Restructuring Plans

9 Months Ended

Sep. 30, 2012

Gaming segment

In January 2012, following a comprehensive strategic review, we announced our exit from the Barcrest analog 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 Limited business to more effectively capitalize on the Barcrest acquisition. We recorded approximately $1,500 of employee termination and restructuring costs associated with the reorganization in the three months ended September 30, 2012, including approximately $1,100 resulting from vacating additional facilities. We recorded approximately $6,000 of employee termination and restructuring costs associated with the reorganization in the nine months ended September 30, 2012. We currently do not expect to incur additional material costs or accelerated depreciation related to this reorganization.

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. During the third quarter of 2012, we migrated printing for our customers in this region to our other manufacturing facilities. We recorded approximately $300 and $4,800 of employee termination and other restructuring costs associated with the reorganization for the three and nine months ended September 30, 2012, respectively. In addition, we recorded approximately $1,900 and $3,400 of accelerated depreciation for equipment related to this reorganization for the three and nine months ended September 30, 2012, respectively. We currently do not expect to incur additional material costs or accelerated depreciation related to this reorganization.

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



	Employee termination costs			Other restructuring costs			Total
Balance as of December 31, 2011	$	—		$	—		$	—
Restructuring costs additions	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

Restructuring cost additions	485			1,345			1,830
Cash Payments	(70		)	(206		)	(276		)
Balance as of September 30, 2012	$	3,510		$	2,777		$	6,287

- 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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