense (income) Interest expense, net of interest income — 2,508 46,049 381 — 48,938 Equity in income (loss) of subsidiaries 22,565 (5,986) (82) — (16,497) — Loss on extinguishment of debt — 14,615 — — — 14,615 Total other expense 22,565 11,137 45,967 381 (16,497) 63,553 (Loss) income before income tax (22,565) 15,352 (28,846) (96) 16,497 (19,658) Income tax (benefit) provision — (646) 3,400 153 — 2,907 Net (loss) income (22,565) 15,998 (32,246) (249) 16,497 (22,565) Foreign currency translation 1,108 — — 1,108 (1,108) 1,108 Comprehensive (loss) income $ (21,457) $ 15,998 $ (32,246) $ 859 $ 15,389 $ (21,457) Six Months Ended June 30, 2016 Non- Subsidiary Guarantor Guarantor Parent Issuer Subsidiaries Subsidiaries Eliminations Total Revenues Games $ — $ — $ 102,442 $ — $ — $ 102,442 Payments — 294,617 15,103 8,352 (745) 317,327 Total revenues — 294,617 117,545 8,352 (745) 419,769 Costs and expenses Games cost of revenue (exclusive of depreciation and amortization) — — 21,404 — — 21,404 Payments cost of revenue (exclusive of depreciation and amortization) — 236,949 4,548 4,658 — 246,155 Operating expenses — 37,421 23,081 981 (745) 60,738 Research and development — — 10,040 — — 10,040 Depreciation — 4,484 20,260 61 — 24,805 Amortization — 6,242 39,391 1,150 — 46,783 Total costs and expenses — 285,096 118,724 6,850 (745) 409,925 Operating income (loss) — 9,521 (1,179) 1,502 — 9,844 Other expense (income) Interest expense, net of interest income — 3,509 46,103 122 — 49,734 Equity in loss (income) of subsidiaries 23,948 (6,814) — — (17,134) — Total other expense (income) 23,948 (3,305) 46,103 122 (17,134) 49,734 (Loss) income before income tax (23,948) 12,826 (47,282) 1,380 17,134 (39,890) Income tax provision (benefit) — 1,936 (18,382) 504 — (15,942) Net (loss) income (23,948) 10,890 (28,900) 876 17,134 (23,948) Foreign currency translation (920) — — (920) 920 (920) Comprehensive (loss) income $ (24,868) $ 10,890 $ (28,900) $ (44) $ 18,054 $ (24,868)
Schedule of condensed consolidating balance sheets	At June 30, 2017 Parent Subsidiary Guarantor Non-Guarantor Eliminations Total ASSETS Current assets Cash and cash equivalents $ — $ 105,119 $ 8,172 $ 35,342 $ — $ 148,633 Settlement receivables — 36,550 — 10,779 — 47,329 Trade and other receivables, net — 6,763 35,013 3,647 — 45,423 Inventory — 5,896 15,367 — — 21,263 Prepaid expenses and other assets — 6,376 5,256 8,863 — 20,495 Intercompany balances — 132,937 202,342 1,515 (336,794) — Total current assets — 293,641 266,150 60,146 (336,794) 283,143 Non-current assets Property, equipment and leased assets, net — 13,725 88,577 1,556 — 103,858 Goodwill — 151,417 488,511 639 — 640,567 Other intangible assets, net — 21,025 274,287 3,836 — 299,148 Other receivables — 1,394 1,354 — — 2,748 Investment in subsidiaries (123,889) 178,954 969 86 (56,120) — Deferred tax asset — 34,995 — — (34,995) — Other assets — 5,085 2,625 224 — 7,934 Intercompany balances — 1,146,516 — — (1,146,516) — Total non-current assets (123,889) 1,553,111 856,323 6,341 (1,237,631) 1,054,255 Total assets $ (123,889) $ 1,846,752 $ 1,122,473 $ 66,487 $ (1,574,425) $ 1,337,398 LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EARNINGS Current liabilities Settlement liabilities $ — $ 117,351 $ 132 $ 28,219 $ — $ 145,702 Accounts payable and accrued expenses — 81,596 28,722 2,493 — 112,811 Current portion of long-term debt — 8,200 — — — 8,200 Intercompany balances — 199,378 125,295 12,121 (336,794) — Total current liabilities — 406,525 154,149 42,833 (336,794) 266,713 Non-current liabilities Deferred tax liability — — 95,171 — (34,995) 60,176 Long-term debt, less current portion — 1,131,473 — — — 1,131,473 Other accrued expenses and liabilities — 2,619 336 — — 2,955 Intercompany balances — — 1,146,516 — (1,146,516) — Total non-current liabilities — 1,134,092 1,242,023 — (1,181,511) 1,194,604 Total liabilities — 1,540,617 1,396,172 42,833 (1,518,305) 1,461,317 Stockholders’ (deficit) equity Common stock 92 — — — — 92 Additional paid-in capital 270,083 89,779 6,352 21,108 (117,239) 270,083 Accumulated (deficit) earnings (216,864) 217,314 (279,505) 4,513 57,678 (216,864) Accumulated other comprehensive loss (958) (958) (546) (1,967) 3,441 (988) Treasury stock, at cost (176,242) — — — — (176,242) Total stockholders’ (deficit) equity (123,889) 306,135 (273,699) 23,654 (56,120) (123,919) Total liabilities and stockholders’ (deficit) equity $ (123,889) $ 1,846,752 $ 1,122,473 $ 66,487 $ (1,574,425) $ 1,337,398 At December 31, 2016 Parent Subsidiary Guarantor Non-Guarantor Eliminations Total ASSETS Current assets Cash and cash equivalents $ — $ 88,648 $ 9,103 $ 21,300 $ — $ 119,051 Settlement receivables — 122,222 — 6,599 — 128,821 Trade and other receivables, net — 9,001 41,743 5,907 — 56,651 Inventory — 6,009 13,059 — — 19,068 Prepaid expenses and other assets — 5,359 3,807 8,882 — 18,048 Intercompany balances — 106,729 188,028 1,461 (296,218) — Total current assets — 337,968 255,740 44,149 (296,218) 341,639 Non-current assets Property, equipment and leased assets, net — 15,144 81,993 1,302 — 98,439 Goodwill — 151,417 488,512 617 — 640,546 Other intangible assets, net — 23,901 289,338 4,758 — 317,997 Other receivables — 2,019 — 1 — 2,020 Investment in subsidiaries (107,751) 171,979 1,293 86 (65,607) — Deferred tax asset — 37,578 — — (37,578) — Other assets — 4,940 2,286 296 — 7,522 Intercompany balances — 1,143,115 7,851 — (1,150,966) — Total non-current assets (107,751) 1,550,093 871,273 7,060 (1,254,151) 1,066,524 Total assets $ (107,751) $ 1,888,061 $ 1,127,013 $ 51,209 $ (1,550,369) $ 1,408,163 LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY Current liabilities Settlement liabilities $ — $ 225,170 $ 268 $ 13,685 $ — $ 239,123 Accounts payable and accrued expenses — 64,192 28,970 1,229 — 94,391 Current portion of long-term debt — 10,000 — — — 10,000 Intercompany balances — 189,488 101,387 5,343 (296,218) — Total current liabilities — 488,850 130,625 20,257 (296,218) 343,514 Non-current liabilities Deferred tax liability — — 95,189 — (37,578) 57,611 Long-term debt, less current portion — 1,111,880 — — — 1,111,880 Other accrued expenses and liabilities — 2,583 368 — — 2,951 Intercompany balances — — 1,143,116 7,850 (1,150,966) — Total non-current liabilities — 1,114,463 1,238,673 7,850 (1,188,544) 1,172,442 Total liabilities — 1,603,313 1,369,298 28,107 (1,484,762) 1,515,956 Stockholders’ deficit Common stock 91 — — — — 91 Additional paid-in capital 264,755 85,499 5,314 21,093 (111,906) 264,755 Accumulated (deficit) earnings (194,299) 201,316 (247,273) 5,168 40,789 (194,299) Accumulated other comprehensive loss (2,067) (2,067) (326) (3,159) 5,510 (2,109) Treasury stock, at cost (176,231) — — — — (176,231) Total stockholders’ (deficit) equity (107,751) 284,748 (242,285) 23,102 (65,607) (107,793) Total liabilities and stockholders’ (deficit) equity $ (107,751) $ 1,888,061 $ 1,127,013 $ 51,209 $ (1,550,369) $ 1,408,163
Schedule of condensed consolidating cash flows	Six Months Ended June 30, 2017 Parent Subsidiary Guarantor Non-Guarantor Eliminations Total Cash flows from operating activities Net loss (loss) $ (22,565) $ 15,998 $ (32,246) $ (249) $ 16,497 $ (22,565) Adjustments to reconcile net loss (income) to cash provided by operating activities: Depreciation and amortization — 8,938 46,858 1,194 — 56,990 Amortization of financing costs — 3,186 — — — 3,186 Loss on sale or disposal of assets — 331 1,068 — — 1,399 Accretion of contract rights — — 3,909 — — 3,909 Provision for bad debts — (179) 5,349 — — 5,170 Reserve for obsolescence — 258 8 — — 266 Loss on early extinguishment of debt — 14,615 — — — 14,615 Equity in loss (income) of subsidiaries 22,565 (5,986) (82) — (16,497) — Stock-based compensation — 2,442 1,038 — — 3,480 Changes in operating assets and liabilities: Net settlement receivables and liabilities — (22,146) (135) 10,392 — (11,889) Other changes in operating assets and liabilities 51 1,020 15,578 2,784 — 19,433 Net cash provided by operating activities 51 18,477 41,345 14,121 — 73,994 Cash flows from investing activities Capital expenditures — (3,858) (39,302) (536) — (43,696) Proceeds from sale of fixed assets — 2 — — — 2 Placement fee agreements — — (3,044) — — (3,044) Changes in restricted cash and cash equivalents — 49 (130) — — (81) Intercompany investing activities (1,839) 1,953 200 (97) (217) — Net cash used in investing activities (1,839) (1,854) (42,276) (633) (217) (46,819) Cash flows from financing activities Repayments of prior credit facility — (465,600) — — — (465,600) Repayments of secured notes — (335,000) — — — (335,000) Proceeds from current credit facility — 820,000 — — — 820,000 Debt issuance costs and discounts — (19,663) — — — (19,663) Proceeds from exercise of stock options 1,799 — — — — 1,799 Purchase of treasury stock (11) — — — — (11) Intercompany financing activities — 111 — (328) 217 — Net cash provided by (used in) financing activities 1,788 (152) — (328) 217 1,525 Effect of exchange rates on cash — — — 882 — 882 Cash and cash equivalents Net increase (decrease) for the period — 16,471 (931) 14,042 — 29,582 Balance, beginning of the period — 88,648 9,103 21,300 — 119,051 Balance, end of the period $ — $ 105,119 $ 8,172 $ 35,342 $ — $ 148,633 Six Months Ended June 30, 2016 Parent Subsidiary Guarantor Non-Guarantor Eliminations Total Cash flows from operating activities Net (loss) income $ (23,948) $ 10,890 $ (28,900) $ 876 $ 17,134 $ (23,948) Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities: Depreciation and amortization — 10,726 59,651 1,211 — 71,588 Amortization of financing costs — 3,349 — — — 3,349 Loss on sale or disposal of assets — 924 764 — — 1,688 Accretion of contract rights — — 4,339 — — 4,339 Provision for bad debts — 17 4,938 — — 4,955 Write-down of assets — — 4,289 4,289 Reserve for obsolescence — 365 302 — — 667 Equity in loss (income) of subsidiaries 23,948 (6,814) — — (17,134) — Stock-based compensation — 1,929 839 — — 2,768 Changes in operating assets and liabilities: Net settlement receivables and liabilities — (21,968) (25) 1,523 — (20,470) Other changes in operating assets and liabilities 1 (4,950) 12,017 119 — 7,187 Net cash provided by (used in) operating activities 1 (5,532) 58,214 3,729 — 56,412 Cash flows from investing activities Capital expenditures — (5,953) (40,452) (104) — (46,509) Proceeds from sale of fixed assets — 4,608 — — — 4,608 Placement fee agreements — — (11,187) — — (11,187) Changes in restricted cash and cash equivalents — 54 — — — 54 Intercompany investing activities 6 586 99 (45) (646) — Net cash provided by (used in) investing activities 6 (705) (51,540) (149) (646) (53,034) Cash flows from financing activities Repayments of prior credit facility — (19,400) — — — (19,400) Debt issuance costs and discounts — (480) — — — (480) Purchase of treasury stock (13) — — — — (13) Intercompany financing activities — 42 — (688) 646 — Net cash used in financing activities (13) (19,838) — (688) 646 (19,893) Effect of exchange rates on cash — — — (411) — (411) Cash and cash equivalents Ne t(decrease) increase for the period (6) (26,075) 6,674 2,481 — (16,926) Balance, beginning of the period 6 87,078 3,900 11,046 — 102,030 Balance, end of the period $ — $ 61,003 $ 10,574 $ 13,527 $ — $ 85,104

