Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2020shares | |
Entity Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2020 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-36906 |
Entity Registrant Name | INTERNATIONAL GAME TECHNOLOGY PLC |
Entity Incorporation, State or Country Code | X0 |
Entity Address, Address Line One | 66 Seymour Street, 2nd Floor |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | W1H 5BT |
Entity Address, Country | GB |
Title of 12(b) Security | Ordinary Shares, nominal value $0.10 |
Trading Symbol | IGT |
Entity Common Stock, Shares Outstanding | 204,856,564 |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001619762 |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Well-known Seasoned Issuer | Yes |
Security Exchange Name | NYSE |
Business Contact | |
Entity Information [Line Items] | |
Entity Address, Address Line One | IGT Center, 10 Memorial Boulevard |
Entity Address, City or Town | Providence |
Entity Address, State or Province | RI |
Entity Address, Postal Zip Code | 02903 |
Contact Personnel Name | Christopher Spears |
City Area Code | 401 |
Local Phone Number | 392-1000 |
Contact Personnel Fax Number | (401) 392-4812 |
Contact Personnel Email Address | Christopher.Spears@IGT.com |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 907,015 | $ 654,628 |
Restricted cash and cash equivalents | 199,246 | 220,962 |
Trade and other receivables, net | 846,128 | 875,263 |
Inventories | 169,207 | 161,790 |
Other current assets | 479,649 | 513,015 |
Total current assets held for sale | 838,840 | 208,379 |
Total current assets | 3,440,085 | 2,634,037 |
Systems, equipment and other assets related to contracts, net | 1,068,121 | 1,205,592 |
Property, plant and equipment, net | 131,602 | 146,055 |
Operating lease right-of-use assets | 288,196 | 296,751 |
Goodwill | 4,713,489 | 4,931,235 |
Intangible assets, net | 1,577,354 | 1,749,614 |
Other non-current assets | 1,773,641 | 1,917,751 |
Assets held for sale | 0 | 763,555 |
Total non-current assets | 9,552,403 | 11,010,553 |
Total assets | 12,992,488 | 13,644,590 |
Current liabilities: | ||
Accounts payable | 1,126,043 | 1,059,033 |
Current portion of long-term debt | 392,672 | 462,155 |
Short-term borrowings | 480 | 3,193 |
Other current liabilities | 846,273 | 758,818 |
Liabilities held for sale | 249,573 | 185,152 |
Total current liabilities | 2,615,041 | 2,468,351 |
Long-term debt, less current portion | 7,857,086 | 7,600,169 |
Deferred income taxes | 333,010 | 393,040 |
Operating lease liabilities | 266,227 | 272,350 |
Other non-current liabilities | 359,961 | 395,866 |
Liabilities held for sale | 0 | 29,836 |
Total non-current liabilities | 8,816,284 | 8,691,261 |
Total liabilities | 11,431,325 | 11,159,612 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Common stock, par value $0.10 per share; 204,856,564 and 204,435,333 shares issued and outstanding at December 31, 2020 and 2019, respectively | 20,485 | 20,443 |
Additional paid-in capital | 2,346,921 | 2,395,532 |
Retained deficit | (1,920,484) | (1,020,238) |
Accumulated other comprehensive income | 329,815 | 262,525 |
Total IGT PLC’s shareholders’ equity | 776,737 | 1,658,262 |
Non-controlling interests | 784,426 | 826,716 |
Total shareholders’ equity | 1,561,163 | 2,484,978 |
Total liabilities and shareholders’ equity | $ 12,992,488 | $ 13,644,590 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares issued | 204,856,564 | 204,435,333 |
Common stock, shares outstanding | 204,856,564 | 204,435,333 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | $ 3,115,456 | $ 4,031,757 | $ 3,980,872 |
Selling, general and administrative | 706,895 | 849,620 | 845,503 |
Research and development | 190,948 | 266,241 | 263,279 |
Restructuring | 45,045 | 24,855 | 14,781 |
Goodwill impairment | 296,000 | 99,000 | 118,000 |
Other operating expense (income), net | 4,334 | (21,111) | 2,458 |
Total operating expenses | 3,222,921 | 3,553,841 | 3,507,275 |
Operating (loss) income | (107,465) | 477,916 | 473,597 |
Interest expense, net | (397,916) | (410,875) | (417,383) |
Foreign exchange (loss) gain, net | (308,898) | 39,874 | 129,086 |
Other (expense) income, net | (33,428) | 21,092 | (51,432) |
Total non-operating expenses | (740,242) | (349,909) | (339,729) |
(Loss) income from continuing operations before provision for income taxes | (847,707) | 128,007 | 133,868 |
Provision for income taxes | 27,698 | 130,757 | 144,164 |
Loss from continuing operations | (875,405) | (2,750) | (10,296) |
Income from discontinued operations, net of tax | 36,681 | 114,408 | 124,943 |
Net (loss) income | (838,724) | 111,658 | 114,647 |
Less: Net income attributable to non-controlling interests from continuing operations | 63,926 | 126,144 | 108,758 |
Less: Redeemable non-controlling interests in income from continuing operations | 0 | 0 | 20,326 |
Less: Net (loss) income attributable to non-controlling interests from discontinued operations | (4,760) | 4,539 | 6,913 |
Net loss attributable to IGT PLC | $ (897,890) | $ (19,025) | $ (21,350) |
Net loss from continuing operations attributable to IGT PLC per common share - basic and diluted (in dollars per share) | $ (4.59) | $ (0.63) | $ (0.68) |
Net loss attributable to IGT PLC per common share - basic and diluted (in dollars per share) | $ (4.39) | $ (0.09) | $ (0.10) |
Weighted-average shares - basic and diluted (in shares) | 204,725 | 204,373 | 204,083 |
Service | |||
Revenue | $ 2,639,558 | $ 3,100,868 | $ 3,195,930 |
Cost of services and product sales | 1,633,899 | 1,777,225 | 1,772,224 |
Product | |||
Revenue | 475,898 | 930,889 | 784,942 |
Cost of services and product sales | $ 345,800 | $ 558,011 | $ 491,030 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (838,724) | $ 111,658 | $ 114,647 |
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Foreign currency translation adjustments, net of tax | 127,551 | (16,527) | (90,784) |
Unrealized loss on hedges, net of tax | (537) | (1,451) | (1,531) |
Unrealized (loss) gain on other, net of tax | (269) | 3,060 | (5,008) |
Other comprehensive income (loss), net of tax | 126,745 | (14,918) | (97,323) |
Comprehensive (loss) income | (711,979) | 96,740 | 17,324 |
Less: Comprehensive income attributable to non-controlling interests | 118,621 | 114,777 | 96,980 |
Less: Comprehensive income attributable to redeemable non-controlling interests | 0 | 0 | 20,326 |
Comprehensive loss attributable to IGT PLC | $ (830,600) | $ (18,037) | $ (99,982) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands, € in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Cash flows from operating activities | |||
Net (loss) income | $ (838,724) | $ 111,658 | $ 114,647 |
Income from discontinued operations, net of tax | 36,681 | 114,408 | 124,943 |
Adjustments to reconcile net (loss) income from continuing operations to net cash provided by (used in) operating activities from continuing operations: | |||
Depreciation | 354,854 | 385,987 | 383,591 |
Foreign exchange loss (gain), net | 308,898 | (39,874) | (129,086) |
Goodwill impairment | 296,000 | 99,000 | 118,000 |
Amortization | 211,340 | 227,956 | 223,902 |
Amortization of upfront license fees | 210,432 | 205,739 | 217,341 |
Loss on extinguishment of debt | 28,265 | 11,964 | 54,423 |
Debt issuance cost amortization | 21,327 | 22,436 | 22,042 |
Gain on sale of assets | (27) | (64,714) | (318) |
Stock-based compensation | (6,877) | 26,514 | 33,086 |
Deferred income taxes | (78,207) | (68,293) | (34,494) |
Other non-cash items, net | (1,675) | 18,942 | 29,027 |
Changes in operating assets and liabilities, excluding the effects of dispositions and acquisitions: | |||
Trade and other receivables | 73,578 | (49,267) | (72,133) |
Inventories | 16,628 | 84,472 | 12,556 |
Accounts payable | 4,595 | 28,247 | (56,256) |
Upfront license fees | 0 | 0 | (878,055) |
Other assets and liabilities | 31,076 | 20,981 | (136,939) |
Net cash provided by (used in) operating activities from continuing operations | 594,802 | 907,340 | (223,609) |
Net cash provided by operating activities from discontinued operations | 270,829 | 185,795 | 253,235 |
Net cash provided by operating activities | 865,631 | 1,093,135 | 29,626 |
Cash flows from investing activities | |||
Capital expenditures | (254,689) | (377,248) | (472,278) |
Proceeds from sale of assets | 9,251 | 123,855 | 19,118 |
Other | 12,151 | 5,851 | 2,272 |
Net cash used in investing activities from continuing operations | (233,287) | (247,542) | (450,888) |
Net cash used in investing activities from discontinued operations | (35,284) | (64,648) | (60,649) |
Net cash used in investing activities | (268,571) | (312,190) | (511,537) |
Cash flows from financing activities | |||
Principal payments on long-term debt | (988,379) | (1,264,647) | (1,899,888) |
Payments in connection with the extinguishment of debt | (25,000) | (8,689) | (49,976) |
Payments of debt issuance costs | (21,584) | (25,930) | (17,033) |
Net (payments of) proceeds from short-term borrowings | (7,135) | (32,067) | 34,822 |
Net receipts from (payments of) financial liabilities | 67,138 | (34,324) | 7,123 |
Proceeds from long-term debt | 750,000 | 1,397,025 | 1,687,761 |
Dividends paid | (40,887) | (163,503) | (163,236) |
Dividends paid - non-controlling interests | (136,389) | (136,655) | (126,926) |
Return of capital - non-controlling interests | (32,309) | (98,788) | (85,121) |
Capital increase - non-controlling interests | 8,112 | 1,499 | 321,584 |
Other | (11,426) | (10,195) | (20,655) |
Net cash used in financing activities | (437,859) | (376,274) | (311,545) |
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | 159,201 | 404,671 | (793,456) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | 75,770 | (22,197) | (197) |
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period | 894,251 | 511,777 | 1,305,430 |
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period | 1,129,222 | 894,251 | 511,777 |
Less: Cash and cash equivalents and restricted cash and cash equivalents of discontinued operations | 22,961 | 18,661 | 23,749 |
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period of continuing operations | 1,106,261 | 875,590 | 488,028 |
Cash paid during the period for: | |||
Interest | (409,560) | (400,022) | (445,694) |
Income taxes | (89,006) | (196,831) | (178,547) |
Non-cash investing and financing activities: | |||
Capital expenditures | $ (24,152) | $ (34,878) | $ (40,915) |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Total IGT PLC Equity | Total IGT PLC EquityCumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Retained Deficit | Retained DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income | Non- Controlling Interests |
Balance, beginning of period at Dec. 31, 2017 | $ 2,354,931 | $ 45,527 | $ 2,004,995 | $ 45,527 | $ 20,344 | $ 2,676,854 | $ (1,032,372) | $ 45,527 | $ 340,169 | $ 349,936 |
Shares of common stock outstanding | ||||||||||
Net (loss) income | 94,321 | (21,350) | (21,350) | 115,671 | ||||||
Other comprehensive (loss) income, net of tax | (97,323) | (78,632) | (78,632) | (18,691) | ||||||
Total comprehensive income (loss) | (3,002) | (99,982) | (21,350) | (78,632) | 96,980 | |||||
Reclassification of redeemable non-controlling interests | 377,243 | 377,243 | ||||||||
Capital increase | 319,254 | 319,254 | ||||||||
Stock-based compensation | 33,086 | 33,086 | 33,086 | |||||||
Shares issued upon exercise of stock options | (1,551) | (1,551) | 15 | (1,566) | ||||||
Shares issued under stock award plans | (11,091) | (11,091) | 62 | (11,153) | ||||||
Return of capital | (85,046) | (85,046) | ||||||||
Dividends paid | (277,573) | (163,236) | (163,236) | (114,337) | ||||||
Other | 151 | 151 | 149 | 2 | ||||||
Balance, end of period at Dec. 31, 2018 | 2,751,929 | 1,807,899 | 20,421 | 2,534,134 | (1,008,193) | 261,537 | 944,030 | |||
Shares of common stock outstanding | ||||||||||
Net (loss) income | 111,658 | (19,025) | (19,025) | 130,683 | ||||||
Other comprehensive (loss) income, net of tax | (14,918) | 988 | 988 | (15,906) | ||||||
Total comprehensive income (loss) | 96,740 | (18,037) | (19,025) | 988 | 114,777 | |||||
Capital increase | 1,499 | 1,499 | ||||||||
Stock-based compensation | 26,514 | 26,514 | 26,514 | |||||||
Shares issued under stock award plans | (1,591) | (1,591) | 22 | (1,613) | ||||||
Return of capital | (98,872) | (98,872) | ||||||||
Dividends paid | (300,339) | (163,503) | (163,503) | (136,836) | ||||||
Other | 9,098 | 6,980 | 6,980 | 2,118 | ||||||
Balance, end of period at Dec. 31, 2019 | 2,484,978 | 1,658,262 | 20,443 | 2,395,532 | (1,020,238) | 262,525 | 826,716 | |||
Shares of common stock outstanding | ||||||||||
Net (loss) income | (838,724) | (897,890) | (897,890) | 59,166 | ||||||
Other comprehensive (loss) income, net of tax | 126,745 | 67,290 | 67,290 | 59,455 | ||||||
Total comprehensive income (loss) | (711,979) | (830,600) | (897,890) | 67,290 | 118,621 | |||||
Capital increase | 9,321 | 390 | 390 | 8,931 | ||||||
Stock-based compensation | (6,877) | (6,877) | (6,877) | |||||||
Shares issued under stock award plans | (1,195) | (1,195) | 42 | (1,237) | ||||||
Return of capital | (32,238) | (32,238) | ||||||||
Dividends paid | (178,498) | (40,887) | (40,887) | (137,611) | ||||||
Other | (2,349) | (2,356) | (2,356) | 7 | ||||||
Balance, end of period at Dec. 31, 2020 | $ 1,561,163 | $ 776,737 | $ 20,485 | $ 2,346,921 | $ (1,920,484) | $ 329,815 | $ 784,426 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business International Game Technology PLC (the “Parent”), together with its consolidated subsidiaries (collectively referred to as “IGT PLC,” the “Company,” “we,” “our,” or “us”), is a global leader in gaming that delivers entertaining and responsible gaming experiences for players across all channels and regulated segments, from gaming machines and lotteries to sports betting and digital. We operate and provide an integrated portfolio of innovative gaming technology products and services, including: lottery management services, online and instant lottery systems, gaming systems, instant ticket printing, electronic gaming machines, sports betting, digital gaming, and commercial services. We have a local presence and relationships with governments and regulators in more than 100 countries around the world. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Preparation The accompanying consolidated financial statements and notes of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements are stated in thousands of U.S. dollars (except share and per share data) unless otherwise indicated. We have reclassified certain prior period amounts to align with the current period presentation and recast certain prior period amounts, as discussed below. All references to “U.S. dollars,” “U.S. dollar,” “U.S. $,” “USD,” and “$” refer to the currency of the United States of America. All references to “euro,” “EUR,” and “€” refer to the currency introduced at the start of the third stage of the European Economic and Monetary Union pursuant to the Treaty on the Functioning of the European Union, as amended. During the fourth quarter of fiscal 2020, the Company announced that its wholly-owned subsidiary, Lottomatica, had entered into a definitive agreement to sell one hundred percent of the share capital of Lottomatica Videolot Rete S.p.A. and Lottomatica Scommesse S.r.l., the members of the IGT group which conduct its Italian B2C gaming machine, sports betting, and digital gaming businesses, to Gamenet Group S.p.A The Company’s Italian Gaming B2C business met the criteria to be reported as a discontinued operation and, as a result, the Italian Gaming B2C historical financial results are reflected in the Company's consolidated financial statements as a discontinued operation, and assets and liabilities were retrospectively reclassified as assets and liabilities held for sale for all periods presented. Refer to Note 3 - Discontinued Operations and Assets Held for Sale for further information. Principles of Consolidation The consolidated financial statements include the accounts of the Parent, our majority-owned or controlled subsidiaries, and any variable interest entities in which we are the primary beneficiary. Intercompany accounts and transactions have been eliminated in consolidation. Earnings or losses attributable to non-controlling interests in a subsidiary are included in net (loss) income in the consolidated statements of operations. Investments in which we have the ability to exercise significant influence, but do not control, and with respect to which we are not the primary beneficiary, are accounted for using the equity method of accounting. Equity investments in which we have no ability to exercise significant influence that do not have a readily determinable fair value and do not have a Net Asset Value per share are measured at cost, less impairment, plus or minus changes resulting from observable price changes. Equity method investments are included within other non-current assets on the consolidated balance sheets. Recasting of Certain Prior Period Information On July 1, 2020, we adopted a new organizational structure focused on two business segments: Global Lottery and Global Gaming, along with a streamlined corporate support function. During the third quarter of 2020, our chief operating decision maker, who is also our Chief Executive Officer, requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. As a result, we report our financial performance based on our new business segments described in Note 21 – Segment Information. We have recast our historically presented comparative segment information to conform to the way we internally manage and monitor segment performance as of the third quarter of 2020. This realignment of our operating segments has a pervasive impact on the presentation of our comparative period data. This change primarily impacted Note 4 - Revenue Recognition , Note 5 - Trade and Other Receivables, net , Note 7 - Other Assets , Note 12 - Restructuring , Note 13 - Goodwill , and Note 21 – Segment Information , with no impact on consolidated revenue, net income, or cash flows. Assets and Liabilities Held for Sale The Company classifies assets and liabilities (disposal groups) to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the disposal group; the disposal group is available for immediate sale in its present condition subject to terms customary for sales of such disposal groups; an active program to locate a buyer and other actions required to complete the plan to sell the disposal group have been initiated; the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale within one year; the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a disposal group until the date of sale. The Company assesses the fair value of a disposal group, less any costs to sell, each reporting period it remains classified as held for sale and reports any subsequent changes as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the carrying value of the disposal group at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets held for sale and liabilities held for sale in the consolidated statements of financial position in each period presented. Refer to Note 3 - Discontinued Operations and Assets Held for Sale , for further information. Use of Estimates The preparation of our consolidated financial statements requires us to make estimates, judgments, and assumptions which affect the reported amounts of assets, liabilities, equity, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis we evaluate our estimates, judgments, and methodologies. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities, and equity, and the amount of revenues and expenses. The full extent to which the outbreak of a new strain of coronavirus, COVID-19 (“COVID-19”), will directly or indirectly impact our business, results of operations, and financial condition, including sales, expenses, reserves and allowances, manufacturing, research and development costs, and employee-related amounts, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain it or treat it, as well as the economic impact on local, regional, national, and international customers and markets. We have made estimates of the impact of COVID-19 within our financial statements and there may be changes to those estimates in future periods. Actual results may differ from these estimates. Given the anticipated continued impact of COVID-19 and the resulting extended economic slowdown, we have revised our forecast, evaluated our liquidity position, and evaluated our ability to comply with the amended financial covenants in our debt agreements as of the date of issuance of these consolidated financial statements. Based on the revised forecast, management believes that our financial position, forecasted net cash provided by operations, available cash and cash equivalents at December 31, 2020, and borrowing capacity under our amended Revolving Credit Facilities due July 2024 as described in Note 16 - Debt , will be sufficient to fund our current obligations, capital spending, debt service requirements, and working capital requirements over at least the next twelve months. Revenue Recognition We account for a contract with a customer when: i. we have written approval; ii. the contract is committed; iii. the rights of the parties, including payment terms, are identified; iv. the contract has commercial substance; and v. collectability of consideration is probable. A performance obligation is a promise in a contract with a customer to transfer products or services that are distinct. If we enter into two or more contracts at or near the same time, the contracts may be combined and accounted for as one contract, in which case we determine whether the services or products in the combined contract are distinct. A service or product that is promised to a customer is distinct if both of the following criteria are met: • The customer can benefit from the service or product either on its own or together with other resources that are readily available to the customer; and • Our promise to transfer the service or product to the customer is separately identifiable from other promises in the contract. Revenue is recognized when (or as) control of a promised service or product transfers to a customer, in an amount that reflects the consideration (which represents the transaction price) to which we expect to be entitled in exchange for transferring that service or product. If the consideration promised in a contract includes a variable amount, we estimate the amount to which we expect to be entitled using either the expected value or most likely amount method. Our contracts may include terms that could cause variability in the consideration, including, for example, rebates, volume discounts, service-level penalties, and performance bonuses or other forms of contingent revenue. Our standard payment terms dictate that payment is due upon receipt of invoice, payable within 30 days. Invoices are generally issued as control transfers and/or as services are rendered. Additionally, in determining the transaction price, we adjust the promised amount of consideration for the effects of the time value of money if the payment terms are not standard and the timing of payments agreed to by the parties to the contract provide the customer or the Company with a significant benefit of financing, in which case the contract contains a significant financing component. Most arrangements that contain a significant financing component include explicit financing terms. We may include subcontractor services or third-party vendor services or products in certain arrangements. In these arrangements, revenue from sales of third-party vendor services or products are recorded net of costs when we are acting as an agent between the customer and the vendor, and gross when we are the principal for the transaction. To determine whether we are an agent or principal, we consider whether we obtain control of the services or products before they are transferred to the customer. In making this evaluation, several factors are considered, most notably whether we have primary responsibility for fulfillment to the customer, as well as inventory risk and pricing discretion. Service Revenue Service revenue is derived from the following sources: • Operating and Facilities Management Contracts; • Gaming terminal services; and • System, software