Business and Geographic Segments (Tables)

12 Months Ended

Dec. 31, 2014

The following tables present revenue, cost of revenue, SG&A, R&D, employee termination and restructuring, D&A, operating (loss) income from continuing operations, earnings (loss) from equity investments, gaming, lottery and interactive operations expenditures and assets for the years ended (or at) December 31, 2014, 2013 and 2012, respectively, by business segment. Certain unallocated expenses managed at the corporate level, comprised primarily of general and administrative costs and other income (expense), are not allocated to our business segments.



	Year Ended December 31, 2014
	Gaming			Lottery			Interactive		Total
Revenue:
Instant games	$	—		$	533.0		$	—	$	533.0
Services	442.6			201.4			144.5		788.5
Product sales	363.8			101.1			—		464.9
Total revenue	806.4			835.5			144.5		1,786.4
Cost of instant games (1)	—			291.4			—		291.4
Cost of services (1)	111.0			120.8			51.9		283.7
Cost of product sales (1)	195.5			78.8			—		274.3
Selling, general and administrative	235.3			73.3			57.3		365.9
Research and development	98.7			4.6			13.7		117.0
Employee termination and restructuring	15.5			3.5			7.1		26.1
Depreciation and amortization	318.7			97.1			13.3		429.1
Segment operating (loss) income from continuing operations	$	(168.3	)	$	166.0		$	1.2	$	(1.1	)
Unallocated corporate costs									171.6
Consolidated operating loss									$	(172.7	)
Earnings (loss) from equity investments	$	3.3		$	(10.9	)	$	—	$	(7.6	)
Assets at December 31, 2014	$	7,905.5		$	1,425.3		$	185.4
Unallocated assets at December 31, 2014									479.0
Consolidated assets at December 31, 2014									$	9,995.2
Gaming, lottery and interactive capital expenditures	$	160.5		$	58.3		$	5.4	$	224.2

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(1)	Exclusive of depreciation and amortization.



	Year Ended December 31, 2013
	Gaming			Lottery		Interactive		Total
Revenue:
Instant games	$	—		$	516.0	$	—	$	516.0
Services	181.8			203.2		30.0		415.0
Product sales	88.7			71.2		—		159.9
Total revenue	270.5			790.4		30.0		1,090.9
Cost of instant games (1)	—			285.1		—		285.1
Cost of services (1)	77.9			113.8		11.4		203.1
Cost of product sales (1)	56.4			47.1		—		103.5
Selling, general and administrative	87.1			70.7		10.1		167.9
Research and development	17.4			5.5		3.1		26.0
Employee termination and restructuring	6.7			5.1		1.9		13.7
Depreciation and amortization	103.9			94.5		2.7		201.1
Segment operating (loss) income from continuing operations	$	(78.9	)	$	168.6	$	0.8	$	90.5
Unallocated corporate costs								108.8
Consolidated operating loss								$	(18.3	)
Earnings (loss) from equity investments	$	(12.1	)	$	13.6	$	—	$	1.5
Assets at December 31, 2013	$	2,338.7		$	1,601.5	$	83.2
Unallocated assets at December 31, 2013								213.0
Consolidated assets at December 31, 2013								$	4,236.4
Gaming, lottery and interactive capital expenditures	$	75.8		$	79.0	$	3.2	$	158.0

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(1)	Exclusive of depreciation and amortization.



	Year Ended December 31, 2012
	Gaming			Lottery		Interactive		Total
Revenue:
Instant games	$	—		$	493.6	—		$	493.6
Services	133.1			201.1		6.1		340.3
Product sales	31.2			63.5		—		94.7
Total revenue	164.3			758.2		6.1		928.6
Cost of instant games (1)	—			282.5		—		282.5
Cost of services (1)	60.2			109.6		0.9		170.7
Cost of product sales (1)	22.1			43.0		—		65.1
Selling, general and administrative	28.1			65.4		0.7		94.2
Research and development	2.1			4.5		—		6.6
Employee termination and restructuring	4.7			5.9		—		10.6
Depreciation and amortization	57.7			92.6		—		150.3
Segment operating (loss) income from continuing operations	$	(10.6	)	$	154.7	4.5		$	148.6
Unallocated corporate costs								85.7
Consolidated operating income								$	62.9
Earnings from equity investments	$	3.0		$	25.1	$	—	28.1
Assets at December 31, 2012	$	504.0		$	1,645.0	$	0.6
Unallocated assets at December 31, 2012								37.3
Consolidated assets at December 31, 2012								$	2,186.9
Gaming, lottery and interactive capital expenditures	$	42.5		$	66.0	$	—	$	108.5

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(1)	Exclusive of depreciation and amortization.

Reconciliation of Reportable Segment Operating Income to Income (Loss) Before Income Taxes

The following table presents a reconciliation of business segment operating (loss) income to net loss from continuing operations before income taxes for each period:



	Years Ended December 31,
	2014			2013			2012
Reported segment operating (loss) income from continuing operations	$	(1.1	)	$	90.5		$	148.6
Unallocated corporate costs	(171.6		)	(108.8		)	(85.7		)
Consolidated operating (loss) income	(172.7		)	(18.3		)	62.9
Interest expense	(307.2		)	(119.5		)	(100.0		)
Earnings (loss) from equity investments	(7.6		)	1.5			28.1
Loss on early extinguishment of debt	(25.9		)	(5.9		)	(15.5		)
Gain on sale of equity interest	14.5			—			—
Other (expense) income, net	4.0			(1.1		)	1.3
Net loss from continuing operations before income taxes	$	(494.9	)	$	(143.3	)	$	(23.2	)

Schedule of the Service and Sales Revenue by Customer Location and Long-Lived Assets by Geographic Segment

The following tables present revenue by customer location and long-lived assets by geographic segment:



	Years Ended December 31,
	2014		2013		2012
Revenue:
United States	$	1,070.1	$	559.8	$	445.2
North America, other than United States	131.0		74.2		66.1
United Kingdom	162.5		157.5		163.7
Europe, other than the United Kingdom	283.6		213.2		187.6
Other	139.2		86.2		66.0
Total (1)	$	1,786.4	$	1,090.9	$	928.6



	As of December 31,
	2014		2013
Property and equipment, net:
United States	$	771.1	$	580.3
North America, other than United States	59.9		47.5
United Kingdom	96.6		85.2
Europe, other than the United Kingdom	34.2		19.6
Other	51.0		40.5
Total (2)	$	1,012.8	$	773.1

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(1)	Total revenue from international customers for the years ended December 31, 2014, 2013 and 2012 was $716.3 million, $531.1 million and $483.4 million, respectively.


(2)	Total property and equipment held outside the United States as of December 31, 2014 and 2013 was $242.2 million and $192.8 million, respectively.

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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