Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries (Tables)

3 Months Ended

Mar. 31, 2015

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 March 31, 2015  

	Parent  Company			SGI			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Entries			Consolidated
Assets
Cash and cash equivalents	$	57.7		$	0.3		$	19.6	$	73.6	$	—		$	151.2
Restricted cash	—			—			27.4		0.1		—			27.5
Accounts receivable, net	—			67.2			219.8		176.8		—			463.8
Notes receivable, net	—			—			114.6		53.5		—			168.1
Inventories	—			33.8			123.6		122.2		(17.8		)	261.8
Other current assets	63.6			20.6			121.9		54.7		—			260.8
Property and equipment, net	0.4			117.4			636.7		222.2		(9.0		)	967.7
Investment in subsidiaries	4,482.3			864.1			950.0		—		(6,296.4		)	—
Goodwill	—			253.6			2,772.1		1,005.3		—			4,031.0
Intangible assets, net	160.5			41.7			1,725.1		276.4		—			2,203.7
Intercompany balances	—			6,610.2			—		—		(6,610.2		)	—
Software, net	16.3			29.5			443.4		72.1		—			561.3
Other assets	3.1			244.8			83.6		275.0		—			606.5
Total assets	$	4,783.9		$	8,283.2		$	7,237.8	$	2,331.9	$	(12,933.4	)	$	9,703.4
Liabilities and stockholders’ (deficit) equity
Debt payments due within one year	$	—		$	43.0		$	—	$	7.4	$	—		$	50.4
Other current liabilities	61.4			172.7			231.4		130.4		—			595.9
Long-term debt, excluding current installments	250.0			8,173.2			—		24.6		—			8,447.8
Other long-term liabilities	131.3			72.7			535.9		58.8		—			798.7
Intercompany balances	4,530.6			—			1,758.1		321.5		(6,610.2		)	—
Stockholders’ (deficit) equity	(189.4		)	(178.4		)	4,712.4		1,789.2		(6,323.2		)	(189.4		)
Total liabilities and stockholders’ (deficit) equity	$	4,783.9		$	8,283.2		$	7,237.8	$	2,331.9	$	(12,933.4	)	$	9,703.4

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2014

	Parent  Company		SGI			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Entries			Consolidated
Assets
Cash and cash equivalents	$	37.9	$	0.1		$	28.8	$	105.0	$	—		$	171.8
Restricted cash	—		—			27.1		0.1		—			27.2
Accounts receivable, net	—		61.8			212.9		193.7		—			468.4
Notes receivable, net	—		—			136.6		52.1		—			188.7
Inventories	—		35.2			133.8		124.4		(27.8		)	265.6
Other current assets	65.4		20.2			114.7		56.0		—			256.3
Property and equipment, net	0.5		119.5			660.4		241.7		(9.3		)	1,012.8
Investment in subsidiaries	4,730.7		953.4			975.2		—		(6,659.3		)	—
Goodwill	—		253.6			2,781.6		1,073.1		—			4,108.3
Intangible assets, net	162.0		42.2			1,761.8		285.6		—			2,251.6
Intercompany balances	—		6,580.0			—		—		(6,580.0		)	—
Software, net	15.6		32.9			467.3		76.9		—			592.7
Other assets	2.8		255.4			96.8		296.8		—			651.8
Total assets	$	5,014.9	$	8,354.3		$	7,397.0	$	2,505.4	$	(13,276.4	)	$	9,995.2
Liabilities and stockholders’ equity
Debt payments due within one year	$	—	$	43.0		$	—	$	7.6	$	—		$	50.6
Other current liabilities	68.9		119.8			247.2		173.8		—			609.7
Long-term debt, excluding current installments	250.0		8,187.7			—		27.7		—			8,465.4
Other long-term liabilities	136.2		74.0			593.7		61.7		—			865.6
Intercompany balances	4,555.9		(0.1		)	1,637.9		386.3		(6,580.0		)	—
Stockholders’ equity	3.9		(70.1		)	4,918.2		1,848.3		(6,696.4		)	3.9
Total liabilities and stockholders’ equity	$	5,014.9	$	8,354.3		$	7,397.0	$	2,505.4	$	(13,276.4	)	$	9,995.2

Supplemental Condensed Consolidating Statement of Income

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF

OPERATIONS AND COMPREHENSIVE LOSS

Three Months Ended March 31, 2015

	Parent  Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	111.3		$	432.3		$	208.7		$	(93.6	)	$	658.7
Cost of services, cost of product sales and cost of instant games (1)	—			81.3			145.4			122.3			(93.6		)	255.4
Selling, general and administrative	14.9			16.2			74.3			40.5			—			145.9
Research and development	—			1.4			37.8			7.7			—			46.9
Employee termination and restructuring	1.8			0.2			4.5			1.7			—			8.2
Depreciation and amortization	7.8			9.9			128.7			37.8			—			184.2
Operating income (loss)	(24.5		)	2.3			41.6			(1.3		)	—			18.1
Interest income (expense)	1.4			(36.2		)	(129.6		)	0.1			—			(164.3		)
Other (expense) income, net	11.7			17.6			(39.8		)	8.0			—			(2.5		)
Net (loss) income before equity in income of subsidiaries and income taxes	(11.4		)	(16.3		)	(127.8		)	6.8			—			(148.7		)
Equity in (loss) income of subsidiaries	(138.3		)	6.6			(6.3		)	—			138.0			—
Income tax benefit (expense)	63.3			(0.1		)	—			(0.9		)	—			62.3
Net (loss) income	$	(86.4	)	$	(9.8	)	$	(134.1	)	$	5.9		$	138.0		$	(86.4	)
Other comprehensive (loss) income	(110.3		)	(13.1		)	16.9			(119.6		)	115.8			(110.3		)
Comprehensive loss	$	(196.7	)	$	(22.9	)	$	(117.2	)	$	(113.7	)	$	253.8		$	(196.7	)