BASIS OF PRESENTATION AND SUM38

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value | Level 1 | Senior secured term Loan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt		$ 451,632
Fair Value | Level 1 | Senior unsecured notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 384,125	350,000
Fair Value | Level 2 | Senior secured term Loan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	827,421
Fair Value | Level 3 | Senior secured notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt		324,950
Outstanding Balance | Senior secured term Loan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	820,000	465,600
Outstanding Balance | Senior secured notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt		335,000
Outstanding Balance | Senior unsecured notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 350,000	$ 350,000

BASIS OF PRESENTATION AND SUM39

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Games | Cost of revenues
Recent Accounting Guidance Not Yet Adopted
WAP jackpot expense	$ 0.1	$ 0.1

FUNDING AGREEMENTS (Details)

FUNDING AGREEMENTS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Funding Agreements
Site-Funded ATM liability	$ 106,300,000		$ 106,300,000		$ 151,000,000
Contract Cash Solutions Agreement | Indemnification Guarantee | Cash
Funding Agreements
Outstanding balance	259,200,000		259,200,000		285,400,000
Contract Cash Solutions Agreement | Indemnification Guarantee | Cash | Interest expense
Funding Agreements
Cash usage fees incurred	1,200,000	$ 700,000	2,400,000	$ 1,600,000
Contract Cash Solutions Agreement, as amended | Indemnification Guarantee | Cash
Funding Agreements
Maximum amount	425,000,000		425,000,000
Prefunded Cash Access Agreements | Prepaid expenses and other assets
Funding Agreements
Prefunded cash	$ 8,400,000		$ 8,400,000		$ 8,500,000

TRADE AND OTHER RECEIVABLES (De

TRADE AND OTHER RECEIVABLES (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Trade and other receivables, net
Other receivables	$ 1,088		$ 1,924
Total trade and other receivables, net	48,171		58,671
Less: non-current portion of receivables	2,748		2,020
Total trade and other receivables, current portion	45,423		56,651
Allowance for doubtful accounts	5,158		4,701
Bad debt expense	5,170	$ 4,955
Games
Trade and other receivables, net
Trade receivables, net	36,520		44,410
Payments
Trade and other receivables, net
Trade receivables, net	10,563		12,337
Check Warranty Reserves
Trade and other receivables, net
Allowance for doubtful accounts	2,900		2,700
General Reserves
Trade and other receivables, net
Allowance for doubtful accounts	$ 2,300		$ 2,000

