Reportable Segment Information

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Reportable Segment Information

Reportable Segment Information

We report our operations in three business segments: Printed Products; Lottery Systems; and Gaming.

    The following tables set forth financial information for the three months ended March 31, 2012 and 2011, respectively, by reportable segments. Corporate expenses and corporate depreciation and amortization are not allocated to the reportable segments and are presented as unallocated corporate costs.

	Three Months Ended March 31, 2012
	Printed Products		Lottery Systems		Gaming		Total
Revenue:
Instant tickets	$	123,324	$	—	$	—	$	123,324
Services	—		53,006		37,280		90,286
Sales	2,163		11,471		7,331		20,965
Total revenue	125,487		64,477		44,611		234,575
Cost of instant tickets (1)	69,963		—		—		69,963
Cost of services (1)	—		29,359		16,500		45,859
Cost of sales (1)	1,410		7,955		7,562		16,927
Selling, general and administrative expenses	11,015		7,053		6,108		24,176
Employee termination and restructuring costs	—		—		2,875		2,875
Depreciation and amortization	8,003		11,798		10,568		30,369
Segment operating income	$	35,096	$	8,312	$	998	$	44,406
Unallocated corporate costs							(22,145		)
Consolidated operating income							$	22,261

(1) Exclusive of depreciation and amortization.

	Three Months Ended March 31, 2011
	Printed Products		Lottery Systems		Gaming			Total
Revenue:
Instant tickets	$	113,860	$	—	$	—		$	113,860
Services	—		49,216		24,531			73,747
Sales	1,770		7,173		106			9,049
Total revenue	115,630		56,389		24,637			196,656
Cost of instant tickets (1)	67,233		—		—			67,233
Cost of services (1)	—		25,968		12,954			38,922
Cost of sales (1)	1,006		4,649		35			5,690
Selling, general and administrative expenses	10,380		4,272		2,926			17,578
Depreciation and amortization	8,360		11,367		11,048			30,775
Segment operating income (loss)	$	28,651	$	10,133	$	(2,326	)	$	36,458
Unallocated corporate costs								(22,105		)
Consolidated operating income								$	14,353

(1) Exclusive of depreciation and amortization.

The following table provides a reconciliation of reportable segment operating income to income (loss) before income taxes for each period:

	Three Months Ended
	March 31,
	2012			2011
Reported segment operating income	$	44,406		$	36,458
Unallocated corporate costs	(22,145		)	(22,105		)
Consolidated operating income	22,261			14,353
Interest expense	24,898			26,455
Earnings from equity investments	(8,845		)	(9,350		)
Other	(478		)	(994		)
Net income (loss) before income taxes	$	6,686		$	(1,758	)

In evaluating financial performance, we focus on operating income as a segment’s measure of profit or loss. Segment operating income is income before other (income) expense, net, interest expense, earnings from equity investments, unallocated corporate expenses and income taxes. The accounting policies of the reportable segments are the same as those described in our summary of significant accounting policies (see Note 1 of the Notes to Consolidated Financial Statements in our 2011 Annual Report on Form 10-K).