XML 50 R38.htm IDEA: XBRL DOCUMENT v3.19.2
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries (Tables)
 6 Months Ended
Jun. 30, 2019
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, 2019
 
 
SGC (Parent)
 
SGI (Issuer1)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
235

 
$
—

 
$
—

 
$
141

 
$
(7
)
 
$
369

Restricted cash
 
—

 
1

 
35

 
8

 
—

 
44

Accounts receivable, net
 
—

 
100

 
195

 
321

 
—

 
616

Notes receivable, net
 
—

 
—

 
104

 
16

 
—

 
120

Inventories
 
—

 
47

 
99

 
103

 
(11
)
 
238

Prepaid expenses, deposits and other current assets
 
—

 
61

 
61

 
75

 
1

 
198

Property and equipment, net
 
34

 
96

 
231

 
204

 
(33
)
 
532

Operating lease right-of-use asset
 
1

 
25

 
33

 
54

 
—

 
113

Investment in subsidiaries
 
3,136

 
1,163

 
1,427

 
—

 
(5,726
)
 
—

Goodwill
 
—

 
240

 
1,897

 
1,142

 
—

 
3,279

Intangible assets, net
 
37

 
34

 
1,186

 
403

 
—

 
1,660

Intercompany balances
 
—

 
5,868

 
67

 
—

 
(5,935
)
 
—

Software, net
 
48

 
36

 
109

 
72

 
—

 
265

Other assets(2)
 
95

 
419

 
41

 
376

 
(433
)
 
498

Total assets
 
$
3,586

 
$
8,090

 
$
5,485

 
$
2,915

 
$
(12,144
)
 
$
7,932

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

 
$
42

 
$
2

 
$
1

 
$
—

 
$
45

Other current liabilities
 
52

 
173

 
242

 
255

 
(34
)
 
688

Long-term debt, excluding current portion
 
—

 
8,793

 
8

 
1

 
—

 
8,802

Operating lease liabilities
 
1

 
21

 
28

 
45

 
—

 
95

Other long-term liabilities
 
96

 
23

 
605

 
168

 
(472
)
 
420

Intercompany balances
 
5,649

 
—

 
—

 
286

 
(5,935
)
 
—

Total SGC stockholders’ (deficit) equity
 
(2,212
)
 
(962
)
 
4,600

 
2,065

 
(5,703
)
 
(2,212
)
Noncontrolling interest
 
—

 
—

 
—

 
94

 
—

 
94

Total liabilities and total stockholders’ (deficit) equity
 
$
3,586

 
$
8,090

 
$
5,485

 
$
2,915

 
$
(12,144
)
 
$
7,932

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Issuer of obligations under the Subordinated Notes, the Unsecured Notes and the Secured Notes.
(2) Includes $11 million and $1 million in non-current restricted cash for Guarantor Subsidiaries and Non-Guarantor Subsidiaries, respectively.
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET
As of December 31, 2018
 
 
SGC (Parent)
 
SGI (Issuer1)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
74

 
$
1

 
$
—

 
$
94

 
$
(1
)
 
$
168

Restricted cash
 
—

 
1

 
32

 
6

 
—

 
39

Accounts receivable, net
 
—

 
79

 
205

 
315

 
—

 
599

Notes receivable, net
 
—

 
—

 
101

 
13

 
—

 
114

Inventories
 
—

 
40

 
82

 
111

 
(17
)
 
216

Prepaid expenses, deposits and other current assets
 
6

 
63

 
92

 
72

 
—

 
233

Property and equipment, net
 
31

 
112

 
219

 
218

 
(33
)
 
547

Investment in subsidiaries
 
2,836

 
975

 
1,093

 
—

 
(4,904
)
 
—

Goodwill
 
—

 
240

 
1,897

 
1,143

 
—

 
3,280

Intangible assets, net
 
43

 
34

 
1,291

 
441

 
—

 
1,809

Intercompany balances
 
—

 
6,054

 
—

 
—

 
(6,054
)
 
—

Software, net
 
58

 
39

 
128

 
60

 
—

 
285

Other assets(2)
 
110

 
404

 
46

 
308

 
(440
)
 
428

Total assets
 
$
3,158

 
$
8,042

 
$
5,186

 
$
2,781

 
$
(11,449
)
 
$
7,718

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

 
$
42

 
$
—

 
$
3

 
$
—

 
$
45

Other current liabilities
 
64

 
162

 
248

 
254

 
(26
)
 
702

Long-term debt, excluding current portion
 
—

 
8,991

 
—

 
1

 
—

 
8,992

Other long-term liabilities
 
106

 
8

 
637

 
172

 
(481
)
 
442

Intercompany balances
 
5,451

 
—

 
49

 
554

 
(6,054
)
 
—

Total SGC stockholders’ (deficit) equity
 
(2,463
)
 
(1,161
)
 
4,252

 
1,797

 
(4,888
)
 
(2,463
)
Total liabilities and total stockholders’ (deficit) equity
 
$
3,158

 
$
8,042

 
$
5,186

 
$
2,781

 
$
(11,449
)
 
