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

6 Months Ended

Jun. 30, 2014

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, 2014  

	Parent  Company		SGI		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Entries			Consolidated
Assets
Cash and cash equivalents	$	16.3	$	0.1	$	1.3	$	71.5	$	—		$	89.2
Restricted cash	—		—		11.7		0.1		—			11.8
Accounts receivable, net	—		66.8		138.1		121.6		—			326.5
Notes receivable, net	—		—		77.7		57.3		—			135.0
Inventories	—		39.3		64.8		66.2		—			170.3
Other current assets	13.9		14.5		82.8		35.2		—			146.4
Property and equipment, net	0.6		129.4		418.5		218.3		—			766.8
Investment in subsidiaries	1,933.4		957.3		—		—		(2,890.7		)	—
Goodwill	—		253.6		484.2		460.0		—			1,197.8
Intangible assets, net	161.9		41.5		281.9		25.0		—			510.3
Intercompany balances	—		1,408.0		286.8		—		(1,694.8		)	—
Software, net	10.5		33.6		227.6		49.4		—			321.1
Other assets	3.3		129.1		28.3		347.6		—			508.3
Total assets	$	2,139.9	$	3,073.2	$	2,103.7	$	1,452.2	$	(4,585.5	)	$	4,183.5
Liabilities and stockholders’ equity
Debt payments due within one year	$	—	$	23.0	$	—	$	13.2	$	—		$	36.2
Other current liabilities	41.3		71.5		123.6		127.7		(0.1		)	364.0
Long-term debt, excluding current installments	250.0		2,902.9		—		34.6		—			3,187.5
Other long-term liabilities	179.7		44.5		73.2		72.5		—			369.9
Intercompany balances	1,443.0		—		—		251.8		(1,694.8		)	—
Stockholders’ equity	225.9		31.3		1,906.9		952.4		(2,890.6		)	225.9
Total liabilities and stockholders’ equity	$	2,139.9	$	3,073.2	$	2,103.7	$	1,452.2	$	(4,585.5	)	$	4,183.5

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2013

	Parent  Company		SGI			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Entries			Consolidated
Assets
Cash and cash equivalents	$	56.0	$	—		$	24.4	$	73.3	$	—		$	153.7
Restricted cash	—		—			10.9		—		—			10.9
Accounts receivable, net	—		66.9			135.4		143.7		—			346.0
Notes receivable, net	—		—			90.9		67.8		—			158.7
Inventories	—		28.2			59.6		50.0		—			137.8
Other current assets	13.9		10.5			95.0		35.0		—			154.4
Property and equipment, net	1.1		137.3			441.3		192.9		—			772.6
Investment in subsidiaries	1,962.5		796.5			—		—		(2,759.0		)	—
Goodwill	—		251.7			464.6		470.6		—			1,186.9
Intangible assets, net	1.9		42.0			340.6		26.6		—			411.1
Intercompany balances	—		1,430.1			296.3		—		(1,726.4		)	—
Software, net	9.4		31.7			251.4		51.0		—			343.5
Other assets	6.0		147.7			42.2		370.4		—			566.3
Total assets	$	2,050.8	$	2,942.6		$	2,252.6	$	1,481.3	$	(4,485.4	)	$	4,241.9
Liabilities and stockholders’ equity
Debt payments due within one year	$	—	$	23.0		$	—	$	7.4	$	—		$	30.4
Other current liabilities	30.4		63.2			174.9		158.2		—			426.7
Long-term debt, excluding current installments	250.0		2,912.2			—		—		—			3,162.2
Other long-term liabilities	20.8		37.8			121.2		67.8		—			247.6
Intercompany balances	1,374.6		—			—		351.8		(1,726.4		)	—
Stockholders’ equity	375.0		(93.6		)	1,956.5		896.1		(2,759.0		)	375.0
Total liabilities and stockholders’ equity	$	2,050.8	$	2,942.6		$	2,252.6	$	1,481.3	$	(4,485.4	)	$	4,241.9

Supplemental Condensed Consolidating Statement of Income

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

Three Months Ended June 30, 2014

	Parent  Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	109.8		$	167.0		$	140.0		$	0.1		$	416.9
Cost of instant games, cost of services and cost of product sales (1)	—			32.0			87.4			72.9			0.1			192.4
Selling, general and administrative	17.0			17.5			41.8			18.9			—			95.2
Research and development	—			0.6			20.1			4.1			—			24.8
Employee termination and restructuring	2.0			—			2.5			0.4			—			4.9
Depreciation and amortization	1.8			10.1			61.7			22.4			—			96.0
Operating (loss) income	(20.8		)	49.6			(46.5		)	21.3			—			3.6
Interest income (expense)	3.1			(4.4		)	(47.7		)	(0.3		)	—			(49.3		)
Other (expense) income, net	(17.3		)	(67.6		)	50.3			12.7			(0.1		)	(22.0		)
Net (loss) income before equity in income of subsidiaries and income taxes	(35.0		)	(22.4		)	(43.9		)	33.7			(0.1		)	(67.7		)
Equity in (loss) income of subsidiaries	(32.8		)	20.6			—			—			12.2			—
Income tax expense	(4.6		)	(0.1		)	—			—			—			(4.7		)
Net (loss) income from continuing operations	$	(72.4	)	$	(1.9	)	$	(43.9	)	$	33.7		$	12.1		$	(72.4	)
Net (loss) income	(72.4		)	(1.9		)	(43.9		)	33.7			12.1			(72.4		)
Other comprehensive income (loss)	4.2			(4.9		)	—			9.7			(4.8		)	4.2
Comprehensive (loss) income	$	(68.2	)	$	(6.8	)	$	(43.9	)	$	43.4		$	7.3		$	(68.2	)

