Reportable Segment Information

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Reportable Segment Information

Reportable Segment Information

We report our operations in three business segments: Printed Products, Lottery Systems and Gaming.

    The following tables set forth financial information for the three months ended March 31, 2013 and 2012, respectively, by reportable segments which represent the Company's continuing operations. Corporate expenses and corporate depreciation and amortization are not allocated to the reportable segments and are presented as unallocated corporate costs. See Note 2 of the Notes to Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for the impact of our discontinued operations on the results of our Gaming segment for the three months ended March 31, 2013 and 2012.

	Three Months Ended March 31, 2013
	Printed Products		Lottery Systems		Gaming			Total
Revenue:
Instant tickets	$	122,813	$	—	$	—		$	122,813
Services	—		50,032		31,735			81,767
Sales	3,474		8,161		3,373			15,008
Total revenue	126,287		58,193		35,108			219,588
Cost of instant tickets (1)	68,194		—		—			68,194
Cost of services (1)	—		29,258		16,975			46,233
Cost of sales (1)	2,443		5,729		2,119			10,291
Selling, general and administrative expenses	12,474		7,538		7,586			27,598
Employee termination and restructuring costs	331		—		—			331
Depreciation and amortization	8,972		13,758		9,879			32,609
Segment operating income (loss) from continuing operations	$	33,873	$	1,910	$	(1,451	)	$	34,332
Unallocated corporate costs								23,203
Consolidated operating income from continuing operations								$	11,129

(1) Exclusive of depreciation and amortization.

	Three Months Ended March 31, 2012
	Printed Products		Lottery Systems		Gaming		Total
Revenue:
Instant tickets	$	123,324	$	—	$	—	$	123,324
Services	—		53,006		33,899		86,905
Sales	2,163		11,471		7,331		20,965
Total revenue	125,487		64,477		41,230		231,194
Cost of instant tickets (1)	69,963		—		—		69,963
Cost of services (1)	—		29,359		13,944		43,303
Cost of sales (1)	1,410		7,955		7,562		16,927
Selling, general and administrative expenses	11,015		7,053		5,234		23,302
Employee termination and restructuring costs	—		—		2,304		2,304
Depreciation and amortization	8,003		11,798		8,518		28,319
Segment operating income from continuing operations	$	35,096	$	8,312	$	3,668	$	47,076
Unallocated corporate costs							22,145
Consolidated operating income from continuing operations							$	24,931

(1) Exclusive of depreciation and amortization.

The following table provides a reconciliation of reportable segment operating income from continuing operations to net income (loss) from continuing operations before income taxes for each period:

	Three Months Ended
	March 31,
	2013			2012
Reportable segment operating income from continuing operations	$	34,332		$	47,076
Unallocated corporate costs	(23,203		)	(22,145		)
Consolidated operating income from continuing operations	11,129			24,931
Interest expense	(25,008		)	(24,898		)
Earnings from equity investments	6,136			8,845
Other income (expense), net	(998		)	522
Net (loss) income from continuing operations before income taxes	$	(8,741	)	$	9,400

In evaluating financial performance, we focus on operating income as a segment’s measure of profit or loss. Segment operating income is income before other income (expense), net, interest expense, earnings from equity investments, unallocated corporate expenses and income taxes. The accounting policies of the reportable segments are the same as those described in our summary of significant accounting policies (see Note 1 of the Notes to Consolidated Financial Statements in our 2012 Annual Report on Form 10-K).