XML 52 R35.htm IDEA: XBRL DOCUMENT v3.8.0.1
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries (Tables)
 3 Months Ended
Mar. 31, 2018
Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries [Abstract]  
Supplemental Condensed Consolidating Balance Sheet
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET
As of March 31, 2018
 
 
SGC (Parent)
 
SGI (Issuer1)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
40.7

 
$
—

 
$
—

 
$
74.8

 
$
(5.6
)
 
$
109.9

Restricted cash
 
—

 
0.7

 
29.2

 
4.2

 
—

 
34.1

Accounts receivable, net
 
—

 
65.0

 
190.3

 
300.0

 
(1.2
)
 
554.1

Notes receivable, net
 
—

 
—

 
115.2

 
17.0

 
—

 
132.2

Inventories
 
—

 
28.0

 
91.2

 
135.4

 
(23.4
)
 
231.2

Prepaid expenses, deposits and other current assets
 
11.7

 
63.5

 
95.4

 
80.3

 
(1.2
)
 
249.7

Property and equipment, net
 
26.9

 
94.8

 
228.1

 
182.6

 
(27.1
)
 
505.3

Investment in subsidiaries
 
3,063.8

 
902.7

 
1,106.4

 
—

 
(5,072.9
)
 
—

Goodwill
 
—

 
240.2

 
1,886.0

 
1,246.3

 
—

 
3,372.5

Intangible assets, net
 
13.3

 
34.7

 
1,299.0

 
556.0

 
—

 
1,903.0

Intercompany balances
 
—

 
5,832.2

 
—

 
—

 
(5,832.2
)
 
—

Software, net
 
65.0

 
31.0

 
180.3

 
51.5

 
—

 
327.8

Other assets(2)
 
234.7

 
421.1

 
54.5

 
214.6

 
(607.5
)
 
317.4

Total assets
 
$
3,456.1

 
$
7,713.9

 
$
5,275.6

 
$
2,862.7

 
$
(11,571.1
)
 
$
7,737.2

Liabilities and stockholders' (deficit) equity
 
 
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
$
—

 
$
41.7

 
$
—

 
$
8.7

 
$
—

 
$
50.4

Other current liabilities
 
87.8

 
180.0

 
230.7

 
245.3

 
(37.9
)
 
705.9

Long-term debt, excluding current portion
 
—

 
8,791.4

 
—

 
2.6

 
—

 
8,794.0

Other long-term liabilities
 
128.3

 
30.9

 
620.9

 
202.3

 
(599.4
)
 
383.0

Intercompany balances
 
5,436.1

 
—

 
59.7

 
336.4

 
(5,832.2
)
 
—

Stockholders' (deficit) equity
 
(2,196.1
)
 
(1,330.1
)
 
4,364.3

 
2,067.4

 
(5,101.6
)
 
(2,196.1
)
Total liabilities and stockholders' (deficit) equity
 
$
3,456.1

 
$
7,713.9

 
$
5,275.6

 
$
2,862.7

 
$
(11,571.1
)
 
$
7,737.2

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Issuer of obligations under the 2020 Notes, the 2021 Notes, the 2022 Secured Notes, which were redeemed in March 2018, the Unsecured Notes, the 2025 Secured Notes, which were issued in October 2017, and the 2026 Secured Euro Notes and 2026 Unsecured Euro Notes, which were issued in February 2018.
(2) Includes $15.0 million and $0.7 million in non-current restricted cash for Guarantor Subsidiaries and Non-Guarantor Subsidiaries, respectively.
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET
As of December 31, 2017
 
 
SGC (Parent)
 
SGI (Issuer1)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
732.6

 
$
—

 
$
—

 
$
59.4

 
$
(3.2
)
 
$
788.8

Restricted cash
 
—

 
0.6

 
28.3

 
0.1

 
—

 
29.0

Accounts receivable, net
 
0.4

 
68.1

 
192.6

 
279.8

 
—

 
540.9

Notes receivable, net
 
—

 
—

 
121.1

 
22.4

 
—

 
143.5

Inventories
 
—

 
40.7

 
91.8

 
131.8

 
(21.2
)
 
243.1

Prepaid expenses, deposits and other current assets
 
6.5

 
30.3

 
41.6

 
52.7

 
—

 
131.1

Property and equipment, net
 
28.8

 
91.5

 
295.6

 
179.9

 
(27.6
)
 
