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Business Segments
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Business Segments Business Segments
We report our operations in four business segments—Gaming, Lottery, SciPlay 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 IPO of a minority interest in our Social gaming business, which was completed on May 7, 2019, we now refer to our Social business segment as our SciPlay business segment, and we also changed our calculation of SciPlay business segment AEBITDA beginning with the first quarter of 2019. SciPlay business segment AEBITDA now reflects intercompany charges settled in cash for corporate services and certain royalties paid for by our SciPlay 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 and nine months ended September 30, 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 impacts our Gaming business segment and SciPlay 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 September 30, 2019
 
Gaming
 
Lottery
 
SciPlay
 
Digital
 
Unallocated and Reconciling Items(1)
 
Total
Total revenue
$
454

 
$
220

 
$
116

 
$
65

 
$
—

 
$
855

AEBITDA
226

 
99

 
32

 
17

 
(30
)
 
$
344

Reconciling items to consolidated net income before income taxes:
D&A
(110
)
 
(14
)
 
(1
)
 
(18
)
 
(19
)
 
(162
)
Restructuring and other
(5
)
 
—

 
—

 
(5
)
 
(1
)
 
(11
)
EBITDA from equity investments
 
 
 
 
 
 
 
 
(15
)
 
(15
)
Earnings from equity investments
 
 
 
 
 
 
 
 
4

 
4

Interest expense
 
 
 
 
 
 
 
 
(146
)
 
(146
)
Gain on remeasurement of debt
 
 
 
 
 
 
 
 
19

 
19

Other expense, net
 
 
 
 
 
 
 
 
(9
)
 
(9
)
Stock-based compensation
 
 
 
 
 
 
 
 
(9
)
 
(9
)
Net income before income taxes
 
 
 
 
 
 
 
 
 
 
$
15

(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 income before income taxes.


 
Three Months Ended September 30, 2018
 
Gaming
 
Lottery
 
SciPlay
 
Digital
 
Unallocated and Reconciling Items(1)
 
Total
Total revenue
$
448

 
$
207

 
$
105

 
$
61

 
$
—

 
$
821

AEBITDA
233

 
92

 
24

 
12

 
(35
)
 
$
326

Reconciling items to consolidated net loss before income taxes:
D&A
(120
)
 
(15
)
 
(2
)
 
(16
)
 
(13
)
 
(166
)
Restructuring and other
(4
)
 
(3
)
 
(9
)
 
(4
)
 
(319
)
 
(339
)
EBITDA from equity investments
 
 
 
 
 
 
 
 
(14
)
 
(14
)
Earnings from equity investments
 
 
 
 
 
 
 
 
4

 
4

Interest expense
 
 
 
 
 
 
 
 
(147
)
 
(147
)
Loss on remeasurement of debt
 
 
 
 
 
 
 
 
(4
)
 
(4
)
Other expense, net
 
 
 
 
 
 
 
 
(2
)
 
(2
)
Stock-based compensation
 
 
 
 
 
 
 
 
(10
)
 
(10
)
Net loss before income taxes
 
 
 
 
 
 
 
 
 
 
$
(352
)
(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.


 
Nine Months Ended September 30, 2019
 
Gaming
 
Lottery
 
SciPlay
 
Digital
 
Unallocated and Reconciling Items(1)
 
Total
Total revenue
$
1,303

 
$
678

 
$
353

 
$
203

 
$
—

 
$
2,537

AEBITDA(2)
656

 
306

 
90

 
42

 
(87
)
 
$
1,007

Reconciling items to consolidated net loss before income taxes:
D&A
(336
)
 
(53
)
 
(5
)
 
(56
)
 
(47
)
 
(497
)
Restructuring and other
(9
)
 
(1
)
 
(2
)
 
(9
)
 
(3
)
 
(24
)
EBITDA from equity investments
 
 
 
 
 
 
 
 
(50
)
 
(50
)
Earnings from equity investments
 
 
 
 
 
 
 
 
17

 
17

Interest expense
 
 
 
 
 
 
 
 
(447
)
 
(447
)
Loss on debt refinancing transactions
 
 
 
 
 
 
 
 
(60
)
 
(60
)
Gain on remeasurement of debt
 
 
 
 
 
 
 
 
21

 
21

Other expense, net
 
 
 
 
 
 
 
 
(7
)
 
(7
)
Stock-based compensation
 
 
 
 
 
 
 
 
(33
)
 
(33
)
Net loss before income taxes
 
 
 
 
 
 
 
 
 
 
$
(73
)
(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) Gaming AEBITDA decreased and SciPlay AEBITDA increased compared to prior periods as IP charges are no longer charged to SciPlay per the IP License Agreement discussed in Note 1. The nine months ended September 30, 2019 includes $10 million in such IP charges paid by the SciPlay business segment.

 
Nine Months Ended September 30, 2018
 
Gaming
 
Lottery
 
SciPlay
 
Digital
 
Unallocated and Reconciling Items(1)
 
Total
Total revenue
$
1,362

 
$
616

 
$
302

 
$
198

 
$
—

 
$
2,478

AEBITDA
686

 
286

 
70

 
42

 
(98
)
 
$
986

Reconciling items to consolidated net loss before income taxes:
D&A
(380
)
 
(43
)
 
(15
)
 
(49
)
 
(40
)
 
(527
)
Restructuring and other
(7
)
 
—

 
(28
)
 
(14
)
 
(375
)
 
(424
)
EBITDA from equity investments
 
 
 
 
 
 
 
 
(49
)
 
(49
)
Earnings from equity investments
 
 
 
 
 
 
 
 
16

 
16

Interest expense
 
 
 
 
 
 
 
 
(448
)
 
(448
)
Loss on debt financing transactions
 
 
 
 
 
 
 
 
(93
)
 
(93
)
Gain on remeasurement of debt
 
 
 
 
 
 
 
 
29

 
29

Other expense, net
 
 
 
 
 
 
 
 
(9
)
 
(9
)
Stock-based compensation
 
 
 
 
 
 
 
 
(34
)
 
(34
)
Net loss before income taxes
 
 
 
 
 
 
 
 
 
 
$
(553
)
(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.