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Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries (Tables)
 9 Months Ended
Sep. 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 September 30, 2016
 
 
SGC (Parent and Issuer1)
 
SGI (Issuer2)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
42.7

 
$
0.5

 
$
—

 
$
84.8

 
$
(7.1
)
 
$
120.9

Restricted cash
 
—

 
—

 
24.2

 
0.1

 
—

 
24.3

Accounts receivable, net
 
—

 
58.2

 
193.2

 
213.9

 
—

 
465.3

Notes receivable, net
 
—

 
—

 
94.3

 
34.7

 
—

 
129.0

Inventories
 
—

 
37.9

 
93.2

 
156.8

 
(17.8
)
 
270.1

Prepaid expenses, deposits and other current assets
 
32.2

 
17.5

 
35.2

 
41.1

 
—

 
126.0

Property and equipment, net
 
8.1

 
106.3

 
406.8

 
166.1

 
(23.5
)
 
663.8

Investment in subsidiaries
 
3,166.1

 
859.5

 
888.1

 
—

 
(4,913.7
)
 
—

Goodwill
 
—

 
188.3

 
1,931.7

 
871.0

 
—

 
2,991.0

Intangible assets, net
 
196.5

 
38.5

 
1,386.0

 
220.0

 
—

 
1,841.0

Intercompany balances
 
—

 
5,505.1

 
—

 
89.3

 
(5,594.4
)
 
—

Software, net
 
71.0

 
22.9

 
285.5

 
51.7

 
—

 
431.1

Other assets
 
270.1

 
223.9

 
44.8

 
217.9

 
(442.6
)
 
314.1

Total assets
 
$
3,786.7

 
$
7,058.6

 
$
5,383.0

 
$
2,147.4

 
$
(10,999.1
)
 
$
7,376.6

Liabilities and stockholders' (deficit) equity
 
 
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
$
—

 
$
43.0

 
$
—

 
$
6.6

 
$
—

 
$
49.6

Other current liabilities
 
66.7

 
194.0

 
206.9

 
208.4

 
(7.1
)
 
668.9

Long-term debt, excluding current portion
 
248.5

 
7,774.2

 
—

 
11.1

 
—

 
8,033.8

Other long-term liabilities
 
179.4

 
12.1

 
517.4

 
108.0

 
(442.6
)
 
374.3

Intercompany balances
 
5,042.1

 
—

 
552.3

 
—

 
(5,594.4
)
 
—

Stockholders' (deficit) equity
 
(1,750.0
)
 
(964.7
)
 
4,106.4

 
1,813.3

 
(4,955.0
)
 
(1,750.0
)
Total liabilities and stockholders' (deficit) equity
 
$
3,786.7

 
$
7,058.6

 
$
5,383.0

 
$
2,147.4

 
$
(10,999.1
)
 
$
7,376.6


1 - Issuer of obligations under the 2018 Notes. 
2 - Issuer of obligations under the 2020 Notes, the 2021 Notes, the Secured Notes and the Unsecured Notes. 
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET
As of December 31, 2015
 
 
SGC (Parent and Issuer1)
 
SGI (Issuer2)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
43.2

 
$
—

 
$
0.5

 
$
85.0

 
$
—

 
$
128.7

Restricted cash
 
—

 
—

 
20.0

 
0.2

 
—

 
20.2

Accounts receivable, net
 
—

 
94.6

 
223.0

 
169.5

 
—

 
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

 
51.0

 
38.5

 
—

 
123.3

Property and equipment, net
 
8.2

 
106.4

 
501.1

 
189.8

 
(11.5
)
 
794.0

Investment in subsidiaries
 
3,319.6

 
838.1

 
819.0

 
—

 
(4,976.7
)
 
—

Goodwill
 
—

 
186.0

 
1,934.0

 
893.7

 
—

 
3,013.7

Intangible assets, net
 
138.3

 
39.8

 
1,505.0

 
236.9

 
—

 
1,920.0

Intercompany balances
 
—

 
5,857.1

 
—

 
—

 
(5,857.1
)
 
