Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Sep. 30, 2014 | Oct. 28, 2014 | Oct. 28, 2014 | |
Class A common stock | Class B Common Stock | ||
Entity Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'SCIENTIFIC GAMES CORP | ' | ' |
Entity Central Index Key | '0000750004 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 84,829,084 | 0 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenue: | ' | ' | ' | ' |
Instant games | $130.80 | $129.70 | $392.40 | $379 |
Services | 182.8 | 80.7 | 538.9 | 247.7 |
Product sales | 102 | 24 | 289.3 | 62.3 |
Total revenue | 415.6 | 234.4 | 1,220.60 | 689 |
Operating expenses: | ' | ' | ' | ' |
Cost of instant games | 69.7 | 70.6 | 212.5 | 210.3 |
Cost of services | 69.6 | 42.6 | 200.7 | 135 |
Cost of product sales | 59.9 | 13.3 | 161.2 | 39.3 |
Selling, general and administrative | 95.6 | 45.6 | 282.6 | 139.1 |
Research and development | 26.3 | 1.4 | 77 | 4.7 |
Employee termination and restructuring | 1.9 | 0 | 12.4 | 0.3 |
Depreciation and amortization | 100.4 | 35.2 | 290.5 | 111.1 |
Operating (loss) income | -7.8 | 25.7 | -16.3 | 49.2 |
Other income (expense): | ' | ' | ' | ' |
Interest expense | -45.7 | -25.2 | -142.9 | -75.3 |
Earnings (loss) from equity investments | -14 | 3.4 | -7.8 | 13 |
Loss on early extinguishment of debt | 0 | 0 | -25.9 | 0 |
Gain on sale of equity interest | 0 | 0 | 14.5 | 0 |
Other income (expense), net | 3.1 | 0 | 9.2 | -0.8 |
Total other expense | -56.6 | -21.8 | -152.9 | -63.1 |
Net (loss) income from continuing operations before income taxes | -64.4 | 3.9 | -169.2 | -13.9 |
Income tax expense | -5.4 | -4.3 | -18 | -11.2 |
Net loss from continuing operations | -69.8 | -0.4 | -187.2 | -25.1 |
Discontinued operations: | ' | ' | ' | ' |
Loss from discontinued operations | 0 | 0.1 | 0 | 2.7 |
Gain on sale of assets | 0 | 0 | 0 | 0.8 |
Income tax benefit | 0 | 0 | 0 | 0.3 |
Net loss from discontinued operations | 0 | -0.1 | 0 | -1.6 |
Net loss | -69.8 | -0.5 | -187.2 | -26.7 |
Other comprehensive (loss) income: | ' | ' | ' | ' |
Foreign currency translation (loss) gain | -57.8 | 42.3 | -47.7 | 3.6 |
Pension and post-retirement gain (loss), net of tax | 0.4 | -0.5 | 0.3 | 0.2 |
Derivative financial instruments unrealized (loss) gain, net of tax | 2.3 | -2.6 | -4 | -1.9 |
Other comprehensive (loss) income | -55.1 | 39.2 | -51.4 | 1.9 |
Comprehensive (loss) income | ($124.90) | $38.70 | ($238.60) | ($24.80) |
Basic net loss per share (in dollars per share): | ' | ' | ' | ' |
Continuing operations | ($0.82) | ($0.01) | ($2.22) | ($0.29) |
Discontinued operations | $0 | $0 | $0 | ($0.02) |
Total basic net loss per share | ($0.82) | ($0.01) | ($2.22) | ($0.31) |
Diluted net loss per share (in dollars per share): | ' | ' | ' | ' |
Continuing operations | ($0.82) | ($0.01) | ($2.22) | ($0.29) |
Discontinued operations | $0 | $0 | $0 | ($0.02) |
Total diluted net loss per share | ($0.82) | ($0.01) | ($2.22) | ($0.31) |
Weighted average number of shares used in per share calculations: | ' | ' | ' | ' |
Basic shares | 84.7 | 85.1 | 84.5 | 84.9 |
Diluted shares | 84.7 | 85.1 | 84.5 | 84.9 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $132.50 | $153.70 |
Restricted cash | 12.1 | 10.9 |
Accounts receivable, net | 297.3 | 346 |
Notes receivable, net | 128.1 | 158.7 |
Inventories | 170.9 | 137.8 |
Deferred income taxes, current portion | 36.2 | 31 |
Prepaid expenses, deposits and other current assets | 72.9 | 119.3 |
Total current assets | 850 | 957.4 |
Property and equipment, net | 739.6 | 773.1 |
Long-term notes receivable | 55.5 | 72.6 |
Goodwill | 1,168.70 | 1,183.10 |
Intangible assets, net | 500.3 | 411.1 |
Software, net | 306.8 | 343.5 |
Equity investments | 298.7 | 367.2 |
Other assets | 119.3 | 128.4 |
Total assets | 4,038.90 | 4,236.40 |
Current liabilities: | ' | ' |
Debt payments due within one year | 30.9 | 30.4 |
Accounts payable | 94.3 | 140.9 |
Accrued liabilities | 266.9 | 280.3 |
Total current liabilities | 392.1 | 451.6 |
Deferred income taxes | 146.6 | 138 |
Other long-term liabilities | 216.1 | 109.6 |
Long-term debt, excluding current installments | 3,178.40 | 3,162.20 |
Total liabilities | 3,933.20 | 3,861.40 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Class A common stock, par value $0.01 per share: 199.3 shares authorized; 102.0 and 100.4 shares issued and 84.8 and 85.2 shares outstanding, respectively | 1 | 1 |
Additional paid-in capital | 736.6 | 737.8 |
Accumulated loss | -423.6 | -236.4 |
Treasury stock, at cost: 17.2 and 15.2 shares held, respectively | -175.2 | -145.7 |
Accumulated other comprehensive (loss) income | -33.1 | 18.3 |
Total stockholders' equity | 105.7 | 375 |
Total liabilities and stockholdersb equity | $4,038.90 | $4,236.40 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Class A common stock, par value (in dollars per share) | $0.01 | $0.01 |
Class A common stock, shares authorized | 199,300,000 | 199,300,000 |
Class A common stock, shares issued | 102,000,000 | 100,400,000 |
Class A common stock, shares outstanding | 84,800,000 | 85,200,000 |
Treasury stock, at cost, shares held | 17,200,000 | 15,200,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($187.20) | ($26.70) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 290.5 | 111.7 |
Change in deferred income taxes | 5.2 | 1.5 |
Stock-based compensation | 18.1 | 17.3 |
Non-cash interest expense | 12.8 | 5.1 |
Loss (earnings) from equity investments, net | 7.8 | -13 |
Distributed earnings from equity investments | 22.5 | 28.8 |
Loss on early extinguishment of debt | 25.9 | 0 |
Gain on sale of equity interest | -14.5 | 0 |
Changes in current assets and liabilities, net of effects of acquisitions: | ' | ' |
Accounts and notes receivable | 80.8 | 9.6 |
Inventories | -30.9 | -9.3 |
Accounts payable | -36.5 | -18.2 |
Accrued liabilities | 1.2 | -2.4 |
Other current assets and liabilities | 41.6 | -4.8 |
Other | -3.9 | -4 |
Net cash provided by operating activities | 233.4 | 95.6 |
Cash flows from investing activities: | ' | ' |
Additions to property and equipment | -32.4 | -22.9 |
Lottery and gaming services expenditures | -73.1 | -51.3 |
Intangible assets and software expenditures | -70.8 | -38.1 |
Proceeds from asset disposals | 0.5 | 10.9 |
Change in other assets and liabilities, net | 0 | -0.2 |
Additions to equity method investments | -43.3 | -65 |
Distributions of capital on equity investments | 45.4 | 19.4 |
Proceeds from sale of equity interest | 44.9 | 0 |
Restricted cash | -1.1 | 30.8 |
Business acquisitions, net of cash acquired | 0 | -0.4 |
Net cash used in investing activities | -129.9 | -116.8 |
Cash flows from financing activities: | ' | ' |
Proceeds from the issuance of long-term debt | 347.9 | 3.9 |
Payments on long-term debt | -377.3 | -13.4 |
Payments of financing fees | -22.8 | -2 |
Payments on license obligations | -7 | 0 |
Common stock repurchases | -29.5 | 0 |
Contingent earnout payments | -10.2 | 0 |
Net redemptions of common stock under stock-based compensation plans | -19.1 | -2.1 |
Net cash used in financing activities | -118 | -13.6 |
Effect of exchange rate changes on cash and cash equivalents | -6.7 | -0.7 |
Decrease in cash and cash equivalents | -21.2 | -35.5 |
Cash and cash equivalents, beginning of period | 153.7 | 109 |
Cash and cash equivalents, end of period | $132.50 | $73.50 |
Description_of_the_Business_an
Description of the Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of the Business and Summary of Significant Accounting Policies | ' |
Description of the Business and Summary of Significant Accounting Policies | |
Description of the Business | |
We are a leading diversified supplier of technology-based products and services to the gaming and lottery industries. Our portfolio includes instant and draw-based lottery games; gaming machines and game content; server-based lottery and gaming systems; sports betting technology; loyalty and rewards programs; and interactive products and services. Upon our acquisition of WMS in October 2013, we significantly expanded our global gaming business. | |
Basis of Presentation and Principles of Consolidation | |
The accompanying consolidated financial statements of the Company have been prepared in accordance with SEC and U.S. GAAP requirements. All monetary values set forth in these financial statements are in U.S. dollars ("$") unless otherwise stated herein. The accompanying consolidated financial statements include the Company's accounts and subsidiaries that are wholly owned and in which we have a controlling financial interest. Investments in other entities in which we do not have a controlling financial interest but we exert significant influence are accounted for in the consolidated financial statements using the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation. We have evaluated subsequent events through the date of these financial statements. In the opinion of management, we have made all adjustments necessary to present fairly our consolidated financial position, results of operations, comprehensive (loss) income and cash flows for the periods presented. Such adjustments are of a normal, recurring nature. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2013 Annual Report on Form 10-K. Interim results of operations are not necessarily indicative of results of operations for a full year. | |
In our Consolidated Statements of Operations and Comprehensive (Loss) Income for the three and nine months ended September 30, 2013, we reclassified $1.4 million and $4.7 million, respectively, of R&D expense previously included within SG&A to conform to the current-year presentation. | |
On March 25, 2013, we completed the sale of our installed base of gaming machines in our pub business as discussed in Note 3 (Acquisitions and Dispositions) in this Quarterly Report on Form 10-Q. The results of the discontinued pub operations for the three and nine months ended September 30, 2013 are presented herein in accordance with ASC 205, Presentation of Financial Statements - Discontinued Operations. There were no results of operations for this business for the three or nine months ended September 30, 2014. | |
Significant Accounting Policies | |
There have been no changes to our significant accounting policies described in Note 1 (Description of the Business and Summary of Significant Accounting Policies) in our 2013 Annual Report on Form 10-K except for the addition of our lease accounting policy and an update to our minimum guarantees policy as described below. | |
Lease Accounting | |
We account for assets held under leases in accordance with ASC 840, Leases. For leases classified as operating leases, we record expense on a straight-line basis over the base term of the lease agreements. For assets accounted for as capital leases, we record the lower of the net present value of the future minimum lease payments or the fair value of the leased asset at the inception of the lease. Amortization expense is computed using the straight-line method over the shorter of the estimated useful lives of the asset or the period of the related lease. | |
Minimum Guarantees | |
We enter into long-term license agreements in which we are obligated to pay a minimum guaranteed amount of royalties, typically annually. We account for the minimum guaranteed obligations within other long-term liabilities at the onset of the license arrangement and record a corresponding licensed asset within intangible assets, net. The licensed assets related to the minimum guaranteed obligations are amortized over the term of the license agreement and included in depreciation and amortization. The long-term liability related to the minimum guaranteed obligations is reduced as royalty payments are made under the license agreement. The weighted average remaining term of our license agreements with minimum guaranteed obligations was six years and four years as of September 30, 2014 and December 31, 2013, respectively. Our total minimum guaranteed obligations reflected in our Consolidated Balance Sheets were $178.3 million and $216.0 million as of September 30, 2014 and December 31, 2013, respectively. Additionally, our remaining expected future payments of minimum guaranteed obligations is $10.6 million (with $27.4 million of payments made through September 30, 2014), $29.2 million, $28.9 million, $28.7 million and $80.9 million in the years ending December 31, 2014, 2015, 2016, 2017 and 2018 and thereafter, respectively. | |
Recently Issued Accounting Guidance | |
In January 2014, the FASB issued ASU 2014-05, Service Concession Arrangements (Topic 853), a consensus of the FASB Emerging Issues Task Force, which specified that an operating entity should not account for a service concession arrangement within the scope of the update as a lease in accordance with ASC 840, Leases. The guidance is effective for fiscal years beginning after December 15, 2014. We do not expect ASU 2014-05 to have a material effect on our financial condition, results of operations or cash flows. | |
In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 changes the criteria for reporting discontinued operations and modifies related disclosure requirements. The new guidance is effective on a prospective basis for fiscal years beginning after December 15, 2014, and interim periods thereafter. We do not expect ASU 2014-08 to have a material effect on our financial condition, results of operations or cash flows. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The amended guidance outlines a single comprehensive revenue model for entities to use in accounting for revenue from contracts with customers. The guidance supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” ASU 2014-09 is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2016 (early adoption is not permitted). We are currently evaluating the impact of adopting ASU 2014-09. | |
In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. ASU 2014-12 requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in ASC 718, Compensation—Stock Compensation, as it relates to such awards. ASU 2014-12 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015 with early adoption permitted using either of two methods: (i) prospective to all awards granted or modified after the effective date; or (ii) retrospective to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter, with the cumulative effect of applying ASU 2014-12 as an adjustment to the opening retained earnings balance as of the beginning of the earliest annual period presented in the financial statements. We do not expect ASU 2014-12 to have a material effect on our financial condition, results of operations or cash flows. | |
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern: Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern. ASU 2014-15 requires management to perform interim and annual assessments as to whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year of the date the financial statements are issued and to provide related disclosures, if required. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and for annual periods and interim periods thereafter. Early adoption is permitted. We do not expect ASU 2014-15 to have a material effect on our financial condition, results of operations or cash flows. |
Reportable_Segment_Information
Reportable Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Reportable Business Segment Information | ' | ||||||||||||||||
Reportable Business Segment Information | |||||||||||||||||
We report our operations in three business segments—Instant Products, Lottery Systems and Gaming—representing our different products and services. These are our reportable segments under ASC 280, Segment Reporting. The Instant Products and Lottery Systems business segments are managed by one executive and the Gaming business segment is managed by a different executive, both of whom report to our chief executive officer (who is our "chief operating decision maker" under applicable accounting standards). Our three business segments represent the aggregation of similar operating segments. Our Instant Products business segment is comprised of our instant products operating segment, which provides instant lottery games and related value-added services, as well as licensed brands that are printed on instant lottery games and other promotional lottery products. Our Lottery Systems business segment is comprised of our lottery systems operating segment, which provides products and services to lottery operators generally comprised of a central system, customized computer software, data communication services, support and/or related equipment. Our Gaming business segment includes (1) our gaming operating segment, which generally sells new and used gaming machines, conversion kits and parts, and leases or otherwise provides gaming machines, systems and content, to commercial, tribal and governmental gaming operators, and (2) our interactive operating segment, which provides social gaming entertainment and game server services for real-money gaming. Additional discussion regarding the products and services from which each reportable business segment derives its revenue is included in Note 1 (Description of the Business and Summary of Significant Accounting Policies) in our 2013 Annual Report on Form 10-K. | |||||||||||||||||
Effective in the fourth quarter of 2013, we revised our business and operating segments to reflect the reorganization of our business following the WMS acquisition and the resulting changes in the financial information regularly reviewed by our chief executive officer. Based on that review, we moved our video systems operating segment from the Lottery Systems business segment to the Gaming business segment. This change, which was effective as of December 31, 2013, had no impact on the Company's consolidated financial statements for any periods. Business segment information for the three and nine months ended September 30, 2013 has been adjusted to reflect this change. | |||||||||||||||||
The following tables present revenue, cost of revenue, SG&A, R&D, employee termination and restructuring, D&A, operating (loss) income from continuing operations and earnings (loss) from equity investments by business segment for the three and nine months ended September 30, 2014 and 2013. Certain unallocated expenses managed at the corporate level, comprised primarily of general and administrative costs and other income (expense), net, are not allocated to our business segments. Segment results for 2013 below do not include the results of WMS, which we acquired in October 2013. The increase in unallocated corporate costs for the three and nine months ended September 30, 2014 primarily related to the inclusion of WMS results. | |||||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||
Instant Products | Lottery Systems | Gaming | Total | ||||||||||||||
Revenue: | |||||||||||||||||
Instant games | $ | 130.8 | $ | — | $ | — | $ | 130.8 | |||||||||
Services | — | 48.2 | 134.6 | 182.8 | |||||||||||||
Product sales | 3.2 | 30.5 | 68.3 | 102 | |||||||||||||
Total revenue | 134 | 78.7 | 202.9 | 415.6 | |||||||||||||
Cost of instant games (1) | 69.7 | — | — | 69.7 | |||||||||||||
Cost of services (1) | — | 30.4 | 39.2 | 69.6 | |||||||||||||
Cost of product sales (1) | 2.4 | 24.6 | 32.9 | 59.9 | |||||||||||||
Selling, general and administrative | 12.2 | 5.6 | 42.4 | 60.2 | |||||||||||||
Research and development | 0.5 | 0.9 | 24.9 | 26.3 | |||||||||||||
Employee termination and restructuring | 0.4 | — | 1.5 | 1.9 | |||||||||||||
Depreciation and amortization | 8.9 | 16 | 69.8 | 94.7 | |||||||||||||
Segment operating income (loss) from continuing operations | $ | 39.9 | $ | 1.2 | $ | (7.8 | ) | $ | 33.3 | ||||||||
Unallocated corporate costs | 41.1 | ||||||||||||||||
Consolidated operating loss from continuing operations | $ | (7.8 | ) | ||||||||||||||
Earnings (loss) from equity investments | $ | (15.4 | ) | $ | 0.1 | $ | 1.3 | $ | (14.0 | ) | |||||||
(1) Exclusive of depreciation and amortization. | |||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||
Instant Products | Lottery Systems | Gaming | Total | ||||||||||||||
Revenue: | |||||||||||||||||
Instant games | $ | 129.7 | $ | — | $ | — | $ | 129.7 | |||||||||
Services | — | 48.6 | 32.1 | 80.7 | |||||||||||||
Product sales | 3.1 | 13.6 | 7.3 | 24 | |||||||||||||
Total revenue | 132.8 | 62.2 | 39.4 | 234.4 | |||||||||||||
Cost of instant games (1) | 70.6 | — | — | 70.6 | |||||||||||||
Cost of services (1) | — | 27.1 | 15.5 | 42.6 | |||||||||||||
Cost of product sales (1) | 2.2 | 7.3 | 3.8 | 13.3 | |||||||||||||
Selling, general and administrative | 11.5 | 5.3 | 6.3 | 23.1 | |||||||||||||
Research and development | 0.1 | 0.9 | 0.4 | 1.4 | |||||||||||||
Depreciation and amortization | 9.2 | 13.4 | 12.4 | 35 | |||||||||||||
Segment operating income from continuing operations | $ | 39.2 | $ | 8.2 | $ | 1 | $ | 48.4 | |||||||||
Unallocated corporate costs | 22.7 | ||||||||||||||||
Consolidated operating income from continuing operations | $ | 25.7 | |||||||||||||||
Earnings (loss) from equity investments | $ | 5.2 | $ | 0.1 | $ | (1.9 | ) | $ | 3.4 | ||||||||
(1) Exclusive of depreciation and amortization. | |||||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||
Instant Products | Lottery | Gaming | Total | ||||||||||||||
Systems | |||||||||||||||||
Revenue: | |||||||||||||||||
Instant games | $ | 392.4 | $ | — | $ | — | $ | 392.4 | |||||||||
Services | — | 149.3 | 389.6 | 538.9 | |||||||||||||
Product sales | 9.4 | 63.3 | 216.6 | 289.3 | |||||||||||||
Total revenue | 401.8 | 212.6 | 606.2 | 1,220.60 | |||||||||||||
Cost of instant games (1) | 212.5 | — | — | 212.5 | |||||||||||||
Cost of services (1) | — | 90.4 | 110.3 | 200.7 | |||||||||||||
Cost of product sales (1) | 6.5 | 50.8 | 103.9 | 161.2 | |||||||||||||
Selling, general and administrative | 38.9 | 17.1 | 132.9 | 188.9 | |||||||||||||
Research and development | 1 | 1.7 | 74.3 | 77 | |||||||||||||
Employee termination and restructuring | 1.6 | — | 8.9 | 10.5 | |||||||||||||
Depreciation and amortization | 26.2 | 44.6 | 200.2 | 271 | |||||||||||||
Segment operating income (loss) from continuing operations | $ | 115.1 | $ | 8 | $ | (24.3 | ) | $ | 98.8 | ||||||||
Unallocated corporate costs | 115.1 | ||||||||||||||||
Consolidated operating loss from continuing operations | $ | (16.3 | ) | ||||||||||||||
Earnings (loss) from equity investments | $ | (12.4 | ) | $ | 1.3 | $ | 3.3 | $ | (7.8 | ) | |||||||
(1) Exclusive of depreciation and amortization. | |||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||
Instant Products | Lottery | Gaming | Total | ||||||||||||||
Systems | |||||||||||||||||
Revenue: | |||||||||||||||||
Instant games | $ | 379 | $ | — | $ | — | $ | 379 | |||||||||
Services | — | 146.1 | 101.6 | 247.7 | |||||||||||||
Product sales | 10.1 | 35.2 | 17 | 62.3 | |||||||||||||
Total revenue | 389.1 | 181.3 | 118.6 | 689 | |||||||||||||
Cost of instant games (1) | 210.3 | — | — | 210.3 | |||||||||||||
Cost of services (1) | — | 82 | 53 | 135 | |||||||||||||
Cost of product sales (1) | 7.2 | 22.4 | 9.7 | 39.3 | |||||||||||||
Selling, general and administrative | 35.5 | 16 | 19.3 | 70.8 | |||||||||||||
Research and development | 0.4 | 3.1 | 1.2 | 4.7 | |||||||||||||
Employee termination and restructuring | 0.3 | — | — | 0.3 | |||||||||||||
Depreciation and amortization | 27 | 38.8 | 44.8 | 110.6 | |||||||||||||
Segment operating income (loss) from continuing operations | $ | 108.4 | $ | 19 | $ | (9.4 | ) | $ | 118 | ||||||||
Unallocated corporate costs | 68.8 | ||||||||||||||||
Consolidated operating income from continuing operations | $ | 49.2 | |||||||||||||||
Earnings (loss) from equity investments | $ | 15.8 | $ | 0.7 | $ | (3.5 | ) | $ | 13 | ||||||||
(1) Exclusive of depreciation and amortization. | |||||||||||||||||
The following table presents a reconciliation of business segment operating income from continuing operations to net (loss) income from continuing operations before income taxes for each period: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Reportable business segment operating income from continuing operations | $ | 33.3 | $ | 48.4 | $ | 98.8 | $ | 118 | |||||||||
Unallocated corporate costs | (41.1 | ) | (22.7 | ) | (115.1 | ) | (68.8 | ) | |||||||||
Consolidated operating (loss) income from continuing operations | (7.8 | ) | 25.7 | (16.3 | ) | 49.2 | |||||||||||
Interest expense | (45.7 | ) | (25.2 | ) | (142.9 | ) | (75.3 | ) | |||||||||
Earnings (loss) from equity investments | (14.0 | ) | 3.4 | (7.8 | ) | 13 | |||||||||||
Loss on early extinguishment of debt | — | — | (25.9 | ) | — | ||||||||||||
Gain on sale of equity interest | — | — | 14.5 | — | |||||||||||||
Other income (expense), net | 3.1 | — | 9.2 | (0.8 | ) | ||||||||||||
Net (loss) income from continuing operations before income taxes | $ | (64.4 | ) | $ | 3.9 | $ | (169.2 | ) | $ | (13.9 | ) | ||||||
In evaluating segment financial performance, we focus on operating income as a segment’s measure of profit or loss. Segment operating income is income before other income (expense), net, interest expense, earnings (loss) from equity investments, loss on early extinguishment of debt, gain on sale of equity interest, unallocated corporate costs and income taxes. The accounting policies of the business segments are the same as those described in our summary of significant accounting policies in Note 1 (Description of the Business and Summary of Significant Accounting Policies) in this Quarterly Report on Form 10-Q and Note 1 (Description of the Business and Summary of Significant Accounting Policies) in our 2013 Annual Report on Form 10-K. |
Acquisitions_and_Dispositions
Acquisitions and Dispositions | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Acquisitions and Dispositions [Abstract] | ' | |||||||
Acquisitions and Dispositions | ' | |||||||
Acquisitions and Dispositions | ||||||||
Pending Acquisition of Bally | ||||||||
On August 1, 2014, we entered into a merger agreement pursuant to which we agreed to acquire Bally, a leading supplier of gaming machines, table game products, systems, and interactive gaming solutions, for $83.30 in cash per common share. The aggregate transaction value is approximately $5.1 billion, including the refinancing of approximately $1.8 billion of existing Bally net debt. | ||||||||
We received early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), in August 2014, which satisfied one of the conditions to closing the merger. The closing of the merger remains subject to approval of the merger by Bally stockholders, receipt of certain gaming regulatory approvals and other customary closing conditions. | ||||||||
The merger agreement contains certain termination rights for both Scientific Games and Bally and further provides that, in connection with termination of the merger agreement under specified circumstances, (1) we may be required to pay to Bally a termination fee of $105.0 million if all the conditions to closing have been met and the merger is not consummated because of a breach by our lenders of their obligations to finance the transaction, (2) we may be required to pay to Bally a termination fee of $105.0 million if the parties are unable to obtain the gaming regulatory approvals that are conditions to closing and (3) Bally may be required to pay us a termination fee of $80.0 million under specified circumstances, including, but not limited to, a change in the Bally board’s recommendation of the merger or in connection with Bally’s termination of the merger agreement to enter into a written definitive agreement for a “superior proposal” (as defined in the merger agreement). | ||||||||
The transaction is expected to be completed in the fourth quarter. However, no assurance can be given that the transaction will be completed. | ||||||||
Acquisitions | ||||||||
On October 18, 2013, we acquired WMS, a global gaming supplier with a diversified suite of products and strong content creation capabilities, for $1,485.9 million. | ||||||||
Subsequent to the filing of our 2013 Annual Report on Form 10-K, we adjusted the estimated fair values of certain WMS assets to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized as of that date. The adjustments resulted in a decrease in goodwill of approximately $3.8 million related to the recognition of non-U.S.-based current and deferred tax assets and liabilities. We have applied the adjustment retrospectively to the opening balance sheet at October 18, 2013. | ||||||||
We have completed the allocation of the purchase price, which resulted in the purchase price exceeding the aggregate fair value of the acquired assets and assumed liabilities at the acquisition date by $381.8 million. Such excess amount has been recognized as goodwill within our Gaming segment. We attribute this goodwill to enhanced financial and operational scale, market diversification, opportunities for synergies and other strategic benefits. None of the goodwill associated with the acquisition is deductible for income tax purposes and, as such, no deferred taxes have been recorded related to goodwill. | ||||||||
At October 18, 2013 | ||||||||
Current assets | $ | 503.9 | ||||||
Long-term notes receivable | 76.2 | |||||||
Property, plant and equipment, net | 465.8 | |||||||
Goodwill | 381.8 | |||||||
Intangible assets | 325 | |||||||
Intellectual property | 201.2 | |||||||
Other long-term assets | 7.8 | |||||||
Total assets | 1,961.70 | |||||||
Current liabilities | (158.9 | ) | ||||||
Deferred income taxes | (166.6 | ) | ||||||
Long-term liabilities | (150.3 | ) | ||||||
Total liabilities | (475.8 | ) | ||||||
Total equity purchase price | $ | 1,485.90 | ||||||
As required by ASC 805, Business Combinations, the following unaudited pro forma financial information for the three and nine months ended September 30, 2013 gives effect to the WMS acquisition as if it had been completed on January 1, 2012. The unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of what the operating results actually would have been had the WMS acquisition been completed on January 1, 2012. The unaudited pro forma financial information does not purport to project the future operating results of the Company. The unaudited pro forma financial information does not reflect (1) any anticipated synergies (or costs to achieve anticipated synergies) or (2) the impact of non-recurring items directly related to the WMS acquisition. | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, 2013 | September 30, 2013 | |||||||
Revenue from Consolidated Statements of Operations and Comprehensive (Loss) Income | $ | 234.4 | $ | 689 | ||||
Add: WMS revenue not reflected in Consolidated Statements of Operations and Comprehensive (Loss) Income | 166.4 | 547.1 | ||||||
Unaudited pro forma revenue | $ | 400.8 | $ | 1,236.10 | ||||
Three Months Ended | Nine Months Ended | |||||||
September 30, 2013 | September 30, 2013 | |||||||
Net loss from continuing operations from Consolidated Statements of Operations and Comprehensive (Loss) Income | $ | (0.4 | ) | $ | (25.1 | ) | ||
Add: WMS net loss from continuing operations not reflected in Consolidated Statements of Operations and Comprehensive (Loss) Income plus pro forma adjustments (1), (2), (3) and (4) below | (25.4 | ) | (45.0 | ) | ||||
Unaudited pro forma net loss from continuing operations | $ | (25.8 | ) | $ | (70.1 | ) | ||
Unaudited pro forma amounts reflect the following adjustments: | ||||||||
(1) An adjustment to reflect additional D&A of $8.4 million and $28.9 million for the three and nine months ended September 30, 2013, respectively, that would have been incurred assuming the fair value adjustments to intangible assets and property and equipment had been applied on January 1, 2012. | ||||||||
(2) An adjustment to reverse acquisition-related fees and expenses of $3.5 million and $20.5 million for the three and nine months ended September 30, 2013, respectively. | ||||||||
(3) An adjustment to reflect additional interest expense of $20.4 million and $61.0 million for the three and nine months ended September 30, 2013, respectively, that would have been incurred assuming our new credit facilities were in place as of January 1, 2012. | ||||||||
(4) An adjustment of $0.5 million and $3.0 million to reverse the U.S. tax benefit and expense of WMS for the three and nine months ended September 30, 2013, respectively, under the assumption that the U.S. taxable income of WMS would have been offset by U.S. tax attributes of the Company. | ||||||||
Dispositions | ||||||||
On March 25, 2013, we completed the sale of our installed base of gaming terminals in our pub business for £0.5 million. There were no results of operations for this business for the three and nine months ended September 30, 2014. The components of our loss from discontinued operations for the three and nine months ended September 30, 2013 are presented below: | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, 2013 | September 30, 2013 | |||||||
Revenue: | ||||||||
Services | $ | — | $ | 1.8 | ||||
Operating expenses: | ||||||||
Cost of services (1) | 0.1 | 3 | ||||||
Selling, general and administrative | — | 1 | ||||||
Depreciation and amortization | — | 0.5 | ||||||
Loss from discontinued operations | (0.1 | ) | (2.7 | ) | ||||
Other expense | — | — | ||||||
Gain on sale of assets | — | 0.8 | ||||||
Income tax benefits | — | 0.3 | ||||||
Net loss from discontinued operations | $ | (0.1 | ) | $ | (1.6 | ) | ||
(1) Exclusive of depreciation and amortization. |
Restructuring_Plans
Restructuring Plans | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||
Restructuring Plans | ' | |||||||||||||||||
Restructuring Plans | ||||||||||||||||||
We recorded pre-tax employee termination and restructuring costs of $1.9 million and $0 for the three months ended September 30, 2014 and 2013, respectively, and recorded pre-tax employee termination and restructuring costs of $12.4 million and $0.3 million for the nine months ended September 30, 2014 and 2013, respectively. Employee termination and restructuring initiatives reported in the nine months ended September 30, 2013 were related to initiatives that were completed as of September 30, 2013 and therefore, are not included in the tables below. | ||||||||||||||||||
WMS Integration-Related Restructuring Plan | ||||||||||||||||||
Upon our acquisition of WMS in October 2013, we began integrating Scientific Games and WMS and implementing our plans to streamline our operations and cost structure. We have recorded costs that meet the criteria under ASC 420, Exit and Disposal Cost Obligations, in each of our segments associated with integration activities that have been initiated in the relevant period. These costs include employee severance costs, costs relating to the exiting of facilities and costs related to exiting two immaterial businesses. | ||||||||||||||||||