(1) Exclusive of depreciation and amortization.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

Three Months Ended June 30, 2013

	Parent  Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	107.0		$	9.8		$	119.0		$	(0.8	)	$	235.0
Cost of instant games, cost of services and cost of product sales (1)	—			34.4			34.7			66.1			(1.8		)	133.4
Selling, general and administrative	17.7			11.9			2.3			12.8			—			44.7
Research and development	—			0.8			0.2			0.4			—			1.4
Employee termination and restructuring	—			—			—			—			—			—
Depreciation and amortization	0.2			9.5			5.5			27.9			—			43.1
Operating (loss) income	(17.9		)	50.4			(32.9		)	11.8			1.0			12.4
Interest expense	(5.3		)	(19.7		)	—			(0.2		)	0.1			(25.1		)
Other income (expense), net	0.8			(46.5		)	47.9			2.6			(1.1		)	3.7
Net (loss) income before equity in income of subsidiaries and income taxes	(22.4		)	(15.8		)	15.0			14.2			—			(9.0		)
Equity in income (loss) of subsidiaries	11.8			14.9			—			—			(26.7		)	—
Income tax expense	(1.8		)	(0.1		)	—			(1.5		)	—			(3.4		)
Net (loss) income from continuing operations	$	(12.4	)	$	(1.0	)	$	15.0		$	12.7		$	(26.7	)	$	(12.4	)
Net loss from discontinued operations	(0.6		)	—			—			(0.6		)	0.6			(0.6		)
Net (loss) income	(13.0		)	(1.0		)	15.0			12.1			(26.1		)	(13.0		)
Other comprehensive income (loss)	0.8			(0.2		)	—			0.9			(0.7		)	0.8
Comprehensive (loss) income	$	(12.2	)	$	(1.2	)	$	15.0		$	13.0		$	(26.8	)	$	(12.2	)

(1) Exclusive of depreciation and amortization.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

Six Months Ended June 30, 2014

	Parent  Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	210.2		$	316.3		$	278.5		$	—		$	805.0
Cost of instant games, cost of services and cost of product sales (1)	—			63.8			161.6			149.8			—			375.2
Selling, general and administrative	32.1			34.1			82.1			38.7			—			187.0
Research and development	—			1.1			41.6			8.0			—			50.7
Employee termination and restructuring	2.0			0.2			4.1			4.2			—			10.5
Depreciation and amortization	5.5			20.3			119.8			44.5			—			190.1
Operating (loss) income	(39.6		)	90.7			(92.9		)	33.3			—			(8.5		)
Interest expense	(2.3		)	(46.5		)	(47.9		)	(0.5		)	—			(97.2		)
Other (expense) income, net	(32.6		)	(95.3		)	91.4			37.4			—			0.9
Net (loss) income before equity in income of subsidiaries and income taxes	(74.5		)	(51.1		)	(49.4		)	70.2			—			(104.8		)
Equity in (loss) income of subsidiaries	(32.9		)	35.1			—			—			(2.2		)	—
Income tax expense	(10.0		)	(0.1		)	—			(2.5		)	—			(12.6		)
Net (loss) income from continuing operations	$	(117.4	)	$	(16.1	)	$	(49.4	)	$	67.7		$	(2.2	)	$	(117.4	)
Net (loss) income	(117.4		)	(16.1		)	(49.4		)	67.7			(2.2		)	(117.4		)
Other comprehensive income (loss)	3.7			3.0			(0.3		)	10.1			(12.8		)	3.7
Comprehensive (loss) income	$	(113.7	)	$	(13.1	)	$	(49.7	)	$	77.8		$	(15.0	)	$	(113.7	)

(1) Exclusive of depreciation and amortization.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