and other Operating and Facilities Management Contracts Our revenue from operating contracts is derived primarily from long-term exclusive operating licenses in Italy. Under operating contracts, we manage all the activities along the lottery value chain including collecting wagers, paying out prizes, managing all accounting and other back-office functions, running advertising and promotions, operating data transmission networks and processing centers, training staff, providing retailers with assistance, and supplying materials for the game. In most cases, the arrangement is accounted for as a single performance obligation composed of a series of distinct services that are substantially the same and have the same pattern of transfer (i.e., distinct days of service). Under operating contracts, we typically satisfy the performance obligation and recognize revenue over time because the customer simultaneously receives and consumes the benefits provided as we perform the services. The amount of consideration to which we are typically entitled is variable based on a percentage of sales. Revenue is typically recognized in the amount that we have the right to invoice the customer as this corresponds directly with the value to the customer of our performance completed to date. In arrangements where we are performing services on behalf of the government and the government is considered our customer, revenue is recognized net of prize payments, taxes, retailer commissions, and remittances to state authorities. Under operating contracts, we are generally required to pay an upfront license fee. Refer to the Upfront License Fee policy below for further details. Our revenue from facilities management contracts (“FMC”) is generated by assembling, installing, and operating the online lottery system and related point-of-sale equipment. Under a typical FMC, we maintain ownership of the technology and are responsible for capital investments throughout the duration of the contract. FMCs typically include a wide range of support services that are provided throughout the contract and are part of the integrated solution that the customer has contracted to obtain. In most cases, the arrangement is accounted for as a single performance obligation composed of a series of distinct services that are substantially the same and that have the same pattern of transfer. Under FMCs, we typically satisfy the performance obligation and recognize revenue over time because the customer simultaneously receives and consumes the benefits provided as we perform the services. The amount of transaction price to which we are entitled is typically variable based on a percentage of sales, although under certain of its agreements, the Company receives fees based on a fixed fee arrangement. Revenue is typically recognized in the amount that we have the right to invoice the customer, as this corresponds directly with the value to the customer of our completed performance. Gaming terminal services Our revenue from gaming terminal services is generated by providing customers with proprietary land-based gaming systems and equipment under a variety of recurring revenue or lease arrangements, including a percentage of amounts wagered, a percentage of net win, or a fixed daily/monthly fee. Included in gaming terminal services are wide area progressive (“WAP”) systems. WAP systems consist of linked slot machines located in multiple casino properties, connected to a central computer system. WAP systems include a Company-sponsored progressive jackpot that increases with every wager until a player wins the top award combination. Casinos with WAP machines pay a percentage of amounts wagered for services related to the design, assembly, installation, operation, maintenance, and marketing of the WAP systems, as well as funding and administration of Company-sponsored progressive jackpots. A portion of the total fee collected is allocated to the WAP jackpot. Since the jackpot is a payment to the customer, the portion allocated to the jackpot is classified as a reduction of revenue. In some arrangements, there is a single performance obligation composed of a series of distinct services that are substantially the same and that have the same pattern of transfer (i.e., distinct days of service). The amount of transaction price to which we are entitled typically is variable based on a percentage of wagers. This results in revenue recognition that corresponds with the value to the customer for the services transferred in the amount that we have the right to invoice. In other arrangements where the end customer is the player, we record revenue net of prize payouts once the wagering outcome has been determined. Systems, software, and other – Global Lottery Our lottery contracts generally include other services, including telephone support, software maintenance, hardware maintenance, and the right to receive unspecified upgrades or enhancements on a when-and-if-available basis, and other professional services including software development. Fees earned for other services are generally recognized as service revenue in the period the service is performed (i.e., over the support period). We also develop technology to enable lotteries to offer commercial services over their existing lottery infrastructure or over standalone networks separate from the lottery. Leveraging our distribution network and secure transaction processing, we offer high-volume processing of commercial transactions including: prepaid cellular telephone recharges, bill payments, e-vouchers and retail-based programs, electronic tax payments, stamp duty services, prepaid card recharges, and money transfers. These services are primarily offered outside of North America. In most cases, these arrangements are considered to be short in duration. The amount of transaction price that we are typically entitled to is variable based on the number of transactions processed. Revenue is typically recognized in the amount that we have the right to invoice the customer as this corresponds directly with the value to the customer of our completed performance. Systems, software, and other – Global Gaming We also generate revenue from other services, including video central system monitoring, system support, licensing of IP, and sports betting. Our contracts generally include other services, including telephone support, software maintenance, content licensing, royalty fees, hardware maintenance, and the right to receive unspecified updates or enhancements on a when-and-if-available basis, and other professional services. Fees earned for other services are generally recognized as service revenue in the period the service is performed (i.e., over the support period). We provide sports betting technology and services to commercial and tribal operators and lotteries in regulated markets, primarily in the U.S. In the service contracts to our U.S. licensed sports book operators, we provide the sports betting platform and a variety of services including installation, configuration and integration services. For customers who want to have an outsourcing model, we also offer trading services with the inclusion of odds setting and risk management. Under these contracts, we generally record a percentage of net sports revenue over the contractual term. Product Sales Product sales are derived from the following sources: • Lottery products • Gaming terminals • Gaming other Lottery products Lottery product revenue primarily includes the sale of lottery equipment, lottery systems and printed products. Our revenue from the sale of lottery systems and equipment typically includes multiple performance obligations, where we assemble, sell, deliver, and install a turnkey system (inclusive of point-of-sale terminals, if applicable) or deliver equipment and license the computer software for a fixed price, and the customer subsequently operates the system or equipment. Our credit terms are predominantly short-term in nature. We also grant extended payment terms under contracts where the sale is typically secured by the related equipment sold. Revenue from the sale of lottery systems and equipment is recognized based upon the contractual terms of each arrangement. These arrangements generally include customer acceptance provisions and general rights to terminate the contract if we are in breach of the contract or at the convenience of the customer. In these arrangements, the performance obligation is satisfied over time if the customer controls the asset as it is created (i.e., when the asset is built at the customer site) or if our performance does not create an asset with an alternative use and we have an enforceable right to payment plus a reasonable profit for performance completed to date. If revenue is not recognized over time, it is generally recognized upon transfer of physical possession of the goods or the satisfaction of customer acceptance provisions. If the transaction includes multiple performance obligations, it is accounted for under arrangements with multiple performance obligations, discussed below. Our other lottery product sales are primarily derived from the production and sales of instant ticket games under multi-year contracts. In these arrangements, the performance obligation is generally satisfied at a point in time (i.e., upon transfer of control of the game tickets to the customer) based on the contractual terms of each arrangement. Gaming terminals Our revenue from the sale or sales-type lease of gaming terminals includes embedded game content, machine related equipment, licensing and royalty fees, and component parts. Our credit terms are predominantly short-term in nature. We also grant extended payment terms under contracts where the sale is typically secured by the related equipment sold. Revenue from the sale of gaming machines is recognized based upon the contractual terms of each arrangement, but predominantly upon transfer of physical possession of the goods or the lapse of customer acceptance provisions. If the sale of gaming machines includes multiple performance obligations, these arrangements are accounted for under arrangements with multiple performance obligations, discussed below. Gaming other Other gaming product revenue is primarily comprised of gaming system sales, content licensing, software sales, non-machine related equipment and component parts (including game themes and electronic conversion kits). Our revenue from the sale of gaming systems typically includes multiple performance obligations, where we sell, deliver, and install a turnkey system or deliver equipment and license the computer software for a fixed price, and the customer subsequently operates the system. These arrangements generally include customer acceptance provisions and general rights to terminate the contract if we are in breach of the contract. Such arrangements include hardware, software, and professional services. In these arrangements, the performance obligation is generally satisfied upon transfer of physical possession of the goods or the satisfaction of customer acceptance provisions. Arrangements with Multiple Performance Obligations We often enter into contracts that consist of a combination of services and products based on the needs of our customers, which may include post-contract support for the software and a contract for post-warranty maintenance service for the hardware. These contracts consist of multiple services and products, whereby the hardware and software may be delivered in one period and the software support and hardware maintenance services are delivered over time. To the extent that a service or product in an arrangement with multiple performance obligations is subject to other specific accounting guidance, that service or product is accounted for in accordance with such specific guidance. For all other distinct services and products in these arrangements, the arrangement transaction price is allocated to each performance obligation on a relative standalone selling price basis or another method that depicts the amount of consideration to which we expect to be entitled in exchange for transferring the promised services or products. If the services and products are not distinct, we determine an appropriate measure of progress based on the nature of our overall promise for the single performance obligation. To the extent we grant the customer the option to acquire additional services or products in one of these arrangements, we account for the option as a distinct performance obligation in the contract only if the option provides a material right to the customer that it would not receive without entering into the contract (i.e., a significant discount incremental to the range of discounts typically given for the service or product), in which case the customer in effect pays in advance for the option to purchase future services or products. We allocate a portion of the transaction price to the material right and recognize revenue when those future services or products are transferred or when the option expires. Standalone Selling Price We allocate the transaction price to each performance obligation on a relative standalone selling price (“SSP”) basis. The SSP is the price at which we would sell a promised service or product separately to a customer. In some instances, we are able to establish SSP based on the observable prices of services or products sold separately in comparable circumstances to a similar customer. We typically establish an SSP range for our services and products that are reassessed on a periodic basis or when facts and circumstances change. In other instances, we may not be able to establish an SSP range based on observable prices, and we estimate the SSP by considering multiple factors including, but not limited to, overall market conditions, including geographic or regional specific factors, competitive positioning, competitor actions, internal costs, profit objectives, and pricing practices. Estimating SSP is a formal process that includes review and approval by management. Contract Costs Certain eligible, non-recurring costs incurred in the initial phases of service contracts are deferred and amortized ratably over the expected period of benefit, which includes anticipated contract renewals or extensions. Recurring operating costs in these contracts are recognized as incurred. Practical Expedients and Exemptions We report revenue net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions. We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses in our consolidated statements of operations. For certain of our long-term contracts, we capitalize and amortize incremental costs of obtaining a contract (e.g., sales commissions) on a straight-line basis over the expected customer relationship period if we expect to recover those costs. We do not account for significant financing components if the period between when we transfer the promised service or product to the customer and when the customer pays for that service or product will be one year or less. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) performance obligations for which we recognize revenue at the amount that we have the right to invoice for services performed, (iii) contracts for which variable consideration is accounted for in accordance with sales-based or usage-based royalty guidance, and (iv) wholly unperformed contracts. Contract Assets and Liabilities Contract assets arise from contracts when revenue is recognized over time and the amount of revenue recognized exceeds the amount billed to the customer. These amounts are included in contract assets until the right to payment is no longer conditional on events other than the passage of time. Contract liabilities include deferred revenue, advance payments, and billings in excess of revenue recognized. Stock-Based Compensation Stock-based compensation represents the cost related to stock-based awards granted to directors and employees. Stock-based compensation cost is measured at the grant date or modification date, based on the estimated fair value of the award and recognized as expense, net of estimated forfeitures, over the vesting period(s). For awards subject to cliff vesting, compensation cost is recognized by way of a straight-line method over the award’s expected vesting period. For awards subject to graded vesting, compensation cost is recognized by way of an accelerated attribution method over the entire awards’ expected vesting periods. Advertising Advertising costs are expensed as incurred. Advertising expense was $25.0 million, $34.2 million, and $51.9 million for the years ended December 31, 2020, 2019, and 2018, respectively. Research and Development Costs Research and development costs (“R&D”), which include salaries and benefits, stock-based compensation, consultants’ fees, facilities-related costs, material costs, depreciation, and travel, are expensed as incurred. Cash and Cash Equivalents Cash and cash equivalents consist primarily of highly liquid investments purchased with an original maturity of three months or less at the date of acquisition, such as bank deposits, money market funds, and interest bearing bank accounts with insignificant interest rate risk. The fair value of cash and cash equivalents approximates the carrying amount. Restricted Cash and Cash Equivalents We are required by gaming regulation to maintain sufficient reserves in restricted cash accounts to be used for the purpose of funding payments to WAP jackpot winners. These restricted cash balances are based primarily on the jackpot meters displayed to slot players, or for previously won jackpots, and vary by jurisdiction. Under our Italian Lotto contract, we deposit wagers, net of prizes paid and retailer commissions retained by the retailer at point of sale, into bank accounts, the use of which is restricted based on the contract with our customer. Restricted cash is also maintained for interactive digital player deposits, collections on factored and serviced receivables not yet paid through to the third-party owner, and for customer funds received in relation to the provision of our commercial services. These amounts are restricted based on the contracts with our customers or local regulations. Allowance for Credit Losses We maintain an allowance for credit losses on receivables resulting from the expected failure or inability of our customers to make required payments. The allowance is regularly reviewed by considering factors such as the creditworthiness of our customers, historical experience, aging of receivables, and current market and economic conditions, as well as management’s expectations of future conditions when appropriate. The allowance is deducted from the amortized cost basis of the receivable to present the net amount expected to be collected. We estimate expected credit losses on receivables on a collective (pool) basis when similar risk characteristics exist. Trade and other receivables and customer financing receivables represent the initial pools which are segregated further by business segment, geography, internal risk rating, and aging. The risk of loss is assessed over the contractual life of the receivables and we adjust historical loss rates for current and future conditions based on qualitative considerations. The expected loss rate for each receivable pool is applied to the aggregate receivable balance to determine the allowance requirement. Receivables are written off against the allowance in the period they are determined to be uncollectible. We determine delinquency based on the contractual payment terms. An account may be considered delinquent if there are unpaid balances remaining on the account the day after the contractual due date. For amounts due from certain government customers in the Global Lottery business segment, we have not established an allowance as we have no expectation of loss based on a long history of no credit losses and the explicit guarantee of a sovereign entity. Inventories Inventories are stated at the lower of cost (applying the first in, first out method) and net realizable value. Allowances are made for defective, obsolete, or excess inventory. Systems, Equipment and Other Assets Related to Contracts, Net and Property, Plant and Equipment, Net We have two categories of fixed assets: systems, equipment and other assets related to contracts (“Systems & Equipment”); and property, plant and equipment (“PPE”). Systems & Equipment are assets that primarily support our operating contracts, FMCs, and WAP systems (collectively, the “Contracts”) and are princ |
Discontinued Operations and Ass
Discontinued Operations and Assets Held for Sale | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations and Assets Held for Sale | Discontinued Operations and Assets Held for Sale On December 7, 2020, the Parent announced that its wholly-owned subsidiary, Lottomatica, had entered into a definitive agreement to sell one hundred percent of the share capital of Lottomatica Videolot Rete S.p.A. and Lottomatica Scommesse S.r.l., the members of the IGT group which conduct its Italian B2C gaming machine, sports betting, and digital gaming businesses, to Gamenet Group S.p.A. for a sale price of €950 million. The businesses to be sold are within the Company’s Global Gaming segment. The Company will receive €725 million at closing, €100 million on December 31, 2021, and €125 million on September 30, 2022. The sale price is subject to certain adjustments specified in the agreement. Closing of the transaction is subject to Italian regulatory approvals and specified representations, warranties, covenants and conditions customary in agreements of this kind and scope. The Company expects the transaction to close in the first half of 2021. Aligning with our segment reorganization, the sale represents a strategic shift to reframe and simplify the priorities of our Global Gaming segment to focus on its core competencies as a B2B product and service provider. The Company determined that the sale met the criteria to be classified as a discontinued operation and, as a result, its historical financial results are reflected in the Company's consolidated financial statements as a discontinued operation, and assets and liabilities were classified as assets and liabilities held for sale. The Company did not allocate any general corporate overhead to discontinued operations. Summarized financial information for discontinued operations is shown below: For the year ended December 31, ($ thousands) 2020 2019 2018 Total revenue 428,920 778,143 872,506 Operating income (1) 51,029 159,211 173,393 Income from discontinued operations before provision for income taxes 43,407 156,760 170,180 Provision for income taxes 6,726 42,352 45,237 Income from discontinued operations, net of tax 36,681 114,408 124,943 Less: Net (loss) income attributable to non-controlling interests from discontinued operations (4,760) 4,539 6,913 Income from discontinued operations attributable to IGT PLC 41,441 109,869 118,030 (1) Includes depreciation and amortization of $94.7 million, $99.7 million, and $98.0 million for the years ended 2020, 2019, and 2018, respectively The Company expects to have continuing involvement with the businesses via a transition services agreement (“TSA”). As part of the expected TSA, the Company will provide various telecommunications, information technology, and back-office services for which the Company will receive compensation. These services generally expire after no more than three The following represents the major classes of assets and liabilities held for sale as part of our discontinued operations: December 31, ($ thousands) 2020 2019 Assets: Trade and other receivables, net 62,110 130,864 Other current assets 58,072 77,515 Systems, equipment and other assets related to contracts, net 86,230 102,347 Goodwill 520,259 520,259 Intangible assets, net 54,711 86,388 Other non-current assets 52,042 54,561 Assets held for sale 833,424 971,934 Liabilities: Accounts payable 62,693 61,889 Other current liabilities 164,084 123,263 Other non-current liabilities 22,796 29,836 Liabilities held for sale 249,573 214,988 The Company allocated $520.3 million of goodwill to discontinued operations using a relative fair value approach. Prior to the allocation to discontinued operations, the goodwill was included within our