Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries (Tables)

6 Months Ended

Jun. 30, 2013

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

As of June 30, 2013

	Parent  Company		SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminating Entries			Consolidated
Assets
Cash and cash equivalents	$	16,064	$	141		$	—		$	63,467	$	(1,588	)	$	78,084
Restricted cash	—		—			—			28,588		—			$	28,588
Accounts receivable, net	—		61,474			24,212			104,123		—			189,809
Inventories	—		25,627			14,247			27,488		—			67,362
Notes receivable	10,410		—			—			—		—			$	10,410
Other current assets	7,687		3,713			7,165			34,555		—			53,120
Property and equipment, net	8,317		142,998			35,122			187,671		—			374,108
Investment in subsidiaries	504,072		800,013			—			855,801		(2,159,886		)	—
Goodwill	—		253,928			76,741			450,749		—			781,418
Intangible assets	—		41,649			35,441			17,851		—			94,941
Intercompany balances	48,278		—			330,634			—		(378,912		)	—
Other assets	7,554		92,070			9,475			318,979		(2,615		)	425,463
Total assets	$	602,382	$	1,421,613		$	533,037		$	2,089,272	$	(2,543,001	)	$	2,103,303
Liabilities and stockholders’ equity
Current installments of long-term debt	$	—	$	6,280		$	—		$	3,989	$	—		$	10,269
Other current liabilities	24,812		49,440			32,470			97,828		(1,595		)	202,955
Long-term debt, excluding current installments	250,000		1,196,428			—			2,694		—			1,449,122
Other non-current liabilities	17,130		26,208			30,522			57,460		—			131,320
Intercompany balances	803		153,317			(245		)	225,055		(378,930		)	—
Stockholders’ equity	309,637		(10,060		)	470,290			1,702,246		(2,162,476		)	309,637
Total liabilities and stockholders’ equity	$	602,382	$	1,421,613		$	533,037		$	2,089,272	$	(2,543,001	)	$	2,103,303

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2012

	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
Restricted cash	—		—			—		30,398		—			$	30,398
Accounts receivable, net	—		63,944			29,156		116,770		—			209,870
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		470,704		—			801,373
Intangible assets	—		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

	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
Restricted cash	—		—			—		30,398		—			$	30,398
Accounts receivable, net	—		63,944			29,156		116,770		—			209,870
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		470,704		—			801,373
Intangible assets	—		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

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

Three Months Ended June 30, 2013

	Parent Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	106,990		$	9,792		$	118,997		$	(735	)	$	235,044
Cost of instant ticket revenue, cost of services and cost of sales (1)	—			34,425			34,718			66,092			(1,861		)	133,374
Selling, general and administrative	17,674			12,738			2,454			13,209			79			46,154
Employee termination and restructuring costs	—			—			—			—			—			—
Depreciation and amortization	163			9,505			5,517			27,879			—			43,064
Operating (loss) income	(17,837		)	50,322			(32,897		)	11,817			1,047			12,452
Interest (expense)	(5,307		)	(19,653		)	(7		)	(171		)	—			(25,138		)
Other income (expense), net	816			(46,512		)	47,871			2,560			(1,047		)	3,688
(Loss) income before equity in income of subsidiaries, and income taxes	(22,328		)	(15,843		)	14,967			14,206			—			(8,998		)
Equity in income (loss) of subsidiaries	11,752			14,889			—			—			(26,641		)	—
Income tax expense	1,807			128			—			1,450			—			3,385
Net (loss) income from continuing operations	$	(12,383	)	$	(1,082	)	$	14,967		$	12,756		$	(26,641	)	$	(12,383	)
Net loss from discontinued operations	$	(592	)	$	—		$	—		$	(592	)	$	592		(592		)
Net (loss) income	(12,975		)	(1,082		)	14,967			12,164			(26,049		)	(12,975		)
Other comprehensive income (loss)	803			(182		)	—			853			(671		)	803
Comprehensive (loss) income	$	(12,172	)	$	(1,264	)	$	14,967		$	13,017		$	(26,720	)	$	(12,172	)

