Reportable Segment Information

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2012 and 2011 by reportable segments. Corporate expenses and corporate depreciation and amortization are not allocated to the reportable segments and are presented as unallocated corporate expenses.

	Three Months Ended June 30, 2012
	Printed Products		Lottery Systems		Gaming			Total
Revenue:
Instant tickets	$	119,627	$	—	$	—		$	119,627
Services	—		51,114		37,521			88,635
Sales	3,082		13,506		4,457			21,045
Total revenue	122,709		64,620		41,978			229,307
Cost of instant tickets (1)	68,420		—		—			68,420
Cost of services (1)	—		26,963		18,310			45,273
Cost of sales (1)	1,991		8,729		3,518			14,238
Selling, general and administrative	11,844		6,198		7,878			25,920
Employee termination and restructuring	4,507		—		1,539			6,046
Depreciation and amortization	12,813		12,278		13,845			38,936
Segment operating income (loss)	$	23,134	$	10,452	$	(3,112	)	$	30,474
Unallocated corporate expenses								(21,401		)
Consolidated operating income								$	9,073

(1) Exclusive of depreciation and amortization.

	Three Months Ended June 30, 2011
	Printed Products		Lottery Systems		Gaming		Total
Revenue:
Instant tickets	$	130,419	$	—	$	—	$	130,419
Services	—		51,196		30,900		82,096
Sales	2,087		5,634		12		7,733
Total revenue	132,506		56,830		30,912		220,248
Cost of instant tickets (1)	72,133		—		—		72,133
Cost of services (1)	—		26,220		15,240		41,460
Cost of sales (1)	1,238		4,123		—		5,361
Selling, general and administrative	13,112		5,524		3,636		22,272
Depreciation and amortization	8,208		11,879		8,789		28,876
Segment operating income	$	37,815	$	9,084	$	3,247	$	50,146
Unallocated corporate expenses							(21,282		)
Consolidated operating income							$	28,864

(1) Exclusive of depreciation and amortization.

	Six Months Ended June 30, 2012
	Printed Products		Lottery Systems		Gaming			Total
Revenue:
Instant tickets	$	242,951	$	—	$	—		$	242,951
Services	—		104,120		74,801			178,921
Sales	5,245		24,977		11,788			42,010
Total revenue	248,196		129,097		86,589			463,882
Cost of instant tickets (1)	138,383		—		—			138,383
Cost of services (1)	—		56,322		34,810			91,132
Cost of sales (1)	3,401		16,684		11,080			31,165
Selling, general and administrative	22,859		13,251		13,986			50,096
Employee termination and restructuring	4,507		—		4,414			8,921
Depreciation and amortization	20,816		24,076		24,413			69,305
Segment operating income (loss)	$	58,230	$	18,764	$	(2,114	)	$	74,880
Unallocated corporate expenses								(43,546		)
Consolidated operating income								$	31,334

(1) Exclusive of depreciation and amortization.

	Six Months Ended June 30, 2011
	Printed Products		Lottery Systems		Gaming		Total
Revenue:
Instant tickets	$	244,279	$	—	$	—	$	244,279
Services	—		100,412		55,431		155,843
Sales	3,857		12,807		118		16,782
Total revenue	248,136		113,219		55,549		416,904
Cost of instant tickets (1)	139,366		—		—		139,366
Cost of services (1)	—		52,188		28,194		80,382
Cost of sales (1)	2,244		8,772		35		11,051
Selling, general and administrative	23,492		9,796		6,562		39,850
Depreciation and amortization	16,568		23,246		19,837		59,651
Segment operating income	$	66,466	$	19,217	$	921	$	86,604
Unallocated corporate expenses							(43,387		)
Consolidated operating income							$	43,217

(1) Exclusive of depreciation and amortization.

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Reported segment operating income	$	30,474		$	50,146		$	74,880		$	86,604
Unallocated corporate expenses	(21,401		)	(21,282		)	(43,546		)	(43,387		)
Consolidated operating income	9,073			28,864			31,334			43,217
Interest expense	24,185			26,409			49,083			52,864
Earnings from equity investments	(6,915		)	(9,224		)	(15,760		)	(18,574		)
Other	1,108			(876		)	630			(1,870		)
Net (loss) income before income taxes	$	(9,305	)	$	12,555		$	(2,619	)	$	10,797

In evaluating financial performance, we focus on operating income as a segment’s measure of profit or loss. Segment operating income is income before unallocated corporate expenses, interest expense, earnings from equity investments, other income (expense) and income taxes. The accounting policies of the reportable segments are the same as those described in our summary of significant accounting policies.