Intangible Assets, net and Goodwill

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, net

The following tables present certain information regarding our intangible assets as of March 31, 2018 and December 31, 2017.



	March 31, 2018							December 31, 2017
	Gross Carrying Value		Accumulated Amortization			Net Balance		Gross Carrying Value		Accumulated Amortization			Net Balance
Amortizable intangible assets:
Customer relationships	$	1,101.8	$	(237.4	)	$	864.4	$	881.4	$	(214.8	)	$	666.6
Intellectual property	938.3		(368.4		)	569.9		788.1		(332.7		)	455.4
Licenses	419.7		(222.1		)	197.6		419.5		(206.9		)	212.6
Brand names	125.8		(50.1		)	75.7		125.7		(46.5		)	79.2
Trade names	108.8		(16.6		)	92.2		98.7		(14.7		)	84.0
Patents and other	21.4		(12.4		)	9.0		27.1		(14.5		)	12.6
	2,715.8		(907.0		)	1,808.8		2,340.5		(830.1		)	1,510.4
Non-amortizable intangible assets:
Trade names	96.3		(2.1		)	94.2		96.3		(2.1		)	94.2
Total intangible assets	$	2,812.1	$	(909.1	)	$	1,903.0	$	2,436.8	$	(832.2	)	$	1,604.6

The following reflects intangible amortization expense included within D&A:



	Three Months Ended
	March 31,
	2018		2017
Amortization expense	$	77.1	$	61.9

Goodwill

Following the NYX acquisition, in the first quarter of 2018, we revised our operating segments as described in Note 3.

As a result of our resegmentation, we reviewed our operating segments in accordance with ASC 350 to determine if additional reporting units exist within our operating segments based on the availability of discrete financial information that is regularly reviewed by segment management. We determined that we have nine reporting units as of March 31, 2018: Instant Products, U.S. Lottery Systems, International Lottery Systems, SG Gaming, legacy U.K. Gaming, Casino Management Systems, Table Products, Social Gaming, and SG Digital. The change in our reporting units resulted in a reallocation of $116.9 million of Interactive reporting unit (reporting unit existent prior to the change) goodwill balance to the Social Gaming reporting unit with the remaining $7.5 million allocated to the SG Digital reporting unit, which allocation was determined based on a relative fair value approach in accordance with ASC 350.

The table below reconciles the change in the carrying value of goodwill by business segment for the period from

December 31, 2017 to March 31, 2018.



Goodwill	Gaming		Lottery		Interactive			Social		Digital		Totals
Balance as of December 31, 2017	$	2,475.5	$	356.2	$	124.4		$	—	$	—	$	2,956.1
Reporting unit reallocation adjustment	—		—		(124.4		)	116.9		7.5		—
Acquired goodwill ⁽¹⁾	—		—		—			—		376.4		376.4
Foreign currency adjustments	20.3		1.5		—			—		18.2		40.0
Balance as of March 31, 2018	$	2,495.8	$	357.7	$	—		$	116.9	$	402.1	$	3,372.5
(1) Tentative and preliminary based on our preliminary purchase price allocation as described in Note 1.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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