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Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries (Tables)
 12 Months Ended
Dec. 31, 2012
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries [Abstract]  
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2011
(in thousands)

 
 
Parent Company
 
SGI
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
24,042

 
$
56

 
$
—

 
$
81,482

 
$
(1,178
)
 
$
104,402

Accounts receivable, net
 
—

 
53,531

 
41,238

 
87,698

 
—

 
182,467

Inventories
 
—

 
23,714

 
16,884

 
39,144

 
—

 
79,742

Note receivable
 
—

 
—

 
—

 
—

 
—

 
—

Other current assets
 
8,699

 
3,409

 
5,117

 
21,720

 
—

 
38,945

Property and equipment, net
 
3,522

 
166,637

 
36,028

 
220,301

 
—

 
426,488

Investment in subsidiaries
 
551,256

 
721,909

 
—

 
909,379

 
(2,182,544
)
 
—

Goodwill
 
—

 
273,656

 
78,618

 
416,119

 
—

 
768,393

Intangible assets, net
 
—

 
41,520

 
25,849

 
19,490

 
—

 
86,859

Intercompany balances
 
125,440

 
—

 
231,357

 
—

 
(356,797
)
 
—

Other assets
 
17,002

 
82,748

 
12,265

 
368,701

 
(6,101
)
 
474,615

Total assets
 
$
729,961

 
$
1,367,180

 
$
447,356

 
$
2,164,034

 
$
(2,546,620
)
 
$
2,161,911

Liabilities and stockholders' equity
 
 
 
 
 
 
 
 
 
 
 
 
Current installments of long-term debt
 
$
—

 
$
6,280

 
$
—

 
$
19,911

 
$
—

 
$
26,191

Other current liabilities
 
31,231

 
56,050

 
30,140

 
94,692

 
(1,211
)
 
210,902

Long-term debt, excluding current installments
 
250,000

 
1,104,884

 
—

 
9,592

 
—

 
1,364,476

Other non-current liabilities
 
5,016

 
38,772

 
13,427

 
59,413

 
—

 
116,628

Intercompany balances
 
—

 
71,603

 
—

 
285,162

 
(356,765
)
 
—

Stockholders' equity
 
443,714

 
89,591

 
403,789

 
1,695,264

 
(2,188,644
)
 
443,714

Total liabilities and stockholders' equity
 
$
729,961

 
$
1,367,180

 
$
447,356

 
$
2,164,034

 
$
(2,546,620
)
 
$
2,161,911

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2012
(in thousands)
 
 
Parent Company
 
SGI
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
27,159

 
$
201

 
$
—

 
$
82,834

 
$
(1,179
)
 
$
109,015

Accounts receivable, net
 
—

 
63,944

 
29,156

 
117,045

 
—

 
210,145

Restricted Cash
 
—

 
—

 
—

 
30,398

 
—

 
30,398

Inventories
 
—

 
25,411

 
16,063

 
29,781

 
—

 
71,255

Note receivable
 
10,298

 


 
—

 
—

 
—

 
10,298

Other current assets
 
9,693

 
3,809

 
6,773

 
33,507

 
—

 
53,782

Property and equipment, net
 
5,727

 
154,243

 
32,957

 
183,950

 
—

 
376,877

Investment in subsidiaries
 
520,969

 
802,425

 
—

 
855,801

 
(2,179,195
)
 
—

Goodwill
 
—

 
253,928

 
76,741

 
470,429

 
—

 
801,098

Intangible assets, net
 
—

 
42,000

 
20,367

 
21,924

 
—

 
84,291

Intercompany balances
 
79,735

 
—

 
302,396

 
—

 
(382,131
)
 
—

Other assets
 
6,479

 
74,923

 
7,507

 
353,455

 
(2,615
)
 
439,749

Total assets
 
$
660,060

 
$
1,420,884

 
$
491,960

 
$
2,179,124

 
$
(2,565,120
)
 
$
2,186,908

Liabilities and stockholders' equity
 
 
 
 
 
 
 
 
 
 
 
 
Current installments of long-term debt
 
$
—

 
$
6,280

 
$
—

 
$
10,178

 
$
—

 
$
16,458

Other current liabilities
 
28,485

 
58,473

 
35,436

 
118,682

 
(1,187
)
 