Global Gaming segment. In addition to the sale of certain entities in our Global Gaming segment classified as discontinued operations as described above, we have other disposal groups that meet the requirements to be classified as held for sale in our consolidated balance sheet at December 31, 2020. The following represents total assets and liabilities held for sale classified between the current and non-current categories: December 31, ($ thousands) 2020 2019 Assets: Current assets held for sale - discontinued operations 833,424 208,379 Current assets held for sale - other 5,416 — Total current assets held for sale 838,840 208,379 Total non-current assets held for sale — 763,555 Assets held for sale 838,840 971,934 Liabilities: Total current liabilities held for sale 249,573 185,152 Total non-current liabilities held for sale — 29,836 Liabilities held for sale 249,573 214,988 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following tables summarize revenue disaggregated by business segment and the source of the revenue for the years ended December 31, 2020, 2019, and 2018: For the year ended December 31, 2020 ($ thousands) Global Lottery Global Gaming Total Operating and facilities management contracts 1,743,916 — 1,743,916 Gaming terminal services — 297,418 297,418 Systems, software, and other 298,736 299,488 598,224 Service revenue 2,042,652 596,906 2,639,558 Lottery products 121,346 — 121,346 Gaming terminals — 205,289 205,289 Gaming other — 149,263 149,263 Product sales 121,346 354,552 475,898 Total revenue 2,163,998 951,458 3,115,456 For the year ended December 31, 2019 ($ thousands) Global Lottery Global Gaming Total Operating and facilities management contracts 1,930,761 — 1,930,761 Gaming terminal services — 567,849 567,849 Systems, software, and other 252,200 350,058 602,258 Service revenue 2,182,961 917,907 3,100,868 Lottery products 109,884 — 109,884 Gaming terminals — 581,017 581,017 Gaming other — 239,988 239,988 Product sales 109,884 821,005 930,889 Total revenue 2,292,845 1,738,912 4,031,757 For the year ended December 31, 2018 ($ thousands) Global Lottery Global Gaming Total Operating and facilities management contracts 2,007,261 — 2,007,261 Gaming terminal services — 601,536 601,536 Systems, software, and other 227,540 359,593 587,133 Service revenue 2,234,801 961,129 3,195,930 Lottery products 126,889 — 126,889 Gaming terminals — 454,884 454,884 Gaming other — 203,169 203,169 Product sales 126,889 658,053 784,942 Total revenue 2,361,690 1,619,182 3,980,872 Contract Balances Information about receivables, contract assets, and contract liabilities is as follows: ($ thousands) December 31, 2020 December 31, 2019 Balance Sheet Classification Receivables, net 846,128 875,263 Trade and other receivables, net Contract assets: Current 53,491 47,499 Other current assets Non-current 75,000 76,188 Other non-current assets 128,491 123,687 Contract liabilities: Current (107,542) (66,749) Other current liabilities Non-current (62,175) (65,855) Other non-current liabilities (169,717) (132,604) The amount of revenue recognized during the year ended December 31, 2020 that was included in the contract liabilities balance at December 31, 2019 was $56.0 million. The amount of revenue recognized during the year ended December 31, 2019 that was included in the contract liabilities balance at December 31, 2018 was $50.7 million . Transaction Price Allocated to Remaining Performance Obligations At December 31, 2020, the transaction price allocated to unsatisfied performance obligations for contracts expected to be greater than one year, or performance obligations for which we do not have a right to consideration from the customer in the amount that corresponds to the value to the customer for our performance completed to date, variable consideration which is not accounted for in accordance with the sales-based or usage-based royalties guidance, or contracts which are not wholly unperformed, is approximately $956.8 million. Of this amount, we expect to recognize as revenue approximately 19% within the next 12 months, approximately 29% between 13 and 36 months, approximately 26% between 37 and 60 months, and the remaining balance through December 31, 2031. |
Trade and Other Receivables, ne
Trade and Other Receivables, net | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Trade and Other Receivables, net | Trade and Other Receivables, net Trade and other receivables are recorded at amortized cost, net of allowance for credit losses, and represent a contractual right to receive money on demand or on fixed or determinable dates that are typically short-term with payment due within 90 days or less. December 31, ($ thousands) 2020 2019 Trade and other receivables, gross 861,772 897,329 Allowance for credit losses (15,644) (22,066) Trade and other receivables, net 846,128 875,263 The following table presents the activity in the allowance for credit losses: December 31, ($ thousands) 2020 2019 2018 Balance at beginning of year (22,066) (29,407) (22,795) (Provisions) recoveries, net (6,096) 3,480 (7,768) Amounts written off as uncollectible 9,660 3,405 87 Foreign currency translation (551) 162 1,461 Other (1) 3,409 294 (392) Balance at end of year (15,644) (22,066) (29,407) (1) Includes the adoption of ASC 326 as of January 1, 2020 We enter into various factoring agreements with third-party financial institutions to sell certain of our trade receivables. We factored trade receivables of $1,531.6 million and $2,629.4 million during the years ended December 31, 2020 and 2019, respectively, under these factoring arrangements, which reduced trade receivables. The cash received from these arrangements is reflected as cash provided by operating activities in the consolidated statements of cash flows. In certain of these factoring arrangements, for ease of administration, we will collect customer payments related to the factored trade receivables, which we then remit to the financial institutions. At December 31, 2020 and 2019, we had $110.1 million and $50.2 million, respectively, that was collected on behalf of the financial institutions and recorded as other current liabilities in the consolidated balance sheets. The net cash flows relating to these collections are reported as financing activities in the consolidated statements of cash flows. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories December 31, ($ thousands) 2020 2019 Raw materials 86,089 86,877 Work in progress 23,211 11,663 Finished goods 102,674 96,895 Inventories, gross 211,974 195,435 Obsolescence reserve (42,767) (33,645) Inventories, net 169,207 161,790 The following table presents the activity in the obsolescence reserve: December 31, ($ thousands) 2020 2019 2018 Balance at beginning of year (33,645) (39,885) (26,911) Provisions, net (33,554) (28,970) (14,199) Amounts written off 23,535 23,375 817 Foreign currency translation (2,041) (130) 408 Other 2,938 11,965 — Balance at end of year (42,767) (33,645) (39,885) |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other Current Assets December 31, ($ thousands) Notes 2020 2019 Customer financing receivables, net 231,873 226,979 Contract assets 4 53,491 47,499 Value-added tax receivable 46,466 51,405 Income taxes receivable 45,203 56,857 Prepaid expenses 39,439 41,366 Prepaid royalties 8,701 24,999 Other receivables 8,149 10,673 Other 46,327 53,237 479,649 513,015 Other Non-Current Assets December 31, ($ thousands) Notes 2020 2019 Upfront license fees, net: Italian Scratch & Win 845,336 873,756 Italian Lotto 516,177 568,669 New Jersey 74,449 83,209 Indiana 10,458 11,853 1,446,420 1,537,487 Customer financing receivables, net 83,638 122,124 Contract assets 4 75,000 76,188 Deferred income taxes 17 33,117 27,108 Finance lease right-of-use assets 11 32,739 35,441 Debt issuance costs 16 23,937 20,464 Prepaid royalties 13,987 25,092 Other 64,803 73,847 1,773,641 1,917,751 Upfront License Fees The upfront license fees are being amortized on a straight-line basis as follows: Upfront License Fee License Term Amortization Start Date Italian Scratch & Win 9 years October 2019 Italian Lotto 9 years December 2016 New Jersey 15 years, 9 months October 2013 Indiana 15 years July 2013 Yeonama Holdings Co. Limited (“Yeonama”) In May 2019, we sold our ownership interest in Yeonama, an investment previously included within other non-current assets on the consolidated balance sheet. The sale resulted in a pre-tax gain of €26.1 million ($29.1 million at the May 31, 2019 exchange rate). Customer Financing Receivables Customers' payment terms for customer financing receivables are confirmed with a written financing contract, lease contract, or promissory note and a security agreement is typically signed by the parties granting the Company a security interest in the related products sold or leased. Customer financing interest income is recognized based on market rates prevailing at issuance. Customer financing receivables are recorded at amortized cost, net of any allowance for credit losses, and are classified in the consolidated balance sheets as follows: December 31, 2020 ($ thousands) Current Assets Non-Current Assets Total Customer financing receivables, gross 274,650 90,780 365,430 Allowance for credit losses (42,777) (7,142) (49,919) Customer financing receivables, net 231,873 83,638 315,511 December 31, 2019 ($ thousands) Current Assets Non-Current Assets Total Customer financing receivables, gross 255,221 125,542 380,763 Allowance for credit losses (28,242) (3,418) (31,660) Customer financing receivables, net 226,979 122,124 349,103 The following table presents the activity in the allowance for credit losses: December 31, ($ thousands) 2020 2019 2018 Balance at beginning of year (31,660) (29,209) (19,574) Provisions, net (37,191) (2,477) (10,131) Amounts written off as uncollectible 23,525 11 317 Foreign currency translation 1,820 15 179 Other (1) (6,413) — — Balance at end of year (49,919) (31,660) (29,209) (1) Includes the adoption of ASC 326 as of January 1, 2020 The Company’s customer financing receivable portfolio is composed of customers within the Global Gaming business segment. We internally assess the credit quality of customer financing receivables using a number of factors, including, but not limited to, credit scores obtained from external providers, trade references, bank references, and historical experience. Risk profiles differ based on customer location and are pooled as North America, Latin America and the Caribbean (“LAC”), Europe, Middle East and Africa (“EMEA”), and Asia Pacific (“APAC”). During 2020, $23.5 million of customer financing receivables, primarily within LAC, were written off as uncollectible due to the impacts of COVID-19. Additionally, due to the duration of the COVID-19 induced shutdowns in LAC and potential future impacts on our customers caused by COVID-19, we increased our allowance for credit losses during the year ended December 31, 2020. At December 31, 2020 the Company had $43.3 million of credit loss allowances associated with the LAC customer financing receivables. The customer financing receivables at amortized cost by year of origination and the geography credit quality indicator at December 31, 2020 are as follows: Year of Origination ($ thousands) 2020 2019 2018 2017 2016 and prior Total North America 54,304 16,771 580 3,095 — 74,750 LAC 30,556 113,437 39,024 13,670 8,520 205,207 EMEA 23,620 28,021 16,010 2,343 1,637 71,631 APAC 8,493 4,024 1,174 123 28 13,842 116,973 162,253 56,788 19,231 10,185 365,430 The past due balance, which represents installments that are one day or more past their contractual due date, of customer financing receivables at amortized cost and the geography credit quality indicator at December 31, 2020 is as follows: ($ thousands) North America LAC EMEA APAC Total Past due 6,062 106,011 12,585 3,839 128,497 Short-term portion not yet due 37,728 67,634 32,488 8,303 146,153 Long-term portion not yet due 30,960 31,562 26,558 1,700 90,780 74,750 205,207 71,631 13,842 365,430 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Our significant financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 and 2019 are as follows: December 31, 2020 ($ thousands) Balance Sheet Location Level 1 Level 2 Level 3 Total Fair Value Assets: Derivative assets Other current and other non-current assets — 10,738 — 10,738 Equity investments Other non-current assets 6,026 — — 6,026 Liabilities: Derivative liabilities Other current and other non-current liabilities — 10,113 — 10,113 December 31, 2019 ($ thousands) Balance Sheet Location Level 1 Level 2 Level 3 Total Fair Value Assets: Derivative assets Other current and other non-current assets — 8,317 — 8,317 Equity investments Other non-current assets 7,769 — — 7,769 Liabilities: Derivative liabilities Other current and other non-current liabilities — 6,425 — 6,425 Valuation Techniques Derivative assets and liabilities classified as Level 2 were derived from quoted market prices for similar instruments or by discounting the future cash flows with adjustments for credit risk as appropriate. All significant inputs were derived from or corroborated by observable market data including current forward exchange rates and LIBOR rates, among others. At December 31, 2020 and 2019, the carrying amounts for cash and cash equivalents, restricted cash, trade and other receivables, other current assets, accounts payable, and other current liabilities approximated their estimated fair values because of their short-term nature. Financial Assets Measured at Fair Value on a Nonrecurring Basis Our assessment of goodwill for impairment includes various inputs, including forecasted revenue, forecasted operating profits, terminal growth rates, and weighted-average costs of capital. The projected cash flows used in calculating the fair value of our reporting units, using the income approach, considered historical and estimated future results and general economic and market conditions, as well as the impact of planned business and operational strategies. As a result, as of December 31, 2019, the Company classified the former International reporting unit measured at fair value on a nonrecurring basis within Level 3 of the fair value hierarchy. Financial Assets and Liabilities Not Carried at Fair Value The carrying amounts and fair value hierarchy classification of our significant financial assets and liabilities not carried at fair value as of December 31, 2020 and 2019 are as follows: December 31, 2020 ($ thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Assets: Customer financing receivables, net 315,511 — — 312,690 312,690 Equity investments 12,375 — — 12,375 12,375 Liabilities: Jackpot liabilities 218,943 — — 210,516 210,516 Debt (1) 8,242,898 — 8,701,509 — 8,701,509 December 31, 2019 ($ thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Assets: Customer financing receivables, net 349,103 — — 349,686 349,686 Equity investments 11,482 — — 11,482 11,482 Liabilities: Jackpot liabilities 234,771 — — 230,307 230,307 Debt (1) 8,062,816 — 8,589,939 — 8,589,939 (1) Debt excludes short-term borrowings and swap adjustments |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We use selected derivative hedging instruments, principally foreign currency forward contracts and interest rate swaps, for the purpose of managing currency risks and interest rate risk arising from our operations and sources of financing. Cash Flow Hedges The notional amount of foreign currency forward contracts, designated as cash flow hedges, outstanding at December 31, 2020 and 2019 were $61.5 million and $56.8 million, respectively. The amount recorded within other comprehensive income (loss) at December 31, 2020 is expected to impact the consolidated statement of operations in 2021. Fair Value Hedges In September 2015, we executed $625.0 million notional amount of interest rate swaps that effectively convert $625.0 million of the 6.25% Senior Secured U.S. Dollar Notes from fixed interest rate debt to variable rate debt. The terms of the swap require periodic net settlement payments and expire in February 2022. In August 2020, $200.0 million notional amount of the interest rate swaps were terminated early. At December 31, 2020, the remaining notional amount of $425.0 million in interest rate swaps were no longer designated as hedging relationships and the fair value of the swaps is recognized in interest expense on the consolidated statements of operations with no corresponding offset to debt. Net Investment Hedges In October 2018, we executed $200.0 million notional amount of cross-currency swaps that are a hedge of foreign exchange risk associated with a net investment in foreign operations. The terms of the swap require periodic net settlement payments and a final notional exchange will occur on settlement. The swaps expire in August 2021. In March 2020, $100.0 million notional amount in cross-currency swaps were early terminated and the remaining notional amount at December 31, 2020 was $100.0 million. Derivatives Not Designated as Hedging Instruments The notional amount of foreign currency forward contracts, not designated as hedging instruments, outstanding at December 31, 2020 and 2019 was $295.4 million and $550.0 million, respectively. Refer to Note 19, Shareholders’ Equity - Accumulated Other Comprehensive Income for further information. |
Systems, Equipment and Other As
Systems, Equipment and Other Assets Related to Contracts, net and Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |
Systems, Equipment and Other Assets Related to Contracts, net and Property Plant and Equipment, net | Systems, Equipment and Other Assets Related to Contracts, net and Property, Plant and Equipment, net Systems & Equipment and PPE, net consist of the following: Systems & Equipment, net PPE, net December 31, December 31, ($ thousands) 2020 2019 2020 2019 Land — 297 964 2,317 Buildings 2,257 748 68,847 70,473 Terminals and systems 2,614,869 2,610,417 — — Furniture and equipment 150,419 138,591 258,767 240,375 Construction in progress 76,582 49,340 14,985 15,624 2,844,127 2,799,393 343,563 328,789 Accumulated depreciation (1,776,006) (1,593,801) (211,961) (182,734) 1,068,121 1,205,592 131,602 146,055 Gain on Sale of Assets to Distributor |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases Lessee We have operating and finance leases for real estate (warehouses, office space, data centers), vehicles, communication equipment, and other equipment. Many of our real estate leases include one or more options to renew, while some include termination options. Certain vehicle and equipment leases include residual value guarantees and options to purchase the leased asset. Many of our real estate leases include variable payments for maintenance, real estate taxes, and insurance that are determined based on the actual costs incurred by the landlord. The classification of our operating and finance leases in the consolidated balance sheets is as follows: December 31, ($ thousands) Balance Sheet Classification 2020 2019 Assets: Operating ROU asset Operating lease right-of-use assets 288,196 296,751 Finance ROU asset, net (1) Other non-current assets 32,739 35,441 Total lease assets 320,935 332,192 Liabilities: Operating lease liability, current Other current liabilities 44,263 43,902 Finance lease liability, current Other current liabilities 10,944 8,680 Operating lease liability, non-current Operating lease liabilities 266,227 272,350 Finance lease liability, non-current Other non-current liabilities 30,854 36,240 Total lease liabilities 352,288 361,172 (1) Finance ROU assets are recorded net of accumulated amortization of $15.7 million and $6.8 million at December 31, 2020 and December 31, 2019, respectively Weighted-average lease terms and discount rates are as follows: December 31, 2020 2019 Weighted-Average Remaining Lease Term (in years) Operating leases 8.32 8.80 Finance leases 5.13 6.01 Weighted-Average Discount Rate Operating leases 7.01 % 7.74 % Finance leases 5.16 % 5.45 % Components of lease expense are as follows: For the year ended December 31, ($ thousands) 2020 2019 Operating lease costs 72,025 75,586 Finance lease costs (1) 11,451 10,341 Variable lease costs (2) 22,587 22,163 (1) Finance lease costs include amortization of ROU assets of $9.3 million an d $7.8 million for the years ended December 31, 2020 and 2019, respectively and interest on lease liabilities of $2.1 million a nd $2.5 million f or the years ended December 31, 2020 and 2019, respectively (2) Variable lease costs include immaterial amounts related to short-term leases and sublease income Maturities of operating and finance lease liabilities at December 31, 2020 are as follows ($ thousands): Year Operating Leases Finance Leases Total (1) 2021 63,964 12,729 76,693 2022 55,090 9,678 64,768 2023 49,383 6,983 56,366 2024 44,515 5,309 49,824 2025 38,697 4,985 43,682 Thereafter 171,168 8,150 179,318 Total lease payments 422,817 47,834 470,651 Less: Imputed interest (112,327) (6,036) (118,363) Present value of lease liabilities 310,490 41,798 352,288 (1) The maturities above exclude leases that have not yet commenced and such leases are not material in the aggregate Cash flow information and non-cash activity related to leases is as follows: For the year ended December 31, ($ thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating and finance leases 67,731 74,175 Finance cash flows from finance leases 9,761 7,632 Non-cash activity: ROU assets obtained in exchange for lease obligations (net of early terminations) Operating leases 34,385 12,914 Finance leases 6,359 9,441 We adopted ASC 842 as of January 1, 2019 which is an update to ASC 840, the lease accounting standard in place through December 31, 2018. Rent and lease expense under ASC 840 was $81.5 million fo r the year ended December 31, 2018 and included contingent rent payments of $0.8 million f or the year ended December 31, 2018. Lessor We have various arrangements for lottery and commercial gaming equipment under which we are the lessor. These leases generally meet the criteria for operating lease classification. Lease income for operating leases is included within service revenue, while lease income for sales type leases is included predominately within product sales, in the consolidated statements of operations. Total lease income was approximately 7% and 8% of total revenue for the years ended December 31, 2020 and 2019, respectively. |
