Restructuring Plans

12 Months Ended

Dec. 31, 2013

Restructuring and Related Activities [Abstract]

Restructuring Plans

Restructuring Plans

We recorded pre-tax employee termination and restructuring costs, net of $22.7 million, $10.6 million and $2.0 million for the years ended 2013, 2012 and 2011, respectively. All employee termination and restructuring reported in 2012 and 2011 were completed as of December 31, 2012.

Upon our acquisition of WMS in October 2013, we began integrating Scientific Games and WMS and implementing our plans to streamline our operations and cost structure. We recorded costs associated with integration actions that were initiated in 2013, including employee severance costs, costs relating to exiting facilities, and other costs related to exiting two immaterial business lines. In addition to these restructuring costs, which are included in the table below, we recorded $4.6 million of accelerated depreciation and amortization related to software for a line of gaming machines we discontinued as a result of our reorganization plans.

In December 2013, we initiated a reorganization plan to exit our Provoloto instant lottery game operations in Mexico. In addition to the restructuring charges included in the table below, we recorded $3.1 million of accelerated depreciation and amortization in 2013 related to this reorganization plan.

The following table presents a summary of employee termination and restructuring charges by segment related to restructuring plans that were executed in 2013 and the total we expect to incur in the future related to these plans.

Business Segment		Employee Termination Costs		Property costs		Other		Total
Instant Products (1)	2013	$	—	$	—	$	4.7	$	4.7
	Expected Total	—		—		4.7		4.7
Lottery Systems	2013	0.4		—		—		0.4
	Expected Total	0.4		—		—		0.4
Gaming (2)	2013	3.8		1.0		3.8		8.6
	Expected Total	5.9		1.5		4.8		12.2
Un-allocated corporate (3)	2013	6.9		2.1		—		9.0
	Expected Total	6.9		2.1		—		9.0
Total	2013	$	11.1	$	3.1	$	8.5	$	22.7
	Expected Total	$	13.2	$	3.6	$	9.5	$	26.3

(1) Includes other restructuring costs incurred in 2013 related to the write-off goodwill of $5.4 million and other costs of $1.4 million, offset by the reversal of an acquisition related earn-out liability of $2.1 million.

(2) Other restructuring costs reflects other costs related to the exit of two immaterial business lines.

(3) Unallocated corporate employee termination costs primarily relates to an accrual for cash severance due to our former chief executive officer.

The following table presents a summary of restructuring charges and the changes in the restructuring accrual during 2013.

	Employee Termination Costs			Property costs			Other			Total
Balance as of December 31, 2012	$	—		$	—		$	—		$	—
Accrual additions	11.1			3.1			8.5			22.7
Cash payments	(1.8		)	(0.1		)	(1.8		)	(3.7		)
Non-cash expense	—			(0.2		)	(6.6		)	(6.8		)
Balance as of December 31, 2013	$	9.3		$	2.8		$	0.1		$	12.2