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Description of the Business and Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Aggregate Business Acquisitions Completed
The following table summarizes an aggregate disclosure related to business acquisitions completed during the first half of 2017 and is based on the preliminary allocations of the purchase price expected to be finalized by the fourth quarter of 2017, pending completion of the valuation analyses for acquired intangible assets:
 
Total
Consideration
Cash paid, net
of cash
acquired
Contingent Consideration 1
Allocation of
purchase price
to Intangible
assets, net 2
Weighted
average useful
life of acquired intangible assets
Excess purchase
price allocated
to Goodwill
Aggregate total
$
57.8

$
52.1

$
4.9

$
46.0

9.2
$
14.6

1 Contingent consideration as determined by fair value and included in the consideration transferred.
2 Intangible assets primarily consist of technology-based and customer relationship intangible assets. The fair value of these intangible assets was determined using a combination of a royalty savings method and the excess earnings method using Level 3 in the hierarchy as established by ASC 820. The discount rates and royalty rates used in the valuation analysis ranged between 9% and 20% and 1% and 16%, respectively.
Summary of Revenue by Type Within Each Business Segment
The following table summarizes our revenues by type within each of our business segments:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Gaming
 
 
 
 
 
 
 
  Gaming operations
$
178.4

 
$
186.0

 
$
350.8

 
$
370.4

  Gaming machine sales
163.3

 
154.4

 
319.5

 
288.9

Gaming systems
67.1

 
59.5

 
128.6

 
119.2

  Table products
48.4

 
42.0

 
98.3

 
85.1

    Total
$
457.2

 
$
441.9

 
$
897.2

 
$
863.6

 
 
 
 
 
 
 
 
Lottery
 
 
 
 
 
 
 
  Instant products
$
151.3

 
$
153.7

 
$
293.0

 
$
291.0

  Lottery systems
51.0

 
50.2

 
98.4

 
100.6

    Total
$
202.3

 
$
203.9

 
$
391.4

 
$
391.6

 
 
 
 
 
 
 
 
Interactive
 
 
 
 
 
 
 
  Social Gaming - B2C
$
91.1

 
$
69.1

 
$
171.3

 
$
129.2

  Other
15.7

 
14.3

 
31.8

 
26.8

    Total
$
106.8

 
$
83.4

 
$
203.1

 
$
156.0
Summary of Deferred Revenue Activity
The following table summarizes the deferred revenue activity for the reporting period:
 
Six Months Ended June 30,
 
2017
 
2016
Deferred revenue balance, beginning of period
$
67.4

 
$
57.8

New deferrals
111.1

 
145.8

Amounts recognized in revenue
(119.3
)
 
(143.2
)
Deferred revenue balance, end of period
$
59.2

 
$
60.4
Schedule of Impact of Adopting Revenue Recognition Guidance
The following table summarizes the anticipated impact to the financial statements based on our assessment completed to date:

Business Segment
Revenue Type
Anticipated Impact
Gaming
Gaming operations








Gaming machine sales


Gaming systems


Table products
Ÿ We anticipate the following impact on the net amount of revenue for WAP jackpot payments, which will no longer be treated as an expense but rather as a reduction to revenue: WAP jackpot expense of $5.3 million and $12.4 million for the three and six months ended June 30, 2017, respectively, and $8.1 million and $16.7 million for the three and six months ended June 30, 2016, respectively, recognized as cost of services.

Ÿ We continue to evaluate the impact on timing and amount of revenue.


Ÿ We do not anticipate a material impact on timing or amount of revenue.


Ÿ We continue to evaluate the impact on timing and amount of revenue.


Ÿ We continue to evaluate the impact on timing and amount of revenue.


We are currently assessing the adoption impact on our U.K. gaming operations, which includes gaming operations, machine sales and to a lesser extent gaming system revenue streams.
Lottery
Instant products






Lottery systems
Ÿ We do not anticipate a material impact on timing or amount of revenue for our PPU instant products arrangements.

Ÿ We continue to evaluate the impact on timing and amount of revenue on our participation based instant products arrangements as well as licensing and player loyalty arrangements.

Ÿ We continue to evaluate the impact on timing and amount of revenue.
Interactive
All
Ÿ We do not anticipate a material impact on timing or amount of revenue.