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Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries (Tables)
 9 Months Ended
Sep. 30, 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 September 30, 2015  

 
 
Parent 
Company
 
SGI
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
17.3

 
$
—

 
$
6.8

 
$
78.0

 
$
—

 
$
102.1

Restricted cash
 
—

 
—

 
17.1

 
0.1

 
—

 
17.2

Accounts receivable, net
 
—

 
78.9

 
204.1

 
187.6

 
—

 
470.6

Notes receivable, net
 
—

 
—

 
108.6

 
54.5

 
—

 
163.1

Inventories
 
—

 
35.9

 
108.9

 
114.5

 
(15.5
)
 
243.8

Other current assets
 
17.7

 
26.6

 
166.9

 
61.5

 
—

 
272.7

Property and equipment, net
 
2.0

 
110.4

 
548.8

 
216.7

 
(9.5
)
 
868.4

Investment in subsidiaries
 
3,562.2

 
876.9

 
758.2

 
—

 
(5,197.3
)
 
—

Goodwill
 
—

 
253.6

 
2,311.8

 
919.8

 
—

 
3,485.2

Intangible assets, net
 
145.8

 
40.4

 
1,511.6

 
243.0

 
—

 
1,940.8

Intercompany balances
 
—

 
6,514.7

 
—

 
—

 
(6,514.7
)
 
—

Software, net
 
20.0

 
32.4

 
413.2

 
61.4

 
—

 
527.0

Other assets
 
4.0

 
223.9

 
72.5

 
223.8

 
—

 
524.2

Total assets
 
$
3,769.0

 
$
8,193.7

 
$
6,228.5

 
$
2,160.9

 
$
(11,737.0
)
 
$
8,615.1

Liabilities and stockholders’ (deficit) equity
 
 
 
 
 
 
 
 
 
 
 
 
Debt payments due within one year
 
$
—

 
$
43.0

 
$
—

 
$
7.4

 
$
—

 
$
50.4

Other current liabilities
 
47.8

 
167.7

 
221.9

 
126.6

 
—

 
564.0

Long-term debt, excluding current installments
 
250.0

 
8,089.2

 
—

 
20.6

 
—

 
8,359.8

Other long-term liabilities
 
54.0

 
58.9

 
455.0

 
53.8

 
—

 
621.7

Intercompany balances
 
4,397.9

 
—

 
1,886.0

 
230.7

 
(6,514.6
)
 
—

Stockholders’ (deficit) equity
 
(980.7
)
 
(165.1
)
 
3,665.6

 
1,721.8

 
(5,222.4
)
 
(980.8
)
Total liabilities and stockholders’ (deficit) equity
 
$
3,769.0

 
$
8,193.7

 
$
6,228.5

 
$
2,160.9

 
$
(11,737.0
)
 
$
8,615.1

 
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 September 30, 2015
 
 
 
Parent 
Company
 
SGI
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
 
$
—

 
$
106.5

 
$
404.2

 
$
236.9

 
$
(76.0
)
 
$
671.6

Cost of services, cost of product sales and cost of instant games (1)
 
—

 
77.7

 
125.6

 
122.7

 
(76.0
)
 
250.0

Selling, general and administrative
 
16.2

 
15.9

 
68.9

 
35.8

 
—

 
136.8

Research and development
 
—

 
0.8

 
37.9

 
7.2

 
—

 
45.9

Employee termination and restructuring
 
1.4

 
0.6

 
2.9

 
0.7

 
—

 
5.6

Depreciation and amortization
 
8.3

 
10.5

 
234.3

 
33.4

 
—

 
286.5

Goodwill impairment
 
—

 
—

 
460.2

 
74.8

 
—

 
535.0

Operating (loss) income
 
(25.9
)
 
1.0

 
(525.6
)
 
(37.7
)
 
—

 
(588.2
)
Interest expense
 
3.3

 
22.1

 
(192.0
)
 
(0.2
)
 
—

 
(166.8
)
Other (expense) income, net
 
6.9

 
19.3

 
(8.2
)
 
(22.5
)
 
—

 
(4.5
)
Net (loss) income before equity in (loss) income of subsidiaries and income taxes
 
(15.7
)
 
42.4

 
(725.8
)
 
(60.4
)
 
—

 
(759.5
)
Equity in (loss) income of subsidiaries
 
(745.9
)
 
11.8

 
(93.2
)
 
—

 
827.3

 
—

Income tax benefit (expense)
 
83.5

 
(0.1
)
 
(0.9
)
 
(1.2
)
 
—

 
81.3

Net (loss) income
 
$
(678.1
)
 
$
54.1

 
$
(819.9
)
 
$
(61.6
)
 
$
827.3

 
$
(678.2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss) income
 
(49.1
)
 
(3.1
)
 
56.9

 
(104.1
)
 
50.4

 
(49.0
)
Comprehensive (loss) income
 
$
(727.2
)
 
$
51.0

 
$
(763.0
)
 
$
(165.7
)
 
$
877.7

 
$
(727.2
)

(1) Exclusive of depreciation and amortization.
 
