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

9 Months Ended

Sep. 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 September 30, 2013

	Parent  Company		SGI			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Entries			Consolidated
Assets
Cash and cash equivalents	$	17,023	$	102		$	—	$	61,990	$	(5,654	)	$	73,461
Restricted cash	—		—			—		50		—			50
Accounts receivable, net	—		64,127			33,212		103,013		—			200,352
Inventories	—		30,996			15,899		32,361		—			79,256
Notes receivable	—		—							—			—
Other current assets	9,226		4,280			7,455		31,061		—			52,022
Property and equipment, net	7,797		140,790			41,568		184,914		—			375,069
Investment in subsidiaries	566,882		813,520			—		857,958		(2,238,360		)	—
Goodwill	—		253,929			76,741		469,702		—			800,372
Intangible assets	—		41,053			33,440		17,617		—			92,110
Intercompany balances	34,169		—			340,481		—		(374,650		)	—
Other assets	9,336		94,686			7,119		375,011		(2,616		)	483,536
Total assets	$	644,433	$	1,443,483		$	555,915	$	2,133,677	$	(2,621,280	)	$	2,156,228
Liabilities and stockholders’ equity
Current installments of long-term debt	$	—	$	6,280		$	—	$	4,805	$	—		$	11,085
Other current liabilities	23,571		57,783			38,059		95,738		(5,662		)	209,489
Long-term debt, excluding current installments	250,000		1,194,970			—		3,081		—			1,448,051
Other non-current liabilities	16,223		28,878			28,653		59,210		—			132,964
Intercompany balances	—		167,078			—		207,590		(374,668		)	—
Stockholders’ equity	354,639		(11,506		)	489,203		1,763,253		(2,240,950		)	354,639
Total liabilities and stockholders’ equity	$	644,433	$	1,443,483		$	555,915	$	2,133,677	$	(2,621,280	)	$	2,156,228

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
Notes 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

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

Three Months Ended September 30, 2013

	Parent Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	100,614		$	20,347		$	113,880		$	(434	)	$	234,407
Cost of instant tickets, cost of services and cost of sales (1)	—			30,175			38,096			59,839			(1,571		)	126,539
Selling, general and administrative	16,910			14,227			2,731			13,396			(270		)	46,994
Depreciation and amortization	201			9,786			5,648			19,584			—			35,219
Operating (loss) income	(17,111		)	46,426			(26,128		)	21,061			1,407			25,655
Interest expense	(5,321		)	(19,651		)	—			(153		)	—			(25,125		)
Other (income) expense, net	1,253			(44,862		)	45,049			3,303			(1,407		)	3,336
Income (loss) before equity in income of subsidiaries, and income taxes	(21,179		)	(18,087		)	18,921			24,211			—			3,866
Equity in income (loss) of subsidiaries	23,639			18,813			—			—			(42,452		)	—
Income tax expense	2,826			144			7			1,255			—			4,232
Net (loss) income from continuing operations	$	(366	)	$	582		$	18,914		$	22,956		$	(42,452	)	$	(366	)
Net loss from discontinued operations	$	(85	)	$	—		$	—		$	(85	)	$	85		(85		)
Net (loss) income	$	(451	)	$	582		$	18,914		$	22,871		$	(42,367	)	$	(451	)
Other comprehensive income (loss)	39,257			(2,037		)	(1		)	41,019			(38,981		)	39,257
Comprehensive income (loss)	$	38,806		$	(1,455	)	$	18,913		$	63,890		$	(81,348	)	$	38,806

(1) Exclusive of depreciation and amortization.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