568.2

Investment in subsidiaries
 
3,098.7

 
867.9

 
987.7

 
—

 
(4,954.3
)
 
—

Goodwill
 
—

 
240.3

 
1,880.4

 
835.4

 
—

 
2,956.1

Intangible assets, net
 
15.7

 
34.9

 
1,335.3

 
218.7

 
—

 
1,604.6

Intercompany balances
 
—

 
5,889.8

 
—

 
222.5

 
(6,112.3
)
 
—

Software, net
 
67.2

 
24.7

 
199.0

 
48.5

 
—

 
339.4

Other assets(2)
 
234.4

 
388.8

 
62.0

 
270.3

 
(574.9
)
 
380.6

Total assets
 
$
4,184.3

 
$
7,677.6

 
$
5,235.4

 
$
2,321.5

 
$
(11,693.5
)
 
$
7,725.3

Liabilities and stockholders' (deficit) equity
 
 
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
$
—

 
$
32.8

 
$
—

 
$
7.5

 
$
—

 
$
40.3

Other current liabilities
 
67.6

 
199.0

 
254.2

 
206.4

 
(27.7
)
 
699.5

Long-term debt, excluding current portion
 
—

 
8,733.0

 
—

 
3.3

 
—

 
8,736.3

Other long-term liabilities
 
68.8

 
11.3

 
650.3

 
110.9

 
(565.1
)
 
276.2

Intercompany balances
 
6,074.9

 
—

 
37.4

 
—

 
(6,112.3
)
 
—

Stockholders' (deficit) equity
 
(2,027.0
)
 
(1,298.5
)
 
4,293.5

 
1,993.4

 
(4,988.4
)
 
(2,027.0
)
Total liabilities and stockholders' (deficit) equity
 
$
4,184.3

 
$
7,677.6

 
$
5,235.4

 
$
2,321.5

 
$
(11,693.5
)
 
$
7,725.3

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Issuer of obligations under the 2020 Notes, the 2021 Notes, the 2022 Secured Notes, the 2025 Secured Notes and the Unsecured Notes.
(2) Includes $16.1 million and $0.7 million in non-current restricted cash for Guarantor Subsidiaries and Non-Guarantor Subsidiaries, respectively.
Supplemental Condensed Consolidating Statement of Income
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF
OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
Three Months Ended March 31, 2018
 
 
SGC (Parent)
 
SGI (Issuer1)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
 
$
—

 
$
129.6

 
$
386.9

 
$
368.9

 
$
(73.6
)
 
$
811.8

Cost of services, cost of product sales and cost of instant products (2)
 
—

 
86.3

 
118.4

 
153.1

 
(61.1
)
 
296.7

SG&A
 
37.8

 
10.9

 
57.4

 
78.8

 
(13.3
)
 
171.6

R&D
 
—

 
0.4

 
22.9

 
30.5

 
—

 
53.8

D&A
 
9.2

 
7.6

 
126.1

 
48.4

 
(3.2
)
 
188.1

Restructuring and other
 
26.1

 
0.8

 
1.5

 
23.8

 
—

 
52.2

Operating (loss) income
 
(73.1
)
 
23.6

 
60.6

 
34.3

 
4.0

 
49.4

Interest expense
 
—

 
(154.4
)
 
—

 
(0.4
)
 
—

 
(154.8
)
Loss on debt financing transactions
 
—

 
(93.2
)
 
—

 
—

 
—

 
(93.2
)
Other income (expense), net
 
15.6

 
136.1

 
(132.9
)
 
(15.8
)
 
—

 
3.0

Net (loss) income before equity in income of subsidiaries and income taxes
 
(57.5
)
 
(87.9
)
 
(72.3
)
 
18.1

 
4.0

 
(195.6
)
Equity in (loss) income of subsidiaries
 
(83.9
)
 
3.6

 
10.4

 
—

 
69.9

 
—

Income tax (expense) benefit
 
(60.4
)
 
33.2

 
25.3

 
(4.3
)
 
—

 
(6.2
)
Net (loss) income
 
$
(201.8
)
 
$
(51.1
)
 
$
(36.6
)
 
$
13.8

 
$
73.9

 
$
(201.8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income
 
52.1

 
(17.1
)
 
22.4

 
73.1

 
(78.4
)
 
52.1

Comprehensive (loss) income
 
$
(149.7
)
 