Leases | Leases Lessee We have operating and finance leases for real estate (warehouses, office space, data centers), vehicles, communication equipment, and other equipment. Many of our real estate leases include one or more options to renew, while some include termination options. Certain vehicle and equipment leases include residual value guarantees and options to purchase the leased asset. Many of our real estate leases include variable payments for maintenance, real estate taxes, and insurance that are determined based on the actual costs incurred by the landlord. The classification of our operating and finance leases in the consolidated balance sheets is as follows: December 31, ($ thousands) Balance Sheet Classification 2020 2019 Assets: Operating ROU asset Operating lease right-of-use assets 288,196 296,751 Finance ROU asset, net (1) Other non-current assets 32,739 35,441 Total lease assets 320,935 332,192 Liabilities: Operating lease liability, current Other current liabilities 44,263 43,902 Finance lease liability, current Other current liabilities 10,944 8,680 Operating lease liability, non-current Operating lease liabilities 266,227 272,350 Finance lease liability, non-current Other non-current liabilities 30,854 36,240 Total lease liabilities 352,288 361,172 (1) Finance ROU assets are recorded net of accumulated amortization of $15.7 million and $6.8 million at December 31, 2020 and December 31, 2019, respectively Weighted-average lease terms and discount rates are as follows: December 31, 2020 2019 Weighted-Average Remaining Lease Term (in years) Operating leases 8.32 8.80 Finance leases 5.13 6.01 Weighted-Average Discount Rate Operating leases 7.01 % 7.74 % Finance leases 5.16 % 5.45 % Components of lease expense are as follows: For the year ended December 31, ($ thousands) 2020 2019 Operating lease costs 72,025 75,586 Finance lease costs (1) 11,451 10,341 Variable lease costs (2) 22,587 22,163 (1) Finance lease costs include amortization of ROU assets of $9.3 million an d $7.8 million for the years ended December 31, 2020 and 2019, respectively and interest on lease liabilities of $2.1 million a nd $2.5 million f or the years ended December 31, 2020 and 2019, respectively (2) Variable lease costs include immaterial amounts related to short-term leases and sublease income Maturities of operating and finance lease liabilities at December 31, 2020 are as follows ($ thousands): Year Operating Leases Finance Leases Total (1) 2021 63,964 12,729 76,693 2022 55,090 9,678 64,768 2023 49,383 6,983 56,366 2024 44,515 5,309 49,824 2025 38,697 4,985 43,682 Thereafter 171,168 8,150 179,318 Total lease payments 422,817 47,834 470,651 Less: Imputed interest (112,327) (6,036) (118,363) Present value of lease liabilities 310,490 41,798 352,288 (1) The maturities above exclude leases that have not yet commenced and such leases are not material in the aggregate Cash flow information and non-cash activity related to leases is as follows: For the year ended December 31, ($ thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating and finance leases 67,731 74,175 Finance cash flows from finance leases 9,761 7,632 Non-cash activity: ROU assets obtained in exchange for lease obligations (net of early terminations) Operating leases 34,385 12,914 Finance leases 6,359 9,441 We adopted ASC 842 as of January 1, 2019 which is an update to ASC 840, the lease accounting standard in place through December 31, 2018. Rent and lease expense under ASC 840 was $81.5 million fo r the year ended December 31, 2018 and included contingent rent payments of $0.8 million f or the year ended December 31, 2018. Lessor We have various arrangements for lottery and commercial gaming equipment under which we are the lessor. These leases generally meet the criteria for operating lease classification. Lease income for operating leases is included within service revenue, while lease income for sales type leases is included predominately within product sales, in the consolidated statements of operations. Total lease income was approximately 7% and 8% of total revenue for the years ended December 31, 2020 and 2019, respectively. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During 2020, we initiated three restructuring plans as described below and during 2019, we expanded existing restructuring plans initiated in the prior year. As of December 31, 2019 these plans were substantially completed. During 2018, we incurred $14.8 million in restructuring expenses from plans that were initiated in 2018 and substantially completed by the end of 2018. Restructuring expense incurred under these plans was previously included in corporate support expenses, which were not allocated to the business segments. In conjunction with the Company’s segment reorganization as disclosed in Note 21 – Segment Information, restructuring expenses are now included in the business segments carrying out the restructuring activity. 2020 Segment Reorganization During the first quarter of 2020, we initiated a restructuring plan associated with our global initiative to simplify our organizational structure and increase efficiency and effectiveness. We expect to incur approximately $17 million in severance and related employee costs under this plan, which is expected to be substantially completed by the end of the first quarter of 2021. We incurred $16.3 million in severance and related employee costs for the year ended December 31, 2020, which impacted our two segments and corporate support function. Rollforward of Restructuring Liability The following table presents the activity in the restructuring liability under this plan for the year ended December 31, 2020: ($ thousands) Severance and Related Employee Costs Balance at beginning of period — Restructuring expense, net 16,310 Cash payments (9,132) Other adjustments, net 544 Balance at end of period 7,722 2020 Global Supply Chain Optimization During the first quarter of 2020, we initiated a restructuring plan to optimize our global supply chain and footprint resulting in a significant reduction to our primary manufacturing operations. We will utilize contract manufacturers that are worldwide experts in manufacturing and excel at sourcing and assembly activities. We intend to utilize these third-party contract manufacturers to reduce costs and achieve efficiencies in fulfilling future demand for our products. We expect to incur up to $9 million in total costs under this plan, comprised of approximately $5 million in severance and related employee costs and approximately $4 million in other costs. The plan is expected to be substantially completed by the end of the first quarter of 2021. The following table summarizes restructuring expense for the year ended December 31, 2020 under this plan by type of cost, primarily in the Global Gaming segment: ($ thousands) For the year ended December 31, 2020 Severance and related employee costs 5,123 Other (1) 3,576 Total 8,699 (1) This expense includes approximately $460 thousand of asset impairments. The offset for these charges is Property, plant and equipment, net in the consolidated balance sheet at December 31, 2020 Rollforward of Restructuring Liability The following table presents the activity in the restructuring liability under this plan for the year ended December 31, 2020: ($ thousands) Severance and Related Employee Costs Other Costs Total Balance at beginning of period — — — Restructuring expense, net 5,123 3,116 8,239 Cash payments (3,630) (1,916) (5,546) Balance at end of period 1,493 1,200 2,693 2020 Technology Organization Consolidation During the second quarter of 2020, we initiated a restructuring plan to realign and consolidate operations, reduce costs, and improve operational efficiencies within our Technology group. We expect to incur approximately $18 million primarily in severance and related employee costs under this plan, which is expected to be substantially completed by the end of the fourth quarter of 2021. We incurred $17.5 million in severance and related employee costs for the year ended December 31, 2020, primarily in the Global Gaming segment. Rollforward of Restructuring Liability The following table presents the activity in the restructuring liability under this plan for the year ended December 31, 2020: ($ thousands) Severance and Related Employee Costs Balance at beginning of period — Restructuring expense, net 17,499 Cash payments (3,506) Balance at end of period 13,993 Restructuring Expense The following table summarizes consolidated restructuring expense by segment and type of cost: For the year ended December 31, 2020 ($ thousands) Severance and Related Employee Costs Asset Impairment Costs Other Total Global Lottery 5,399 — — 5,399 Global Gaming 29,936 460 3,216 33,612 Corporate and Other 6,068 — (34) 6,034 Total 41,403 460 3,182 45,045 For the year ended December 31, 2019 ($ thousands) Severance and Related Employee Costs Asset Impairment Costs Other Total Global Lottery 2,164 — 6 2,170 Global Gaming 3,173 15,500 (311) 18,362 Corporate and Other 1,737 — 2,586 4,323 Total 7,074 15,500 2,281 24,855 |
Goodwill
Goodwill | 3 Months Ended |
Dec. 31, 2018 | |
Goodwill, net | |
Goodwill | Goodwill As discussed in Note 21 – Segment Information, on July 1, 2020, we adopted a new organizational structure focused on two business segments: Global Lottery and Global Gaming. This resulted in a change in our operating segments and reporting units. Prior to this change, we had four reporting units: North America Gaming and Interactive, North America Lottery, International, and Italy. As a result of the change in reporting units, at July 1, 2020, we allocated goodwill to our new reporting units using a relative fair value approach. The goodwill allocated to the new Global Lottery and Global Gaming reporting units was $2,942.2 million and $2,208.7 million, respectively, and the estimated fair values were determined to exceed the carrying values, which indicated no impairment existed. In addition, we completed an assessment for any potential goodwill impairment for all the former reporting units immediately prior to the reallocation and determined that no impairment existed. Changes in the carrying amount of goodwill consist of the following: Reporting Units Prior to July 1, 2020 Reporting Units After July 1, 2020 ($ thousands) North America Gaming and Interactive North America Lottery International Italy Global Lottery Global Gaming Discontinued Operations Total Balance at December 31, 2018 1,439,867 1,221,589 1,422,847 1,495,924 — — (520,259) 5,059,968 Impairment — — (99,000) — — — — (99,000) Disposal — — (13,201) — — — — (13,201) Foreign currency translation — — (2,677) (13,855) — — — (16,532) Balance at December 31, 2019 1,439,867 1,221,589 1,307,969 1,482,069 — — (520,259) 4,931,235 Impairment (103,000) — (193,000) — — — — (296,000) Foreign currency translation — — (2,136) (2,427) — — — (4,563) Segment realignment (1,336,867) (1,221,589) (1,112,833) (1,479,642) 2,942,221 2,208,710 — — Foreign currency translation — — — — 55,118 27,699 — 82,817 Discontinued operations — — — — — (520,259) 520,259 — Balance at December 31, 2020 — — — — 2,997,339 1,716,150 — 4,713,489 Balance at December 31, 2019 Cost 2,153,867 1,225,682 1,641,187 1,483,754 — — (520,259) 5,984,231 Accumulated impairment (714,000) (4,093) (333,218) (1,685) — — — (1,052,996) 1,439,867 1,221,589 1,307,969 1,482,069 — — (520,259) 4,931,235 Balance at December 31, 2020 Cost — — — — 2,997,339 1,716,150 — 4,713,489 — — — — 2,997,339 1,716,150 — 4,713,489 Goodwill Impairment Our assessment of goodwill for impairment includes various inputs, including forecasted revenue, forecasted operating profits, terminal growth rates, and weighted-average costs of capital. The projected cash flows used in calculating the fair value of our reporting units, using the income approach, considered historical and estimated future results and general economic and market conditions, as well as the impact of planned business and operational strategies. During the first quarter of 2020, we determined there was an interim goodwill impairment triggering event caused by COVID-19. As a result of the identified triggering event, we estimated the fair value of each of our former reporting units using an income approach based on projected discounted cash flows. Based principally on lower forecasted revenue and operating profits caused by lower demand for our commercial gaming products, we recorded a $296.0 million non-cash impairment loss with no income tax benefit, of which $193.0 million and $103.0 million million was recorded within our former International and North America Gaming reporting units, respectively, to reduce the carrying amount of the reporting units to fair value. During the fourth quarters of 2019 and 2018, we recorded $99.0 million and $118.0 million, respectively, in non-cash impairment losses with no income tax benefits and reduced the carrying amount of our former International reporting unit to fair value. We determined there was an impairment in the former International reporting unit’s goodwill due to lower forecasted cash flows along with a higher weighted-average cost of capital. |
Intangible Assets, net
Intangible Assets, net | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets, net | Intangible Assets, net Intangible assets at December 31, 2020 and 2019 are summarized as follows: December 31, 2020 December 31, 2019 ($ thousands) Weighted- Average Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Amortized: Customer relationships 15.5 2,300,034 1,229,939 1,070,095 2,302,118 1,107,363 1,194,755 Computer software and game library 5.6 917,950 783,671 134,279 882,049 723,768 158,281 Trademarks 14.1 186,218 91,807 94,411 185,285 76,196 109,089 Developed technologies 5.6 225,108 212,562 12,546 219,448 203,121 16,327 Licenses 3.5 69,148 58,550 10,598 60,763 48,188 12,575 Other 8.9 37,382 26,957 10,425 34,600 21,013 13,587 3,735,840 2,403,486 1,332,354 3,684,263 2,179,649 1,504,614 Unamortized: Trademarks 245,000 — 245,000 245,000 — 245,000 Total intangible assets, excluding goodwill 3,980,840 2,403,486 1,577,354 3,929,263 2,179,649 1,749,614 Intangible asset amortization expense of $202.7 million, $220.1 million, and $224.0 million (which includes computer software amortization expense of $25.7 million, $29.4 million, and $29.6 million) was recorded in 2020, 2019, and 2018, respectively. Amortization expense on intangible assets for the next five years is expected to be as follows ($ thousands): Year Amount 2021 187,867 2022 178,594 2023 155,379 2024 140,009 2025 118,637 Total 780,486 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other Current Liabilities December 31, ($ thousands) Notes 2020 2019 Accrued interest payable 138,184 141,485 Current financial liabilities 128,330 62,806 Accrued expenses 118,037 99,700 Contract liabilities 4 107,542 66,749 Taxes other than income taxes 96,346 67,309 Employee compensation 89,832 155,962 Jackpot liabilities 18 71,290 74,670 Operating lease liabilities 11 44,263 43,902 Income taxes payable 26,116 17,198 Other 26,333 29,037 846,273 758,818 Other Non-Current Liabilities December 31, ($ thousands) Notes 2020 2019 Jackpot liabilities 18 147,654 160,101 Contract liabilities 4 62,175 65,855 Reserves for uncertain tax positions 47,625 47,523 Finance lease liabilities 11 30,854 36,240 Income taxes payable 15,594 26,493 Royalties payable 14,091 18,918 Other 41,968 40,736 359,961 395,866 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s long-term debt obligations consist of the following: December 31, 2020 ($ thousands) Principal Debt issuance Premium Swap Total 6.250% Senior Secured U.S. Dollar Notes due February 2022 1,000,001 (3,039) — 6,860 1,003,822 4.750% Senior Secured Euro Notes due February 2023 1,043,035 (4,983) — — 1,038,052 5.350% Senior Secured U.S. Dollar Notes due October 2023 60,567 — 224 — 60,791 3.500% Senior Secured Euro Notes due July 2024 613,550 (3,808) — — 609,742 6.500% Senior Secured U.S. Dollar Notes due February 2025 1,100,000 (8,359) — — 1,091,641 3.500% Senior Secured Euro Notes due June 2026 920,325 (6,995) — — 913,330 6.250% Senior Secured U.S. Dollar Notes due January 2027 750,000 (5,845) — — 744,155 2.375% Senior Secured Euro Notes due April 2028 613,550 (5,150) — — 608,400 5.250% Senior Secured U.S. Dollar Notes due January 2029 750,000 (6,875) — — 743,125 Senior Secured Notes 6,851,028 (45,054) 224 6,860 6,813,058 Euro Term Loan Facility due January 2023 1,055,306 (11,278) — — 1,044,028 Euro Revolving Credit Facility B due July 2024 (1) — — — — — U.S. Dollar Revolving Credit Facility A due July 2024 (1) — — — — — Long-term debt, less current portion 7,906,334 (56,332) 224 6,860 7,857,086 Euro Term Loan Facility due January 2023 392,672 — — — 392,672 Current portion of long-term debt 392,672 — — — 392,672 Short-term borrowings 480 — — — 480 Total debt 8,299,486 (56,332) 224 6,860 8,250,238 (1) As of December 31, 2020, $23.9 million of debt issuance costs, net are presented in other non-current assets for debt instruments with no outstanding borrowings December 31, 2019 ($ thousands) Principal Debt issuance Premium Swap Total 6.250% Senior Secured U.S. Dollar Notes due February 2022 1,500,000 (8,199) — (473) 1,491,328 4.750% Senior Secured Euro Notes due February 2023 954,890 (6,508) — — 948,382 5.350% Senior Secured U.S. Dollar Notes due October 2023 60,567 — 318 — 60,885 3.500% Senior Secured Euro Notes due July 2024 561,700 (4,369) — — 557,331 6.500% Senior Secured U.S. Dollar Notes due February 2025 1,100,000 (10,041) — — 1,089,959 3.500% Senior Secured Euro Notes due June 2026 842,550 (7,445) — — 835,105 6.250% Senior Secured U.S. Dollar Notes due January 2027 750,000 (6,613) — — 743,387 2.375% Senior Secured Euro Notes due April 2028 561,700 (5,297) — — 556,403 Senior Secured Notes 6,331,407 (48,472) 318 (473) 6,282,780 Euro Term Loan Facility due January 2023 1,325,612 (8,223) — — 1,317,389 Euro Revolving Credit Facility B due July 2024 (1) — — — — — U.S. Dollar Revolving Credit Facility A due July 2024 (1) — — — — — Long-term debt, less current portion 7,657,019 (56,695) 318 (473) 7,600,169 4.750% Senior Secured Euro Notes due March 2020 435,767 (978) — — 434,789 5.500% Senior Secured U.S. Dollar Notes due June 2020 27,311 — 74 (19) 27,366 Current portion of long-term debt 463,078 (978) 74 (19) 462,155 Short-term borrowings 3,193 — — — 3,193 Total debt 8,123,290 (57,673) 392 (492) 8,065,517 (1) As of December 31, 2019, $20.5 million of debt issuance costs, net are presented in other non-current assets for debt instruments with no outstanding borrowings The principal amount of long-term debt maturing over the next five years and thereafter as of December 31, 2020 is as follows ($ thousands): Year U.S. Dollar Denominated Euro Denominated Total 2021 — 392,672 392,672 2022 1,000,001 392,672 1,392,673 2023 60,567 1,705,669 1,766,236 2024 — 613,550 613,550 2025 1,100,000 — 1,100,000 2026 and thereafter 1,500,000 1,533,875 3,033,875 Total principal payments 3,660,568 4,638,438 8,299,006 Senior Secured Notes The key terms of our senior secured notes (the “Notes”), which are rated Ba3 and BB by Moody’s Investor Service (“Moody’s”) and Standard & Poor’s Ratings Services (“S&P”), respectively, are as follows: Description Principal Effective Issuer Guarantors Collateral Redemption Interest payments 6.250% Senior Secured U.S. Dollar Notes due February 2022 $1,000,001 6.52% Parent * † ++ Semi-annually in arrears 4.750% Senior Secured Euro Notes due February 2023 €850,000 4.98% Parent * † ++ Semi-annually in arrears 5.350% Senior Secured U.S. Dollar Notes due October 2023 $60,567 5.47% IGT ** †† + Semi-annually in arrears 3.500% Senior Secured Euro Notes due July 2024 €500,000 3.68% Parent * † ++ Semi-annually in arrears 6.500% Senior Secured U.S. Dollar Notes due February 2025 $1,100,000 6.71% Parent * † ++ Semi-annually in arrears 3.500% Senior Secured Euro Notes due June 2026 €750,000 3.65% Parent * † +++ Semi-annually in arrears 6.250% Senior Secured U.S. Dollar Notes due January 2027 $750,000 6.41% Parent * † ++ Semi-annually in arrears 2.375% Senior Secured Euro Notes due April 2028 €500,000 2.50% Parent * † +++ Semi-annually in arrears 5.250% Senior Secured U.S. Dollar Notes due January 2029 $750,000 5.39% Parent * † +++ Semi-annually in arrears * Certain subsidiaries of the Parent. ** The Parent and certain subsidiaries of the Parent. † Ownership interests of the Parent in certain of its direct subsidiaries and certain intercompany loans with principal balances in excess of $10 million. †† Certain intercompany loans with principal balances in excess of $10 million. + International Game Technology (“IGT”) may redeem in whole or in part at any time prior to maturity at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. IGT may also redeem in whole or in part at 100% of their principal amount together with accrued and unpaid interest in connection with certain gaming regulatory events. Upon the occurrence of certain events, IGT will be required to offer to repurchase all of the notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. ++ The Parent may redeem in whole or in part at any time prior to the date which is six months prior to maturity at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. After such date, the Parent may redeem in whole or in part at 100% of their principal amount together with accrued and unpaid interest. The Parent may also redeem in whole but not in part at 100% of their principal amount together with accrued and unpaid interest in connection with certain tax events. Upon the occurrence of certain events, the Parent will be required to offer to repurchase all of the notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. +++ The Parent may redeem in whole or in part at any time prior to the first date set forth in the redemption price schedule at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. After such date, the Parent may redeem in whole or in part at a redemption price set forth in the redemption price schedule in the indenture, together with accrued and unpaid interest. The Parent may also redeem in whole but not in part at 100% of their principal amount together with accrued and unpaid interest in connection with certain tax events. Upon the occurrence of certain events, the Parent will be required to offer to repurchase all of the notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. The Notes contain customary covenants and events of default. At December 31, 2020, the issuers were in compliance with the covenants. 3.500% Senior Secured Euro Notes due July 2024 On June 27, 2018, the Parent issued €500 million of 3.500% Senior Secured Euro Notes due July 2024 (the “3.500% Notes due 2024”) at par. The Company recorded a $29.6 million loss on extinguishment of debt in connection with the repurchases, which is classified in other (expense) income, net on the consolidated statement of operations for the year ended December 31, 2018. 3.500% Senior Secured Euro Notes due June 2026 On June 20, 2019, the Parent issued €750 million of 3.500% Senior Secured Euro Notes due June 2026 (the “3.500% Notes due 2026”) at par. The Parent used the net proceeds from the 3.500% Notes due 2026 to repurchase €437.6 million ($497.5 million) of the 4.125% Senior Secured Euro Notes due February 2020 (the “4.125% Notes”) and pay down $339.3 million of the Revolving Credit Facilities due July 2024, for total consideration, excluding interest, of $845.3 million. The Company recorded an €8.5 million ($9.6 million) loss on extinguishment of debt in connection with the repurchase, which is classified in other (expense) income, net on the consolidated statement of operations for the year ended December 31, 2019. 6.250% Senior Secured U.S. Dollar Notes due January 2027 On September 26, 2018, the Parent issued $750 million of 6.250% Senior Secured U.S. Dollar Notes due January 2027 (the “6.250% Notes”) at par. The Company recorded a $24.8 million loss on extinguishment of debt in connection with the redemptions, which is classified in other (expense) income, net on the consolidated statement of operations for the year ended December 31, 2018. 2.375% Senior Secured Euro Notes due April 2028 On September 16, 2019, the Parent issued €500 million of 2.375% Senior Secured Euro Notes due April 2028 (the “2.375% Notes”) at par. The Parent used the net proceeds from the 2.375% Notes to pay the €320.0 million ($350.2 million) first installment on the Euro Term Loan Facility due January 25, 2020 on September 27, 2019 and to pay down $192.3 million of the Revolving Credit Facilities due July 2024, for total consideration, excluding interest, of $542.5 million. The Company recorded a €2.1 million ($2.3 million) loss on extinguishment of debt in connection with the Term Loan repayment, which is classified in other (expense) income, net on the consolidated statement of operations for the year ended December 31, 2019. 5.250% Senior Secured U.S. Dollar Notes due January 2029 On June 19, 2020, the Parent issued $750.0 million of 5.250% Senior Secured U.S. Dollar Notes due January 2029 (the “5.250% Notes”) at par. The Parent used the net proceeds from the 5.250% Notes to repurchase $500.0 million of the 6.250% Senior Secured U.S. Dollar Notes due February 2022 for total consideration, excluding interest, of $525.0 million. The Company recorded a $23.3 million loss on extinguishment of debt in connection with the repurchase, of which a $28.3 million loss is classified in other expense, net and an offsetting gain of $5.0 million is classified in interest expense, net in the consolidated statement of operations for the year ended December 31, 2020. Interest on the 5.250% Notes is payable semi-annually in arrears. The 5.250% Notes are guaranteed by certain subsidiaries of the Parent and are secured by ownership interests of the Parent in certain of its direct subsidiaries and certain intercompany loans with principal balances in excess of $10.0 million. Prior to January 15, 2024, the Parent may redeem the 5.250% Notes in whole or in part at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. From January 15, 2024 to January 14, 2025, the Parent may redeem the 5.250% Notes in whole or in part at 102.625% of their principal amount together with accrued and unpaid interest. From January 15, 2025 to January 14, 2026, the Parent may redeem the 5.250% Notes in whole or in part at 101.313% of their principal amount together with accrued and unpaid interest. On or after January 15, 2026, the Parent may redeem the 5.250% Notes in whole or in part at 100% of their principal amount together with accrued and unpaid interest. The Parent may also redeem the 5.250% Notes in whole but not in part at 100% of their principal amount together with accrued and unpaid interest in connection with certain tax events. Upon the occurrence of certain events, the Parent will be required to offer to repurchase all of the 5.250% Notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. In certain events of default, the 5.250% Notes outstanding may become due and payable immediately. 