Unallocated corporate employee termination costs primarily related to terminations of certain executives, including our former chief executive officer, in the fourth quarter of 2013. | ||||||||||||||||||
Other Restructuring Plans | ||||||||||||||||||
In December 2013, we initiated a plan to exit our Provoloto instant lottery game operations in Mexico, which was completed during the three months ended March 31, 2014. In June 2014, we initiated a plan to exit our paper roll conversion operations in the U.S., which are immaterial to our operations. Employee termination and restructuring costs related to these initiatives are included in our Instant Products segment. | ||||||||||||||||||
Employee Termination and Restructuring Costs by Segment | ||||||||||||||||||
The following table presents a summary of employee termination and restructuring costs by segment related to the restructuring plans described above, including the costs incurred during the three and nine months ended September 30, 2014, the cumulative costs incurred through September 30, 2014 since the relevant restructuring activities were initiated and the total expected costs related to the relevant restructuring activities that have been initiated. As additional integration-related activities are initiated, we expect to incur additional costs related to those activities. | ||||||||||||||||||
Business Segment | Employee Termination Costs | Property Costs | Other | Total | ||||||||||||||
Instant Products | Three months ended September 30, 2014 | $ | — | $ | 0.4 | $ | — | $ | 0.4 | |||||||||
Nine months ended September 30, 2014 | 1 | 0.4 | 0.2 | 1.6 | ||||||||||||||
Cumulative | 1 | 0.4 | 4.9 | 6.3 | ||||||||||||||
Expected Total | 1 | 0.4 | 4.9 | 6.3 | ||||||||||||||
Lottery Systems | Three months ended September 30, 2014 | — | — | — | — | |||||||||||||
Nine months ended September 30, 2014 | — | — | — | — | ||||||||||||||
Cumulative | 0.4 | — | — | 0.4 | ||||||||||||||
Expected Total | 0.4 | — | — | 0.4 | ||||||||||||||
Gaming | Three months ended September 30, 2014 | 1.4 | — | 0.1 | 1.5 | |||||||||||||
Nine months ended September 30, 2014 | 6.8 | 0.4 | 1.7 | 8.9 | ||||||||||||||
Cumulative | 10.6 | 1.4 | 5.5 | 17.5 | ||||||||||||||
Expected Total | 10.6 | 1.4 | 5.6 | 17.6 | ||||||||||||||
Unallocated corporate | Three months ended September 30, 2014 | — | — | — | — | |||||||||||||
Nine months ended September 30, 2014 | 1.7 | 0.2 | — | 1.9 | ||||||||||||||
Cumulative | 8.6 | 2.3 | — | 10.9 | ||||||||||||||
Expected Total | 8.6 | 2.3 | — | 10.9 | ||||||||||||||
Total | Three months ended September 30, 2014 | $ | 1.4 | $ | 0.4 | $ | 0.1 | $ | 1.9 | |||||||||
Nine months ended September 30, 2014 | $ | 9.5 | $ | 1 | $ | 1.9 | $ | 12.4 | ||||||||||
Cumulative | $ | 20.6 | $ | 4.1 | $ | 10.4 | $ | 35.1 | ||||||||||
Expected Total | $ | 20.6 | $ | 4.1 | $ | 10.5 | $ | 35.2 | ||||||||||
The following table presents a summary of employee termination and restructuring costs and changes in the related accruals. | ||||||||||||||||||
Employee Termination Costs | Property Costs | Other | Total | |||||||||||||||
Balance as of December 31, 2013 | $ | 9.3 | $ | 2.8 | $ | 0.1 | $ | 12.2 | ||||||||||
Additional accruals | 9.5 | 1 | 1.9 | 12.4 | ||||||||||||||
Cash payments | (12.1 | ) | (0.9 | ) | (1.9 | ) | (14.9 | ) | ||||||||||
Non-cash expense | 0.5 | (0.6 | ) | 1.6 | 1.5 | |||||||||||||
Balance as of September 30, 2014 | $ | 7.2 | $ | 2.3 | $ | 1.7 | $ | 11.2 | ||||||||||
Basic_and_Diluted_Net_Loss_Per
Basic and Diluted Net Loss Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Basic and Diluted Net Loss Per Share | ' | ||||||||||||||||
Basic and Diluted Net Loss Per Share | |||||||||||||||||
The following represents a reconciliation of the numerator and denominator used in computing basic and diluted net loss per share available to common stockholders for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net loss | |||||||||||||||||
Net loss from continuing operations | $ | (69.8 | ) | $ | (0.4 | ) | $ | (187.2 | ) | $ | (25.1 | ) | |||||
Net loss from discontinued operations | — | (0.1 | ) | — | (1.6 | ) | |||||||||||
Net loss | $ | (69.8 | ) | $ | (0.5 | ) | $ | (187.2 | ) | $ | (26.7 | ) | |||||
Weighted average number of shares used in per share calculations: | |||||||||||||||||
Basic shares | 84.7 | 85.1 | 84.5 | 84.9 | |||||||||||||
Diluted shares | 84.7 | 85.1 | 84.5 | 84.9 | |||||||||||||
Basic net loss per share: | |||||||||||||||||
Continuing operations | $ | (0.82 | ) | $ | (0.01 | ) | $ | (2.22 | ) | $ | (0.29 | ) | |||||
Discontinued operations | — | — | — | (0.02 | ) | ||||||||||||
Total basic net loss per share | $ | (0.82 | ) | $ | (0.01 | ) | $ | (2.22 | ) | $ | (0.31 | ) | |||||
Diluted net loss per share: | |||||||||||||||||
Continuing operations | $ | (0.82 | ) | $ | (0.01 | ) | $ | (2.22 | ) | $ | (0.29 | ) | |||||
Discontinued operations | — | — | — | (0.02 | ) | ||||||||||||
Total diluted net loss per share | $ | (0.82 | ) | $ | (0.01 | ) | $ | (2.22 | ) | $ | (0.31 | ) | |||||
For all periods presented, basic and diluted net loss per share is the same, as any additional common stock equivalents would be anti-dilutive. We excluded 1.7 million and 3.4 million of stock options from the weighted average diluted common shares outstanding as of September 30, 2014 and 2013, respectively, which would have been anti-dilutive due to the net loss in those periods. In addition, we excluded 4.0 million and 5.1 million of RSUs from the calculation of weighted average diluted common shares outstanding as of September 30, 2014 and 2013, respectively, which would have been anti-dilutive due to the net loss in those periods. |
Accounts_and_Notes_Receivable_
Accounts and Notes Receivable and Credit Quality of Notes Receivable | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||
Accounts and Notes Receivable and Credit Quality of Notes Receivable | ' | |||||||||||||||
Accounts and Notes Receivable and Credit Quality of Notes Receivable | ||||||||||||||||
Accounts and Notes Receivable | ||||||||||||||||
The following summarizes the components of our current and long-term accounts and notes receivable, net, as of September 30, 2014 and December 31, 2013: | ||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||
Current: | ||||||||||||||||
Accounts receivable | $ | 307.9 | $ | 360.4 | ||||||||||||
Notes receivable | 135.5 | 164.3 | ||||||||||||||
Allowance for doubtful accounts | (18.0 | ) | (20.0 | ) | ||||||||||||
Current accounts and notes receivable, net | $ | 425.4 | $ | 504.7 | ||||||||||||
Long-term: | ||||||||||||||||
Notes receivable | 55.5 | 72.6 | ||||||||||||||
Total accounts and notes receivable, net | $ | 480.9 | $ | 577.3 | ||||||||||||
Credit Quality of Notes Receivable | ||||||||||||||||
We carry our notes receivable at face amounts less an allowance for doubtful accounts and imputed interest. Interest income is recognized ratably over the life of the note receivable and any related fees or costs to establish the notes are expensed as incurred, as they are considered insignificant. Actual or imputed interest, if any, is determined based on stated rates or current market rates at the time the note originated and is recorded as interest income in other income (expense), net, ratably over the payment period. We impute interest income on notes receivable with terms greater than one year that do not contain a stated interest rate. The interest rates on our outstanding notes receivable ranged from 4.0% to 10.4% at September 30, 2014. Our policy is to generally recognize interest on our notes receivable until the note receivable is deemed non-performing, which we define as a note on which payments are over 180 days past due. The amount of our non-performing notes was immaterial at September 30, 2014. | ||||||||||||||||
We monitor the credit quality of our accounts receivable by reviewing an aging of customer invoices. Invoices are considered past due if a scheduled payment is not received within agreed upon terms. Our notes receivable are reviewed for impairment at least quarterly. We also review a variety of other relevant qualitative information such as collection experience, economic conditions and customer-specific financial conditions to evaluate credit risk in recording the allowance for doubtful accounts or as an indicator of an impaired loan. Where possible, we seek payment deposits, collateral, pledge agreements, bills of exchange, foreign bank letters of credit or personal guarantees with respect to notes receivable from our customers. However, the majority of our international notes receivable are not collateralized. Currently, we have not sold our notes receivable to third parties; therefore, we do not have any off-balance sheet liabilities for factored receivables. | ||||||||||||||||
The government authorities in Argentina limit the exchange of pesos into U.S. dollars and the transfer of funds from Argentina. Our accounts and notes receivable, net, from customers in Argentina at September 30, 2014 was $24.9 million, which is denominated in U.S. dollars, although, under the terms of our arrangements with our customers in Argentina, they are required to pay us in pesos at the spot exchange rate between the peso and the U.S. dollar on the date of payment. In evaluating the collectability of customer receivables in Argentina at September 30, 2014, we specifically evaluated recent payments, receivable aging, any additional security or collateral we had (bills of exchange, pledge agreements, etc.) and other facts and circumstances relevant to our customers’ ability to pay. Our customers in Argentina have continued to pay us in pesos based on the spot exchange rate between the peso and the U.S. dollar on the payment date. We collected $27.5 million of outstanding receivables from customers in Argentina during the nine months ended September 30, 2014. | ||||||||||||||||
Recent government actions and challenges affecting the gaming industry in Mexico have increased the credit quality risk with respect to certain of our current Mexico customers. Our accounts and notes receivable, net, from customers in Mexico at September 30, 2014 was $36.1 million. We collected $14.2 million of outstanding receivables from customers in Mexico during the nine months ended September 30, 2014. | ||||||||||||||||
The following summarizes the components of total notes receivable, net, as of September 30, 2014 and December 31, 2013: | ||||||||||||||||
30-Sep-14 | Balances over 90 days past due | 31-Dec-13 | Balances over 90 days past due | |||||||||||||
Notes receivable: | ||||||||||||||||
Domestic | $ | 48.1 | $ | 2.2 | $ | 65.1 | $ | 0.4 | ||||||||
International | 142.9 | 8.2 | 171.8 | 8.7 | ||||||||||||
Total notes receivable | 191 | 10.4 | 236.9 | 9.1 | ||||||||||||
Notes receivable allowance for doubtful accounts: | ||||||||||||||||
Domestic | — | — | — | — | ||||||||||||
International | (7.4 | ) | (4.7 | ) | (5.6 | ) | (3.3 | ) | ||||||||
Total notes receivable allowance for doubtful accounts | (7.4 | ) | (4.7 | ) | (5.6 | ) | (3.3 | ) | ||||||||
Note receivable, net | $ | 183.6 | $ | 5.7 | $ | 231.3 | $ | 5.8 | ||||||||
At September 30, 2014, 3.1% of our total notes receivable, net, was past due by over 90 days compared to 2.5% at December 31, 2013. | ||||||||||||||||
The following tables detail our evaluation of notes receivable for impairment as of September 30, 2014 and December 31, 2013: | ||||||||||||||||
30-Sep-14 | Ending Balance Individually Evaluated for Impairment | Ending Balance Collectively Evaluated for Impairment | ||||||||||||||
Notes receivable: | ||||||||||||||||
Domestic | $ | 48.1 | $ | 6.7 | $ | 41.4 | ||||||||||
International | 142.9 | 78.9 | 64 | |||||||||||||
Total notes receivable | $ | 191 | $ | 85.6 | $ | 105.4 | ||||||||||
31-Dec-13 | Ending Balance Individually Evaluated for Impairment | Ending Balance Collectively Evaluated for Impairment | ||||||||||||||
Notes receivable: | ||||||||||||||||
Domestic | $ | 65.1 | $ | 4.8 | $ | 60.3 | ||||||||||
International | 171.8 | 99.7 | 72.1 | |||||||||||||
Total notes receivable | $ | 236.9 | $ | 104.5 | $ | 132.4 | ||||||||||
The following table reconciles the allowance for doubtful notes receivable from December 31, 2013 to September 30, 2014: | ||||||||||||||||
Total | Ending Balance Individually Evaluated for Impairment | Ending Balance Collectively Evaluated for Impairment | ||||||||||||||
Beginning balance at December 31, 2013 | $ | 5.6 | $ | 5.6 | $ | — | ||||||||||
Charge-offs | (0.1 | ) | (0.1 | ) | — | |||||||||||
Recoveries | — | — | — | |||||||||||||
Provision | 1.9 | 1.9 | — | |||||||||||||
Ending balance at September 30, 2014 | $ | 7.4 | $ | 7.4 | $ | — | ||||||||||
Modifications to original financing terms are exceptions to our cash collection process and are a function of collection activities with the customer. If a customer requests a modification of financing terms during the collection process, we evaluate the proposed modification in relation to the recovery of our gaming machines, generally seek additional security and recognize any additional interest income ratably over the remaining new financing term. Additionally, we often take the opportunity to simplify the customer's future payments by consolidating several notes (each typically representing an individual purchase transaction) into one note. In those instances, the aging of any outstanding receivable balance would be adjusted to reflect the new payment terms. Any such modifications generally do not include a concession on the amount owed and generally result only in a delay of payments relative to the original terms. | ||||||||||||||||
The following summarizes the notes receivable financing terms that were modified during the nine months ended September 30, 2014: | ||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||
# of | # of Notes | Pre-Modification | Post-Modification | |||||||||||||
Customers | Investment | Investment | ||||||||||||||
Financing term modifications: | ||||||||||||||||
International (1) | 9 | 28 | $ | 12.8 | $ | 12.8 | ||||||||||
Total financing term modifications | 9 | 28 | $ | 12.8 | $ | 12.8 | ||||||||||
(1) The modifications are detailed below: | ||||||||||||||||
• | One customer for which 12 notes were consolidated into one note aggregating $4.0 million, with an average 28-month payment extension; | |||||||||||||||
• | One customer for which three notes were consolidated into one note aggregating $3.1 million, with an average four-month payment extension; | |||||||||||||||
• | One customer with a note for $2.3 million for which original payment terms were extended by nine months; | |||||||||||||||
• | One customer for which four notes were consolidated into one note aggregating $1.4 million, with an average five-month extension, and another note for $0.2 million for which original payment terms were extended by seven months; | |||||||||||||||
• | One customer for which two notes were consolidated into one note aggregating $0.7 million, with an average 15-month payment extension; | |||||||||||||||
• | One customer with a note for $0.5 million for which original payment terms were extended by 21 months; | |||||||||||||||
• | One customer with a note for $0.3 million for which original payment terms were extended by 27 months; | |||||||||||||||
• | One customer for which two notes were consolidated into one note aggregating $0.2 million, with an average 14-month payment extension; and | |||||||||||||||
• | One customer with a note for $0.1 million for which original payment terms were extended by 21 months. | |||||||||||||||
In certain international jurisdictions, we offer extended financing terms related to our customers. Such financing activities subject us to increased credit risk, which could be exacerbated by, among other things, unfavorable economic conditions or political or economic instability in those regions. Our notes receivable were concentrated in the following international gaming jurisdictions at September 30, 2014: | ||||||||||||||||
Peru | 25 | % | ||||||||||||||
Mexico | 17 | % | ||||||||||||||
Argentina | 12 | % | ||||||||||||||
Colombia | 10 | % | ||||||||||||||
Other (less than 5% individually) | 11 | % | ||||||||||||||
Total international notes receivable as a percentage of total notes receivable | 75 | % |
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
Inventories consisted of the following as of the dates presented below: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Parts and work-in-process | $ | 70.4 | $ | 62.1 | |||||
Finished goods | 100.5 | 75.7 | |||||||
Inventory | $ | 170.9 | $ | 137.8 | |||||
Parts and work-in-process include parts for lottery terminals, gaming machines and instant lottery ticket materials as well as labor and overhead costs associated with the manufacturing of instant lottery games. Our finished goods inventory primarily consists of instant games for our participation arrangements, gaming machines for sale and our licensed branded merchandise. |
Property_and_Equipment
Property and Equipment | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
Property and Equipment | |||||||||
The following table presents certain information regarding our lottery and gaming equipment at September 30, 2014 and December 31, 2013: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Lottery equipment | $ | 358.8 | $ | 350.3 | |||||
Less: accumulated depreciation | (237.7 | ) | (210.6 | ) | |||||
Net lottery equipment | 121.1 | 139.7 | |||||||
Gaming equipment | 478.3 | 439.7 | |||||||
Less: accumulated depreciation | (223.9 | ) | (145.0 | ) | |||||
Net gaming equipment | 254.4 | 294.7 | |||||||
Total lottery and gaming equipment, net | $ | 375.5 | $ | 434.4 | |||||
The following table presents certain information regarding our other property and equipment, including capital leases, at September 30, 2014 and December 31, 2013: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Land | $ | 25.1 | $ | 25.6 | |||||
Buildings and leasehold improvements | 182.2 | 181.6 | |||||||
Machinery and equipment | 269.3 | 239.1 | |||||||
Furniture and fixtures | 25.6 | 30.1 | |||||||
Transportation equipment | 4.4 | 6.4 | |||||||
Construction in progress | 12 | 33.4 | |||||||
Capital leases | 41.8 | — | |||||||
Less: accumulated depreciation | (196.3 | ) | (177.5 | ) | |||||
Total other property and equipment, net | $ | 364.1 | $ | 338.7 | |||||
Total property and equipment, net | $ | 739.6 | $ | 773.1 | |||||
Depreciation expense for the three and nine months ended September 30, 2014 was $58.5 million and $166.8 million, respectively. Depreciation expense for the three and nine months ended September 30, 2013 was $23.7 million and $78.2 million, respectively. Depreciation expense is excluded from cost of instant games, cost of services, cost of product sales and other operating expenses and is separately stated within depreciation and amortization on the Consolidated Statements of Operations and Comprehensive (Loss) Income. Accumulated amortization of capital lease assets was $3.4 million and $0 as of September 30, 2014 and December 31, 2013, respectively. |
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Intangible Assets and Goodwill | ' | ||||||||||||||||
Intangible Assets and Goodwill | |||||||||||||||||
Intangible Assets | |||||||||||||||||
The following presents certain information regarding our intangible assets as of September 30, 2014 and December 31, 2013. Amortizable intangible assets are generally amortized on a straight-line basis over their estimated useful lives with no estimated residual values. | |||||||||||||||||
Intangible Assets | Gross Carrying Amount | Accumulated Amortization | Net Balance | ||||||||||||||
Balance as of September 30, 2014 | |||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||
Patents | $ | 17.1 | $ | 8 | $ | 9.1 | |||||||||||
Customer lists | 161.3 | 37.2 | 124.1 | ||||||||||||||
Licenses | 309.2 | 82.4 | 226.8 | ||||||||||||||
Intellectual property | 8.5 | 6.6 | 1.9 | ||||||||||||||
Brand name | 39.3 | 3.8 | 35.5 | ||||||||||||||
Non-compete agreements | 0.3 | 0.2 | 0.1 | ||||||||||||||
Lottery contracts | 1.5 | 1.5 | — | ||||||||||||||
537.2 | 139.7 | 397.5 | |||||||||||||||
Non-amortizable intangible assets: | |||||||||||||||||
Trade name | 104.9 | 2.1 | 102.8 | ||||||||||||||
Total intangible assets | $ | 642.1 | $ | 141.8 | $ | 500.3 | |||||||||||
Balance as of December 31, 2013 | |||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||
Patents | $ | 14.5 | $ | 7.1 | $ | 7.4 | |||||||||||
Customer lists | 161.9 | 24 | 137.9 | ||||||||||||||
Licenses | 181 | 59.9 | 121.1 | ||||||||||||||
Intellectual property | 8.6 | 5.7 | 2.9 | ||||||||||||||
Brand name | 39.3 | 0.6 | 38.7 | ||||||||||||||
Non-compete agreements | 0.4 | 0.2 | 0.2 | ||||||||||||||
Lottery contracts | 1.5 | 1.4 | 0.1 | ||||||||||||||
407.2 | 98.9 | 308.3 | |||||||||||||||
Non-amortizable intangible assets: | |||||||||||||||||
Trade name | 104.9 | 2.1 | 102.8 | ||||||||||||||
Total intangible assets | $ | 512.1 | $ | 101 | $ | 411.1 | |||||||||||
Acquired intangible assets related to customer relationships and long-term licenses are amortized over a weighted average useful life of approximately 13.6 years and 2.9 years, respectively. The increase in the carrying amount of licenses for the nine months ended September 30, 2014 primarily reflected the recording of approximately $106 million associated with a long-term license agreement, which was amended and extended in the first quarter of 2014. The carrying value of the licensed asset increased to reflect the additional minimum guaranteed obligations under the amended license agreement. For additional information regarding licensed assets with minimum guaranteed obligations, see Note 1 (Description of the Business and Summary of Significant Accounting Policies) in this Quarterly Report on Form 10-Q. | |||||||||||||||||
The aggregate intangible amortization expense for the three and nine months ended September 30, 2014 was $18.1 million and $49.0 million, respectively. The aggregate intangible amortization expense for the three and nine months ended September 30, 2013 was $5.2 million and $15.0 million, respectively. These amounts are included in depreciation and amortization in our Consolidated Statements of Operations and Comprehensive (Loss) Income. | |||||||||||||||||
Goodwill | |||||||||||||||||
The table below reconciles the change in the carrying amount of goodwill by reportable segment from December 31, 2012 to September 30, 2014. | |||||||||||||||||
Goodwill | Instant | Lottery | Gaming | Totals | |||||||||||||
Products | Systems | ||||||||||||||||
Balance as of December 31, 2012 | $ | 328 | $ | 210.7 | $ | 262.7 | $ | 801.4 | |||||||||
Acquisitions | — | — | 381.8 | 381.8 | |||||||||||||
Impairments | (5.4 | ) | — | — | (5.4 | ) | |||||||||||
Foreign currency adjustments | (2.4 | ) | 2.7 | 5 | 5.3 | ||||||||||||
Reallocation of goodwill | 20 | (39.7 | ) | 19.7 | — | ||||||||||||
Balance as of December 31, 2013 | 340.2 | 173.7 | 669.2 | 1,183.10 | |||||||||||||
Foreign currency adjustments | (2.8 | ) | (6.0 | ) | (5.6 | ) | (14.4 | ) | |||||||||
Balance as of September 30, 2014 | $ | 337.4 | $ | 167.7 | $ | 663.6 | $ | 1,168.70 | |||||||||
Subsequent to the filing of our 2013 Annual Report on Form 10-K, we adjusted the estimated fair values of certain WMS assets acquired to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized as of that date. The adjustments resulted in a decrease in goodwill of approximately $3.8 million related to the recognition of non-U.S.-based current and deferred tax assets and liabilities. We have applied the adjustment retrospectively to the Consolidated Balance Sheet as of December 31, 2013. |
Software
Software | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Capitalized Computer Software, Net [Abstract] | ' | ||||||||
Software | ' | ||||||||
Software | |||||||||
The following table presents certain information regarding our software as of September 30, 2014 and December 31, 2013: | |||||||||
30-Sep-14 | 31-Dec-13 | ||||||||
Software | $ | 500.8 | $ | 457.7 | |||||
Accumulated amortization | (194.0 | ) | (114.2 | ) | |||||
Software, net | $ | 306.8 | $ | 343.5 | |||||
Amortization expense for the three and nine months ended September 30, 2014 was $23.8 million and $74.7 million, respectively. Amortization expense for the three and nine months ended September 30, 2013 was $6.3 million and $17.9 million, respectively. Amortization expense is excluded from cost of instant games, cost of services, cost of product sales and other operating expenses and is separately stated within depreciation and amortization on the Consolidated Statements of Operations and Comprehensive (Loss) Income. |
Equity_Method_Investments
Equity Method Investments | 9 Months Ended |
Sep. 30, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
Equity Method Investments | ' |
Equity Method Investments | |
The following provides an update for events that occurred during the nine months ended September 30, 2014 related to our equity method investments, which are disclosed in Note 11 (Equity Investments) in our 2013 Annual Report on Form 10-K. | |
Northstar Illinois | |
Under the terms of a PMA, Northstar Illinois is entitled to receive annual incentive compensation payments from the lottery to the extent it is successful in increasing the Illinois lottery's net income (as defined in the PMA) above specified target levels, subject to a cap of 5% of the applicable year's net income, and is responsible for annual payments to the lottery to the extent such targets are not achieved, subject to a similar cap. During the three months ended June 30, 2014, we understand that Northstar Illinois recorded a liability related to an estimated shortfall payment for the lottery's fiscal year ended June 30, 2014. We recorded a charge of $8.0 million, representing our 20% share of that liability, in earnings (loss) from equity investments in our Consolidated Statements of Operations and Comprehensive (Loss) Income during the three months ended June 30, 2014. During the three months ended September 30, 2014, we contributed $13.5 million to Northstar Illinois primarily to fund our pro rata share of shortfall payments that are payable to the lottery under the PMA. | |
Northstar Illinois and the State have disagreed regarding the State’s calculation of net income for each of the lottery fiscal years during the term of the PMA. In August 2014, we understand that the Governor’s office of the State of Illinois directed the Illinois Department of Lottery to end the PMA with Northstar Illinois. Although an agreement has not yet been reached between Northstar Illinois and the lottery, in light of the direction by the Governor’s office to the lottery to end the PMA with Northstar Illinois and the status of discussions among the parties, in the September 2014 quarter, the Company recorded a non-cash impairment charge of $19.7 million to write down its investment in Northstar Illinois. | |
Sportech | |
In January 2014, we completed the sale of our 20% equity interest in Sportech for cash proceeds of £27.8 million, or $44.9 million, resulting in a gain of approximately £9 million, or $14.5 million, which is reflected as a gain on sale of equity interest in our Consolidated Statements of Operations and Comprehensive (Loss) Income. | |
LNS | |
During the nine months ended September 30, 2014, we received a distribution of capital of €20.7 million, or $28.0 million, and a dividend of €13.3 million, or $18.2 million, net of withholding taxes, from LNS. | |
ITL | |
During the nine months ended September 30, 2014, we contributed €29.4 million, or $40.6 million, to ITL. During the nine months ended September 30, 2014, we received a distribution of capital of €11.9 million, or $17.4 million, from ITL. | |
RCN | |
During the nine months ended September 30, 2014, we received a dividend of $4.3 million from RCN. |
LongTerm_and_Other_Debt
Long-Term and Other Debt | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term and Other Debt | ' | ||||||||
Long-Term and Other Debt | |||||||||
Outstanding Debt | |||||||||
The following reflects our outstanding debt as of September 30, 2014 and December 31, 2013: | |||||||||
30-Sep-14 | 31-Dec-13 | ||||||||
Revolver, varying interest rate, due 2018 | $ | — | $ | — | |||||
Term loan, varying interest rate, due 2020 (1) | 2,272.90 | 2,288.80 | |||||||
2018 Notes | 250 | 250 | |||||||
2019 Notes (2) | — | 346.3 | |||||||
2020 Notes | 300 | 300 | |||||||
2021 Notes (3) | 347.7 | — | |||||||
China Loans, varying interest rates | — | 7.4 | |||||||
Capital lease obligations, 3.9% interest as of September 30, 2014 payable monthly through 2019 | 38.7 | 0.1 | |||||||
Total long-term debt outstanding and capital lease obligations | 3,209.30 | 3,192.60 | |||||||
Less: debt and capital lease payments due within one year | (30.9 | ) | (30.4 | ) | |||||
Long-term debt, net of current installments | $ | 3,178.40 | $ | 3,162.20 | |||||
-1 | Total of $2,282.8 million less amortization of a loan discount in the amount of $9.9 million as of September 30, 2014. Total of $2,300.0 million less amortization of a loan discount in the amount of $11.2 million as of December 31, 2013. | ||||||||
-2 | Total of $350.0 million less amortization of a loan discount in the amount of $3.7 million as of December 31, 2013. | ||||||||
-3 | Total of $350.0 million less amortization of a loan discount in the amount of $2.3 million as of September 30, 2014. | ||||||||
Senior Secured Credit Facilities | |||||||||
In connection with the WMS acquisition, the Company and certain of its subsidiaries entered into a credit agreement dated as of October 18, 2013, by and among SGI, as the borrower, the Company, as a guarantor, Bank of America, N.A., as administrative agent, and the lenders and other agents party thereto, providing for senior secured credit facilities in an aggregate principal amount of $2,600.0 million, including a $300.0 million revolving credit facility, which has dollar and multi-currency tranches, and a $2,300.0 million term loan facility. The term loan facility was used, in part, to finance the consideration paid in the WMS acquisition, to repay all indebtedness under our and WMS' prior credit agreements and to pay related acquisition and financing fees and expenses. Up to $200.0 million of the revolving credit facility is available for issuances of letters of credit. The term loan is scheduled to mature on October 18, 2020 and the revolving credit facility is scheduled to mature on October 18, 2018 (subject to accelerated maturity under certain circumstances). | |||||||||
SGI is required to pay commitment fees to revolving lenders on the actual daily unused portion of the revolving commitments at a rate of 0.50% per annum through maturity, subject to a step-down to 0.375% based upon certain first lien net leverage ratios. The credit facilities contain customary events of default (subject to customary grace periods and materiality thresholds). Upon the occurrence of certain events of default, the obligations under the credit facilities may be accelerated and the commitments may be terminated. | |||||||||
Borrowings under the credit agreement (including the term loans under the Escrow Credit Agreement discussed below, after they are assumed by SGI) are guaranteed by the Company and each of its current and future direct and indirect wholly owned domestic subsidiaries (other than SGI), subject to certain customary exceptions as set forth in the credit agreement. | |||||||||
Contemplated Financing for Bally Acquisition | |||||||||
In connection with the pending Bally acquisition, we entered into a commitment letter with Bank of America, N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated, JPMorgan Chase Bank, N.A., Deutsche Bank AG New York Branch and certain of their respective affiliates, which was subsequently joined by Fifth Third Bank, HSBC Securities (USA) Inc., HSBC Bank USA, N.A., PNC Capital Markets LLC and PNC Bank, National Association as additional commitment parties. Pursuant to the commitment letter, the commitment parties have agreed to provide the financing necessary to fund the consideration to be paid pursuant to the terms of the merger agreement (the “Debt Financing”). The commitment letter contemplates that the Debt Financing will consist of, among other things, (1) a senior secured incremental term loan facility (in an originally contemplated principal amount of $1,735.0 million), (2) a senior secured increase in the revolving credit facility (in an originally contemplated principal amount of $350.0 million), (3) if applicable, amendments to, or the refinancing of, Scientific Games’ existing credit facilities, consisting of (a) a senior secured term loan facility in a total principal amount of $2,294.0 million and (b) a senior secured revolving credit facility in a total principal amount of $650 million, and (4) senior secured notes and senior unsecured notes yielding $3,450.0 million in aggregate gross cash proceeds and/or to the extent that the issuance of such notes yields less than $3,450.0 million in aggregate gross cash proceeds or such cash proceeds are otherwise unavailable, a senior secured bridge loan facility and a senior unsecured bridge loan facility up to an aggregate principal amount of $3,450 million (less the cash proceeds received from the notes and available for use, if any). The funding of the Debt Financing is contingent on the satisfaction of certain conditions set forth in the commitment letter. The merger is not conditioned on our obtaining the proceeds of any financing, including the Debt Financing. | |||||||||
In connection with the pending Bally acquisition, on October 1, 2014, the Company entered into an amendment to its existing credit agreement to, among other things, (1) effective as of October 1, 2014, permit the Bally acquisition and the transactions related thereto, including the incurrence of term loans by SGMS Escrow Corp., and (2) effective as of the consummation of the Bally acquisition (and the satisfaction of the other conditions contemplated by the amendment), (A) increase the Company’s existing revolving credit facility by $267.6 million, (B) permit SGI to assume the term loans under the Escrow Credit Agreement (as defined below) as incremental term loans under the existing credit agreement and (C) modify the financial covenant applicable to the revolving credit facility under the existing credit agreement such that it will be tested each quarter, irrespective of usage of that revolving credit facility. | |||||||||
