Restructuring Plans

6 Months Ended

Jun. 30, 2012

Gaming segment

In January 2012, following a comprehensive strategic review, we announced our exit from the Barcrest analog amusement with prize terminal business in order to focus our game design and other resources solely on our digital server-based supply model. We also reorganized the Games Media business to more effectively capitalize on the Barcrest acquisition. We recorded approximately $1,500 and $4,400 of employee termination and restructuring costs associated with the reorganization for the three and six months ended June 30, 2012, respectively. We currently expect to incur additional restructuring costs of approximately $1,500 during the remainder of 2012, related to the reorganization as we vacate additional facilities as part of the integration of Barcrest.

Printed Products segment

Following a strategic review of our Printed Products business, we commenced a reorganization plan on April 18, 2012 to cease all printing and finishing activities at our Australia facility during the second half of 2012 and begin printing instant tickets for customers in this region at our other manufacturing plants. In the three months ended June 30, 2012, we recorded approximately $4,500 of employee termination and other restructuring costs associated with these actions.

We do not expect to incur additional material employee termination or other restructuring costs related to this reorganization. In addition, we recorded approximately $1,500 of accelerated depreciation for equipment related to this reorganization during the three months ended June 30, 2012 and currently expect to record approximately $1,900 of additional accelerated depreciation expense during the remainder of 2012.

A summary of the employee termination and other restructuring costs recognized for the six months ended June 30, 2012 is set forth below:



	Employee termination costs			Other restructuring costs			Total
Balance as of December 31, 2011	$	—		$	—		$	—
Restructuring costs	2,797			78			2,875
Cash Payments	(1,901		)	—			(1,901		)
Balance as of March 31, 2012	896			78			974

Restructuring cost additions	4,098			1,948			6,046
Cash Payments	(1,899		)	(388		)	(2,287		)
Balance as of June 30, 2012	$	3,095		$	1,638		$	4,733

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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