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Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries (Tables)
 12 Months Ended
Dec. 31, 2019
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries [Abstract]  
Supplemental Condensed Consolidating Balance Sheet
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET
As of December 31, 2019
 
SGC (Parent)
 
SGI (Issuer1)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
97

 
$
2

 
$
1

 
$
213

 
$
—

 
$
313

Restricted cash
—

 
1

 
40

 
10

 
—

 
51

Accounts receivable, net
—

 
91

 
221

 
337

 
—

 
649

Notes receivable, net
—

 
—

 
94

 
12

 
—

 
106

Inventories
—

 
53

 
113

 
87

 
(9
)
 
244

Prepaid expenses, deposits and other current assets
9

 
62

 
84

 
97

 
—

 
252

Property and equipment, net
31

 
95

 
197

 
209

 
(32
)
 
500

Operating lease right-of-use, net
1

 
24

 
30

 
50

 
—

 
105

Investment in subsidiaries
3,133

 
1,024

 
1,153

 
—

 
(5,310
)
 
—

Goodwill
—

 
240

 
1,897

 
1,143

 
—

 
3,280

Intangible assets, net
31

 
34

 
1,087

 
364

 
—

 
1,516

Intercompany balances
—

 
5,845

 
—

 
—

 
(5,845
)
 
—

Software, net
46

 
36

 
94

 
82

 
—

 
258

Other assets(2)
87

 
411

 
49

 
313

 
(325
)
 
535

Total assets
$
3,435

 
$
7,918

 
$
5,060

 
$
2,917

 
$
(11,521
)
 
$
7,809

Liabilities and stockholders’ (deficit) equity


 


 


 


 


 
 
Current portion of long-term debt
$
—

 
$
42

 
$
2

 
$
1

 
$
—

 
$
45

Other current liabilities
52

 
190

 
256

 
248

 
(25
)
 
721

Long-term debt, excluding current portion
—

 
8,673

 
7

 
—

 
—

 
8,680

Operating lease liabilities
1

 
19

 
25

 
43

 
—

 
88

Other long-term liabilities
52

 
22

 
547

 
179

 
(417
)
 
383

Intercompany balances
5,542

 
—

 
3

 
300

 
(5,845
)
 
—

Total SGC stockholders’ (deficit) equity
(2,212
)
 
(1,028
)
 
4,220

 
2,042

 
(5,234
)
 
(2,212
)
Noncontrolling interest
—

 
—

 
—

 
104

 
—

 
104

Total liabilities and stockholders’ (deficit) equity
$
3,435

 
$
7,918

 
$
5,060

 
$
2,917

 
$
(11,521
)
 
$
7,809

(1) Issuer of obligations under the 2020 Notes, which were redeemed in December 2019, the 2021 Notes, the 2022 Unsecured Notes, which were redeemed in April and December 2019, the 2025 Secured Notes, the 2026 Secured Euro Notes and 2026 Unsecured Euro Notes, the 2026 Unsecured Notes, which were issued in March 2019, and the 2028 Unsecured Notes and the 2029 Unsecured Notes, which were issued in November 2019.
(2) Includes $11 million in non-current restricted cash for Guarantor Subsidiaries.

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
)
 
—

Stockholders’ (deficit) equity
(2,463
)
 
(1,161
)
 
4,252

 
1,797

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

 
$
8,042

 
$
5,186

 
$
2,781

 
$
(11,449
)
 
$
7,718

 
 
 
 
 
 
 
 
 
 
 
 
(1) Issuer of obligations under the 2020 Notes, which were redeemed in December 2019, the 2021 Notes, the 2022 Secured Notes, which were redeemed in March 2018, the 2022 Unsecured Notes, which were redeemed in April and December 2019, the 2025 Secured Notes, which were issued in October 2017 and February 2018, and the 2026 Secured Euro Notes and 2026 Unsecured Euro Notes, which were issued in February 2018.
(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 Operations and Comprehensive Loss
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF
OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
Year Ended December 31, 2019
 
SGC (Parent)
 
SGI (Issuer1)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
$
—

 
$
590

 
$
1,538

 
$
1,648

 
$
(376
)
 
$
3,400

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

 
387

 
446

 
776

 
(325
)
 
1,284

Selling, general and administrative
132

 
35

 
223

 
360

 
(43
)
 
707

Research and development
—

 
5

 
86

 
97

 
—

 
188

Depreciation, amortization and impairments
53

 
40

 
392

 
180

 
(18
)
 
647

Restructuring and other
4

 
1

 
6

 
17

 
—

 
28

Operating (loss) income
(189
)
 
122

 
385

 
218

 
10

 
546

Interest expense
—

 
(588
)
 
—

 
(1
)
 
—

 
(589
)
Loss on debt financing transactions
—

 
(100
)
 