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF
OPERATIONS AND COMPREHENSIVE LOSS
Three Months Ended September 30, 2014

 
 
Parent 
Company
 
SGI
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
 
$
—

 
$
106.9

 
$
221.2

 
$
149.7

 
$
(62.2
)
 
$
415.6

Cost of services, cost of product sales and cost of instant games (1)
 
—

 
79.0

 
91.2

 
91.2

 
(62.2
)
 
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 income (loss)
 
(20.6
)
 
(1.9
)
 
(0.4
)
 
15.1

 
—

 
(7.8
)
Interest expense
 
(0.2
)
 
(16.2
)
 
(29.1
)
 
(0.2
)
 
—

 
(45.7
)
Other (expense) income, net
 
(7.0
)
 
(6.1
)
 
(7.9
)
 
10.1

 
—

 
(10.9
)
Net (loss) income before equity in (loss) income of subsidiaries and income taxes
 
(27.8
)
 
(24.2
)
 
(37.4
)
 
25.0

 
—

 
(64.4
)
Equity in (loss) income of subsidiaries
 
(38.8
)
 
16.3

 
(5.5
)
 
—

 
28.0

 
—

Income tax expense
 
(3.2
)
 
(0.2
)
 
—

 
(2.0
)
 
—

 
(5.4
)
Net (loss) income
 
$
(69.8
)
 
$
(8.1
)
 
$
(42.9
)
 
$
23.0

 
$
28.0

 
$
(69.8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss) income
 
(55.1
)
 
(5.4
)
 
—

 
(55.7
)
 
61.1

 
(55.1
)
Comprehensive (loss) income
 
$
(124.9
)
 
$
(13.5
)
 
$
(42.9
)
 
$
(32.7
)
 
$
89.1

 
$
(124.9
)

(1) Exclusive of depreciation and amortization.




 
























SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF
OPERATIONS AND COMPREHENSIVE LOSS
Nine Months Ended September 30, 2015

 
 
Parent 
Company
 
SGI
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
 
$
—

 
$
324.1

 
$
1,267.1

 
$
707.2

 
$
(276.6
)
 
$
2,021.8

Cost of instant games, cost of services and cost of product sales (1)
 
—

 
238.0

 
410.4

 
408.9

 
(276.6
)
 
780.7

Selling, general and administrative
 
47.8

 
50.5

 
214.0

 
111.3

 
—

 
423.6

Research and development
 
—

 
3.6

 
115.0

 
22.2

 
—

 
140.8

Employee termination and restructuring
 
4.6

 
1.5

 
9.8

 
3.1

 
—

 
19.0

Depreciation and amortization
 
24.3

 
30.1

 
533.9

 
104.6

 
—

 
692.9

Goodwill impairment
 
—

 
—

 
460.2

 
74.8

 
—

 
535.0

Operating (loss) income
 
(76.7
)
 
0.4

 
(476.2
)
 
(17.7
)
 
—

 
(570.2
)
Interest expense
 
(0.6
)
 
(97.2
)
 
(399.3
)
 
(0.4
)
 
—

 
(497.5
)
Other (expense) income, net
 
24.9

 
55.2

 
(77.0
)
 
(11.1
)
 
—

 
(8.0
)
Net (loss) income before equity in (loss) income of subsidiaries and income taxes
 
(52.4
)
 
(41.6
)
 
(952.5
)
 
(29.2
)
 
—

 
(1,075.7
)
Equity in (loss) income of subsidiaries
 
(1,027.2
)
 
41.1

 
(89.9
)
 
—

 
1,076.0

 
—

Income tax benefit (expense)
 
212.9

 
(0.2
)
 
2.0

 
(5.8
)
 
—

 
208.9

Net (loss) income
 
$
(866.7
)
 
$
(0.7
)
 
$
(1,040.4
)
 
$
(35.0
)
 
$
1,076.0

 
$
(866.8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
 
(136.2
)
 
(12.9
)
 
48.4

 
(181.3
)
 
145.9

 
(136.1
)
Comprehensive (loss) income
 
$
(1,002.9
)
 
$
(13.6
)
 
$
(992.0
)
 
$
(216.3
)
 
$
1,221.9

 
$
(1,002.9
)

(1) Exclusive of depreciation and amortization.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF
OPERATIONS AND COMPREHENSIVE LOSS
Nine Months Ended September 30, 2014

 
 
Parent 
Company
 
SGI
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
 
$
—

 
$
317.1

 
$
655.0

 
$
428.4

 
$
(179.9
)
 
$
1,220.6

Cost of instant games, cost of services and cost of product sales (1)
 
—

 
235.0

 
270.5

 
248.7

 
(179.8
)
 
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

 
—

 
77.0

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
)
 
(3.4
)
 
6.5

 
40.9

 
(0.1
)
 