$
7,718

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Issuer of obligations under the Subordinated Notes, the Unsecured Notes (other than the 2026 Unsecured Notes, which were not issued until March 2019) and the Secured Notes.
(2) Includes $12 million and $1 million in non-current restricted cash for Guarantor Subsidiaries and Non-Guarantor Subsidiaries, respectively.
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, 2019
 
 
SGC (Parent)
 
SGI (Issuer1)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
 
$
—

 
$
147

 
$
358

 
$
407

 
$
(67
)
 
$
845

Cost of services, cost of product sales and cost of instant products(2)
 
—

 
94

 
108

 
176

 
(57
)
 
321

SG&A
 
31

 
9

 
48

 
94

 
(8
)
 
174

R&D
 
—

 
1

 
19

 
26

 
—

 
46

D&A
 
12

 
13

 
104

 
45

 
(4
)
 
170

Restructuring and other
 
1

 
1

 
1

 
3

 
—

 
6

Operating (loss) income
 
(44
)
 
29

 
78

 
63

 
2

 
128

Interest expense
 
—

 
(147
)
 
—

 
—

 
—

 
(147
)
Loss on debt financing transactions
 
—

 
(60
)
 
—

 
—

 
—

 
(60
)
Loss on remeasurement of debt
 
—

 
(3
)
 
—

 
—

 
—

 
(3
)
Other income (expense), net
 
16

 
131

 
(119
)
 
(14
)
 
—

 
14

Net (loss) income before equity in income of subsidiaries and income taxes
 
(28
)
 
(50
)
 
(41
)
 
49

 
2

 
(68
)
Equity in (loss) income of subsidiaries
 
(30
)
 
2

 
12

 
—

 
16

 
—

Income tax (expense) benefit
 
(19
)
 
14

 
9

 
(11
)
 
—

 
(7
)
Net (loss) income
 
(77
)
 
(34
)
 
(20
)
 
38

 
18

 
(75
)
Less: Net income attributable to noncontrolling interest
 
—

 
—

 
—

 
2

 
—

 
2

Net (loss) income attributable to SGC
 
$
(77
)
 
$
(34
)
 
$
(20
)
 
$
36

 
$
18

 
$
(77
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income
 
$
(77
)
 
$
(34
)
 
$
(20
)
 
$
38

 
$
18

 
$
(75
)
Other comprehensive loss
 
(51
)
 
(15
)
 
(3
)
 
(66
)

84


(51
)
Total comprehensive loss
 
(128
)
 
(49
)
 
(23
)
 
(28
)
 
102

 
(126
)
Less: comprehensive income attributable to noncontrolling interest
 
—

 
—

 
—

 
2

 
—

 
2

Comprehensive loss attributable to SGC
 
$
(128
)
 
$
(49
)
 
$
(23
)
 
$
(30
)
 
$
102

 
$
(128
)
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Issuer of obligations under the Subordinated Notes, the Unsecured Notes and the Secured Notes.
(2) Excludes D&A.
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF
OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
Three Months Ended June 30, 2018
 
 
SGC (Parent)
 
SGI (Issuer1)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
 
$
—

 
$
136

 
$
405

 
$
376

 
$
(72
)
 
$
845

Cost of services, cost of product sales and cost of instant products (2)
 
—

 
86

 
132

 
159

 
(61
)
 
316

SG&A
 
44

 
9

 
51

 
83

 
(13
)
 
174

R&D
 
—

 
1

 
22

 
26

 
—

 
49

D&A
 
12

 
7

 
107

 
50

 
(3
)
 
173

Restructuring and other
 
30

 
(3
)
 
2

 
5

 
—

 
34

Operating (loss) income
 
(86
)
 
36

 
91

 
53

 
5

 
99

Interest expense
 
—

 
(146
)
 
—

 
—

 
—

 
(146
)
Gain on remeasurement of debt
 
—

 
34

 
—

 
—

 
—

 
34

Other income (expense), net
 
17

 
132

 
(119
)
 
(23
)
 
—

 
7

Net (loss) income before equity in income of subsidiaries and income taxes
 
(69
)
 
56

 
(28
)
 
30

 
5

 
(6
)
Equity in income (loss) of subsidiaries
 
26

 
13

 
(17
)
 
—

 
(22
)
 
—

Income tax benefit (expense)
 
37

 
(26
)
 
(4
)
 
(7
)
 
—

 
—

Net (loss) income
 
$
(6
)
 
$
43

 
$
(49
)
 
$
23

 
$
(17
)
 
$
(6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss) income
 
(83
)
 
30

 
(36
)
 
(119
)
 
125

 
(83
)
Comprehensive (loss) income
 
$
(89
)
 
$
73

 
$
(85
)
 
$
(96
)
 
$
108

 
$
(89
)
(1) Issuer of obligations under the Subordinated Notes, the Unsecured Notes (other than the 2026 Unsecured Notes, which were not issued until March 2019) and the Secured Notes.
(2) Excludes 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, 2019
 