As a result of the amendment, the applicable margin for the existing term loans under the credit agreement (1) prior to the consummation of the Bally acquisition, will remain at 3.25% per annum for eurodollar (LIBOR) loans and 2.25% per annum for base rate loans and (2) from and after the consummation of the Bally acquisition, will be 5.00% per annum for eurodollar (LIBOR) loans and 4.00% per annum for base rate loans. There will be no change to the borrowing rate applicable to loans borrowed or to letters of credit issued under the revolving credit facility after the consummation of the Bally acquisition. | |||||||||
In addition, on October 1, 2014, SGMS Escrow Corp. entered into an escrow credit agreement (the “Escrow Credit Agreement”) by and among SGMS Escrow Corp., as borrower, the lenders and other agents from time to time party thereto, and Bank of America, N.A., as administrative agent. The Escrow Credit Agreement provides for $2.0 billion of new term loans, the net proceeds of which are expected to provide a portion of the funds to be used to finance the Bally acquisition. Upon and in connection with the consummation of the Bally acquisition, the term loans under the Escrow Credit Agreement will be assumed by SGI and become incremental term loans under the existing credit agreement. | |||||||||
The term loans under the Escrow Credit Agreement (including after they are assumed by SGI and become incremental term loans under the existing credit agreement) are scheduled to mature on October 1, 2021 (subject to accelerated maturity under certain circumstances) and amortize in equal quarterly installments beginning on the last day of the first of March, June, September or December to occur after completion of the Bally acquisition, in an amount equal to 1.00% per annum of the stated principal amount thereof, with the remaining balance due at final maturity. Interest on the new term loans is payable at a rate equal to the eurodollar (LIBOR) rate or the base rate, plus an applicable margin, in each case, subject to a eurodollar (LIBOR) rate floor of 1.00% or a base rate floor of 2.00%, as applicable. The applicable margin for the incremental term loans (under the Escrow Credit Agreement and, if and when assumed by SGI, the existing credit agreement) is 5.00% per annum for eurodollar (LIBOR) loans and 4.00% per annum for base rate loans. | |||||||||
Borrowings under the Escrow Credit Agreement are solely the obligation of SGMS Escrow Corp., are not guaranteed by the Company or any of its subsidiaries, and are secured by a pledge of amounts deposited into a secured escrow account of SGMS Escrow Corp. In the event that the Bally acquisition is not consummated, SGMS Escrow Corp. will repay amounts borrowed under the Escrow Credit Agreement, plus accrued interest thereon, with amounts deposited into a secured escrow account of SGMS Escrow Corp. and other amounts that may be contributed by the Company and its other subsidiaries to SGMS Escrow Corp. and deposited into that escrow account from time to time. | |||||||||
The term loans under the Escrow Credit Agreement were funded into escrow, less original issue discount, by the lenders on October 17, 2014 and began accruing interest, initially at the LIBOR rate plus the applicable margin referred to above, beginning on October 18, 2014. Interest for the prospective month was funded into escrow by the Company on October 16, 2014. | |||||||||
Upon closing of the Bally acquisition, we expect to incur approximately $170 million of financing fees in connection with the term loans and revolving credit facility under the Escrow Credit Agreement and with respect to the remaining financing commitments under the commitment letter for the Bally acquisition. We also anticipate incurring fees related to our additional financing activities during the balance of the quarter ending December 31, 2014. | |||||||||
For further information regarding the Debt Financing, please see the full text of our existing credit agreement, the commitment letter, the amendment to our credit agreement and the Escrow Credit Agreement, copies of which are filed as Exhibit 10.1 to our Current Report on Form 8-K filed with the SEC on October 18, 2013, Exhibit 10.1 to our Current Report on Form 8-K filed with the SEC on August 4, 2014, and Exhibit 10.1 and Exhibit 10.2 to our Current Report on Form 8-K filed with SEC on October 7, 2014, respectively. The foregoing summaries of the terms of the existing credit agreement, the commitment letter, the amendment to the existing credit agreement and the Escrow Credit Agreement are qualified in their entirety by reference to the respective exhibit. | |||||||||
Senior Subordinated Notes | |||||||||
2021 Notes | |||||||||
On June 4, 2014, SGI issued $350.0 million in aggregate principal amount of 2021 Notes at a price of 99.321% of the principal amount thereof in a private offering to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to persons outside the United States under Regulation S under the Securities Act. The 2021 Notes were issued pursuant to an indenture dated as of June 4, 2014 (the "2021 Notes Indenture"). | |||||||||
The 2021 Notes bear interest at the rate of 6.625% per annum, which accrues from June 4, 2014 and is payable semiannually in arrears on May 15 and November 15 of each year, commencing on November 15, 2014. The 2021 Notes mature on May 15, 2021, unless earlier redeemed or repurchased, and are subject to the terms and conditions set forth in the 2021 Notes Indenture. In connection with the issuance of the 2021 Notes, the Company capitalized financing costs of $7.3 million. | |||||||||
SGI may redeem some or all of the 2021 Notes at any time prior to May 15, 2017 at a redemption price equal to 100% of the principal amount of the 2021 Notes plus accrued and unpaid interest, if any, to the date of redemption plus a “make whole” premium. SGI may redeem some or all of the 2021 Notes at any time on or after May 15, 2017 at the prices specified in the 2021 Notes Indenture. In addition, at any time on or prior to May 15, 2017, SGI may redeem up to 35% of the initially outstanding aggregate principal amount of the 2021 Notes at a redemption price of 106.625% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of redemption, with the net cash proceeds from one or more equity offerings of the Company. | |||||||||
Upon the occurrence of a change of control (as defined in the 2021 Notes Indenture), SGI must make an offer to purchase the 2021 Notes at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of repurchase. In addition, following an asset sale (as defined in the 2021 Notes Indenture) and subject to the limitations contained in the 2021 Notes Indenture, SGI must make an offer to purchase certain amounts of the 2021 Notes using the net cash proceeds from such asset sale to the extent such proceeds are not applied as set forth in the 2021 Notes Indenture, at a purchase price equal to 100% of the principal amount of the 2021 Notes to be repurchased, plus accrued interest to the date of repurchase. | |||||||||
The 2021 Notes are unsecured senior subordinated obligations of SGI and are subordinated to all of SGI’s existing and future senior debt, rank equally with all of SGI's existing and future senior subordinated debt and rank senior to all of SGI's future debt that is expressly subordinated to the 2021 Notes. The 2021 Notes are guaranteed on an unsecured senior subordinated basis by the Company and all of its 100%-owned U.S. subsidiaries (other than SGI). The 2021 Notes are structurally subordinated to all of the liabilities of the Company’s non-guarantor subsidiaries. | |||||||||
The 2021 Notes Indenture contains certain covenants that, among other things, limit the Company’s ability, and the ability of certain of its subsidiaries, to incur additional indebtedness, pay dividends or make distributions or certain other restricted payments, purchase or redeem capital stock, make investments or extend credit, engage in certain transactions with affiliates, consummate certain asset sales, effect a consolidation or merger, or sell, transfer, lease or otherwise dispose of all or substantially all assets, or create certain liens and other encumbrances on assets. The 2021 Notes Indenture contains events of default customary for agreements of its type (with customary grace periods and maturity thresholds, as applicable). | |||||||||
In connection with the issuance of the 2021 Notes, SGI, the Company, the subsidiary guarantors party thereto, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representative for the initial purchasers listed therein, entered into a registration rights agreement, dated June 4, 2014 (the “Registration Rights Agreement”). Under the Registration Rights Agreement, SGI and the guarantors agreed, for the benefit of the holders of the 2021 Notes, that they will file with the SEC and use their commercially reasonable efforts to cause to become effective, a registration statement relating to an offer to exchange the 2021 Notes for an issue of SEC-registered notes (the “Exchange Notes”) with terms identical to the 2021 Notes (except that the Exchange Notes will not be subject to restrictions on transfer or to any increase in annual interest rate as described below). | |||||||||
Under certain circumstances, including if applicable interpretations of the staff of the SEC do not permit SGI to effect the exchange offer, SGI and the guarantors will use their commercially reasonable efforts to cause to become effective a shelf registration statement relating to resales of the Notes and to keep that shelf registration statement effective until the first anniversary of the date such shelf registration statement becomes effective, or such shorter period that will terminate when all 2021 Notes covered by the shelf registration statement have been sold. The obligation to complete the exchange offer and/or file a shelf registration statement will terminate on the second anniversary of the date of the Registration Rights Agreement. | |||||||||
If the exchange offer is not completed (or, if required, the shelf registration statement is not declared effective) on or before June 4, 2015 (subject to the right of the Company to extend such date by up to 90 additional days under customary “blackout” provisions if the Company determines in good faith that it is in possession of material, non-public information), the annual interest rate borne by the 2021 Notes will be increased by 0.25% per annum for the first 90-day period immediately following such date and by an additional 0.25% per annum with respect to each subsequent 90-day period, up to a maximum additional rate of 1.00% per annum thereafter until the exchange offer is completed, the shelf registration statement is declared effective or the obligation to complete the exchange offer and/or file the shelf registration statement terminates, at which time the interest rate will revert to the original interest rate on the date the 2021 Notes were originally issued. | |||||||||
2019 Notes | |||||||||
On June 4, 2014, SGI completed a tender offer pursuant to which it purchased $140.6 million in aggregate principal amount of the 2019 Notes for total consideration of $1,051.25 for each $1,000 principle amount of the 2019 Notes tendered, plus accrued and unpaid interest to the applicable payment date. | |||||||||
On June 4, 2014, SGI delivered a notice of redemption with respect to all $209.4 million of the remaining outstanding principal amount of the 2019 Notes, and satisfied and discharged the indenture governing the 2019 Notes by depositing funds with the trustee sufficient to pay the redemption price of 104.625% of the principal amount of the 2019 Notes, plus accrued and unpaid interest to the redemption date. In accordance with the notice of redemption, the 2019 Notes were redeemed on July 4, 2014 and the redemption payment was made on July 7, 2014. | |||||||||
The purchase and redemption of the 2019 Notes were funded, in part, with the net proceeds from the issuance of the 2021 Notes. In connection with the purchase and redemption of the 2019 Notes, we recorded a loss on early extinguishment of debt of $25.9 million comprised primarily of the tender and redemption premiums and the write-off of previously deferred financing costs. | |||||||||
For additional information regarding our 2021 Notes and the repurchase and redemption of our 2019 Notes, see our Current Report on Form 8-K filed with the SEC on June 6, 2014. For additional information regarding our 2018 Notes, 2019 Notes and 2020 Notes, see Note 15 (Long-Term and Other Debt) in our 2013 Annual Report on Form 10-K. | |||||||||
We were in compliance with the covenants under our debt agreements as of September 30, 2014. | |||||||||
Other Debt | |||||||||
In September 2014, we repaid in full a $5.0 million China Loan with cash on hand. | |||||||||
Capital Leases | |||||||||
On March 31, 2014, we entered into a new leasing arrangement with ITL for the lease of gaming machines in connection with a long-term services contract with a customer. We completed the placement of the new gaming machines under this contract during the three months ended June 30, 2014 and recorded a capital lease asset and minimum lease liability of $42.8 million. The terms of this leasing arrangement provide for repayment over five years with an interest rate of 3.9%. No additional capital leases were entered into during the three months ended September 30, 2014. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Fair Value Measurements | ' |
Fair Value Measurements | |
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset and liability in an orderly transaction between market participants at the measurement date. We estimate fair value of our assets and liabilities utilizing an established three-level hierarchy as described in Note 16 (Fair Value Measurements) in our 2013 Annual Report on Form 10-K. | |
The fair value of our financial assets and liabilities is determined by reference to market data and other valuation techniques as appropriate. We believe the fair value of our financial instruments, which are principally cash and cash equivalents, accounts and notes receivable, other current assets, accounts payable and accrued liabilities, approximates their recorded values. | |
Interest rate swaption contract | |
In January 2014, we entered into a swaption contract with an aggregate notional value of $150.0 million. The swaption gives us the right, but not the obligation, to enter into a swap under which we would pay a fixed rate of 2.151% and receive interest on the notional amount based on a floating three-month LIBOR rate. We paid a premium of $0.9 million at the time we entered into the swaption and have no additional payment obligations. The cash settlement value depends on the extent to which the prevailing three-month LIBOR swap rate exceed the fixed rate under the swaption. To the extent the prevailing swap rate on the expiration date (April 15, 2015) exceeds the swaption fixed rate a payment would be due to us, which would effectively reduce our future interest costs. To the extent the prevailing swap rate is at or below the swaption fixed rate, we would not exercise the swaption and it would expire with no further cash payment from us or the counterparty. | |
The swaption is highly effective in offsetting our exposure to the variability of the three-month LIBOR rate associated with our variable rate debt. The effectiveness of the swaption is measured quarterly on a retrospective basis by comparing the cumulative change in the hedging instrument's fair value to the change in the underlying hedged transaction's fair value. In accordance with ASC 815, Derivatives and Hedging, we have designated the intrinsic value associated with the swaption as a qualifying hedge. We have elected to exclude the time value, inclusive of premium paid, from our qualifying hedging relationship. As a result, the time value of the swaption will be amortized over the period of the contract and recognized as interest expense in our Consolidated Statements of Operations and Comprehensive (Loss) Income. We will recognize all gains and losses associated with the intrinsic value of the swaption in other comprehensive (loss) income in our Consolidated Statements of Operations and Comprehensive (Loss) Income until its expiration date. Realized gains, if any, owed by the counterparty at expiration will be recognized as a reduction to interest expense in our Consolidated Statements of Operations and Comprehensive (Loss) Income by applying the effective interest method for the applicable periods. | |
As valuations for comparable swaptions are not publicly available, we categorized the swaption as Level 3 in the fair value hierarchy. We believe the estimated fair value for the swaption we hold is based on the most accurate information available for these types of derivative contracts. For the three and nine months ended September 30, 2014, there was no change in fair value associated with the intrinsic value of the swaption. The fair value of the swaption as of September 30, 2014 was $0.4 million, which is recorded in other current assets in our Consolidated Balance Sheets. | |
Interest rate swap contracts | |
In August 2013, we entered into forward starting interest rate swap contracts with an aggregate notional value of $500.0 million. In October 2013, we entered into additional forward starting interest rate swap contracts with an aggregate notional value of $200.0 million. These hedges become effective in April 2015 and mature in January 2018. We entered into the forward starting interest rate swap contracts, which are designated as cash flow hedges of the future interest payment transactions in accordance with ASC 815, Derivatives and Hedging, in order to eliminate the variability of cash flows attributable to the LIBOR component of interest expense to be paid on our variable-rate debt. Under these hedges, we will pay interest on the notional amount of debt at a weighted average fixed rate of 2.151% and receive interest on the notional amount at the greater of 1% or the then prevailing three-month LIBOR rate beginning in April 2015. | |
These hedges are highly effective in offsetting our exposure to the variability of the three-month LIBOR rate associated with our variable-rate debt. The effectiveness of these hedges is measured quarterly on a retrospective basis by comparing the cumulative change in the hedging instrument's fair value to the change in the hedged transaction's fair value. To the extent these hedges have no ineffectiveness, all gains and losses from these hedges are recorded in other comprehensive (loss) income in our Consolidated Statements of Operations and Comprehensive (Loss) Income until the future underlying interest payment transactions occur. Any realized gains or losses resulting from the hedges will be recognized (together with the hedged transaction) as interest expense in our Consolidated Statements of Operations and Comprehensive (Loss) Income beginning in June 2015. For the three and nine months ended September 30, 2014, we recorded a gain, net of tax, of $2.2 million and a loss, net of tax, of $4.2 million, respectively, in other comprehensive (loss) income in our Consolidated Statements of Operations and Comprehensive (Loss) Income, representing the change in fair value associated with these hedges. The fair value of these hedges as of September 30, 2014 was $5.7 million, which is recorded in other long-term liabilities in our Consolidated Balance Sheets. | |
Foreign currency forward contracts | |
During 2012, we entered into foreign currency forward contracts for the sale of Euros for U.S. dollars at a weighted average rate of 1.319 to hedge a portion of the net investment in one of our subsidiaries that is denominated in Euros. Some of these foreign currency forward contracts settled in 2012. In May 2013, we settled the remaining €20.0 million in aggregate notional amount of the foreign currency forward contracts, which had a weighted average rate of 1.269%. | |
We designated the forward contracts as qualified hedges in accordance with ASC 815, Derivatives and Hedging. Gains and losses from the foreign currency forward contracts were recorded in accumulated other comprehensive (loss) income in our Consolidated Balance Sheets until the investment was liquidated. | |
Other | |
In accordance with ASC 323, Investments - Equity Method and Joint Ventures, we record our share of a derivative instrument held by LNS. Changes in the fair value of the derivative instrument are recorded by LNS in other comprehensive income on LNS' statement of comprehensive income. During the three and nine months ended September 30, 2014 and 2013, our 20% share of the change associated with this derivative instrument was not material to our other comprehensive (loss) income in our Consolidated Statements of Operations and Comprehensive (Loss) Income and in equity investments in our Consolidated Balance Sheets. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Stockholders' Equity Note [Abstract] | ' | ||||||
Stockholders' Equity | ' | ||||||
Stockholders’ Equity | |||||||
The following table presents the change in the number of shares of our Class A common stock outstanding during the nine months ended September 30, 2014 and during the fiscal year ended December 31, 2013: | |||||||
Nine Months Ended September 30, 2014 | Twelve Months Ended December 31, 2013 | ||||||
Shares outstanding as of beginning of period | 85.2 | 84.4 | |||||
Shares issued as part of equity-based compensation plans and the ESPP, net of RSUs surrendered | 1.6 | 1.1 | |||||
Common stock repurchases | (2.0 | ) | (0.3 | ) | |||
Shares outstanding as of end of period | 84.8 | 85.2 | |||||
On December 5, 2013, our board of directors approved an extension of our existing stock repurchase program to December 31, 2014. The program, originally announced in May 2010, was due to expire on December 31, 2013. Under the program, we are authorized to repurchase, from time to time through open market purchases or otherwise, shares of our outstanding common stock in an aggregate amount up to $200.0 million. As of December 31, 2013, we had $104.5 million available for potential repurchases under the program. During the first quarter of 2014, we repurchased approximately 2.0 million shares at an aggregate cost of $29.5 million, which was funded by cash flows from operations. There were no share repurchases during the second and third quarters of 2014. As of September 30, 2014, we had $75.0 million available for potential repurchases under the program. | |||||||
During 2013, we repurchased 50,000 shares at an aggregate cost of $0.8 million, as well as 226,000 shares at a cost of approximately $2 million related to a cashless exercise of stock options. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Stock-Based Compensation | ||||||||||||||
We offer stock-based compensation in the form of stock options and RSUs. We also offer an ESPP. | ||||||||||||||
We grant stock options to employees and directors under our equity-based compensation plans with exercise prices that are not less than the fair market value of our common stock on the date of grant. The terms of the stock option and RSU awards, including the vesting schedule of such awards, are generally determined at the discretion of the compensation committee of our board of directors, subject to the terms of the applicable equity-based compensation plan. Options granted over the last several years have generally become exercisable in four or five equal annual installments beginning on the first anniversary of the date of grant or when certain performance targets are determined to have been met and have a maximum term of ten years. RSUs typically vest in four or five equal annual installments beginning on the first anniversary of the date of grant or when certain performance targets are determined to have been met. We record compensation cost for all stock options and RSUs based on the grant date fair value. | ||||||||||||||
In connection with the WMS acquisition, we assumed the WMS Incentive Compensation Plan (2012 Restatement) (the "Legacy WMS Plan") and the outstanding awards under such plan, which were converted into Company equity awards using a customary exchange ratio. At the time of the assumption, there were 5.6 million shares available for future issuance under the WMS Plan excluding shares underlying outstanding awards. At the Company's annual meeting of stockholders on June 11, 2014, the Company’s stockholders approved an amendment and restatement of the Company’s 2003 Incentive Compensation Plan (the “2003 Plan”). Under the amended and restated 2003 Plan, the Legacy WMS Plan was merged into the 2003 Plan. As a result, the shares reserved and available under the two plans were combined into a single share pool, with such shares available for equity awards to any employee, non-employee director or other eligible service provider of the Company or its subsidiaries, including WMS. For additional information, see the Company's Current Report on Form 8-K filed with the SEC on June 17, 2014. | ||||||||||||||
As a result of merging the plans, common stock authorized for awards increased from 13.5 million shares to 16.0 million shares under our amended and restated 2003 Plan plus available shares from a pre-existing equity-based compensation plan, which plans were approved by our stockholders. As of September 30, 2014, we had approximately 4.9 million shares available for grants of equity awards to our employees under our amended and restated 2003 Plan plus available shares from the pre-existing equity-based compensation plan. | ||||||||||||||
Under the share counting rules of our 2003 Plan, awards may be outstanding relating to a greater number of shares than the aggregate remaining shares available under our 2003 Plan so long as awards will not result in delivery and vesting of shares in excess of the number then available under the plan. Shares available for future issuance do not include shares expected to be withheld in connection with outstanding awards to satisfy tax withholding obligations, which would be available for future awards under our 2003 Plan under the applicable share counting rules. | ||||||||||||||
Our ESPP allows for a total of up to 1.0 million shares of Class A common stock to be purchased by eligible employees under offerings made each January 1 and July 1. Employees participate through payroll deductions up to a maximum of 15% of eligible compensation. The term of each offering period is six months and shares are purchased on the last day of the offering period at a 15% discount to the stock's market value. As of September 30, 2014, we had approximately 0.2 million shares available for issuance under the ESPP. | ||||||||||||||
In May 2014, our largest shareholder became a beneficial owner of more than 40% of our common stock by acquiring additional shares in the open market. As a result, under the terms of the 2003 Plan, the vesting of certain stock options and RSUs granted under the 2003 Plan prior to June 7, 2011 accelerated. The accelerated vesting resulted in $1.9 million of incremental stock-based compensation expense for the three months ended June 30, 2014. No additional expense was recorded during the three months ended September 30, 2014 as a result of the acceleration. | ||||||||||||||
Stock Options | ||||||||||||||
A summary of the changes in stock options outstanding during the nine months ended September 30, 2014 is presented below: | ||||||||||||||
Number of | Weighted | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||||
Options | Average | |||||||||||||
Remaining | ||||||||||||||
Contract Term | ||||||||||||||
(Years) | ||||||||||||||
Options outstanding as of December 31, 2013 | 2.6 | 4.2 | $ | 10.46 | $ | 17.8 | ||||||||
Granted | 0.4 | 16.03 | — | |||||||||||
Exercised | — | — | 0.2 | |||||||||||
Canceled | (1.1 | ) | 9.04 | — | ||||||||||
Options outstanding as of March 31, 2014 | 1.9 | 7.7 | $ | 12.62 | $ | 5 | ||||||||
Granted | 0.2 | 8.94 | — | |||||||||||
Exercised | — | — | 0.1 | |||||||||||
Canceled | (0.1 | ) | 13.88 | — | ||||||||||
Options outstanding as of June 30, 2014 | 2 | 7.4 | $ | 12.34 | $ | 2.3 | ||||||||
Granted | — | — | — | |||||||||||
Exercised | (0.1 | ) | 9.11 | 0.1 | ||||||||||
Canceled | (0.2 | ) | 17.36 | — | ||||||||||
Options outstanding as of September 30, 2014 | 1.7 | 7.1 | $ | 11.71 | $ | 1.8 | ||||||||
Options exercisable as of September 30, 2014 | 0.9 | 6.1 | $ | 11.01 | $ | 1.1 | ||||||||
The weighted average grant date fair value of options awarded during the three months ended June 30, 2014 and March 31, 2014 was $4.81 and $8.86, respectively. No options were granted during the three months ended September 30, 2014, September 30, 2013, June 30, 2013 and March 31, 2013. For the three and nine months ended September 30, 2014, we recognized stock-based compensation expense of $0.3 million and $1.8 million, respectively, related to the service period of stock options and a related tax benefit of $0.1 million and $0.7 million, respectively, prior to consideration of any valuation allowance recorded against the tax benefit. For the three and nine months ended September 30, 2013, we recognized stock-based compensation expense of approximately $0.9 million and $2.7 million, respectively, related to the service period of stock options and the related tax benefit of approximately $0.4 million and $1.1 million, respectively, prior to consideration of any valuation allowance recorded against the tax benefit. | ||||||||||||||
As of September 30, 2014, we had unrecognized compensation expense of $4.2 million relating to stock option awards that is scheduled to be amortized over a weighted average period of approximately two years. | ||||||||||||||
Restricted Stock Units | ||||||||||||||
A summary of the changes in RSUs outstanding during the nine months ended September 30, 2014 is presented below: | ||||||||||||||
Number of | Weighted Average Grant Date Fair Value Per RSU | |||||||||||||
RSUs | ||||||||||||||
Unvested units as of December 31, 2013 | 5.2 | $ | 11.93 | |||||||||||
Granted | 1.4 | 16.02 | ||||||||||||
Vested | (1.7 | ) | 10.09 | |||||||||||
Canceled | (0.1 | ) | 13.84 | |||||||||||
Unvested units as of March 31, 2014 | 4.8 | $ | 13.76 | |||||||||||
Granted | 0.3 | 10.33 | ||||||||||||
Vested | (0.4 | ) | 11.53 | |||||||||||
Canceled | (0.3 | ) | 13.44 | |||||||||||
Unvested units as of June 30, 2014 | 4.4 | $ | 13.5 | |||||||||||
Granted | — | 8.95 | ||||||||||||
Vested | (0.2 | ) | 14.56 | |||||||||||
Canceled | (0.2 | ) | 15.8 | |||||||||||
Unvested units as of September 30, 2014 | 4 | $ | 13.43 | |||||||||||
For the three and nine months ended September 30, 2014, we recognized stock-based compensation expense of $4.3 million and $15.9 million, respectively, related to the service period of RSUs and a related tax benefit of $1.6 million and $5.9 million, respectively, prior to consideration of any valuation allowance recorded against the tax benefit. For the three and nine months ended September 30, 2013, we recognized stock-based compensation expense of $4.6 million and $13.9 million, respectively, related to the service period of RSUs and the related tax benefit of $1.8 million and $5.3 million, respectively, prior to consideration of any valuation allowance recorded against the tax benefit. | ||||||||||||||
As of September 30, 2014, we had unrecognized compensation expense of $42.2 million relating to RSUs that is scheduled to be amortized over a weighted average period of approximately two years. |
Employee_Benefit_Plans
Employee Benefit Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||
Employee Benefit Plans | |||||||||||||||||
We have defined benefit pension plans for our U.K.-based union employees and certain Canadian-based employees (the “U.K. Plan” and the “Canadian Plan,” respectively). Retirement benefits under the U.K. Plan are based on an employee’s average compensation over the two years preceding retirement. Retirement benefits under the Canadian Plan are generally based on the number of years of credited service. Our policy is to fund the minimum contribution permissible by the applicable regulatory authorities. | |||||||||||||||||
The following table sets forth the combined amount of net periodic benefit cost recognized for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Components of net periodic pension benefit cost: | |||||||||||||||||
Service cost | $ | 0.7 | $ | 0.7 | $ | 1.9 | $ | 1.9 | |||||||||
Interest cost | 1.3 | 1.1 | 3.9 | 3.5 | |||||||||||||
Expected return on plan assets | (1.6 | ) | (1.4 | ) | (4.9 | ) | (4.2 | ) | |||||||||
Amortization of actuarial gains | 0.2 | 0.3 | 0.5 | 0.8 | |||||||||||||
Curtailment | — | — | 0.2 | — | |||||||||||||
Amortization of prior service costs | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.2 | ) | |||||||||
Net periodic cost | $ | 0.5 | $ | 0.6 | $ | 1.4 | $ | 1.8 | |||||||||
We have a 401(k) plan for U.S.-based employees. We contribute 37.5 cents on the dollar for the first 6% of participant contributions for a match of up to 2.25% of eligible compensation. In connection with the WMS acquisition, we assumed existing 401(k) plans of WMS. These plans cover union and non-union full-time employees of WMS and provide for contributions of up to 4.5% of covered non-union employees’ eligible compensation and a maximum fixed annual amount for covered union employees' eligible compensation as defined in the plans. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The effective income tax rates on the net (loss) income from continuing operations of (8.4)% and 109.5% for the three months ended September 30, 2014 and 2013, respectively, and (10.7)% and (80.5)% for the nine months ended September 30, 2014 and 2013, respectively, were determined using an estimated annual effective tax rate after considering any discrete items for such periods. Due to a valuation allowance against our U.S. deferred tax assets, the effective tax rates for the three months ended September 30, 2014 and 2013 did not include the benefit of the current-year U.S. tax loss. As a result, income tax expense for the three months ended September 30, 2014 and 2013 primarily related to income tax expense in foreign jurisdictions. | |
Our effective income tax rate on foreign earnings was impacted by the mix of income and the statutory tax rates in our foreign jurisdictions, which ranged from a low of 0% to a high of 35%. The foreign jurisdictions that had the most impact on our foreign income tax benefit (expense) in the period include Austria, Canada, Ireland and the U.K. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Litigation | ' |
Litigation | |