PREPAID AND OTHER ASSETS (Detai

PREPAID AND OTHER ASSETS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Prepaid expenses and other assets
Deposits	$ 8,915	$ 8,622
Prepaid expenses	8,205	5,937
Other	3,375	3,489
Total prepaid expenses and other assets	20,495	18,048
Other assets
Prepaid expenses and deposits	3,732	3,399
Debt issuance costs	944	689
Other	3,258	3,434
Total other assets, non-current	$ 7,934	$ 7,522

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
INVENTORY
Raw materials and component parts, net of reserves of $1,501 and $2,155 at March 31, 2017 and December 31, 2016, respectively	$ 13,776	$ 12,570
Work in progress	3,380	1,502
Finished goods	4,107	4,996
Inventory, Net, Total	21,263	19,068
Raw materials and component parts, reserves	$ 1,985	$ 2,155

PROPERTY, EQUIPMENT AND LEASE44

PROPERTY, EQUIPMENT AND LEASED ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
PROPERTY, EQUIPMENT AND LEASED ASSETS
Cost	$ 224,103		$ 224,103		$ 202,842
Accumulated Depreciation	120,245		120,245		104,403
Net Book Value	103,858		103,858		98,439
Proceeds from sale			2	$ 4,608
Depreciation expense	11,396	$ 12,470	22,226	$ 24,805
Rental pool - deployed
PROPERTY, EQUIPMENT AND LEASED ASSETS
Cost	140,620		140,620		123,812
Accumulated Depreciation	67,803		67,803		59,188
Net Book Value	72,817		$ 72,817		64,624
Rental pool - deployed | Minimum
PROPERTY, EQUIPMENT AND LEASED ASSETS
Useful Life (years)			2 years
Rental pool - deployed | Maximum
PROPERTY, EQUIPMENT AND LEASED ASSETS
Useful Life (years)			4 years
Rental pool - undeployed
PROPERTY, EQUIPMENT AND LEASED ASSETS
Cost	16,050		$ 16,050		13,456
Accumulated Depreciation	8,673		8,673		5,721
Net Book Value	7,377		$ 7,377		7,735
Rental pool - undeployed | Minimum
PROPERTY, EQUIPMENT AND LEASED ASSETS
Useful Life (years)			2 years
Rental pool - undeployed | Maximum
PROPERTY, EQUIPMENT AND LEASED ASSETS
Useful Life (years)			4 years
ATM equipment
PROPERTY, EQUIPMENT AND LEASED ASSETS
Useful Life (years)			5 years
Cost	16,694		$ 16,694		16,537
Accumulated Depreciation	12,127		12,127		11,189
Net Book Value	4,567		4,567		5,348
Leasehold and building improvements
PROPERTY, EQUIPMENT AND LEASED ASSETS
Cost	10,387		10,387		10,023
Accumulated Depreciation	4,422		4,422		3,698
Net Book Value	5,965		$ 5,965		6,325
Cash advance equipment
PROPERTY, EQUIPMENT AND LEASED ASSETS
Useful Life (years)			3 years
Cost	8,363		$ 8,363		8,590
Accumulated Depreciation	4,993		4,993		4,499
Net Book Value	3,370		3,370		4,091
Machinery, office and other equipment
PROPERTY, EQUIPMENT AND LEASED ASSETS
Cost	31,989		31,989		30,424
Accumulated Depreciation	22,227		22,227		20,108
Net Book Value	$ 9,762		$ 9,762		$ 10,316
Machinery, office and other equipment | Minimum
PROPERTY, EQUIPMENT AND LEASED ASSETS
Useful Life (years)			2 years
Machinery, office and other equipment | Maximum
PROPERTY, EQUIPMENT AND LEASED ASSETS
Useful Life (years)			5 years
Corporate Aircraft
PROPERTY, EQUIPMENT AND LEASED ASSETS
Proceeds from sale		4,800
Corporate Aircraft | Operating expenses
PROPERTY, EQUIPMENT AND LEASED ASSETS
Loss on sale		$ 900

GOODWILL AND OTHER INTANGIBLE45

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill	$ 640,567		$ 640,567		$ 640,546
Impairment of goodwill	$ 0	$ 0	$ 0	$ 0

GOODWILL AND OTHER INTANGIBLE46

GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Other Intangible Assets
Cost	$ 566,856		$ 566,856		$ 551,853
Accumulated Amortization	267,708		267,708		233,856
Net Book Value	299,148		299,148		317,997
Amortization of expense	17,400	$ 23,600	34,800	$ 46,800
Contract rights under placement fee agreements
Other Intangible Assets
Cost	19,168		19,168		17,742
Accumulated Amortization	8,572		8,572		6,281
Net Book Value	10,596		$ 10,596		11,461
Contract rights under placement fee agreements | Minimum
Other Intangible Assets
Useful Life (years)			1 year
Contract rights under placement fee agreements | Maximum
Other Intangible Assets
Useful Life (years)			7 years
Customer contracts
Other Intangible Assets
Cost	50,975		$ 50,975		50,975
Accumulated Amortization	42,097		42,097		40,419
Net Book Value	8,878		$ 8,878		10,556
Customer contracts | Minimum
Other Intangible Assets
Useful Life (years)			7 years
Customer contracts | Maximum
Other Intangible Assets
Useful Life (years)			14 years
Customer relationships
Other Intangible Assets
Cost	231,100		$ 231,100		231,100
Accumulated Amortization	53,171		53,171		42,688
Net Book Value	177,929		$ 177,929		188,412
Customer relationships | Minimum
Other Intangible Assets
Useful Life (years)			8 years
Customer relationships | Maximum
Other Intangible Assets
Useful Life (years)			12 years
Developed technology and software
Other Intangible Assets
Cost	236,664		$ 236,664		224,265
Accumulated Amortization	143,997		143,997		126,721
Net Book Value	92,667		$ 92,667		97,544
Developed technology and software | Minimum
Other Intangible Assets
Useful Life (years)			1 year
Developed technology and software | Maximum
Other Intangible Assets
Useful Life (years)			6 years
Patents, trademarks and other
Other Intangible Assets
Cost	28,949		$ 28,949		27,771
Accumulated Amortization	19,871		19,871		17,747
Net Book Value	$ 9,078		$ 9,078		$ 10,024
Patents, trademarks and other | Minimum
Other Intangible Assets
Useful Life (years)			1 year
Patents, trademarks and other | Maximum
Other Intangible Assets
Useful Life (years)			17 years

GOODWILL AND OTHER INTANGIBLE47

GOODWILL AND OTHER INTANGIBLE ASSETS - Placement Fee Agreements (Details) - Contract rights under placement fee agreements - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Placement fee agreements
Payment advances made under placement fee agreements	$ 3	$ 10.2	$ 3	$ 11.2
Minimum
Placement fee agreements
General term of the agreement			12 months
Maximum
Placement fee agreements
General term of the agreement			83 months

ACCOUNTS PAYABLE AND ACCRUED 48

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accounts payable and accrued expenses
Trade accounts payable	$ 58,421	$ 55,352
Payroll and related expenses	10,020	12,305
Deferred and unearned revenues	10,413	9,222
Cash access processing and related expenses	5,683	7,001
Accrued taxes	2,357	2,587
Accrued interest	16,270	82
Other	9,647	7,842
Total accounts payable and accrued expenses	$ 112,811	$ 94,391

LONG-TERM DEBT - Summary of Ind

LONG-TERM DEBT - Summary of Indebtedness (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Long-term debt
Total debt	$ 1,170,000	$ 1,150,600
Less: debt issuance costs and discount	(30,327)	(28,720)
Total debt after debt issuance costs and discount	1,139,673	1,121,880
Less: current portion of long-term debt	(8,200)	(10,000)
Long-term debt, less current portion	1,131,473	1,111,880
Senior secured term loan
Long-term debt
Total debt	820,000	465,600
Senior secured notes
Long-term debt
Total debt		335,000
Senior unsecured notes
Long-term debt
Total debt	$ 350,000	$ 350,000