Three Months Ended September 30, 2012

	Parent Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	103,225		$	14,005		$	108,033		$	(626	)	$	224,637
Cost of instant tickets, cost of services and cost of sales (1)	—			34,172			37,000			57,436			(1,715		)	126,893
Selling, general and administrative	15,504			12,596			3,354			13,053			(740		)	43,767
Employee termination and restructuring costs	—			—			—			1,817			—			1,817
Depreciation and amortization	150			7,803			4,996			22,706			—			35,655
Operating (loss) income	(15,654		)	48,654			(31,345		)	13,021			1,829			16,505
Interest expense	(5,308		)	(20,439		)	—			(243		)	—			(25,990		)
Other income (expense), net	1,655			(58,177		)	45,292			3,953			(1,829		)	(9,106		)
(Loss) income before equity in income of subsidiaries, and income taxes	(19,307		)	(29,962		)	13,947			16,731			—			(18,591		)
Equity in (loss) income of subsidiaries	(1,622		)	13,741			—			—			(12,119		)	—
Income tax expense	3,624			32			—			2,306			—			5,962
Net (loss) income from continuing operations	$	(24,553	)	$	(16,253	)	$	13,947		$	14,425		$	(12,119	)	$	(24,553	)
Net loss from discontinued operations	(2,580		)	—			—			(2,580		)	2,580			(2,580		)
Net (loss) income	$	(27,133	)	$	(16,253	)	$	13,947		$	11,845		$	(9,539	)	$	(27,133	)
Other comprehensive income (loss)	27,020			(204		)	—			27,141			(26,937		)	27,020
Comprehensive income (loss)	$	(113	)	$	(16,457	)	$	13,947		$	38,986		$	(36,476	)	$	(113	)

(1) Exclusive of depreciation and amortization.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

Nine Months Ended September 30, 2013

	Parent Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	308,378		$	42,254		$	340,500		$	(2,093	)	$	689,039
Cost of instant tickets, cost of services and cost of sales (1)	—			97,146			107,162			185,837			(5,514		)	384,631
Selling, general and administrative	52,193			41,178			8,138			43,053			(773		)	143,789
Employee termination and restructuring costs	—			—			—			331			—			331
Depreciation and amortization	524			28,396			16,671			65,461			—			111,052
Operating (loss) income	(52,717		)	141,658			(89,717		)	45,818			4,194			49,236
Interest expense	(15,933		)	(58,743		)	(8		)	(587		)	—			(75,271		)
Other (income) expense, net	4,532			(131,749		)	134,585			8,988			(4,194		)	12,162
Income (loss) before equity in income of subsidiaries, and income taxes	(64,118		)	(48,834		)	44,860			54,219			—			(13,873		)
Equity in income (loss) of subsidiaries	45,508			44,619			—			—			(90,127		)	—
Income tax expense	6,426			313			7			4,417			—			11,163
Net (loss) income from continuing operations	$	(25,036	)	$	(4,528	)	$	44,853		$	49,802		$	(90,127	)	$	(25,036	)
Net loss from discontinued operations	(1,543		)	—			—			(1,543		)	1,543			(1,543		)
Net (loss) income	$	(26,579	)	$	(4,528	)	$	44,853		$	48,259		$	(88,584	)	$	(26,579	)
Other comprehensive income (loss)	1,949			(1,939		)	—			3,665			(1,726		)	1,949
Comprehensive income (loss)	$	(24,630	)	$	(6,467	)	$	44,853		$	51,924		$	(90,310	)	$	(24,630	)

(1) Exclusive of depreciation and amortization.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

Nine Months Ended September 30, 2012

	Parent Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	314,053		$	34,155		$	336,474		$	(2,844	)	$	681,838
Cost of instant tickets, cost of services and cost of sales (1)	—			100,277			105,747			182,712			(6,066		)	382,670
Selling, general and administrative	46,152			41,503			9,922			40,109			(2,157		)	135,529
Employee termination and restructuring costs	—			—			—			9,868			—			9,868
Depreciation and amortization	448			22,691			17,689			60,113			—			100,941
Operating (loss) income	(46,600		)	149,582			(99,203		)	43,672			5,379			52,830
Interest expense	(15,915		)	(58,215		)	(1		)	(942		)	—			(75,073		)
Other income (expense), net	4,869			(140,815		)	135,004			12,289			(5,379		)	5,968
(Loss) income before equity in income of subsidiaries, and income taxes	(57,646		)	(49,448		)	35,800			55,019			—			(16,275		)
Equity in (loss) income of subsidiaries	(23,892		)	35,436			—			—			(11,544		)	—
Income tax benefit (expense)	(49,941		)	58,275			—			6,988			—			15,322
Net (loss) income from continuing operations	$	(31,597	)	$	(72,287	)	$	35,800		$	48,031		$	(11,544	)	$	(31,597	)
Net loss from discontinued operations	(6,306		)	—			—			(6,306		)	6,306			(6,306		)
Net (loss) income	$	(37,903	)	$	(72,287	)	$	35,800		$	41,725		$	(5,238	)	$	(37,903	)
Other comprehensive income (loss)	24,583			1,114			—			23,545			(24,659		)	24,583
Comprehensive income (loss)	$	(13,320	)	$	(71,173	)	$	35,800		$	65,270		$	(29,897	)	$	(13,320	)