The Company is involved in various legal proceedings, including those discussed below. We record an accrual for legal contingencies when it is both probable that a liability will be incurred and the amount or range of the loss can be reasonably estimated (although, as discussed below, there may be an exposure to loss in excess of the accrued liability). We evaluate our accruals for legal contingencies at least quarterly and, as appropriate, establish new accruals or adjust existing accruals to reflect (1) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings and other relevant events and developments, (2) the advice and analyses of counsel and (3) the assumptions and judgment of management. Legal costs associated with our legal proceedings are expensed as incurred. We had accrued liabilities of $23.4 million and $25.9 million for all of our legal matters that were contingencies as of September 30, 2014 and December 31, 2013, respectively. | |
Substantially all of our legal contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss involves a series of complex judgments about future events. Consequently, the ultimate outcomes of our legal contingencies could result in losses in excess of amounts we have accrued. We may be unable to estimate a range of possible losses for some matters pending against the Company or its subsidiaries, even when the amount of damages claimed against the Company or its subsidiaries is stated because, among other things: (1) the claimed amount may be exaggerated or unsupported; (2) the claim may be based on a novel legal theory or involve a large number of parties; (3) there may be uncertainty as to the likelihood of a class being certified or the ultimate size of the class; (4) there may be uncertainty as to the outcome of pending appeals or motions; (5) the matter may not have progressed sufficiently through discovery or there may be significant factual or legal issues to be resolved or developed; and/or (6) there may be uncertainty as to the enforceability of legal judgments and outcomes in certain jurisdictions. Other matters have progressed sufficiently that we are able to estimate a range of possible loss. For those legal contingencies disclosed below as to which a loss is reasonably possible, whether in excess of a related accrued liability or where there is no accrued liability, and for which we are able to estimate a range of possible loss, the current estimated range is up to approximately $41 million in excess of the accrued liabilities (if any) related to those legal contingencies. This aggregate range represents management’s estimate of additional possible loss in excess of the accrued liabilities (if any) with respect to these matters based on currently available information, including any damages claimed by the plaintiffs, and is subject to significant judgment and a variety of assumptions and inherent uncertainties. For example, at the time of making an estimate, management may have only preliminary, incomplete, or inaccurate information about the facts underlying a claim; its assumptions about the future rulings of the court or other tribunal on significant issues, or the behavior and incentives of adverse parties, regulators, indemnitors or co-defendants, may prove to be wrong; and the outcomes it is attempting to predict are often not amenable to the use of statistical or other quantitative analytical tools. In addition, from time to time an outcome may occur that management had not accounted for in its estimate because it had considered that outcome to be remote. Furthermore, as noted above, the aggregate range does not include any matters for which the Company is not able to estimate a range of possible loss. Accordingly, the estimated aggregate range of possible loss does not represent our maximum loss exposure. Any such losses could have a material adverse impact on our results of operations, financial position and cash flows. The legal proceedings underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. | |
Colombia Litigation | |
Our subsidiary, SGI, owned a minority interest in Wintech de Colombia S.A., or Wintech (now liquidated), which formerly operated the Colombian national lottery under a contract with Empresa Colombiana de Recursos para la Salud, S.A. (together with its successors, "Ecosalud"), an agency of the Colombian government. The contract provided for a penalty against Wintech, SGI and the other shareholders of Wintech of up to $5.0 million if certain levels of lottery sales were not achieved. In addition, SGI delivered to Ecosalud a $4.0 million surety bond as a further guarantee of performance under the contract. Wintech started the instant lottery in Colombia but, due to difficulties beyond its control, including, among other factors, social and political unrest in Colombia, frequently interrupted telephone service and power outages, and competition from another lottery being operated in a province of Colombia that we believe was in violation of Wintech's exclusive license from Ecosalud, the projected sales level was not met for the year ended June 30, 1993. | |
In 1993, Ecosalud issued a resolution declaring that the contract was in default. In 1994, Ecosalud issued a liquidation resolution asserting claims for compensation and damages against Wintech, SGI and other shareholders of Wintech for, among other things, realization of the full amount of the penalty, plus interest, and the amount of the bond. SGI filed separate actions opposing each resolution with the Tribunal Contencioso of Cundinamarca in Colombia (the "Tribunal"), which upheld both resolutions. SGI appealed each decision to the Council of State. In May 2012, the Council of State upheld the contract default resolution, which decision was notified to us in August 2012. In October 2013, the Council of State upheld the liquidation resolution, which decision was notified to us in December 2013. | |
In July 1996, Ecosalud filed a lawsuit against SGI in the U.S. District Court for the Northern District of Georgia asserting many of the same claims asserted in the Colombia proceedings, including breach of contract, and seeking damages. In March 1997, the District Court dismissed Ecosalud’s claims. Ecosalud appealed the decision to the U.S. Court of Appeals for the Eleventh Circuit. The Court of Appeals affirmed the District Court’s decision in 1998. | |
In June 1999, Ecosalud filed a collection proceeding against SGI to enforce the liquidation resolution and recover the claimed damages. In May 2013, the Tribunal denied SGI's merit defenses to the collection proceeding and issued an order of payment of approximately 90 billion Colombian pesos (approximately $44 million based on the current exchange rate) plus default interest (potentially accrued since 1994). SGI has filed an appeal to the Council of State, which appeal has stayed the payment order. | |
SGI believes it has various defenses, including on the merits, against Ecosalud's claims. Although we believe these claims will not result in a material adverse effect on our consolidated financial position or results of operations, it is not feasible to predict the final outcome, and there can be no assurance that these claims will not ultimately be resolved adversely to us or result in material liability. | |
SNAI Litigation | |
On April 16, 2012, certain VLTs operated by SNAI S.p.a. ("SNAI") in Italy and supplied by Barcrest erroneously printed what appeared to be winning jackpot and other tickets with a face amount in excess of €400.0 million. SNAI has stated, and system data confirms, that no jackpots were actually won on that day. The terminals have been deactivated by the Italian regulatory authority. Following the incident, we understand that the Italian regulatory authority revoked the certification of the version of the gaming system that Barcrest provided to SNAI and fined SNAI €1.5 million, but determined to not revoke SNAI's concession to operate VLTs in Italy. | |
In October 2012, SNAI filed a lawsuit in the Court of First Instance of Rome in Italy against Barcrest and Global Draw, our subsidiary which acquired Barcrest from IGT-UK Group Limited, a subsidiary of International Game Technology ("IGT"), claiming liability based on breach of contract and tort. The lawsuit seeks to terminate SNAI's agreement with Barcrest and damages arising from the deactivation of the terminals, including among other things, lost profits, expenses and costs, potential awards to players who have sought to enforce what appeared to be winning jackpot and other tickets, compensation sought by managers of the gaming locations where SNAI VLTs supplied by Barcrest were installed, damages to commercial reputation and any future damages arising from SNAI's potential loss of its concession or inability to obtain a new concession. In June 2013, Barcrest and Global Draw filed a counterclaim based on SNAI's alleged breach of contract. | |
In September 2013, Global Draw brought an action against IGT-UK Group Limited and IGT in the High Court of Justice (Commercial Court) in London, England seeking relief under the indemnification and warranty provisions contained in the agreement pursuant to which Barcrest was acquired from IGT-UK Group, including in connection with the April 2012 incident and a number of ancillary matters. In November 2013, IGT-UK Group Limited filed a defense in which it denied Global Draw’s claims and counterclaimed based on Global Draw’s alleged breach of contract in connection with another ancillary matter. In September 2014, Global Draw’s motion for summary judgment was granted in respect of one of the ancillary matters but denied in respect of the April 2012 incident. Accordingly, the parties are scheduled to proceed to trial relating to the April 2012 incident and the other remaining issues in May 2015. | |
While we believe we have meritorious defenses in the Italian litigation and potential third party recoveries, the lawsuit is in its early stages and we cannot currently predict the outcome of this matter. | |
WMS Merger Litigation | |
Complaints challenging the WMS merger were filed in early 2013 in the Delaware Court of Chancery, the Circuit Court of Cook County, Illinois and the Circuit Court of the Nineteenth Judicial Circuit, Lake County, Illinois. The actions are putative class actions filed on behalf of WMS stockholders. The complaints generally allege that the WMS directors breached their fiduciary duties in connection with their consideration and approval of the merger and in connection with their public disclosures concerning the merger. The complaints allege that other defendants, including WMS, Scientific Games Corporation and certain affiliates of Scientific Games Corporation, aided and abetted those alleged breaches. The plaintiffs sought equitable relief, including to enjoin the acquisition, to rescind the acquisition if not enjoined, damages, attorneys' fees and other costs. | |
The Delaware actions have been consolidated under the caption In re WMS Stockholders Litigation (C.A. No. 8279-VCP). The plaintiffs in the consolidated Delaware actions submitted to the Delaware Court of Chancery a letter advising that they had conferred with the plaintiffs in the Illinois actions and agreed to stay the consolidated Delaware action. | |
The Lake County, Illinois actions were transferred to Cook County. All of the Illinois actions were consolidated in Cook County with Gardner v. WMS Industries Inc., et al. (No. 2013 CH 3540). | |
In April 2013, the plaintiffs in the Gardner action filed a motion for preliminary injunction to enjoin the WMS stockholder vote on the merger. Following that, in April 2013, lead counsel in the Gardner action, on behalf of counsel for plaintiffs in all actions in Delaware and Illinois, agreed to withdraw the motion for preliminary injunction and not to seek to enjoin the WMS stockholder vote in return for WMS' agreement to make certain supplemental disclosures related to the merger. WMS made those supplemental disclosures in a Current Report on Form 8-K filed with the SEC on April 29, 2013. | |
In January 2014, the plaintiffs in the Illinois action filed an amended complaint seeking damages for the alleged breach of fiduciary duties by the individual defendants and the alleged aiding and abetting of those breaches by WMS and Scientific Games Corporation. In February 2014, WMS and Scientific Games Corporation filed motions to dismiss the amended complaint. In September 2014, the plaintiffs' claims in the Illinois action were dismissed with prejudice. The plaintiffs in the Illinois action have filed a claim for attorney fees of $0.9 million, which we have opposed. | |
The Company believes the claims in the consolidated Delaware action are without merit. | |
IGT License Claims | |
In early 2012, IGT initiated an audit to determine whether WMS was in compliance with the terms of a license agreement between the two parties. IGT claimed that WMS underpaid license fees by approximately $25 million plus approximately $11 million in interest. IGT subsequently filed a demand for arbitration seeking $50.0 million from WMS. We initiated an action in the U.S. District Court for the District of Nevada seeking a preliminary injunction to enjoin or limit the scope of the arbitration and to restrain IGT from seeking to enforce certain provisions of the arbitration clause in the license agreement, as well as a refund of overpaid royalty payments. Our motion for preliminary injunction was denied by the District Court in March 2014 and our action seeking recovery of overpaid royalty payments was stayed pending resolution of certain matters in the arbitration. In June 2014, WMS, Scientific Games Corporation and IGT entered into a settlement agreement that resolved this matter and a number of other disputes and proceedings among the parties. We paid $8.0 million to IGT in connection with the settlement, substantially all of which was included in our previously accrued liabilities assumed in the WMS acquisition. The District Court action was dismissed in June 2014 and the arbitration action was dismissed in July 2014. | |
Bally Acquisition Litigation | |
The following complaints challenging the pending Bally merger were filed in August 2014 in the state District Court of Clark County, Nevada: Shaev v. Bally Technologies, Inc., Richard Haddrill, et al. (C.A. No. A-14-705012-B); Lawandoski v. Bally Technologies, Inc., Robert Guido, et al. (C.A. No. A-14-705153-C); Rosenfeld v. Bally Technologies, Inc., Robert Guido, et al. (C.A. No. A-14-705162-B); Crescente v. Bally Technologies, Inc., Robert Guido, et al. (C.A. No. A-14-705144-C); Stein v. Bally Technologies, Inc., Robert L. Guido, et al. (C.A. No. A-14-705338-B); and Hahm v. Bally Technologies, Inc., Robert Guido, et al. (C.A. No. A-14-706234-C). The actions are putative class actions filed on behalf of the public stockholders of Bally and name as defendants Bally, its directors, Scientific Games Corporation and certain of its affiliates. The complaints generally allege that the Bally directors breached their fiduciary duties in connection with their consideration and approval of the merger and that we aided and abetted those alleged breaches. The plaintiffs seek equitable relief, including to enjoin the merger, to rescind the merger if not enjoined, damages, attorneys’ fees and other costs. | |
All of the actions have been consolidated under the caption In re Bally Technologies, Inc. Shareholders Litigation (C.A. No. A-14-705012-B) (the “Nevada Action”). In October 2014, plaintiffs filed a motion for limited expedited discovery in connection with an anticipated motion to enjoin the proposed transaction. Following that, in October 2014, Bally and its directors filed a motion to dismiss the consolidated complaint and Scientific Games and its affiliates filed a motion to dismiss the count of the consolidated complaint alleging wrongdoing by Scientific Games Corporation and its affiliates. Following that, the plaintiffs withdrew their motion for expedited discovery and the parties entered into preliminary settlement discussions. | |
On October 17, 2014, following arm's-length negotiations, the parties to the Nevada Action entered into a Memorandum of Understanding ("MOU") under which they agreed in principle to settle all of the claims asserted in the Nevada Action on a class-wide basis, subject to certain conditions, including confirmatory discovery by the plaintiffs in the Nevada Action and preliminary and final approval of the Nevada court, which will consider the fairness, reasonableness and adequacy of the settlement. Bally, Scientific Games and the other named defendants entered into the MOU solely to avoid the costs, risks and uncertainties inherent in litigation and without admitting any liability or wrongdoing, and vigorously denied, and continue to vigorously deny, the claims alleged in the Nevada Action. | |
There can be no assurance that the parties will ultimately enter into a definitive settlement agreement or that the Nevada court will approve the settlement. In such event, or if the merger is not consummated for any reason, the proposed settlement will be null and void and of no force and effect. Payments made in connection with the settlement, which are subject to court approval, are not expected to be material. The settlement will not affect the consideration to be received by Bally's stockholders in the merger or the timing of the anticipated closing of the merger. | |
Additional lawsuits relating to the merger agreement or the Bally acquisition may be filed in the future. An adverse judgment for monetary damages could have a material adverse effect on the financial condition, results of operations or cash flows of Bally or us, as the case may be, and therefore could adversely affect the combined business if the merger is completed. A preliminary injunction could delay or jeopardize the completion of the merger, and an adverse judgment granting permanent injunctive relief could indefinitely enjoin completion of the merger. |
Supplemental_Cash_Flow
Supplemental Cash Flow | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
Supplemental Disclosure of Cash Flow Information | ' | |||||||
Supplemental Disclosure of Cash Flow Information | ||||||||
Additional cash flow information is presented below: | ||||||||
Nine Months Ended September 30, | ||||||||
2014 | 2013 | |||||||
Interest paid | $ | 109 | $ | 72.1 | ||||
Income taxes paid (received), net of refunds | $ | (31.6 | ) | $ | 8.9 | |||
Nine months ended September 30, 2014 | ||||||||
On March 31, 2014, we entered into a new leasing arrangement with ITL for the lease of gaming machines in connection with a long-term services contract with a customer and recorded a non-cash capital lease asset and minimum lease liability of $42.8 million during the three months ended June 30, 2104. We recorded no additional non-cash capital lease assets during the three months ended September 30, 2014. | ||||||||
During the nine months ended September 30, 2014 we recorded approximately $115 million of non-cash other assets and related long-term liabilities related to license agreements with minimum guaranteed obligations entered into during the period. | ||||||||
During the nine months ended September 30, 2014 we made a non-cash capital contribution of $10.8 million to Northstar Illinois. | ||||||||
There were no other significant non-cash investing or financing activities for the nine months ended September 30, 2014. | ||||||||
Nine months ended September 30, 2013 | ||||||||
During the nine months ended September 30, 2013 we recorded approximately $27 million of non-cash other assets and related long-term liabilities related to license agreements with minimum guaranteed obligations entered into during the period. | ||||||||
There were no other significant non-cash investing or financing activities for the nine months ended September 30, 2013. |
Financial_Information_for_Guar
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries [Abstract] | ' | ||||||||||||||||||||||||
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries | ' | ||||||||||||||||||||||||
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries | |||||||||||||||||||||||||
We conduct substantially all of our business through our U.S. and foreign subsidiaries. SGI’s obligations under the credit agreement, the 2021 Notes and the 2020 Notes are fully and unconditionally and jointly and severally guaranteed by Scientific Games Corporation (the “Parent Company”) and substantially all of our 100%-owned U.S. subsidiaries other than SGI (the “Guarantor Subsidiaries”). Our 2018 Notes, which were issued by the Parent Company, are fully and unconditionally and jointly and severally guaranteed by our 100% owned U.S. subsidiaries, including SGI. The guarantees of our 2021 Notes, 2020 Notes and 2018 Notes will terminate under following customary circumstances: (1) the sale or disposition of the capital stock of the guarantor (including by consolidation or merger of the guarantor into another person); (2) the liquidation or dissolution of the guarantor; (3) the defeasance or satisfaction and discharge of the notes; (4) the release of the guarantor from any guarantees of indebtedness of the Parent Company and SGI (or, in the case of the 2018 Notes, the release of the guarantor from any guarantees of indebtedness of the Parent Company); and (5) in the case of the 2020 Notes and 2021 Notes, the proper designation of the guarantor as an unrestricted subsidiary pursuant to the indenture governing the 2020 and 2021 Notes, respectively. | |||||||||||||||||||||||||
Presented below is condensed consolidated financial information for (1) the Parent Company, (2) SGI, (3) the Guarantor Subsidiaries and (4) our 100%-owned foreign subsidiaries and our non-100%-owned U.S. and foreign subsidiaries (collectively, the “Non-Guarantor Subsidiaries”) as of September 30, 2014 and December 31, 2013 and for the three and nine months ended September 30, 2014 and 2013. The condensed consolidating financial information has been presented to show the nature of assets held by, and the results of operations and cash flows of, the Parent Company, SGI, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries assuming the guarantee structures of the credit agreement, the 2021 Notes, the 2020 Notes and the 2018 Notes were in effect at the beginning of the periods presented. | |||||||||||||||||||||||||
The condensed consolidating financial information reflects the investments of the Parent Company in the Guarantor and Non-Guarantor Subsidiaries using the equity method of accounting. Corporate interest and administrative expenses have not been allocated to the subsidiaries. Net changes in intercompany due from/due to accounts are reported in the accompanying Supplemental Condensed Consolidating Statements of Cash Flows as investing activities if the applicable entities have a net investment (asset) in intercompany accounts, and as a financing activity if the applicable entities have a net intercompany borrowing (liability) balance. This is a correction from the prior-year presentation that reflected all changes in intercompany due to/due from accounts as financing activities in the Supplemental Condensed Consolidating Statements of Cash Flows. This correction had no impact on our consolidated results of operations for the periods presented. | |||||||||||||||||||||||||
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Parent | SGI | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Entries | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 36.4 | $ | 0.3 | $ | 11.3 | $ | 84.5 | $ | — | $ | 132.5 | |||||||||||||
Restricted cash | — | — | 12 | 0.1 | — | 12.1 | |||||||||||||||||||
Accounts receivable, net | — | 62.3 | 117.1 | 117.9 | — | 297.3 | |||||||||||||||||||
Notes receivable, net | — | — | 71.5 | 56.6 | — | 128.1 | |||||||||||||||||||
Inventories | — | 40.7 | 60.1 | 70.1 | — | 170.9 | |||||||||||||||||||
Other current assets | 14.6 | 14.4 | 51.6 | 28.5 | — | 109.1 | |||||||||||||||||||
Property and equipment, net | 0.5 | 125.7 | 410.2 | 203.2 | — | 739.6 | |||||||||||||||||||
Investment in subsidiaries | 1,849.50 | 952.6 | — | — | (2,802.1 | ) | — | ||||||||||||||||||
Goodwill | — | 253.6 | 480.5 | 434.6 | — | 1,168.70 | |||||||||||||||||||
Intangible assets, net | 161.1 | 42.4 | 284.8 | 12 | — | 500.3 | |||||||||||||||||||
Intercompany balances | — | 1,413.00 | 343.4 | — | (1,756.4 | ) | — | ||||||||||||||||||
Software, net | 12.7 | 33.2 | 211.2 | 49.7 | — | 306.8 | |||||||||||||||||||
Other assets | 3.1 | 116.4 | 26.3 | 327.7 | — | 473.5 | |||||||||||||||||||
Total assets | $ | 2,077.90 | $ | 3,054.60 | $ | 2,080.00 | $ | 1,384.90 | $ | (4,558.5 | ) | $ | 4,038.90 | ||||||||||||
Liabilities and stockholders’ equity | |||||||||||||||||||||||||
Debt payments due within one year | $ | — | $ | 23 | $ | — | $ | 7.9 | $ | — | $ | 30.9 | |||||||||||||
Other current liabilities | 39.7 | 77.5 | 117 | 127 | — | 361.2 | |||||||||||||||||||
Long-term debt, excluding current installments | 250 | 2,897.60 | — | 30.8 | — | 3,178.40 | |||||||||||||||||||
Other long-term liabilities | 179.8 | 45.9 | 69.7 | 67.3 | — | 362.7 | |||||||||||||||||||
Intercompany balances | 1,502.70 | — | — | 253.7 | (1,756.4 | ) | — | ||||||||||||||||||
Stockholders’ equity | 105.7 | 10.6 | 1,893.30 | 898.2 | (2,802.1 | ) | 105.7 | ||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,077.90 | $ | 3,054.60 | $ | 2,080.00 | $ | 1,384.90 | $ | (4,558.5 | ) | $ | 4,038.90 | ||||||||||||
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Parent | SGI | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Entries | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 56 | $ | — | $ | 24.4 | $ | 73.3 | $ | — | $ | 153.7 | |||||||||||||
Restricted cash | — | — | 10.9 | — | — | 10.9 | |||||||||||||||||||
Accounts receivable, net | — | 66.9 | 135.4 | 143.7 | — | 346 | |||||||||||||||||||
Notes receivable, net | — | — | 90.9 | 67.8 | — | 158.7 | |||||||||||||||||||
Inventories | — | 28.2 | 59.6 | 50 | — | 137.8 | |||||||||||||||||||
Other current assets | 13.9 | 10.5 | 95 | 30.9 | — | 150.3 | |||||||||||||||||||
Property and equipment, net | 1.1 | 137.3 | 441.8 | 192.9 | — | 773.1 | |||||||||||||||||||
Investment in subsidiaries | 1,962.50 | 796.5 | — | — | (2,759.0 | ) | — | ||||||||||||||||||
Goodwill | — | 251.7 | 465.4 | 466 | — | 1,183.10 | |||||||||||||||||||
Intangible assets, net | 1.9 | 42 | 340.6 | 26.6 | — | 411.1 | |||||||||||||||||||
Intercompany balances | — | 1,430.10 | 296.3 | — | (1,726.4 | ) | — | ||||||||||||||||||
Software, net | 9.4 | 31.7 | 251.4 | 51 | — | 343.5 | |||||||||||||||||||
Other assets | 6 | 147.7 | 42.2 | 372.3 | — | 568.2 | |||||||||||||||||||
Total assets | $ | 2,050.80 | $ | 2,942.60 | $ | 2,253.90 | $ | 1,474.50 | $ | (4,485.4 | ) | $ | 4,236.40 | ||||||||||||
Liabilities and stockholders’ equity | |||||||||||||||||||||||||
Debt payments due within one year | $ | — | $ | 23 | $ | — | $ | 7.4 | $ | — | $ | 30.4 | |||||||||||||
Other current liabilities | 30.4 | 63.2 | 176.2 | 151.4 | — | 421.2 | |||||||||||||||||||
Long-term debt, excluding current installments | 250 | 2,912.20 | — | — | — | 3,162.20 | |||||||||||||||||||
Other long-term liabilities | 20.8 | 37.8 | 121.2 | 67.8 | — | 247.6 | |||||||||||||||||||
Intercompany balances | 1,374.60 | — | — | 351.8 | (1,726.4 | ) | — | ||||||||||||||||||
Stockholders’ equity | 375 | (93.6 | ) | 1,956.50 | 896.1 | (2,759.0 | ) | 375 | |||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,050.80 | $ | 2,942.60 | $ | 2,253.90 | $ | 1,474.50 | $ | (4,485.4 | ) | $ | 4,236.40 | ||||||||||||
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||||||||
Parent | SGI | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Entries | ||||||||||||||||||||||
Revenue | $ | — | $ | 106.9 | $ | 159.1 | $ | 149.6 | $ | — | $ | 415.6 | |||||||||||||
Cost of instant games, cost of services and cost of product sales (1) | — | 29.7 | 82.2 | 87.3 | — | 199.2 | |||||||||||||||||||
Selling, general and administrative | 19.5 | 16.8 | 40.4 | 18.9 | — | 95.6 | |||||||||||||||||||
Research and development | — | 1.2 | 20.9 | 4.2 | — | 26.3 | |||||||||||||||||||
Employee termination and restructuring | (0.1 | ) | — | 1.4 | 0.6 | — | 1.9 | ||||||||||||||||||
Depreciation and amortization | 1.2 | 11.8 | 67.7 | 19.7 | — | 100.4 | |||||||||||||||||||
Operating (loss) income | (20.6 | ) | 47.4 | (53.5 | ) | 18.9 | — | (7.8 | ) | ||||||||||||||||
Interest expense | (0.2 | ) | (16.2 | ) | (29.1 | ) | (0.2 | ) | — | (45.7 | ) | ||||||||||||||
Other (expense) income, net | (7.0 | ) | (55.4 | ) | 41.4 | 10.1 | — | (10.9 | ) | ||||||||||||||||
Net (loss) income before equity in income of subsidiaries and income taxes | (27.8 | ) | (24.2 | ) | (41.2 | ) | 28.8 | — | (64.4 | ) | |||||||||||||||
Equity in (loss) income of subsidiaries | (38.8 | ) | 16.3 | — | — | 22.5 | — | ||||||||||||||||||
Income tax expense | (3.2 | ) | (0.2 | ) | — | (2.0 | ) | — | (5.4 | ) | |||||||||||||||
Net (loss) income from continuing operations | $ | (69.8 | ) | $ | (8.1 | ) | $ | (41.2 | ) | $ | 26.8 | $ | 22.5 | $ | (69.8 | ) | |||||||||
Net (loss) income | (69.8 | ) | (8.1 | ) | (41.2 | ) | 26.8 | 22.5 | (69.8 | ) | |||||||||||||||
Other comprehensive (loss) income | (55.1 | ) | (5.4 | ) | — | (55.7 | ) | 61.1 | (55.1 | ) | |||||||||||||||
Comprehensive (loss) income | $ | (124.9 | ) | $ | (13.5 | ) | $ | (41.2 | ) | $ | (28.9 | ) | $ | 83.6 | $ | (124.9 | ) | ||||||||
(1) Exclusive of depreciation and amortization. | |||||||||||||||||||||||||
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Parent | SGI | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Entries | ||||||||||||||||||||||
Revenue | $ | — | $ | 100.6 | $ | 20.3 | $ | 113.9 | $ | (0.4 | ) | $ | 234.4 | ||||||||||||
Cost of instant games, cost of services and cost of product sales (1) | — | 30.2 | 38.1 | 59.8 | (1.6 | ) | 126.5 | ||||||||||||||||||
Selling, general and administrative | 16.9 | 13.3 | 2.5 | 13.1 | (0.2 | ) | 45.6 | ||||||||||||||||||
Research and development | — | 0.9 | 0.2 | 0.3 | — | 1.4 | |||||||||||||||||||
Employee termination and restructuring | — | — | — | — | — | — | |||||||||||||||||||
Depreciation and amortization | 0.2 | 9.8 | 5.6 | 19.6 | — | 35.2 | |||||||||||||||||||
Operating (loss) income | (17.1 | ) | 46.4 | (26.1 | ) | 21.1 | 1.4 | 25.7 | |||||||||||||||||
Interest expense | (5.3 | ) | (19.7 | ) | — | (0.2 | ) | — | (25.2 | ) | |||||||||||||||
Other income (expense), net | 1.3 | (44.9 | ) | 45.1 | 3.3 | (1.4 | ) | 3.4 | |||||||||||||||||
Net (loss) income before equity in income of subsidiaries and income taxes | (21.1 | ) | (18.2 | ) | 19 | 24.2 | — | 3.9 | |||||||||||||||||
Equity in income (loss) of subsidiaries | 23.6 | 18.8 | — | — | (42.4 | ) | — | ||||||||||||||||||
Income tax expense | (2.9 | ) | (0.1 | ) | — | (1.3 | ) | — | (4.3 | ) | |||||||||||||||
Net (loss) income from continuing operations | $ | (0.4 | ) | $ | 0.5 | $ | 19 | $ | 22.9 | $ | (42.4 | ) | $ | (0.4 | ) | ||||||||||
Net loss from discontinued operations | (0.1 | ) | — | — | (0.1 | ) | 0.1 | (0.1 | ) | ||||||||||||||||
Net (loss) income | (0.5 | ) | 0.5 | 19 | 22.8 | (42.3 | ) | (0.5 | ) | ||||||||||||||||
Other comprehensive (loss) income | 39.2 | (2.1 | ) | — | 41 | (38.9 | ) | 39.2 | |||||||||||||||||
Comprehensive (loss) income | $ | 38.7 | $ | (1.6 | ) | $ | 19 | $ | 63.8 | $ | (81.2 | ) | $ | 38.7 | |||||||||||
(1) Exclusive of depreciation and amortization. | |||||||||||||||||||||||||
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||
Parent | SGI | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Entries | ||||||||||||||||||||||
Revenue | $ | — | $ | 317.1 | $ | 475.4 | $ | 428.1 | $ | — | $ | 1,220.60 | |||||||||||||
Cost of instant games, cost of services and cost of product sales (1) | — | 93.5 | 243.8 | 237.1 | — | 574.4 | |||||||||||||||||||
Selling, general and administrative | 51.6 | 50.9 | 122.5 | 57.6 | — | 282.6 | |||||||||||||||||||
Research and development | — | 2.3 | 62.5 | 12.2 | — | 77 | |||||||||||||||||||
Employee termination and restructuring | 1.9 | 0.2 | 5.5 | 4.8 | — | 12.4 | |||||||||||||||||||
Depreciation and amortization | 6.7 | 32.1 | 187.5 | 64.2 | — | 290.5 | |||||||||||||||||||
Operating (loss) income | (60.2 | ) | 138.1 | (146.4 | ) | 52.2 | — | (16.3 | ) | ||||||||||||||||
Interest expense | (2.5 | ) | (62.7 | ) | (77.0 | ) | (0.7 | ) | — | (142.9 | ) | ||||||||||||||
Other (expense) income, net | (39.6 | ) | (150.7 | ) | 132.8 | 47.5 | — | (10.0 | ) | ||||||||||||||||
Net (loss) income before equity in income of subsidiaries and income taxes | (102.3 | ) | (75.3 | ) | (90.6 | ) | 99 | — | (169.2 | ) | |||||||||||||||
Equity in (loss) income of subsidiaries | (71.7 | ) | 51.4 | — | — | 20.3 | — | ||||||||||||||||||
Income tax expense | (13.2 | ) | (0.3 | ) | — | (4.5 | ) | — | (18.0 | ) | |||||||||||||||
Net (loss) income from continuing operations | $ | (187.2 | ) | $ | (24.2 | ) | $ | (90.6 | ) | $ | 94.5 | $ | 20.3 | $ | (187.2 | ) | |||||||||
Net (loss) income | (187.2 | ) | (24.2 | ) | (90.6 | ) | 94.5 | 20.3 | (187.2 | ) | |||||||||||||||
Other comprehensive (loss) income | (51.4 | ) | (2.4 | ) | (0.3 | ) | (45.6 | ) | 48.3 | (51.4 | ) | ||||||||||||||
Comprehensive (loss) income | $ | (238.6 | ) | $ | (26.6 | ) | $ | (90.9 | ) | $ | 48.9 | $ | 68.6 | $ | (238.6 | ) | |||||||||
(1) Exclusive of depreciation and amortization. | |||||||||||||||||||||||||
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Parent | SGI | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Entries | ||||||||||||||||||||||
Revenue | $ | — | $ | 308.4 | $ | 42.2 | $ | 340.5 | $ | (2.1 | ) | $ | 689 | ||||||||||||
Cost of instant games, cost of services and cost of product sales (1) | — | 97.1 | 107.2 | 185.8 | (5.5 | ) | 384.6 | ||||||||||||||||||
Selling, general and administrative | 52.2 | 38.1 | 7.6 | 42 | (0.8 | ) | 139.1 | ||||||||||||||||||
Research and development | — | 3.1 | 0.5 | 1.1 | — | 4.7 | |||||||||||||||||||
Employee termination and restructuring | — | — | — | 0.3 | — | 0.3 | |||||||||||||||||||
Depreciation and amortization | 0.5 | 28.4 | 16.7 | 65.5 | — | 111.1 | |||||||||||||||||||
Operating (loss) income | (52.7 | ) | 141.7 | (89.8 | ) | 45.8 | 4.2 | 49.2 | |||||||||||||||||
Interest expense | (15.9 | ) | (58.8 | ) | — | (0.6 | ) | — | (75.3 | ) | |||||||||||||||
Other income (expense), net | 4.5 | (131.7 | ) | 134.6 | 9 | (4.2 | ) | 12.2 | |||||||||||||||||
Net (loss) income before equity in income of subsidiaries and income taxes | (64.1 | ) | (48.8 | ) | 44.8 | 54.2 | — | (13.9 | ) | ||||||||||||||||
Equity in income (loss) of subsidiaries | 45.5 | 44.6 | — | — | (90.1 | ) | — | ||||||||||||||||||
Income tax expense | (6.5 | ) | (0.3 | ) | — | (4.4 | ) | — | (11.2 | ) | |||||||||||||||
