Restructuring Plans

We recorded pre-tax employee termination and restructuring costs of $1.9 million and $0 for the three months ended September 30, 2014 and 2013, respectively, and recorded pre-tax employee termination and restructuring costs of $12.4 million and $0.3 million for the nine months ended September 30, 2014 and 2013, respectively. Employee termination and restructuring initiatives reported in the nine months ended September 30, 2013 were related to initiatives that were completed as of September 30, 2013 and therefore, are not included in the tables below.

WMS Integration-Related Restructuring Plan

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 have recorded costs that meet the criteria under ASC 420, Exit and Disposal Cost Obligations, in each of our segments associated with integration activities that have been initiated in the relevant period. These costs include employee severance costs, costs relating to the exiting of facilities and costs related to exiting two immaterial businesses.

Unallocated corporate employee termination costs primarily related to terminations of certain executives, including our former chief executive officer, in the fourth quarter of 2013.

Other Restructuring Plans

In December 2013, we initiated a plan to exit our Provoloto instant lottery game operations in Mexico, which was completed during the three months ended March 31, 2014. In June 2014, we initiated a plan to exit our paper roll conversion operations in the U.S., which are immaterial to our operations. Employee termination and restructuring costs related to these initiatives are included in our Instant Products segment.

Employee Termination and Restructuring Costs by Segment

The following table presents a summary of employee termination and restructuring costs by segment related to the restructuring plans described above, including the costs incurred during the three and nine months ended September 30, 2014, the cumulative costs incurred through September 30, 2014 since the relevant restructuring activities were initiated and the total expected costs related to the relevant restructuring activities that have been initiated. As additional integration-related activities are initiated, we expect to incur additional costs related to those activities.



Business Segment		Employee Termination Costs		Property Costs		Other		Total
Instant Products	Three months ended September 30, 2014	$	—	$	0.4	$	—	$	0.4
	Nine months ended September 30, 2014	1.0		0.4		0.2		1.6
	Cumulative	1.0		0.4		4.9		6.3
	Expected Total	1.0		0.4		4.9		6.3

Lottery Systems	Three months ended September 30, 2014	—		—		—		—
	Nine months ended September 30, 2014	—		—		—		—
	Cumulative	0.4		—		—		0.4
	Expected Total	0.4		—		—		0.4

Gaming	Three months ended September 30, 2014	1.4		—		0.1		1.5
	Nine months ended September 30, 2014	6.8		0.4		1.7		8.9
	Cumulative	10.6		1.4		5.5		17.5
	Expected Total	10.6		1.4		5.6		17.6

Unallocated corporate	Three months ended September 30, 2014	—		—		—		—
	Nine months ended September 30, 2014	1.7		0.2		—		1.9
	Cumulative	8.6		2.3		—		10.9
	Expected Total	8.6		2.3		—		10.9

Total	Three months ended September 30, 2014	$	1.4	$	0.4	$	0.1	$	1.9
	Nine months ended September 30, 2014	$	9.5	$	1.0	$	1.9	$	12.4
	Cumulative	$	20.6	$	4.1	$	10.4	$	35.1
	Expected Total	$	20.6	$	4.1	$	10.5	$	35.2

The following table presents a summary of employee termination and restructuring costs and changes in the related accruals.



	Employee Termination Costs			Property Costs			Other			Total
Balance as of December 31, 2013	$	9.3		$	2.8		$	0.1		$	12.2
Additional accruals	9.5			1.0			1.9			12.4
Cash payments	(12.1		)	(0.9		)	(1.9		)	(14.9		)
Non-cash expense	0.5			(0.6		)	1.6			1.5
Balance as of September 30, 2014	$	7.2		$	2.3		$	1.7		$	11.2