Stockholders' Equity

12 Months Ended

Dec. 31, 2012

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders' Equity

Preferred Stock

As of December 31, 2012, we had a total of 2,000 shares of preferred stock, $1.00 par value per share, authorized for issuance, including 229 authorized shares of Series A convertible preferred stock and 1 authorized share of Series B preferred stock. No shares of preferred stock are currently outstanding.

Common Stock

We have two classes of common stock, consisting of Class A common stock and Class B non-voting common stock. All shares of Class A common stock and Class B common stock entitle holders to the same rights and privileges except that the Class B common stock is non-voting. Each share of Class B common stock is convertible into one share of Class A common stock. As of December 31, 2012 and 2011, there were 700 shares of Class B common stock authorized and none outstanding.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share amounts)

(15) Stockholders' Equity (Continued)

The following sets forth the change in the number of shares of Class A common stock outstanding during the fiscal years ended December 31, 2012 and 2011:

	December 31,
	2012		2011
Shares outstanding as of beginning of period	92,433		91,725
Shares issued as part of equity-based compensation plans and the ESPP, net of shares surrendered	1,119		708
Shares repurchased into treasury stock	(9,157	)	—
Shares outstanding as of end of period	84,395		92,433

Warrants

On December 15, 2006, we entered into a licensing agreement with Hasbro, Inc. for the use of certain Hasbro brands in multiple lottery platforms. Under the terms of the agreement, in February 2007, we issued to Hasbro warrants to purchase 40 shares of our Class A common stock at a purchase price of $32.98 per share. The warrants expired on February 28, 2012. The fair value of the warrants on the date of grant was $480.

Treasury Stock

On December 6, 2012, our Board of Directors approved an extension of our existing stock repurchase program to December 31, 2013. The program, originally announced in May 2010, was due to expire on December 31, 2012. Under the program, we are authorized to repurchase, from time to time through open market purchases or otherwise, shares of our outstanding common stock in an aggregate amount up to $200,000. During fiscal year 2012, we repurchased 9,157 shares at an aggregate cost of approximately $68,500. As of December 31, 2012, we had approximately $105,240 available for potential repurchases under the program. Purchases in 2012 were funded by cash flows from operations, borrowings, or a combination thereof.

There were no shares purchased as part of the publicly announced repurchase program for the year ended December 31, 2011. As of December 31, 2011, we had approximately $173,697 remaining for purchases under the program.