(16.3
)
Interest expense
 
(2.5
)
 
(62.7
)
 
(77.0
)
 
(0.7
)
 
—

 
(142.9
)
Other (expense) income, net
 
(39.6
)
 
(9.2
)
 
(8.7
)
 
47.5

 
—

 
(10.0
)
Net (loss) income before equity in (loss) income of subsidiaries and income taxes
 
(102.3
)
 
(75.3
)
 
(79.2
)
 
87.7

 
(0.1
)
 
(169.2
)
Equity in (loss) income of subsidiaries
 
(71.7
)
 
51.4

 
(12.5
)
 
—

 
32.8

 
—

Income tax expense
 
(13.2
)
 
(0.3
)
 
—

 
(4.5
)
 
—

 
(18.0
)
Net (loss) income
 
$
(187.2
)
 
$
(24.2
)
 
$
(91.7
)
 
$
83.2

 
$
32.7

 
$
(187.2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
 
(51.4
)
 
(2.4
)
 
(0.3
)
 
(45.6
)
 
48.3

 
(51.4
)
Comprehensive (loss) income
 
$
(238.6
)
 
$
(26.6
)
 
$
(92.0
)
 
$
37.6

 
$
81.0

 
$
(238.6
)

(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, 2015
 
 
 
Parent 
Company
 
SGI
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Net cash provided by (used in) operating activities
 
$
(11.5
)
 
$
44.3

 
$
85.2

 
$
137.5

 
$
—

 
$
255.5

Cash flows from investing activities:
 
 

 
 

 
 

 
 

 
 

 
—

Capital expenditures
 
(12.8
)
 
(19.7
)
 
(169.9
)
 
(31.2
)
 
—

 
(233.6
)
Distributions of capital on equity investments
 
—

 
1.0

 
—

 
36.0

 
—

 
37.0

Restricted Cash
 
—

 
—

 
9.3

 
—

 
—

 
9.3

Other
 
—

 
(0.1
)
 
5.1

 
5.1

 
—

 
10.1

Intercompany balances
 
—

 
77.2

 
—

 
—

 
(77.2
)
 
—

Net cash provided by (used in) investing activities
 
(12.8
)
 
58.4

 
(155.5
)
 
9.9

 
(77.2
)
 
(177.2
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
Net proceeds/payments on long-term debt
 
—

 
(102.3
)
 
—

 
(6.5
)
 
—

 
(108.8
)
Payments on license obligations

 
(19.5
)
 
—

 
(12.5
)
 
—

 
—

 
(32.0
)
Net issuance (redemptions) of common stock under stock-based compensation plans
 
0.5

 
—

 
(37.1
)
 
(110.2
)
 
147.2

 
0.4

Contingent earnout payments
 
—

 
—

 
(0.5
)
 
—

 
—

 
(0.5
)
Other, principally intercompany balances
 
22.7

 
—

 
99.0

 
(51.7
)
 
(70.0
)
 
—

Net cash provided by (used in) financing activities
 
3.7

 
(102.3
)
 
48.9

 
(168.4
)
 
77.2

 
(140.9
)
Effect of exchange rate changes on cash
 
—

 
(0.5
)
 
(0.6
)
 
(6.0
)
 
—

 
(7.1
)
(Decrease) increase in cash and cash equivalents
 
(20.6
)
 
(0.1
)
 
(22.0
)
 
(27.0
)
 
—

 
(69.7
)
Cash and cash equivalents, beginning of period
 
37.9

 
0.1

 
28.8

 
105.0

 
—

 
171.8

Cash and cash equivalents, end of period
 
$
17.3

 
$
—

 
$
6.8

 
$
78.0

 
$
—

 
$
102.1

 
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine months ended September 30, 2014
 
 
 
Parent 
Company
 
SGI
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Net cash provided by (used in) operating activities
 
$
(79.2
)
 
$
19.8

 
$
160.0

 
$
132.8

 
$
—

 
$
233.4

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
(8.4
)
 
(23.9
)
 
(113.3
)
 
(30.7
)
 
—

 
(176.3
)
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 and financing related costs
 
—

 
(42.3
)
 
—

 
(9.9
)
 
—

 
(52.2
)
Payments of license obligations
 
—

 
—

 
(7.0
)
 
—

 
—

 
(7.0
)
Common stock repurchases
 
(29.5
)
 
—

 
—

 
—

 
—

 
(29.5
)
Contingent earnout payments
 
—

 
—

 
(7.0
)
 
(3.2
)
 
—

 
(10.2
)
Net issuance (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
)
(Decrease) increase in cash and cash equivalents
 
(19.6
)
 
0.3

 
(13.1
)
 
11.2

 
—

 
(21.2
)
Cash and cash equivalents, beginning of period
 
56.0

 
—

 
24.4

 
73.3

 
—

 
153.7

Cash and cash equivalents, end of period
 
$
36.4

 
$
0.3

 
$
11.3

 
$
84.5

 
$
—

 
$
132.5