Net (loss) income from continuing operations | $ | (25.1 | ) | $ | (4.5 | ) | $ | 44.8 | $ | 49.8 | $ | (90.1 | ) | $ | (25.1 | ) | |||||||||
Net loss from discontinued operations | (1.6 | ) | — | — | (1.6 | ) | 1.6 | (1.6 | ) | ||||||||||||||||
Net (loss) income | (26.7 | ) | (4.5 | ) | 44.8 | 48.2 | (88.5 | ) | (26.7 | ) | |||||||||||||||
Other comprehensive (loss) income | 1.9 | (1.9 | ) | — | 3.6 | (1.7 | ) | 1.9 | |||||||||||||||||
Comprehensive (loss) income | $ | (24.8 | ) | $ | (6.4 | ) | $ | 44.8 | $ | 51.8 | $ | (90.2 | ) | $ | (24.8 | ) | |||||||||
(1) Exclusive of depreciation and amortization. | |||||||||||||||||||||||||
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||
Parent | SGI | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Entries | ||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (79.2 | ) | $ | 19.8 | $ | 160 | $ | 132.8 | $ | — | $ | 233.4 | ||||||||||||
Cash flows from investing activities: | — | ||||||||||||||||||||||||
Additions to property and equipment | (2.3 | ) | (2.1 | ) | (22.1 | ) | (5.9 | ) | — | (32.4 | ) | ||||||||||||||
Lottery and gaming services expenditures | (0.1 | ) | (9.7 | ) | (41.3 | ) | (22.0 | ) | — | (73.1 | ) | ||||||||||||||
Intangible assets and software expenditures | (6.0 | ) | (12.1 | ) | (49.9 | ) | (2.8 | ) | — | (70.8 | ) | ||||||||||||||
Additions to equity method investments | — | — | — | (43.3 | ) | — | (43.3 | ) | |||||||||||||||||
Distributions of capital on equity investments | — | (1.3 | ) | — | 46.7 | — | 45.4 | ||||||||||||||||||
Proceeds on sale of equity interest | — | — | — | 44.9 | — | 44.9 | |||||||||||||||||||
Other | (9.6 | ) | 29.2 | (0.6 | ) | 16.1 | (35.7 | ) | (0.6 | ) | |||||||||||||||
Intercompany balances | — | 18.8 | (44.9 | ) | — | 26.1 | — | ||||||||||||||||||
Net cash provided by (used in) investing activities | (18.0 | ) | 22.8 | (158.8 | ) | 33.7 | (9.6 | ) | (129.9 | ) | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Net payments on long-term debt | — | (19.5 | ) | — | (9.9 | ) | — | (29.4 | ) | ||||||||||||||||
Payments of financing fees | — | (22.8 | ) | — | — | — | (22.8 | ) | |||||||||||||||||
Payments on license obligations | — | — | (7.0 | ) | — | — | (7.0 | ) | |||||||||||||||||
Common stock repurchases | (29.5 | ) | — | — | — | — | (29.5 | ) | |||||||||||||||||
Contingent earnout payments | — | — | (7.0 | ) | (3.2 | ) | — | (10.2 | ) | ||||||||||||||||
Net redemptions of common stock under stock-based compensation plans | (19.1 | ) | — | — | (35.7 | ) | 35.7 | (19.1 | ) | ||||||||||||||||
Other, principally intercompany balances | 126.2 | — | — | (100.1 | ) | (26.1 | ) | — | |||||||||||||||||
Net cash provided by (used in) financing activities | 77.6 | (42.3 | ) | (14.0 | ) | (148.9 | ) | 9.6 | (118.0 | ) | |||||||||||||||
Effect of exchange rate changes on cash | — | — | (0.3 | ) | (6.4 | ) | — | (6.7 | ) | ||||||||||||||||
Increase (decrease) in cash and cash equivalents | (19.6 | ) | 0.3 | (13.1 | ) | 11.2 | — | (21.2 | ) | ||||||||||||||||
Cash and cash equivalents, beginning of period | 56 | — | 24.4 | 73.3 | — | 153.7 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 36.4 | $ | 0.3 | $ | 11.3 | $ | 84.5 | $ | — | $ | 132.5 | |||||||||||||
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Parent | SGI | Guarantor | Non- | Eliminating | Consolidated | ||||||||||||||||||||
Company | Subsidiaries | Guarantor | Entries | ||||||||||||||||||||||
Subsidiaries | |||||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (44.7 | ) | $ | (16.1 | ) | $ | 43.3 | $ | 113.1 | $ | — | $ | 95.6 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||
Additions to property and equipment | (3.3 | ) | (1.8 | ) | (12.2 | ) | (5.6 | ) | — | (22.9 | ) | ||||||||||||||
Lottery and gaming services expenditures | (0.2 | ) | (6.4 | ) | (0.4 | ) | (44.3 | ) | — | (51.3 | ) | ||||||||||||||
Intangible assets and software expenditures | (2.1 | ) | (12.2 | ) | (11.7 | ) | (12.1 | ) | — | (38.1 | ) | ||||||||||||||
Business acquisitions, net of cash acquired | — | — | — | (0.4 | ) | — | (0.4 | ) | |||||||||||||||||
Other assets and investments | 9.9 | 14 | — | 36.3 | (64.3 | ) | (4.1 | ) | |||||||||||||||||
Other, principally intercompany balances | 32.3 | — | (23.4 | ) | — | (8.9 | ) | — | |||||||||||||||||
Net cash (used in) provided by investing activities | 36.6 | (6.4 | ) | (47.7 | ) | (26.1 | ) | (73.2 | ) | (116.8 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Net payments on long-term debt | — | (4.7 | ) | — | (4.8 | ) | — | (9.5 | ) | ||||||||||||||||
Net redemptions of common stock under stock-based compensation plans | (2.1 | ) | — | — | (64.3 | ) | 64.3 | (2.1 | ) | ||||||||||||||||
Payment of financing fees | — | (2.0 | ) | — | — | — | (2.0 | ) | |||||||||||||||||
Other, principally intercompany balances | — | 29 | — | (37.9 | ) | 8.9 | — | ||||||||||||||||||
Net cash provided by (used in) financing activities | (2.1 | ) | 22.3 | — | (107.0 | ) | 73.2 | (13.6 | ) | ||||||||||||||||
Effect of exchange rate changes on cash | — | 0.2 | — | (0.9 | ) | — | (0.7 | ) | |||||||||||||||||
Decrease in cash and cash equivalents | (10.2 | ) | — | (4.4 | ) | (20.9 | ) | — | (35.5 | ) | |||||||||||||||
Cash and cash equivalents, beginning of period | 27.2 | 0.2 | 2.4 | 79.2 | — | 109 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 17 | $ | 0.2 | $ | (2.0 | ) | $ | 58.3 | $ | — | $ | 73.5 | ||||||||||||
Description_of_the_Business_an1
Description of the Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
The accompanying consolidated financial statements of the Company have been prepared in accordance with SEC and U.S. GAAP requirements. All monetary values set forth in these financial statements are in U.S. dollars ("$") unless otherwise stated herein. | |
Principles of Consolidation | ' |
The accompanying consolidated financial statements include the Company's accounts and subsidiaries that are wholly owned and in which we have a controlling financial interest. Investments in other entities in which we do not have a controlling financial interest but we exert significant influence are accounted for in the consolidated financial statements using the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation. We have evaluated subsequent events through the date of these financial statements. In the opinion of management, we have made all adjustments necessary to present fairly our consolidated financial position, results of operations, comprehensive (loss) income and cash flows for the periods presented. Such adjustments are of a normal, recurring nature. | |
Lease Accounting | ' |
Lease Accounting | |
We account for assets held under leases in accordance with ASC 840, Leases. For leases classified as operating leases, we record expense on a straight-line basis over the base term of the lease agreements. For assets accounted for as capital leases, we record the lower of the net present value of the future minimum lease payments or the fair value of the leased asset at the inception of the lease. Amortization expense is computed using the straight-line method over the shorter of the estimated useful lives of the asset or the period of the related lease. | |
Minimum Guarantees | ' |
Minimum Guarantees | |
We enter into long-term license agreements in which we are obligated to pay a minimum guaranteed amount of royalties, typically annually. We account for the minimum guaranteed obligations within other long-term liabilities at the onset of the license arrangement and record a corresponding licensed asset within intangible assets, net. The licensed assets related to the minimum guaranteed obligations are amortized over the term of the license agreement and included in depreciation and amortization. The long-term liability related to the minimum guaranteed obligations is reduced as royalty payments are made under the license agreement. The weighted average remaining term of our license agreements with minimum guaranteed obligations was six years and four years as of September 30, 2014 and December 31, 2013, respectively. Our total minimum guaranteed obligations reflected in our Consolidated Balance Sheets were $178.3 million and $216.0 million as of September 30, 2014 and December 31, 2013, respectively. Additionally, our remaining expected future payments of minimum guaranteed obligations is $10.6 million (with $27.4 million of payments made through September 30, 2014), $29.2 million, $28.9 million, $28.7 million and $80.9 million in the years ending December 31, 2014, 2015, 2016, 2017 and 2018 and thereafter, respectively. | |
Recently Issued Accounting Guidance | ' |
Recently Issued Accounting Guidance | |
In January 2014, the FASB issued ASU 2014-05, Service Concession Arrangements (Topic 853), a consensus of the FASB Emerging Issues Task Force, which specified that an operating entity should not account for a service concession arrangement within the scope of the update as a lease in accordance with ASC 840, Leases. The guidance is effective for fiscal years beginning after December 15, 2014. We do not expect ASU 2014-05 to have a material effect on our financial condition, results of operations or cash flows. | |
In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 changes the criteria for reporting discontinued operations and modifies related disclosure requirements. The new guidance is effective on a prospective basis for fiscal years beginning after December 15, 2014, and interim periods thereafter. We do not expect ASU 2014-08 to have a material effect on our financial condition, results of operations or cash flows. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The amended guidance outlines a single comprehensive revenue model for entities to use in accounting for revenue from contracts with customers. The guidance supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” ASU 2014-09 is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2016 (early adoption is not permitted). We are currently evaluating the impact of adopting ASU 2014-09. | |
In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. ASU 2014-12 requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in ASC 718, Compensation—Stock Compensation, as it relates to such awards. ASU 2014-12 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015 with early adoption permitted using either of two methods: (i) prospective to all awards granted or modified after the effective date; or (ii) retrospective to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter, with the cumulative effect of applying ASU 2014-12 as an adjustment to the opening retained earnings balance as of the beginning of the earliest annual period presented in the financial statements. We do not expect ASU 2014-12 to have a material effect on our financial condition, results of operations or cash flows. | |
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern: Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern. ASU 2014-15 requires management to perform interim and annual assessments as to whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year of the date the financial statements are issued and to provide related disclosures, if required. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and for annual periods and interim periods thereafter. Early adoption is permitted. We do not expect ASU 2014-15 to have a material effect on our financial condition, results of operations or cash flows. |
Reportable_Segment_Information1
Reportable Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Operating Information by Segment | ' | ||||||||||||||||
The following tables present revenue, cost of revenue, SG&A, R&D, employee termination and restructuring, D&A, operating (loss) income from continuing operations and earnings (loss) from equity investments by business segment for the three and nine months ended September 30, 2014 and 2013. Certain unallocated expenses managed at the corporate level, comprised primarily of general and administrative costs and other income (expense), net, are not allocated to our business segments. Segment results for 2013 below do not include the results of WMS, which we acquired in October 2013. The increase in unallocated corporate costs for the three and nine months ended September 30, 2014 primarily related to the inclusion of WMS results. | |||||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||
Instant Products | Lottery Systems | Gaming | Total | ||||||||||||||
Revenue: | |||||||||||||||||
Instant games | $ | 130.8 | $ | — | $ | — | $ | 130.8 | |||||||||
Services | — | 48.2 | 134.6 | 182.8 | |||||||||||||
Product sales | 3.2 | 30.5 | 68.3 | 102 | |||||||||||||
Total revenue | 134 | 78.7 | 202.9 | 415.6 | |||||||||||||
Cost of instant games (1) | 69.7 | — | — | 69.7 | |||||||||||||
Cost of services (1) | — | 30.4 | 39.2 | 69.6 | |||||||||||||
Cost of product sales (1) | 2.4 | 24.6 | 32.9 | 59.9 | |||||||||||||
Selling, general and administrative | 12.2 | 5.6 | 42.4 | 60.2 | |||||||||||||
Research and development | 0.5 | 0.9 | 24.9 | 26.3 | |||||||||||||
Employee termination and restructuring | 0.4 | — | 1.5 | 1.9 | |||||||||||||
Depreciation and amortization | 8.9 | 16 | 69.8 | 94.7 | |||||||||||||
Segment operating income (loss) from continuing operations | $ | 39.9 | $ | 1.2 | $ | (7.8 | ) | $ | 33.3 | ||||||||
Unallocated corporate costs | 41.1 | ||||||||||||||||
Consolidated operating loss from continuing operations | $ | (7.8 | ) | ||||||||||||||
Earnings (loss) from equity investments | $ | (15.4 | ) | $ | 0.1 | $ | 1.3 | $ | (14.0 | ) | |||||||
(1) Exclusive of depreciation and amortization. | |||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||
Instant Products | Lottery Systems | Gaming | Total | ||||||||||||||
Revenue: | |||||||||||||||||
Instant games | $ | 129.7 | $ | — | $ | — | $ | 129.7 | |||||||||
Services | — | 48.6 | 32.1 | 80.7 | |||||||||||||
Product sales | 3.1 | 13.6 | 7.3 | 24 | |||||||||||||
Total revenue | 132.8 | 62.2 | 39.4 | 234.4 | |||||||||||||
Cost of instant games (1) | 70.6 | — | — | 70.6 | |||||||||||||
Cost of services (1) | — | 27.1 | 15.5 | 42.6 | |||||||||||||
Cost of product sales (1) | 2.2 | 7.3 | 3.8 | 13.3 | |||||||||||||
Selling, general and administrative | 11.5 | 5.3 | 6.3 | 23.1 | |||||||||||||
Research and development | 0.1 | 0.9 | 0.4 | 1.4 | |||||||||||||
Depreciation and amortization | 9.2 | 13.4 | 12.4 | 35 | |||||||||||||
Segment operating income from continuing operations | $ | 39.2 | $ | 8.2 | $ | 1 | $ | 48.4 | |||||||||
Unallocated corporate costs | 22.7 | ||||||||||||||||
Consolidated operating income from continuing operations | $ | 25.7 | |||||||||||||||
Earnings (loss) from equity investments | $ | 5.2 | $ | 0.1 | $ | (1.9 | ) | $ | 3.4 | ||||||||
(1) Exclusive of depreciation and amortization. | |||||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||
Instant Products | Lottery | Gaming | Total | ||||||||||||||
Systems | |||||||||||||||||
Revenue: | |||||||||||||||||
Instant games | $ | 392.4 | $ | — | $ | — | $ | 392.4 | |||||||||
Services | — | 149.3 | 389.6 | 538.9 | |||||||||||||
Product sales | 9.4 | 63.3 | 216.6 | 289.3 | |||||||||||||
Total revenue | 401.8 | 212.6 | 606.2 | 1,220.60 | |||||||||||||
Cost of instant games (1) | 212.5 | — | — | 212.5 | |||||||||||||
Cost of services (1) | — | 90.4 | 110.3 | 200.7 | |||||||||||||
Cost of product sales (1) | 6.5 | 50.8 | 103.9 | 161.2 | |||||||||||||
Selling, general and administrative | 38.9 | 17.1 | 132.9 | 188.9 | |||||||||||||
Research and development | 1 | 1.7 | 74.3 | 77 | |||||||||||||
Employee termination and restructuring | 1.6 | — | 8.9 | 10.5 | |||||||||||||
Depreciation and amortization | 26.2 | 44.6 | 200.2 | 271 | |||||||||||||
Segment operating income (loss) from continuing operations | $ | 115.1 | $ | 8 | $ | (24.3 | ) | $ | 98.8 | ||||||||
Unallocated corporate costs | 115.1 | ||||||||||||||||
Consolidated operating loss from continuing operations | $ | (16.3 | ) | ||||||||||||||
Earnings (loss) from equity investments | $ | (12.4 | ) | $ | 1.3 | $ | 3.3 | $ | (7.8 | ) | |||||||
(1) Exclusive of depreciation and amortization. | |||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||
Instant Products | Lottery | Gaming | Total | ||||||||||||||
Systems | |||||||||||||||||
Revenue: | |||||||||||||||||
Instant games | $ | 379 | $ | — | $ | — | $ | 379 | |||||||||
Services | — | 146.1 | 101.6 | 247.7 | |||||||||||||
Product sales | 10.1 | 35.2 | 17 | 62.3 | |||||||||||||
Total revenue | 389.1 | 181.3 | 118.6 | 689 | |||||||||||||
Cost of instant games (1) | 210.3 | — | — | 210.3 | |||||||||||||
Cost of services (1) | — | 82 | 53 | 135 | |||||||||||||
Cost of product sales (1) | 7.2 | 22.4 | 9.7 | 39.3 | |||||||||||||
Selling, general and administrative | 35.5 | 16 | 19.3 | 70.8 | |||||||||||||
Research and development | 0.4 | 3.1 | 1.2 | 4.7 | |||||||||||||
Employee termination and restructuring | 0.3 | — | — | 0.3 | |||||||||||||
Depreciation and amortization | 27 | 38.8 | 44.8 | 110.6 | |||||||||||||
Segment operating income (loss) from continuing operations | $ | 108.4 | $ | 19 | $ | (9.4 | ) | $ | 118 | ||||||||
Unallocated corporate costs | 68.8 | ||||||||||||||||
Consolidated operating income from continuing operations | $ | 49.2 | |||||||||||||||
Earnings (loss) from equity investments | $ | 15.8 | $ | 0.7 | $ | (3.5 | ) | $ | 13 | ||||||||
(1) Exclusive of depreciation and amortization. | |||||||||||||||||
Reconciliation of segment operating income to consolidated income before income taxes | ' | ||||||||||||||||
The following table presents a reconciliation of business segment operating income from continuing operations to net (loss) income from continuing operations before income taxes for each period: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Reportable business segment operating income from continuing operations | $ | 33.3 | $ | 48.4 | $ | 98.8 | $ | 118 | |||||||||
Unallocated corporate costs | (41.1 | ) | (22.7 | ) | (115.1 | ) | (68.8 | ) | |||||||||
Consolidated operating (loss) income from continuing operations | (7.8 | ) | 25.7 | (16.3 | ) | 49.2 | |||||||||||
Interest expense | (45.7 | ) | (25.2 | ) | (142.9 | ) | (75.3 | ) | |||||||||
Earnings (loss) from equity investments | (14.0 | ) | 3.4 | (7.8 | ) | 13 | |||||||||||
Loss on early extinguishment of debt | — | — | (25.9 | ) | — | ||||||||||||
Gain on sale of equity interest | — | — | 14.5 | — | |||||||||||||
Other income (expense), net | 3.1 | — | 9.2 | (0.8 | ) | ||||||||||||
Net (loss) income from continuing operations before income taxes | $ | (64.4 | ) | $ | 3.9 | $ | (169.2 | ) | $ | (13.9 | ) | ||||||
Acquisitions_and_Dispositions_
Acquisitions and Dispositions (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Business Acquisition [Line Items] | ' | |||||||
Components of loss from discontinued operations | ' | |||||||
The components of our loss from discontinued operations for the three and nine months ended September 30, 2013 are presented below: | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, 2013 | September 30, 2013 | |||||||
Revenue: | ||||||||
Services | $ | — | $ | 1.8 | ||||
Operating expenses: | ||||||||
Cost of services (1) | 0.1 | 3 | ||||||
Selling, general and administrative | — | 1 | ||||||
Depreciation and amortization | — | 0.5 | ||||||
Loss from discontinued operations | (0.1 | ) | (2.7 | ) | ||||
Other expense | — | — | ||||||
Gain on sale of assets | — | 0.8 | ||||||
Income tax benefits | — | 0.3 | ||||||
Net loss from discontinued operations | $ | (0.1 | ) | $ | (1.6 | ) | ||
(1) Exclusive of depreciation and amortization. | ||||||||
WMS Acquisition | ' | |||||||
Business Acquisition [Line Items] | ' | |||||||
Allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed | ' | |||||||
At October 18, 2013 | ||||||||
Current assets | $ | 503.9 | ||||||
Long-term notes receivable | 76.2 | |||||||
Property, plant and equipment, net | 465.8 | |||||||
Goodwill | 381.8 | |||||||
Intangible assets | 325 | |||||||
Intellectual property | 201.2 | |||||||
Other long-term assets | 7.8 | |||||||
Total assets | 1,961.70 | |||||||
Current liabilities | (158.9 | ) | ||||||
Deferred income taxes | (166.6 | ) | ||||||
Long-term liabilities | (150.3 | ) | ||||||
Total liabilities | (475.8 | ) | ||||||
Total equity purchase price | $ | 1,485.90 | ||||||
Unaudited pro forma financial information | ' | |||||||
The unaudited pro forma financial information does not reflect (1) any anticipated synergies (or costs to achieve anticipated synergies) or (2) the impact of non-recurring items directly related to the WMS acquisition. | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, 2013 | September 30, 2013 | |||||||
Revenue from Consolidated Statements of Operations and Comprehensive (Loss) Income | $ | 234.4 | $ | 689 | ||||
Add: WMS revenue not reflected in Consolidated Statements of Operations and Comprehensive (Loss) Income | 166.4 | 547.1 | ||||||
Unaudited pro forma revenue | $ | 400.8 | $ | 1,236.10 | ||||
Three Months Ended | Nine Months Ended | |||||||
September 30, 2013 | September 30, 2013 | |||||||
Net loss from continuing operations from Consolidated Statements of Operations and Comprehensive (Loss) Income | $ | (0.4 | ) | $ | (25.1 | ) | ||
Add: WMS net loss from continuing operations not reflected in Consolidated Statements of Operations and Comprehensive (Loss) Income plus pro forma adjustments (1), (2), (3) and (4) below | (25.4 | ) | (45.0 | ) | ||||
Unaudited pro forma net loss from continuing operations | $ | (25.8 | ) | $ | (70.1 | ) | ||
Unaudited pro forma amounts reflect the following adjustments: | ||||||||
(1) An adjustment to reflect additional D&A of $8.4 million and $28.9 million for the three and nine months ended September 30, 2013, respectively, that would have been incurred assuming the fair value adjustments to intangible assets and property and equipment had been applied on January 1, 2012. | ||||||||
(2) An adjustment to reverse acquisition-related fees and expenses of $3.5 million and $20.5 million for the three and nine months ended September 30, 2013, respectively. | ||||||||
(3) An adjustment to reflect additional interest expense of $20.4 million and $61.0 million for the three and nine months ended September 30, 2013, respectively, that would have been incurred assuming our new credit facilities were in place as of January 1, 2012. | ||||||||
(4) An adjustment of $0.5 million and $3.0 million to reverse the U.S. tax benefit and expense of WMS for the three and nine months ended September 30, 2013, respectively, under the assumption that the U.S. taxable income of WMS would have been offset by U.S. tax attributes of the Company. |
Restructuring_Plans_Tables
Restructuring Plans (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||
Employee termination and restructuring cost by segment | ' | |||||||||||||||||
The following table presents a summary of employee termination and restructuring costs by segment related to the restructuring plans described above, including the costs incurred during the three and nine months ended September 30, 2014, the cumulative costs incurred through September 30, 2014 since the relevant restructuring activities were initiated and the total expected costs related to the relevant restructuring activities that have been initiated. As additional integration-related activities are initiated, we expect to incur additional costs related to those activities. | ||||||||||||||||||
Business Segment | Employee Termination Costs | Property Costs | Other | Total | ||||||||||||||
Instant Products | Three months ended September 30, 2014 | $ | — | $ | 0.4 | $ | — | $ | 0.4 | |||||||||
Nine months ended September 30, 2014 | 1 | 0.4 | 0.2 | 1.6 | ||||||||||||||
Cumulative | 1 | 0.4 | 4.9 | 6.3 | ||||||||||||||
Expected Total | 1 | 0.4 | 4.9 | 6.3 | ||||||||||||||
Lottery Systems | Three months ended September 30, 2014 | — | — | — | — | |||||||||||||
Nine months ended September 30, 2014 | — | — | — | — | ||||||||||||||
Cumulative | 0.4 | — | — | 0.4 | ||||||||||||||
Expected Total | 0.4 | — | — | 0.4 | ||||||||||||||
Gaming | Three months ended September 30, 2014 | 1.4 | — | 0.1 | 1.5 | |||||||||||||
Nine months ended September 30, 2014 | 6.8 | 0.4 | 1.7 | 8.9 | ||||||||||||||
Cumulative | 10.6 | 1.4 | 5.5 | 17.5 | ||||||||||||||
Expected Total | 10.6 | 1.4 | 5.6 | 17.6 | ||||||||||||||
Unallocated corporate | Three months ended September 30, 2014 | — | — | — | — | |||||||||||||
Nine months ended September 30, 2014 | 1.7 | 0.2 | — | 1.9 | ||||||||||||||
Cumulative | 8.6 | 2.3 | — | 10.9 | ||||||||||||||
Expected Total | 8.6 | 2.3 | — | 10.9 | ||||||||||||||
Total | Three months ended September 30, 2014 | $ | 1.4 | $ | 0.4 | $ | 0.1 | $ | 1.9 | |||||||||
Nine months ended September 30, 2014 | $ | 9.5 | $ | 1 | $ | 1.9 | $ | 12.4 | ||||||||||
Cumulative | $ | 20.6 | $ | 4.1 | $ | 10.4 | $ | 35.1 | ||||||||||
Expected Total | $ | 20.6 | $ | 4.1 | $ | 10.5 | $ | 35.2 | ||||||||||
Termination and restructuring costs | ' | |||||||||||||||||
The following table presents a summary of employee termination and restructuring costs and changes in the related accruals. | ||||||||||||||||||
Employee Termination Costs | Property Costs | Other | Total | |||||||||||||||
Balance as of December 31, 2013 | $ | 9.3 | $ | 2.8 | $ | 0.1 | $ | 12.2 | ||||||||||
Additional accruals | 9.5 | 1 | 1.9 | 12.4 | ||||||||||||||
Cash payments | (12.1 | ) | (0.9 | ) | (1.9 | ) | (14.9 | ) | ||||||||||
Non-cash expense | 0.5 | (0.6 | ) | 1.6 | 1.5 | |||||||||||||
Balance as of September 30, 2014 | $ | 7.2 | $ | 2.3 | $ | 1.7 | $ | 11.2 | ||||||||||
Basic_and_Diluted_Net_Loss_Per1
Basic and Diluted Net Loss Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Reconciliation of the Numerator and Denominator Used in Computing the Basic and Diluted Net Income (Loss) Per Share | ' | ||||||||||||||||
The following represents a reconciliation of the numerator and denominator used in computing basic and diluted net loss per share available to common stockholders for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net loss | |||||||||||||||||
Net loss from continuing operations | $ | (69.8 | ) | $ | (0.4 | ) | $ | (187.2 | ) | $ | (25.1 | ) | |||||
Net loss from discontinued operations | — | (0.1 | ) | — | (1.6 | ) | |||||||||||
Net loss | $ | (69.8 | ) | $ | (0.5 | ) | $ | (187.2 | ) | $ | (26.7 | ) | |||||
Weighted average number of shares used in per share calculations: | |||||||||||||||||
Basic shares | 84.7 | 85.1 | 84.5 | 84.9 | |||||||||||||
Diluted shares | 84.7 | 85.1 | 84.5 | 84.9 | |||||||||||||
Basic net loss per share: | |||||||||||||||||
Continuing operations | $ | (0.82 | ) | $ | (0.01 | ) | $ | (2.22 | ) | $ | (0.29 | ) | |||||
Discontinued operations | — | — | — | (0.02 | ) | ||||||||||||
Total basic net loss per share | $ | (0.82 | ) | $ | (0.01 | ) | $ | (2.22 | ) | $ | (0.31 | ) | |||||
Diluted net loss per share: | |||||||||||||||||
Continuing operations | $ | (0.82 | ) | $ | (0.01 | ) | $ | (2.22 | ) | $ | (0.29 | ) | |||||
Discontinued operations | — | — | — | (0.02 | ) | ||||||||||||
Total diluted net loss per share | $ | (0.82 | ) | $ | (0.01 | ) | $ | (2.22 | ) | $ | (0.31 | ) |
Accounts_and_Notes_Receivable_1
Accounts and Notes Receivable and Credit Quality of Notes Receivable (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||
Schedule of Accounts Receivable, Net | ' | |||||||||||||||
The following summarizes the components of our current and long-term accounts and notes receivable, net, as of September 30, 2014 and December 31, 2013: | ||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||
Current: | ||||||||||||||||
Accounts receivable | $ | 307.9 | $ | 360.4 | ||||||||||||
Notes receivable | 135.5 | 164.3 | ||||||||||||||
Allowance for doubtful accounts | (18.0 | ) | (20.0 | ) | ||||||||||||
Current accounts and notes receivable, net | $ | 425.4 | $ | 504.7 | ||||||||||||
Long-term: | ||||||||||||||||
Notes receivable | 55.5 | 72.6 | ||||||||||||||
Total accounts and notes receivable, net | $ | 480.9 | $ | 577.3 | ||||||||||||
Schedule of Notes Receivable, Balances Over 90 Days Past Due | ' | |||||||||||||||
The following summarizes the components of total notes receivable, net, as of September 30, 2014 and December 31, 2013: | ||||||||||||||||
30-Sep-14 | Balances over 90 days past due | 31-Dec-13 | Balances over 90 days past due | |||||||||||||
Notes receivable: | ||||||||||||||||
Domestic | $ | 48.1 | $ | 2.2 | $ | 65.1 | $ | 0.4 | ||||||||
International | 142.9 | 8.2 | 171.8 | 8.7 | ||||||||||||
Total notes receivable | 191 | 10.4 | 236.9 | 9.1 | ||||||||||||
Notes receivable allowance for doubtful accounts: | ||||||||||||||||
Domestic | — | — | — | — | ||||||||||||
International | (7.4 | ) | (4.7 | ) | (5.6 | ) | (3.3 | ) | ||||||||
Total notes receivable allowance for doubtful accounts | (7.4 | ) | (4.7 | ) | (5.6 | ) | (3.3 | ) | ||||||||
Note receivable, net | $ | 183.6 | $ | 5.7 | $ | 231.3 | $ | 5.8 | ||||||||
Schedule of Notes Receivable Evaluated For Impairment | ' | |||||||||||||||
The following tables detail our evaluation of notes receivable for impairment as of September 30, 2014 and December 31, 2013: | ||||||||||||||||
30-Sep-14 | Ending Balance Individually Evaluated for Impairment | Ending Balance Collectively Evaluated for Impairment | ||||||||||||||
Notes receivable: | ||||||||||||||||
Domestic | $ | 48.1 | $ | 6.7 | $ | 41.4 | ||||||||||
International | 142.9 | 78.9 | 64 | |||||||||||||
Total notes receivable | $ | 191 | $ | 85.6 | $ | 105.4 | ||||||||||
31-Dec-13 | Ending Balance Individually Evaluated for Impairment | Ending Balance Collectively Evaluated for Impairment | ||||||||||||||
Notes receivable: | ||||||||||||||||
Domestic | $ | 65.1 | $ | 4.8 | $ | 60.3 | ||||||||||
International | 171.8 | 99.7 | 72.1 | |||||||||||||
Total notes receivable | $ | 236.9 | $ | 104.5 | $ | 132.4 | ||||||||||
Schedule of Allowance For Doubtful Notes Receivable | ' | |||||||||||||||
The following table reconciles the allowance for doubtful notes receivable from December 31, 2013 to September 30, 2014: | ||||||||||||||||
Total | Ending Balance Individually Evaluated for Impairment | Ending Balance Collectively Evaluated for Impairment | ||||||||||||||
Beginning balance at December 31, 2013 | $ | 5.6 | $ | 5.6 | $ | — | ||||||||||
Charge-offs | (0.1 | ) | (0.1 | ) | — | |||||||||||
Recoveries | — | — | — | |||||||||||||
Provision | 1.9 | 1.9 | — | |||||||||||||
Ending balance at September 30, 2014 | $ | 7.4 | $ | 7.4 | $ | — | ||||||||||
Schedule of Notes Receivable That Had Modification of Terms | ' | |||||||||||||||
The following summarizes the notes receivable financing terms that were modified during the nine months ended September 30, 2014: | ||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||
# of | # of Notes | Pre-Modification | Post-Modification | |||||||||||||
Customers | Investment | Investment | ||||||||||||||
Financing term modifications: | ||||||||||||||||
International (1) | 9 | 28 | $ | 12.8 | $ | 12.8 | ||||||||||
Total financing term modifications | 9 | 28 | $ | 12.8 | $ | 12.8 | ||||||||||
(1) The modifications are detailed below: | ||||||||||||||||
• | One customer for which 12 notes were consolidated into one note aggregating $4.0 million, with an average 28-month payment extension; | |||||||||||||||
• | One customer for which three notes were consolidated into one note aggregating $3.1 million, with an average four-month payment extension; | |||||||||||||||
• | One customer with a note for $2.3 million for which original payment terms were extended by nine months; | |||||||||||||||
• | One customer for which four notes were consolidated into one note aggregating $1.4 million, with an average five-month extension, and another note for $0.2 million for which original payment terms were extended by seven months; | |||||||||||||||
• | One customer for which two notes were consolidated into one note aggregating $0.7 million, with an average 15-month payment extension; | |||||||||||||||
• | One customer with a note for $0.5 million for which original payment terms were extended by 21 months; | |||||||||||||||
• | One customer with a note for $0.3 million for which original payment terms were extended by 27 months; | |||||||||||||||
• | One customer for which two notes were consolidated into one note aggregating $0.2 million, with an average 14-month payment extension; and | |||||||||||||||
• | One customer with a note for $0.1 million for which original payment terms were extended by 21 months. | |||||||||||||||
Schedules of Concentration Risk, Notes Receivable | ' | |||||||||||||||
Our notes receivable were concentrated in the following international gaming jurisdictions at September 30, 2014: | ||||||||||||||||
Peru | 25 | % | ||||||||||||||
Mexico | 17 | % | ||||||||||||||
Argentina | 12 | % | ||||||||||||||
Colombia | 10 | % | ||||||||||||||
Other (less than 5% individually) | 11 | % | ||||||||||||||
Total international notes receivable as a percentage of total notes receivable | 75 | % |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Disclosure of Inventories | ' | ||||||||
Inventories consisted of the following as of the dates presented below: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Parts and work-in-process | $ | 70.4 | $ | 62.1 | |||||
Finished goods | 100.5 | 75.7 | |||||||
Inventory | $ | 170.9 | $ | 137.8 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Schedule of Components of Property Plant and Equipment | ' | ||||||||
The following table presents certain information regarding our lottery and gaming equipment at September 30, 2014 and December 31, 2013: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Lottery equipment | $ | 358.8 | $ | 350.3 | |||||
Less: accumulated depreciation | (237.7 | ) | (210.6 | ) | |||||
Net lottery equipment | 121.1 | 139.7 | |||||||
Gaming equipment | 478.3 | 439.7 | |||||||
Less: accumulated depreciation | (223.9 | ) | (145.0 | ) | |||||
Net gaming equipment | 254.4 | 294.7 | |||||||
Total lottery and gaming equipment, net | $ | 375.5 | $ | 434.4 | |||||
The following table presents certain information regarding our other property and equipment, including capital leases, at September 30, 2014 and December 31, 2013: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Land | $ | 25.1 | $ | 25.6 | |||||
Buildings and leasehold improvements | 182.2 | 181.6 | |||||||
Machinery and equipment | 269.3 | 239.1 | |||||||
Furniture and fixtures | 25.6 | 30.1 | |||||||
Transportation equipment | 4.4 | 6.4 | |||||||
Construction in progress | 12 | 33.4 | |||||||
Capital leases | 41.8 | — | |||||||
Less: accumulated depreciation | (196.3 | ) | (177.5 | ) | |||||
Total other property and equipment, net | $ | 364.1 | $ | 338.7 | |||||
Total property and equipment, net | $ | 739.6 | $ | 773.1 | |||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Disclosure of Acquired Intangible Assets | ' | ||||||||||||||||
