Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

The structure of the Company’s internal organization is customer-facing aligned around four business units operating in threeregions that represent the Company’s reportable segments as follows:

• North America Gaming and Interactive

• North America Lottery

• International

• Italy

The Company monitors the operating results of its operating segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating income. Segment accounting policies are consistent with those of the consolidated financial statements.

Purchase accounting principally represents the depreciation and amortization of acquired tangible and intangible assets in connection with acquired companies.

Corporate support expenses, which are not allocated to the segments, are principally comprised of selling, general and administrative expenses and other expenses that are managed at the corporate level, including restructuring, transaction, corporate headquarters and Board of Directors’ expenses.

Segment information is as follows ($ thousands):

2016	North America Gaming and Interactive		North America Lottery		International		Italy		Segment Total		Corporate Support		Purchase Accounting		Total
Service revenue	975,214		1,128,306		512,660		1,759,843		4,376,023		—		(437	)	4,375,586
Product sales	398,241		65,269		314,644		1,295		779,449		—		(1,139	)	778,310
Total revenue	1,373,455		1,193,575		827,304		1,761,138		5,155,472		—		(1,576	)	5,153,896
Operating income (loss)	344,125		300,394		144,125		585,517		1,374,161		(245,600	)	(468,125	)	660,436
Depreciation and amortization	94,177		143,882		49,739		144,165		431,963		12,454		438,052		882,469
Expenditures for long-lived assets	(132,297	)	(148,641	)	(97,957	)	(91,834	)	(470,729	)	(3,460	)	—		(474,189	)
Long-lived assets (at year end)	394,233		603,927		284,276		275,079		1,557,515		—		—		1,557,515
Total assets (at year end)	5,577,491		2,396,557		3,021,448		3,724,856		14,720,352		339,810		—		15,060,162

2015	North America Gaming and Interactive		North America Lottery		International		Italy		Segment Total		Corporate Support		Purchase Accounting		Total
Service revenue	780,189		992,684		512,004		1,702,174		3,987,051		—		(9,358	)	3,977,693
Product sales	321,618		52,986		341,070		1,872		717,546		—		(6,183	)	711,363
Total revenue	1,101,807		1,045,670		853,074		1,704,046		4,704,597		—		(15,541	)	4,689,056
Operating income (loss)	294,256		182,615		164,949		554,937		1,196,757		(292,371	)	(364,430	)	539,956
Depreciation and amortization	78,918		154,693		44,787		146,265		424,663		13,113		342,052		779,828
Expenditures for long-lived assets	(82,834	)	(107,854	)	(93,666	)	(22,422	)	(306,776	)	(11,618	)	—		(318,394	)
Long-lived assets (at year end)	403,482		616,760		236,043		220,910		1,477,195		—		—		1,477,195
Total assets (at year end)	6,077,680		2,476,112		2,950,807		2,855,797		14,360,396		754,296		—		15,114,692

2014	North America Gaming and Interactive		North America Lottery		International		Italy		Segment Total		Corporate Support		Purchase Accounting		Total
Service revenue	45,575		865,023		473,653		2,104,996		3,489,247		—		722		3,489,969
Product sales	86,926		75,074		156,976		3,366		322,342		—		—		322,342
Total revenue	132,501		940,097		630,629		2,108,362		3,811,589		—		722		3,812,311
Operating income (loss)	1,054		74,293		156,295		711,881		943,523		(150,268	)	(78,204	)	715,051
Depreciation and amortization	25,717		151,684		39,027		172,622		389,050		4,575		78,927		472,552
Expenditures for long-lived assets	(25,454	)	(111,325	)	(43,716	)	(78,858	)	(259,353	)	(3,489	)	—		(262,842	)
Long-lived assets (at year end)	84,424		646,631		184,553		294,360		1,209,968		—		—		1,209,968
Total assets (at year end)	374,806		2,343,289		1,868,190		3,367,591		7,953,876		481,421		—		8,435,297

Geographical Information

Revenue from external customers, which is based on the geographical location of the Company’s customers, is as follows:

	December 31,
($ thousands)	2016	2015	2014
United States	2,472,013	2,030,251	1,024,917
Italy	1,778,750	1,712,583	2,119,303
United Kingdom	82,271	93,839	93,366
All other	820,862	852,383	574,725
Total	5,153,896	4,689,056	3,812,311

No customer represents 10% or more of consolidated revenue in 2016, 2015 or 2014.

Long-lived assets are composed of the following:

• Systems, equipment and other assets relating to contracts

• Property, plant and equipment

Long-lived assets based on the geographical location of the assets are as follows:

	December 31,
($ thousands)	2016	2015
United States	989,374	976,439
Italy	254,052	202,971
United Kingdom	47,388	46,658
All other	266,701	251,127
Total	1,557,515	1,477,195