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

6 Months Ended

Jun. 30, 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 June 30, 2016

	Parent  Company			SGI			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Entries			Consolidated
Assets
Cash and cash equivalents	$	32.4		$	0.5		$	—	$	68.5	$	—		$	101.4
Restricted cash	—			—			24.4		0.1		—			24.5
Accounts receivable, net	—			98.0			226.5		176.8		—			501.3
Notes receivable, net	—			—			91.2		48.8		—			140.0
Inventories	—			35.8			89.4		136.2		(12.4		)	249.0
Prepaid expenses, deposits and other current assets	31.6			14.1			35.1		40.1		—			120.9
Property and equipment, net	11.9			101.4			430.4		166.3		(14.5		)	695.5
Investment in subsidiaries	3,202.2			851.8			796.8		—		(4,850.8		)	—
Goodwill	—			188.3			1,988.2		816.0		—			2,992.5
Intangible assets, net	207.1			38.7			1,423.6		222.5		—			1,891.9
Intercompany balances	—			6,531.8			—		—		(6,531.8		)	—
Software, net	52.4			25.4			316.3		49.1		—			443.2
Other assets	291.0			119.3			44.7		214.6		(364.7		)	304.9
Total assets	$	3,828.6		$	8,005.1		$	5,466.6	$	1,939.0	$	(11,774.2	)	$	7,465.1
Liabilities and stockholders' (deficit) equity
Current portion of long-term debt	$	—		$	43.0		$	—	$	6.7	$	—		$	49.7
Other current liabilities	74.3			153.2			208.4		159.8		—			595.7
Long-term debt, excluding current portion	248.4			7,806.2			—		13.0		—			8,067.6
Other long-term liabilities	179.2			14.2			498.8		91.5		(364.7		)	419.0
Intercompany balances	4,993.6			—			1,503.7		34.5		(6,531.8		)	—
Stockholders' (deficit) equity	(1,666.9		)	(11.5		)	3,255.7		1,633.5		(4,877.7		)	(1,666.9		)
Total liabilities and stockholders' (deficit) equity	$	3,828.6		$	8,005.1		$	5,466.6	$	1,939.0	$	(11,774.2	)	$	7,465.1

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 June 30, 2016

	Parent  Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	126.4		$	408.6		$	265.5		$	(71.3	)	$	729.2
Cost of services, cost of product sales and cost of instant games (1)	—			86.1			108.8			152.6			(71.3		)	276.2
Selling, general and administrative	36.9			11.7			51.7			44.6			—			144.9
Research and development	1.9			2.3			39.1			8.4			—			51.7
Employee termination and restructuring	0.1			(0.1		)	3.3			0.9			—			4.2
Depreciation and amortization	13.0			10.3			141.1			28.7			—			193.1
Operating (loss) income	(51.9		)	16.1			64.6			30.3			—			59.1
Interest expense	—			(35.1		)	(130.1		)	(0.1		)	—			(165.3		)
Gain on early extinguishment of debt	—			25.2			—			—			—			25.2
Other (expense) income, net	(24.7		)	52.5			(24.2		)	6.1			—			9.7
Net (loss) income before equity in (loss) income of subsidiaries and income taxes	(76.6		)	58.7			(89.7		)	36.3			—			(71.3		)
Equity in (loss) income of subsidiaries	—			11.3			9.3			—			(20.6		)	—
Income tax benefit (expense)	24.9			—			—			(5.3		)	—			19.6
Net (loss) income	$	(51.7	)	$	70.0		$	(80.4	)	$	31.0		$	(20.6	)	$	(51.7	)
Other comprehensive (loss) income	(30.2		)	3.2			(8.1		)	(33.4		)	38.3			(30.2		)
Comprehensive (loss) income	$	(81.9	)	$	73.2		$	(88.5	)	$	(2.4	)	$	17.7		$	(81.9	)

