XML 30 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
Intangible Assets, net and Goodwill
 6 Months Ended
Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, net and Goodwill
Intangible Assets, net and Goodwill
Intangible Assets, net
The following tables present certain information regarding our intangible assets as of June 30, 2018 and December 31, 2017.
 
June 30, 2018
 
December 31, 2017
 
Gross Carrying Value
 
Accumulated Amortization
 
Net Balance
 
Gross Carrying Value
 
Accumulated Amortization
 
Net Balance
Amortizable intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
$
1,086.3

 
$
(257.6
)
 
$
828.7

 
$
881.4

 
$
(214.8
)
 
$
666.6

Intellectual property
919.8

 
(397.6
)
 
522.2

 
788.1

 
(332.7
)
 
455.4

Licenses
417.8

 
(236.4
)
 
181.4

 
419.5

 
(206.9
)
 
212.6

Brand names
124.7

 
(53.2
)
 
71.5

 
125.7

 
(46.5
)
 
79.2

Trade names
107.9

 
(18.6
)
 
89.3

 
98.7

 
(14.7
)
 
84.0

Patents and other
23.0

 
(12.9
)
 
10.1

 
27.1

 
(14.5
)
 
12.6

 
2,679.5

 
(976.3
)
 
1,703.2

 
2,340.5

 
(830.1
)
 
1,510.4

Non-amortizable intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Trade names
96.3

 
(2.1
)
 
94.2

 
96.3

 
(2.1
)
 
94.2

Total intangible assets
$
2,775.8

 
$
(978.4
)
 
$
1,797.4

 
$
2,436.8

 
$
(832.2
)
 
$
1,604.6

 

The following reflects intangible amortization expense included within D&A:
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018

2017
 
2018

2017
Amortization expense
$
75.6

 
$
68.9

 
$
152.7

 
$
130.8


Goodwill
Following the NYX acquisition, in the first quarter of 2018, we revised our operating segments as described in Note 3.
As a result of our resegmentation during the first quarter of 2018, we reviewed our operating segments in accordance with ASC 350 to determine if additional reporting units exist within our operating segments based on the availability of discrete financial information that is regularly reviewed by segment management. We determined that we have nine reporting units: Instant Products, U.S. Lottery Systems, International Lottery Systems, SG Gaming, legacy U.K. Gaming, Casino Management Systems, Table Products, Social Gaming, and SG Digital. The change in our reporting units resulted in the allocation of $116.9 million of the previous Interactive reporting unit goodwill balance to the new Social Gaming reporting unit with the remaining $7.5 million allocated to the new SG Digital reporting unit, which allocation was determined based on the relative fair value approach in accordance with ASC 350.

The table below reconciles the change in the carrying value of goodwill by business segment for the period from
December 31, 2017 to June 30, 2018.
Goodwill
 
Gaming
 
Lottery
 
Interactive
 
Social
 
Digital
 
Totals
Balance as of December 31, 2017
 
$
2,475.5

 
$
356.2

 
$
124.4

 
$
—

 
$
—

 
$
2,956.1

Reporting unit reallocation adjustment

 
—

 
—

 
(124.4
)
 
116.9

 
7.5

 
—

Acquired goodwill (1)

 
—

 
—

 
—

 
—

 
376.4

 
376.4

Foreign currency adjustments
 
(8.4
)
 
(1.8
)
 
—

 
(1.8
)
 
(7.7
)
 
(19.7
)
Balance as of June 30, 2018
 
$
2,467.1


$
354.4

 
$
—


$
115.1

 
$
376.2

 
$
3,312.8

(1) Tentative and preliminary based on our preliminary purchase price allocation as described in Note 1.