Acquisitions and Dispositions (Tables)

12 Months Ended

Dec. 31, 2012

Acquisitions and Dispositions

Estimated fair values of the assets acquired and liabilities assumed at the acquisition date based on a preliminary purchase price allocation

Subsequent to the filing of our 2011 Annual Report on Form 10-K, we adjusted the estimated fair values of certain of the assets acquired as part of our acquisition of Barcrest on September 23, 2011 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized as of that date. The adjustments resulted in an increase in goodwill of approximately $2,040, an increase in other assets of approximately $1,490, a decrease in inventory of approximately $1,970, a decrease in the current portion of deferred income taxes of approximately $1,090 and a decrease in prepaid expenses, deposits and other current assets of approximately $470. We have applied the adjustment retrospectively to the Consolidated Balance Sheet as of December 31, 2011.

The following table summarizes the adjusted fair values of the assets acquired and liabilities assumed at the acquisition date based on a final purchase price allocation:

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share amounts)

(3) Acquisitions and Dispositions (Continued)

At September 23, 2011
Cash and cash equivalents	$	1,900
Accounts receivable, net of allowance of doubtful accounts of approximately $2,000 as of September 23, 2011	22,600
Inventories	7,500
Prepaid expenses, deposits and other current assets	1,800
Property and equipment	14,500
Deferred income taxes	100
Other long-term assets	2,500
Intangible assets	12,000
Total identifiable assets acquired	62,900
Accounts payable	7,700
Accrued liabilities	11,100
Long-term deferred income tax liabilities	2,100
Net identifiable assets acquired	42,000
Goodwill	6,400
Net assets acquired	$	48,400

Unaudited pro forma revenue and net (loss), Barcrest acquisition

As required by ASC 805, Business Combinations, set forth below is our unaudited pro forma revenue and net loss for the years ended December 31, 2010 and 2011, as if the acquisition of Barcrest had occurred on January 1, 2010.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share amounts)

(3) Acquisitions and Dispositions (Continued)

	Years Ended December 31,
	2011		2010
Revenue from Consolidated Statements of Operations and Comprehensive Income	$	878,722	$	882,499
Add: Barcrest revenue not reflected in Consolidated Statements of Operations and Comprehensive Income plus pro forma adjustments (1)	43,210		53,447
Unaudited pro forma revenue	$	921,932	$	935,946

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(1) Pro forma adjustment made to eliminate intercompany revenue and costs of approximately $3,200 and $500 for the years ended December 31, 2011 and 2010, respectively.

	Years Ended December 31,
	2011			2010
Net (loss) from Consolidated Statements of Operations and Comprehensive Income	$	(12,570	)	$	(149,201	)
Add: Barcrest net income not reflected in Consolidated Statements of Operations and Comprehensive Income plus pro forma adjustments (1) (2)	2,518			6,641
Unaudited pro forma net loss	$	(10,052	)	$	(142,560	)

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(1) Pro forma adjustment made to capitalize development costs in accordance with the Company's accounting policies, including approximately $1,700 for each of the years ended December 31, 2011 and 2010.

(2) Pro forma adjustment made to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied on January 1, 2010, including approximately $2,300 and $2,200 for the years ended December 31, 2011 and 2010, respectively.