The following presents certain information regarding our intangible assets as of September 30, 2014 and December 31, 2013. Amortizable intangible assets are generally amortized on a straight-line basis over their estimated useful lives with no estimated residual values. | |||||||||||||||||
Intangible Assets | Gross Carrying Amount | Accumulated Amortization | Net Balance | ||||||||||||||
Balance as of September 30, 2014 | |||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||
Patents | $ | 17.1 | $ | 8 | $ | 9.1 | |||||||||||
Customer lists | 161.3 | 37.2 | 124.1 | ||||||||||||||
Licenses | 309.2 | 82.4 | 226.8 | ||||||||||||||
Intellectual property | 8.5 | 6.6 | 1.9 | ||||||||||||||
Brand name | 39.3 | 3.8 | 35.5 | ||||||||||||||
Non-compete agreements | 0.3 | 0.2 | 0.1 | ||||||||||||||
Lottery contracts | 1.5 | 1.5 | — | ||||||||||||||
537.2 | 139.7 | 397.5 | |||||||||||||||
Non-amortizable intangible assets: | |||||||||||||||||
Trade name | 104.9 | 2.1 | 102.8 | ||||||||||||||
Total intangible assets | $ | 642.1 | $ | 141.8 | $ | 500.3 | |||||||||||
Balance as of December 31, 2013 | |||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||
Patents | $ | 14.5 | $ | 7.1 | $ | 7.4 | |||||||||||
Customer lists | 161.9 | 24 | 137.9 | ||||||||||||||
Licenses | 181 | 59.9 | 121.1 | ||||||||||||||
Intellectual property | 8.6 | 5.7 | 2.9 | ||||||||||||||
Brand name | 39.3 | 0.6 | 38.7 | ||||||||||||||
Non-compete agreements | 0.4 | 0.2 | 0.2 | ||||||||||||||
Lottery contracts | 1.5 | 1.4 | 0.1 | ||||||||||||||
407.2 | 98.9 | 308.3 | |||||||||||||||
Non-amortizable intangible assets: | |||||||||||||||||
Trade name | 104.9 | 2.1 | 102.8 | ||||||||||||||
Total intangible assets | $ | 512.1 | $ | 101 | $ | 411.1 | |||||||||||
Reconciliation of the Carrying Amount of Goodwill, by Reporting Segment | ' | ||||||||||||||||
The table below reconciles the change in the carrying amount of goodwill by reportable segment from December 31, 2012 to September 30, 2014. | |||||||||||||||||
Goodwill | Instant | Lottery | Gaming | Totals | |||||||||||||
Products | Systems | ||||||||||||||||
Balance as of December 31, 2012 | $ | 328 | $ | 210.7 | $ | 262.7 | $ | 801.4 | |||||||||
Acquisitions | — | — | 381.8 | 381.8 | |||||||||||||
Impairments | (5.4 | ) | — | — | (5.4 | ) | |||||||||||
Foreign currency adjustments | (2.4 | ) | 2.7 | 5 | 5.3 | ||||||||||||
Reallocation of goodwill | 20 | (39.7 | ) | 19.7 | — | ||||||||||||
Balance as of December 31, 2013 | 340.2 | 173.7 | 669.2 | 1,183.10 | |||||||||||||
Foreign currency adjustments | (2.8 | ) | (6.0 | ) | (5.6 | ) | (14.4 | ) | |||||||||
Balance as of September 30, 2014 | $ | 337.4 | $ | 167.7 | $ | 663.6 | $ | 1,168.70 | |||||||||
Software_Tables
Software (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Capitalized Computer Software, Net [Abstract] | ' | ||||||||
Schedule of Capitalized Computer Software | ' | ||||||||
The following table presents certain information regarding our software as of September 30, 2014 and December 31, 2013: | |||||||||
30-Sep-14 | 31-Dec-13 | ||||||||
Software | $ | 500.8 | $ | 457.7 | |||||
Accumulated amortization | (194.0 | ) | (114.2 | ) | |||||
Software, net | $ | 306.8 | $ | 343.5 | |||||
LongTerm_and_Other_Debt_Tables
Long-Term and Other Debt (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Long-term Debt Instruments | ' | ||||||||
The following reflects our outstanding debt as of September 30, 2014 and December 31, 2013: | |||||||||
30-Sep-14 | 31-Dec-13 | ||||||||
Revolver, varying interest rate, due 2018 | $ | — | $ | — | |||||
Term loan, varying interest rate, due 2020 (1) | 2,272.90 | 2,288.80 | |||||||
2018 Notes | 250 | 250 | |||||||
2019 Notes (2) | — | 346.3 | |||||||
2020 Notes | 300 | 300 | |||||||
2021 Notes (3) | 347.7 | — | |||||||
China Loans, varying interest rates | — | 7.4 | |||||||
Capital lease obligations, 3.9% interest as of September 30, 2014 payable monthly through 2019 | 38.7 | 0.1 | |||||||
Total long-term debt outstanding and capital lease obligations | 3,209.30 | 3,192.60 | |||||||
Less: debt and capital lease payments due within one year | (30.9 | ) | (30.4 | ) | |||||
Long-term debt, net of current installments | $ | 3,178.40 | $ | 3,162.20 | |||||
-1 | Total of $2,282.8 million less amortization of a loan discount in the amount of $9.9 million as of September 30, 2014. Total of $2,300.0 million less amortization of a loan discount in the amount of $11.2 million as of December 31, 2013. | ||||||||
-2 | Total of $350.0 million less amortization of a loan discount in the amount of $3.7 million as of December 31, 2013. | ||||||||
-3 | Total of $350.0 million less amortization of a loan discount in the amount of $2.3 million as of September 30, 2014. |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Stockholders' Equity Note [Abstract] | ' | ||||||
Schedule of Change in the Number of Shares of Class A Common Stock | ' | ||||||
The following table presents the change in the number of shares of our Class A common stock outstanding during the nine months ended September 30, 2014 and during the fiscal year ended December 31, 2013: | |||||||
Nine Months Ended September 30, 2014 | Twelve Months Ended December 31, 2013 | ||||||
Shares outstanding as of beginning of period | 85.2 | 84.4 | |||||
Shares issued as part of equity-based compensation plans and the ESPP, net of RSUs surrendered | 1.6 | 1.1 | |||||
Common stock repurchases | (2.0 | ) | (0.3 | ) | |||
Shares outstanding as of end of period | 84.8 | 85.2 | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Stock Options Outstanding Under Equity-Based Compensation Plans | ' | |||||||||||||
Stock Options | ||||||||||||||
A summary of the changes in stock options outstanding during the nine months ended September 30, 2014 is presented below: | ||||||||||||||
Number of | Weighted | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||||
Options | Average | |||||||||||||
Remaining | ||||||||||||||
Contract Term | ||||||||||||||
(Years) | ||||||||||||||
Options outstanding as of December 31, 2013 | 2.6 | 4.2 | $ | 10.46 | $ | 17.8 | ||||||||
Granted | 0.4 | 16.03 | — | |||||||||||
Exercised | — | — | 0.2 | |||||||||||
Canceled | (1.1 | ) | 9.04 | — | ||||||||||
Options outstanding as of March 31, 2014 | 1.9 | 7.7 | $ | 12.62 | $ | 5 | ||||||||
Granted | 0.2 | 8.94 | — | |||||||||||
Exercised | — | — | 0.1 | |||||||||||
Canceled | (0.1 | ) | 13.88 | — | ||||||||||
Options outstanding as of June 30, 2014 | 2 | 7.4 | $ | 12.34 | $ | 2.3 | ||||||||
Granted | — | — | — | |||||||||||
Exercised | (0.1 | ) | 9.11 | 0.1 | ||||||||||
Canceled | (0.2 | ) | 17.36 | — | ||||||||||
Options outstanding as of September 30, 2014 | 1.7 | 7.1 | $ | 11.71 | $ | 1.8 | ||||||||
Options exercisable as of September 30, 2014 | 0.9 | 6.1 | $ | 11.01 | $ | 1.1 | ||||||||
RSUs Outstanding Under Equity-Based Compensation Plans | ' | |||||||||||||
Restricted Stock Units | ||||||||||||||
A summary of the changes in RSUs outstanding during the nine months ended September 30, 2014 is presented below: | ||||||||||||||
Number of | Weighted Average Grant Date Fair Value Per RSU | |||||||||||||
RSUs | ||||||||||||||
Unvested units as of December 31, 2013 | 5.2 | $ | 11.93 | |||||||||||
Granted | 1.4 | 16.02 | ||||||||||||
Vested | (1.7 | ) | 10.09 | |||||||||||
Canceled | (0.1 | ) | 13.84 | |||||||||||
Unvested units as of March 31, 2014 | 4.8 | $ | 13.76 | |||||||||||
Granted | 0.3 | 10.33 | ||||||||||||
Vested | (0.4 | ) | 11.53 | |||||||||||
Canceled | (0.3 | ) | 13.44 | |||||||||||
Unvested units as of June 30, 2014 | 4.4 | $ | 13.5 | |||||||||||
Granted | — | 8.95 | ||||||||||||
Vested | (0.2 | ) | 14.56 | |||||||||||
Canceled | (0.2 | ) | 15.8 | |||||||||||
Unvested units as of September 30, 2014 | 4 | $ | 13.43 | |||||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Combined Amount of Net Periodic Benefit Cost Recognizedd | ' | ||||||||||||||||
The following table sets forth the combined amount of net periodic benefit cost recognized for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Components of net periodic pension benefit cost: | |||||||||||||||||
Service cost | $ | 0.7 | $ | 0.7 | $ | 1.9 | $ | 1.9 | |||||||||
Interest cost | 1.3 | 1.1 | 3.9 | 3.5 | |||||||||||||
Expected return on plan assets | (1.6 | ) | (1.4 | ) | (4.9 | ) | (4.2 | ) | |||||||||
Amortization of actuarial gains | 0.2 | 0.3 | 0.5 | 0.8 | |||||||||||||
Curtailment | — | — | 0.2 | — | |||||||||||||
Amortization of prior service costs | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.2 | ) | |||||||||
Net periodic cost | $ | 0.5 | $ | 0.6 | $ | 1.4 | $ | 1.8 | |||||||||
Supplemental_Cash_Flow_Tables
Supplemental Cash Flow (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
Schedule of Supplemental Disclosure of Cash Flow Information | ' | |||||||
Additional cash flow information is presented below: | ||||||||
Nine Months Ended September 30, | ||||||||
2014 | 2013 | |||||||
Interest paid | $ | 109 | $ | 72.1 | ||||
Income taxes paid (received), net of refunds | $ | (31.6 | ) | $ | 8.9 | |||
Financial_Information_for_Guar1
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries [Abstract] | ' | ||||||||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | ' | ||||||||||||||||||||||||
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Parent | SGI | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Entries | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 36.4 | $ | 0.3 | $ | 11.3 | $ | 84.5 | $ | — | $ | 132.5 | |||||||||||||
Restricted cash | — | — | 12 | 0.1 | — | 12.1 | |||||||||||||||||||
Accounts receivable, net | — | 62.3 | 117.1 | 117.9 | — | 297.3 | |||||||||||||||||||
Notes receivable, net | — | — | 71.5 | 56.6 | — | 128.1 | |||||||||||||||||||
Inventories | — | 40.7 | 60.1 | 70.1 | — | 170.9 | |||||||||||||||||||
Other current assets | 14.6 | 14.4 | 51.6 | 28.5 | — | 109.1 | |||||||||||||||||||
Property and equipment, net | 0.5 | 125.7 | 410.2 | 203.2 | — | 739.6 | |||||||||||||||||||
Investment in subsidiaries | 1,849.50 | 952.6 | — | — | (2,802.1 | ) | — | ||||||||||||||||||
Goodwill | — | 253.6 | 480.5 | 434.6 | — | 1,168.70 | |||||||||||||||||||
Intangible assets, net | 161.1 | 42.4 | 284.8 | 12 | — | 500.3 | |||||||||||||||||||
Intercompany balances | — | 1,413.00 | 343.4 | — | (1,756.4 | ) | — | ||||||||||||||||||
Software, net | 12.7 | 33.2 | 211.2 | 49.7 | — | 306.8 | |||||||||||||||||||
Other assets | 3.1 | 116.4 | 26.3 | 327.7 | — | 473.5 | |||||||||||||||||||
Total assets | $ | 2,077.90 | $ | 3,054.60 | $ | 2,080.00 | $ | 1,384.90 | $ | (4,558.5 | ) | $ | 4,038.90 | ||||||||||||
Liabilities and stockholders’ equity | |||||||||||||||||||||||||
Debt payments due within one year | $ | — | $ | 23 | $ | — | $ | 7.9 | $ | — | $ | 30.9 | |||||||||||||
Other current liabilities | 39.7 | 77.5 | 117 | 127 | — | 361.2 | |||||||||||||||||||
Long-term debt, excluding current installments | 250 | 2,897.60 | — | 30.8 | — | 3,178.40 | |||||||||||||||||||
Other long-term liabilities | 179.8 | 45.9 | 69.7 | 67.3 | — | 362.7 | |||||||||||||||||||
Intercompany balances | 1,502.70 | — | — | 253.7 | (1,756.4 | ) | — | ||||||||||||||||||
Stockholders’ equity | 105.7 | 10.6 | 1,893.30 | 898.2 | (2,802.1 | ) | 105.7 | ||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,077.90 | $ | 3,054.60 | $ | 2,080.00 | $ | 1,384.90 | $ | (4,558.5 | ) | $ | 4,038.90 | ||||||||||||
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Parent | SGI | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Entries | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 56 | $ | — | $ | 24.4 | $ | 73.3 | $ | — | $ | 153.7 | |||||||||||||
Restricted cash | — | — | 10.9 | — | — | 10.9 | |||||||||||||||||||
Accounts receivable, net | — | 66.9 | 135.4 | 143.7 | — | 346 | |||||||||||||||||||
Notes receivable, net | — | — | 90.9 | 67.8 | — | 158.7 | |||||||||||||||||||
Inventories | — | 28.2 | 59.6 | 50 | — | 137.8 | |||||||||||||||||||
Other current assets | 13.9 | 10.5 | 95 | 30.9 | — | 150.3 | |||||||||||||||||||
Property and equipment, net | 1.1 | 137.3 | 441.8 | 192.9 | — | 773.1 | |||||||||||||||||||
Investment in subsidiaries | 1,962.50 | 796.5 | — | — | (2,759.0 | ) | — | ||||||||||||||||||
Goodwill | — | 251.7 | 465.4 | 466 | — | 1,183.10 | |||||||||||||||||||
Intangible assets, net | 1.9 | 42 | 340.6 | 26.6 | — | 411.1 | |||||||||||||||||||
Intercompany balances | — | 1,430.10 | 296.3 | — | (1,726.4 | ) | — | ||||||||||||||||||
Software, net | 9.4 | 31.7 | 251.4 | 51 | — | 343.5 | |||||||||||||||||||
Other assets | 6 | 147.7 | 42.2 | 372.3 | — | 568.2 | |||||||||||||||||||
Total assets | $ | 2,050.80 | $ | 2,942.60 | $ | 2,253.90 | $ | 1,474.50 | $ | (4,485.4 | ) | $ | 4,236.40 | ||||||||||||
Liabilities and stockholders’ equity | |||||||||||||||||||||||||
Debt payments due within one year | $ | — | $ | 23 | $ | — | $ | 7.4 | $ | — | $ | 30.4 | |||||||||||||
Other current liabilities | 30.4 | 63.2 | 176.2 | 151.4 | — | 421.2 | |||||||||||||||||||
Long-term debt, excluding current installments | 250 | 2,912.20 | — | — | — | 3,162.20 | |||||||||||||||||||
Other long-term liabilities | 20.8 | 37.8 | 121.2 | 67.8 | — | 247.6 | |||||||||||||||||||
Intercompany balances | 1,374.60 | — | — | 351.8 | (1,726.4 | ) | — | ||||||||||||||||||
Stockholders’ equity | 375 | (93.6 | ) | 1,956.50 | 896.1 | (2,759.0 | ) | 375 | |||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,050.80 | $ | 2,942.60 | $ | 2,253.90 | $ | 1,474.50 | $ | (4,485.4 | ) | $ | 4,236.40 | ||||||||||||
Supplemental Condensed Consolidating Statement of Income | ' | ||||||||||||||||||||||||
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||||||||
Parent | SGI | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Entries | ||||||||||||||||||||||
Revenue | $ | — | $ | 106.9 | $ | 159.1 | $ | 149.6 | $ | — | $ | 415.6 | |||||||||||||
Cost of instant games, cost of services and cost of product sales (1) | — | 29.7 | 82.2 | 87.3 | — | 199.2 | |||||||||||||||||||
Selling, general and administrative | 19.5 | 16.8 | 40.4 | 18.9 | — | 95.6 | |||||||||||||||||||
Research and development | — | 1.2 | 20.9 | 4.2 | — | 26.3 | |||||||||||||||||||
Employee termination and restructuring | (0.1 | ) | — | 1.4 | 0.6 | — | 1.9 | ||||||||||||||||||
Depreciation and amortization | 1.2 | 11.8 | 67.7 | 19.7 | — | 100.4 | |||||||||||||||||||
Operating (loss) income | (20.6 | ) | 47.4 | (53.5 | ) | 18.9 | — | (7.8 | ) | ||||||||||||||||
Interest expense | (0.2 | ) | (16.2 | ) | (29.1 | ) | (0.2 | ) | — | (45.7 | ) | ||||||||||||||
Other (expense) income, net | (7.0 | ) | (55.4 | ) | 41.4 | 10.1 | — | (10.9 | ) | ||||||||||||||||
Net (loss) income before equity in income of subsidiaries and income taxes | (27.8 | ) | (24.2 | ) | (41.2 | ) | 28.8 | — | (64.4 | ) | |||||||||||||||
Equity in (loss) income of subsidiaries | (38.8 | ) | 16.3 | — | — | 22.5 | — | ||||||||||||||||||
Income tax expense | (3.2 | ) | (0.2 | ) | — | (2.0 | ) | — | (5.4 | ) | |||||||||||||||
Net (loss) income from continuing operations | $ | (69.8 | ) | $ | (8.1 | ) | $ | (41.2 | ) | $ | 26.8 | $ | 22.5 | $ | (69.8 | ) | |||||||||
Net (loss) income | (69.8 | ) | (8.1 | ) | (41.2 | ) | 26.8 | 22.5 | (69.8 | ) | |||||||||||||||
Other comprehensive (loss) income | (55.1 | ) | (5.4 | ) | — | (55.7 | ) | 61.1 | (55.1 | ) | |||||||||||||||
Comprehensive (loss) income | $ | (124.9 | ) | $ | (13.5 | ) | $ | (41.2 | ) | $ | (28.9 | ) | $ | 83.6 | $ | (124.9 | ) | ||||||||
(1) Exclusive of depreciation and amortization. | |||||||||||||||||||||||||
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Parent | SGI | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Entries | ||||||||||||||||||||||
Revenue | $ | — | $ | 100.6 | $ | 20.3 | $ | 113.9 | $ | (0.4 | ) | $ | 234.4 | ||||||||||||
Cost of instant games, cost of services and cost of product sales (1) | — | 30.2 | 38.1 | 59.8 | (1.6 | ) | 126.5 | ||||||||||||||||||
Selling, general and administrative | 16.9 | 13.3 | 2.5 | 13.1 | (0.2 | ) | 45.6 | ||||||||||||||||||
Research and development | — | 0.9 | 0.2 | 0.3 | — | 1.4 | |||||||||||||||||||
Employee termination and restructuring | — | — | — | — | — | — | |||||||||||||||||||
Depreciation and amortization | 0.2 | 9.8 | 5.6 | 19.6 | — | 35.2 | |||||||||||||||||||
Operating (loss) income | (17.1 | ) | 46.4 | (26.1 | ) | 21.1 | 1.4 | 25.7 | |||||||||||||||||
Interest expense | (5.3 | ) | (19.7 | ) | — | (0.2 | ) | — | (25.2 | ) | |||||||||||||||
Other income (expense), net | 1.3 | (44.9 | ) | 45.1 | 3.3 | (1.4 | ) | 3.4 | |||||||||||||||||
Net (loss) income before equity in income of subsidiaries and income taxes | (21.1 | ) | (18.2 | ) | 19 | 24.2 | — | 3.9 | |||||||||||||||||
Equity in income (loss) of subsidiaries | 23.6 | 18.8 | — | — | (42.4 | ) | — | ||||||||||||||||||
Income tax expense | (2.9 | ) | (0.1 | ) | — | (1.3 | ) | — | (4.3 | ) | |||||||||||||||
Net (loss) income from continuing operations | $ | (0.4 | ) | $ | 0.5 | $ | 19 | $ | 22.9 | $ | (42.4 | ) | $ | (0.4 | ) | ||||||||||
Net loss from discontinued operations | (0.1 | ) | — | — | (0.1 | ) | 0.1 | (0.1 | ) | ||||||||||||||||
Net (loss) income | (0.5 | ) | 0.5 | 19 | 22.8 | (42.3 | ) | (0.5 | ) | ||||||||||||||||
Other comprehensive (loss) income | 39.2 | (2.1 | ) | — | 41 | (38.9 | ) | 39.2 | |||||||||||||||||
Comprehensive (loss) income | $ | 38.7 | $ | (1.6 | ) | $ | 19 | $ | 63.8 | $ | (81.2 | ) | $ | 38.7 | |||||||||||
(1) Exclusive of depreciation and amortization. | |||||||||||||||||||||||||
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||
Parent | SGI | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Entries | ||||||||||||||||||||||
Revenue | $ | — | $ | 317.1 | $ | 475.4 | $ | 428.1 | $ | — | $ | 1,220.60 | |||||||||||||
Cost of instant games, cost of services and cost of product sales (1) | — | 93.5 | 243.8 | 237.1 | — | 574.4 | |||||||||||||||||||
Selling, general and administrative | 51.6 | 50.9 | 122.5 | 57.6 | — | 282.6 | |||||||||||||||||||
Research and development | — | 2.3 | 62.5 | 12.2 | — | 77 | |||||||||||||||||||
Employee termination and restructuring | 1.9 | 0.2 | 5.5 | 4.8 | — | 12.4 | |||||||||||||||||||
Depreciation and amortization | 6.7 | 32.1 | 187.5 | 64.2 | — | 290.5 | |||||||||||||||||||
Operating (loss) income | (60.2 | ) | 138.1 | (146.4 | ) | 52.2 | — | (16.3 | ) | ||||||||||||||||
Interest expense | (2.5 | ) | (62.7 | ) | (77.0 | ) | (0.7 | ) | — | (142.9 | ) | ||||||||||||||
Other (expense) income, net | (39.6 | ) | (150.7 | ) | 132.8 | 47.5 | — | (10.0 | ) | ||||||||||||||||
Net (loss) income before equity in income of subsidiaries and income taxes | (102.3 | ) | (75.3 | ) | (90.6 | ) | 99 | — | (169.2 | ) | |||||||||||||||
Equity in (loss) income of subsidiaries | (71.7 | ) | 51.4 | — | — | 20.3 | — | ||||||||||||||||||
Income tax expense | (13.2 | ) | (0.3 | ) | — | (4.5 | ) | — | (18.0 | ) | |||||||||||||||
Net (loss) income from continuing operations | $ | (187.2 | ) | $ | (24.2 | ) | $ | (90.6 | ) | $ | 94.5 | $ | 20.3 | $ | (187.2 | ) | |||||||||
Net (loss) income | (187.2 | ) | (24.2 | ) | (90.6 | ) | 94.5 | 20.3 | (187.2 | ) | |||||||||||||||
Other comprehensive (loss) income | (51.4 | ) | (2.4 | ) | (0.3 | ) | (45.6 | ) | 48.3 | (51.4 | ) | ||||||||||||||
Comprehensive (loss) income | $ | (238.6 | ) | $ | (26.6 | ) | $ | (90.9 | ) | $ | 48.9 | $ | 68.6 | $ | (238.6 | ) | |||||||||
(1) Exclusive of depreciation and amortization. | |||||||||||||||||||||||||
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Parent | SGI | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Entries | ||||||||||||||||||||||
Revenue | $ | — | $ | 308.4 | $ | 42.2 | $ | 340.5 | $ | (2.1 | ) | $ | 689 | ||||||||||||
Cost of instant games, cost of services and cost of product sales (1) | — | 97.1 | 107.2 | 185.8 | (5.5 | ) | 384.6 | ||||||||||||||||||
Selling, general and administrative | 52.2 | 38.1 | 7.6 | 42 | (0.8 | ) | 139.1 | ||||||||||||||||||
Research and development | — | 3.1 | 0.5 | 1.1 | — | 4.7 | |||||||||||||||||||
Employee termination and restructuring | — | — | — | 0.3 | — | 0.3 | |||||||||||||||||||
Depreciation and amortization | 0.5 | 28.4 | 16.7 | 65.5 | — | 111.1 | |||||||||||||||||||
Operating (loss) income | (52.7 | ) | 141.7 | (89.8 | ) | 45.8 | 4.2 | 49.2 | |||||||||||||||||
Interest expense | (15.9 | ) | (58.8 | ) | — | (0.6 | ) | — | (75.3 | ) | |||||||||||||||
Other income (expense), net | 4.5 | (131.7 | ) | 134.6 | 9 | (4.2 | ) | 12.2 | |||||||||||||||||
Net (loss) income before equity in income of subsidiaries and income taxes | (64.1 | ) | (48.8 | ) | 44.8 | 54.2 | — | (13.9 | ) | ||||||||||||||||
Equity in income (loss) of subsidiaries | 45.5 | 44.6 | — | — | (90.1 | ) | — | ||||||||||||||||||
Income tax expense | (6.5 | ) | (0.3 | ) | — | (4.4 | ) | — | (11.2 | ) | |||||||||||||||
Net (loss) income from continuing operations | $ | (25.1 | ) | $ | (4.5 | ) | $ | 44.8 | $ | 49.8 | $ | (90.1 | ) | $ | (25.1 | ) | |||||||||
Net loss from discontinued operations | (1.6 | ) | — | — | (1.6 | ) | 1.6 | (1.6 | ) | ||||||||||||||||
Net (loss) income | (26.7 | ) | (4.5 | ) | 44.8 | 48.2 | (88.5 | ) | (26.7 | ) | |||||||||||||||
Other comprehensive (loss) income | 1.9 | (1.9 | ) | — | 3.6 | (1.7 | ) | 1.9 | |||||||||||||||||
Comprehensive (loss) income | $ | (24.8 | ) | $ | (6.4 | ) | $ | 44.8 | $ | 51.8 | $ | (90.2 | ) | $ | (24.8 | ) | |||||||||
(1) Exclusive of depreciation and amortization. | |||||||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | ' | ||||||||||||||||||||||||
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||
Parent | SGI | Guarantor | Non-Guarantor | Eliminating | Consolidated | ||||||||||||||||||||
Company | Subsidiaries | Subsidiaries | Entries | ||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (79.2 | ) | $ | 19.8 | $ | 160 | $ | 132.8 | $ | — | $ | 233.4 | ||||||||||||
Cash flows from investing activities: | — | ||||||||||||||||||||||||
Additions to property and equipment | (2.3 | ) | (2.1 | ) | (22.1 | ) | (5.9 | ) | — | (32.4 | ) | ||||||||||||||
Lottery and gaming services expenditures | (0.1 | ) | (9.7 | ) | (41.3 | ) | (22.0 | ) | — | (73.1 | ) | ||||||||||||||
Intangible assets and software expenditures | (6.0 | ) | (12.1 | ) | (49.9 | ) | (2.8 | ) | — | (70.8 | ) | ||||||||||||||
Additions to equity method investments | — | — | — | (43.3 | ) | — | (43.3 | ) | |||||||||||||||||
Distributions of capital on equity investments | — | (1.3 | ) | — | 46.7 | — | 45.4 | ||||||||||||||||||
Proceeds on sale of equity interest | — | — | — | 44.9 | — | 44.9 | |||||||||||||||||||
Other | (9.6 | ) | 29.2 | (0.6 | ) | 16.1 | (35.7 | ) | (0.6 | ) | |||||||||||||||
Intercompany balances | — | 18.8 | (44.9 | ) | — | 26.1 | — | ||||||||||||||||||
Net cash provided by (used in) investing activities | (18.0 | ) | 22.8 | (158.8 | ) | 33.7 | (9.6 | ) | (129.9 | ) | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Net payments on long-term debt | — | (19.5 | ) | — | (9.9 | ) | — | (29.4 | ) | ||||||||||||||||
Payments of financing fees | — | (22.8 | ) | — | — | — | (22.8 | ) | |||||||||||||||||
Payments on license obligations | — | — | (7.0 | ) | — | — | (7.0 | ) | |||||||||||||||||
Common stock repurchases | (29.5 | ) | — | — | — | — | (29.5 | ) | |||||||||||||||||
Contingent earnout payments | — | — | (7.0 | ) | (3.2 | ) | — | (10.2 | ) | ||||||||||||||||
Net redemptions of common stock under stock-based compensation plans | (19.1 | ) | — | — | (35.7 | ) | 35.7 | (19.1 | ) | ||||||||||||||||
Other, principally intercompany balances | 126.2 | — | — | (100.1 | ) | (26.1 | ) | — | |||||||||||||||||
Net cash provided by (used in) financing activities | 77.6 | (42.3 | ) | (14.0 | ) | (148.9 | ) | 9.6 | (118.0 | ) | |||||||||||||||
Effect of exchange rate changes on cash | — | — | (0.3 | ) | (6.4 | ) | — | (6.7 | ) | ||||||||||||||||
Increase (decrease) in cash and cash equivalents | (19.6 | ) | 0.3 | (13.1 | ) | 11.2 | — | (21.2 | ) | ||||||||||||||||
Cash and cash equivalents, beginning of period | 56 | — | 24.4 | 73.3 | — | 153.7 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 36.4 | $ | 0.3 | $ | 11.3 | $ | 84.5 | $ | — | $ | 132.5 | |||||||||||||
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Parent | SGI | Guarantor | Non- | Eliminating | Consolidated | ||||||||||||||||||||
Company | Subsidiaries | Guarantor | Entries | ||||||||||||||||||||||
Subsidiaries | |||||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (44.7 | ) | $ | (16.1 | ) | $ | 43.3 | $ | 113.1 | $ | — | $ | 95.6 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||
Additions to property and equipment | (3.3 | ) | (1.8 | ) | (12.2 | ) | (5.6 | ) | — | (22.9 | ) | ||||||||||||||
Lottery and gaming services expenditures | (0.2 | ) | (6.4 | ) | (0.4 | ) | (44.3 | ) | — | (51.3 | ) | ||||||||||||||
Intangible assets and software expenditures | (2.1 | ) | (12.2 | ) | (11.7 | ) | (12.1 | ) | — | (38.1 | ) | ||||||||||||||
Business acquisitions, net of cash acquired | — | — | — | (0.4 | ) | — | (0.4 | ) | |||||||||||||||||
Other assets and investments | 9.9 | 14 | — | 36.3 | (64.3 | ) | (4.1 | ) | |||||||||||||||||
Other, principally intercompany balances | 32.3 | — | (23.4 | ) | — | (8.9 | ) | — | |||||||||||||||||
Net cash (used in) provided by investing activities | 36.6 | (6.4 | ) | (47.7 | ) | (26.1 | ) | (73.2 | ) | (116.8 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Net payments on long-term debt | — | (4.7 | ) | — | (4.8 | ) | — | (9.5 | ) | ||||||||||||||||
Net redemptions of common stock under stock-based compensation plans | (2.1 | ) | — | — | (64.3 | ) | 64.3 | (2.1 | ) | ||||||||||||||||
Payment of financing fees | — | (2.0 | ) | — | — | — | (2.0 | ) | |||||||||||||||||
Other, principally intercompany balances | — | 29 | — | (37.9 | ) | 8.9 | — | ||||||||||||||||||
Net cash provided by (used in) financing activities | (2.1 | ) | 22.3 | — | (107.0 | ) | 73.2 | (13.6 | ) | ||||||||||||||||
Effect of exchange rate changes on cash | — | 0.2 | — | (0.9 | ) | — | (0.7 | ) | |||||||||||||||||
Decrease in cash and cash equivalents | (10.2 | ) | — | (4.4 | ) | (20.9 | ) | — | (35.5 | ) | |||||||||||||||
Cash and cash equivalents, beginning of period | 27.2 | 0.2 | 2.4 | 79.2 | — | 109 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 17 | $ | 0.2 | $ | (2.0 | ) | $ | 58.3 | $ | — | $ | 73.5 | ||||||||||||
Description_of_the_Business_an2
Description of the Business and Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Payment Guarantee | Payment Guarantee | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' | ' |
Prior period reclassification | $1.40 | $4.70 | ' | ' |
Guarantor Obligations [Line Items] | ' | ' | ' | ' |
License agreements, guaranteed obligations, term | ' | ' | '6 years | '4 years |
Minimum guarantees | ' | ' | 178.3 | 216 |
Minimum guarantees, due in next twelve months | ' | ' | 10.6 | ' |
Minimum guarantees, payments year to date | ' | ' | 27.4 | ' |
Minimum guarantees, due in second year | ' | ' | 29.2 | ' |
Minimum guarantees, due in third year | ' | ' | 28.9 | ' |
Minimum guarantees, due in fourth year | ' | ' | 28.7 | ' |
Minimum guarantees, due in fifth year | ' | ' | $80.90 | ' |
Reportable_Business_Segment_In
Reportable Business Segment Information - Schedule of Segment Reporting Information, by Segment (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Revenue: | ' | ' | ' | ' | ||||
Instant games | $130.80 | $129.70 | $392.40 | $379 | ||||
Services | 182.8 | 80.7 | 538.9 | 247.7 | ||||
Product sales | 102 | 24 | 289.3 | 62.3 | ||||
Total revenue | 415.6 | 234.4 | 1,220.60 | 689 | ||||
Cost of instant games | 69.7 | 70.6 | 212.5 | 210.3 | ||||
Cost of services | 69.6 | 42.6 | 200.7 | 135 | ||||
Cost of product sales | 59.9 | 13.3 | 161.2 | 39.3 | ||||
Selling, general and administrative | 95.6 | 45.6 | 282.6 | 139.1 | ||||
Research and development | 26.3 | 1.4 | 77 | 4.7 | ||||
Employee termination and restructuring | 1.9 | 0 | 12.4 | 0.3 | ||||
Depreciation and amortization | 100.4 | 35.2 | 290.5 | 111.1 | ||||
Unallocated corporate costs | 41.1 | 22.7 | 115.1 | 68.8 | ||||
Operating (loss) income | -7.8 | 25.7 | -16.3 | 49.2 | ||||
Earnings (loss) from equity investments | -14 | 3.4 | -7.8 | 13 | ||||
Operating Segments | ' | ' | ' | ' | ||||
Revenue: | ' | ' | ' | ' | ||||
Instant games | 130.8 | 129.7 | 392.4 | 379 | ||||
Services | 182.8 | 80.7 | 538.9 | 247.7 | ||||
Product sales | 102 | 24 | 289.3 | 62.3 | ||||
Total revenue | 415.6 | 234.4 | 1,220.60 | 689 | ||||
Cost of instant games | 69.7 | [1] | 70.6 | [1] | 212.5 | [1] | 210.3 | [1] |
Cost of services | 69.6 | [1] | 42.6 | [1] | 200.7 | [1] | 135 | [1] |
Cost of product sales | 59.9 | [1] | 13.3 | [1] | 161.2 | [1] | 39.3 | [1] |
Selling, general and administrative | 60.2 | 23.1 | 188.9 | 70.8 | ||||
Research and development | 26.3 | 1.4 | 77 | 4.7 | ||||
Employee termination and restructuring | 1.9 | ' | 10.5 | 0.3 | ||||
Depreciation and amortization | 94.7 | 35 | 271 | 110.6 | ||||
Operating (loss) income | 33.3 | 48.4 | 98.8 | 118 | ||||
Unallocated corporate costs | ' | ' | ' | ' | ||||
Revenue: | ' | ' | ' | ' | ||||
Unallocated corporate costs | 41.1 | 22.7 | 115.1 | 68.8 | ||||
Instant Products | Operating Segments | ' | ' | ' | ' | ||||
Revenue: | ' | ' | ' | ' | ||||
Instant games | 130.8 | 129.7 | 392.4 | 379 | ||||
Services | 0 | 0 | 0 | 0 | ||||
Product sales | 3.2 | 3.1 | 9.4 | 10.1 | ||||
Total revenue | 134 | 132.8 | 401.8 | 389.1 | ||||
Cost of instant games | 69.7 | [1] | 70.6 | [1] | 212.5 | [1] | 210.3 | [1] |
Cost of services | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Cost of product sales | 2.4 | [1] | 2.2 | [1] | 6.5 | [1] | 7.2 | [1] |
Selling, general and administrative | 12.2 | 11.5 | 38.9 | 35.5 | ||||
Research and development | 0.5 | 0.1 | 1 | 0.4 | ||||
Employee termination and restructuring | 0.4 | ' | 1.6 | 0.3 | ||||
Depreciation and amortization | 8.9 | 9.2 | 26.2 | 27 | ||||
Operating (loss) income | 39.9 | 39.2 | 115.1 | 108.4 | ||||
Earnings (loss) from equity investments | -15.4 | 5.2 | -12.4 | 15.8 | ||||
Lottery Systems | Operating Segments | ' | ' | ' | ' | ||||
Revenue: | ' | ' | ' | ' | ||||
Instant games | 0 | 0 | 0 | 0 | ||||
Services | 48.2 | 48.6 | 149.3 | 146.1 | ||||
Product sales | 30.5 | 13.6 | 63.3 | 35.2 | ||||
Total revenue | 78.7 | 62.2 | 212.6 | 181.3 | ||||
Cost of instant games | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Cost of services | 30.4 | [1] | 27.1 | [1] | 90.4 | [1] | 82 | [1] |
Cost of product sales | 24.6 | [1] | 7.3 | [1] | 50.8 | [1] | 22.4 | [1] |
Selling, general and administrative | 5.6 | 5.3 | 17.1 | 16 | ||||
Research and development | 0.9 | 0.9 | 1.7 | 3.1 | ||||
Employee termination and restructuring | 0 | ' | 0 | 0 | ||||
Depreciation and amortization | 16 | 13.4 | 44.6 | 38.8 | ||||
Operating (loss) income | 1.2 | 8.2 | 8 | 19 | ||||
Earnings (loss) from equity investments | 0.1 | 0.1 | 1.3 | 0.7 | ||||
Gaming | Operating Segments | ' | ' | ' | ' | ||||
Revenue: | ' | ' | ' | ' | ||||
Instant games | 0 | 0 | 0 | 0 | ||||
Services | 134.6 | 32.1 | 389.6 | 101.6 | ||||
Product sales | 68.3 | 7.3 | 216.6 | 17 | ||||
Total revenue | 202.9 | 39.4 | 606.2 | 118.6 | ||||
Cost of instant games | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Cost of services | 39.2 | [1] | 15.5 | [1] | 110.3 | [1] | 53 | [1] |
Cost of product sales | 32.9 | [1] | 3.8 | [1] | 103.9 | [1] | 9.7 | [1] |
Selling, general and administrative | 42.4 | 6.3 | 132.9 | 19.3 | ||||
Research and development | 24.9 | 0.4 | 74.3 | 1.2 | ||||
Employee termination and restructuring | 1.5 | ' | 8.9 | 0 | ||||
Depreciation and amortization | 69.8 | 12.4 | 200.2 | 44.8 | ||||
Operating (loss) income | -7.8 | 1 | -24.3 | -9.4 | ||||
Earnings (loss) from equity investments | $1.30 | ($1.90) | $3.30 | ($3.50) | ||||
[1] | Exclusive of depreciation and amortization. |
Reportable_Business_Segment_In1
Reportable Business Segment Information - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Reconciliation of reportable segment operating income to consolidated income before income taxes | ' | ' | ' | ' |
Segment operating income (loss) from continuing operations | ($7.80) | $25.70 | ($16.30) | $49.20 |
Unallocated corporate costs | -41.1 | -22.7 | -115.1 | -68.8 |
Interest expense | -45.7 | -25.2 | -142.9 | -75.3 |
Earnings (loss) from equity investments | -14 | 3.4 | -7.8 | 13 |
Loss on early extinguishment of debt | 0 | 0 | -25.9 | 0 |
Gain on sale of equity interest | 0 | 0 | 14.5 | 0 |
Other income (expense), net | 3.1 | 0 | 9.2 | -0.8 |
Net loss from continuing operations before income taxes | -64.4 | 3.9 | -169.2 | -13.9 |
Business Segment | ' | ' | ' | ' |
Reconciliation of reportable segment operating income to consolidated income before income taxes | ' | ' | ' | ' |
Segment operating income (loss) from continuing operations | 33.3 | 48.4 | 98.8 | 118 |
Business segment operating income | Business Segment | ' | ' | ' | ' |
Reconciliation of reportable segment operating income to consolidated income before income taxes | ' | ' | ' | ' |
Segment operating income (loss) from continuing operations | $33.30 | $48.40 | $98.80 | $118 |
Reportable_Business_Segment_In2
Reportable Business Segment Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of business segments | 3 |
Acquisitions_and_Dispositions_1
Acquisitions and Dispositions - Pending Acquistion of Bally (Details) (Bally Technologies Inc., USD $) | 0 Months Ended | |
Aug. 01, 2014 | Aug. 01, 2014 | |
Business Acquisition [Line Items] | ' | ' |
Share price | ' | $83.30 |
Purchase price | $5,100,000,000 | ' |
Debt assumed | ' | 1,800,000,000 |
Termination fee, breach by lenders | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Termination fee, liability | 105,000,000 | 105,000,000 |
Termination fee, lack of approval from authoritative body | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Termination fee, liability | 105,000,000 | 105,000,000 |
Termination fee, superior proposal | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Termination fee, asset | $80,000,000 | $80,000,000 |
Acquisitions_and_Dispositions_2
Acquisitions and Dispositions - Acquisitions (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 01, 2014 | Oct. 18, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 18, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2012 | Oct. 18, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||
Bally Technologies Inc. | WMS Acquisition | WMS Acquisition | WMS Acquisition | WMS Acquisition | Gaming | Gaming | Gaming | Gaming | Depreciation and amortization | Depreciation and amortization | Acquisition-related fees and expenses | Acquisition-related fees and expenses | Interest expense | Interest expense | Income tax expense | Income tax expense | |||||||||