4.750% Senior Secured Euro Notes due March 2020 On March 5, 2020, the Parent redeemed the €387.9 million ($432.0 million) 5.500% Senior Secured Euro Notes due March 2020 when they matured. 5.500% Senior Secured U.S. Dollar Notes due June 2020 On June 15, 2020, the Parent redeemed the $27.3 million 5.500% Senior Secured U.S. Dollar Notes due June 2020 when they matured. Revolving Credit Facilities and Term Loan Facility On May 7, 2020, the Company entered into an amendment to the Senior Facilities Agreement for the Revolving Credit Facilities due July 2024 (the “RCF Agreement”), and on May 8, 2020, the Company entered into an amendment to the Senior Facility Agreement for the Euro Term Loan Facility due January 2023 (the “TLF Agreement”). The amendments modified the RCF Agreement and the TLF Agreement by, among other things: • Providing a waiver of the covenants requiring the Company to maintain a minimum ratio of EBITDA to net interest costs and a maximum ratio of total net debt to EBITDA from the fiscal quarter ending June 30, 2020 through the fiscal quarter ending June 30, 2021 and establishing new thresholds for these financial covenants starting with the fiscal quarter ending September 30, 2021 as described in the amendments; • Providing that for the period commencing on January 30, 2020 and expiring on August 31, 2021 (the “Relief Period Expiration Date”), a material adverse effect arising from the COVID-19 pandemic shall not constitute a material adverse effect under the agreements and any cessation or suspension of business arising from the COVID-19 pandemic shall not constitute an event of default under the agreements; • Providing that the obligation to grant security over additional collateral be waived provided that the public debt ratings of the Company are not less than BB- or Ba3; • Obligating the Company to maintain “Liquidity” (as defined in the amendments) of at least $500 million for the period commencing on the date of the amendments and expiring on the Relief Period Expiration Date (the “Relief Period”), with such financial covenant being tested quarterly or, if any monthly trading update or quarterly compliance certificate evidences that Liquidity is less than $750 million, monthly; • Increasing the margin from 2.75% to 3.25% if the public debt ratings of the Company are B+ or B1 (or lower); • Prohibiting restricted payments (including dividends and ordinary share repurchases) during the period commencing on April 1, 2020 and expiring on June 30, 2021, and permitting restricted payments during the period commencing on July 1, 2021 and expiring on the maturity date of the respective agreements provided that the ratio of total net debt to EBITDA as adjusted to reflect the restricted payment is less than specified thresholds; and • Decreasing the maximum annual amount that the Company can spend on acquisitions during the Relief Period to $100 million. In addition, the amendment to the RCF Agreement provided that the margin applicable to all loans under the RCF Agreement outstanding as of April 11, 2020 was increased to 2.475%, and the amendment to the TLF Agreement provided that the margin applicable to all loans under the TLF Agreement outstanding as of April 11, 2020 was increased to 2.50%. Term Loan Facility The Parent is party to a senior facility agreement (the “Term Loan Facility Agreement”) for a €1.5 billion term loan facility maturing in January 2023 (the “Term Loan Facility”), which must be repaid in the following installments, as detailed below: Due Date Amount January 25, 2020 320,000 January 25, 2021 320,000 January 25, 2022 320,000 January 25, 2023 540,000 On September 27, 2019, the Parent repaid the first €320 million installment due January 25, 2020 (resulting in €1.2 billion principal remaining) from the proceeds of the 2.375% Notes issued on September 16, 2019. Interest on the Term Loan Facility is payable between one and six months in arrears at rates equal to the applicable LIBOR or EURIBOR plus a margin based on our long-term ratings by Moody’s and S&P. At December 31, 2020 and 2019, the effective interest rate on the Term Loan Facility was 2.50% and 2.05%, respectively. The Term Loan Facility is guaranteed by certain subsidiaries of the Parent and is secured by ownership interests of the Parent in certain of its direct subsidiaries and certain intercompany loans with principal balances in excess of $10 million. Upon the occurrence of certain events, the Parent may be required to prepay the Term Loan Facility in full. The Term Loan Facility Agreement contains customary covenants (including maintaining a minimum ratio of EBITDA to net interest costs and maximum ratio of total net debt to EBITDA) and events of default. At December 31, 2020, the Parent was in compliance with the covenants. Revolving Credit Facilities The Parent and certain of its subsidiaries are party to a senior facilities agreement (the “RCF Agreement”) which provides for the following multi-currency revolving credit facilities (the “Revolving Credit Facilities”): Maximum Amount Facility Borrowers $1,050,000 Revolving Credit Facility A Parent, IGT, and IGT Global Solutions Corporation €625,000 Revolving Credit Facility B Parent and Lottomatica Holding S.r.l. On July 24, 2019, the Company entered into an amendment to the Revolving Credit Facilities due July 2021. The amendment extended the final maturity date of the Revolving Credit Facilities from July 26, 2021 to July 31, 2024 and established the minimum ratio of EBITDA to total net interest costs and the maximum ratio of total net debt to EBITDA for the extended term of the revolving credit facilities. In addition, the amendment reduced the aggregate revolving facilities commitments of the lenders from $1.20 billion and €725 million to $1.05 billion and €625 million and amended the definition of “Permitted Restricted Payment” to eliminate the leverage ratio threshold condition to the payment of dividends and other restricted payments. The amendment also allowed IGT-Europe B.V. to be added as a borrower under Revolving Credit Facility B and modified certain other non-material provisions. Interest on the Revolving Credit Facilities is payable between one and six months in arrears at rates equal to the applicable LIBOR or EURIBOR plus a margin based on the Parent’s long-term ratings by Moody’s and S&P. At December 31, 2020 and December 31, 2019, there was no balance for the Revolving Credit Facilities. The RCF Agreement provides that the following fees, which are recorded in interest expense in the consolidated statements of operations, are payable quarterly in arrears: • Commitment fees - payable on the aggregate undrawn and un-cancelled amount of the Revolving Credit Facilities depending on the Parent’s long-term ratings by Moody’s and S&P. The applicable rate was 0.928% at December 31, 2020. • Utilization fees - payable on the aggregate drawn amount of the Revolving Credit Facilities at a rate ranging from 0.15% to 0.60% dependent on the percentage of the Revolving Credit Facilities utilized. There was no balance as of December 31, 2020. The Revolving Credit Facilities are guaranteed by the Parent and certain of its subsidiaries and are secured by ownership interests of the Parent in certain of its direct subsidiaries and certain intercompany loans with principal balances in excess of $10 million. Upon the occurrence of certain events, the borrowers may be required to repay the Revolving Credit Facilities and the lenders may have the right to cancel their commitments. At December 31, 2020 the available liquidity under the Revolving Credit Facilities was $1.817 billion. The RCF Agreement contains customary covenants (including maintaining a minimum ratio of EBITDA to net interest costs and a maximum ratio of total net debt to EBITDA) and events of default. At December 31, 2020, the borrowers were in compliance with the covenants. Other Credit Facilities The Parent and certain of its subsidiaries may borrow under senior unsecured uncommitted demand credit facilities made available by several financial institutions. At December 31, 2020 and December 31, 2019, there were no borrowings under these facilities. Letters of Credit The Parent and certain of its subsidiaries may obtain letters of credit under the Revolving Credit Facilities and under senior unsecured uncommitted demand credit facilities. The letters of credit secure various obligations, including obligations arising under customer contracts and real estate leases. The following table summarizes the letters of credit outstanding at December 31, 2020 and 2019 and the weighted-average annual cost of such letters of credit: Letters of Credit Outstanding ($ thousands) Not under the Under the Total Weighted- December 31, 2020 426,740 — 426,740 1.06 % December 31, 2019 402,300 — 402,300 1.02 % Interest Expense, Net For the year ended December 31, ($ thousands) 2020 2019 2018 Senior Secured Notes (344,286) (351,077) (352,293) Term Loan Facilities (36,665) (36,138) (39,462) Revolving Credit Facilities (31,301) (28,160) (27,805) Other (620) (7,918) (12,052) Interest expense (412,872) (423,293) (431,612) Interest income 14,956 12,418 14,229 Interest expense, net (397,916) (410,875) (417,383) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of (loss) income from continuing operations before provision for income taxes, determined by tax jurisdiction, are as follows: For the year ended December 31, ($ thousands) 2020 2019 2018 United Kingdom (354,563) 35,401 195,629 United States (776,396) (301,307) (363,507) Italy 228,744 350,731 365,463 Other 54,508 43,182 (63,717) (847,707) 128,007 133,868 The provision for income taxes consists of: For the year ended December 31, ($ thousands) 2020 2019 2018 Current: United Kingdom (819) 1,803 3,579 United States 10,045 46,288 (12,028) Italy 66,073 104,368 141,496 Other 30,866 49,329 45,942 106,165 201,788 178,989 Deferred: United Kingdom (190) (78) (282) United States (61,791) (68,789) (20,900) Italy (876) 914 (3,517) Other (15,610) (3,078) (10,126) (78,467) (71,031) (34,825) 27,698 130,757 144,164 Income taxes paid, net of refunds, were $89.0 million, $196.8 million, and $178.5 million in 2020, 2019, and 2018, respectively. The Parent is a tax resident in the United Kingdom (the “U.K.”). A reconciliation of the provision for income taxes, with the amount computed by applying the U.K. statutory main corporation tax rates enacted in each of the Parent’s calendar year reporting periods to (loss) income from continuing operations before provision for income taxes is as follows: For the year ended December 31, ($ thousands) 2020 2019 2018 (Loss) income from continuing operations before provision for income taxes (847,707) 128,007 133,868 United Kingdom statutory tax rate 19.00 % 19.00 % 19.00 % Statutory tax expense (benefit) (161,064) 24,321 25,435 Change in valuation allowances 127,955 507 (13,723) Non-deductible goodwill impairment 56,240 18,810 22,420 Base erosion and anti-abuse (“BEAT”) tax 12,926 31,340 13,769 Foreign tax expense, net of U.S. federal benefit 9,754 13,585 14,930 IRAP and state taxes 9,275 22,946 30,351 GILTI tax 2,517 4,575 11,079 Change in unrecognized tax benefits 1,295 6,637 9,166 Italian allowance for corporate equity (3,841) (2,380) (3,328) Foreign tax and statutory rate differential (1) (13,988) 2,974 48,040 Tax Law Changes (19,627) — — Tax impact of Tax Act — — (10,852) Italian tax settlement — — 16,664 Non-taxable foreign exchange gain — (3,744) (12,384) Non-taxable gains on investments — (6,225) — Other 6,256 17,411 (7,403) 27,698 130,757 144,164 Effective tax rate (3.3) % 102.1 % 107.7 % (1) Includes the effects of foreign subsidiaries’ earnings taxed at rates other than the U.K. statutory rate In 2020, our effective tax rate differed from the expected UK statutory rate of 19.00%, primarily due to increases in valuation allowances on deferred tax assets, the impact of the international provisions of the Tax Act (BEAT and GILTI), foreign rate differences, and a goodwill impairment with no associated tax benefit. In 2019, our effective tax rate differed from the expected U.K. statutory rate of 19.00% primarily due to the impact of the international provisions of the Tax Act (BEAT and GILTI), foreign rate differences, and a goodwill impairment with no associated tax benefit. In 2018, our effective tax rate differed from the expected U.K. statutory rate of 19.00% primarily due to the impact of the international provisions of the Tax Act (BEAT and GILTI), a goodwill impairment with no associated tax benefit, foreign rate differences, increases in uncertain tax positions, and the settlement of an Italian tax audit. On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) to provide certain relief as a result of the COVID-19 outbreak. Some of the key tax-related provisions of the CARES Act benefiting the Company include temporary five-year net operating loss carryback provisions, modifications to the 30% limitation on the deductibility of business interest, and payroll tax deferral. In the quarter ended September 30, 2020, the U.S. Treasury Department issued final regulations regarding Global Intangible Low-Taxed Income (“GILTI”). The Company will elect the GILTI high tax exception as allowed by the final regulations and will amend its 2018 and 2019 income tax returns. The benefit of the GILTI high tax exception as well as the NOL carryback provisions provided in the CARES Act resulted in a tax benefit of $12.1 million. The components of deferred tax assets and liabilities are as follows: December 31, ($ thousands) 2020 2019 Deferred tax assets: Net operating losses 299,885 175,342 Section 163(j) interest limitation 154,925 93,522 Provisions not currently deductible for tax purposes 88,084 127,132 Lease liabilities 70,384 79,328 Jackpot timing differences 38,724 40,550 Depreciation and amortization 26,325 30,296 Inventory reserves 2,438 3,437 Other 47,377 44,459 Gross deferred tax assets 728,142 594,066 Valuation allowance (284,088) (156,133) Deferred tax assets, net of valuation allowance 444,054 437,933 Deferred tax liabilities: Acquired intangible assets 506,238 533,732 Depreciation and amortization 160,898 174,970 Lease right-of-use assets 65,015 74,201 Other 11,796 20,962 Total deferred tax liabilities 743,947 803,865 Net deferred income tax liability (299,893) (365,932) Our net deferred income taxes are recorded in the consolidated balance sheets as follows: December 31, ($ thousands) 2020 2019 Deferred income taxes - non-current asset 33,117 27,108 Deferred income taxes - non-current liability (333,010) (393,040) (299,893) (365,932) Net Operating Loss Carryforwards We have a $1.3 billion gross tax loss carryforward, of which $638.4 million relates to the U.K., $331.2 million relates to U.S. Federal, and $370.7 million relates to other foreign tax jurisdictions. Carryforwards in certain tax jurisdictions begin to expire in 2031, while others have an unlimited carryforward period. A valuation allowance has been provided on $929.5 million of the gross net operating loss carryforwards. Portions of the tax loss carryforwards are subject to annual limitations, including Section 382 of the U.S. Internal Revenue Code of 1986, as amended, for U.S. tax purposes, and similar provisions under other countries’ laws. In addition, as of December 31, 2020, we had U.S. state tax net operating loss carryforwards, resulting in a deferred tax asset (net of U.S. federal tax benefit) of approximately $18.3 million. U.S. state tax net operating loss carryforwards generally expire in the years 2021 through 2040. Valuation Allowance A reconciliation of the valuation allowance is as follows: December 31, ($ thousands) 2020 2019 2018 Balance at beginning of year 156,133 170,831 184,554 Expiration of tax attributes — (15,205) — Net charges to (income) expense 127,955 507 (13,723) Balance at end of year 284,088 156,133 170,831 The valuation allowance primarily relates to U.K. and foreign net operating losses that are not more likely than not expected to be realized. In addition, we also recorded a partial valuation allowance of $57.9 million relating to our business interest expense limitation carryforward. In assessing the need for a valuation allowance, we considered both positive and negative evidence for each jurisdiction including past operating results, estimates of future taxable income, and the feasibility of tax planning strategies. When we change our determination as to the amount of deferred tax assets that can be realized, the valuation allowance is adjusted with a corresponding impact to the provision for (benefit from) income taxes in the period in which such determination is made. For the years ended December 31, 2020 and December 31, 2019, we recorded a net valuation increase (decrease) of $127.9 million and $(14.7) million, respectively. Accounting for Uncertainty in Income Taxes A reconciliation of the unrecognized tax benefits is as follows: December 31, ($ thousands) 2020 2019 2018 Balance at beginning of year 29,175 26,635 20,975 Additions to tax positions - current year 498 717 11,947 Additions to tax positions - prior years 335 2,358 16,973 Reductions to tax positions - prior years (2,259) — (4,610) Settlements — — (17,238) Lapses in statutes of limitations (525) (535) (1,412) Balance at end of year 27,224 29,175 26,635 At December 31, 2020, 2019, and 2018, $27.2 million, $29.2 million, and $26.6 million, respectively, of the unrecognized tax benefits, if recognized, would affect our effective tax rates. We recognize interest expense and penalties related to income tax matters in the provision for income taxes. For 2020, 2019, and 2018, we recognized $(0.2) million, $4.7 million, and $0.7 million, respectively, in interest expense, penalties, and inflationary adjustments. At December 31, 2020, 2019, and 2018, the gross balance of accrued interest and penalties was $20.9 million, $21.2 million, and $16.4 million, respectively. We file income tax returns in various jurisdictions of which the United Kingdom, United States, and Italy represent the major tax jurisdictions. All years prior to 2017 are closed with the Internal Revenue Service. As of December 31, 2020, we are subject to income tax audits in various tax jurisdictions globally, most significantly in Mexico and Italy. Mexico Tax Audit Based on a 2006 tax examination, the Company’s Mexican subsidiary, GTECH Mexico S.A. de C.V., was issued an income tax assessment of approximately Mexican peso (“MXN”) 425.0 million. The assessment relates to the denial of a deduction for cost of goods sold and the taxation of intercompany loan proceeds. The Company has unsuccessfully contested the two issues in the Mexican court system receiving unfavorable decisions by the Mexican Supreme Court in June 2017 and October 2019, respectively. As of December 31, 2020, based on the unfavorable decisions received, the Company has recorded a liability of MXN 478.5 million (approximately $24.0 million), which includes additional interest, penalties, and inflationary adjustments. Italy Tax Audits The Company’s Italian corporate income tax returns for the calendar years ended December 31, 2015 through December 31, 2019 are currently under examination. On October 19, 2020, the Italian tax authorities issued a final tax audit report for calendar year 2015 questioning the process the Company undertook to establish the interest rate on an intercompany debt agreement (“the 2015 loan”), between Lottomatica S.r.l. (the borrower) and its parent company, IGT PLC (the lender). Similar findings are expected for the 2015 loan for calendar years 2016 through 2019 as the intercompany debt remains outstanding and the Company applied the same interest rate. The Company expects that Lottomatica S.r.l will receive an assessment of taxes, interest, and potentially penalties sometime in the first half of calendar year 2021. The Company believes the interest rate applied to the intercompany debt was calculated on an arm’s length basis consistent with established transfer pricing policies and procedures. The Company is currently evaluating the options for responding to the October 19, 2020 tax audit report upon receipt of the tax assessment. On December 21, 2017 and on March 29, 2018, the Italian Tax Authority issued a preliminary tax audit report for the 2014 and 2015 fiscal years, respectively. Both audit reports related to the reorganization of the Italian business and the merger of GTECH S.p.A. with and into the Parent effective from April 7, 2015, addressing (i) the non-deductibility of certain transaction costs, (ii) withholding taxes on bridge facility fees, and (iii) the redetermination of the taxable gains associated with the reorganization of the Italian business. The total income tax assessment for fiscal 2014 and fiscal 2015 was €13.2 million ($16.7 million), which has been settled and fully paid with the Italian Tax Authority as of December 31, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Jackpot Commitments Jackpot liabilities are recorded as current and non-current liabilities as follows: ($ thousands) December 31, 2020 Current liabilities 71,290 Non-current liabilities 147,654 218,944 Future jackpot liabilities are due as follows: ($ thousands) Previous Winners Future Winners Total 2021 35,967 35,176 71,143 2022 22,705 8,250 30,955 2023 20,440 651 21,091 2024 17,863 651 18,514 2025 15,028 651 15,679 Thereafter 84,552 9,761 94,313 Future jackpot payments due 196,555 55,140 251,695 Unamortized discounts (32,751) Total jackpot liabilities 218,944 Performance and other bonds Certain contracts require us to provide a surety bond as a guarantee of performance for the benefit of customers; bid and litigation bonds for the benefit of potential customers; and WAP bonds that are used to secure our financial liability when a player elects to have their WAP jackpot winnings paid over an extended period of time. These bonds give beneficiaries the right to obtain payment and/or performance from the issuer of the bond if certain specified events occur. In the case of performance bonds, which generally have a term of one year, such events include our failure to perform our obligations under the applicable contracts. In general, we would only be liable for these guarantees in the event of default in our performance of our obligations under each contract, the probability of which we believe is remote. Accordingly, no liability has been recorded as of December 31, 2020 and 2019 related to these bonds. Legal Proceedings From time to time, the Parent and/or one or more of its subsidiaries are party to legal, regulatory, or administrative proceedings regarding, among other matters, claims by and against us, and injunctions by third parties arising out of the ordinary course of business. Licenses are also subject to legal challenges by competitors seeking to annul awards made to the Company. The Parent and/or one or more of its subsidiaries are also, from time to time, subjects of, or parties to, ethics and compliance inquiries and investigations related to the Company’s ongoing operations. At December 31, 2020, provisions for litigation matters amounted to $7.9 million. With respect to litigation and other legal proceedings where we have determined that a loss is reasonably possible but we are unable to estimate the amount or range of reasonably possible loss in excess of amounts already accrued, no additional amounts have been accrued, given the uncertainties of litigation and the inherent difficulty of predicting the outcome of legal proceedings. Texas Fun 5’s Instant Ticket Game Five lawsuits have been filed against IGT Global Solutions Corporation (f/k/a GTECH Corporation) in Texas state court arising out of the Fun 5’s instant ticket game sold by the Texas Lottery Commission (“TLC”) from September 14, 2014 to October 21, 2014. Plaintiffs allege each ticket’s instruction for Game 5 provided a 5x win (five times the prize box amount) any time the “Money Bag” symbol was revealed in the “5X BOX”. However, TLC awarded a 5x win only when (1) the “Money Bag” symbol was revealed and (2) three symbols in a pattern were revealed. (a) Steele, James et al. v. GTECH Corp. , filed on December 9, 2014 in Travis County (No. D1GN145114). Through intervenor actions, over 1,200 plaintiffs claim damages in excess of $500.0 million. GTECH Corporation’s plea to the jurisdiction for dismissal based on sovereign immunity was denied. GTECH Corporation appealed. The appellate court ordered that plaintiffs’ sole remaining claim should be reconsidered. (b) Nettles, Dawn v. GTECH Corp. et al. , filed on January 7, 2015 in Dallas County (No. 051501559CV). Plaintiff claims damages in excess of $4.0 million. GTECH Corporation and the TLC won pleas to the jurisdiction for dismissal based on sovereign immunity. Plaintiff lost her appeal and petitioned for Texas Supreme Court review. On April 27, 2018, IGT Global Solutions Corporation petitioned for Texas Supreme Court review and the Texas Supreme Court heard arguments on December 3, 2019 in both the Nettles and Steele cases. On June 12, 2020, the Texas Supreme Court ruled that Plaintiffs in the Nettles and Steele cases could proceed with their fraud allegations in the lower courts; all other claims were dismissed. The Nettles case was dismissed on December 16, 2020 after summary judgment was awarded in favor of IGT Global Solutions Corporation. (c) Guerra, Esmeralda v. GTECH Corp. et al. , filed on June 10, 2016 in Hidalgo County (No. C277716B). Plaintiff claims damages in excess of $0.5 million. (d) Wiggins, Mario & Kimberly v. IGT Global Solutions Corp. , filed on September 15, 2016 in Travis County (No. D1GN16004344). Plaintiffs claim damages in excess of $1.0 million. (e) Campos, Osvaldo Guadalupe et al. v. GTECH Corp. , filed on October 20, 2016 in Travis County (No. D1GN16005300). Plaintiffs claim damages in excess of $1.0 million. We dispute the claims made in each of these cases and continue to defend against these lawsuits. Disposition of Previously Disclosed Matters Illinois State Lottery On February 6, 2017, putative class representatives of retailers and lottery ticket purchasers alleged the Illinois Lottery collected millions of dollars from sales of instant ticket games and wrongfully ended certain games before all top prizes had been sold. Raqqa, Inc. et al. v. Northstar Lottery Group, LLC. , was filed in Illinois state court, St. Clair County (No. 17L51) against Northstar Lottery Group LLC, a consortium in which the Parent indirectly holds an 80% controlling interest. The claims included tortious interference with contract, violations of Illinois Consumer Fraud and Deceptive Practices Act, and unjust enrichment. The lawsuit was removed to the U.S. District Court for the Southern District of Illinois. On May 9, 2018, IGT Global Solutions Corporation and Scientific Games International, Inc. were added as defendants. The parties have settled the case for an amount that is not material to the Company's consolidated financial statements, and the case was dismissed in September 2020. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Shares Authorized and Outstanding The Board of Directors of the Parent (the “Board”) is authorized to issue shares of any class in the capital of the Parent. The authorized shares of the Parent consist of 1.850 billion ordinary shares with a $0.10 per share par value. Ordinary shares outstanding were as follows: December 31, 2020 2019 2018 Balance at beginning of year 204,435,333 204,210,731 203,446,572 Shares issued under restricted stock plans 421,231 224,602 619,614 Shares issued upon exercise of stock options — — 144,545 Balance at end of year 204,856,564 204,435,333 204,210,731 Repurchases of Ordinary Shares The Parent has the authority to repurchase, subject to a maximum repurchase price, a maximum of 20,474,483 ordinary shares of the Company. This authority remains valid until December 24, 2021, unless previously revoked, varied, or renewed at the 2021 annual general meeting. The Parent did not repurchase any of its ordinary shares in 2020, 2019, or 2018. Dividends We declared a $0.20 cash dividend per share during the first quarter of 2020 and all four quarters of 2019 and 2018. Future dividends are subject to Board approval. The RCF Agreement and TLF Agreement limit the aggregate amount of dividends and repurchases of the Parent’s ordinary shares in each year to $300 million based on ratings by Moody’s and S&P. As discussed in Note 16 - Debt, in May 2020, the Company entered into amendments to these agreements which include terms that prohibit restricted payments, including dividends and ordinary share repurchases, through June 30, 2021. Accumulated Other Comprehensive Income The following table details the changes in AOCI: Unrealized Gain (Loss) on: AOCI ($ thousands) Foreign Hedges Other Total Attributable Attributable to IGT PLC Balance at December 31, 2017 338,146 (5,227) 6,001 338,920 1,249 340,169 Change during period (90,309) (163) (4,979) (95,451) 18,691 (76,760) Reclassified to operations (1) (4,254) 536 — (3,718) — (3,718) Tax effect 3,779 (1,904) (29) 1,846 — 1,846 Other comprehensive (loss) income (90,784) (1,531) (5,008) (97,323) 18,691 (78,632) Balance at December 31, 2018 247,362 (6,758) 993 241,597 19,940 261,537 Change during period (18,172) 237 2,877 (15,058) 15,906 848 Reclassified to operations (1) 1,623 (2,183) — (560) — (560) Tax effect 22 495 183 700 — 700 Other comprehensive (loss) income (16,527) (1,451) 3,060 (14,918) 15,906 988 Balance at December 31, 2019 230,835 (8,209) 4,053 226,679 35,846 262,525 Change during period 128,275 (674) (269) 127,332 (59,455) 67,877 Reclassified to operations (1) (507) (47) — (554) — (554) Tax effect (217) 184 — (33) — (33) Other comprehensive income (loss) 127,551 (537) (269) 126,745 (59,455) 67,290 Balance at December 31, 2020 358,386 (8,746) 3,784 353,424 (23,609) 329,815 (1) Foreign currency translation adjustments related to liquidated subsidiaries were reclassified into foreign exchange (loss) gain, net on the consolidated statements of operations for the years ended December 31, 2020 and 2019. Unrealized gain (loss) on hedges were reclassified into service revenue in the consolidated statements of operations for the years ended December 31, 2020, 2019, and 2018, respectively |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities We hold ownership interests in the following variable interest entities (“VIEs”): Name of subsidiary % Ownership held Lottoitalia S.r.l. (“Lottoitalia”) 61.50 % Lotterie Nazionali S.r.l. (“LN”) 64.00 % Northstar New Jersey Lottery Group, LLC (“Northstar NJ”) (1) 82.31 % (1) Northstar New Jersey Holding Company LLC, of which we are a 50.15% shareholder, holds the 82.31% ownership in Northstar NJ Lottoitalia holds a license to operate the Lotto game in Italy through November 2025. LN holds a license to operate the Scratch & Win instant lottery game in Italy through September 2028. Northstar NJ manages a wide range of the lottery’s day-to-day operations in the State of New Jersey, as well as provides marketing and sales services under a license valid through June 2029. We are the principal operating partner fulfilling the requirements under the licenses held by the VIEs. As such, we have the power to direct the activities that significantly affect the VIEs’ economic performance, along with the right to receive benefits or the obligation to absorb losses that could potentially be significant to the VIEs. As a result, we concluded we are the primary beneficiary of the VIEs and they have been consolidated. Accordingly, the balance sheet and operating activity of the VIEs are included in our consolidated financial statements and we adjust the net income (loss) in our consolidated statement of operations to exclude the non-controlling interests’ proportionate share of results. We present the proportionate share of non-controlling interests as equity in the consolidated balance sheets. The carrying amounts and classification of these VIEs’ assets and liabilities in our consolidated balance sheets at December 31, 2020 and 2019 are as follows: December 31, ($ thousands) 2020 2019 Current assets 1,087,002 842,893 Non-current assets 1,556,072 1,652,641 Total assets 2,643,074 2,495,534 Total liabilities 707,530 498,681 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information On July 1, 2020, we adopted a new organizational structure focused on two business segments: Global Lottery and Global Gaming, along with a streamlined corporate support function. During the third quarter of 2020, our chief operating decision maker requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. This resulted in a change in our operating segments and reporting units. As a result, beginning in the third quarter of 2020, we report our financial performance based on our July 1, 2020 new business segments, and analyze revenue and operating income as measures of segment profitability. We have recast our historically presented comparative segment information to conform to the way we internally manage and monitor segment performance. The Global Lottery segment has full responsibility for the worldwide traditional lottery and iLottery business, including sales, operations, product development, technology, and support. The Global Gaming segment has full responsibility for the worldwide gaming business, including iGaming, sports betting, sales, product management, studios, global manufacturing, operations, and technology. Our two business segments are supported by central corporate support functions, including a business and strategic initiatives function, finance, people and transformation, legal, marketing and communications, corporate public affairs, and strategy and corporate development. Certain support costs that are identifiable and that benefit our business segments are allocated to them. Each allocation is measured differently based on the specific facts and circumstances of the costs being allocated. Corporate support function expenses that are not allocated to the business segments, which are principally composed of selling, general and administrative expenses, are reported as Corporate and Other expenses, along with goodwill impairment and the depreciation and amortization of acquired tangible and intangible assets in connection with acquired companies. Through our two business segments, we operate and provide an integrated portfolio of innovative gaming technology products and services including online and instant lottery systems, gaming systems, instant ticket printing, electronic gaming machines, iLottery, sports betting, iGaming, commercial services, and lottery management services. Global Lottery Our Global Lottery segment provides lottery products and services primarily to governmental organizations through operating contracts, facilities management contracts (“FMCs”), lottery management agreements (“LMAs”), and product sales contracts. As part of our lottery product and services, we provide instant and draw-based lottery products, point-of-sale machines, central processing systems, software, commercial services, instant ticket printing services, and other related equipment and support services. We categorize revenue from operating contracts, FMCs, and LMAs as “Operating and facilities management contracts” and revenue from commercial services, software hosting, software maintenance, and other services not included within operating contracts, FMCs, or LMAs as service revenue from “Systems, software, and other”. Revenue included within “Operating and facilities management contracts” include all services required by the contract, including iLottery and instant ticket printing. We categorize sales or sales-type leases of lottery terminals, lottery systems, software licenses, and instant tickets not part of “Operating and facilities management contracts” as product sales from “Lottery products”. Global Gaming Our Global Gaming segment provides gaming products and services including software and game content, casino gaming management systems, video lottery terminals (“VLTs”), amusement with prize machines (“AWPs”), VLT central systems, sports betting, iGaming, and other related equipment and support services to commercial and tribal casino operators. We categorize revenue from Wide Area Progressive services, and operating leases for VLTs, AWPs, and other gaming machines as service revenue from “Gaming terminal services.” We categorize revenue from iGaming services, sports betting, software intellectual property licenses, and systems as service revenue from “Systems, software, and other”. Revenue from the sale or sales-type lease of gaming machines, systems, component parts, and other miscellaneous equipment and services are categorized as product sales from “Gaming terminals” and revenue from systems, software, casino gaming management systems, game content, iGaming products, and spare parts as product sales from “Gaming other”. Segment information is as follows: For the year ended December 31, 2020 ($ thousands) Global Lottery Global Gaming Business Segment Total Corporate and Other Total IGT PLC Service revenue 2,042,652 596,906 2,639,558 — 2,639,558 Product sales 121,346 354,552 475,898 — 475,898 Total revenue 2,163,998 951,458 3,115,456 — 3,115,456 Operating income (loss) 641,930 (205,657) 436,273 (543,738) (107,465) Depreciation and amortization 235,767 155,758 391,525 174,669 566,194 Expenditures for long-lived assets (148,679) (74,877) (223,556) (2,190) (225,746) For the year ended December 31, 2019 ($ thousands) Global Lottery Global Gaming Business Segment Total Corporate and Other Total IGT PLC Service revenue 2,182,961 917,907 3,100,868 — 3,100,868 Product sales 109,884 821,005 930,889 — 930,889 Total revenue 2,292,845 1,738,912 4,031,757 — 4,031,757 Operating income (loss) 697,267 179,548 876,815 (398,899) 477,916 Depreciation and amortization 228,972 187,061 416,033 197,910 613,943 Expenditures for long-lived assets (167,349) (166,932) (334,281) (8,216) (342,497) For the year ended December 31, 2018 ($ thousands) Global Lottery Global Gaming Business Segment Total Corporate and Other Total IGT PLC Service revenue 2,234,801 961,129 3,195,930 — 3,195,930 Product sales 126,889 658,053 784,942 — 784,942 Total revenue 2,361,690 1,619,182 3,980,872 — 3,980,872 Operating income (loss) 763,799 143,340 907,139 (433,542) 473,597 Depreciation and amortization 223,126 171,378 394,504 212,989 607,493 Expenditures for long-lived assets (202,412) (229,182) (431,594) (9,450) (441,044) Geographical Information Revenue from external customers, which is based on the geographical location of our customers, is as follows: December 31, ($ thousands) 2020 2019 2018 United States 1,666,241 2,115,791 2,063,477 Italy 895,942 989,796 973,621 United Kingdom 63,874 73,541 58,681 Rest of Europe 209,080 322,654 313,779 All other 280,319 529,975 571,314 Total 3,115,456 4,031,757 3,980,872 Revenue from one customer in the Global Lottery segment represented approximately 19%, 16%, and 16% of consolidated revenue in 2020, 2019, and 2018, respectively. Long-lived assets, which are comprised of Systems & Equipment and PPE, are based on the geographical location of the assets as follows: December 31, ($ thousands) 2020 2019 United States 841,439 928,857 Italy 176,341 187,169 United Kingdom 13,871 17,687 Rest of Europe 90,646 102,874 All other 77,426 115,060 Total 1,199,723 1,351,647 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Incentive Awards Stock-based incentive awards are provided to directors and employees under the terms of our 2015 Equity Incentive Plan (the “Plan”) as administered by the Board. Awards available under the Plan principally include stock options, performance share units, restricted share units or any combination thereof. The maximum number of new shares that may be granted under the Plan is 11.5 million shares. To the extent any award is forfeited, expires, lapses, or is settled for cash, the award is available for reissue under the Plan. We utilize authorized and unissued shares to satisfy all shares issued under the Plan. Stock Options Stock options are awards that allow the employee to purchase shares of our stock at a fixed price. Stock options are granted under the Plan at an exercise price not less than the fair market value of a share on the date of grant. In 2018, stock options were granted solely to our Chief Executive Officer, which will vest in 2021 subject to certain performance and other criteria, and have a contractual term of approximately six years. No stock options were granted in 2020 or 2019. Stock Awards Stock awards are principally made in the form of performance share units (“PSUs”) and restricted share units (“RSUs”). PSUs are stock awards where the number of shares ultimately received by the employee depends on the Company’s performance against specified targets, which may include Adjusted EBITDA, Adjusted Net Debt and Total Shareholder Return (“TSR”) relative to the Russell Mid Cap Market Index. PSUs typically vest 50% over an approximate three four RSUs are stock awards granted to directors that entitle the holder to shares of common stock as the award vests, typically over a one one two Stock Option Activity A summary of our stock option activity and related information is as follows: Weighted-Average Stock Exercise Price Per Share ($) Remaining Contractual Term (in years) Aggregate Intrinsic Value ($ thousands) Outstanding at January 1, 2020 1,140,566 20.73 Granted — — Exercised — — Expired (718,066) 20.29 Outstanding at December 31, 2020 422,500 21.49 2.19 At December 31, 2020: Vested and expected to vest 250,000 15.53 1.37 352 Exercisable 250,000 15.53 1.37 352 No stock options were exercised in 2020 and 2019. The total intrinsic value of stock options exercised in 2018 was $6.0 million. There were no cash proceeds from stock options exercised in 2018. Fair Value of Stock Options Granted We estimate the fair value of stock options at the date of grant using a valuation model that incorporates key inputs and assumptions as detailed in the table below. The weighted-average grant date fair value of stock options granted during 2018 was $6.84 per share. 2018 Valuation model Monte Carlo Exercise price ($) 30.12 Expected option term (in years) 2.83 Expected volatility of the Company’s stock (%) 35.00 Risk-free interest rate (%) 2.73 Dividend yield (%) 2.66 The expected volatility assumes the historical volatility is indicative of future trends, which may not be the actual outcome. The expected option term is based on historical data and is not necessarily indicative of exercise patterns that may occur. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards, and subsequent events are not indicative of the reasonableness of our original estimates of fair value. Stock Award Activity A summary of our stock award activity and related information is as follows: PSUs Weighted- Average Grant Date Fair Value ($) RSUs Weighted- Average Grant Date Fair Value ($) Nonvested at January 1, 2020 5,060,951 19.41 130,009 14.07 Granted — — 2,375,141 9.04 Vested (474,399) 24.07 (136,161) 13.64 Forfeited (1,229,586) 20.16 (2,606) 9.08 Nonvested at December 31, 2020 3,356,966 18.40 2,366,383 9.05 At December 31, 2020: Unrecognized cost for nonvested awards ($ thousands) 1,052 17,827 Weighted-average future recognition period (in years) 0.27 1.93 The total vest-date fair value of PSUs vested was $2.7 million, $3.7 million, and $24.6 million in 2020, 2019, and 2018, respectively. The total vest-date fair value of RSUs vested was $1.2 million, $0.9 million, and $3.4 million for 2020, 2019, and 2018, respectively. Fair Value of Stock Awards Granted We estimated the fair value of PSUs at the date of grant using a Monte Carlo simulation valuation model, as the awards include a market condition. The market condition is based on the Company’s TSR relative to the Russell Midcap Market Index. During 2020, 2019, and 2018, we estimated the fair value of RSUs at the date of grant based on our stock price. Details of the grants are as follows: 2020 2019 2018 PSUs granted during the year — 2,133,512 1,564,083 Weighted-average grant date fair value ($) — 11.10 28.93 RSUs granted during the year 2,375,141 131,676 68,142 Weighted-average grant date fair value ($) 9.04 14.10 30.23 Modifications 2018 During the first quarter of 2018, we modified the measurement of a performance condition for the outstanding PSUs granted in 2015, as the original vesting conditions were not expected to be satisfied. The modification affected 301 employees and resulted in $13.2 million of compensation cost for the year ended December 31, 2018. During the third quarter of 2018, we modified the measurement of a performance condition for the outstanding PSUs granted in 2016 and 2017, in order to better align the performance conditions with the PSUs granted in 2018. The modification affected 473 employees and resulted in $10.6 million of compensation cost for the year ended December 31, 2018. Stock-Based Compensation Expense Total compensation cost (recovery) for our stock-based compensation plans is recorded based on the employees’ respective functions as detailed below. For the year ended December 31, ($ thousands) 2020 2019 2018 Cost of services (1,137) 2,131 1,923 Cost of product sales (282) 430 445 Selling, general and administrative (4,162) 21,409 27,702 Research and development (1,296) 2,544 3,016 Stock-based compensation expense before income taxes (6,877) 26,514 33,086 Income tax (provision) benefit (1,856) 6,119 7,562 Total stock-based compensation, net of tax (5,021) 20,395 25,524 The current year recovery results from the reversal of prior year expense due to certain PSUs that are no longer forecasted to be achieved. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the computation of basic and diluted loss per share of common stock: For the year ended December 31, ($ and shares in thousands, except per share amounts) 2020 2019 2018 Numerator: Net loss from continuing operations attributable to IGT PLC (939,331) (128,894) (139,380) Net income from discontinued operations attributable to IGT PLC 41,441 109,869 118,030 Net loss attributable to IGT PLC (897,890) (19,025) (21,350) Denominator: Weighted-average shares - basic and diluted 204,725 204,373 204,083 Net loss from continuing operations attributable to IGT PLC per common share - basic and diluted (4.59) (0.63) (0.68) Net income from discontinued operations attributable to IGT PLC per common share - basic and diluted 0.20 0.54 0.58 Net loss attributable to IGT PLC per common share - basic and diluted (4.39) (0.09) (0.10) Certain stock options to purchase common shares were outstanding, but were excluded from the computation of diluted earnings per share, because the exercise price of the options was greater than the average market price of the common shares for the full year, and therefore, the effect would have been antidilutive. During years when we are in a net loss position, certain outstanding stock options and unvested restricted stock awards are excluded from the computation of diluted earnings per share because including them would have had an antidilutive effect. For the years ended December 31, 2020, 2019, and 2018, stock options and unvested restricted stock awards totaling 0.7 million shares, 1.2 million shares, and 1.6 million shares, respectively, were excluded from the computation of diluted earnings per share because including them would have had an antidilutive effect. