Reportable Segment Information (Tables)

6 Months Ended

Jun. 30, 2014

The following tables present revenue, cost of revenue, SG&A, R&D, employee termination and restructuring, D&A, operating income (loss) from continuing operations and earnings (loss) from equity investments by business segment for the three and six months ended June 30, 2014 and 2013. Certain unallocated expenses managed at the corporate level, comprised primarily of general and administrative costs and other income (expense), net, are not allocated to our business segments. Segment results below for 2013 do not include the operations of WMS, which we acquired in October 2013. The increase in unallocated corporate costs is primarily related to the addition of WMS in the 2014 results.



	Three Months Ended June 30, 2014
	Instant Products			Lottery Systems		Gaming			Total
Revenue:
Instant games	$	135.4		$	—	$	—		$	135.4
Services	—			51.0		128.3			179.3
Product sales	3.1			18.3		80.8			102.2
Total revenue	138.5			69.3		209.1			416.9
Cost of instant games (1)	72.9			—		—			72.9
Cost of services (1)	—			29.6		35.0			64.6
Cost of product sales (1)	2.1			14.5		38.3			54.9
Selling, general and administrative	13.7			5.9		44.6			64.2
Research and development	0.3			0.4		24.1			24.8
Employee termination and restructuring	0.8			—		2.2			3.0
Depreciation and amortization	9.1			14.3		66.7			90.1
Segment operating income (loss) from continuing operations	$	39.6		$	4.6	$	(1.8	)	$	42.4
Unallocated corporate costs									38.8
Consolidated operating income from continuing operations									$	3.6
Earnings (loss) from equity investments	$	(2.4	)	$	0.8	$	2.3		$	0.7

(1) Exclusive of depreciation and amortization.



	Three Months Ended June 30, 2013
	Instant Products		Lottery Systems		Gaming			Total
Revenue:
Instant games	$	126.5	$	—	$	—		$	126.5
Services	—		49.7		35.5			85.2
Product sales	3.5		14.7		5.1			23.3
Total revenue	130.0		64.4		40.6			235.0
Cost of instant games (1)	71.5		—		—			71.5
Cost of services (1)	—		27.1		19.1			46.2
Cost of product sales (1)	2.5		9.9		3.3			15.7
Selling, general and administrative	11.7		5.4		4.9			22.0
Research and development	0.2		0.8		0.4			1.4
Depreciation and amortization	8.8		12.8		21.3			42.9
Segment operating income (loss) from continuing operations	$	35.3	$	8.4	$	(8.4	)	$	35.3
Unallocated corporate costs								22.9
Consolidated operating income from continuing operations								$	12.4
Earnings (loss) from equity investments	$	4.3	$	0.5	$	(1.3	)	$	3.5

(1) Exclusive of depreciation and amortization.



	Six Months Ended June 30, 2014
	Instant Products		Lottery Systems		Gaming			Total
Revenue:
Instant games	$	261.6	$	—	$	—		$	261.6
Services	—		101.1		255.0			356.1
Product sales	6.2		32.8		148.3			187.3
Total revenue	267.8		133.9		403.3			805.0
Cost of instant games (1)	142.8		—		—			142.8
Cost of services (1)	—		60.0		71.1			131.1
Cost of product sales (1)	4.1		26.2		71.0			101.3
Selling, general and administrative	26.7		11.5		90.5			128.7
Research and development	0.5		0.8		49.4			50.7
Employee termination and restructuring	1.2		—		7.4			8.6
Depreciation and amortization	17.3		28.6		130.4			176.3
Segment operating income (loss) from continuing operations	$	75.2	$	6.8	$	(16.5	)	$	65.5
Unallocated corporate costs								74.0
Consolidated operating loss from continuing operations								$	(8.5	)
Earnings from equity investments	$	3.0	$	1.2	$	2.0		$	6.2

(1) Exclusive of depreciation and amortization.



	Six Months Ended June 30, 2013
	Instant Products		Lottery Systems		Gaming			Total
Revenue:
Instant games	$	249.3	$	—	$	—		$	249.3
Services	—		97.5		69.5			167.0
Product sales	7.0		21.6		9.7			38.3
Total revenue	256.3		119.1		79.2			454.6
Cost of instant games (1)	139.7		—		—			139.7
Cost of services (1)	—		54.9		37.5			92.4
Cost of product sales (1)	5.0		15.1		5.9			26.0
Selling, general and administrative	24.0		10.7		13.0			47.7
Research and development	0.3		2.2		0.8			3.3
Employee termination and restructuring	0.3		—		—			0.3
Depreciation and amortization	17.8		25.4		32.4			75.6
Segment operating income (loss) from continuing operations	$	69.2	$	10.8	$	(10.4	)	$	69.6
Unallocated corporate costs								46.1
Consolidated operating income from continuing operations								$	23.5
Earnings (loss) from equity investments	$	10.6	$	0.6	$	(1.6	)	$	9.6

(1) Exclusive of depreciation and amortization.

Reconciliation of segment operating income to consolidated income before income taxes

The following table presents a reconciliation of business segment operating income from continuing operations to net loss from continuing operations before income taxes for each period:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Reportable business segment operating income from continuing operations	$	42.4		$	35.3		$	65.5		$	69.6
Unallocated corporate costs	(38.8		)	(22.9		)	(74.0		)	(46.1		)
Consolidated operating income (loss) from continuing operations	3.6			12.4			(8.5		)	23.5
Interest expense	(49.3		)	(25.1		)	(97.2		)	(50.1		)
Earnings from equity investments	0.7			3.5			6.2			9.6
Loss on early extinguishment of debt	(25.9		)	—			(25.9		)	—
Gain on sale of equity interest	—			—			14.5			—
Other income (expenses), net	3.2			0.2			6.1			(0.8		)
Net loss from continuing operations before income taxes	$	(67.7	)	$	(9.0	)	$	(104.8	)	$	(17.8	)

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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