239,889

Long-term debt, excluding current installments
 
250,000

 
1,199,247

 
—

 
2,461

 
—

 
1,451,708

Other non-current liabilities
 
16,784

 
25,560

 
12,174

 
59,544

 
—

 
114,062

Intercompany balances
 
—

 
136,402

 
—

 
245,748

 
(382,150
)
 
—

Stockholders' equity
 
364,791

 
(5,078
)
 
444,350

 
1,742,511

 
(2,181,783
)
 
364,791

Total liabilities and stockholders' equity
 
$
660,060

 
$
1,420,884

 
$
491,960

 
$
2,179,124

 
$
(2,565,120
)
 
$
2,186,908
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME
Year Ended December 31, 2012
(in thousands)
 
 
Parent
Company
 
SGI
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
 
$
—

 
$
421,944

 
$
45,003

 
$
478,128

 
$
(4,473
)
 
$
940,602

Cost of instant ticket revenue, cost of services and cost of sales (1)
 
—

 
136,254

 
138,517

 
262,791

 
(8,853
)
 
528,709

Selling, general and administrative expenses
 
65,048

 
55,986

 
12,157

 
58,782

 
(3,160
)
 
188,813

Employee termination and restructuring costs
 
—

 
—

 
—

 
11,502

 
—

 
11,502

Depreciation and amortization
 
598

 
36,670

 
23,965

 
112,137

 
—

 
173,370

Operating (loss) income
 
(65,646
)
 
193,034

 
(129,636
)
 
32,916

 
7,540

 
38,208

Interest expense
 
(21,223
)
 
(77,575
)
 
—

 
(1,210
)
 
—

 
(100,008
)
Other income (expense)
 
29,009

 
(193,019
)
 
170,193

 
15,151

 
(7,540
)
 
13,794

Net (loss) income before equity in income of subsidiaries, and income taxes
 
(57,860
)
 
(77,560
)
 
40,557

 
46,857

 
—

 
(48,006
)
Equity in income (loss) of subsidiaries
 
(60,490
)
 
39,991

 
—

 
—

 
20,499

 
—

Income tax expense
 
(55,723
)
 
58,319

 
—

 
12,025

 
—

 
14,621

Net (loss) income
 
(62,627
)
 
(95,888
)
 
40,557

 
34,832

 
20,499

 
(62,627
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
 
29,840

 
1,062

 
—

 
28,661

 
(29,723
)
 
29,840

Comprehensive (loss) income
 
$
(32,787
)
 
$
(94,826
)
 
$
40,557

 
$
63,493

 
$
(9,224
)
 
$
(32,787
)
_______________________________________________________________________________

(1)
Exclusive of depreciation and amortization.
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME
Year Ended December 31, 2011
(in thousands)
 
 
Parent
Company
 
SGI
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
 
$
—

 
$
395,007

 
$
59,426

 
$
425,729

 
$
(1,440
)
 
$
878,722

Cost of instant ticket revenue, cost of services and cost of sales (1)
 
—

 
130,166

 
140,230

 
225,400

 
(4,517
)
 
491,279

Selling, general and administrative expenses
 
61,537

 
52,655

 
10,235

 
58,623

 
(28
)
 
183,022

Employee termination and restructuring costs
 
—

 
—

 
—

 
1,997

 
—

 
1,997

Depreciation and amortization
 
531

 
29,854

 
19,000

 
69,218

 
—

 
118,603

Operating (loss) income
 
(62,068
)
 
182,332

 
(110,039
)
 
70,491

 
3,105

 
83,821

Interest expense
 
(21,487
)
 
(81,536
)
 
—

 
(1,680
)
 
—

 
(104,703
)
Other income (expense)
 
17,200

 
(184,604
)
 
173,990

 
20,814

 
(3,105
)
 
24,295

Net (loss) income before equity in income of subsidiaries, and income taxes
 
(66,355
)
 
(83,808
)
 
63,951

 
89,625

 
—

 
3,413

Equity in income (loss) of subsidiaries
 
55,352

 
64,691

 
—

 
—

 
(120,043
)
 
—

Income tax expense
 
1,567

 
(522
)
 
11

 
14,927

 
—

 
15,983

Net (loss) income
 
(12,570
)
 
(18,595
)
 
63,940

 
74,698

 
(120,043
)
 