$
(68.2
)
 
$
(14.2
)
 
$
86.9

 
$
(4.5
)
 
$
(149.7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Issuer of obligations under the 2020 Notes, the 2021 Notes, the 2022 Secured Notes, which were redeemed in March 2018, the Unsecured Notes, the 2025 Secured Notes, which were issued in October 2017, and the 2026 Secured Euro Notes and 2026 Unsecured Euro Notes, which were issued in February 2018.
(2) Exclusive of D&A.
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF
OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Three Months Ended March 31, 2017
 
 
SGC (Parent)
 
SGI (Issuer1)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Revenue
 
$
—

 
$
118.0

 
$
399.8

 
$
264.6

 
$
(57.0
)
 
$
725.4

Cost of services, cost of product sales and cost of instant products (2)
 
—

 
82.9

 
123.7

 
121.8

 
(48.4
)
 
280.0

SG&A
 
29.7

 
9.5

 
48.8

 
62.4

 
(9.7
)
 
140.7

R&D
 
0.5

 
1.4

 
34.2

 
6.3

 
—

 
42.4

D&A
 
20.3

 
7.5

 
111.9

 
27.8

 
(2.4
)
 
165.1

Restructuring and other
 
3.8

 
0.2

 
4.2

 
1.0

 
—

 
9.2

Operating (loss) income
 
(54.3
)
 
16.5

 
77.0

 
45.3

 
3.5

 
88.0

Interest expense
 
(4.5
)
 
(154.6
)
 
—

 
(0.3
)
 
—

 
(159.4
)
Loss on early extinguishment of debt
 
(1.1
)
 
(28.6
)
 
—

 
—

 
—

 
(29.7
)
Other (expense) income, net
 
(20.8
)
 
50.7

 
(25.5
)
 
12.6

 
—

 
17.0

Net (loss) income before equity in income of subsidiaries and income taxes
 
(80.7
)

(116.0
)

51.5


57.6


3.5

 
(84.1
)
Equity in income of subsidiaries
 
4.7

 
17.3

 
15.4

 
—

 
(37.4
)
 
—

Income tax (expense) benefit
 
(24.8
)
 
43.4

 
(20.6
)
 
(14.7
)
 
—

 
(16.7
)
Net (loss) income
 
$
(100.8
)
 
$
(55.3
)
 
$
46.3

 
$
42.9

 
$
(33.9
)
 
$
(100.8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss) income
 
36.1

 
4.0

 
21.5

 
29.5

 
(55.0
)
 
36.1

Comprehensive (loss) income
 
$
(64.7
)
 
$
(51.3
)
 
$
67.8

 
$
72.4

 
$
(88.9
)
 
$
(64.7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Issuer of obligations under the 2020 Notes, the 2021 Notes, the 2022 Secured Notes, which were redeemed in March 2018, the Unsecured Notes and the 2025 Secured Notes, which were issued in October 2017.
(2) Exclusive of D&A.
Supplemental Condensed Consolidating Statement of Cash Flows
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Three Months Ended March 31, 2018
 
 
SGC (Parent)
 
SGI (Issuer1)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Net cash (used in) provided by operating activities
 
$
(32.0
)
 
$
(25.4
)
 
$
34.3

 
$
55.4

 
$
(2.4
)
 
$
29.9

Cash flows from investing activities:
 
 

 
 

 
 

 
 

 
 

 
 
Capital expenditures
 
(7.9
)
 
(17.1
)
 
(44.5
)
 
(18.5
)
 
—

 
(88.0
)
Acquisitions of businesses and assets, net of cash acquired
 
—

 
—

 
(9.6
)
 
(264.5
)
 
—

 
(274.1
)
Distributions of capital from equity investments
 
—

 
—

 
—

 
1.5

 
—

 
1.5

Other, principally change in intercompany investing activities
 
—

 
74.0

 
—

 
—

 
(74.0
)
 
—

Net cash (used in) provided by investing activities
 
(7.9
)
 
56.9

 
(54.1
)
 
(281.5
)
 
(74.0
)
 
(360.6
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds net of payments on long-term debt
 
—

 
7.1

 
—

 
(1.8
)
 
—

 
5.3

Repayment of assumed NYX debt
 
—

 
—

 
—

 
(288.2
)
 
—

 
(288.2
)
Payments of debt issuance and deferred financing costs
 
—

 
(38.5
)
 