—

Software, net
 
35.6

 
32.7

 
358.0

 
59.6

 
—

 
485.9

Other assets
 
232.5

 
123.4

 
51.8

 
241.7

 
(306.3
)
 
343.1

Total assets
 
$
3,804.2

 
$
7,322.0

 
$
5,681.8

 
$
2,088.0

 
$
(11,163.8
)
 
$
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

 
238.8

 
150.6

 
—

 
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
 
4,868.9

 
—

 
966.8

 
21.4

 
(5,857.1
)
 
—

Stockholders' (deficit) equity
 
(1,495.5
)
 
(776.3
)
 
3,974.1

 
1,802.6

 
(5,000.4
)
 
(1,495.5
)
Total liabilities and stockholders' (deficit) equity
 
$
3,804.2

 
$
7,322.0

 
$
5,681.8

 
$
2,088.0

 
$
(11,163.8
)
 
$
7,732.2



1 - Issuer of obligations under the 2018 Notes. 
2 - Issuer of obligations under the 2020 Notes, the 2021 Notes, the Secured Notes and the Unsecured Notes.
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, 2016
 
 
SGC (Parent and Issuer1)
 
SGI (Issuer2)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
 
$
—

 
$
114.2

 
$
330.8

 
$
358.4

 
$
(83.4
)
 
$
720.0

Cost of services, cost of product sales and cost of instant games (3)
 
—

 
81.8

 
86.1

 
189.8

 
(83.4
)
 
274.3

Selling, general and administrative
 
30.9

 
14.8

 
43.1

 
64.0

 
—

 
152.8

Research and development
 
2.1

 
1.6

 
38.3

 
11.9

 
—

 
53.9

Restructuring and other
 
14.3

 
0.2

 
(0.7
)
 
—

 
—

 
13.8

Depreciation, amortization and impairments
 
13.8

 
8.7

 
140.6

 
28.6

 
—

 
191.7

Operating (loss) income
 
(61.1
)
 
7.1

 
23.4

 
64.1

 
—

 
33.5

Interest expense
 
(5.3
)
 
(159.5
)
 
—

 
(0.6
)
 
—

 
(165.4
)
Other (expense) income, net
 
(13.9
)
 
54.7

 
(26.7
)
 
(0.8
)
 
—

 
13.3

Net (loss) income before equity in income of subsidiaries and income taxes
 
(80.3
)
 
(97.7
)
 
(3.3
)
 
62.7

 
—

 
(118.6
)
Equity in income of subsidiaries
 
18.1

 
7.5

 
37.9

 
—

 
(63.5
)
 
—

Income tax (expense) benefit
 
(36.7
)
 
99.2

 
(16.9
)
 
(25.9
)
 
—

 
19.7

Net (loss) income
 
$
(98.9
)
 
$
9.0

 
$
17.7

 
$
36.8

 
$
(63.5
)
 
$
(98.9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
 
5.2

 
2.1

 
(48.0
)
 
19.0

 
26.9

 
5.2

Comprehensive (loss) income
 
$
(93.7
)
 
$
11.1

 
$
(30.3
)
 
$
55.8

 
$
(36.6
)
 
$
(93.7
)

1 - Issuer of obligations under the 2018 Notes. 
2 - Issuer of obligations under the 2020 Notes, the 2021 Notes, the Secured Notes and the Unsecured Notes. 
3 - Exclusive of D&A. 
 
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF
OPERATIONS AND COMPREHENSIVE LOSS
Three Months Ended September 30, 2015
 
 
SGC (Parent and Issuer1)
 
SGI (Issuer2)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
 
$
—

 
$
106.5

 
$
370.7

 
$
270.4

 
$
(76.0
)
 
$
671.6

Cost of services, cost of product sales and cost of instant games (3)
 
—

 
77.7

 
113.1

 
135.2

 
(76.0
)
 