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We engage in business transactions with certain related parties which include (i) De Agostini S.p.A. (“De Agostini”) or entities directly or indirectly controlled by De Agostini, (ii) other entities and individuals capable of exercising control, joint control, or significant influence over us, and (iii) our unconsolidated subsidiaries or joint ventures. Members of the Board, executives with authority for planning, directing, and controlling the activities of the Company and such Directors’ and executives’ close family members are also considered related parties. We may make investments in such entities, enter into transactions with such entities, or both. De Agostini Group We are majority-owned by De Agostini. Amounts receivable from De Agostini and subsidiaries of De Agostini (the “De Agostini Group”) are non-interest bearing. Transactions with the De Agostini Group include payments for support services provided and office space rented pursuant to a lease entered into prior to the formation of the Company. In addition, certain of our Italian subsidiaries have a tax unit agreement, and in some cases, a value-added tax agreement, with De Agostini pursuant to which De Agostini consolidates certain Italian subsidiaries of De Agostini for the collection and payment of taxes to the Italian tax authority. Related party transactions with the De Agostini Group are as follows: December 31, ($ thousands) 2020 2019 Trade receivables — 2 Tax-related receivables — 2,031 Trade payables 5,096 3,180 Tax-related payables 18,706 17,004 Unconsolidated Subsidiaries and Joint Ventures From time to time, we make strategic investments in publicly traded and privately held companies that develop software, hardware, and other technologies or provide services supporting its technologies. We may also purchase from or make sales to these organizations. Ringmaster S.r.l. (“Ringmaster”) We have a 50% interest in Ringmaster, an Italian joint venture, that is accounted for using the equity method of accounting. Ringmaster provides software development services for our interactive gaming business pursuant to an agreement dated December 7, 2011. Our investment in Ringmaster was $0.8 million and $0.7 million at December 31, 2020 and 2019, respectively. We incurred $6.6 million, $6.1 million, and $10.4 million in expenses to Ringmaster for the years ended December 31, 2020, 2019, and 2018, respectively. Connect Ventures One LP and Connect Ventures Two LP We have held investments in Connect Ventures One LP and Connect Ventures Two LP (the “Connect Ventures”) since 2011 and 2015, respectively, that are accounted for as equity investments. De Agostini also holds investments in the Connect Ventures, and Nicola Drago, the son of director Marco Drago, holds a 10% ownership interest in, and is a non-executive member of, Connect Ventures LLP, the fund that manages the Connect Ventures. The Connect Ventures are venture capital funds that target “early stage” investment operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Preparation The accompanying consolidated financial statements and notes of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements are stated in thousands of U.S. dollars (except share and per share data) unless otherwise indicated. We have reclassified certain prior period amounts to align with the current period presentation and recast certain prior period amounts, as discussed below. All references to “U.S. dollars,” “U.S. dollar,” “U.S. $,” “USD,” and “$” refer to the currency of the United States of America. All references to “euro,” “EUR,” and “€” refer to the currency introduced at the start of the third stage of the European Economic and Monetary Union pursuant to the Treaty on the Functioning of the European Union, as amended. During the fourth quarter of fiscal 2020, the Company announced that its wholly-owned subsidiary, Lottomatica, had entered into a definitive agreement to sell one hundred percent of the share capital of Lottomatica Videolot Rete S.p.A. and Lottomatica Scommesse S.r.l., the members of the IGT group which conduct its Italian B2C gaming machine, sports betting, and digital gaming businesses, to Gamenet Group S.p.A The Company’s Italian Gaming B2C business met the criteria to be reported as a discontinued operation and, as a result, the Italian Gaming B2C historical financial results are reflected in the Company's consolidated financial statements as a discontinued operation, and assets and liabilities were retrospectively reclassified as assets and liabilities held for sale for all periods presented. Refer to Note 3 - Discontinued Operations and Assets Held for Sale for further information. | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Parent, our majority-owned or controlled subsidiaries, and any variable interest entities in which we are the primary beneficiary. Intercompany accounts and transactions have been eliminated in consolidation. Earnings or losses attributable to non-controlling interests in a subsidiary are included in net (loss) income in the consolidated statements of operations. | |
Recasting of Certain Prior Period Information | Recasting of Certain Prior Period Information On July 1, 2020, we adopted a new organizational structure focused on two business segments: Global Lottery and Global Gaming, along with a streamlined corporate support function. During the third quarter of 2020, our chief operating decision maker, who is also our Chief Executive Officer, requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. As a result, we report our financial performance based on our new business segments described in Note 21 – Segment Information. We have recast our historically presented comparative segment information to conform to the way we internally manage and monitor segment performance as of the third quarter of 2020. This realignment of our operating segments has a pervasive impact on the presentation of our comparative period data. This change primarily impacted Note 4 - Revenue Recognition , Note 5 - Trade and Other Receivables, net , Note 7 - Other Assets , Note 12 - Restructuring , Note 13 - Goodwill , and Note 21 – Segment Information , with no impact on consolidated revenue, net income, or cash flows. Assets and Liabilities Held for Sale The Company classifies assets and liabilities (disposal groups) to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the disposal group; the disposal group is available for immediate sale in its present condition subject to terms customary for sales of such disposal groups; an active program to locate a buyer and other actions required to complete the plan to sell the disposal group have been initiated; the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale within one year; the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a disposal group until the date of sale. The Company assesses the fair value of a disposal group, less any costs to sell, each reporting period it remains classified as held for sale and reports any subsequent changes as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the carrying value of the disposal group at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets held for sale and liabilities held for sale in the consolidated statements of financial position in each period presented. Refer to Note 3 - Discontinued Operations and Assets Held for Sale , for further information. | |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements requires us to make estimates, judgments, and assumptions which affect the reported amounts of assets, liabilities, equity, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis we evaluate our estimates, judgments, and methodologies. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities, and equity, and the amount of revenues and expenses. The full extent to which the outbreak of a new strain of coronavirus, COVID-19 (“COVID-19”), will directly or indirectly impact our business, results of operations, and financial condition, including sales, expenses, reserves and allowances, manufacturing, research and development costs, and employee-related amounts, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain it or treat it, as well as the economic impact on local, regional, national, and international customers and markets. We have made estimates of the impact of COVID-19 within our financial statements and there may be changes to those estimates in future periods. Actual results may differ from these estimates. Given the anticipated continued impact of COVID-19 and the resulting extended economic slowdown, we have revised our forecast, evaluated our liquidity position, and evaluated our ability to comply with the amended financial covenants in our debt agreements as of the date of issuance of these consolidated financial statements. Based on the revised forecast, management believes that our financial position, forecasted net cash provided by operations, available cash and cash equivalents at December 31, 2020, and borrowing capacity under our amended Revolving Credit Facilities due July 2024 as described in Note 16 - Debt | |
Revenue Recognition | Revenue Recognition We account for a contract with a customer when: i. we have written approval; ii. the contract is committed; iii. the rights of the parties, including payment terms, are identified; iv. the contract has commercial substance; and v. collectability of consideration is probable. A performance obligation is a promise in a contract with a customer to transfer products or services that are distinct. If we enter into two or more contracts at or near the same time, the contracts may be combined and accounted for as one contract, in which case we determine whether the services or products in the combined contract are distinct. A service or product that is promised to a customer is distinct if both of the following criteria are met: • The customer can benefit from the service or product either on its own or together with other resources that are readily available to the customer; and • Our promise to transfer the service or product to the customer is separately identifiable from other promises in the contract. Revenue is recognized when (or as) control of a promised service or product transfers to a customer, in an amount that reflects the consideration (which represents the transaction price) to which we expect to be entitled in exchange for transferring that service or product. If the consideration promised in a contract includes a variable amount, we estimate the amount to which we expect to be entitled using either the expected value or most likely amount method. Our contracts may include terms that could cause variability in the consideration, including, for example, rebates, volume discounts, service-level penalties, and performance bonuses or other forms of contingent revenue. Our standard payment terms dictate that payment is due upon receipt of invoice, payable within 30 days. Invoices are generally issued as control transfers and/or as services are rendered. Additionally, in determining the transaction price, we adjust the promised amount of consideration for the effects of the time value of money if the payment terms are not standard and the timing of payments agreed to by the parties to the contract provide the customer or the Company with a significant benefit of financing, in which case the contract contains a significant financing component. Most arrangements that contain a significant financing component include explicit financing terms. We may include subcontractor services or third-party vendor services or products in certain arrangements. In these arrangements, revenue from sales of third-party vendor services or products are recorded net of costs when we are acting as an agent between the customer and the vendor, and gross when we are the principal for the transaction. To determine whether we are an agent or principal, we consider whether we obtain control of the services or products before they are transferred to the customer. In making this evaluation, several factors are considered, most notably whether we have primary responsibility for fulfillment to the customer, as well as inventory risk and pricing discretion. Service Revenue Service revenue is derived from the following sources: • Operating and Facilities Management Contracts; • Gaming terminal services; and • System, software and other Operating and Facilities Management Contracts Our revenue from operating contracts is derived primarily from long-term exclusive operating licenses in Italy. Under operating contracts, we manage all the activities along the lottery value chain including collecting wagers, paying out prizes, managing all accounting and other back-office functions, running advertising and promotions, operating data transmission networks and processing centers, training staff, providing retailers with assistance, and supplying materials for the game. In most cases, the arrangement is accounted for as a single performance obligation composed of a series of distinct services that are substantially the same and have the same pattern of transfer (i.e., distinct days of service). Under operating contracts, we typically satisfy the performance obligation and recognize revenue over time because the customer simultaneously receives and consumes the benefits provided as we perform the services. The amount of consideration to which we are typically entitled is variable based on a percentage of sales. Revenue is typically recognized in the amount that we have the right to invoice the customer as this corresponds directly with the value to the customer of our performance completed to date. In arrangements where we are performing services on behalf of the government and the government is considered our customer, revenue is recognized net of prize payments, taxes, retailer commissions, and remittances to state authorities. Under operating contracts, we are generally required to pay an upfront license fee. Refer to the Upfront License Fee policy below for further details. Our revenue from facilities management contracts (“FMC”) is generated by assembling, installing, and operating the online lottery system and related point-of-sale equipment. Under a typical FMC, we maintain ownership of the technology and are responsible for capital investments throughout the duration of the contract. FMCs typically include a wide range of support services that are provided throughout the contract and are part of the integrated solution that the customer has contracted to obtain. In most cases, the arrangement is accounted for as a single performance obligation composed of a series of distinct services that are substantially the same and that have the same pattern of transfer. Under FMCs, we typically satisfy the performance obligation and recognize revenue over time because the customer simultaneously receives and consumes the benefits provided as we perform the services. The amount of transaction price to which we are entitled is typically variable based on a percentage of sales, although under certain of its agreements, the Company receives fees based on a fixed fee arrangement. Revenue is typically recognized in the amount that we have the right to invoice the customer, as this corresponds directly with the value to the customer of our completed performance. Gaming terminal services Our revenue from gaming terminal services is generated by providing customers with proprietary land-based gaming systems and equipment under a variety of recurring revenue or lease arrangements, including a percentage of amounts wagered, a percentage of net win, or a fixed daily/monthly fee. Included in gaming terminal services are wide area progressive (“WAP”) systems. WAP systems consist of linked slot machines located in multiple casino properties, connected to a central computer system. WAP systems include a Company-sponsored progressive jackpot that increases with every wager until a player wins the top award combination. Casinos with WAP machines pay a percentage of amounts wagered for services related to the design, assembly, installation, operation, maintenance, and marketing of the WAP systems, as well as funding and administration of Company-sponsored progressive jackpots. A portion of the total fee collected is allocated to the WAP jackpot. Since the jackpot is a payment to the customer, the portion allocated to the jackpot is classified as a reduction of revenue. In some arrangements, there is a single performance obligation composed of a series of distinct services that are substantially the same and that have the same pattern of transfer (i.e., distinct days of service). The amount of transaction price to which we are entitled typically is variable based on a percentage of wagers. This results in revenue recognition that corresponds with the value to the customer for the services transferred in the amount that we have the right to invoice. In other arrangements where the end customer is the player, we record revenue net of prize payouts once the wagering outcome has been determined. Systems, software, and other – Global Lottery Our lottery contracts generally include other services, including telephone support, software maintenance, hardware maintenance, and the right to receive unspecified upgrades or enhancements on a when-and-if-available basis, and other professional services including software development. Fees earned for other services are generally recognized as service revenue in the period the service is performed (i.e., over the support period). We also develop technology to enable lotteries to offer commercial services over their existing lottery infrastructure or over standalone networks separate from the lottery. Leveraging our distribution network and secure transaction processing, we offer high-volume processing of commercial transactions including: prepaid cellular telephone recharges, bill payments, e-vouchers and retail-based programs, electronic tax payments, stamp duty services, prepaid card recharges, and money transfers. These services are primarily offered outside of North America. In most cases, these arrangements are considered to be short in duration. The amount of transaction price that we are typically entitled to is variable based on the number of transactions processed. Revenue is typically recognized in the amount that we have the right to invoice the customer as this corresponds directly with the value to the customer of our completed performance. Systems, software, and other – Global Gaming We also generate revenue from other services, including video central system monitoring, system support, licensing of IP, and sports betting. Our contracts generally include other services, including telephone support, software maintenance, content licensing, royalty fees, hardware maintenance, and the right to receive unspecified updates or enhancements on a when-and-if-available basis, and other professional services. Fees earned for other services are generally recognized as service revenue in the period the service is performed (i.e., over the support period). We provide sports betting technology and services to commercial and tribal operators and lotteries in regulated markets, primarily in the U.S. In the service contracts to our U.S. licensed sports book operators, we provide the sports betting platform and a variety of services including installation, configuration and integration services. For customers who want to have an outsourcing model, we also offer trading services with the inclusion of odds setting and risk management. Under these contracts, we generally record a percentage of net sports revenue over the contractual term. Product Sales Product sales are derived from the following sources: • Lottery products • Gaming terminals • Gaming other Lottery products Lottery product revenue primarily includes the sale of lottery equipment, lottery systems and printed products. Our revenue from the sale of lottery systems and equipment typically includes multiple performance obligations, where we assemble, sell, deliver, and install a turnkey system (inclusive of point-of-sale terminals, if applicable) or deliver equipment and license the computer software for a fixed price, and the customer subsequently operates the system or equipment. Our credit terms are predominantly short-term in nature. We also grant extended payment terms under contracts where the sale is typically secured by the related equipment sold. Revenue from the sale of lottery systems and equipment is recognized based upon the contractual terms of each arrangement. These arrangements generally include customer acceptance provisions and general rights to terminate the contract if we are in breach of the contract or at the convenience of the customer. In these arrangements, the performance obligation is satisfied over time if the customer controls the asset as it is created (i.e., when the asset is built at the customer site) or if our performance does not create an asset with an alternative use and we have an enforceable right to payment plus a reasonable profit for performance completed to date. If revenue is not recognized over time, it is generally recognized upon transfer of physical possession of the goods or the satisfaction of customer acceptance provisions. If the transaction includes multiple performance obligations, it is accounted for under arrangements with multiple performance obligations, discussed below. Our other lottery product sales are primarily derived from the production and sales of instant ticket games under multi-year contracts. In these arrangements, the performance obligation is generally satisfied at a point in time (i.e., upon transfer of control of the game tickets to the customer) based on the contractual terms of each arrangement. Gaming terminals Our revenue from the sale or sales-type lease of gaming terminals includes embedded game content, machine related equipment, licensing and royalty fees, and component parts. Our credit terms are predominantly short-term in nature. We also grant extended payment terms under contracts where the sale is typically secured by the related equipment sold. Revenue from the sale of gaming machines is recognized based upon the contractual terms of each arrangement, but predominantly upon transfer of physical possession of the goods or the lapse of customer acceptance provisions. If the sale of gaming machines includes multiple performance obligations, these arrangements are accounted for under arrangements with multiple performance obligations, discussed below. Gaming other Other gaming product revenue is primarily comprised of gaming system sales, content licensing, software sales, non-machine related equipment and component parts (including game themes and electronic conversion kits). Our revenue from the sale of gaming systems typically includes multiple performance obligations, where we sell, deliver, and install a turnkey system or deliver equipment and license the computer software for a fixed price, and the customer subsequently operates the system. These arrangements generally include customer acceptance provisions and general rights to terminate the contract if we are in breach of the contract. Such arrangements include hardware, software, and professional services. In these arrangements, the performance obligation is generally satisfied upon transfer of physical possession of the goods or the satisfaction of customer acceptance provisions. Arrangements with Multiple Performance Obligations We often enter into contracts that consist of a combination of services and products based on the needs of our customers, which may include post-contract support for the software and a contract for post-warranty maintenance service for the hardware. These contracts consist of multiple services and products, whereby the hardware and software may be delivered in one period and the software support and hardware maintenance services are delivered over time. To the extent that a service or product in an arrangement with multiple performance obligations is subject to other specific accounting guidance, that service or product is accounted for in accordance with such specific guidance. For all other distinct services and products in these arrangements, the arrangement transaction price is allocated to each performance obligation on a relative standalone selling price basis or another method that depicts the amount of consideration to which we expect to be entitled in exchange for transferring the promised services or products. If the services and products are not distinct, we determine an appropriate measure of progress based on the nature of our overall promise for the single performance obligation. To the extent we grant the customer the option to acquire additional services or products in one of these arrangements, we account for the option as a distinct performance obligation in the contract only if the option provides a material right to the customer that it would not receive without entering into the contract (i.e., a significant discount incremental to the range of discounts typically given for the service or product), in which case the customer in effect pays in advance for the option to purchase future services or products. We allocate a portion of the transaction price to the material right and recognize revenue when those future services or products are transferred or when the option expires. Standalone Selling Price We allocate the transaction price to each performance obligation on a relative standalone selling price (“SSP”) basis. The SSP is the price at which we would sell a promised service or product separately to a customer. In some instances, we are able to establish SSP based on the observable prices of services or products sold separately in comparable circumstances to a similar customer. We typically establish an SSP range for our services and products that are reassessed on a periodic basis or when facts and circumstances change. In other instances, we may not be able to establish an SSP range based on observable prices, and we estimate the SSP by considering multiple factors including, but not limited to, overall market conditions, including geographic or regional specific factors, competitive positioning, competitor actions, internal costs, profit objectives, and pricing practices. Estimating SSP is a formal process that includes review and approval by management. Contract Costs Certain eligible, non-recurring costs incurred in the initial phases of service contracts are deferred and amortized ratably over the expected period of benefit, which includes anticipated contract renewals or extensions. Recurring operating costs in these contracts are recognized as incurred. Practical Expedients and Exemptions We report revenue net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions. We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses in our consolidated statements of operations. For certain of our long-term contracts, we capitalize and amortize incremental costs of obtaining a contract (e.g., sales commissions) on a straight-line basis over the expected customer relationship period if we expect to recover those costs. We do not account for significant financing components if the period between when we transfer the promised service or product to the customer and when the customer pays for that service or product will be one year or less. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) performance obligations for which we recognize revenue at the amount that we have the right to invoice for services performed, (iii) contracts for which variable consideration is accounted for in accordance with sales-based or usage-based royalty guidance, and (iv) wholly unperformed contracts. Contract Assets and Liabilities Contract assets arise from contracts when revenue is recognized over time and the amount of revenue recognized exceeds the amount billed to the customer. These amounts are included in contract assets until the right to payment is no longer conditional on events other than the passage of time. Contract liabilities include deferred revenue, advance payments, and billings in excess of revenue recognized. | |