LONG-TERM DEBT - Refinancing an

LONG-TERM DEBT - Refinancing and New Credit Facilities (Details) - USD ($)	May 09, 2017	Jun. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2014
Credit Facilities
Write-off of unamortized deferred financing fees and discounts related to the extinguished debt	$ 14,600,000
Prepayment penalties incurred	0
New Credit Agreement, dated May 9, 2017
Credit Facilities
Debt issuance discount	4,100,000
Debt issuance costs	15,500,000
Actual consolidated leverage ratio (as a percent)			367.00%
Maximum allowable consolidated secured leverage ratio as of June 30 and December 31, 2017 (as a percent)			500.00%
Maximum allowable consolidated secured leverage ratio as of December 31, 2018 (as a percent)			475.00%
Maximum allowable consolidated secured leverage ratio as of December 31, 2019 (as a percent)			450.00%
New Credit Agreement, dated May 9, 2017 | Event of default
Credit Facilities
Threshold for change of control of parent company (as a percent)			35.00%
New Credit Agreement, dated May 9, 2017 | Eurodollar | Variable rate below threshold
Credit Facilities
Variable reference rate threshold (as a percent)			1.00%
Variable reference rate (as a percent)			1.00%
Senior secured notes | 7.25% Notes due 2021 (Refinanced Secured Notes)
Credit Facilities
Interest rate (as a percent)				7.25%
Outstanding amount redeemed	335,000,000
Senior unsecured notes
Credit Facilities
Principal amount of debt		$ 350,000,000	$ 350,000,000		$ 350,000,000
Debt issuance discount					3,800,000
Debt issuance costs					$ 14,000,000
Interest rate (as a percent)		10.00%	10.00%		10.00%
Everi Payments Inc. | New Credit Agreement, dated May 9, 2017
Credit Facilities
Ownership of equity interests (as a percent)			100.00%
Revolving credit facility | New Credit Agreement, dated May 9, 2017
Credit Facilities
Maximum borrowing capacity	$ 35,000,000	$ 35,000,000	$ 35,000,000
Term of facility	5 years		5 years
Borrowings outstanding		0	$ 0
Additional borrowing availability		$ 35,000,000	$ 35,000,000
Revolving credit facility | New Credit Agreement, dated May 9, 2017 | Unsecured Notes remain outstanding and Unsecured Notes Maturity Date not extended
Credit Facilities
Period prior to maturity date of any unsecured debt outstanding which may require earlier maturity date			121 days
Period of extended Unsecured Notes Maturity Date to not require earlier maturity date			6 months
Required period of maturity date before Unsecured Notes Maturity Date			121 days
Senior secured term loan facility
Credit Facilities
Weighted average interest rate during period (as a percent)		5.89%	5.99%
Senior secured term loan facility | New Credit Agreement, dated May 9, 2017
Credit Facilities
Principal amount of debt	$ 820,000,000	$ 820,000,000	$ 820,000,000
Term of facility	7 years		7 years
Required quarterly principal payment, as a percentage of original principal			0.25%
Weighted average interest rate during period (as a percent)		5.66%	5.66%
Outstanding borrowings		$ 820,000,000	$ 820,000,000
Senior secured term loan facility | New Credit Agreement, dated May 9, 2017 | Unsecured Notes remain outstanding and Unsecured Notes Maturity Date not extended
Credit Facilities
Period prior to maturity date of any unsecured debt outstanding which may require earlier maturity date			91 days
Period of extended Unsecured Notes Maturity Date to not require earlier maturity date			6 months
Required period of maturity date before Unsecured Notes Maturity Date			91 days
Senior secured term loan facility | New Credit Agreement, dated May 9, 2017 | Refinancing of debt
Credit Facilities
Prepayment premium applied to principal amount (as a percent)			1.00%
Senior secured term loan facility | New Credit Agreement, dated May 9, 2017 | Maximum | Refinancing of debt
Credit Facilities
Period after Closing Date prepayment is subject to a prepayment premium			6 months
Senior secured term loan facility | Prior Credit Agreement, December 2014
Credit Facilities
Prepayment of outstanding balances	$ 462,300,000
Weighted average interest rate during period (as a percent)		6.30%	6.29%
Eurodollar borrowings | New Credit Agreement, dated May 9, 2017
Credit Facilities
Interest rate margin (as a percent)			4.50%
Eurodollar Borrowings, Interest Period Greater than Three Months [Member] | New Credit Agreement, dated May 9, 2017
Credit Facilities
Interest remittance period			3 months
Eurodollar Borrowings, Interest Period Greater than Three Months [Member] | New Credit Agreement, dated May 9, 2017 | Minimum
Credit Facilities
Interest period term			3 months
Base rate borrowings | New Credit Agreement, dated May 9, 2017
Credit Facilities
Interest rate margin (as a percent)			3.50%
Base rate borrowings | New Credit Agreement, dated May 9, 2017 | Federal funds effective rate
Credit Facilities
Interest rate margin (as a percent)			0.50%
Base rate borrowings | New Credit Agreement, dated May 9, 2017 | Eurodollar
Credit Facilities
Variable reference rate period			1 month
Interest rate margin (as a percent)			1.00%

LONG-TERM DEBT - Senior Secured

LONG-TERM DEBT - Senior Secured Notes (Details) - USD ($)	May 09, 2017	Jun. 30, 2017	Jun. 30, 2017
Long-term debt
Loss on extinguishment of debt		$ 14,615,000	$ 14,615,000
Senior secured notes | 7.25% Notes due 2021 (Refinanced Secured Notes)
Long-term debt
Outstanding amount redeemed	$ 335,000,000
Loss on extinguishment of debt	1,700,000
Debt issuance costs and fees expensed on extinguishment of debt	200,000
Debt discounts expensed on extinguishment of debt	$ 1,500,000

LONG-TERM DEBT - Senior Unsecur

LONG-TERM DEBT - Senior Unsecured Notes (Details) - Senior unsecured notes - USD ($)	1 Months Ended
	Dec. 31, 2014	Jun. 30, 2017
Long-term debt
Principal amount of debt	$ 350,000,000	$ 350,000,000
Interest rate (as a percent)	10.00%	10.00%
Original issue discounts	$ 3,800,000
Debt issuance costs	$ 14,000,000
Agreed upon time commercially reasonable efforts are to be made to aid purchasers in the resale of Notes	1 year

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Aug. 08, 2017	Jun. 30, 2017	Jun. 30, 2016	May 09, 2017
Agreement
Cash payment made		$ 3,044,000	$ 11,187,000
Placement fee agreements
Agreement
Extended term	6 years 11 months
Cash payment made	$ 10,000,000
Quarterly periodic payment	$ 5,600,000
New Credit Agreement, dated May 9, 2017 | Revolving credit facility
Commitments under contractual obligations
Maximum borrowing capacity		35,000,000		$ 35,000,000
New Credit Agreement, dated May 9, 2017 | Senior secured term loan facility
Commitments under contractual obligations
Principal amount of debt		$ 820,000,000		$ 820,000,000
Required annual principal payment, as a percentage of original principal		1.00%
Blended weighted average interest rate (as a percent)		5.56%
Principal payments required
Remainder of 2017		$ 4,100,000
2,018		8,200,000
2,019		8,200,000
2,020		8,200,000
2,021		8,200,000
Thereafter		783,100,000
New Credit Agreement, dated May 9, 2017 | Senior secured term loan facility | Interest on debt
Payments required
2,017		23,700,000
2,018		45,700,000
2,019		45,200,000
2,020		44,800,000
2,021		44,400,000
Thereafter		$ 102,500,000

