Restructuring Plans

3 Months Ended

Mar. 31, 2014

Restructuring and Related Activities [Abstract]

We recorded pre-tax employee termination and restructuring costs of $5.6 million and $0.3 million for the three months ended March 31, 2014 and 2013, respectively. All employee termination and restructuring initiatives reported in the three months ended March 31, 2013 were completed in that period and are not included in the tables below.

Upon our acquisition of WMS in October 2013, we began integrating Scientific Games and WMS and implementing our plans to streamline our operations and cost structure. We have recorded costs that meet the criteria under ASC 420, Exit and Disposal Cost Obligations, in each of our segments associated with integration activities that have been initiated in the relevant period. These costs include employee severance costs, costs relating to the exiting of facilities and costs related to exiting two immaterial businesses.

Unallocated corporate employee termination costs primarily relate to an accrual for cash severance due to our former chief executive officer that was recorded in the fourth quarter of 2013.

In December 2013, we initiated a plan to exit our Provoloto instant lottery game operations in Mexico, which was completed during the three months ended March 31, 2014. Employee termination and restructuring costs related to this initiative are included in our Instant Products segment.

The following table presents a summary of employee termination and restructuring costs by segment related to restructuring plans that were initiated as of March 31, 2014, including the costs incurred during the three months ended March 31, 2014, the cumulative costs incurred through March 31, 2014 since the relevant restructuring activities were initiated and the total expected cost related to the relevant restructuring activities that have been initiated. As additional integration-related activities are initiated, we expect to incur additional costs related to those activities.



Business Segment		Employee Termination Costs		Property Costs		Other		Total
Instant Products	2014 first quarter	$	0.4	$	—	$	—	$	0.4
	Cumulative	0.4		—		4.7		5.1
	Expected Total	0.4		—		4.7		5.1

Lottery Systems	2014 first quarter	—		—		—		—
	Cumulative	0.4		—		—		0.4
	Expected Total	0.4		—		—		0.4

Gaming	2014 first quarter	3.5		—		1.7		5.2
	Cumulative	7.3		1.0		5.5		13.8
	Expected Total	7.5		1.7		6.2		15.4

Unallocated corporate	2014 first quarter	—		—		—		—
	Cumulative	6.9		2.1		—		9.0
	Expected Total	6.9		2.1		—		9.0

Total	2014 first quarter	$	3.9	$	—	$	1.7	$	5.6
	Cumulative	$	15.0	$	3.1	$	10.2	$	28.3
	Expected Total	$	15.2	$	3.8	$	10.9	$	29.9

The following table presents a summary of employee termination and restructuring costs and changes in the related accruals.



	Employee Termination Costs			Property Costs			Other			Total
Balance as of December 31, 2013	$	9.3		$	2.8		$	0.1		$	12.2
Accrual additions	3.9			—			1.7			5.6
Cash payments	(4.4		)	(0.1		)	(1.4		)	(5.9		)
Non-cash expense	(0.1		)	(0.2		)	—			(0.3		)
Balance as of March 31, 2014	$	8.7		$	2.5		$	0.4		$	11.6

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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