Business and Geographic Segments (Tables)

12 Months Ended

Dec. 31, 2012

The following tables set forth revenue, cost of revenue, selling, general and administrative expenses, write-down of assets held for sale, employee termination and restructuring costs, depreciation and amortization, operating income, capital, lottery

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share amounts)

(2) Business and Geographic Segments (Continued)

and gaming systems expenditures and assets for the years ended (or at) December 31, 2012, 2011 and 2010, 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.



	Year Ended December 31, 2012
	Printed Products		Lottery Systems		Gaming			Totals
Revenue:
Instant tickets	$	493,642	$	—	$	—		$	493,642
Services	—		209,585		142,732			352,317
Sales	11,526		62,092		21,025			94,643
Total revenue	505,168		271,677		163,757			940,602
Cost of instant tickets (1)	282,548		—		—			282,548
Cost of services (1)	—		113,918		67,190			181,108
Cost of sales (1)	7,569		40,275		17,209			65,053
Selling, general and administrative expenses	45,617		26,376		31,659			103,652
Employee termination and restructuring costs	5,852		—		5,650			11,502
Depreciation and amortization	40,953		54,474		77,345			172,772
Segment operating income (loss)	$	122,629	$	36,634	$	(35,296	)	$	123,967
Unallocated corporate costs								85,759
Consolidated operating income								$	38,208
Assets at December 31, 2012	$	949,462	$	726,119	$	474,002
Unallocated assets at December 31, 2012								37,325
Consolidated assets at December 31, 2012								$	2,186,908
Capital, lottery and gaming systems expenditures	$	26,382	$	52,410	$	29,715		$	108,507

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(1)	Exclusive of depreciation and amortization.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share amounts)

(2) Business and Geographic Segments (Continued)



	Year Ended December 31, 2011
	Printed Products		Lottery Systems		Gaming		Totals
Revenue:
Instant tickets	$	493,275	$	—	$	—	$	493,275
Services	—		205,801		125,900		331,701
Sales	9,664		36,528		7,554		53,746
Total revenue	502,939		242,329		133,454		878,722
Cost of instant tickets (1)	281,565		—		—		281,565
Cost of services (1)	—		109,016		62,358		171,374
Cost of sales (1)	5,928		25,134		7,278		38,340
Selling, general and administrative expenses	49,269		23,713		16,408		89,390
Employee termination and restructuring costs	—		—		1,997		1,997
Depreciation and amortization	32,746		46,891		38,435		118,072
Segment operating income	$	133,431	$	37,575	$	6,978	$	177,984
Unallocated corporate costs							94,163
Consolidated operating income							$	83,821
Assets at December 31, 2011	$	922,890	$	727,168	$	498,609
Unallocated assets at December 31, 2011							13,244
Consolidated assets at December 31, 2011							$	2,161,911
Capital, lottery and gaming systems expenditures	$	22,120	$	47,766	$	19,888	$	89,774

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(1)	Exclusive of depreciation and amortization.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share amounts)

(2) Business and Geographic Segments (Continued)



	Year Ended December 31, 2010
	Printed Products		Lottery Systems		Gaming			Totals
Revenue:
Instant tickets	$	465,090	$	—	$	—		$	465,090
Services	—		199,439		163,699			363,138
Sales	9,222		36,597		8,452			54,271
Total revenue	474,312		236,036		172,151			882,499
Cost of instant tickets (1)	270,787		—		—			270,787
Cost of services (1)	—		104,274		101,760			206,034
Cost of sales (1)	6,981		25,716		5,348			38,045
Selling, general and administrative expenses	46,894		22,973		20,518			90,385
Write-down of assets held for sale	—		—		8,029			8,029
Employee termination and restructuring costs	—		—		602			602
Depreciation and amortization	33,303		64,979		42,983			141,265
Segment operating income (loss)	$	116,347	$	18,094	$	(7,089	)	$	127,352
Unallocated corporate costs								68,616
Consolidated operating income								$	58,736
Assets at December 31, 2010	$	947,736	$	756,593	$	429,003
Unallocated assets at December 31, 2010								18,206
Consolidated assets at December 31, 2010								$	2,151,538
Capital, lottery and gaming systems expenditures	$	19,351	$	47,679	$	41,488		$	108,518

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(1)	Exclusive of depreciation and amortization.

Reconciliation of reportable segment operating income to income (loss) before income taxes

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



	Years Ended December 31,
	2012			2011			2010
Reported segment operating income	$	123,967		$	177,984		$	127,352
Unallocated corporate costs	(85,759		)	(94,163		)	(68,616		)
Consolidated operating income	38,208			83,821			58,736
Interest expense	(100,008		)	(104,703		)	(101,613		)
Earnings from equity investments	28,073			29,391			49,090
Loss on early extinguishment of debt	(15,464		)	(4,185		)	(2,932		)
Other income (expense), net	1,185			(911		)	(8,594		)
Net (loss) income before income tax expense	$	(48,006	)	$	3,413		$	(5,313	)

Schedule of the service and sales revenue by customer location and long-lived assets by geographic segment

The following represents revenue by customer location and long-lived assets by geographic segment:



	Years Ended December 31,
	2012		2011		2010
Revenue:
United States	$	445,175	$	425,665	$	470,639
North America, other than United States	66,068		58,103		66,526
United Kingdom	175,776		136,286		87,029
Europe (1)	187,591		183,063		178,578
Other	65,992		75,605		79,727
Total (2)	$	940,602	$	878,722	$	882,499

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share amounts)

(2) Business and Geographic Segments (Continued)



	As of December 31,
	2012		2011
Long-lived assets (excluding identifiable intangibles):
United States	$	192,706	$	205,868
North America, other than United States	46,516		40,981
United Kingdom	65,807		92,849
Europe (1)	25,058		28,902
Other	46,790		57,888
Total (3)	$	376,877	$	426,488

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(1)	Excluding United Kingdom.


(2)	Total revenue from international customers for the years ended December 31, 2012, 2011 and 2010 was $495,427, $453,057 and $411,860, respectively.


(3)	Total long-lived assets held outside the United States as of December 31, 2012 and 2011 was $184,171 and $220,620, respectively.

- Definition

Tabular disclosure of all significant reconciling items in the reconciliation of total profit or loss from reportable segments, to the entity's consolidated income before income taxes, extraordinary items, and discontinued operations.

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- Definition

Tabular disclosure of information concerning material long-lived assets (excluding financial instruments, customer relationships with financial institutions, mortgage and other servicing rights, deferred policy acquisition costs, and deferred taxes assets) located in identified geographic areas and/or the amount of revenue from external customers attributed to that country from which revenue is material. An entity may also provide subtotals of geographic information about groups of countries.

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- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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