Reportable Segment Information

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2013 and 2012 by reportable segments. Corporate expenses and corporate depreciation and amortization are not allocated to the reportable segments and are presented as unallocated corporate expenses. 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 and six months ended June 30, 2013 and 2012.

	Three Months Ended June 30, 2013
	Printed Products		Lottery Systems		Gaming			Total
Revenue:
Instant tickets	$	126,538	$	—	$	—		$	126,538
Services	—		52,228		32,948			85,176
Sales	3,584		16,642		3,104			23,330
Total revenue	130,122		68,870		36,052			235,044
Cost of instant tickets (1)	71,510		—		—			71,510
Cost of services (1)	—		28,747		17,457			46,204
Cost of sales (1)	2,521		10,831		2,308			15,660
Selling, general and administrative	11,923		6,840		4,695			23,458
Employee termination and restructuring	—		—		—			—
Depreciation and amortization	8,840		14,111		19,950			42,901
Segment operating income (loss) from continuing operations	$	35,328	$	8,341	$	(8,358	)	$	35,311
Unallocated corporate costs								(22,859		)
Consolidated operating income from continuing operations								$	12,452

(1) Exclusive of depreciation and amortization.

	Three Months Ended June 30, 2012
	Printed Products		Lottery Systems		Gaming			Total
Revenue:
Instant tickets	$	119,627	$	—	$	—		$	119,627
Services	—		51,114		34,221			85,335
Sales	3,082		13,506		4,457			21,045
Total revenue	122,709		64,620		38,678			226,007
Cost of instant tickets (1)	68,420		—		—			68,420
Cost of services (1)	—		26,963		15,963			42,926
Cost of sales (1)	1,991		8,729		3,518			14,238
Selling, general and administrative	11,844		6,198		7,171			25,213
Employee termination and restructuring	4,507		—		1,240			5,747
Depreciation and amortization	12,813		12,278		11,577			36,668
Segment operating income (loss) from continuing operations	$	23,134	$	10,452	$	(791	)	$	32,795
Unallocated corporate costs								(21,401		)
Consolidated operating income from continuing operations								$	11,394

(1) Exclusive of depreciation and amortization.

	Six Months Ended June 30, 2013
	Printed Products		Lottery Systems		Gaming			Total
Revenue:
Instant tickets	$	249,351	$	—	$	—		$	249,351
Services	—		102,260		64,683			166,943
Sales	7,058		24,803		6,477			38,338
Total revenue	256,409		127,063		71,160			454,632
Cost of instant tickets (1)	139,704		—		—			139,704
Cost of services (1)	—		58,005		34,432			92,437
Cost of sales (1)	4,964		16,560		4,427			25,951
Selling, general and administrative	24,397		14,378		12,281			51,056
Employee termination and restructuring	331		—		—			331
Depreciation and amortization	17,812		27,869		29,829			75,510
Segment operating income (loss) from continuing operations	$	69,201	$	10,251	$	(9,809	)	$	69,643
Unallocated corporate costs								(46,062		)
Consolidated operating income from continuing operations								$	23,581

(1) Exclusive of depreciation and amortization.

	Six Months Ended June 30, 2012
	Printed Products		Lottery Systems		Gaming		Total
Revenue:
Instant tickets	$	242,951	$	—	$	—	$	242,951
Services	—		104,120		68,120		172,240
Sales	5,245		24,977		11,788		42,010
Total revenue	248,196		129,097		79,908		457,201
Cost of instant tickets (1)	138,383		—		—		138,383
Cost of services (1)	—		56,322		29,907		86,229
Cost of sales (1)	3,401		16,684		11,080		31,165
Selling, general and administrative	22,859		13,251		12,405		48,515
Employee termination and restructuring	4,507		—		3,544		8,051
Depreciation and amortization	20,816		24,076		20,095		64,987
Segment operating income from continuing operations	$	58,230	$	18,764	$	2,877	$	79,871
Unallocated corporate costs							(43,546		)
Consolidated operating income from continuing operations							$	36,325

(1) Exclusive of depreciation and amortization.

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Reported segment operating income	$	35,311		$	32,795		$	69,643		$	79,871
Unallocated corporate expenses	(22,859		)	(21,401		)	(46,062		)	(43,546		)
Consolidated operating income	12,452			11,394			23,581			36,325
Interest expense	(25,138		)	(24,185		)	(50,146		)	(49,083		)
Earnings from equity investments	3,495			6,915			9,631			15,760
Other income (expenses), net	193			(1,208		)	(805		)	(686		)
Net (loss) income from continuing operations before income taxes	$	(8,998	)	$	(7,084	)	$	(17,739	)	$	2,316

In evaluating financial performance, we focus on operating income as a segment’s measure of profit or loss. Segment operating income is income before unallocated corporate expenses, interest expense, earnings from equity investments, other income (expense) 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).