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

3 Months Ended

Mar. 31, 2016

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, 2016

	Parent  Company			SGI			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Entries			Consolidated
Assets
Cash and cash equivalents	$	61.8		$	0.1		$	2.3	$	81.5	$	—		$	145.7
Restricted cash	—			—			21.1		0.1		—			21.2
Accounts receivable, net	—			89.4			225.4		157.3		—			472.1
Notes receivable, net	—			—			110.8		51.0		—			161.8
Inventories	—			45.7			96.6		129.0		(11.4		)	259.9
Prepaid expenses, deposits and other current assets	23.5			3.9			41.0		56.3		—			124.7
Property and equipment, net	7.3			98.2			468.2		172.1		(11.0		)	734.8
Investment in subsidiaries	3,234.8			853.4			784.4		—		(4,872.6		)	—
Goodwill	—			186.0			1,990.5		835.5		—			3,012.0
Intangible assets, net	215.1			39.3			1,459.1		232.5		—			1,946.0
Intercompany balances	—			6,576.5			—		—		(6,576.5		)	—
Software, net	44.2			26.9			344.8		54.0		—			469.9
Other assets	250.8			121.4			46.5		247.6		(323.7		)	342.6
Total assets	$	3,837.5		$	8,040.8		$	5,590.7	$	2,016.9	$	(11,795.2	)	$	7,690.7
Liabilities and stockholders' (deficit) equity
Current portion of long-term debt	$	—		$	43.0		$	—	$	7.0	$	—		$	50.0
Other current liabilities	50.4			190.8			231.9		146.0		—			619.1
Long-term debt, excluding current portion	248.2			7,873.2			—		15.7		—			8,137.1
Other long-term liabilities	185.0			15.3			501.4		90.3		(323.6		)	468.4
Intercompany balances	4,937.8			—			1,536.5		102.2		(6,576.5		)	—
Stockholders' (deficit) equity	(1,583.9		)	(81.5		)	3,320.9		1,655.7		(4,895.1		)	(1,583.9		)
Total liabilities and stockholders' (deficit) equity	$	3,837.5		$	8,040.8		$	5,590.7	$	2,016.9	$	(11,795.2	)	$	7,690.7

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2015

	Parent  Company			SGI			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Entries			Consolidated
Assets
Cash and cash equivalents	$	43.2		$	—		$	4.7	$	80.8	$	—		$	128.7
Restricted cash	—			—			20.0		0.2		—			20.2
Accounts receivable, net	—			94.6			233.6		158.9		—			487.1
Notes receivable, net	—			—			114.2		53.5		—			167.7
Inventories	—			36.9			104.2		119.6		(12.2		)	248.5
Prepaid expenses, deposits and other current assets	26.8			7.0			52.1		37.4		—			123.3
Property and equipment, net	8.2			106.4			502.2		188.7		(11.5		)	794.0
Investment in subsidiaries	3,280.9			838.1			648.3		—		(4,767.3		)	—
Goodwill	—			186.0			1,990.5		837.2		—			3,013.7
Intangible assets, net	138.3			39.8			1,505.8		236.1		—			1,920.0
Intercompany balances	—			6,511.1			—		—		(6,511.1		)	—
Software, net	35.6			32.7			359.8		57.8		—			485.9
Other assets	232.5			123.4			51.7		241.7		(306.2		)	343.1
Total assets	$	3,765.5		$	7,976.0		$	5,587.1	$	2,011.9	$	(11,608.3	)	$	7,732.2
Liabilities and stockholders' (deficit) equity
Current portion of long-term debt	$	—		$	43.0		$	—	$	7.3	$	—		$	50.3
Other current liabilities	63.7			150.5			245.4		144.0		—			603.6
Long-term debt, excluding current portion	248.0			7,890.3			—		18.4		—			8,156.7
Other long-term liabilities	119.1			14.5			502.1		87.7		(306.3		)	417.1
Intercompany balances	4,830.2			—			1,558.2		122.6		(6,511.0		)	—
Stockholders' (deficit) equity	(1,495.5		)	(122.3		)	3,281.4		1,631.9		(4,791.0		)	(1,495.5		)
Total liabilities and stockholders' (deficit) equity	$	3,765.5		$	7,976.0		$	5,587.1	$	2,011.9	$	(11,608.3	)	$	7,732.2