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)Voteshares	Jun. 30, 2016USD ($)shares	Jun. 30, 2017USD ($)seriesfundVoteshares	Jun. 30, 2016USD ($)shares	Dec. 31, 2016shares
Shareholders' equity
Preferred stock, shares authorized	50,000,000		50,000,000		50,000,000
Preferred stock, shares outstanding	0		0		0
Number of votes for a share of common stock | Vote	1		1
Number of sinking fund provisions applicable to common stock | fund			0
Common stock, shares issued	91,538,345		91,538,345		90,952,185
Maximum
Shareholders' equity
Preferred stock, shares authorized	50,000,000		50,000,000
Minimum
Shareholders' equity
Number of series of preferred stock that may be issued | series			1
Treasury Stock
Total Number of Shares Purchased or Withheld
Shares repurchased or withheld from restricted stock awards	455	2,324	3,029	4,912
Aggregate purchase price of shares repurchased or withheld from restricted stock awards | $	$ 3,117	$ 4,081	$ 10,591	$ 13,015

WEIGHTED AVERAGE COMMON SHARE55

WEIGHTED AVERAGE COMMON SHARES (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Weighted-average number of common shares outstanding used in the computation of basic and diluted earnings per share
Weighted average number of common shares outstanding - basic	66,350	66,041	66,221	66,038
Weighted average number of common shares outstanding - diluted	66,350	66,041	66,221	66,038
Anti-dilutive equity awards excluded from computation of earnings per share (in shares)	11,900	17,100	15,300	15,900

SHARE-BASED COMPENSATION - Awar

SHARE-BASED COMPENSATION - Award Activity (Details) - shares	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
2014 Equity Incentive Plan
Equity Awards Available for Grant
Number of shares available for grant	4,500,000		4,500,000
2012 Equity Incentive Plan
Equity Awards Available for Grant
Number of shares available for grant	4,500,000		4,500,000
2005 Stock Incentive Plan
Equity Awards Available for Grant
Number of shares available for grant	0		0
Stock Options
Stock Options Granted
Outstanding (in shares)			18,233,000
Granted (in shares)	58,000	3,400,000	4,061,000	4,000,000
Exercised options (in shares)		0	(575,000)	0
Canceled or forfeited (in shares)			(200,000)
Outstanding (in shares)	21,519,000		21,519,000		18,233,000
Time Based Options
Equity Incentive Awards
Vesting rate per year (as a percent)			25.00%
Vesting period			4 years
Expiration period			10 years
Market Performance Based Options
Equity Incentive Awards
Vesting rate per year (as a percent)			25.00%		25.00%
Vesting period			4 years		4 years
Vesting price hurdle, percent of premium to closing stock price on grant date			25.00%	50.00%
Number of consecutive trading days the Company's average stock price meets certain target prices, which satisfy vesting requirements			30 days		30 days
Expiration period			10 years		10 years
Restricted Stock
Restricted Stock Granted
Outstanding (in shares)			80,000
Granted (in shares)	40,000		40,000
Vested (in shares)			(11,000)	(20,500)
Outstanding (in shares)	109,000		109,000		80,000

SHARE-BASED COMPENSATION - Stoc

SHARE-BASED COMPENSATION - Stock Options, Fair Value Assumptions (Details) - shares	Feb. 25, 2016	Feb. 13, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Stock Options
Stock options
Granted (in shares)			58,000	3,400,000	4,061,000	4,000,000
Time Based Options
Weighted-average assumptions used in estimating fair value
Risk-free interest rate (as a percent)					2.00%	1.00%
Expected life of options					6 years	5 years
Expected volatility (as a percent)					54.00%	51.00%
Market Performance Based Options
Weighted-average assumptions used in estimating fair value
Risk-free interest rate (as a percent)					3.00%	2.00%
Expected life of options					10 years	10 years
Expected volatility (as a percent)					70.00%	68.00%
Executives and directors | Time Based Options
Weighted-average assumptions used in estimating fair value
Risk-free interest rate (as a percent)	1.00%	1.00%
Expected life of options	5 years	6 years
Expected volatility (as a percent)	49.00%	49.00%
Expected dividend yield (as a percent)	0.00%	0.00%

SHARE-BASED COMPENSATION - St58

SHARE-BASED COMPENSATION - Stock Options, Activity (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Stock options
Proceeds from exercise of stock options			$ 1,799,000
Stock Options
Stock Options Granted
Outstanding (in shares)			18,233,000
Granted (in shares)	58,000	3,400,000	4,061,000	4,000,000
Exercised options (in shares)		0	(575,000)	0
Canceled or forfeited (in shares)			(200,000)
Outstanding (in shares)	21,519,000		21,519,000		18,233,000
Vested and expected to vest (in shares)	18,835,000		18,835,000
Exercisable (in shares)	10,769,000		10,769,000
Weighted Average Exercise Price
Outstanding (in dollars per share)			$ 6.02
Granted (in dollars per share)			3.34
Exercised options (in dollars per share)			3.21
Canceled or forfeited (in dollars per share)			4.68
Outstanding (in dollars per share)	$ 5.60		5.60		$ 6.02
Vested and expected to vest (in dollars per share)	5.73		5.73
Exercisable (in dollars per share)	$ 6.90		$ 6.90
Weighted Average Life Remaining
Outstanding			6 years 7 months 6 days		6 years 4 months 24 days
Vested and expected to vest			6 years 6 months
Exercisable			4 years 10 months 24 days
Aggregate Intrinsic Value
Outstanding (in dollars)	$ 44,789,000		$ 44,789,000		$ 2,387,000
Vested and expected to vest (in dollars)	37,328,000		37,328,000
Exercisable (in dollars)	$ 11,413,000		$ 11,413,000
Stock options
Weighted average grant date fair value (in dollars per share)	$ 3.28	$ 0.73	$ 1.83	$ 0.81
Total intrinsic value of options exercised	$ 2,000,000		$ 2,000,000
Unrecognized compensation expense	13,400,000	$ 15,200,000	$ 13,400,000	$ 15,200,000
Weighted-average period for recognition of unrecognized compensation expense			2 years 4 months 24 days	2 years 6 months
Non-cash compensation expense			$ 3,300,000	$ 2,600,000
Proceeds from exercise of stock options	$ 1,800,000		$ 1,800,000	$ 0

SHARE-BASED COMPENSATION - Rest

SHARE-BASED COMPENSATION - Restricted Stock (Details) - Restricted Stock - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Shares Outstanding
Outstanding (in shares)			80,000
Granted (in shares)	40,000		40,000
Vested (in shares)			(11,000)	(20,500)
Outstanding (in shares)	109,000		109,000
Weighted Average Grant Date Fair Value
Outstanding (in dollars per share)			$ 7.12
Granted (in dollars per share)			6.66
Vested (in dollars per share)			7.03
Outstanding (in dollars per share)	$ 6.96		$ 6.96
Restricted stock
Total fair value of shares vested	$ 12,128	$ 11,422	$ 80,590	$ 23,608
Unrecognized compensation expense	$ 900,000	$ 1,500,000	$ 900,000	$ 1,500,000
Weighted-average period for recognition of unrecognized compensation expense			1 year 6 months	2 years
Non-cash compensation expense			$ 200,000	$ 200,000

INCOME TAXES - Effective Income

INCOME TAXES - Effective Income Tax Rate (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
INCOME TAXES
Effective income tax rate (as a percent)	(10.80%)	42.20%	(14.80%)	40.00%
Statutory federal rate (as a percent)	35.00%	35.00%	35.00%	35.00%
Increase in valuation allowance	$ 8.3

INCOME TAXES - Unrecognized Tax

INCOME TAXES - Unrecognized Tax Benefits (Details) $ in Millions	Jun. 30, 2017USD ($)
INCOME TAXES
Unrecognized tax benefits	$ 0.8
Penalties and interest accrued for unrecognized tax benefits	$ 0