—

 
—

 
—

 
(100
)
Gain on remeasurement of debt
—

 
9

 
—

 
—

 
—

 
9

Other income (expense), net
191

 
586

 
(660
)
 
(91
)
 
—

 
26

Net income (loss) before equity in (loss) income of subsidiaries and income taxes
2

 
29

 
(275
)
 
126

 
10

 
(108
)
Equity in (loss) income of subsidiaries
(109
)
 
8

 
6

 
—


95

 
—

Income tax (expense) benefit
(23
)
 
(8
)
 
65

 
(44
)
 
—

 
(10
)
Net (loss) income
(130
)
 
29

 
(204
)
 
82

 
105

 
(118
)
Less: Net income attributable to noncontrolling interest
—

 
—

 
—

 
12

 
—

 
12

Net (loss) income attributable to SGC
$
(130
)
 
$
29

 
$
(204
)
 
$
70

 
$
105

 
$
(130
)
Net (loss) income
$
(130
)
 
$
29

 
$
(204
)
 
$
82

 
$
105

 
$
(118
)
Other comprehensive income (loss)
8

 
9

 
(2
)
 
(1
)
 
(6
)
 
8

Total comprehensive (loss) income
(122
)
 
38

 
(206
)
 
81

 
99

 
(110
)
Less: comprehensive income attributable to noncontrolling interest
—

 
—

 
—

 
12

 
—

 
12

Comprehensive (loss) income attributable to SGC
$
(122
)
 
$
38

 
$
(206
)
 
$
69

 
$
99

 
$
(122
)
 
(1) Issuer of obligations under the 2020 Notes, which were redeemed in December 2019, the 2021 Notes, the 2022 Unsecured Notes, which were redeemed in April and December 2019, the 2025 Secured Notes, the 2026 Secured Euro Notes and 2026 Unsecured Euro Notes, the 2026 Unsecured Notes, which were issued in March 2019, and the 2028 Unsecured Notes and the 2029 Unsecured Notes, which were issued in November 2019.
(2) Excludes D&A.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF
OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
Year Ended December 31, 2018

 
SGC (Parent)
 
SGI (Issuer1)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
$
—

 
$
547

 
$
1,654

 
$
1,540

 
$
(378
)
 
$
3,363

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

 
361

 
490

 
721

 
(317
)
 
1,255

Selling, general and administrative
154

 
42

 
227

 
326

 
(52
)
 
697

Research and development
—

 
3

 
87

 
112

 
—

 
202

Depreciation, amortization and impairments
44

 
33

 
440

 
188

 
(15
)
 
690

Restructuring and other
195

 
(1
)
 
9

 
50

 
—

 
253

Operating (loss) income
(393
)
 
109

 
401

 
143

 
6

 
266

Interest expense
—

 
(596
)
 
—

 
(1
)
 
—

 
(597
)
Loss on debt financing transactions
—

 
(93
)
 
—

 
—

 
—

 
(93
)
Gain on remeasurement of debt
—

 
43

 
—

 
—

 
—

 
43

Other income (expense), net
336

 
535

 
(745
)
 
(84
)
 
—

 
42

Net (loss) income before equity in (loss) income of subsidiaries and income taxes
(57
)
 
(2
)
 
(344
)
 
58

 
6

 
(339
)
Equity in (loss) income of subsidiaries
(219
)
 
44

 
(28
)
 
—

 
203

 
—

Income tax (expense) benefit
(76
)
 
—

 
82

 
(19
)
 
—

 
(13
)
Net (loss) income
$
(352
)
 
$
42

 
$
(290
)
 
$
39

 
$
209

 
$
(352
)
Other comprehensive (loss) income
(100
)
 
30

 
(66
)
 
(114
)
 
150

 
(100
)
Comprehensive (loss) income
$
(452
)
 
$
72

 
$
(356
)
 
$
(75
)
 
$
359

 
$
(452
)
 
(1) Issuer of obligations under the 2020 Notes, which were redeemed in December 2019, the 2021 Notes, the 2022 Secured Notes, which were redeemed in March 2018, the 2022 Unsecured Notes, which were redeemed in April and December 2019, the 2025 Secured Notes, which were issued in October 2017 and February 2018, and the 2026 Secured Euro Notes and 2026 Unsecured Euro Notes, which were issued in February 2018.
(2) Excludes D&A.


SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF
OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
Year Ended December 31, 2017
 
SGC (Parent)
 
SGI (Issuer1)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
$
—

 
$
498

 
$
1,684

 
$
1,223

 
$
(321
)
 
$
3,084

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

 
342

 
511

 
629

 
(318
)
 
1,164

Selling, general and administrative
127

 
41

 
244

 
250

 
(49
)
 
613

Research and development
2

 
7

 
101

 
74

 
—

 
184

Depreciation, amortization and impairments
72

 
31

 
463

 
128

 
(11
)
 
683

Restructuring and other
30

 
5

 
7

 
4

 
—

 
46

Operating (loss) income
(231
)
 
72

 
358

 
138

 
57

 
394

Interest expense
(5
)
 
(604
)
 
—

 
(1
)
 
—

 
(610
)
Loss on debt financing transactions
(1
)
 
(37
)
 
—

 
—

 
—

 
(38
)
Other income (expense), net
88

 
150

 
(185
)
 
(26
)
 
—

 
27

Net (loss) income before equity in income of subsidiaries and income taxes
(149
)
 
(419
)
 
173

 
111

 
57

 
(227
)
Equity in (loss) income of subsidiaries
(45
)
 
67

 
22

 
—

 
(44
)
 
—

Income tax (expense) benefit
(48
)
 
158

 
(86
)
 
(39
)
 
—

 
(15
)
Net (loss) income
$
(242
)
 
$
(194
)
 
$
109

 
$
72

 
$
13

 
$
(242
)
Other comprehensive income
134

 
10

 
66

 
129

 
(205
)
 
134

Comprehensive (loss) income
$
(108
)
 
$
(184
)
 
$
175

 
$
201

 
$
(192
)
 
$
(108
)
 
 
 
 
 
 
 
 
 
 
 
 
(1) Issuer of obligations under the 2020 Notes, which were redeemed in December 2019, the 2021 Notes, the 2022 Secured Notes, which were redeemed in March 2018, the 2022 Unsecured Notes, which were redeemed in April and December 2019, and the 2025 Secured Notes, which were issued in October 2017 and February 2018.
(2) Exclusive of D&A.
Supplemental Condensed Consolidating Statement of Cash Flows
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Year Ended December 31, 2019
 
SGC (Parent)
 
SGI (Issuer1)
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Net cash (used in) provided by operating activities
$
(57
)
 
$
173

 
$
109

 
$
320

 
$
1

 
$
546

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
  Capital expenditures
(22
)
 
(28
)
 
(112
)
 
(123
)
 
—

 
(285
)
Distributions of capital from equity investments
—

 
—

 
—

 
23

 
—

 
23

Additions to equity method investments
—

 
(1
)
 
—

 
—

 
—

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

 
289

 
—

 
—

 
(289
)
 
—

Net cash (used in) provided by investing activities
(22
)
 
260

 
(112
)
 
(100
)
 
(289
)
 
(263
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Payments on long-term debt, net of proceeds
—

 
(395
)
 
—

 
(2
)
 
—

 
(397
)
Payments of debt issuance and deferred financing costs
—

 
(34
)
 
—

 
(1
)
 
—

 
(35
)
Payments on license obligations
(27
)
 
(1
)
 
(10
)
 
(2
)
 
—

 
(40
)
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
—

 
—

 
—

 
(9
)
 
—

 
(9
)
Net redemptions of common stock under stock-based compensation plans and other
7

 
(2
)
 
(4
)
 
(2
)
 
—

 
(1
)
Other, principally change in intercompany financing activities
122

 
—

 
15

 
(426
)
 
289

 
—

Net cash provided by (used in) financing activities
102

 
(432
)
 
12

 
(100
)
 
289

 
(129
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
—

 
—

 
—

 
1

 
—

 
1

Increase in cash, cash equivalents and restricted cash
23

 
1

 
9

 
121

 
1

 
155

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

 
2

 
43

 
102

 
(1
)
 
220

Cash, cash equivalents and restricted cash, end of period
$
97

 
$
3

 
$
52

 
$
223

 
$
—

 
$
375

 
 
 
 
 
 
 
 
 
 
 
 
(1) Issuer of obligations under the 2020 Notes, which were redeemed in December 2019, the 2021 Notes, the 2022 Unsecured Notes, which were redeemed in April and December 2019, the 2025 Secured Notes, the 2026 Secured Euro Notes and 2026 Unsecured Euro Notes, the 2026 Unsecured Notes, which were issued in March 2019, and the 2028 Unsecured Notes and the 2029 Unsecured Notes, which were issued in November 2019.


SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Year Ended December 31, 2018

SGC (Parent)

SGI (Issuer1)

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

Eliminating
Entries

Consolidated
Net cash (used in) provided by operating activities
$
(221
)
 
$
18

 
$
206

 
$
341

 
$
2

 
$
346

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
  Capital expenditures
(35
)
 
(63
)
 
(146
)
 
(147
)
 
—

 
(391
)
Acquisitions of businesses and assets, net of cash acquired
—

 
—

 
(32
)
 
(265
)
 
—

 
(297
)
Proceeds from asset sales
—

 
—

 
40

 
—

 
—

 
40

Acquisitions and additions to equity method investments
—

 
(2
)
 
—

 
(178
)
 
—

 
(180
)
Distributions of capital from equity investments
—

 
—

 
—

 
30

 
—

 
30

Other, principally change in intercompany investing activities
—

 
(159
)
 
—

 
—

 
159

 
—

Net cash used in investing activities
(35
)
 
(224
)
 
(138
)
 
(560
)
 
159

 
(798
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Payments on long-term debt, net of proceeds
—

 
246

 
—

 
(8
)
 
—

 
238

Payments of assumed NYX debt and other acquisitions debt
—

 
—

 
(2
)
 
(288
)
 
—

 
(290
)
Payments of debt issuance and deferred financing costs
—

 
(38
)
 
—

 
—

 
—

 
(38
)
Payments on license obligations
(43
)
 
—

 
(2
)
 
—

 
—

 
(45
)
Net redemptions of common stock under stock-based compensation plans and other
(18
)
 
—

 
(3
)
 
—

 
—

 
(21
)
Other, principally change in intercompany financing activities
(342
)
 
—

 
(62
)
 
563

 
(159
)
 
—

Net cash (used in) provided by financing activities
(403
)
 
208

 
(69
)
 
267

 
(159
)
 
(156
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
—

 
—

 
—

 
(6
)
 
—

 
(6
)
(Decrease) increase in cash, cash equivalents and restricted cash
(659
)
 
2

 
(1
)
 
42

 
2

 
(614
)
Cash, cash equivalents, and restricted cash, beginning of period
733

 
—

 
44

 
60

 
(3
)
 
834

Cash, cash equivalents and restricted cash, end of period
$
74

 
$
2

 
$
43

 
$
102

 
$
(1
)
 
$
220

 
 
 
 
 
 
 
 
 
 
 
 
(1) Issuer of obligations under the 2020 Notes, which were redeemed in December 2019, the 2021 Notes, the 2022 Secured Notes, which were redeemed in March 2018, the 2022 Unsecured Notes, which were redeemed in April and December 2019, the 2025 Secured Notes, which were issued in October 2017 and February 2018, and the 2026 Secured Euro Notes and 2026 Unsecured Euro Notes, which were issued in February 2018.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Year Ended December 31, 2017
 
SGC (Parent1)
 
SGI (Issuer2)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Net cash (used in) provided by operating activities
$
(41
)
 
$
(300
)
 
$
567

 
$
283

 
$
(2
)
 
$
507

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
  Capital expenditures
(53
)
 
(31
)
 
(129
)
 
(81
)
 
—

 
(294
)
Acquisitions of businesses, net of cash acquired
—

 
—

 
(26
)
 
(32
)
 
—

 
(58
)
Acquisitions and additions to equity method investments
—

 
—

 
—

 
(107
)
 
—

 
(107
)
Distributions of capital on equity investments
—

 
—

 
—

 
34

 
—

 
34

Changes in other assets and liabilities and other
—

 
—

 
8

 
2

 
—

 
10

Other, principally change in intercompany investing activities
—

 
(569
)
 
—

 
(120
)
 
689

 
—

Net cash (used in) provided by investing activities
(53
)
 
(600
)
 
(147
)
 
(304
)
 
689

 
(415
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Net (payments) proceeds of long-term debt including senior notes and term loans
(250
)
 
958

 
—

 
(7
)
 
—

 
701

Payments of debt issuance and deferred financing costs
—

 
(59
)
 
—

 
—

 
—

 
(59
)
  Payments on license obligations
(48
)
 
—

 
(5
)
 
—

 
—

 
(53
)
Net redemptions of common stock under stock-based compensation plans and other
(8
)
 
—

 
(1
)
 
—

 
—

 
(9
)
Other, principally change in intercompany financing activities
1,100

 
—

 
(411
)
 
—

 
(689
)
 
—

Net cash provided by (used in) financing activities
794

 
899

 
(417
)
 
(7
)
 
(689
)
 
580

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

 
—

 
—

 
5

 
—

 
5

Increase (decrease) in cash, cash equivalents and restricted cash
700

 
(1
)
 
3

 
(23
)
 
(2
)
 
677

Cash, cash equivalents, and restricted cash, beginning of period
33

 
1

 
41

 
83

 
(1
)
 
157

Cash, cash equivalents and restricted cash, end of period
$
733

 
$
—

 
$
44

 
$
60

 
$
(3
)
 
$
834

 
 
 
 
 
 
 
 
 
 
 
 
(1) Issuer of obligations under the 2020 Notes, which were redeemed in December 2019, the 2021 Notes, the 2022 Secured Notes, which were redeemed in March 2018, the 2022 Unsecured Notes, which were redeemed in April and December 2019, and the 2025 Secured Notes, which were issued in October 2017 and February 2018.