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, 2016

	Parent  Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	115.3		$	407.9		$	217.9		$	(59.1	)	$	682.0
Cost of services, cost of product sales and cost of instant games (1)	—			82.9			111.0			121.5			(59.1		)	256.3
Selling, general and administrative	24.1			11.2			67.7			39.3			—			142.3
Research and development	0.9			2.3			39.3			7.3			—			49.8
Employee termination and restructuring	—			0.1			0.8			1.8			—			2.7
Depreciation and amortization	12.8			10.8			126.8			30.2			—			180.6
Operating (loss) income	(37.8		)	8.0			62.3			17.8			—			50.3
Interest expense	(0.1		)	(34.8		)	(130.8		)	—			—			(165.7		)
Other (expense) income, net	(25.6		)	50.3			(23.1		)	2.3			—			3.9
Net (loss) income before equity in (loss) income of subsidiaries and income taxes	(63.5		)	23.5			(91.6		)	20.1			—			(111.5		)
Equity in (loss) income of subsidiaries	(51.0		)	18.9			6.9			—			25.2			—
Income tax benefit (expense)	22.2			—			—			(3.0		)	—			19.2
Net (loss) income	$	(92.3	)	$	42.4		$	(84.7	)	$	17.1		$	25.2		$	(92.3	)
Other comprehensive (loss) income	(2.4		)	(0.2		)	1.9			2.7			(4.4		)	(2.4		)
Comprehensive (loss) income	$	(94.7	)	$	42.2		$	(82.8	)	$	19.8		$	20.8		$	(94.7	)

(1) Exclusive of D&A.

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 (loss) income	(24.5		)	2.3			41.6			(1.3		)	—			18.1
Interest expense, net	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 (loss) 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 D&A.

Supplemental Condensed Consolidating Statement of Cash Flows

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Three Months Ended March 31, 2016

	Parent  Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(70.0	)	$	88.7		$	57.7		$	24.7		$	—		$	101.1
Cash flows from investing activities:
Capital expenditures	(5.8		)	(2.6		)	(37.0		)	(5.8		)	—			(51.2		)
Distributions of capital on equity investments	—			—			—			1.5			—			1.5
Restricted Cash	—			—			(0.6		)	—			—			(0.6		)
Changes in other assets and liabilities and other	—			—			1.6			(0.1		)	—			1.5
Other, principally change in intercompany investing activities	—			(60.3		)	—			—			60.3			—
Net cash used in investing activities	(5.8		)	(62.9		)	(36.0		)	(4.4		)	60.3			(48.8		)
Cash flows from financing activities:
Net payments of long-term debt	—			(25.8		)	—			(1.7		)	—			(27.5		)
Payments on license obligations	(8.4		)	—			(1.2		)	—			—			(9.6		)
Other, principally change in intercompany financing activities	102.8			—			(22.9		)	(19.6		)	(60.3		)	—
Net cash provided by (used in) financing activities	94.4			(25.8		)	(24.1		)	(21.3		)	(60.3		)	(37.1		)
Effect of exchange rate changes on cash and cash equivalents	—			0.1			—			1.7			—			1.8
Increase (decrease) in cash and cash equivalents	18.6			0.1			(2.4		)	0.7			—			17.0
Cash and cash equivalents, beginning of period	43.2			—			4.7			80.8			—			128.7
Cash and cash equivalents, end of period	$	61.8		$	0.1		$	2.3		$	81.5		$	—		$	145.7

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, principally change in intercompany investing activities	—			(26.2		)	—			—			26.2			—
Net cash (used in) provided by investing activities	(5.9		)	(29.3		)	(50.5		)	(8.8		)	26.2			(68.3		)
Cash flows from financing activities:
Net 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		)
Other, principally change in intercompany financing activities	(26.0		)	—			206.2			(154.0		)	(26.2		)	—
Net cash (used in) provided by financing activities	(34.2		)	(15.8		)	204.7			(155.2		)	(26.2		)	(26.7		)
Effect of exchange rate changes on cash and cash equivalents	—			(0.5		)	—			(2.9		)	—			(3.4		)
Increase (decrease) 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