SEGMENT INFORMATION - Revenues,

SEGMENT INFORMATION - Revenues, Operating Income, and Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Results of operations by operating segment
Total revenues	$ 242,230	$ 214,000	$ 479,767	$ 419,769
Total operating income	21,292	6,060	43,895	9,844
Total assets	1,337,398		1,337,398		$ 1,408,163
Games
Results of operations by operating segment
Total revenues	55,104	54,264	110,380	102,442
Total operating income	2,722	(7,210)	7,513	(10,456)
Total assets	879,961		879,961		894,213
Payments
Results of operations by operating segment
Total revenues	187,126	159,736	369,387	317,327
Total operating income	18,570	$ 13,270	36,382	$ 20,300
Total assets	$ 457,437		$ 457,437		$ 513,950

SEGMENT INFORMATION - Major Cus

SEGMENT INFORMATION - Major Customers (Details) - Five largest customers - Customer risk - Revenues - customer	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Major Customers
Number of major customers	5	5	5	5
Concentration risk (as a percent)	26.00%	31.00%	27.00%	32.00%

CONDENSED CONSOLIDATING FINAN64

CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Guarantors (Details)	Jun. 30, 2017
U.S. subsidiaries other than Subsidiary Issuer
Condensed Consolidating Financial Information
Subsidiary ownership (as a percent)	100.00%

CONDENSED CONSOLIDATING FINAN65

CONDENSED CONSOLIDATING FINANCIAL INFORMATION - STATEMENTS OF LOSS AND COMPREHENSIVE LOSS - (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Condensed Income Statements, Captions [Line Items]
Revenues	$ 242,230	$ 214,000	$ 479,767	$ 419,769
Costs and expenses
Operating expenses	28,779	30,733	57,772	60,738
Research and development	4,618	4,671	9,161	10,040
Goodwill impairment	0	0	0	0
Depreciation	11,396	12,470	22,226	24,805
Amortization	17,439	23,600	34,764	46,783
Total costs and expenses	220,938	207,940	435,872	409,925
Operating income	21,292	6,060	43,895	9,844
Other (income) expense
Interest expense, net of interest income	23,881	24,742	48,938	49,734
Loss on extinguishment of debt	14,615		14,615
Total other expenses	38,496	24,742	63,553	49,734
Loss before income tax	(17,204)	(18,682)	(19,658)	(39,890)
Income tax provision (benefit)	1,853	(7,886)	2,907	(15,942)
Net loss	(19,057)	(10,796)	(22,565)	(23,948)
Foreign currency translation	836	(435)	1,108	(920)
Comprehensive loss	(18,221)	(11,231)	(21,457)	(24,868)
Eliminations
Condensed Income Statements, Captions [Line Items]
Revenues	(5,238)	(374)	(6,070)	(745)
Costs and expenses
Operating expenses	(3,962)	(374)	(4,112)	(745)
Total costs and expenses	(5,238)	(374)	(6,070)	(745)
Other (income) expense
Equity in loss (income) of subsidiaries	(17,273)	(7,276)	(16,497)	(17,134)
Total other expenses	(17,273)	(7,276)	(16,497)	(17,134)
Loss before income tax	17,273	7,276	16,497	17,134
Net loss	17,273	7,276	16,497	17,134
Foreign currency translation	(836)	435	(1,108)	920
Comprehensive loss	16,437	7,711	15,389	18,054
Parent | Reportable Legal Entities
Other (income) expense
Equity in loss (income) of subsidiaries	19,057	10,796	22,565	23,948
Total other expenses	19,057	10,796	22,565	23,948
Loss before income tax	(19,057)	(10,796)	(22,565)	(23,948)
Net loss	(19,057)	(10,796)	(22,565)	(23,948)
Foreign currency translation	836	(435)	1,108	(920)
Comprehensive loss	(18,221)	(11,231)	(21,457)	(24,868)
Subsidiary Issuer | Reportable Legal Entities
Condensed Income Statements, Captions [Line Items]
Revenues	173,387	148,231	340,060	294,617
Costs and expenses
Operating expenses	17,351	16,496	34,894	37,421
Depreciation	1,679	1,965	3,442	4,484
Amortization	2,616	3,142	5,496	6,242
Total costs and expenses	158,285	140,488	313,571	285,096
Operating income	15,102	7,743	26,489	9,521
Other (income) expense
Interest expense, net of interest income	512	1,576	2,508	3,509
Equity in loss (income) of subsidiaries	(1,805)	(3,520)	(5,986)	(6,814)
Loss on extinguishment of debt	14,615		14,615
Total other expenses	13,322	(1,944)	11,137	(3,305)
Loss before income tax	1,780	9,687	15,352	12,826
Income tax provision (benefit)	414	1,823	(646)	1,936
Net loss	1,366	7,864	15,998	10,890
Comprehensive loss	1,366	7,864	15,998	10,890
Guarantor Subsidiaries | Reportable Legal Entities
Condensed Income Statements, Captions [Line Items]
Revenues	62,496	61,949	125,702	117,545
Costs and expenses
Operating expenses	11,040	14,107	22,098	23,081
Research and development	4,596	4,671	9,134	10,040
Depreciation	9,601	10,474	18,552	20,260
Amortization	14,344	19,888	28,306	39,391
Total costs and expenses	54,972	64,314	108,581	118,724
Operating income	7,524	(2,365)	17,121	(1,179)
Other (income) expense
Interest expense, net of interest income	23,153	23,105	46,049	46,103
Equity in loss (income) of subsidiaries	21		(82)
Total other expenses	23,174	23,105	45,967	46,103
Loss before income tax	(15,650)	(25,470)	(28,846)	(47,282)
Income tax provision (benefit)	1,670	(9,960)	3,400	(18,382)
Net loss	(17,320)	(15,510)	(32,246)	(28,900)
Comprehensive loss	(17,320)	(15,510)	(32,246)	(28,900)
Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Income Statements, Captions [Line Items]
Revenues	11,585	4,194	20,075	8,352
Costs and expenses
Operating expenses	4,350	504	4,892	981
Research and development	22		27
Depreciation	116	31	232	61
Amortization	479	570	962	1,150
Total costs and expenses	12,919	3,512	19,790	6,850
Operating income	(1,334)	682	285	1,502
Other (income) expense
Interest expense, net of interest income	216	61	381	122
Total other expenses	216	61	381	122
Loss before income tax	(1,550)	621	(96)	1,380
Income tax provision (benefit)	(231)	251	153	504
Net loss	(1,319)	370	(249)	876
Foreign currency translation	836	(435)	1,108	(920)
Comprehensive loss	(483)	(65)	859	(44)
Games
Condensed Income Statements, Captions [Line Items]
Revenues	55,104	54,264	110,380	102,442
Costs and expenses
Cost of revenue (exclusive of depreciation and amortization)	13,239	12,968	25,683	21,404
Operating income	2,722	(7,210)	7,513	(10,456)
Games | Eliminations
Condensed Income Statements, Captions [Line Items]
Revenues	(2,864)		(3,546)
Costs and expenses
Cost of revenue (exclusive of depreciation and amortization)	(1,276)		(1,958)
Games | Guarantor Subsidiaries | Reportable Legal Entities
Condensed Income Statements, Captions [Line Items]
Revenues	54,702	54,264	110,220	102,442
Costs and expenses
Cost of revenue (exclusive of depreciation and amortization)	12,883	12,968	25,802	21,404
Games | Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Income Statements, Captions [Line Items]
Revenues	3,266		3,706
Costs and expenses
Cost of revenue (exclusive of depreciation and amortization)	1,632		1,839
Payments
Condensed Income Statements, Captions [Line Items]
Revenues	187,126	159,736	369,387	317,327
Costs and expenses
Cost of revenue (exclusive of depreciation and amortization)	145,467	123,498	286,266	246,155
Operating income	18,570	13,270	36,382	20,300
Payments | Eliminations
Condensed Income Statements, Captions [Line Items]
Revenues	(2,374)	(374)	(2,524)	(745)
Payments | Subsidiary Issuer | Reportable Legal Entities
Condensed Income Statements, Captions [Line Items]
Revenues	173,387	148,231	340,060	294,617
Costs and expenses
Cost of revenue (exclusive of depreciation and amortization)	136,639	118,885	269,739	236,949
Payments | Guarantor Subsidiaries | Reportable Legal Entities
Condensed Income Statements, Captions [Line Items]
Revenues	7,794	7,685	15,482	15,103
Costs and expenses
Cost of revenue (exclusive of depreciation and amortization)	2,508	2,206	4,689	4,548
Payments | Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Income Statements, Captions [Line Items]
Revenues	8,319	4,194	16,369	8,352
Costs and expenses
Cost of revenue (exclusive of depreciation and amortization)	$ 6,320	$ 2,407	$ 11,838	$ 4,658