250.0

Selling, general and administrative
 
16.2

 
15.9

 
59.2

 
45.5

 
—

 
136.8

Research and development
 
—

 
0.8

 
35.4

 
9.7

 
—

 
45.9

Restructuring and other
 
1.4

 
0.6

 
2.9

 
0.7

 
—

 
5.6

Depreciation, amortization and impairments
 
8.3

 
10.5

 
232.2

 
35.5

 
—

 
286.5

Goodwill impairment
 
—

 
—

 
802.9

 
132.1

 
—

 
935.0

Operating (loss) income
 
(25.9
)
 
1.0

 
(875.0
)
 
(88.3
)
 
—

 
(988.2
)
Interest expense
 
(5.2
)
 
(161.4
)
 
—

 
(0.2
)
 
—

 
(166.8
)
Other (expense) income, net
 
6.9

 
19.3

 
(8.2
)
 
(22.5
)
 
—

 
(4.5
)
Net loss before equity in (loss) income of subsidiaries and income taxes
 
(24.2
)
 
(141.1
)
 
(883.2
)
 
(111.0
)
 
—

 
(1,159.5
)
Equity in (loss) income of subsidiaries
 
(1,137.5
)
 
11.8

 
(143.6
)
 
—

 
1,269.3

 
—

Income tax benefit (expense)
 
83.5

 
(0.1
)
 
(0.9
)
 
(1.2
)
 
—

 
81.3

Net loss
 
$
(1,078.2
)
 
$
(129.4
)
 
$
(1,027.7
)
 
$
(112.2
)
 
$
1,269.3

 
$
(1,078.2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss) income
 
(49.0
)
 
(3.1
)
 
56.8

 
(104.1
)
 
50.4

 
(49.0
)
Comprehensive loss
 
$
(1,127.2
)
 
$
(132.5
)
 
$
(970.9
)
 
$
(216.3
)
 
$
1,319.7

 
$
(1,127.2
)

1 - Issuer of obligations under the 2018 Notes. 
2 - Issuer of obligations under the 2020 Notes, the 2021 Notes, the Secured Notes and the Unsecured Notes. 
3 - Exclusive of D&A. 


















SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF
OPERATIONS AND COMPREHENSIVE LOSS
Nine Months Ended September 30, 2016
 
 
SGC (Parent and Issuer1)
 
SGI (Issuer2)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
 
$
—

 
$
355.8

 
$
1,047.0

 
$
942.2

 
$
(213.8
)
 
$
2,131.2

Cost of instant games, cost of services and cost of product sales (3)
 
—

 
250.8

 
275.2

 
494.6

 
(213.8
)
 
806.8

Selling, general and administrative
 
91.9

 
37.6

 
132.8

 
177.7

 
—

 
440.0

Research and development
 
4.8

 
6.3

 
109.1

 
35.2

 
—

 
155.4

Restructuring and other
 
14.3

 
0.4

 
3.3

 
2.7

 
—

 
20.7

Depreciation, amortization and impairments
 
39.5

 
29.9

 
407.3

 
88.7

 
—

 
565.4

Operating (loss) income
 
(150.5
)
 
30.8

 
119.3

 
143.3

 
—

 
142.9

Interest expense
 
(15.8
)
 
(480.0
)
 
—

 
(0.6
)
 
—

 
(496.4
)
Gain on early extinguishment of debt
 
—

 
25.2

 
—

 
—

 
—

 
25.2

Other (expense) income, net
 
(64.2
)
 
157.5

 
(73.9
)
 
7.5

 
—

 
26.9

Net (loss) income before equity in (loss) income of subsidiaries and income taxes
 
(230.5
)
 
(266.5
)
 
45.4

 
150.2

 
—

 
(301.4
)
Equity in (loss) income of subsidiaries
 
(22.7
)
 
37.8

 
85.3

 
—

 
(100.4
)
 
—

Income tax benefit (expense)
 
10.3

 
99.2

 
(16.8
)
 
(34.2
)
 
—

 
58.5

Net (loss) income
 
$
(242.9
)
 
$
(129.5
)
 
$
113.9

 
$
116.0

 
$
(100.4
)
 
$
(242.9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss) income
 
(27.4
)
 
5.0

 
(54.2
)
 
(11.8
)
 
61.0

 
(27.4
)
Comprehensive (loss) income
 
$
(270.3
)
 
$
(124.5
)
 
$
59.7

 
$
104.2

 
$
(39.4
)
 
$
(270.3
)

1 - Issuer of obligations under the 2018 Notes. 
2 - Issuer of obligations under the 2020 Notes, the 2021 Notes, the Secured Notes and the Unsecured Notes. 
3 - Exclusive of D&A. 