—

 
—

 
—

 
(38.5
)
Payments on license obligations
 
(6.5
)
 
—

 
—

 
—

 
—

 
(6.5
)
Net redemptions of common stock under stock-based compensation plans and other
 
(15.9
)
 
—

 
(1.8
)
 
—

 
—

 
(17.7
)
Other, principally change in intercompany financing activities
 
(629.6
)
 
—

 
21.9

 
533.7

 
74.0

 
—

Net cash (used in) provided by financing activities
 
(652.0
)
 
(31.4
)
 
20.1

 
243.7

 
74.0

 
(345.6
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
—

 
—

 
—

 
1.9

 
—

 
1.9

(Decrease) increase in cash, cash equivalents and restricted cash
 
(691.9
)
 
0.1

 
0.3

 
19.5

 
(2.4
)
 
(674.4
)
Cash, cash equivalents and restricted cash, beginning of period
 
732.6

 
0.6

 
43.9

 
60.2

 
(3.2
)
 
834.1

Cash, cash equivalents and restricted cash end of period
 
$
40.7

 
$
0.7

 
$
44.2

 
$
79.7

 
$
(5.6
)
 
$
159.7

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Issuer of obligations under the 2020 Notes, the 2021 Notes, the 2022 Secured Notes, which were redeemed in March 2018, the Unsecured Notes, the 2025 Secured Notes, which were issued in October 2017, and the 2026 Secured Euro Notes and 2026 Unsecured Euro Notes, which were issued in February 2018.
SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Three Months Ended March 31, 2017

 
 
SGC (Parent)
 
SGI (Issuer1)
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminating
Entries
 
Consolidated
Net cash (used in) provided by operating activities
 
$
(62.2
)
 
$
(20.9
)
 
$
104.3

 
$
94.3

 
$
(4.5
)
 
$
111.0

Cash flows from investing activities:
 
 

 
 

 
 

 
 

 
 

 
 
Capital expenditures
 
(9.3
)
 
(4.7
)
 
(26.2
)
 
(21.1
)
 
—

 
(61.3
)
Acquisition of business, net of cash acquired
 
—

 
—

 
(21.5
)
 
—

 
—

 
(21.5
)
Distributions of capital from equity investments
 
—

 
—

 
—

 
1.3

 
—

 
1.3

Changes in other assets and liabilities and other
 
—

 
—

 
—

 
2.0

 
—

 
2.0

Other, principally change in intercompany investing activities
 
—

 
(221.9
)
 
—

 
(60.6
)
 
282.5

 
—

Net cash used in investing activities
 
(9.3
)
 
(226.6
)
 
(47.7
)
 
(78.4
)
 
282.5

 
(79.5
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
Net payments of long-term debt including proceeds and repurchases of senior notes and term loans
 
(250.0
)
 
274.0

 
—

 
(1.5
)
 
—

 
22.5

Payments of debt issuance and deferred financing costs
 
—

 
(27.2
)
 
—

 
—

 
—

 
(27.2
)
Payments on license obligations
 
(9.2
)
 
—

 
(0.6
)
 
—

 
—

 
(9.8
)
Net redemptions of common stock under stock-based compensation plans
 
(0.6
)
 
—

 
—

 
—

 
—

 
(0.6
)
Other, principally change in intercompany financing activities
 
336.4

 
—

 
(53.9
)
 
—

 
(282.5
)
 
—

Net cash provided by (used in) financing activities
 
76.6

 
246.8

 
(54.5
)
 
(1.5
)
 
(282.5
)
 
(15.1
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
—

 
—

 
—

 
2.5

 
—

 
2.5

Increase (decrease) in cash, cash equivalents and restricted cash
 
5.1

 
(0.7
)
 
2.1

 
16.9

 
(4.5
)
 
18.9

Cash, cash equivalents and restricted cash, beginning of period
 
32.7

 
1.7

 
41.0

 
82.6

 
(1.1
)
 
156.9

Cash, cash equivalents and restricted cash end of period
 
$
37.8

 
$
1.0

 
$
43.1

 
$
99.5

 
$
(5.6
)
 
$
175.8

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Issuer of obligations under the 2020 Notes, the 2021 Notes, the 2022 Secured Notes, which were redeemed in March 2018, the Unsecured Notes and the 2025 Secured Notes, which were issued in October 2017.