(12,570
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss) income
 
(15,290
)
 
2,972

 
—

 
(17,316
)
 
14,344

 
(15,290
)
Comprehensive (loss) income
 
$
(27,860
)
 
$
(15,623
)
 
$
63,940

 
$
57,382

 
$
(105,699
)
 
$
(27,860
)
_______________________________________________________________________________

(1)
Exclusive of depreciation and amortization.
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME
Year Ended December 31, 2010
(in thousands)
 
 
Parent
Company
 
SGI
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
 
$
—

 
$
378,523

 
$
52,344

 
$
453,118

 
$
(1,486
)
 
$
882,499

Cost of instant ticket revenue, cost of services and cost of sales (1)
 
—

 
120,771

 
140,467

 
255,254

 
(1,626
)
 
514,866

Selling, general and administrative expenses
 
46,922

 
53,711

 
10,831

 
46,860

 
176

 
158,500

Write-down of assets held for sale
 
—

 
—

 
—

 
8,029

 
—

 
8,029

Employee termination and restructuring costs
 
—

 
—

 
—

 
602

 
—

 
602

Depreciation and amortization
 
501

 
53,696

 
18,337

 
69,232

 
—

 
141,766

Operating (loss) income
 
(47,423
)
 
150,345

 
(117,291
)
 
73,141

 
(36
)
 
58,736

Interest expense
 
(16,817
)
 
(82,005
)
 
—

 
(2,791
)
 
—

 
(101,613
)
Other (expense) income
 
(12,198
)
 
(164,573
)
 
202,489

 
11,810

 
36

 
37,564

Net (loss) income before equity in income of subsidiaries, and income taxes
 
(76,438
)
 
(96,233
)
 
85,198

 
82,160

 
—

 
(5,313
)
Equity in income (loss) of subsidiaries
 
19,167

 
81,454

 
—

 
—

 
(100,621
)
 
—

Income tax expense
 
91,930

 
15,849

 
12

 
36,097

 
—

 
143,888

Net (loss) income
 
(149,201
)
 
(30,628
)
 
85,186

 
46,063

 
(100,621
)
 
(149,201
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss) income
 
(14,943
)
 
1,290

 
2,468

 
(14,044
)
 
10,286

 
(14,943
)
Comprehensive (loss) income
 
$
(164,144
)
 
$
(29,338
)
 
$
87,654

 
$
32,019

 
$
(90,335
)
 
$
(164,144
)
_______________________________________________________________________________

(1)
Exclusive of depreciation and amortization.
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Year Ended December 31, 2010
(in thousands)
 
 
Parent
Company
 
SGI
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Net (loss) income
 
$
(149,201
)
 
$
(30,628
)
 
$
85,186

 
$
46,063

 
$
(100,621
)
 
$
(149,201
)
Depreciation and amortization
 
501

 
53,696

 
18,337

 
69,232

 
—

 
141,766

Change in deferred income taxes
 
58,650

 
17,963

 
(730
)
 
48,260

 
—

 
124,143

Equity in income of subsidiaries
 
(19,167
)
 
(81,454
)
 
—

 
—

 
100,621

 
—

Non-cash interest expense
 
886

 
6,277

 
—

 
—

 
—

 
7,163

Undistributed earnings from equity investments
 
—

 
(7,576
)
 
(764
)
 
(6,339
)
 
—

 
(14,679
)
Stock-based compensation
 
22,807

 
—

 
—

 
—

 
—

 
22,807

Early extinguishment of debt
 
2,260

 
672

 
—

 
—

 
—

 
2,932

Restructuring and write-down of assets
 
3,532

 
985

 
—

 
5,922

 
(2,049
)
 
8,390

Changes in working capital and other
 
6,223

 
22,256

 
(2,783
)
 
1,527

 
29

 
27,252

Net cash provided by (used in) operating activities
 
(73,509
)
 
(17,809
)
 
99,246

 
164,665

 
(2,020
)
 
170,573

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
Capital and wagering systems expenditures
 
(101
)
 
(25,325
)
 
(4,357
)
 
(42,495
)
 
—

 
(72,278
)
Investments in subsidiaries
 
(57,163
)
 
(59,609
)
 
—

 
(160,938
)
 
277,710

 
—

Equity method investments
 
—

 
(3,817
)
 
(343
)
 