(1) Exclusive of depreciation and amortization.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF

OPERATIONS AND COMPREHENSIVE LOSS

Three Months Ended March 31, 2014

	Parent  Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	100.4		$	206.2		$	138.5		$	(57.0	)	$	388.1
Cost of services, cost of product sales and cost of instant games (1)	—			75.2			83.7			80.9			(57.0		)	182.8
Selling, general and administrative	15.1			16.6			40.3			19.8			—			91.8
Research and development	—			0.5			21.5			3.9			—			25.9
Employee termination and restructuring	—			0.2			1.6			3.8			—			5.6
Depreciation and amortization	3.7			10.2			58.1			22.1			—			94.1
Operating income (loss)	(18.8		)	(2.3		)	1.0			8.0			—			(12.1		)
Interest expense	(5.4		)	(42.1		)	(0.2		)	(0.2		)	—			(47.9		)
Other (expense) income, net	(15.3		)	15.7			(2.3		)	24.7			0.1			22.9
Net (loss) income before equity in income of subsidiaries and income taxes	(39.5		)	(28.7		)	(1.5		)	32.5			0.1			(37.1		)
Equity in (loss) income of subsidiaries	(0.1		)	14.5			(3.5		)	—			(10.9		)	—
Income tax expense	(5.4		)	—			—			(2.5		)	—			(7.9		)
Net (loss) income	$	(45.0	)	$	(14.2	)	$	(5.0	)	$	30.0		$	(10.8	)	$	(45.0	)
Other comprehensive (loss) income	(0.5		)	7.9			(0.3		)	0.4			(8.0		)	(0.5		)
Comprehensive (loss) income	$	(45.5	)	$	(6.3	)	$	(5.3	)	$	30.4		$	(18.8	)	$	(45.5	)

(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

Three Months Ended March 31, 2015

	Parent  Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash provided by (used in) operating activities	$	59.9		$	45.8		$	(163.4	)	$	135.5		$	—		$	77.8
Cash flows from investing activities:																—
Capital expenditures	(5.9		)	(3.1		)	(50.5		)	(12.6		)	—			(72.1		)
Distributions of capital on equity investments	—			—			—			3.8			—			3.8
Other	—			—			—			—			—			—
Intercompany balances	—			(26.2		)	—			—			26.2			—
Net cash used in investing activities	(5.9		)	(29.3		)	(50.5		)	(8.8		)	26.2			(68.3		)
Cash flows from financing activities:
Net proceeds/payments on long-term debt	—			(15.8		)	—			(1.2		)	—			(17.0		)
Payments on license obligations	(7.5		)	—			(1.5		)	—			—			(9.0		)
Net redemptions of common stock under stock-based compensation plans	(0.7		)	—			—			—			—			(0.7		)
Intercompany balances	(26.0		)	—			206.2			(154.0		)	(26.2		)	—
Net cash provided by (used in) financing activities	(34.2		)	(15.8		)	204.7			(155.2		)	(26.2		)	(26.7		)
Effect of exchange rate changes on cash	—			(0.5		)	—			(2.9		)	—			(3.4		)
(Decrease) increase in cash and cash equivalents	19.8			0.2			(9.2		)	(31.4		)	—			(20.6		)
Cash and cash equivalents, beginning of period	37.9			0.1			28.8			105.0			—			171.8
Cash and cash equivalents, end of period	$	57.7		$	0.3		$	19.6		$	73.6		$	—		$	151.2

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Three Months Ended March 31, 2014

	Parent  Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash provided by (used in) operating activities	$	(36.1	)	$	(7.1	)	$	56.7		$	69.8		$	—		$	83.3
Cash flows from investing activities:
Capital and wagering systems expenditures	(2.9		)	(7.7		)	(38.0		)	(11.0		)	—			(59.6		)
Equity method investments	—			—			—			(17.7		)	—			(17.7		)
Distributions of capital on equity investments	—			1.1			—			21.3			—			22.4
Proceeds on sale of equity interest	—			—			—			44.9			—			44.9
Other	—			—			(0.8		)	(0.2		)	—			(1.0		)
Intercompany balances	—			19.7			(30.5		)	—			10.8			—
Net cash provided by (used in) investing activities	(2.9		)	13.1			(69.3		)	37.3			10.8			(11.0		)
Cash flows from financing activities:
Net proceeds (payments) on long-term debt and financing fees	—			(5.8		)	—			(0.2		)	—			(6.0		)
Common stock repurchases	(29.5		)	—			—			—			—			(29.5		)
Contingent earnout payments	—			—			—			(1.8		)	—			(1.8		)
Net redemptions of common stock under stock-based compensation plans	(19.2		)	—			—			—			—			(19.2		)
Other, principally intercompany balances	74.4			—			—			(63.6		)	(10.8		)	—
Net cash provided by (used in) financing activities	25.7			(5.8		)	—			(65.6		)	(10.8		)	(56.5		)
Effect of exchange rate changes on cash	—			—			(0.4		)	—			—			(0.4		)
Increase (decrease) in cash and cash equivalents	(13.3		)	0.2			(13.0		)	41.5			—			15.4
Cash and cash equivalents, beginning of period	56.0			—			24.4			73.3			—			153.7
Cash and cash equivalents, end of period	$	42.7		$	0.2		$	11.4		$	114.8		$	—		$	169.1