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF
OPERATIONS AND COMPREHENSIVE LOSS
Nine Months Ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SGC (Parent and Issuer1)
 
SGI (Issuer2)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
 
$
—

 
$
324.1

 
$
1,163.3

 
$
811.0

 
$
(276.6
)
 
$
2,021.8

Cost of instant games, cost of services and cost of product sales (3)
 
—

 
238.0

 
371.4

 
447.9

 
(276.6
)
 
780.7

Selling, general and administrative
 
47.8

 
50.5

 
186.9

 
138.4

 
—

 
423.6

Research and development
 
—

 
3.6

 
108.5

 
28.7

 
—

 
140.8

Restructuring and other
 
4.6

 
1.5

 
9.6

 
3.3

 
—

 
19.0

Depreciation, amortization and impairments
 
24.3

 
30.1

 
528.2

 
110.3

 
—

 
692.9

Goodwill impairment
 
—

 
—

 
802.9

 
132.1

 
—

 
935.0

Operating (loss) income
 
(76.7
)
 
0.4

 
(844.2
)
 
(49.7
)
 
—

 
(970.2
)
Interest expense
 
(15.8
)
 
(481.3
)
 
—

 
(0.4
)
 
—

 
(497.5
)
Other (expense) income, net
 
24.9

 
55.2

 
(77.0
)
 
(11.1
)
 
—

 
(8.0
)
Net loss before equity in (loss) income of subsidiaries and income taxes
 
(67.6
)
 
(425.7
)
 
(921.2
)
 
(61.2
)
 
—

 
(1,475.7
)
Equity in (loss) income of subsidiaries
 
(1,412.1
)
 
41.1

 
(112.6
)
 
—

 
1,483.6

 
—

Income tax benefit (expense)
 
212.9

 
(0.2
)
 
(7.0
)
 
3.2

 
—

 
208.9

Net loss
 
$
(1,266.8
)
 
$
(384.8
)
 
$
(1,040.8
)
 
$
(58.0
)
 
$
1,483.6

 
$
(1,266.8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss) income
 
(136.1
)
 
(12.9
)
 
48.4

 
(181.4
)
 
145.9

 
(136.1
)
Comprehensive loss
 
$
(1,402.9
)
 
$
(397.7
)
 
$
(992.4
)
 
$
(239.4
)
 
$
1,629.5

 
$
(1,402.9
)

1 - Issuer of obligations under the 2018 Notes. 
2 - Issuer of obligations under the 2020 Notes, the 2021 Notes, the Secured Notes and the Unsecured Notes. 
3 - Exclusive of D&A. 
Supplemental Condensed Consolidating Statement of Cash Flows
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine Months Ended September 30, 2016
 
 
SGC (Parent and Issuer1)
 
SGI (Issuer2)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Net cash (used in) provided by operating activities
 
$
(213.3
)
 
$
(157.0
)
 
$
494.3

 
$
225.9

 
$
(7.1
)
 
$
342.8

Cash flows from investing activities:
 
 

 
 

 
 

 
 

 
 

 
 
Capital expenditures
 
(36.6
)
 
(22.1
)
 
(110.4
)
 
(45.3
)
 
—

 
(214.4
)
Distributions of capital on equity investments
 
—

 
—

 
—

 
24.0

 
—

 
24.0

Restricted Cash
 
—

 
—

 
(3.5
)
 
—

 
—

 
(3.5
)
Changes in other assets and liabilities and other
 
—

 
—

 
6.1

 
—

 
—

 
6.1

Other, principally change in intercompany investing activities
 
—

 
296.8

 
—

 
(198.8
)
 
(98.0
)
 
—

Net cash (used in) provided by investing activities
 
(36.6
)
 
274.7

 
(107.8
)
 
(220.1
)
 