Six Months Ended June 30, 2013

	Parent  Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	207.8		$	21.9		$	226.6		$	(1.7	)	$	454.6
Cost of instant games, cost of services and cost of product sales (1)	—			66.9			69.0			126.1			(3.9		)	258.1
Selling, general and administrative	35.3			24.7			5.2			28.9			(0.6		)	93.5
Research and development	—			2.2			0.3			0.8			—			3.3
Employee termination and restructuring	—			—			—			0.3			—			0.3
Depreciation and amortization	0.4			18.6			11.0			45.9			—			75.9
Operating (loss) income	(35.7		)	95.4			(63.6		)	24.6			2.8			23.5
Interest expense	(10.6		)	(39.1		)	—			(0.5		)	0.1			(50.1		)
Other income (expense), net	3.3			(87.0		)	89.6			5.7			(2.8		)	8.8
Net (loss) income before equity in income of subsidiaries and income taxes	(43.0		)	(30.7		)	26.0			29.8			0.1			(17.8		)
Equity in income (loss) of subsidiaries	21.9			25.8			—			—			(47.7		)	—
Income tax expense	(3.6		)	(0.1		)	—			(3.2		)	—			(6.9		)
Net (loss) income from continuing operations	$	(24.7	)	$	(5.0	)	$	26.0		$	26.6		$	(47.6	)	$	(24.7	)
Net loss from discontinued operations	(1.5		)	—			—			(1.5		)	1.5			(1.5		)
Net (loss) income	(26.2		)	(5.0		)	26.0			25.1			(46.1		)	(26.2		)
Other comprehensive (loss) income	(37.3		)	0.1			—			(37.3		)	37.2			(37.3		)
Comprehensive (loss) income	$	(63.5	)	$	(4.9	)	$	26.0		$	(12.2	)	$	(8.9	)	$	(63.5	)

(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, 2014

	Parent  Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(54.6	)	$	8.8		$	62.7		$	90.2		$	—		$	107.1
Cash flows from investing activities:																—
Additions to property and equipment	(2.2		)	(0.3		)	(13.3		)	(5.3		)	—			(21.1		)
Lottery and gaming services expenditures	(0.1		)	(9.0		)	(25.3		)	(10.4		)	—			(44.8		)
Intangible assets and software expenditures	(3.7		)	(6.8		)	(29.0		)	(9.3		)	—			(48.8		)
Additions to equity method investments	—			—			—			(40.6		)	—			(40.6		)
Distributions of capital on equity investments	—			1.1			—			31.8			—			32.9
Proceeds on sale of equity interest	—			—			—			44.9			—			44.9
Other	—			22.0			(1.3		)	5.9			(27.7		)	(1.1		)
Intercompany balances	—			20.9			(16.2		)	—			(4.7		)	—
Net cash provided by (used in) investing activities	(6.0		)	27.9			(85.1		)	17.0			(32.4		)	(78.6		)
Cash flows from financing activities:
Net payments on long-term debt	—			(13.8		)	—			(3.0		)	—			(16.8		)
Payments of financing fees	—			(22.8		)	—			—			—			(22.8		)
Common stock repurchases	(29.5		)	—			—			—			—			(29.5		)
Contingent earnout payments	—			—			—			(3.2		)	—			(3.2		)
Net redemptions of common stock under stock-based compensation plans	(19.2		)	—			—			(27.7		)	27.7			(19.2		)
Other, principally intercompany balances	69.6			—			—			(74.3		)	4.7			—
Net cash provided by (used in) financing activities	20.9			(36.6		)	—			(108.2		)	32.4			(91.5		)
Effect of exchange rate changes on cash	—			—			(0.7		)	(0.8		)	—			(1.5		)
Increase (decrease) in cash and cash equivalents	(39.7		)	0.1			(23.1		)	(1.8		)	—			(64.5		)
Cash and cash equivalents, beginning of period	56.0			—			24.4			73.3			—			153.7
Cash and cash equivalents, end of period	$	16.3		$	0.1		$	1.3		$	71.5		$	—		$	89.2

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	$	(24.1	)	$	(9.2	)	$	28.3		$	75.0		$	—		$	70.0
Cash flows from investing activities:
Additions to property and equipment	(3.6		)	(0.8		)	(6.7		)	(3.9		)	—			(15.0		)
Lottery and gaming services expenditures	(0.2		)	(2.3		)	(0.3		)	(40.3		)	—			(43.1		)
Intangible assets and software expenditures	—			(7.1		)	(7.7		)	(7.6		)	—			(22.4		)
Business acquisitions, net of cash acquired	—			—			—			(0.4		)	—			(0.4		)
Other assets and investments	(0.2		)	9.8			—			48.7			(61.4		)	(3.1		)
Other, principally intercompany balances	19.8			—			(14.1		)	—			(5.7		)	—
Net cash (used in) provided by investing activities	15.8			(0.4		)	(28.8		)	(3.5		)	(67.1		)	(84.0		)
Cash flows from financing activities:
Net payments on long-term debt	—			(3.1		)	—			(6.0		)	—			(9.1		)
Net redemptions of common stock under stock-based compensation plans	(2.8		)	—			—			(61.4		)	61.4			(2.8		)
Payment of financing fees	—			(2.0		)	—			—			—			(2.0		)
Other, principally intercompany balances	—			14.7			—			(20.4		)	5.7			—
Net cash provided by (used in) financing activities	(2.8		)	9.6			—			(87.8		)	67.1			(13.9		)
Effect of exchange rate changes on cash	—			(0.1		)	—			(2.9		)	—			(3.0		)
Decrease in cash and cash equivalents	(11.1		)	(0.1		)	(0.5		)	(19.2		)	—			(30.9		)
Cash and cash equivalents, beginning of period	27.2			0.1			2.4			79.3			—			109.0
Cash and cash equivalents, end of period	$	16.1		$	—		$	1.9		$	60.1		$	—		$	78.1