Reportable Segment Information (Tables)

9 Months Ended

Sep. 30, 2014

The following tables present revenue, cost of revenue, SG&A, R&D, employee termination and restructuring, D&A, operating (loss) income from continuing operations and earnings (loss) from equity investments by business segment for the three and nine months ended September 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 for 2013 below do not include the results of WMS, which we acquired in October 2013. The increase in unallocated corporate costs for the three and nine months ended September 30, 2014 primarily related to the inclusion of WMS results.



	Three Months Ended September 30, 2014
	Instant Products			Lottery Systems		Gaming			Total
Revenue:
Instant games	$	130.8		$	—	$	—		$	130.8
Services	—			48.2		134.6			182.8
Product sales	3.2			30.5		68.3			102.0
Total revenue	134.0			78.7		202.9			415.6
Cost of instant games (1)	69.7			—		—			69.7
Cost of services (1)	—			30.4		39.2			69.6
Cost of product sales (1)	2.4			24.6		32.9			59.9
Selling, general and administrative	12.2			5.6		42.4			60.2
Research and development	0.5			0.9		24.9			26.3
Employee termination and restructuring	0.4			—		1.5			1.9
Depreciation and amortization	8.9			16.0		69.8			94.7
Segment operating income (loss) from continuing operations	$	39.9		$	1.2	$	(7.8	)	$	33.3
Unallocated corporate costs									41.1
Consolidated operating loss from continuing operations									$	(7.8	)
Earnings (loss) from equity investments	$	(15.4	)	$	0.1	$	1.3		$	(14.0	)

(1) Exclusive of depreciation and amortization.



	Three Months Ended September 30, 2013
	Instant Products		Lottery Systems		Gaming			Total
Revenue:
Instant games	$	129.7	$	—	$	—		$	129.7
Services	—		48.6		32.1			80.7
Product sales	3.1		13.6		7.3			24.0
Total revenue	132.8		62.2		39.4			234.4
Cost of instant games (1)	70.6		—		—			70.6
Cost of services (1)	—		27.1		15.5			42.6
Cost of product sales (1)	2.2		7.3		3.8			13.3
Selling, general and administrative	11.5		5.3		6.3			23.1
Research and development	0.1		0.9		0.4			1.4
Depreciation and amortization	9.2		13.4		12.4			35.0
Segment operating income from continuing operations	$	39.2	$	8.2	$	1.0		$	48.4
Unallocated corporate costs								22.7
Consolidated operating income from continuing operations								$	25.7
Earnings (loss) from equity investments	$	5.2	$	0.1	$	(1.9	)	$	3.4

(1) Exclusive of depreciation and amortization.



	Nine Months Ended September 30, 2014
	Instant Products			Lottery Systems		Gaming			Total
Revenue:
Instant games	$	392.4		$	—	$	—		$	392.4
Services	—			149.3		389.6			538.9
Product sales	9.4			63.3		216.6			289.3
Total revenue	401.8			212.6		606.2			1,220.6
Cost of instant games (1)	212.5			—		—			212.5
Cost of services (1)	—			90.4		110.3			200.7
Cost of product sales (1)	6.5			50.8		103.9			161.2
Selling, general and administrative	38.9			17.1		132.9			188.9
Research and development	1.0			1.7		74.3			77.0
Employee termination and restructuring	1.6			—		8.9			10.5
Depreciation and amortization	26.2			44.6		200.2			271.0
Segment operating income (loss) from continuing operations	$	115.1		$	8.0	$	(24.3	)	$	98.8
Unallocated corporate costs									115.1
Consolidated operating loss from continuing operations									$	(16.3	)
Earnings (loss) from equity investments	$	(12.4	)	$	1.3	$	3.3		$	(7.8	)

(1) Exclusive of depreciation and amortization.



	Nine Months Ended September 30, 2013
	Instant Products		Lottery Systems		Gaming			Total
Revenue:
Instant games	$	379.0	$	—	$	—		$	379.0
Services	—		146.1		101.6			247.7
Product sales	10.1		35.2		17.0			62.3
Total revenue	389.1		181.3		118.6			689.0
Cost of instant games (1)	210.3		—		—			210.3
Cost of services (1)	—		82.0		53.0			135.0
Cost of product sales (1)	7.2		22.4		9.7			39.3
Selling, general and administrative	35.5		16.0		19.3			70.8
Research and development	0.4		3.1		1.2			4.7
Employee termination and restructuring	0.3		—		—			0.3
Depreciation and amortization	27.0		38.8		44.8			110.6
Segment operating income (loss) from continuing operations	$	108.4	$	19.0	$	(9.4	)	$	118.0
Unallocated corporate costs								68.8
Consolidated operating income from continuing operations								$	49.2
Earnings (loss) from equity investments	$	15.8	$	0.7	$	(3.5	)	$	13.0

(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) income from continuing operations before income taxes for each period:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Reportable business segment operating income from continuing operations	$	33.3		$	48.4		$	98.8		$	118.0
Unallocated corporate costs	(41.1		)	(22.7		)	(115.1		)	(68.8		)
Consolidated operating (loss) income from continuing operations	(7.8		)	25.7			(16.3		)	49.2
Interest expense	(45.7		)	(25.2		)	(142.9		)	(75.3		)
Earnings (loss) from equity investments	(14.0		)	3.4			(7.8		)	13.0
Loss on early extinguishment of debt	—			—			(25.9		)	—
Gain on sale of equity interest	—			—			14.5			—
Other income (expense), net	3.1			—			9.2			(0.8		)
Net (loss) income from continuing operations before income taxes	$	(64.4	)	$	3.9		$	(169.2	)	$	(13.9	)

- 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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