(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

Nine Months Ended September 30, 2013

	Parent Company			SGI			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(44,667	)	$	(16,086	)	$	43,266		$	113,180		$	—		$	95,693
Cash flows from investing activities:
Capital, lottery and gaming systems expenditures	(5,464		)	(20,461		)	(24,345		)	(62,073		)	—			(112,343		)
Business acquisitions, net of cash acquired	—			—			—			(396		)	—			(396		)
Other assets and investments	9,853			13,984			—			36,287			(64,266		)	(4,142		)
Net cash (used in) provided by investing activities	4,389			(6,477		)	(24,345		)	(26,182		)	(64,266		)	(116,881		)
Cash flows from financing activities:
Net proceeds (payments) on long-term debt	—			(4,710		)	—			(4,909		)	—			(9,619		)
Net redemptions of common stock under stock-based compensation plans	(2,138		)	—			—			(64,266		)	64,266			(2,138		)
Payments of financing fees	—			(1,981		)	—			—			—			(1,981		)
Other, principally intercompany balances	32,279			28,976			(23,397		)	(37,858		)	—			—
Net cash provided by (used in) financing activities	30,141			22,285			(23,397		)	(107,033		)	64,266			(13,738		)
Effect of exchange rate changes on cash	—			179			—			(807		)	—			(628		)
Increase (decrease) in cash and cash equivalents	(10,137		)	(99		)	(4,476		)	(20,842		)	—			(35,554		)
Cash and cash equivalents, beginning of period	27,160			201			2,378			79,276			—			109,015
Cash and cash equivalents, end of period	$	17,023		$	102		$	(2,098	)	$	58,434		$	—		$	73,461

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Nine Months Ended September 30, 2012

	Parent Company			SGI			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(37,200	)	$	1,041		$	41,034		$	103,011		$	42		$	107,928
Cash flows from investing activities:
Capital, lottery and gaming systems expenditures	(1,895		)	(23,174		)	(12,542		)	(42,415		)	—			(80,026		)
Business acquisitions, net of cash acquired	—			(1,000		)	—			(22,989		)	—			(23,989		)
Other assets and investments	(193		)	(20,820		)	156			109,208			(71,636		)	16,715
Net cash (used in) provided by investing activities	(2,088		)	(44,994		)	(12,386		)	43,804			(71,636		)	(87,300		)
Cash flows from financing activities:
Net payments on long-term debt	—			95,290			—			(17,463		)	—			77,827
Net redemptions of common stock under stock-based compensation plans	(4,797		)	—			5			(71,650		)	71,645			(4,797		)
Payments of financing fees	—			(13,497		)	—			—			—			(13,497		)
Purchase of treasury stock	(47,401		)	—			—			—			—			(47,401		)
Other, principally intercompany balances	128,351			(37,773		)	(29,126		)	(61,401		)	(51		)	—
Net cash (used in) provided by financing activities	76,153			44,020			(29,121		)	(150,514		)	71,594			12,132
Effect of exchange rate changes on cash	—			14			—			(1,222		)	—			(1,208		)
Increase (decrease) in cash and cash equivalents	36,865			81			(473		)	(4,921		)	—			31,552
Cash and cash equivalents, beginning of period	24,042			56			2,379			77,925			—			104,402
Cash and cash equivalents, end of period	$	60,907		$	137		$	1,906		$	73,004		$	—		$	135,954