(199,635
)
 
—

 
(203,795
)
Proceeds from sale of Racing Business
 
35,942

 
—

 
—

 
—

 
—

 
35,942

Business acquisitions, net of cash acquired
 
—

 
—

 
(6,556
)
 
(5,937
)
 
—

 
(12,493
)
Other assets and investments
 
28,936

 
(14,813
)
 
(13,338
)
 
(35,741
)
 
(5
)
 
(34,961
)
Net cash provided by (used in) investing activities
 
7,614

 
(103,564
)
 
(24,594
)
 
(444,746
)
 
277,705

 
(287,585
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
Net proceeds/payments on long-term debt
 
52,982

 
31,135

 
—

 
(52,429
)
 
—

 
31,688

Excess tax benefit from equity-based compensation plans
 
435

 
—

 
—

 
67

 
—

 
502

Payments of financing fees
 
(6,686
)
 
(6,969
)
 
—

 
—

 
—

 
(13,655
)
Net proceeds from stock issue
 
(1,995
)
 
103,940

 
4,879

 
166,844

 
(275,663
)
 
(1,995
)
Purchase of treasury stock
 
(26,335
)
 
—

 
—

 
—

 
—

 
(26,335
)
Other, principally intercompany balances
 
(40,019
)
 
(6,465
)
 
(80,531
)
 
126,860

 
155

 
—

Net cash provided by (used in) financing activities
 
(21,618
)
 
121,641

 
(75,652
)
 
241,342

 
(275,508
)
 
(9,795
)
Effect of exchange rate changes on cash
 
2,930

 
(253
)
 
—

 
(11,543
)
 
(177
)
 
(9,043
)
Increase (decrease) in cash and cash equivalents
 
(84,583
)
 
15

 
(1,000
)
 
(50,282
)
 
—

 
(135,850
)
Cash and cash equivalents, beginning of period
 
$
147,220

 
$
137

 
$
3,278

 
$
109,496

 
$
—

 
$
260,131

Cash and cash equivalents, end of year
 
$
62,637

 
$
152

 
$
2,278

 
$
59,214

 
$
—

 
$
124,281

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Year Ended December 31, 2011
(in thousands)


Parent
Company

SGI

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

Eliminating
Entries

Consolidated
Net (loss) income

$
(12,570
)

$
(18,595
)

$
63,940


$
74,698


$
(120,043
)

$
(12,570
)
Depreciation and amortization

531


29,854


19,000


69,218


—


118,603

Change in deferred income taxes

3,960


4,301


(9,320
)

978


—


(81
)
Equity in income of subsidiaries

(55,351
)

(64,692
)

—


—


120,043


—

Non-cash interest expense

720


7,387


—


—


—


8,107

Undistributed earnings from equity investments

—


22,918


1,581


(21,828
)

3,105


5,776

Stock-based compensation

21,538


—


—


—


—


21,538

Early extinguishment of debt

—


4,185


—


—


—


4,185

Changes in working capital and other

10,125


27,241


(7,895
)

(786
)

(3,165
)

25,520

Net cash provided by (used in) operating activities

(31,047
)

12,599


67,306


122,280


(60
)

171,078

Cash flows from investing activities:

 

 

 

 

 

 
Capital and wagering systems expenditures

(2,110
)

(37,044
)

(13,660
)

(39,070
)

—


(91,884
)
Investments in subsidiaries

—


13,552


—


(473,220
)

459,668


—

Equity method investments

—


(11,092
)

(1,072
)

(7,229
)

—


(19,393
)
Business acquisitions, net of cash acquired

—


—


—


(52,953
)

—


(52,953
)
Other assets and investments

2,683


(75
)

217


266


—


3,091

Net cash provided by (used in) investing activities

573


(34,659
)

(14,515
)

(572,206
)

459,668


(161,139
)
Cash flows from financing activities:

 

 

 

 

 

 
Net proceeds/payments on long-term debt

—


(6,280
)

—


(1,526
)

—


(7,806
)
Tax effect from equity-based compensation plans

—


—


—


139


—


139

Payments of financing fees

(122
)

(14,498
)

—


—


—


(14,620
)
Net proceeds from stock issue

(2,354
)

—


28


459,393


(459,421
)

(2,354
)
Purchase of treasury stock

—


—


—


—


—


—

Other, principally intercompany balances

(4,925
)