CONDENSED CONSOLIDATING FINAN66

CONDENSED CONSOLIDATING FINANCIAL INFORMATION - BALANCE SHEETS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 148,633	$ 119,051	$ 85,104	$ 102,030
Settlement receivables	47,329	128,821
Total trade and other receivables, current portion	45,423	56,651
Inventory	21,263	19,068
Prepaid expenses and other assets	20,495	18,048
Total current assets	283,143	341,639
Non-current assets
Property, equipment and leased assets, net	103,858	98,439
Goodwill	640,567	640,546
Other intangible assets, net	299,148	317,997
Other receivables	2,748	2,020
Other assets	7,934	7,522
Total non-current assets	1,054,255	1,066,524
Total assets	1,337,398	1,408,163
Current Liabilities
Settlement liabilities	145,702	239,123
Accounts payable and accrued expenses	112,811	94,391
Current portion of long-term debt	8,200	10,000
Total current liabilities	266,713	343,514
Non-current liabilities
Deferred tax liability	60,176	57,611
Long-term debt, less current portion	1,131,473	1,111,880
Other accrued expenses and liabilities	2,955	2,951
Total non-current liabilities	1,194,604	1,172,442
Total liabilities	1,461,317	1,515,956
Stockholders' deficit)
Common stock	92	91
Additional paid-in capital	270,083	264,755
(Accumulated deficit) retained earnings	(216,864)	(194,299)
Accumulated other comprehensive (loss) income	(988)	(2,109)
Treasury stock, at cost	(176,242)	(176,231)
Total stockholders' deficit	(123,919)	(107,793)
Total liabilities and stockholders' deficit	1,337,398	1,408,163
Reportable Legal Entities | Parent
Current assets
Cash and cash equivalents				6
Non-current assets
Investment in subsidiaries	(123,889)	(107,751)
Total non-current assets	(123,889)	(107,751)
Total assets	(123,889)	(107,751)
Stockholders' deficit)
Common stock	92	91
Additional paid-in capital	270,083	264,755
(Accumulated deficit) retained earnings	(216,864)	(194,299)
Accumulated other comprehensive (loss) income	(958)	(2,067)
Treasury stock, at cost	(176,242)	(176,231)
Total stockholders' deficit	(123,889)	(107,751)
Total liabilities and stockholders' deficit	(123,889)	(107,751)
Reportable Legal Entities | Subsidiary Issuer
Current assets
Cash and cash equivalents	105,119	88,648	61,003	87,078
Settlement receivables	36,550	122,222
Total trade and other receivables, current portion	6,763	9,001
Inventory	5,896	6,009
Prepaid expenses and other assets	6,376	5,359
Intercompany balances	132,937	106,729
Total current assets	293,641	337,968
Non-current assets
Property, equipment and leased assets, net	13,725	15,144
Goodwill	151,417	151,417
Other intangible assets, net	21,025	23,901
Other receivables	1,394	2,019
Investment in subsidiaries	178,954	171,979
Deferred tax asset, non-current	34,995	37,578
Other assets	5,085	4,940
Intercompany balances	1,146,516	1,143,115
Total non-current assets	1,553,111	1,550,093
Total assets	1,846,752	1,888,061
Current Liabilities
Settlement liabilities	117,351	225,170
Accounts payable and accrued expenses	81,596	64,192
Current portion of long-term debt	8,200	10,000
Intercompany balances	199,378	189,488
Total current liabilities	406,525	488,850
Non-current liabilities
Long-term debt, less current portion	1,131,473	1,111,880
Other accrued expenses and liabilities	2,619	2,583
Total non-current liabilities	1,134,092	1,114,463
Total liabilities	1,540,617	1,603,313
Stockholders' deficit)
Additional paid-in capital	89,779	85,499
(Accumulated deficit) retained earnings	217,314	201,316
Accumulated other comprehensive (loss) income	(958)	(2,067)
Total stockholders' deficit	306,135	284,748
Total liabilities and stockholders' deficit	1,846,752	1,888,061
Reportable Legal Entities | Guarantor Subsidiaries
Current assets
Cash and cash equivalents	8,172	9,103	10,574	3,900
Total trade and other receivables, current portion	35,013	41,743
Inventory	15,367	13,059
Prepaid expenses and other assets	5,256	3,807
Intercompany balances	202,342	188,028
Total current assets	266,150	255,740
Non-current assets
Property, equipment and leased assets, net	88,577	81,993
Goodwill	488,511	488,512
Other intangible assets, net	274,287	289,338
Other receivables	1,354
Investment in subsidiaries	969	1,293
Other assets	2,625	2,286
Intercompany balances		7,851
Total non-current assets	856,323	871,273
Total assets	1,122,473	1,127,013
Current Liabilities
Settlement liabilities	132	268
Accounts payable and accrued expenses	28,722	28,970
Intercompany balances	125,295	101,387
Total current liabilities	154,149	130,625
Non-current liabilities
Deferred tax liability	95,171	95,189
Other accrued expenses and liabilities	336	368
Intercompany balances	1,146,516	1,143,116
Total non-current liabilities	1,242,023	1,238,673
Total liabilities	1,396,172	1,369,298
Stockholders' deficit)
Additional paid-in capital	6,352	5,314
(Accumulated deficit) retained earnings	(279,505)	(247,273)
Accumulated other comprehensive (loss) income	(546)	(326)
Total stockholders' deficit	(273,699)	(242,285)
Total liabilities and stockholders' deficit	1,122,473	1,127,013
Reportable Legal Entities | Non-Guarantor Subsidiaries
Current assets
Cash and cash equivalents	35,342	21,300	$ 13,527	$ 11,046
Settlement receivables	10,779	6,599
Total trade and other receivables, current portion	3,647	5,907
Prepaid expenses and other assets	8,863	8,882
Intercompany balances	1,515	1,461
Total current assets	60,146	44,149
Non-current assets
Property, equipment and leased assets, net	1,556	1,302
Goodwill	639	617
Other intangible assets, net	3,836	4,758
Other receivables		1
Investment in subsidiaries	86	86
Other assets	224	296
Total non-current assets	6,341	7,060
Total assets	66,487	51,209
Current Liabilities
Settlement liabilities	28,219	13,685
Accounts payable and accrued expenses	2,493	1,229
Intercompany balances	12,121	5,343
Total current liabilities	42,833	20,257
Non-current liabilities
Intercompany balances		7,850
Total non-current liabilities		7,850
Total liabilities	42,833	28,107
Stockholders' deficit)
Additional paid-in capital	21,108	21,093
(Accumulated deficit) retained earnings	4,513	5,168
Accumulated other comprehensive (loss) income	(1,967)	(3,159)
Total stockholders' deficit	23,654	23,102
Total liabilities and stockholders' deficit	66,487	51,209
Eliminations
Current assets
Intercompany balances	(336,794)	(296,218)
Total current assets	(336,794)	(296,218)
Non-current assets
Investment in subsidiaries	(56,120)	(65,607)
Deferred tax asset, non-current	(34,995)	(37,578)
Intercompany balances	(1,146,516)	(1,150,966)
Total non-current assets	(1,237,631)	(1,254,151)
Total assets	(1,574,425)	(1,550,369)
Current Liabilities
Intercompany balances	(336,794)	(296,218)
Total current liabilities	(336,794)	(296,218)
Non-current liabilities
Deferred tax liability	(34,995)	(37,578)
Intercompany balances	(1,146,516)	(1,150,966)
Total non-current liabilities	(1,181,511)	(1,188,544)
Total liabilities	(1,518,305)	(1,484,762)
Stockholders' deficit)
Additional paid-in capital	(117,239)	(111,906)
(Accumulated deficit) retained earnings	57,678	40,789
Accumulated other comprehensive (loss) income	3,441	5,510
Total stockholders' deficit	(56,120)	(65,607)
Total liabilities and stockholders' deficit	$ (1,574,425)	$ (1,550,369)