(1) Exclusive of depreciation and amortization.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

Three Months Ended June 30, 2012

	Parent Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	104,177		$	10,601		$	112,874		$	(1,645	)	$	226,007
Cost of instant ticket revenue, cost of services and cost of sales (1)	—			33,115			34,533			60,662			(2,726		)	125,584
Selling, general and administrative	15,126			14,170			2,937			14,998			(767		)	46,464
Employee termination and restructuring costs	—			—			—			5,747			—			5,747
Depreciation and amortization	150			7,568			7,916			21,184			—			36,818
Operating (loss) income	(15,276		)	49,324			(34,785		)	10,283			1,848			11,394
Interest (expense)	(5,305		)	(18,605		)	—			(275		)	—			(24,185		)
Other income (expense), net	1,027			(42,589		)	44,392			4,725			(1,848		)	5,707
(Loss) income before equity in income of subsidiaries, and income taxes	(19,554		)	(11,870		)	9,607			14,733			—			(7,084		)
Equity in income (loss) of subsidiaries	10,001			9,589			—			—			(19,590		)	—
Income tax expense	1,359			44			—			2,425			—			3,828
Net (loss) income from continuing operations	$	(10,912	)	$	(2,325	)	$	9,607		$	12,308		$	(19,590	)	$	(10,912	)
Net loss from discontinued operations	$	(1,677	)	$	—		$	—		$	(1,677	)	$	1,677		(1,677		)
Net (loss) income	(12,589		)	(2,325		)	9,607			10,631			(17,913		)	(12,589		)
Other comprehensive (loss) income	(27,859		)	1,099			—			(28,627		)	27,528			(27,859		)
Comprehensive (loss) income	$	(40,448	)	$	(1,226	)	$	9,607		$	(17,996	)	$	9,615		$	(40,448	)

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

Three Months Ended June 30, 2013

	Parent Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	106,990		$	9,792		$	118,997		$	(735	)	$	235,044
Cost of instant ticket revenue, cost of services and cost of sales (1)	—			34,425			34,718			66,092			(1,861		)	133,374
Selling, general and administrative	17,674			12,738			2,454			13,209			79			46,154
Employee termination and restructuring costs	—			—			—			—			—			—
Depreciation and amortization	163			9,505			5,517			27,879			—			43,064
Operating (loss) income	(17,837		)	50,322			(32,897		)	11,817			1,047			12,452
Interest (expense)	(5,307		)	(19,653		)	(7		)	(171		)	—			(25,138		)
Other income (expense), net	816			(46,512		)	47,871			2,560			(1,047		)	3,688
(Loss) income before equity in income of subsidiaries, and income taxes	(22,328		)	(15,843		)	14,967			14,206			—			(8,998		)
Equity in income (loss) of subsidiaries	11,752			14,889			—			—			(26,641		)	—
Income tax expense	1,807			128			—			1,450			—			3,385
Net (loss) income from continuing operations	$	(12,383	)	$	(1,082	)	$	14,967		$	12,756		$	(26,641	)	$	(12,383	)
Net loss from discontinued operations	$	(592	)	$	—		$	—		$	(592	)	$	592		(592		)
Net (loss) income	(12,975		)	(1,082		)	14,967			12,164			(26,049		)	(12,975		)
Other comprehensive income (loss)	803			(182		)	—			853			(671		)	803
Comprehensive (loss) income	$	(12,172	)	$	(1,264	)	$	14,967		$	13,017		$	(26,720	)	$	(12,172	)

(1) Exclusive of depreciation and amortization.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