WMS Acquisition | WMS Acquisition | WMS Acquisition | WMS Acquisition | WMS Acquisition | WMS Acquisition | WMS Acquisition | WMS Acquisition | WMS Acquisition | |||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Purchase price | ' | ' | ' | ' | ' | ' | $5,100 | $1,485.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Impairments | ' | ' | ' | ' | 5.4 | ' | ' | ' | 3.8 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Goodwill | 1,168.70 | ' | 1,168.70 | ' | 1,183.10 | 801.4 | ' | ' | ' | ' | 381.8 | 669.2 | 663.6 | 262.7 | 381.8 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Current assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 503.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-term notes receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Property, plant and equipment, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 465.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 325 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Intellectual property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 201.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Other long-term assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,961.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Current liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -158.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Deferred income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -166.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-term liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -150.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -475.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total equity purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,485.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Revenue from Consolidated Statements of Operations and Comprehensive (Loss) Income | 415.6 | 234.4 | 1,220.60 | 689 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Add: WMS revenue not reflected in Consolidated Statements of Operations and Comprehensive (Loss) Income | ' | ' | ' | ' | ' | ' | ' | ' | 166.4 | 547.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Unaudited pro forma revenue | ' | ' | ' | ' | ' | ' | ' | ' | 400.8 | 1,236.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net loss from continuing operations from Consolidated Statements of Operations and Comprehensive (Loss) Income | -69.8 | -0.4 | -187.2 | -25.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Add: WMS net loss from continuing operations not reflected in Consolidated Statements of Operations and Comprehensive (Loss) Income plus pro forma adjustments (1), (2), (3) and (4) below | ' | ' | ' | ' | ' | ' | ' | ' | -25.4 | [1],[2],[3],[4] | -45 | [1],[2],[3],[4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unaudited pro forma net loss from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | ($25.80) | ($70.10) | ' | ' | ' | ' | ' | ($8.40) | ($28.90) | $3.50 | $20.50 | ($20.40) | ($61) | $0.50 | $3 | ||
[1] | An adjustment of $0.5 million and $3.0 million to reverse the U.S. tax benefit and expense of WMS for the three and nine months ended September 30, 2013, respectively, under the assumption that the U.S. taxable income of WMS would have been offset by U.S. tax attributes of the Company. | ||||||||||||||||||||||||
[2] | An adjustment to reverse acquisition-related fees and expenses of $3.5 million and $20.5 million for the three and nine months ended September 30, 2013, respectively. | ||||||||||||||||||||||||
[3] | An adjustment to reflect additional D&A of $8.4 million and $28.9 million for the three and nine months ended September 30, 2013, respectively, that would have been incurred assuming the fair value adjustments to intangible assets and property and equipment had been applied on January 1, 2012. | ||||||||||||||||||||||||
[4] | An adjustment to reflect additional interest expense of $20.4 million and $61.0 million for the three and nine months ended September 30, 2013, respectively, that would have been incurred assuming our new credit facilities were in place as of January 1, 2012. |
Acquisitions_and_Dispositions_3
Acquisitions and Dispositions - Dispositions (Details) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 25, 2013 | ||
USD ($) | USD ($) | USD ($) | USD ($) | Installed Pub Gaming Terminals | Installed Pub Gaming Terminals | Installed Pub Gaming Terminals | |||
USD ($) | USD ($) | GBP (£) | |||||||
Revenue: | ' | ' | ' | ' | ' | ' | ' | ||
Services | ' | ' | ' | ' | $0 | $1.80 | ' | ||
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ||
Cost of services | ' | ' | ' | ' | 0.1 | [1] | 3 | [1] | ' |
Selling, general and administrative | ' | ' | ' | ' | 0 | 1 | ' | ||
Depreciation and amortization | ' | ' | ' | ' | 0 | 0.5 | ' | ||
Loss from discontinued operations | 0 | -0.1 | 0 | -2.7 | -0.1 | -2.7 | ' | ||
Other expense | ' | ' | ' | ' | 0 | 0 | ' | ||
Gain on sale of assets | 0 | 0 | 0 | 0.8 | 0 | 0.8 | ' | ||
Income tax benefits | 0 | 0 | 0 | 0.3 | 0 | 0.3 | ' | ||
Net loss from discontinued operations | 0 | -0.1 | 0 | -1.6 | -0.1 | -1.6 | ' | ||
Sale of installed pub gaming terminals, sales price | ' | ' | ' | ' | ' | ' | £ 0.5 | ||
[1] | Exclusive of depreciation and amortization. |
Restructuring_Plans_Schedule_o
Restructuring Plans - Schedule of Restructuring Reserve by Segment (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | $1.90 | $0 | $12.40 | $0.30 |
Cumulative | ' | ' | 35.1 | ' |
Expected Total | ' | ' | 35.2 | ' |
Employee Termination Costs | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 1.4 | ' | 9.5 | ' |
Cumulative | ' | ' | 20.6 | ' |
Expected Total | ' | ' | 20.6 | ' |
Property Costs | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 0.4 | ' | 1 | ' |
Cumulative | ' | ' | 4.1 | ' |
Expected Total | ' | ' | 4.1 | ' |
Other | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 0.1 | ' | 1.9 | ' |
Cumulative | ' | ' | 10.4 | ' |
Expected Total | ' | ' | 10.5 | ' |
Business Segment | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 1.9 | ' | 10.5 | 0.3 |
Business Segment | Instant Products | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 0.4 | ' | 1.6 | 0.3 |
Cumulative | ' | ' | 6.3 | ' |
Expected Total | ' | ' | 6.3 | ' |
Business Segment | Instant Products | Employee Termination Costs | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 0 | ' | 1 | ' |
Cumulative | ' | ' | 1 | ' |
Expected Total | ' | ' | 1 | ' |
Business Segment | Instant Products | Property Costs | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 0.4 | ' | 0.4 | ' |
Cumulative | ' | ' | 0.4 | ' |
Expected Total | ' | ' | 0.4 | ' |
Business Segment | Instant Products | Other | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 0 | ' | 0.2 | ' |
Cumulative | ' | ' | 4.9 | ' |
Expected Total | ' | ' | 4.9 | ' |
Business Segment | Lottery Systems | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 0 | ' | 0 | 0 |
Cumulative | ' | ' | 0.4 | ' |
Expected Total | ' | ' | 0.4 | ' |
Business Segment | Lottery Systems | Employee Termination Costs | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 0 | ' | 0 | ' |
Cumulative | ' | ' | 0.4 | ' |
Expected Total | ' | ' | 0.4 | ' |
Business Segment | Lottery Systems | Property Costs | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 0 | ' | 0 | ' |
Cumulative | ' | ' | 0 | ' |
Expected Total | ' | ' | 0 | ' |
Business Segment | Lottery Systems | Other | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 0 | ' | 0 | ' |
Cumulative | ' | ' | 0 | ' |
Expected Total | ' | ' | 0 | ' |
Business Segment | Gaming | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 1.5 | ' | 8.9 | ' |
Cumulative | ' | ' | 17.5 | ' |
Expected Total | ' | ' | 17.6 | ' |
Business Segment | Gaming | Employee Termination Costs | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 1.4 | ' | 6.8 | ' |
Cumulative | ' | ' | 10.6 | ' |
Expected Total | ' | ' | 10.6 | ' |
Business Segment | Gaming | Property Costs | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 0 | ' | 0.4 | ' |
Cumulative | ' | ' | 1.4 | ' |
Expected Total | ' | ' | 1.4 | ' |
Business Segment | Gaming | Other | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 0.1 | ' | 1.7 | ' |
Cumulative | ' | ' | 5.5 | ' |
Expected Total | ' | ' | 5.6 | ' |
Unallocated corporate | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 0 | ' | 1.9 | ' |
Cumulative | ' | ' | 10.9 | ' |
Expected Total | ' | ' | 10.9 | ' |
Unallocated corporate | Employee Termination Costs | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 0 | ' | 1.7 | ' |
Cumulative | ' | ' | 8.6 | ' |
Expected Total | ' | ' | 8.6 | ' |
Unallocated corporate | Property Costs | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 0 | ' | 0.2 | ' |
Cumulative | ' | ' | 2.3 | ' |
Expected Total | ' | ' | 2.3 | ' |
Unallocated corporate | Other | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Employee termination and restructuring | 0 | ' | 0 | ' |
Cumulative | ' | ' | 0 | ' |
Expected Total | ' | ' | $0 | ' |
Restructuring_Plans_Reserve_Ro
Restructuring Plans - Reserve Rollforward (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | $12.20 | ' |
Additional accruals | 1.9 | 0 | 12.4 | 0.3 |
Cash payments | ' | ' | -14.9 | ' |
Non-cash expense | ' | ' | 1.5 | ' |
Ending balance | 11.2 | ' | 11.2 | ' |
Employee Termination Costs | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | 9.3 | ' |
Additional accruals | 1.4 | ' | 9.5 | ' |
Cash payments | ' | ' | -12.1 | ' |
Non-cash expense | ' | ' | 0.5 | ' |
Ending balance | 7.2 | ' | 7.2 | ' |
Property Costs | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | 2.8 | ' |
Additional accruals | 0.4 | ' | 1 | ' |
Cash payments | ' | ' | -0.9 | ' |
Non-cash expense | ' | ' | -0.6 | ' |
Ending balance | 2.3 | ' | 2.3 | ' |
Other | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | 0.1 | ' |
Additional accruals | 0.1 | ' | 1.9 | ' |
Cash payments | ' | ' | -1.9 | ' |
Non-cash expense | ' | ' | 1.6 | ' |
Ending balance | $1.70 | ' | $1.70 | ' |
Restructuring_Plans_Narrative_
Restructuring Plans - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Pre-tax employee termination and restructuring costs | $1.90 | $0 | $12.40 | $0.30 |
Gaming | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Number of immaterial business lines with exit costs | ' | ' | 2 | ' |
Basic_and_Diluted_Net_Loss_Per2
Basic and Diluted Net Loss Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net loss | ' | ' | ' | ' |
Net loss from continuing operations | ($69.80) | ($0.40) | ($187.20) | ($25.10) |
Net loss from discontinued operations | 0 | -0.1 | 0 | -1.6 |
Net loss | ($69.80) | ($0.50) | ($187.20) | ($26.70) |
Weighted average number of shares used in per share calculations: | ' | ' | ' | ' |
Basic shares | 84.7 | 85.1 | 84.5 | 84.9 |
Diluted shares | 84.7 | 85.1 | 84.5 | 84.9 |
Basic net loss per share: | ' | ' | ' | ' |
Continuing operations | ($0.82) | ($0.01) | ($2.22) | ($0.29) |
Discontinued operations | $0 | $0 | $0 | ($0.02) |
Total basic net loss per share | ($0.82) | ($0.01) | ($2.22) | ($0.31) |
Continuing operations | ($0.82) | ($0.01) | ($2.22) | ($0.29) |
Discontinued operations | $0 | $0 | $0 | ($0.02) |
Total diluted net loss per share | ($0.82) | ($0.01) | ($2.22) | ($0.31) |
Basic_and_Diluted_Net_Loss_Per3
Basic and Diluted Net Loss Per Share - Narrative (Details) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Stock option | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities | 1.7 | 3.4 |
Restricted stock units | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities | 4 | 5.1 |
Accounts_and_Notes_Receivable_2
Accounts and Notes Receivable and Credit Quality of Notes Receivable - Components of Current and Long-term Accounts and Notes Receivable, Net (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current: | ' | ' |
Accounts receivable | $307.90 | $360.40 |
Notes receivable | 135.5 | 164.3 |
Allowance for doubtful accounts | -18 | -20 |
Current accounts and notes receivable, net | 425.4 | 504.7 |
Long-term: | ' | ' |
Notes receivable | 55.5 | 72.6 |
Accounts and notes receivable, net | $480.90 | $577.30 |
Accounts_and_Notes_Receivable_3
Accounts and Notes Receivable and Credit Quality of Notes Receivable - Components of Total Notes Receivable, Net (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Accounts and notes receivable, net | $480.90 | $577.30 |
Notes receivable | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Notes receivable | 191 | 236.9 |
Notes receivable allowance for doubtful accounts | -7.4 | -5.6 |
Accounts and notes receivable, net | 183.6 | 231.3 |
Notes receivable, balances over 90 days past due | 10.4 | 9.1 |
Notes receivable allowance for doubtful accounts, balances over 90 days past due | -4.7 | -3.3 |
Notes receivable, net, balances over 90 days past due | 5.7 | 5.8 |
Domestic | Notes receivable | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Notes receivable | 48.1 | 65.1 |
Notes receivable allowance for doubtful accounts | 0 | 0 |
Notes receivable, balances over 90 days past due | 2.2 | 0.4 |
Notes receivable allowance for doubtful accounts, balances over 90 days past due | 0 | 0 |
International | Notes receivable | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Notes receivable | 142.9 | 171.8 |
Notes receivable allowance for doubtful accounts | -7.4 | -5.6 |
Notes receivable, balances over 90 days past due | 8.2 | 8.7 |
Notes receivable allowance for doubtful accounts, balances over 90 days past due | ($4.70) | ($3.30) |
Accounts_and_Notes_Receivable_4
Accounts and Notes Receivable and Credit Quality of Notes Receivable - Evaluation of Notes Receivable For Impairment (Details) (Notes receivable, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Notes receivable | $191 | $236.90 |
Ending balance individually evaluated for impairment | 85.6 | 104.5 |
Ending balance collectively evaluated for impairment | 105.4 | 132.4 |
Domestic | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Notes receivable | 48.1 | 65.1 |
Ending balance individually evaluated for impairment | 6.7 | 4.8 |
Ending balance collectively evaluated for impairment | 41.4 | 60.3 |
International | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Notes receivable | 142.9 | 171.8 |
Ending balance individually evaluated for impairment | 78.9 | 99.7 |
Ending balance collectively evaluated for impairment | $64 | $72.10 |
Accounts_and_Notes_Receivable_5
Accounts and Notes Receivable and Credit Quality of Notes Receivable - Allowance for Doubtful Accounts Receivable (Details) (Notes receivable, USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Notes receivable | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' |
Beginning balance | $5.60 |
Charge-offs | -0.1 |
Recoveries | 0 |
Provision | 1.9 |
Ending balance | 7.4 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment [Roll Forward] | ' |
Beginning balance | 5.6 |
Charge-offs | -0.1 |
Recoveries | 0 |
Provision | 1.9 |
Ending balance | 7.4 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment [Roll Forward] | ' |
Beginning balance | 0 |
Charge-offs | 0 |
Recoveries | 0 |
Provision | 0 |
Ending balance | $0 |
Accounts_and_Notes_Receivable_6
Accounts and Notes Receivable and Credit Quality of Notes Receivable - Modification of Terms (Details) (Notes receivable, USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | |
contract | ||
customer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | |
Number of customers | 9 | |
Number of notes | 28 | |
Pre-modification investment | $12.80 | |
Post-modification investment | 12.8 | |
International | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | |
Number of customers | 9 | [1] |
Number of notes | 28 | [1] |
Pre-modification investment | 12.8 | [1] |
Post-modification investment | 12.8 | [1] |
International | Customer one | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | |
Number of customers | 1 | |
Post-modification investment | 4 | |
Number of notes consolidated into one | 12 | |
Contract extension term | '28 months | |
International | Customer two | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | |
Number of customers | 1 | |
Post-modification investment | 2.3 | |
Contract extension term | '9 months | |
International | Customer Three | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | |
Number of customers | 1 | |
International | Customer three, note two | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | |
Post-modification investment | 0.2 | |
Contract extension term | '7 months | |
International | Customer three, note one | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | |
Post-modification investment | 1.4 | |
Number of notes consolidated into one | 4 | |
Contract extension term | '5 months | |
International | Customer four | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | |
Number of customers | 1 | |
Post-modification investment | 3.1 | |
Number of notes consolidated into one | 3 | |
Contract extension term | '4 months | |
International | Customer five | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | |
Number of customers | 1 | |
Post-modification investment | 0.5 | |
Contract extension term | '21 months | |
International | Customer six | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | |
Number of customers | 1 | |
Post-modification investment | 0.3 | |
Contract extension term | '27 months | |
International | Customer seven | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | |
Number of customers | 1 | |
Post-modification investment | 0.1 | |
Contract extension term | '21 months | |
International | Customer eight | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | |
Post-modification investment | 0.7 | |
Number of notes consolidated into one | 2 | |
Contract extension term | '15 months | |
International | Customer nine | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | |
Post-modification investment | $0.20 | |
Number of notes consolidated into one | 2 | |
Contract extension term | '14 months | |
[1] | The modifications are detailed below: b"One customer for which 12 notes were consolidated into one note aggregating $4.0 million, with an average 28-month payment extension; b"One customer for which three notes were consolidated into one note aggregating $3.1 million, with an average four-month payment extension; b"One customer with a note for $2.3 million for which original payment terms were extended by nine months;b"One customer for which four notes were consolidated into one note aggregating $1.4 million, with an average five-month extension, and another note for $0.2 million for which original payment terms were extended by seven months;b"One customer for which two notes were consolidated into one note aggregating $0.7 million, with an average 15-month payment extension;b"One customer with a note for $0.5 million for which original payment terms were extended by 21 months; b"One customer with a note for $0.3 million for which original payment terms were extended by 27 months; b"One customer for which two notes were consolidated into one note aggregating $0.2 million, with an average 14-month payment extension; andb"One customer with a note for $0.1 million for which original payment terms were extended by 21 months. |
Accounts_and_Notes_Receivable_7
Accounts and Notes Receivable and Credit Quality of Notes Receivable - Concentration Risk (Details) (Geographic concentration risk, Notes receivable) | 9 Months Ended |
Sep. 30, 2014 | |
Peru | ' |
Concentration Risk [Line Items] | ' |
Concentration risk percentage | 25.00% |
Mexico | ' |
Concentration Risk [Line Items] | ' |
Concentration risk percentage | 17.00% |
Argentina | ' |
Concentration Risk [Line Items] | ' |
Concentration risk percentage | 12.00% |
Colombia | ' |
Concentration Risk [Line Items] | ' |
Concentration risk percentage | 10.00% |
Other (less than 5% individually) | ' |
Concentration Risk [Line Items] | ' |
Concentration risk percentage | 11.00% |
Total international notes receivable as a percentage of total notes receivable | ' |
Concentration Risk [Line Items] | ' |
Concentration risk percentage | 75.00% |
Accounts_and_Notes_Receivable_8
Accounts and Notes Receivable and Credit Quality of Notes Receivable - Narrative (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Argentina | Mexico | Minimum | Maximum | Notes receivable | Notes receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts and notes receivable, net | $480.90 | $577.30 | $24.90 | $36.10 | ' | ' | $183.60 | $231.30 |
Proceeds from collection of accounts and notes receivable, net | ' | ' | $27.50 | $14.20 | ' | ' | ' | ' |
Receivable with imputed interest, effective yield (interest rate) | ' | ' | ' | ' | 4.00% | 10.40% | ' | ' |
Financing receivable, percentage greater than 90 days past due | ' | ' | ' | ' | ' | ' | 3.10% | 2.50% |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories | ' | ' |
Parts and work-in-process | $70.40 | $62.10 |
Finished goods | 100.5 | 75.7 |
Inventory | $170.90 | $137.80 |
Property_and_Equipment_Schedul
Property and Equipment - Schedule of PPE (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Accumulated depreciation | ($3.40) | $0 |
Software, net | 739.6 | 773.1 |
Lottery and gaming operations machinery and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 269.3 | 239.1 |
Software, net | 375.5 | 434.4 |
Lottery machinery and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 358.8 | 350.3 |
Accumulated depreciation | -237.7 | -210.6 |
Software, net | 121.1 | 139.7 |
Gaming operations equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 478.3 | 439.7 |
Accumulated depreciation | -223.9 | -145 |
Software, net | 254.4 | 294.7 |
Other property and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Accumulated depreciation | -196.3 | -177.5 |
Software, net | 364.1 | 338.7 |
Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 25.1 | 25.6 |
Buildings and leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 182.2 | 181.6 |
Machinery and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 25.6 | 30.1 |
Transportation equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 4.4 | 6.4 |
Construction in progress | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 12 | 33.4 |
Capital leases | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $41.80 | $0 |
Property_and_Equipment_Narrati
Property and Equipment - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' | ' |
Depreciation expense | $58.50 | $23.70 | $166.80 | $78.20 | ' |
Accumulated amortization | $3.40 | ' | $3.40 | ' | $0 |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill - Intangible Assets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Amortizable intangible assets: | ' | ' |
Gross Carrying Amount | $537.20 | $407.20 |
Accumulated Amortization | 139.7 | 98.9 |
Net Balance | 397.5 | 308.3 |
Non-amortizable intangible assets | ' | ' |
Total intangible assets, gross carrying amount | 642.1 | 512.1 |
Total intangible assets, accumulated amortization (excluding goodwill) | 141.8 | 101 |
Total intangible assets, net | 500.3 | 411.1 |
Trade name | ' | ' |
Non-amortizable intangible assets | ' | ' |
Non-amortizable intangible assets, Gross Carrying Amount | 104.9 | 104.9 |
Non-amortizable intangible assets, Accumulated Amortization | 2.1 | 2.1 |
Non-amortizable intangible assets, Net Balance | 102.8 | 102.8 |
Patents | ' | ' |
Amortizable intangible assets: | ' | ' |
Gross Carrying Amount | 17.1 | 14.5 |
Accumulated Amortization | 8 | 7.1 |
Net Balance | 9.1 | 7.4 |
Customer lists | ' | ' |
Amortizable intangible assets: | ' | ' |
Gross Carrying Amount | 161.3 | 161.9 |
Accumulated Amortization | 37.2 | 24 |
Net Balance | 124.1 | 137.9 |
Licenses | ' | ' |
Amortizable intangible assets: | ' | ' |
Gross Carrying Amount | 309.2 | 181 |
Accumulated Amortization | 82.4 | 59.9 |
Net Balance | 226.8 | 121.1 |
Intellectual property | ' | ' |
Amortizable intangible assets: | ' | ' |
Gross Carrying Amount | 8.5 | 8.6 |
Accumulated Amortization | 6.6 | 5.7 |
Net Balance | 1.9 | 2.9 |
Brand name | ' | ' |
Amortizable intangible assets: | ' | ' |
Gross Carrying Amount | 39.3 | 39.3 |
Accumulated Amortization | 3.8 | 0.6 |
Net Balance | 35.5 | 38.7 |
Non-compete agreements | ' | ' |
Amortizable intangible assets: | ' | ' |
Gross Carrying Amount | 0.3 | 0.4 |
Accumulated Amortization | 0.2 | 0.2 |
Net Balance | 0.1 | 0.2 |
Lottery contracts | ' | ' |
Amortizable intangible assets: | ' | ' |
Gross Carrying Amount | 1.5 | 1.5 |
Accumulated Amortization | 1.5 | 1.4 |
Net Balance | $0 | $0.10 |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill - Schedule of Goodwill (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ' | ' |
Balance at the beginning of the period | $1,183.10 | $801.40 |
Acquisitions | ' | 381.8 |
Impairments | ' | -5.4 |
Foreign currency adjustments | -14.4 | 5.3 |
Reallocation of goodwill | ' | 0 |
Balance at the end of the period | 1,168.70 | 1,183.10 |
Instant Products | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Balance at the beginning of the period | 340.2 | 328 |
Acquisitions | ' | 0 |
Impairments | ' | -5.4 |
Foreign currency adjustments | -2.8 | -2.4 |
Reallocation of goodwill | ' | 20 |
Balance at the end of the period | 337.4 | 340.2 |
Lottery Systems | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Balance at the beginning of the period | 173.7 | 210.7 |
Acquisitions | ' | 0 |
Impairments | ' | 0 |
Foreign currency adjustments | -6 | 2.7 |
Reallocation of goodwill | ' | -39.7 |
Balance at the end of the period | 167.7 | 173.7 |
Gaming | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Balance at the beginning of the period | 669.2 | 262.7 |
Acquisitions | ' | 381.8 |
Impairments | ' | 0 |
Foreign currency adjustments | -5.6 | 5 |
Reallocation of goodwill | ' | 19.7 |
Balance at the end of the period | $663.60 | $669.20 |
Intangible_Assets_and_Goodwill4
Intangible Assets and Goodwill - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Intangible assets | ' | ' | ' | ' | ' |
Intangible amortization expense | $18.10 | $5.20 | $49 | $15 | ' |
Impairments | ' | ' | ' | ' | 5.4 |
WMS Acquisition | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | ' |
Impairments | ' | 3.8 | ' | ' | ' |
Customer relationships | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | ' |
Weighted average useful life | ' | ' | '13 years 7 months 6 days | ' | ' |
Licenses | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | ' |
Weighted average useful life | ' | ' | '2 years 10 months 24 days | ' | ' |
Increase in carrying amount of licenses | ' | ' | $106 | ' | ' |
Software_Details
Software (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Capitalized Computer Software, Net [Abstract] | ' | ' | ' | ' | ' |
Software | $500.80 | ' | $500.80 | ' | $457.70 |
Accumulated amortization | -194 | ' | -194 | ' | -114.2 |
Software, net | 306.8 | ' | 306.8 | ' | 343.5 |
Amortization expense | $23.80 | $6.30 | $74.70 | $17.90 | ' |
Equity_Method_Investments_Narr
Equity Method Investments - Narrative (Details) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
USD ($) | USD ($) | USD ($) | USD ($) | Northstar Lottery Group, LLC | Northstar Lottery Group, LLC | Northstar Lottery Group, LLC | Sportech | Sportech | LNS | LNS | LNS | ITL | ITL | RCN | |
USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | |||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum lottery net income as incentive compensation | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency accrual provision | ' | ' | ' | ' | ' | $37 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings (loss) from equity investments | -14 | 3.4 | -7.8 | 13 | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | 20.00% | 20.00% | 20.00% | ' | ' | ' |
Shortfall payments | ' | ' | ' | ' | 13.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other asset impairment charges | ' | ' | ' | ' | 19.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage sold | ' | ' | ' | ' | ' | ' | ' | 20.00% | 20.00% | ' | ' | ' | ' | ' | ' |
Cash proceeds | ' | ' | ' | ' | ' | ' | ' | 44.9 | 27.8 | ' | ' | ' | ' | ' | ' |
Gain (loss) on sale | ' | ' | ' | ' | ' | ' | ' | 14.5 | 9 | ' | ' | ' | ' | ' | ' |
Distributions of capital | ' | ' | -43.3 | -65 | ' | ' | ' | ' | ' | 28 | 20.7 | ' | ' | ' | ' |
Dividend | ' | ' | 22.5 | 28.8 | ' | ' | ' | ' | ' | 18.2 | 13.3 | ' | 17.4 | 11.9 | 4.3 |
Contributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40.60 | € 29.40 | ' |
LongTerm_and_Other_Debt_Schedu
Long-Term and Other Debt Schedule of Long-term Debt Instruments (Details) (USD $) | Sep. 30, 2014 | Jun. 04, 2014 | Dec. 31, 2013 | ||
Debt Instrument | ' | ' | ' | ||
Long-term debt outstanding | $3,209,300,000 | ' | $3,192,600,000 | ||
Less: debt payments due within one year | -30,900,000 | ' | -30,400,000 | ||
Long-term debt, net of current installments | 3,178,400,000 | ' | 3,162,200,000 | ||
Revolver, varying interest rate, due 2018 | ' | ' | ' | ||
Debt Instrument | ' | ' | ' | ||
Long-term debt outstanding | 0 | ' | 0 | ||
Term Loan, varying interest rate, due 2020 | ' | ' | ' | ||
Debt Instrument | ' | ' | ' | ||
Long-term debt outstanding | 2,272,900,000 | [1] | ' | 2,288,800,000 | [1] |
2018 notes | ' | ' | ' | ||
Debt Instrument | ' | ' | ' | ||
Long-term debt outstanding | 250,000,000 | ' | 250,000,000 | ||
2019 notes | ' | ' | ' | ||
Debt Instrument | ' | ' | ' | ||
Long-term debt outstanding | 0 | [2] | ' | 346,300,000 | [2] |
Long-term debt, gross | 350,000,000 | ' | 350,000,000 | ||
Loan discount amortization | 2,300,000 | ' | 3,700,000 | ||
2020 notes | ' | ' | ' | ||
Debt Instrument | ' | ' | ' | ||
Long-term debt outstanding | 300,000,000 | ' | 300,000,000 | ||
2021 notes | ' | ' | ' | ||
Debt Instrument | ' | ' | ' | ||
Long-term debt outstanding | 347,700,000 | [3] | ' | 0 | [3] |
Capital lease interest rate | ' | 6.63% | ' | ||
Chinese Loans, varying interest rates | ' | ' | ' | ||
Debt Instrument | ' | ' | ' | ||
Long-term debt outstanding | 0 | ' | 7,400,000 | ||
Capital lease obligations, 3.9% interest as of March 31, 2014 payable monthly through 2019 | ' | ' | ' | ||
Debt Instrument | ' | ' | ' | ||
Long-term debt outstanding | 38,700,000 | ' | 100,000 | ||
Capital lease interest rate | 3.90% | ' | 3.90% | ||
Senior secured term loan credit facility | ' | ' | ' | ||
Debt Instrument | ' | ' | ' | ||
Long-term debt, gross | 2,282,800,000 | ' | 2,300,000,000 | ||
Loan discount amortization | $9,900,000 | ' | $11,200,000 | ||
[1] | Total of $2,282.8 million less amortization of a loan discount in the amount of $9.9 million as of September 30, 2014. Total of $2,300.0 million less amortization of a loan discount in the amount of $11.2 million as of DecemberB 31, 2013. | ||||
[2] | Total of $350.0 million less amortization of a loan discount in the amount of $3.7 million as of December 31, 2013. | ||||
[3] | Total of $350.0 million less amortization of a loan discount in the amount of $2.3 million as of September 30, 2014. |
LongTerm_and_Other_Debt_Narrat
Long-Term and Other Debt - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Oct. 18, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 04, 2014 | Jun. 04, 2014 | Jun. 04, 2014 | Sep. 30, 2014 | Oct. 18, 2013 | Oct. 18, 2013 | Oct. 18, 2013 | Jun. 04, 2014 | Sep. 30, 2014 | Jun. 04, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 18, 2013 | Jun. 04, 2014 | Jun. 04, 2014 | Jun. 04, 2014 | Jun. 04, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | |
Senior secured credit facilities | Escrow Credit Agreement | China Loans | 2019 notes | 2019 notes | 2019 notes | Senior secured debt | Revolving credit facility | Revolving credit facility | Term loan facility | 2021 notes | 2021 notes | 2021 notes | Capital lease obligations, 3.9% interest as of March 31, 2014 payable monthly through 2019 | Capital lease obligations, 3.9% interest as of March 31, 2014 payable monthly through 2019 | Capital lease obligations, 3.9% interest as of March 31, 2014 payable monthly through 2019 | Revolving credit facility | Revolving credit facility | Letter of credit | At any time prior to May 15, 2017 | To the date of redemption | Upon the occurrence of a change of control | Following an asset sale | Bally Technologies Inc. | Bally Technologies Inc. | Bally Technologies Inc. | LIBOR | LIBOR | Base rate | Base rate | Minimum | Minimum | Maximum | Maximum | Subsequent event | |||||
Senior subordinated notes | Senior secured credit facilities | Revolver, varying interest rate, due 2018 | Revolver, varying interest rate, due 2018 | Senior secured term loan credit facility, due 2020 | Credit agreement | Senior secured debt | Revolving credit facility | 2021 notes | 2021 notes | 2021 notes | 2021 notes | Senior secured debt | Revolving credit facility | Revolving credit facility | Revolving credit facility | Bally Technologies Inc. | Revolving credit facility | Bally Technologies Inc. | LIBOR | Base rate | LIBOR | Base rate | Term loan facility | ||||||||||||||||
Revolver, varying interest rate, due 2018 | Senior secured credit facilities | Senior secured debt | Senior secured and unsecured debt | Credit agreement | Revolving credit facility | Credit agreement | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Senior secured term loan credit facility due 2021 | |||||||||||||||||||||||||||
Credit agreement | Credit agreement | Escrow Credit Agreement | Escrow Credit Agreement | Escrow Credit Agreement | Escrow Credit Agreement | ||||||||||||||||||||||||||||||||||
Debt Instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | ' | ' | ' | ' | $2,600,000,000 | ' | ' | ' | ' | ' | $2,294,000,000 | ' | $300,000,000 | $2,300,000,000 | ' | ' | ' | ' | ' | ' | $267,600,000 | $650,000,000 | $200,000,000 | ' | ' | ' | ' | $1,735,000,000 | $350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,000,000,000 |
Line of credit facility, unused capacity, commitment fee percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, unused capacity, commitment fee, step-down percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | 209,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,450,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25% | 5.00% | 2.25% | 4.00% | 1.00% | 2.00% | 5.00% | 4.00% | ' |
