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Business Segments
 3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Business Segments
Business Segments
We report our operations in four business segments—Gaming, Lottery, Social and Digital—representing our different products and services. A detailed discussion regarding the products and services from which each reportable business segment derives its revenue is included in Notes 2 and 3 in our 2018 10-K.
In evaluating financial performance, our Chief Operating Decision Maker focuses on AEBITDA as management’s segment measure of profit or loss, which is described in Note 3 in our 2018 10-K. As a result of the on-going initial public offering of a minority interest in our Social gaming business, which was subsequently completed during the second quarter of 2019, we changed our calculation of Social business segment AEBITDA beginning with the first quarter of 2019. Social business segment AEBITDA now reflects intercompany charges settled in cash for corporate services and certain royalties paid for by our Social business segment to other segments or to Corporate (included in the “Unallocated and Reconciling Items” column in the tables below). Business segment information for the three months ended March 31, 2018 has been recast to reflect these changes. Additionally, see Note 1 for a description of the IP License Agreement executed in conjunction with the SciPlay IPO that will impact our Gaming business segment and Social business segment AEBITDA commencing with the effectiveness of the IP License Agreement as of May 7, 2019. The accounting policies of our business segments are the same as those described within the Notes in our 2018 10-K. The following tables present our segment information:
 
Three Months Ended March 31, 2019
 
Gaming
 
Lottery
 
Social(2)
 
Digital
 
Unallocated and Reconciling Items(1)
 
Total
Total revenue
$
422

 
$
227

 
$
118

 
$
70

 
$
—

 
$
837

AEBITDA
215

 
104

 
25

 
13

 
(29
)
 
$
328

Reconciling items to consolidated net loss before income taxes:
D&A
(112
)
 
(19
)
 
(2
)
 
(19
)
 
(13
)
 
(165
)
Restructuring and other
(2
)
 
—

 
(1
)
 
(3
)
 
(1
)
 
(7
)
EBITDA from equity investments
 
 
 
 
 
 
 
 
(17
)
 
(17
)
Earnings from equity investments
 
 
 
 
 
 
 
 
6

 
6

Interest expense
 
 
 
 
 
 
 
 
(154
)
 
(154
)
Gain on remeasurement of debt
 
 
 
 
 
 
 
 
5

 
5

Other expense, net
 
 
 
 
 
 
 
 
(2
)
 
(2
)
Stock-based compensation
 
 
 
 
 
 
 
 
(14
)
 
(14
)
Net loss before income taxes
 
 
 
 
 
 
 
 
 
 
$
(20
)
(1) Includes amounts not allocated to the business segments (including corporate costs) and reconciling items to reconcile the total business segments AEBITDA to our consolidated net loss before income taxes.
(2) Our Social business segment information represents SciPlay operations (see Note 1), and starting with the second quarter of 2019 we will refer to our Social business segment as SciPlay.


 
Three Months Ended March 31, 2018
 
Gaming
 
Lottery
 
Social(2)
 
Digital
 
Unallocated and Reconciling Items(1)
 
Total
Total revenue
$
443

 
$
202

 
$
97

 
$
70

 
$
—

 
$
812

AEBITDA
218

 
94

 
23

 
17

 
(32
)
 
$
320

Reconciling items to consolidated net loss before income taxes:
D&A
(139
)
 
(14
)
 
(7
)
 
(16
)
 
(12
)
 
(188
)
Restructuring and other
(1
)
 
(1
)
 
(18
)
 
(6
)
 
(26
)
 
(52
)
EBITDA from equity investments
 
 
 
 
 
 
 
 
(19
)
 
(19
)
Earnings from equity investments
 
 
 
 
 
 
 
 
7

 
7

Interest expense
 
 
 
 
 
 
 
 
(155
)
 
(155
)
Loss on debt financing transactions
 
 
 
 
 
 
 
 
(93
)
 
(93
)
Loss on remeasurement of debt
 
 
 
 
 
 
 
 
(1
)
 
(1
)
Other expense, net
 
 
 
 
 
 
 
 
(6
)
 
(6
)
Stock-based compensation
 
 
 
 
 
 
 
 
(9
)
 
(9
)
Net loss before income taxes
 
 
 
 
 
 
 
 
 
 
$
(196
)
(1) Includes amounts not allocated to the business segments (including corporate costs) and reconciling items to reconcile the total business segments AEBITDA to our consolidated net loss before income taxes.
(2) Our Social business segment information represents SciPlay operations (see Note 1), and starting with the second quarter of 2019 we will refer to our Social business segment as SciPlay.