Three Months Ended June 30, 2012

	Parent Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	104,177		$	10,601		$	112,874		$	(1,645	)	$	226,007
Cost of instant ticket revenue, cost of services and cost of sales (1)	—			33,115			34,533			60,662			(2,726		)	125,584
Selling, general and administrative	15,126			14,170			2,937			14,998			(767		)	46,464
Employee termination and restructuring costs	—			—			—			5,747			—			5,747
Depreciation and amortization	150			7,568			7,916			21,184			—			36,818
Operating (loss) income	(15,276		)	49,324			(34,785		)	10,283			1,848			11,394
Interest (expense)	(5,305		)	(18,605		)	—			(275		)	—			(24,185		)
Other income (expense), net	1,027			(42,589		)	44,392			4,725			(1,848		)	5,707
(Loss) income before equity in income of subsidiaries, and income taxes	(19,554		)	(11,870		)	9,607			14,733			—			(7,084		)
Equity in income (loss) of subsidiaries	10,001			9,589			—			—			(19,590		)	—
Income tax expense	1,359			44			—			2,425			—			3,828
Net (loss) income from continuing operations	$	(10,912	)	$	(2,325	)	$	9,607		$	12,308		$	(19,590	)	$	(10,912	)
Net loss from discontinued operations	$	(1,677	)	$	—		$	—		$	(1,677	)	$	1,677		(1,677		)
Net (loss) income	(12,589		)	(2,325		)	9,607			10,631			(17,913		)	(12,589		)
Other comprehensive (loss) income	(27,859		)	1,099			—			(28,627		)	27,528			(27,859		)
Comprehensive (loss) income	$	(40,448	)	$	(1,226	)	$	9,607		$	(17,996	)	$	9,615		$	(40,448	)

(1) Exclusive of depreciation and amortization.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

Six Months Ended June 30, 2013

	Parent Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	207,763		$	21,907		$	226,622		$	(1,660	)	$	454,632
Cost of instant ticket revenue, cost of services and cost of sales (1)	—			66,971			69,066			125,998			(3,943		)	258,092
Selling, general and administrative	35,284			26,951			5,407			29,657			(504		)	96,795
Employee termination and restructuring costs	—			—			—			331			—			331
Depreciation and amortization	323			18,610			11,023			45,877			—			75,833
Operating (loss) income	(35,607		)	95,231			(63,589		)	24,759			2,787			23,581
Interest (expense)	(10,612		)	(39,093		)	(8		)	(433		)	—			(50,146		)
Other income (expense), net	3,280			(86,887		)	89,536			5,685			(2,788		)	8,826
(Loss) income before equity in income of subsidiaries, and income taxes	(42,939		)	(30,749		)	25,939			30,011			(1		)	(17,739		)
Equity in income (loss) of subsidiaries	21,869			25,806			—			—			(47,675		)	—
Income tax expense	3,600			169			—			3,162			—			6,931
Net (loss) income from continuing operations	$	(24,670	)	$	(5,112	)	$	25,939		$	26,849		$	(47,676	)	$	(24,670	)
Net loss from discontinued operations	(1,458		)	—			—			(1,458		)	1,458			(1,458		)
Net income (loss) income	(26,128		)	(5,112		)	25,939			25,391			(46,218		)	(26,128		)
Other comprehensive (loss) income	(37,308		)	99			—			(37,352		)	37,253			(37,308		)
Comprehensive (loss) income	$	(63,436	)	$	(5,013	)	$	25,939		$	(11,961	)	$	(8,965	)	$	(63,436	)

(1) Exclusive of depreciation and amortization.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

Six Months Ended June 30, 2012

	Parent Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	210,828		$	20,150		$	228,441		$	(2,218	)	$	457,201
Cost of instant ticket revenue, cost of services and cost of sales (1)	—			66,105			68,747			125,277			(4,352		)	255,777
Selling, general and administrative	30,647			28,907			6,569			27,055			(1,416		)	91,762
Employee termination and restructuring costs	—			—			—			8,051			—			8,051
Depreciation and amortization	299			14,888			12,693			37,406			—			65,286
Operating (loss) income	(30,946		)	100,928			(67,859		)	30,652			3,550			36,325
Interest (expense)	(10,607		)	(37,777		)	—			(699		)	—			(49,083		)
Other income (expense), net	3,215			(82,638		)	89,713			8,334			(3,550		)	15,074
(Loss) income before equity in income of subsidiaries, and income taxes	(38,338		)	(19,487		)	21,854			38,287			—			2,316
Equity in (loss) income of subsidiaries	(22,270		)	21,696			—			—			574			—
Income tax expense	(53,564		)	58,243			—			4,681			—			9,360
Net (loss) income from continuing operations	$	(7,044	)	$	(56,034	)	$	21,854		$	33,606		$	574		$	(7,044	)
Net loss from discontinued operations	(3,726		)	—			—			(3,726		)	3,726			(3,726		)
Net (loss) income	(10,770		)	(56,034		)	21,854			29,880			4,300			(10,770		)
Other comprehensive (loss) income	(2,437		)	1,318			—			(3,596		)	2,278			(2,437		)
Comprehensive (loss) income	$	(13,207	)	$	(54,716	)	$	21,854		$	26,284		$	6,578		$	(13,207	)