Debt Instrument, Fee Amount | ' | ' | ' | ' | ' | 170,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of financing costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, redemption price | ' | ' | ' | ' | ' | ' | ' | 104.63% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 106.63% | 101.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, increase period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, increase, first 90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.0025 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, increase, subsequent 90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.0025 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, increase, max rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, redemption amount | ' | ' | ' | ' | ' | ' | 5,000,000 | 140,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, total consideration for each principal amount | ' | ' | ' | ' | ' | ' | ' | ' | 1,051.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on early extinguishment of debt | 0 | 0 | 25,900,000 | 0 | ' | ' | ' | 25,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, redemption price percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, amortization, equal to stated principal amount | ' | ' | ' | ' | ' | 0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital lease asset | ' | ' | $42,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $42,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, price, percentage of principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99.32% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Instrument term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital lease interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.63% | 3.90% | 3.90% | 3.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Narrat
Fair Value Measurements - Narrative (Details) | Jan. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 31, 2013 | Aug. 31, 2013 | 31-May-13 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
Interest rate swaption | Interest rate swap | Interest rate swap | Interest rate swap | Interest rate swap | Foreign exchange forward | Foreign exchange forward | Other assets | Other long-term liabilities | LNS | LNS | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | Interest rate swaption | Interest rate swap | ||||
USD ($) | USD ($) | ||||||||||
Derivatives Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative notional amount | $150,000,000 | ' | ' | $200,000,000 | $500,000,000 | € 20,000,000 | ' | ' | ' | ' | ' |
Derivative fixed interest rate | 2.15% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative premium | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) on derivatives representing change in fair value of hedges | ' | 2,200,000 | 4,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative asset fair value | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' |
Derivative average fixed interest rate | ' | ' | ' | ' | 2.15% | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate (as a percent) | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' |
Derivative liability fair value | ' | ' | ' | ' | ' | ' | ' | ' | $5,700,000 | ' | ' |
Derivative weighted average forward exchange rate | ' | ' | ' | ' | ' | 1.27% | 131.90% | ' | ' | ' | ' |
Equity interest in derivative instrument held by Lotterie Nazionali | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | 20.00% |
Stockholders_Equity_Details
Stockholders' Equity (Details) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Change in the number of shares of Class A common stock outstanding | ' | ' |
Shares outstanding as of beginning of period | 85.2 | 84.4 |
Shares issued as part of equity-based compensation plans and the ESPP, net of RSUs surrendered | 1.6 | 1.1 |
Common stock repurchases | -2 | -0.3 |
Shares outstanding as of end of period | 84.8 | 85.2 |
Stockholders_Equity_Narrative_
Stockholders' Equity - Narrative (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 05, 2013 | Mar. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' |
Stock repurchase program, authorized amount | $200,000,000 | ' | ' | ' |
Remaining amount for purchases under the repurchase program | ' | ' | 75,000,000 | 104,500,000 |
Stock repurchased (in shares) | ' | 2,000,000 | ' | 50,000 |
Stock repurchased value | ' | 29,500,000 | ' | 800,000 |
Employee stock option | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' |
Stock repurchased (in shares) | ' | ' | ' | 226,000 |
Stock repurchased value | ' | ' | ' | $2,000,000 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Changes in Stock Options Outstanding (Details) (Employee stock option, USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Employee stock option | ' | ' | ' | ' |
Number of Options (in shares): | ' | ' | ' | ' |
Options outstanding at beginning of period | 2 | 1.9 | 2.6 | ' |
Granted | 0 | 0.2 | 0.4 | ' |
Exercised | -0.1 | 0 | 0 | ' |
Canceled | -0.2 | -0.1 | -1.1 | ' |
Options outstanding at end of period | 1.7 | 2 | 1.9 | 2.6 |
Options exercisable at end of period | 0.9 | ' | ' | ' |
Options outstanding, weighted average remaining contract term (in years) | '7 years 1 month 6 days | '7 years 4 months 24 days | '7 years 8 months 12 days | '4 years 2 months 12 days |
Options exercisable, Weighted average remaining contract term (in years) | '6 years 1 month 6 days | ' | ' | ' |
Weighted average exercise price (in dollars per share): | ' | ' | ' | ' |
Options outstanding at beginning of period | $12.34 | $12.62 | $10.46 | ' |
Granted | $0 | $8.94 | $16.03 | ' |
Exercised | $9.11 | $0 | $0 | ' |
Canceled | $17.36 | $13.88 | $9.04 | ' |
Options outstanding at end of period | $11.71 | $12.34 | $12.62 | $10.46 |
Options exercisable at end of period | $11.01 | ' | ' | ' |
Aggregate Intrinsic Value: | ' | ' | ' | ' |
Options outstanding at beginning of period | $2.30 | $0 | $17.80 | ' |
Exercised | 0 | 0 | 0 | ' |
Options outstanding at end of period | 1.8 | 2.3 | 0 | 17.8 |
Options exercisable at end of period | $1.10 | ' | ' | ' |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Changes in RSUs Outstanding (Details) (Restricted stock units, USD $) | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 |
Restricted stock units | ' | ' | ' |
Number of RSUs: | ' | ' | ' |
Unvested units at beginning of period | 4.4 | 4.8 | 5.2 |
Granted | 0 | 0.3 | 1.4 |
Vested | -0.2 | -0.4 | -1.7 |
Canceled | -0.2 | -0.3 | -0.1 |
Unvested units at end of period | 4 | 4.4 | 4.8 |
Weighted Average Grant Date Fair Value Per RSU (in dollars per share): | ' | ' | ' |
Unvested units at beginning of period | $13.50 | $13.76 | $11.93 |
Granted | $8.95 | $10.33 | $16.02 |
Vested | $14.56 | $11.53 | $10.09 |
Canceled | $15.80 | $13.44 | $13.84 |
Unvested units at end of period | $13.43 | $13.50 | $13.76 |
StockBased_Compensation_Narrat
Stock-Based Compensation - Narrative (Details) (USD $) | 3 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | 31-May-14 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Majority shareholder | Class A common stock | Employee stock option | Employee stock option | Employee stock option | Employee stock option | Employee stock option | Employee stock option | Employee stock option | Employee stock option | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Employee Stock | 2003 Incentive Compensation Plan | 2003 Incentive Compensation Plan | WMS Equity Compensation Plan | ESPP Plan | |
Minimum | Maximum | Minimum | Maximum | Class A common stock | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | '5 years | ' | ' | ' | ' | '4 years | '5 years | ' | ' | ' | ' | ' |
Shares available for future issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,900,000 | ' | 5,600,000 | 200,000 |
Award expiration period | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 16,000,000 | 13,500,000 | ' | ' |
Percentage of common stock outstanding | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum employee subscription rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' |
Award offering period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' |
Discount from market price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' |
Grants in period, weighted average grant date fair value | ' | ' | ' | $4.81 | $8.86 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | $0.30 | ' | ' | $0.90 | $1.80 | $2.70 | ' | ' | $4.30 | $4.60 | $15.90 | $13.90 | ' | ' | ' | ' | ' | ' | ' |
Tax benefit from compensation expense | ' | ' | 0.1 | ' | ' | 0.4 | 0.7 | 1.1 | ' | ' | 1.6 | 1.8 | 5.9 | 5.3 | ' | ' | ' | ' | ' | ' | ' |
Compensation cost not yet recognized | ' | ' | 4.2 | ' | ' | ' | 4.2 | ' | ' | ' | 42.2 | ' | 42.2 | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation cost not yet recognized, period for recognition | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in stock-based compensation expense | $1.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee_Benefit_Plans_Combine
Employee Benefit Plans - Combined Amount Of Net Periodic Benefit Cost Recognized (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Components of net periodic pension benefit cost | ' | ' | ' | ' |
Service cost | $0.70 | $0.70 | $1.90 | $1.90 |
Interest cost | 1.3 | 1.1 | 3.9 | 3.5 |
Expected return on plan assets | -1.6 | -1.4 | -4.9 | -4.2 |
Amortization of actuarial gains | 0.2 | 0.3 | 0.5 | 0.8 |
Curtailments | 0 | 0 | 0.2 | 0 |
Amortization of prior service costs | -0.1 | -0.1 | -0.2 | -0.2 |
Net periodic cost | $0.50 | $0.60 | $1.40 | $1.80 |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans - Narrative (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ' |
Employer matching contribution on dollar for participant contributions | $0.38 |
Maximum percentage of participant contribution eligible for employer contribution match | 6.00% |
Employer match up to maximum percentage of eligible compensation | 2.25% |
United Kingdom Pension Plans of US Entity Defined Benefit | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Period of employees average compensation, preceding retirement considered for computation of retirement benefits | '2 years |
WMS Acquisition | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Maximum annual contributions per employee (as percent) | 4.50% |
Income_Taxes_Narrative_Details
Income Taxes - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax [Line Items] | ' | ' | ' | ' |
Effective tax rates (as a percent) | -8.40% | 109.50% | -10.70% | -80.50% |
Minimum | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Effective income tax rate on foreign earnings | 0.00% | 0.00% | 0.00% | 0.00% |
Maximum | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Effective income tax rate on foreign earnings | 35.00% | 35.00% | 35.00% | 35.00% |
Litigation_Narrative_Details
Litigation - Narrative (Details) | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Apr. 16, 2012 | Apr. 16, 2012 | 31-May-13 | 31-May-13 | Sep. 30, 2014 | Jun. 13, 2014 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | USD ($) | USD ($) | USD ($) | Czech Republic Barcrest | Czech Republic Barcrest | Ecosalud | Ecosalud | WMS Merger | International Gaming Technology | International Gaming Technology | Performance guarantee | Minimum |
EUR (€) | EUR (€) | USD ($) | COP | USD ($) | USD ($) | USD ($) | USD ($) | Guarantee of business revenue | ||||
USD ($) | ||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency accrual | ' | $23.40 | $25.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Legal contingencies, liability, estimated range | 41 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency possible amount of damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 |
Loss contingency deposit of surety bond | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' |
Litigation settlement, amount | ' | ' | ' | ' | ' | 44 | 90,000 | ' | ' | ' | ' | ' |
Loss contingency, third party erroneous winning jackpot face amount | ' | ' | ' | 400 | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency, third party loss | ' | ' | ' | ' | 1.5 | ' | ' | ' | ' | ' | ' | ' |
Loss contingency, damages sought, value | ' | ' | ' | ' | ' | ' | ' | 0.9 | ' | 50 | ' | ' |
Loss contingency, damages claimed, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' | ' |
Loss contingency, interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' | ' |
Loss contingency, damages paid | ' | ' | ' | ' | ' | ' | ' | ' | $8 | ' | ' | ' |
Supplemental_Disclosure_of_Cas
Supplemental Disclosure of Cash Flow Information - Additional Cash Flow Information (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Supplemental Cash Flow Elements [Abstract] | ' | ' |
Interest paid | $109,000,000 | $72,100,000 |
Income taxes paid (received), net of refunds | -31,600,000 | 8,900,000 |
Capital lease obligations incurred | 42,800,000 | ' |
Long-term licensed assets with minimum royalty guarantees | 115,000,000 | 27,000,000 |
Noncash contribution expense | $10.80 | ' |
Financial_Information_for_Guar2
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Supplemental Condensed Consolidating Balance Sheet (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries [Abstract] | ' | ' | ' | ' |
Parent company's percentage ownership of guarantors (as a percent) | 100.00% | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | $132.50 | $153.70 | $73.50 | $109 |
Restricted cash | 12.1 | 10.9 | ' | ' |
Accounts receivable, net | 297.3 | 346 | ' | ' |
Notes receivable, net | 128.1 | 158.7 | ' | ' |
Inventories | 170.9 | 137.8 | ' | ' |
Other current assets | 109.1 | 150.3 | ' | ' |
Property and equipment, net | 739.6 | 773.1 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Goodwill | 1,168.70 | 1,183.10 | ' | 801.4 |
Intangible assets, net | 500.3 | 411.1 | ' | ' |
Intercompany balances | 0 | 0 | ' | ' |
Software, net | 306.8 | 343.5 | ' | ' |
Other assets | 473.5 | 568.2 | ' | ' |
Total assets | 4,038.90 | 4,236.40 | ' | ' |
Liabilities and stockholders' equity | ' | ' | ' | ' |
Debt payments due within one year | 30.9 | 30.4 | ' | ' |
Other current liabilities | 361.2 | 421.2 | ' | ' |
Long-term debt, excluding current installments | 3,178.40 | 3,162.20 | ' | ' |
Other long-term liabilities | 362.7 | 247.6 | ' | ' |
Intercompany balances | 0 | 0 | ' | ' |
Stockholdersb equity | 105.7 | 375 | ' | ' |
Total liabilities and stockholdersb equity | 4,038.90 | 4,236.40 | ' | ' |
Parent Company | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 36.4 | 56 | 17 | 27.2 |
Restricted cash | 0 | 0 | ' | ' |
Accounts receivable, net | 0 | 0 | ' | ' |
Notes receivable, net | 0 | 0 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Other current assets | 14.6 | 13.9 | ' | ' |
Property and equipment, net | 0.5 | 1.1 | ' | ' |
Investment in subsidiaries | 1,849.50 | 1,962.50 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Intangible assets, net | 161.1 | 1.9 | ' | ' |
Intercompany balances | 0 | 0 | ' | ' |
Software, net | 12.7 | 9.4 | ' | ' |
Other assets | 3.1 | 6 | ' | ' |
Total assets | 2,077.90 | 2,050.80 | ' | ' |
Liabilities and stockholders' equity | ' | ' | ' | ' |
Debt payments due within one year | 0 | 0 | ' | ' |
Other current liabilities | 39.7 | 30.4 | ' | ' |
Long-term debt, excluding current installments | 250 | 250 | ' | ' |
Other long-term liabilities | 179.8 | 20.8 | ' | ' |
Intercompany balances | 1,502.70 | 1,374.60 | ' | ' |
Stockholdersb equity | 105.7 | 375 | ' | ' |
Total liabilities and stockholdersb equity | 2,077.90 | 2,050.80 | ' | ' |
SGI | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 0.3 | 0 | 0.2 | 0.2 |
Restricted cash | 0 | 0 | ' | ' |
Accounts receivable, net | 62.3 | 66.9 | ' | ' |
Notes receivable, net | 0 | 0 | ' | ' |
Inventories | 40.7 | 28.2 | ' | ' |
Other current assets | 14.4 | 10.5 | ' | ' |
Property and equipment, net | 125.7 | 137.3 | ' | ' |
Investment in subsidiaries | 952.6 | 796.5 | ' | ' |
Goodwill | 253.6 | 251.7 | ' | ' |
Intangible assets, net | 42.4 | 42 | ' | ' |
Intercompany balances | 1,413 | 1,430.10 | ' | ' |
Software, net | 33.2 | 31.7 | ' | ' |
Other assets | 116.4 | 147.7 | ' | ' |
Total assets | 3,054.60 | 2,942.60 | ' | ' |
Liabilities and stockholders' equity | ' | ' | ' | ' |
Debt payments due within one year | 23 | 23 | ' | ' |
Other current liabilities | 77.5 | 63.2 | ' | ' |
Long-term debt, excluding current installments | 2,897.60 | 2,912.20 | ' | ' |
Other long-term liabilities | 45.9 | 37.8 | ' | ' |
Intercompany balances | 0 | 0 | ' | ' |
Stockholdersb equity | 10.6 | -93.6 | ' | ' |
Total liabilities and stockholdersb equity | 3,054.60 | 2,942.60 | ' | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 11.3 | 24.4 | -2 | 2.4 |
Restricted cash | 12 | 10.9 | ' | ' |
Accounts receivable, net | 117.1 | 135.4 | ' | ' |
Notes receivable, net | 71.5 | 90.9 | ' | ' |
Inventories | 60.1 | 59.6 | ' | ' |
Other current assets | 51.6 | 95 | ' | ' |
Property and equipment, net | 410.2 | 441.8 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Goodwill | 480.5 | 465.4 | ' | ' |
Intangible assets, net | 284.8 | 340.6 | ' | ' |
Intercompany balances | 343.4 | 296.3 | ' | ' |
Software, net | 211.2 | 251.4 | ' | ' |
Other assets | 26.3 | 42.2 | ' | ' |
Total assets | 2,080 | 2,253.90 | ' | ' |
Liabilities and stockholders' equity | ' | ' | ' | ' |
Debt payments due within one year | 0 | 0 | ' | ' |
Other current liabilities | 117 | 176.2 | ' | ' |
Long-term debt, excluding current installments | 0 | 0 | ' | ' |
Other long-term liabilities | 69.7 | 121.2 | ' | ' |
Intercompany balances | 0 | 0 | ' | ' |
Stockholdersb equity | 1,893.30 | 1,956.50 | ' | ' |
Total liabilities and stockholdersb equity | 2,080 | 2,253.90 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 84.5 | 73.3 | 58.3 | 79.2 |
Restricted cash | 0.1 | 0 | ' | ' |
Accounts receivable, net | 117.9 | 143.7 | ' | ' |
Notes receivable, net | 56.6 | 67.8 | ' | ' |
Inventories | 70.1 | 50 | ' | ' |
Other current assets | 28.5 | 30.9 | ' | ' |
Property and equipment, net | 203.2 | 192.9 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Goodwill | 434.6 | 466 | ' | ' |
Intangible assets, net | 12 | 26.6 | ' | ' |
Intercompany balances | 0 | 0 | ' | ' |
Software, net | 49.7 | 51 | ' | ' |
Other assets | 327.7 | 372.3 | ' | ' |
Total assets | 1,384.90 | 1,474.50 | ' | ' |
Liabilities and stockholders' equity | ' | ' | ' | ' |
Debt payments due within one year | 7.9 | 7.4 | ' | ' |
Other current liabilities | 127 | 151.4 | ' | ' |
Long-term debt, excluding current installments | 30.8 | 0 | ' | ' |
Other long-term liabilities | 67.3 | 67.8 | ' | ' |
Intercompany balances | 253.7 | 351.8 | ' | ' |
Stockholdersb equity | 898.2 | 896.1 | ' | ' |
Total liabilities and stockholdersb equity | 1,384.90 | 1,474.50 | ' | ' |
Eliminating Entries | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ' | ' |
Accounts receivable, net | 0 | 0 | ' | ' |
Notes receivable, net | 0 | 0 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Other current assets | 0 | 0 | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Investment in subsidiaries | -2,802.10 | -2,759 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Intangible assets, net | 0 | 0 | ' | ' |
Intercompany balances | -1,756.40 | -1,726.40 | ' | ' |
Software, net | 0 | 0 | ' | ' |
Other assets | 0 | 0 | ' | ' |
Total assets | -4,558.50 | -4,485.40 | ' | ' |
Liabilities and stockholders' equity | ' | ' | ' | ' |
Debt payments due within one year | 0 | 0 | ' | ' |
Other current liabilities | 0 | 0 | ' | ' |
Long-term debt, excluding current installments | 0 | 0 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
Intercompany balances | -1,756.40 | -1,726.40 | ' | ' |
Stockholdersb equity | -2,802.10 | -2,759 | ' | ' |
Total liabilities and stockholdersb equity | ($4,558.50) | ($4,485.40) | ' | ' |
Financial_Information_for_Guar3
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Supplemental Condensed Consolidating Statement of Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Condensed Financial Statements | ' | ' | ' | ' | ||||
Revenue | $415.60 | $234.40 | $1,220.60 | $689 | ||||
Cost of instant ticket revenues, cost of services and cost of sales | 199.2 | [1] | 126.5 | [1] | 574.4 | [1] | 384.6 | [1] |
Selling, general and administrative | 95.6 | 45.6 | 282.6 | 139.1 | ||||
Research and development | 26.3 | 1.4 | 77 | 4.7 | ||||
Employee termination and restructuring | 1.9 | 0 | 12.4 | 0.3 | ||||
Depreciation and amortization | 100.4 | 35.2 | 290.5 | 111.1 | ||||
Operating (loss) income | -7.8 | 25.7 | -16.3 | 49.2 | ||||
Interest expense | -45.7 | -25.2 | -142.9 | -75.3 | ||||
Other (income) expense | -10.9 | 3.4 | -10 | 12.2 | ||||
Net (loss) income from continuing operations before income taxes | -64.4 | 3.9 | -169.2 | -13.9 | ||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||||
Income tax expense | -5.4 | -4.3 | -18 | -11.2 | ||||
Net loss from continuing operations | -69.8 | -0.4 | -187.2 | -25.1 | ||||
Net loss from discontinued operations | 0 | -0.1 | 0 | -1.6 | ||||
Net loss | -69.8 | -0.5 | -187.2 | -26.7 | ||||
Other comprehensive income | -55.1 | 39.2 | -51.4 | 1.9 | ||||
Comprehensive loss | -124.9 | 38.7 | -238.6 | -24.8 | ||||
Parent Company | ' | ' | ' | ' | ||||
Condensed Financial Statements | ' | ' | ' | ' | ||||
Revenue | 0 | 0 | 0 | 0 | ||||
Cost of instant ticket revenues, cost of services and cost of sales | 0 | [1] | 0 | 0 | 0 | [1] | ||
Selling, general and administrative | 19.5 | 16.9 | 51.6 | 52.2 | ||||
Research and development | 0 | 0 | 0 | 0 | ||||
Employee termination and restructuring | -0.1 | 0 | 1.9 | 0 | ||||
Depreciation and amortization | 1.2 | 0.2 | 6.7 | 0.5 | ||||
Operating (loss) income | -20.6 | -17.1 | -60.2 | -52.7 | ||||
Interest expense | -0.2 | -5.3 | -2.5 | -15.9 | ||||
Other (income) expense | -7 | 1.3 | -39.6 | 4.5 | ||||
Net (loss) income from continuing operations before income taxes | -27.8 | -21.1 | -102.3 | -64.1 | ||||
Equity in income (loss) of subsidiaries | -38.8 | 23.6 | -71.7 | 45.5 | ||||
Income tax expense | -3.2 | -2.9 | -13.2 | -6.5 | ||||
Net loss from continuing operations | -69.8 | -0.4 | -187.2 | -25.1 | ||||
Net loss from discontinued operations | ' | -0.1 | ' | -1.6 | ||||
Net loss | -69.8 | -0.5 | -187.2 | -26.7 | ||||
Other comprehensive income | -55.1 | 39.2 | -51.4 | 1.9 | ||||
Comprehensive loss | -124.9 | 38.7 | -238.6 | -24.8 | ||||
SGI | ' | ' | ' | ' | ||||
Condensed Financial Statements | ' | ' | ' | ' | ||||
Revenue | 106.9 | 100.6 | 317.1 | 308.4 | ||||
Cost of instant ticket revenues, cost of services and cost of sales | 29.7 | [1] | 30.2 | [1] | 93.5 | [1] | 97.1 | [1] |
Selling, general and administrative | 16.8 | 13.3 | 50.9 | 38.1 | ||||
Research and development | 1.2 | 0.9 | 2.3 | 3.1 | ||||
Employee termination and restructuring | 0 | 0 | 0.2 | 0 | ||||
Depreciation and amortization | 11.8 | 9.8 | 32.1 | 28.4 | ||||
Operating (loss) income | 47.4 | 46.4 | 138.1 | 141.7 | ||||
Interest expense | -16.2 | -19.7 | -62.7 | -58.8 | ||||
Other (income) expense | -55.4 | -44.9 | -150.7 | -131.7 | ||||
Net (loss) income from continuing operations before income taxes | -24.2 | -18.2 | -75.3 | -48.8 | ||||
Equity in income (loss) of subsidiaries | 16.3 | 18.8 | 51.4 | 44.6 | ||||
Income tax expense | -0.2 | -0.1 | -0.3 | -0.3 | ||||
Net loss from continuing operations | -8.1 | 0.5 | -24.2 | -4.5 | ||||
Net loss from discontinued operations | ' | 0 | ' | 0 | ||||
Net loss | -8.1 | 0.5 | -24.2 | -4.5 | ||||
Other comprehensive income | -5.4 | -2.1 | -2.4 | -1.9 | ||||
Comprehensive loss | -13.5 | -1.6 | -26.6 | -6.4 | ||||
Guarantor Subsidiaries | ' | ' | ' | ' | ||||
Condensed Financial Statements | ' | ' | ' | ' | ||||
Revenue | 159.1 | 20.3 | 475.4 | 42.2 | ||||
Cost of instant ticket revenues, cost of services and cost of sales | 82.2 | [1] | 38.1 | [1] | 243.8 | [1] | 107.2 | [1] |
Selling, general and administrative | 40.4 | 2.5 | 122.5 | 7.6 | ||||
Research and development | 20.9 | 0.2 | 62.5 | 0.5 | ||||
Employee termination and restructuring | 1.4 | 0 | 5.5 | 0 | ||||
Depreciation and amortization | 67.7 | 5.6 | 187.5 | 16.7 | ||||
Operating (loss) income | -53.5 | -26.1 | -146.4 | -89.8 | ||||
Interest expense | -29.1 | 0 | -77 | 0 | ||||
Other (income) expense | 41.4 | 45.1 | 132.8 | 134.6 | ||||
Net (loss) income from continuing operations before income taxes | -41.2 | 19 | -90.6 | 44.8 | ||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||||
Income tax expense | 0 | 0 | 0 | 0 | ||||
Net loss from continuing operations | -41.2 | 19 | -90.6 | 44.8 | ||||
Net loss from discontinued operations | ' | 0 | ' | 0 | ||||
Net loss | -41.2 | 19 | -90.6 | 44.8 | ||||
Other comprehensive income | 0 | 0 | -0.3 | 0 | ||||
Comprehensive loss | -41.2 | 19 | -90.9 | 44.8 | ||||
Non-Guarantor Subsidiaries | ' | ' | ' | ' | ||||
Condensed Financial Statements | ' | ' | ' | ' | ||||
Revenue | 149.6 | 113.9 | 428.1 | 340.5 | ||||
Cost of instant ticket revenues, cost of services and cost of sales | 87.3 | [1] | 59.8 | [1] | 237.1 | [1] | 185.8 | [1] |
Selling, general and administrative | 18.9 | 13.1 | 57.6 | 42 | ||||
Research and development | 4.2 | 0.3 | 12.2 | 1.1 | ||||
Employee termination and restructuring | 0.6 | 0 | 4.8 | 0.3 | ||||
Depreciation and amortization | 19.7 | 19.6 | 64.2 | 65.5 | ||||
Operating (loss) income | 18.9 | 21.1 | 52.2 | 45.8 | ||||
Interest expense | -0.2 | -0.2 | -0.7 | -0.6 | ||||
Other (income) expense | 10.1 | 3.3 | 47.5 | 9 | ||||
Net (loss) income from continuing operations before income taxes | 28.8 | 24.2 | 99 | 54.2 | ||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||||
Income tax expense | -2 | -1.3 | -4.5 | -4.4 | ||||
Net loss from continuing operations | 26.8 | 22.9 | 94.5 | 49.8 | ||||
Net loss from discontinued operations | ' | -0.1 | ' | -1.6 | ||||
Net loss | 26.8 | 22.8 | 94.5 | 48.2 | ||||
Other comprehensive income | -55.7 | 41 | -45.6 | 3.6 | ||||
Comprehensive loss | -28.9 | 63.8 | 48.9 | 51.8 | ||||
Eliminating Entries | ' | ' | ' | ' | ||||
Condensed Financial Statements | ' | ' | ' | ' | ||||
Revenue | 0 | -0.4 | 0 | -2.1 | ||||
Cost of instant ticket revenues, cost of services and cost of sales | 0 | [1] | -1.6 | [1] | 0 | [1] | -5.5 | [1] |
Selling, general and administrative | 0 | -0.2 | 0 | -0.8 | ||||
Research and development | 0 | 0 | 0 | 0 | ||||
Employee termination and restructuring | 0 | 0 | 0 | 0 | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||
Operating (loss) income | 0 | 1.4 | 0 | 4.2 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Other (income) expense | 0 | -1.4 | 0 | -4.2 | ||||
Net (loss) income from continuing operations before income taxes | 0 | 0 | 0 | 0 | ||||
Equity in income (loss) of subsidiaries | 22.5 | -42.4 | 20.3 | -90.1 | ||||
Income tax expense | 0 | 0 | 0 | 0 | ||||
Net loss from continuing operations | 22.5 | -42.4 | 20.3 | -90.1 | ||||
Net loss from discontinued operations | ' | 0.1 | ' | 1.6 | ||||
Net loss | 22.5 | -42.3 | 20.3 | -88.5 | ||||
Other comprehensive income | 61.1 | -38.9 | 48.3 | -1.7 | ||||
Comprehensive loss | $83.60 | ($81.20) | $68.60 | ($90.20) | ||||
[1] | Exclusive of depreciation and amortization. |
Financial_Information_for_Guar4
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Supplemental Condensed Consolidating Statement of Cash Flows (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Financial Statements | ' | ' |
Net cash provided by operating activities | $233.40 | $95.60 |
Cash flows from investing activities: | ' | ' |
Additions to property and equipment | -32.4 | -22.9 |
Lottery and gaming services expenditures | -73.1 | -51.3 |
Intangible assets and software expenditures | -70.8 | -38.1 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0.4 |
Equity method investments | -43.3 | ' |
Distributions of capital on equity investments | 45.4 | 19.4 |
Proceeds from sale of equity interest | 44.9 | 0 |
Other | -0.6 | -4.1 |
Intercompany balances | 0 | 0 |
Net cash used in investing activities | -129.9 | -116.8 |
Cash flows from financing activities: | ' | ' |
Net (payments) proceeds on long-term debt and financing fees | -29.4 | -9.5 |
Common stock repurchases | -29.5 | 0 |
Contingent earnout payments | -10.2 | 0 |
Net redemptions of common stock under stock-based compensation plans | -19.1 | -2.1 |
Payment of financing fees | -22.8 | -2 |
Payments on license obligations | -7 | 0 |
Other, principally intercompany balances | 0 | 0 |
Net cash used in financing activities | -118 | -13.6 |
Effect of exchange rate changes on cash | -6.7 | -0.7 |
Decrease in cash and cash equivalents | -21.2 | -35.5 |
Cash and cash equivalents, beginning of period | 153.7 | 109 |
Cash and cash equivalents, end of period | 132.5 | 73.5 |
Parent Company | ' | ' |
Condensed Financial Statements | ' | ' |
Net cash provided by operating activities | -79.2 | -44.7 |
Cash flows from investing activities: | ' | ' |
Additions to property and equipment | -2.3 | -3.3 |
Lottery and gaming services expenditures | -0.1 | -0.2 |
Intangible assets and software expenditures | -6 | -2.1 |
Payments to Acquire Businesses, Net of Cash Acquired | ' | 0 |
Equity method investments | 0 | ' |
Distributions of capital on equity investments | 0 | ' |
Proceeds from sale of equity interest | 0 | ' |
Other | -9.6 | 9.9 |
Intercompany balances | 0 | 32.3 |
Net cash used in investing activities | -18 | 36.6 |
Cash flows from financing activities: | ' | ' |
Net (payments) proceeds on long-term debt and financing fees | 0 | 0 |
Common stock repurchases | -29.5 | ' |
Contingent earnout payments | 0 | ' |
Net redemptions of common stock under stock-based compensation plans | -19.1 | -2.1 |
Payment of financing fees | 0 | 0 |
Payments on license obligations | 0 | ' |
Other, principally intercompany balances | 126.2 | 0 |
Net cash used in financing activities | 77.6 | -2.1 |
Effect of exchange rate changes on cash | 0 | 0 |
Decrease in cash and cash equivalents | -19.6 | -10.2 |
Cash and cash equivalents, beginning of period | 56 | 27.2 |
Cash and cash equivalents, end of period | 36.4 | 17 |
SGI | ' | ' |
Condensed Financial Statements | ' | ' |
Net cash provided by operating activities | 19.8 | -16.1 |
Cash flows from investing activities: | ' | ' |
Additions to property and equipment | -2.1 | -1.8 |
Lottery and gaming services expenditures | -9.7 | -6.4 |
Intangible assets and software expenditures | -12.1 | -12.2 |
Payments to Acquire Businesses, Net of Cash Acquired | ' | 0 |
Equity method investments | 0 | ' |
Distributions of capital on equity investments | -1.3 | ' |
Proceeds from sale of equity interest | 0 | ' |
Other | 29.2 | 14 |
Intercompany balances | 18.8 | 0 |
Net cash used in investing activities | 22.8 | -6.4 |
Cash flows from financing activities: | ' | ' |
Net (payments) proceeds on long-term debt and financing fees | -19.5 | -4.7 |
Common stock repurchases | 0 | ' |
Contingent earnout payments | 0 | ' |
Net redemptions of common stock under stock-based compensation plans | 0 | 0 |
Payment of financing fees | -22.8 | -2 |
Payments on license obligations | 0 | ' |
Other, principally intercompany balances | 0 | 29 |
Net cash used in financing activities | -42.3 | 22.3 |
Effect of exchange rate changes on cash | 0 | 0.2 |
Decrease in cash and cash equivalents | 0.3 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0.2 |
Cash and cash equivalents, end of period | 0.3 | 0.2 |
Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements | ' | ' |
Net cash provided by operating activities | 160 | 43.3 |
Cash flows from investing activities: | ' | ' |
Additions to property and equipment | -22.1 | -12.2 |
Lottery and gaming services expenditures | -41.3 | -0.4 |
Intangible assets and software expenditures | -49.9 | -11.7 |
Payments to Acquire Businesses, Net of Cash Acquired | ' | 0 |
Equity method investments | 0 | ' |
Distributions of capital on equity investments | 0 | ' |
Proceeds from sale of equity interest | 0 | ' |
Other | -0.6 | 0 |
Intercompany balances | -44.9 | -23.4 |
Net cash used in investing activities | -158.8 | -47.7 |
Cash flows from financing activities: | ' | ' |
Net (payments) proceeds on long-term debt and financing fees | 0 | 0 |
Common stock repurchases | 0 | ' |
Contingent earnout payments | -7 | ' |
Net redemptions of common stock under stock-based compensation plans | 0 | 0 |
Payment of financing fees | 0 | 0 |
Payments on license obligations | -7 | ' |
Other, principally intercompany balances | 0 | 0 |
Net cash used in financing activities | -14 | 0 |
Effect of exchange rate changes on cash | -0.3 | 0 |
Decrease in cash and cash equivalents | -13.1 | -4.4 |
Cash and cash equivalents, beginning of period | 24.4 | 2.4 |
Cash and cash equivalents, end of period | 11.3 | -2 |
Non-Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements | ' | ' |
Net cash provided by operating activities | 132.8 | 113.1 |
Cash flows from investing activities: | ' | ' |
Additions to property and equipment | -5.9 | -5.6 |
Lottery and gaming services expenditures | -22 | -44.3 |
Intangible assets and software expenditures | -2.8 | -12.1 |
Payments to Acquire Businesses, Net of Cash Acquired | ' | 0.4 |
Equity method investments | -43.3 | ' |
Distributions of capital on equity investments | 46.7 | ' |
Proceeds from sale of equity interest | 44.9 | ' |
Other | 16.1 | 36.3 |
Intercompany balances | 0 | 0 |
Net cash used in investing activities | 33.7 | -26.1 |
Cash flows from financing activities: | ' | ' |
Net (payments) proceeds on long-term debt and financing fees | -9.9 | -4.8 |
Common stock repurchases | 0 | ' |
Contingent earnout payments | -3.2 | ' |
Net redemptions of common stock under stock-based compensation plans | -35.7 | -64.3 |
Payment of financing fees | 0 | 0 |
Payments on license obligations | 0 | ' |
Other, principally intercompany balances | -100.1 | -37.9 |
Net cash used in financing activities | -148.9 | -107 |
Effect of exchange rate changes on cash | -6.4 | -0.9 |
Decrease in cash and cash equivalents | 11.2 | -20.9 |
Cash and cash equivalents, beginning of period | 73.3 | 79.2 |
Cash and cash equivalents, end of period | 84.5 | 58.3 |
Eliminating Entries | ' | ' |
Condensed Financial Statements | ' | ' |
Net cash provided by operating activities | 0 | 0 |
Cash flows from investing activities: | ' | ' |
Additions to property and equipment | 0 | 0 |
Lottery and gaming services expenditures | 0 | 0 |
Intangible assets and software expenditures | 0 | 0 |
Payments to Acquire Businesses, Net of Cash Acquired | ' | 0 |
Equity method investments | 0 | ' |
Distributions of capital on equity investments | 0 | ' |
Proceeds from sale of equity interest | 0 | ' |
Other | -35.7 | -64.3 |
Intercompany balances | 26.1 | -8.9 |
Net cash used in investing activities | -9.6 | -73.2 |
Cash flows from financing activities: | ' | ' |
Net (payments) proceeds on long-term debt and financing fees | 0 | 0 |
Common stock repurchases | 0 | ' |
Contingent earnout payments | 0 | ' |
Net redemptions of common stock under stock-based compensation plans | 35.7 | 64.3 |
Payment of financing fees | 0 | 0 |
Payments on license obligations | 0 | ' |
Other, principally intercompany balances | -26.1 | 8.9 |
Net cash used in financing activities | 9.6 | 73.2 |
Effect of exchange rate changes on cash | 0 | 0 |
Decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | $0 | $0 |
Financial_Information_for_Guar5
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Narrative (Details) | Sep. 30, 2014 |
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries [Abstract] | ' |
Parent company's percentage ownership of guarantors (as a percent) | 100.00% |