(98.0
)
 
(187.8
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
Net payments of long-term debt including repurchases of notes
 
—

 
(117.2
)
 
—

 
(5.3
)
 
—

 
(122.5
)
Payments on license obligations
 
(24.2
)
 
—

 
(10.3
)
 
—

 
—

 
(34.5
)
Redemptions of common stock under stock-based compensation plans
 
(4.7
)
 
—

 
—

 
—

 
—

 
(4.7
)
Other, principally change in intercompany financing activities
 
278.3

 
—

 
(376.3
)
 
—

 
98.0

 
—

Net cash provided by (used in) financing activities
 
249.4

 
(117.2
)
 
(386.6
)
 
(5.3
)
 
98.0

 
(161.7
)
Effect of exchange rate changes on cash and cash equivalents
 
—

 
—

 
(0.4
)
 
(0.7
)
 
—

 
(1.1
)
(Decrease) increase in cash and cash equivalents
 
(0.5
)
 
0.5

 
(0.5
)
 
(0.2
)
 
(7.1
)
 
(7.8
)
Cash and cash equivalents, beginning of period
 
43.2

 
—

 
0.5

 
85.0

 
—

 
128.7

Cash and cash equivalents, end of period
 
$
42.7

 
$
0.5

 
$
—

 
$
84.8

 
$
(7.1
)
 
$
120.9


1 - Issuer of obligations under the 2018 Notes. 
2 - Issuer of obligations under the 2020 Notes, the 2021 Notes, the Secured Notes and the Unsecured Notes. 


  
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine Months Ended September 30, 2015
 
 
SGC (Parent and Issuer1)
 
SGI (Issuer2)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Net cash (used in) provided by operating activities
 
$
(26.7
)
 
$
(339.9
)
 
$
454.6

 
$
167.5

 
$
—

 
$
255.5

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
(12.8
)
 
(19.7
)
 
(168.0
)
 
(33.1
)
 
—

 
(233.6
)
Distributions of capital on equity investments
 
—

 
1.0

 
—

 
36.0

 
—

 
37.0

Restricted cash
 
—

 
—

 
9.3

 
—

 
—

 
9.3

Changes in other assets and liabilities and other
 
—

 
(0.1
)
 
5.1

 
5.1

 
—

 
10.1

Other, principally change in intercompany investing activities
 
—

 
461.4

 
—

 
—

 
(461.4
)
 
—

Net cash (used in) provided by investing activities
 
(12.8
)
 
442.6

 
(153.6
)
 
8.0

 
(461.4
)
 
(177.2
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 


Net payments on long-term debt
 
—

 
(102.3
)
 
—

 
(6.5
)
 
—

 
(108.8
)
Payments on license obligations
 
(19.5
)
 
—

 
(12.5
)
 
—

 
—

 
(32.0
)
Contingent earnout payments
 
—

 
—

 
(0.5
)
 
—

 
—

 
(0.5
)
Issuance (redemptions) of common stock under stock-based compensation plans
 
0.5

 
—

 
(37.1
)
 
(110.2
)
 
147.2

 
0.4

Other, principally change in intercompany financing activities
 
37.9

 
—

 
(270.6
)
 
(81.5
)
 
314.2

 
—

Net cash provided by (used in) financing activities
 
18.9

 
(102.3
)
 
(320.7
)
 
(198.2
)
 
461.4

 
(140.9
)
Effect of exchange rate changes on cash and cash equivalents
 
—

 
(0.5
)
 
(0.8
)
 
(5.8
)
 
—

 
(7.1
)
Decrease in cash and cash equivalents
 
(20.6
)
 
(0.1
)
 
(20.5
)
 
(28.5
)
 
—

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

 
0.1

 
27.3

 
106.5

 
—

 
171.8

Cash and cash equivalents, end of period
 
$
17.3

 
$
—

 
$
6.8

 
$
78.0

 
$
—

 
$
102.1



1 - Issuer of obligations under the 2018 Notes. 
2 - Issuer of obligations under the 2020 Notes, the 2021 Notes, the Secured Notes and the Unsecured Notes.