(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

Six Months Ended June 30, 2013

	Parent Company			SGI			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(24,132	)	$	(9,148	)	$	28,305		$	75,014		$	—		$	70,039
Cash flows from investing activities:
Capital, lottery and gaming systems expenditures	(3,828		)	(10,051		)	(14,674		)	(51,924		)	—			(80,477		)
Business acquisitions, net of cash acquired	—			—			—			(396		)	—			(396		)
Other assets and investments	(153		)	9,744			—			48,660			(61,369		)	(3,118		)
Net cash (used in) provided by investing activities	(3,981		)	(307		)	(14,674		)	(3,660		)	(61,369		)	(83,991		)
Cash flows from financing activities:
Net payments on long-term debt	—			(3,140		)	—			(6,041		)	—			(9,181		)
Net redemptions of common stock under stock-based compensation plans	(2,759		)	—			—			(61,382		)	61,382			(2,759		)
Payment of financing fees	—			(1,981		)	—			—			—			(1,981		)
Purchase of treasury stock	—			—			—			—			—			—
Other, principally intercompany balances	19,776			14,685			(14,041		)	(20,421		)	1			—
Net cash provided by (used in) financing activities	17,017			9,564			(14,041		)	(87,844		)	61,383			(13,921		)
Effect of exchange rate changes on cash	—			(169		)	—			(2,888		)	(1		)	(3,058		)
Increase (decrease) in cash and cash equivalents	(11,096		)	(60		)	(410		)	(19,378		)	13			(30,931		)
Cash and cash equivalents, beginning of period	27,160			201			2,378			79,276			—			109,015
Cash and cash equivalents, end of period	$	16,064		$	141		$	1,968		$	59,898		$	13		$	78,084

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Six Months Ended June 30, 2012

	Parent Company			SGI			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(20,287	)	$	2,646		$	25,011		$	74,864		$	1,122		$	83,356
Cash flows from investing activities:
Capital, lottery and gaming systems expenditures	(879		)	(15,342		)	(7,459		)	(26,688		)	—			(50,368		)
Business acquisitions, net of cash acquired	—			—			—			(12,991		)	—			(12,991		)
Other assets and investments	(198		)	(20,860		)	156			84,219			(46,350		)	16,967
Net cash (used in) provided by investing activities	(1,077		)	(36,202		)	(7,303		)	44,540			(46,350		)	(46,392		)
Cash flows from financing activities:
Net payments on long-term debt	—			(3,140		)	—			(18,116		)	—			(21,256		)
Net redemptions of common stock under stock-based compensation plans	(3,595		)	—			5			(45,283		)	45,278			(3,595		)
Payment of financing fees	—			(57		)	—			—			—			(57		)
Purchase of treasury stock	(1,895		)	—			—			—			—			(1,895		)
Other, principally intercompany balances	38,612			37,908			(18,543		)	(57,928		)	(49		)	—
Net cash provided by (used in) financing activities	33,122			34,711			(18,538		)	(121,327		)	45,229			(26,803		)
Effect of exchange rate changes on cash	—			(119		)	—			(2,013		)	—			(2,132		)
Increase (decrease) in cash and cash equivalents	11,758			1,036			(830		)	(3,936		)	1			8,029
Cash and cash equivalents, beginning of period	24,042			55			2,379			77,926			—			104,402
Cash and cash equivalents, end of period	$	35,800		$	1,091		$	1,549		$	73,990		$	1		$	112,431