44,298


(52,719
)

13,147


199


—

Net cash provided by (used in) financing activities

(7,401
)

23,520


(52,691
)

471,153


(459,222
)

(24,641
)
Effect of exchange rate changes on cash

(721
)

(1,555
)

—


(2,515
)

(386
)

(5,177
)
Increase (decrease) in cash and cash equivalents

(38,596
)

(95
)

100


18,712


—


(19,879
)
Cash and cash equivalents, beginning of period

$
62,637


$
152


$
2,278


$
59,214


$
—


$
124,281

Cash and cash equivalents, end of year

$
24,041


$
57


$
2,378


$
77,926


$
—


$
104,402

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Year Ended December 31, 2012
(in thousands)
 
 
Parent
Company
 
SGI
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Net (loss) income
 
$
(62,627
)
 
$
(95,888
)
 
$
40,557

 
$
34,832

 
$
20,499

 
$
(62,627
)
Depreciation and amortization
 
598

 
36,670

 
23,965

 
112,137

 
—

 
173,370

Change in deferred income taxes
 
(46,399
)
 
61,748

 
(9,320
)
 
1,848

 
—

 
7,877

Equity in income of subsidiaries
 
60,490

 
(39,991
)
 
—

 
—

 
(20,499
)
 
—

Non-cash interest expense
 
730

 
7,058

 
—

 
—

 
—

 
7,788

Undistributed earnings from equity investments
 
—

 
2,564

 
5,225

 
(2,168
)
 
4,380

 
10,001

Stock-based compensation
 
24,159

 
—

 
—

 
—

 
—

 
24,159

Early extinguishment of debt
 
—

 
15,464

 
—

 
—

 
—

 
15,464

Changes in working capital and other
 
2,508

 
(9,696
)
 
6,545

 
(14,284
)
 
(4,355
)
 
(19,282
)
Net cash provided by (used in) operating activities
 
(20,541
)
 
(22,071
)
 
66,972

 
132,365

 
25

 
156,750

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
Capital and wagering systems expenditures
 
(2,824
)
 
(30,174
)
 
(17,039
)
 
(61,295
)
 
—

 
(111,332
)
Investments in subsidiaries
 
—

 
(37,142
)
 
—

 
85,422

 
(48,280
)
 
—

Equity method investments
 
—

 
1,003

 
156

 
23,732

 
—

 
24,891

Restricted Cash
 
—

 
—

 
—

 
(29,401
)
 
—

 
(29,401
)
Business acquisitions, net of cash acquired
 
—

 
(1,000
)
 
—

 
(23,824
)
 
—

 
(24,824
)
Other assets and investments
 
(418
)
 
(126
)
 
—

 
(632
)
 
—

 
(1,176
)
Net cash (used in) investing activities
 
(3,242
)
 
(67,439
)
 
(16,883
)
 
(5,998
)
 
(48,280
)
 
(141,842
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
Net proceeds/payments on long-term debt
 
—

 
93,720

 
—

 
(17,050
)
 
—

 
76,670

Tax effect from equity-based compensation plans
 
31

 
—

 
—

 
362

 
—

 
393

Payments of financing fees
 
—

 
(14,002
)
 
—

 
—

 
—

 
(14,002
)
Net proceeds from stock issue
 
(4,713
)
 
—

 
—

 
(48,315
)
 
48,314

 
(4,714
)
Purchase of treasury stock
 
(68,457
)
 
—

 
—

 
—

 
—

 
(68,457
)
Other, principally intercompany balances
 
100,042

 
9,862

 
(50,089
)
 
(59,757
)
 
(58
)
 
—

Net cash provided by (used in) financing activities
 
26,903

 
89,580

 
(50,089
)
 
(124,760
)
 
48,256

 
(10,110
)
Effect of exchange rate changes on cash
 
—

 
74

 
—

 
(259
)
 
—

 
(185
)
Increase (decrease) in cash and cash equivalents
 
3,120

 
144

 
—

 
1,348

 
1

 
4,613

Cash and cash equivalents, beginning of period
 
24,041

 
57

 
2,378

 
77,926

 
—

 
104,402

Cash and cash equivalents, end of year
 
$
27,161

 
$
201

 
$
2,378

 
$
79,274

 
$
1

 
$
109,015