Business Segments (Tables)

6 Months Ended

Jun. 30, 2016

The following tables present revenue, cost of revenue, SG&A, R&D, employee termination and restructuring, D&A, operating income and earnings from equity investments for the three and six months ended June 30, 2016 and 2015, respectively, by business segment. Certain unallocated corporate amounts consisted primarily of general and administrative expenses, other income (expense) and D&A.



	Three Months Ended June 30, 2016
	Gaming		Lottery		Interactive		Total
Revenue:
Services	$	236.0	$	44.1	$	83.4	$	363.5
Product sales	205.9		8.9		—		214.8
Instant games	—		150.9		—		150.9
Total revenue	441.9		203.9		83.4		729.2
Operating expenses:
Cost of services ⁽¹⁾	44.4		26.8		30.2		101.4
Cost of product sales ⁽¹⁾	93.4		7.3		—		100.7
Cost of instant games ⁽¹⁾	—		74.1		—		74.1
Selling, general and administrative	61.2		17.8		26.8		105.8
Research and development	38.5		2.6		8.4		49.5
Employee termination and restructuring	3.4		0.2		0.5		4.1
Depreciation and amortization	154.3		17.2		3.8		175.3
Segment operating income	$	46.7	$	57.9	$	13.7	$	118.3
Unallocated corporate costs							(59.2		)
Consolidated operating income							$	59.1

Earnings from equity investments	$	1.4	$	6.6	$	—	$	8.0

(1) Exclusive of D&A.



	Three Months Ended June 30, 2015
	Gaming			Lottery		Interactive		Total
Revenue:
Services	$	240.4		$	45.9	$	51.6	$	337.9
Product sales	209.3			8.8		—		218.1
Instant games	—			135.5		—		135.5
Total revenue	449.7			190.2		51.6		691.5
Operating expenses:
Cost of services ⁽¹⁾	53.1			27.5		18.0		98.6
Cost of product sales ⁽¹⁾	100.9			7.0		—		107.9
Cost of instant games ⁽¹⁾	—			68.8		—		68.8
Selling, general and administrative	71.2			16.4		15.2		102.8
Research and development	41.1			1.5		5.4		48.0
Employee termination and restructuring	2.7			—		0.3		3.0
Depreciation and amortization	181.5			20.0		5.4		206.9
Segment operating (loss) income	$	(0.8	)	$	49.0	$	7.3	$	55.5
Unallocated corporate costs								(55.6		)
Consolidated operating loss								$	(0.1	)

Earnings from equity investments	$	1.8		$	1.5	$	—	$	3.3

(1) Exclusive of D&A.



	Six Months Ended June 30, 2016
	Gaming		Lottery		Interactive		Total
Revenue:
Services	$	468.6	$	89.2	$	156.0	$	713.8
Product sales	395.0		17.4		—		412.4
Instant games	—		285.0		—		285.0
Total revenue	863.6		391.6		156.0		1,411.2
Operating expenses:
Cost of services ⁽¹⁾	85.6		54.9		55.8		196.3
Cost of product sales ⁽¹⁾	181.2		13.9		—		195.1
Cost of instant games ⁽¹⁾	—		141.1		—		141.1
Selling, general and administrative	129.1		34.3		51.3		214.7
Research and development	76.7		5.2		15.7		97.6
Employee termination and restructuring	5.0		1.3		0.5		6.8
Depreciation and amortization	295.9		35.0		7.5		338.4
Segment operating income	$	90.1	$	105.9	$	25.2	$	221.2
Unallocated corporate costs							(111.8		)
Consolidated operating income							$	109.4

Earnings from equity investments	$	1.4	$	9.8	$	—	$	11.2

(1) Exclusive of D&A.



	Six Months Ended June 30, 2015
	Gaming		Lottery		Interactive		Total
Revenue:
Services	$	478.3	$	91.5	$	98.5	$	668.3
Product sales	397.2		20.3		—		417.5
Instant games	—		264.4		—		264.4
Total revenue	875.5		376.2		98.5		1,350.2
Operating expenses:
Cost of services ⁽¹⁾	98.6		55.9		34.6		189.1
Cost of product sales ⁽¹⁾	188.7		17.1		—		205.8
Cost of instant games ⁽¹⁾	—		135.8		—		135.8
Selling, general and administrative	145.4		33.5		30.3		209.2
Research and development	80.9		3.1		10.9		94.9
Employee termination and restructuring	6.9		0.2		1.0		8.1
Depreciation and amortization	324.8		41.3		10.5		376.6
Segment operating income	$	30.2	$	89.3	$	11.2	$	130.7
Unallocated corporate costs							(112.7		)
Consolidated operating income							$	18.0

Earnings from equity investments	$	1.7	$	4.7	$	—	$	6.4

(1) Exclusive of D&A.

Reconciliation of segment operating income (loss)

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Business segment operating income	$	118.3		$	55.5		$	221.2		$	130.7
Unallocated corporate costs	(59.2		)	(55.6		)	(111.8		)	(112.7		)
Consolidated operating income (loss)	59.1			(0.1		)	109.4			18.0
Interest expense	(165.3		)	(166.4		)	(331.0		)	(330.7		)
Earnings from equity investments	8.0			3.3			11.2			6.4
Gain on early extinguishment of debt	25.2			—			25.2			—
Other income (expense), net	1.7			(4.3		)	2.4			(9.9		)
Net loss before income taxes	$	(71.3	)	$	(167.5	)	$	(182.8	)	$	(316.2	)