CONDENSED CONSOLIDATING FINAN67

CONDENSED CONSOLIDATING FINANCIAL INFORMATION - STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities
Net (loss) income	$ (19,057)	$ (10,796)	$ (22,565)	$ (23,948)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization			56,990	71,588
Amortization of financing costs			3,186	3,349
Loss (gain) on sale or disposal of assets			1,399	1,688
Accretion of contract rights			3,909	4,339
Provision for bad debts			5,170	4,955
Write-down of assets				4,289
Reserve for obsolescence			266	667
Loss on extinguishment of debt	14,615		14,615
Stock-based compensation			3,480	2,768
Changes in operating assets and liabilities:
Net settlement receivables and liabilities			(11,889)	(20,470)
Other changes in operating assets and liabilities			19,433	7,187
Net cash provided by operating activities			73,994	56,412
Cash flows from investing activities
Capital expenditures			(43,696)	(46,509)
Proceeds from sale of fixed assets			2	4,608
Placement fee agreements			(3,044)	(11,187)
Changes in restricted cash and cash equivalents			(81)	54
Net cash used in investing activities			(46,819)	(53,034)
Cash flows from financing activities
Repayments of credit facility			(465,600)	(19,400)
Repayments of secured notes			(335,000)
Proceeds from current credit facility			820,000
Debt issuance costs and discounts			(19,663)	(480)
Proceeds from exercise of stock options			1,799
Purchase of treasury stock			(11)	(13)
Net cash used in financing activities			1,525	(19,893)
Effect of exchange rates on cash			882	(411)
Cash and cash equivalents
Net (decrease) increase for the period			29,582	(16,926)
Balance, beginning of the period			119,051	102,030
Balance, end of the period	148,633	85,104	148,633	85,104
Reportable Legal Entities | Parent
Cash flows from operating activities
Net (loss) income	(19,057)	(10,796)	(22,565)	(23,948)
Adjustments to reconcile net loss to cash provided by operating activities:
Equity in loss (income) of subsidiaries	19,057	10,796	22,565	23,948
Changes in operating assets and liabilities:
Other changes in operating assets and liabilities			51	1
Net cash provided by operating activities			51	1
Cash flows from investing activities
Intercompany investing activities			(1,839)	6
Net cash used in investing activities			(1,839)	6
Cash flows from financing activities
Proceeds from exercise of stock options			1,799
Purchase of treasury stock			(11)	(13)
Net cash used in financing activities			1,788	(13)
Cash and cash equivalents
Net (decrease) increase for the period				(6)
Balance, beginning of the period				6
Reportable Legal Entities | Subsidiary Issuer
Cash flows from operating activities
Net (loss) income	1,366	7,864	15,998	10,890
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization			8,938	10,726
Amortization of financing costs			3,186	3,349
Loss (gain) on sale or disposal of assets			331	924
Provision for bad debts			(179)	17
Reserve for obsolescence			258	365
Loss on extinguishment of debt	14,615		14,615
Equity in loss (income) of subsidiaries	(1,805)	(3,520)	(5,986)	(6,814)
Stock-based compensation			2,442	1,929
Changes in operating assets and liabilities:
Net settlement receivables and liabilities			(22,146)	(21,968)
Other changes in operating assets and liabilities			1,020	(4,950)
Net cash provided by operating activities			18,477	(5,532)
Cash flows from investing activities
Capital expenditures			(3,858)	(5,953)
Proceeds from sale of fixed assets			2	4,608
Changes in restricted cash and cash equivalents			49	54
Intercompany investing activities			1,953	586
Net cash used in investing activities			(1,854)	(705)
Cash flows from financing activities
Repayments of credit facility			(465,600)	(19,400)
Repayments of secured notes			(335,000)
Proceeds from current credit facility			820,000
Debt issuance costs and discounts			(19,663)	(480)
Intercompany financing activities			111	42
Net cash used in financing activities			(152)	(19,838)
Cash and cash equivalents
Net (decrease) increase for the period			16,471	(26,075)
Balance, beginning of the period			88,648	87,078
Balance, end of the period	105,119	61,003	105,119	61,003
Reportable Legal Entities | Guarantor Subsidiaries
Cash flows from operating activities
Net (loss) income	(17,320)	(15,510)	(32,246)	(28,900)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization			46,858	59,651
Loss (gain) on sale or disposal of assets			1,068	764
Accretion of contract rights			3,909	4,339
Provision for bad debts			5,349	4,938
Write-down of assets				4,289
Reserve for obsolescence			8	302
Equity in loss (income) of subsidiaries	21		(82)
Stock-based compensation			1,038	839
Changes in operating assets and liabilities:
Net settlement receivables and liabilities			(135)	(25)
Other changes in operating assets and liabilities			15,578	12,017
Net cash provided by operating activities			41,345	58,214
Cash flows from investing activities
Capital expenditures			(39,302)	(40,452)
Placement fee agreements			(3,044)	(11,187)
Changes in restricted cash and cash equivalents			(130)
Intercompany investing activities			200	99
Net cash used in investing activities			(42,276)	(51,540)
Cash and cash equivalents
Net (decrease) increase for the period			(931)	6,674
Balance, beginning of the period			9,103	3,900
Balance, end of the period	8,172	10,574	8,172	10,574
Reportable Legal Entities | Non-Guarantor Subsidiaries
Cash flows from operating activities
Net (loss) income	(1,319)	370	(249)	876
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization			1,194	1,211
Changes in operating assets and liabilities:
Net settlement receivables and liabilities			10,392	1,523
Other changes in operating assets and liabilities			2,784	119
Net cash provided by operating activities			14,121	3,729
Cash flows from investing activities
Capital expenditures			(536)	(104)
Intercompany investing activities			(97)	(45)
Net cash used in investing activities			(633)	(149)
Cash flows from financing activities
Intercompany financing activities			(328)	(688)
Net cash used in financing activities			(328)	(688)
Effect of exchange rates on cash			882	(411)
Cash and cash equivalents
Net (decrease) increase for the period			14,042	2,481
Balance, beginning of the period			21,300	11,046
Balance, end of the period	35,342	13,527	35,342	13,527
Eliminations
Cash flows from operating activities
Net (loss) income	17,273	7,276	16,497	17,134
Adjustments to reconcile net loss to cash provided by operating activities:
Equity in loss (income) of subsidiaries	$ (17,273)	$ (7,276)	(16,497)	(17,134)
Cash flows from investing activities
Intercompany investing activities			(217)	(646)
Net cash used in investing activities			(217)	(646)
Cash flows from financing activities
Intercompany financing activities			217	646
Net cash used in financing activities			$ 217	$ 646