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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Components of Income (Loss) before the Provision for Income Taxes by Jurisdiction
The components of (loss) income before the provision for income taxes, determined by tax jurisdiction, are as follows:
 
 
For the year ended December 31,
($ thousands)
 
2017
 
2016
 
2015
Italy
 
479,851

 
578,221

 
419,116

United States
 
(1,173,601
)
 
(355,451
)
 
(379,425
)
United Kingdom
 
(408,595
)
 
87,269

 
(150,475
)
All other
 
125,420

 
13,374

 
93,753

 
 
(976,925
)
 
323,413

 
(17,031
)
Provision (Benefit) for Income Taxes
The (benefit from) provision for income taxes consists of:
 
 
For the year ended December 31,
($ thousands)
 
2017
 
2016
 
2015
Current:
 
 

 
 

 
 

Italy
 
131,155

 
192,712

 
168,915

United States
 
80,140

 
(16,982
)
 
(24,434
)
United Kingdom
 
733

 
711

 
(5,097
)
All other
 
54,823

 
36,414

 
48,753

 
 
266,851

 
212,855

 
188,137

Deferred:
 
 

 
 

 
 

Italy
 
865

 
(5,837
)
 
1,660

United States
 
(175,539
)
 
(109,139
)
 
(121,032
)
United Kingdom
 
4,366

 
19,232

 
(16,242
)
All other
 
(125,957
)
 
(57,905
)
 
(13,627
)
 
 
(296,265
)
 
(153,649
)
 
(149,241
)
 
 
(29,414
)
 
59,206

 
38,896
Reconciliation of the Provision for Income Taxes, With the Amount Computed by Applying United Kingdom Statutory Main Corporation Tax Rates
A reconciliation of the provision for income taxes, with the amount computed by applying the weighted average rate of the United Kingdom statutory main corporation tax rates enacted in each of the Parent’s calendar year reporting periods (19.25% in 2017, 20.00% in 2016 and 20.25% in 2015) to (loss) income before the provision for income taxes is as follows:
 
 
For the year ended December 31,
($ thousands)
 
2017
 
2016
 
2015
(Loss) income before provision for income taxes
 
(976,925
)
 
323,413

 
(17,031
)
United Kingdom statutory tax rate
 
19.25
%
 
20.00
%
 
20.25
 %
Statutory tax (benefit) expense
 
(188,058
)
 
64,682

 
(3,449
)
 
 
 
 
 
 
 
Tax Impact of 2017 Tax Act
 
(114,219
)
 
—

 
—

Foreign tax and statutory rate differential
 
(71,050
)
 
(17,013
)
 
(48,407
)
Italian allowance for corporate equity
 
(11,761
)
 
(9,243
)
 
(6,929
)
Research and development tax credit
 
(5,052
)
 
(4,980
)
 
(4,393
)
Tax impact of tax law and rate changes excluding the Tax Act
 
(2,463
)
 
(8,422
)
 
(4,746
)
Non-controlling interest
 
(2,205
)
 
(3,605
)
 
8,565

Provision to return adjustments
 
(1,334
)
 
(6,705
)
 
(1,434
)
Nondeductible expenses
 
1,204

 
2,659

 
30,244

Tax cost of tax dividends
 
3,041

 
4,619

 
12,888

Foreign withholding and state taxes on unremitted earnings
 
9,290

 
—

 
—

Foreign tax expense, net of federal benefit
 
14,500

 
3,457

 
9,003

Change in unrecognized tax benefits
 
20,624

 
(10,914
)
 
(15,593
)
IRAP and other state taxes

 
33,484

 
36,754

 
29,697

Change in valuation allowances
 
58,672

 
3,610

 
7,495

Capital gain taxes on sale of DoubleDown
 
94,303

 
—

 
—

Nondeductible goodwill impairment
 
137,445

 
—

 
—

Italian tax litigation settlement
 
—

 
15,256

 
—

Non-taxable gains on investments
 
—

 
(5,880
)
 
—

Italian reorganization tax
 
—

 
—

 
13,405

Other
 
(5,835
)
 
(5,069
)
 
12,550

 
 
(29,414
)
 
59,206

 
38,896

 
 
 
 
 
 
 
Effective tax rate
 
3.0
%
 
18.3
%
 
(228.4
)%
Components of Deferred Tax Assets and Liabilities, and Net Deferred Income Taxes Recorded in the Consolidated Balance Sheet
The components of deferred tax assets and liabilities are as follows: 
 
 
December 31,
($ thousands)
 
2017
 
2016
Deferred tax assets:
 
 

 
 

Net operating losses
 
241,702

 
266,547

Provisions not currently deductible for tax purposes
 
132,365

 
160,202

Depreciation and amortization
 
72,101

 
118,122

Jackpot timing differences
 
51,438

 
83,989

Inventory reserves
 
9,913

 
15,974

Deferred revenue
 
5,317

 
9,129

Stock-based compensation
 
2,402

 
7,468

Credit carryforwards
 
—

 
38,618

Other
 
4,155

 
15,897

Gross deferred tax assets
 
519,393

 
715,946

Valuation allowance
 
(184,554
)
 
(151,653
)
Net deferred tax assets
 
334,839

 
564,293

 
 
 
 
 
Deferred tax liabilities:
 
 

 
 

Acquired intangible assets
 
635,471

 
1,115,345

Depreciation and amortization
 
138,764

 
144,115

Other
 
10,518

 
35,381

Total deferred tax liabilities
 
784,753

 
1,294,841

 
 
 
 
 
Net deferred income tax liability
 
(449,914
)
 
(730,548
)
 
The Company’s net deferred income taxes are recorded in the consolidated balance sheets as follows: 
 
 
December 31,
($ thousands)
 
2017
 
2016
Deferred income taxes - non-current asset
 
41,546

 
31,376

Deferred income taxes - non-current liability
 
(491,460
)
 
(761,924
)
 
 
(449,914
)
 
(730,548
)
Reconciliation of the Beginning and Ending Amount of Valuation Allowance
A reconciliation of the beginning and ending amount of the valuation allowance is as follows:
 
 
December 31,
($ thousands)
 
2017
 
2016
 
2015
Balance at beginning of year
 
151,653

 
139,663

 
77,631

Expiration of tax attributes
 
(25,771
)
 
—

 
—

Net charges to expense
 
58,672

 
11,990

 
62,032

Balance at end of year
 
184,554

 
151,653

 
139,663
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 
 
 
For the year ended December 31,
($ thousands)
 
2017
 
2016
 
2015
Balance at beginning of year
 
14,340

 
37,370

 
6,296

Current year acquisition
 
—

 
—

 
49,934

Additions to tax positions - current year
 
479

 
423

 
9,462

Additions to tax positions - prior years
 
7,503

 
1,718

 
—

Reductions to tax positions - current year
 
(893
)
 
(652
)
 
—

Reductions to tax positions - prior years
 
(41
)
 
(12,755
)
 
(7,733
)
Settlements
 
—

 
(8,750
)
 
(5,313
)
Lapses in statutes of limitations
 
(413
)
 
(3,014
)
 
(15,276
)
Balance at end of year
 
20,975

 
14,340

 
37,370