(1) Exclusive of D&A.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF

OPERATIONS AND COMPREHENSIVE LOSS

Three Months Ended June 30, 2015

	Parent  Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	106.4		$	430.6		$	261.5		$	(107.0	)	$	691.5
Cost of services, cost of product sales and cost of instant games (1)	—			79.0			139.5			163.8			(107.0		)	275.3
Selling, general and administrative	16.7			18.4			70.8			35.0			—			140.9
Research and development	—			1.4			39.3			7.3			—			48.0
Employee termination and restructuring	1.4			0.7			2.4			0.7			—			5.2
Depreciation and amortization	8.1			9.8			170.8			33.5			—			222.2
Operating (loss) income	(26.2		)	(2.9		)	7.8			21.2			—			(0.1		)
Interest expense	(5.3		)	(83.1		)	(77.9		)	(0.1		)	—			(166.4		)
Other (expense) income, net	6.2			18.3			(29.0		)	3.5			—			(1.0		)
Net (loss) income before equity in (loss) income of subsidiaries and income taxes	(25.3		)	(67.7		)	(99.1		)	24.6			—			(167.5		)
Equity in (loss) income of subsidiaries	(143.0		)	22.7			9.5			—			110.8			—
Income tax benefit (expense)	66.1			(0.1		)	2.9			(3.6		)	—			65.3
Net (loss) income	$	(102.2	)	$	(45.1	)	$	(86.7	)	$	21.0		$	110.8		$	(102.2	)
Other comprehensive income (loss)	23.1			3.3			(25.4		)	42.4			(20.3		)	23.1
Comprehensive (loss) income	$	(79.1	)	$	(41.8	)	$	(112.1	)	$	63.4		$	90.5		$	(79.1	)

(1) Exclusive of D&A.

Supplemental Condensed Consolidating Statement of Cash Flows

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Six Months Ended June 30, 2016

	Parent  Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(109.5	)	$	122.1		$	104.8		$	74.5		$	—		$	191.9
Cash flows from investing activities:
Capital expenditures	(26.7		)	(5.2		)	(77.3		)	(23.4		)	—			(132.6		)
Distributions of capital on equity investments	—			—			—			22.5			—			22.5
Restricted Cash	—			—			(3.8		)	—			—			(3.8		)
Changes in other assets and liabilities and other	0.3			—			8.0			(2.2		)	—			6.1
Other, principally change in intercompany investing activities	—			(39.9		)	—			—			39.9			—
Net cash used in investing activities	(26.4		)	(45.1		)	(73.1		)	(3.1		)	39.9			(107.8		)
Cash flows from financing activities:
Net payments of long-term debt including repurchases of notes	—			(76.5		)	—			(3.6		)	—			(80.1		)
Payments on license obligations	(15.1		)	—			(9.9		)	—			—			(25.0		)
Redemptions of common stock under stock-based compensation plans	(4.4		)	—			—			—			—			(4.4		)
Other, principally change in intercompany financing activities	144.6			—			(25.9		)	(78.8		)	(39.9		)	—
Net cash provided by (used in) financing activities	125.1			(76.5		)	(35.8		)	(82.4		)	(39.9		)	(109.5		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(0.6		)	(1.3		)	—			(1.9		)
Increase (decrease) in cash and cash equivalents	(10.8		)	0.5			(4.7		)	(12.3		)	—			(27.3		)
Cash and cash equivalents, beginning of period	43.2			—			4.7			80.8			—			128.7
Cash and cash equivalents, end of period	$	32.4		$	0.5		$	—		$	68.5		$	—		$	101.4

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Six Months Ended June 30, 2015

	Parent  Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(33.1	)	$	(69.4	)	$	127.7		$	89.2		$	—		$	114.4
Cash flows from investing activities:
Capital expenditures	(8.6		)	(12.4		)	(95.6		)	(26.2		)	—			(142.8		)
Distributions of capital on equity investments	—			0.8			—			34.4			—			35.2
Changes in other assets and liabilities and other	—			—			4.0			5.5			—			9.5
Other, principally change in intercompany investing activities	—			114.2			—			—			(114.2		)	—
Net cash (used in) provided by investing activities	(8.6		)	102.6			(91.6		)	13.7			(114.2		)	(98.1		)
Cash flows from financing activities:
Net payments on long-term debt	—			(31.5		)	—			(4.7		)	—			(36.2		)
Payments on license obligations	(13.5		)	—			(5.2		)	—			—			(18.7		)
Contingent earnout payments	—			—			(0.5		)	—			—			(0.5		)
Issuance (redemptions) of common stock under stock-based compensation plans	0.9			—			(29.6		)	(116.0		)	145.6			0.9
Other, principally change in intercompany financing activities	58.2			—			(12.0		)	(14.8		)	(31.4		)	—
Net cash provided by (used in) financing activities	45.6			(31.5		)	(47.3		)	(135.5		)	114.2			(54.5		)
Effect of exchange rate changes on cash and cash equivalents	0.1			(0.4		)	(1.8		)	(2.4		)	—			(4.5		)
Increase (decrease) in cash and cash equivalents	4.0			1.3			(13.0		)	(35.0		)	—			(42.7		)
Cash and cash equivalents, beginning of period	37.9			0.1			28.8			105.0			—			171.8
Cash and cash equivalents, end of period	$	41.9		$	1.4		$	15.8		$	70.0		$	—		$	129.1