 
SGC (Parent)
 
SGI (Issuer1)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Net cash (used in) provided by operating activities
 
$
(35
)
 
$
55

 
$
101

 
$
147

 
$
(6
)
 
$
262

Cash flows from investing activities:
 
 

 
 

 
 

 
 

 
 

 
 
Capital expenditures
 
(9
)
 
(16
)
 
(56
)
 
(51
)
 
—

 
(132
)
Distributions of capital from equity investments
 
—

 
—

 
—

 
18

 
—

 
18

Additions to equity method investments
 
—

 
(1
)
 
—

 
—

 
—

 
(1
)
Other, principally change in intercompany investing activities
 
—

 
228

 
(52
)
 
—

 
(176
)
 
—

Net cash (used in) provided by investing activities
 
(9
)
 
211

 
(108
)
 
(33
)
 
(176
)
 
(115
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
Payments of long-term debt, net of proceeds
 
—

 
(251
)
 
—

 
(2
)
 
—

 
(253
)
Payments of debt issuance and deferred financing costs
 
—

 
(14
)
 
—

 
(1
)
 
—

 
(15
)
Payments on license obligations
 
(13
)
 
—

 
—

 
—

 
—

 
(13
)
Sale of future revenue
 
—

 
—

 
11

 
—

 
—

 
11

Net proceeds from the sale of SciPlay common stock
 
—

 
—

 
—

 
342

 
—

 
342

Payments of deferred SciPlay common stock offering costs
 
—

 
—

 
—

 
(8
)
 
—

 
(8
)
Net redemptions of common stock under stock-based compensation plans and other
 
(1
)
 
(2
)
 
(2
)
 
(2
)
 
—

 
(7
)
Other, principally change in intercompany financing activities
 
219

 
—

 
—

 
(395
)
 
176

 
—

Net cash provided by (used in) financing activities
 
205

 
(267
)
 
9

 
(66
)
 
176

 
57

Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
—

 
—

 
—

 
1

 
—

 
1

Increase (decrease) in cash, cash equivalents and restricted cash
 
161

 
(1
)
 
2

 
49

 
(6
)
 
205

Cash, cash equivalents and restricted cash, beginning of period
 
74

 
2

 
44

 
101

 
(1
)
 
220

Cash, cash equivalents and restricted cash, end of period
 
$
235

 
$
1

 
$
46

 
$
150

 
$
(7
)
 
$
425

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Issuer of obligations under the Subordinated Notes, the Unsecured Notes and the Secured Notes.
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Six Months Ended June 30, 2018

 
 
SGC (Parent)
 
SGI (Issuer1)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Net cash (used in) provided by operating activities
 
$
(51
)
 
$
(59
)
 
$
85

 
$
164

 
$
(7
)
 
$
132

Cash flows from investing activities:
 
 

 
 

 
 

 
 

 
 

 
 
Capital expenditures
 
(22
)
 
(46
)
 
(89
)
 
(43
)
 
—

 
(200
)
Acquisitions of businesses and assets, net of cash acquired
 
—

 
—

 
(10
)
 
(264
)
 
—

 
(274
)
Distributions of capital from equity investments
 
—

 
—

 
—

 
23

 
—

 
23

Additions to equity method investments
 
—

 
(1
)
 
—

 
(74
)
 
—

 
(75
)
Other, principally change in intercompany investing activities
 
—

 
48

 
—

 
—

 
(48
)
 
—

Net cash (used in) provided by investing activities
 
(22
)
 
1

 
(99
)
 
(358
)
 
(48
)
 
(526
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds net of payments on long-term debt
 
—

 
97

 
—

 
(4
)
 
—

 
93

Repayment of assumed NYX debt
 
—

 
—

 
—

 
(288
)
 
—

 
(288
)
Payments of debt issuance and deferred financing costs
 
—

 
(39
)
 
—

 
—

 
—

 
(39
)
Payments on license obligations
 
(14
)
 
—

 
—

 
—

 
—

 
(14
)
Net redemptions of common stock under stock-based compensation plans and other
 
(19
)
 
—

 
(2
)
 
—

 
—

 
(21
)
Other, principally change in intercompany financing activities
 
(581
)
 
—

 
15

 
518

 
48

 
—

Net cash (used in) provided by financing activities
 
(614
)
 
58

 
13

 
226

 
48

 
(269
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
—

 
—

 
—

 
(3
)
 
—

 
(3
)
(Decrease) increase in cash, cash equivalents and restricted cash
 
(687
)
 
—

 
(1
)
 
29

 
(7
)
 
(666
)
Cash, cash equivalents and restricted cash, beginning of period
 
733

 
—

 
44

 
60

 
(3
)
 
834

Cash, cash equivalents and restricted cash end of period
 
$
46

 
$
—

 
$
43

 
$
89

 
$
(10
)
 
$
168

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Issuer of obligations under the Subordinated Notes, the Unsecured Notes (other than the 2026 Unsecured Notes, which were not issued until March 2019) and the Secured Notes.