Stock-Based Compensation | Stock-Based CompensationStock-based compensation represents the cost related to stock-based awards granted to directors and employees. Stock-based compensation cost is measured at the grant date or modification date, based on the estimated fair value of the award and recognized as expense, net of estimated forfeitures, over the vesting period(s). For awards subject to cliff vesting, compensation cost is recognized by way of a straight-line method over the award’s expected vesting period. For awards subject to graded vesting, compensation cost is recognized by way of an accelerated attribution method over the entire awards’ expected vesting periods. | |
Advertising | Advertising Advertising costs are expensed as incurred. Advertising expense was $25.0 million, $34.2 million, and $51.9 million for the years ended December 31, 2020, 2019, and 2018, respectively. | |
Research and Development Costs | Research and Development CostsResearch and development costs (“R&D”), which include salaries and benefits, stock-based compensation, consultants’ fees, facilities-related costs, material costs, depreciation, and travel, are expensed as incurred. | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist primarily of highly liquid investments purchased with an original maturity of three months or less at the date of acquisition, such as bank deposits, money market funds, and interest bearing bank accounts with insignificant interest rate risk. The fair value of cash and cash equivalents approximates the carrying amount. | |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash EquivalentsWe are required by gaming regulation to maintain sufficient reserves in restricted cash accounts to be used for the purpose of funding payments to WAP jackpot winners. These restricted cash balances are based primarily on the jackpot meters displayed to slot players, or for previously won jackpots, and vary by jurisdiction. Under our Italian Lotto contract, we deposit wagers, net of prizes paid and retailer commissions retained by the retailer at point of sale, into bank accounts, the use of which is restricted based on the contract with our customer. Restricted cash is also maintained for interactive digital player deposits, collections on factored and serviced receivables not yet paid through to the third-party owner, and for customer funds received in relation to the provision of our commercial services. These amounts are restricted based on the contracts with our customers or local regulations. | |
Allowance for Credit Losses | Allowance for Credit Losses We maintain an allowance for credit losses on receivables resulting from the expected failure or inability of our customers to make required payments. The allowance is regularly reviewed by considering factors such as the creditworthiness of our customers, historical experience, aging of receivables, and current market and economic conditions, as well as management’s expectations of future conditions when appropriate. The allowance is deducted from the amortized cost basis of the receivable to present the net amount expected to be collected. We estimate expected credit losses on receivables on a collective (pool) basis when similar risk characteristics exist. Trade and other receivables and customer financing receivables represent the initial pools which are segregated further by business segment, geography, internal risk rating, and aging. The risk of loss is assessed over the contractual life of the receivables and we adjust historical loss rates for current and future conditions based on qualitative considerations. The expected loss rate for each receivable pool is applied to the aggregate receivable balance to determine the allowance requirement. Receivables are written off against the allowance in the period they are determined to be uncollectible. We determine delinquency based on the contractual payment terms. An account may be considered delinquent if there are unpaid balances remaining on the account the day after the contractual due date. For amounts due from certain government customers in the Global Lottery business segment, we have not established an allowance as we have no expectation of loss based on a long history of no credit losses and the explicit guarantee of a sovereign entity. | |
Inventories | Inventories Inventories are stated at the lower of cost (applying the first in, first out method) and net realizable value. Allowances are made for defective, obsolete, or excess inventory. | |
Systems, Equipment and Other Assets Related to Contracts, Net and Property, Plant and Equipment, Net | Systems, Equipment and Other Assets Related to Contracts, Net and Property, Plant and Equipment, Net We have two categories of fixed assets: systems, equipment and other assets related to contracts (“Systems & Equipment”); and property, plant and equipment (“PPE”). Systems & Equipment are assets that primarily support our operating contracts, FMCs, and WAP systems (collectively, the “Contracts”) and are principally composed of lottery and gaming assets. PPE are assets we use internally, not associated with Contracts, primarily related to production and assembly, selling, general and administration, and R&D. Systems & Equipment and PPE are stated at cost, net of accumulated depreciation and accumulated impairment loss, if any. Depreciation commences when the asset is placed in service and is recognized on a straight-line basis over the estimated useful lives of the assets. Repair and maintenance costs are expensed as incurred, whereas major improvements that increase asset values and extend useful lives are capitalized. The estimated useful lives for Systems & Equipment depends on the type of asset. Lottery assets (such as terminals, mainframe computers, communications equipment, and software development costs) have estimated useful lives that generally do not exceed 10 years and commercial gaming machines have estimated useful lives of three The estimated useful lives for PPE are 40 years for buildings and five Systems & Equipment and PPE are tested for impairment whenever events or changes in circumstances indicate the carrying amount of those assets may not be recoverable. An impairment loss is recognized only if the carrying amount is not recoverable and exceeds its fair value. The carrying amount is not recoverable if it exceeds the sum of the undiscounted forecasted cash flows resulting from the use and eventual disposition of such asset. An impairment loss is measured as the amount by which the carrying amount exceeds its fair value. | |
Goodwill | Goodwill The assets and liabilities of acquired businesses are recorded under the acquisition method of accounting at their estimated fair values at the date of acquisition. Goodwill represents costs in excess of fair values assigned to the underlying identifiable net assets of acquired businesses, and is stated at cost less accumulated impairment losses. Effective July 1, 2020, the Company adopted a new organizational structure focused on two business segments, Global Lottery and Global Gaming, along with a streamlined corporate support function. This resulted in a change in our operating segments and reporting units. Prior to this change, we had four reporting units: North America Gaming and Interactive, North America Lottery, International, and Italy. Goodwill has been allocated to and is tested for impairment at the reporting unit level, which is the same level as our operating segments. We evaluate our reporting units annually and if necessary, reassign goodwill using a relative fair value approach. As of December 31, 2020 we have identified two reporting units - Global Lottery and Global Gaming. Goodwill is tested for impairment annually, in the fourth quarter, or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. We either first perform a qualitative assessment to determine whether it is more likely than not that the fair value of goodwill is less than its carrying amount and whether the quantitative analysis is necessary, or elect to perform a quantitative one-step process. The goodwill impairment test compares the fair value of a reporting unit with its carrying amount and an impairment loss is recognized for the amount by which the carrying amount exceeds the reporting | |
Other Intangible Assets | Other Intangible Assets Other intangible assets, which include indefinite-lived and definite-lived intangible assets, are stated at cost, less accumulated amortization and accumulated impairment losses. Indefinite-lived intangible assets are composed of trademarks for which there is no foreseeable limit of the period over which they are expected to generate net cash inflows. Definite-lived intangible assets, which are primarily composed of customer relationships and computer software and game library, are capitalized and amortized on a straight-line basis over their estimated economic lives. Amortization of software-related intangibles is included in cost of services and cost of product sales and amortization of other intangible assets is included in selling, general and administrative expenses in the consolidated statement of operations. Estimated useful lives are determined considering the period the assets are expected to contribute to future cash flows. The estimated economic lives of our definite-lived intangible assets are as follows: Category Estimated Trademarks 1 - 20 years Developed technologies 2 - 15 years Customer relationships 2 - 20 years Computer software and game library 3 - 14 years Licenses 3 - 23 years Other 4 - 17 years | |
Capitalized Software Development Costs | Capitalized Software Development Costs Costs incurred in the development of our externally-sold software products are expensed as incurred, except certain software development costs eligible for capitalization. Software development costs incurred subsequent to establishing technological feasibility and through the general release of the software products are capitalized. Capitalized costs are amortized over the products’ estimated economic life to cost of product sales in the consolidated statements of operations. | |
Capitalized Software Development Costs | Costs incurred during the application development phase of software for services provided to customers are capitalized as internal-use software and amortized over the useful life to cost of services. Costs incurred during the application of software for internal use are capitalized and amortized over the useful life to selling, general and administrative expenses in the consolidated statements of operations. | |
Upfront License Fees | Upfront License Fees We periodically make long-term investments in contracts with customers and obtain licenses to supply products and services to the customers. As consideration, we pay license fees, which are classified as other non-current assets in the consolidated balance sheets. We recognize the amortization of the license fees as a reduction of service revenue over the estimated economic life of the license term. This method reflects the pattern in which economic benefits are expected to be realized. The recoverability of each payment is subject to significant estimates about future revenues related to the contracts’ future cash flows. We evaluate these assets for impairment and update amortization rates on an agreement by agreement basis. The assets are reviewed for impairment whenever events or changes in circumstances indicate their carrying amount may not be recoverable. In periods in which payments are made to the customer, we classify the payment as a cash outflow from operating activities in the consolidated statements of cash flows. | |
Jackpot Accounting | Jackpot Accounting We incur costs to fund jackpots and accrue jackpot liabilities with every wager on devices connected to a WAP system. Jackpot liabilities are estimated based on the size of the jackpot, the number of WAP units in service, variations and volume of play, and interest rate movements. Jackpots are generally payable to winners immediately, in the case of instant wins, or in equal annual installments over 20 to 26 years. Winners may elect to receive a lump sum payment for the present value of the jackpot discounted at applicable interest rates in lieu of periodic annual installments. Jackpot liabilities are composed of payments due to previous winners, and amounts due to future winners of jackpots not yet won. Liabilities due to previous winners for periodic payments are carried at the accreted cost of a qualifying U.S. government or agency annuity investment that may be purchased at the time of the jackpot win. If the periodic liability is not initially funded with an annuity investment, it is discounted and accreted using the risk-free rate at the time of the jackpot win. Liabilities due to future winners are recorded at the present value of the estimated amount of jackpots not yet won. We estimate the present value of these liabilities using current market rates, weighted with historical lump sum payout election ratios. Based on the most recent historical patterns, approximately 85% of winners will elect the lump sum payment option. The current portion of these liabilities are estimated based on historical experience with winner payment elections, in conjunction with the theoretical projected number of jackpots. | |
Legal and Other Contingencies | Legal and Other Contingencies Loss contingency provisions arising from a legal proceeding or claim are recorded for probable and estimable losses at the best estimate of a loss, or when a best estimate cannot be made, at the minimum estimated loss, the determination of which requires significant judgment. If it is reasonably possible but not probable that a liability has been incurred, or if the amount of a probable loss cannot be reasonably estimated, the amount or range of estimated loss is disclosed, if material. We evaluate our provisions for legal contingencies at least quarterly and, as appropriate, establish new provisions or adjust existing provisions to reflect the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings, and other relevant events and developments, the advice of counsel, and the assumptions and judgment of management. Legal costs are expensed as incurred. | |
Fair Value Measurements | Fair Value Measurements We account for certain financial assets and liabilities at fair value. Financial assets and liabilities are categorized, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the use of observable inputs and the lowest priority to the use of unobservable inputs. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. These levels are as follows: • Level 1 - inputs are based upon unadjusted quoted prices for identical instruments in active markets. • Level 2 - inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the instruments. | |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative financial instruments for the management of foreign currency risks and interest rate risks. We do not enter into derivatives for speculative purposes. Derivatives are recognized as either assets or liabilities in the consolidated balance sheet at fair value. All derivatives are recorded gross, except netting of foreign exchange contracts and counterparty netting of interest receivable and payable related to interest rate swaps, as applicable. The accounting for changes in the fair value of a derivative depends on the nature of the hedge and the hedge effectiveness. Derivative gains and losses are reported in the consolidated statements of cash flows consistent with the classification of the cash flows from the underlying hedged items. For derivative instruments designated as cash flow hedges, gains and losses are recorded in other comprehensive income (loss) and are subsequently reclassified when the hedged item affects earnings. At that time, the amount is reclassified from other comprehensive income (loss) to the same income statement line as the earnings effect of the hedged item. For derivative instruments designated as fair value hedges, changes in fair value are recorded in interest income (expense) and are offset by changes in the fair value of the underlying debt instrument due to changes in the benchmark interest rate. In the event the derivative instruments are subsequently de-designated as hedges, the change in fair value is recognized in interest expense, net in the consolidated statements of operations with no corresponding offset to debt. For derivative instruments designated as net investment hedges, the spot portion of the derivative gain or loss is reported in foreign currency translation within other comprehensive income (loss) to offset any gains or losses on translation of the net investment in the subsidiary. All other components of the derivative fair value will be reported in income, as either interest income or interest expense, on an amortized basis. Derivative instruments not designated as hedges are recognized in the consolidated balance sheet at fair value with the changes in fair value recorded in foreign exchange (loss) gain, net in the consolidated statements of operations. | |
Leases | Leases We determine whether a contract is or contains a lease at inception. As a lessee, we recognize right-of-use (“ROU”) assets and lease liabilities on the lease commencement date based on the present value of lease payments over the lease term. ROU assets also include any upfront lease payments or initial direct costs and are adjusted for lease incentives received. We consider renewal and termination options, including whether they are reasonably certain to be exercised, in determining the lease term and establishing the ROU assets and lease liabilities. ROU assets and lease liabilities are calculated using our incremental borrowing rate, which is based on the lease currency and length of the lease, unless the implicit rate is determinable. Most of our lease contracts contain both lease and non-lease components. As a lessee, we combine lease and non-lease components into a single lease component for all classes of underlying assets except certain communication equipment. For certain communication equipment, we allocate the consideration between lease and non-lease components based on relative standalone price. Lease expense is recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred except for certain rent payments that depend on an index, which are included in lease payments using the index rate in effect as of the lease commencement date. Short-term leases, which are leases with an initial term of 12 months or less with no purchase options that are reasonably certain of exercise, are not recognized on the balance sheet. The rental payments are recognized as lease expense on a straight-line basis over the lease term. Certain of our long term lottery and commercial gaming service arrangements include leases for equipment installed at customer locations. As the lessor, we combine lease and non-lease components for all classes of underlying assets in arrangements that involve operating leases. The single combined component is accounted for under ASC 842, Leases , or ASC 606, depending on which component is the predominant component in the arrangement. If a component cannot be combined, the consideration is allocated between the lease component and the non-lease component based on relative standalone selling price. | |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the tax basis of assets and liabilities and their reported amounts using the enacted tax rates in effect for the year in which the differences are expected to reverse. Tax credits are generally recognized as reductions of income tax provisions in the year in which the credits arise. The measurement of deferred tax assets is reduced by a valuation allowance if, based upon available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The effect of a change in income tax rates is recognized as income or expense in the period that includes the enacted or substantively enacted date. Accounting for uncertainty in income taxes recognized in the consolidated financial statements is in accordance with accounting authoritative guidance, which prescribes a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more likely than not” to be sustained, the tax position is then assessed to determine the amount of the benefit to recognize in the consolidated financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50 percent likelihood of being realized upon ultimate settlement. We recognize interest and penalties related to unrecognized tax benefits on the provision for taxes line of the consolidated statement of operations. Accrued interest and penalties are included on the related tax liability line in the consolidated balance sheets. We use the period cost method for global intangible low-taxed income (“GILTI”) provisions and therefore have not recorded deferred taxes for basis differences expected to reverse in future periods. | |
Foreign Currency Translation | Foreign Currency TranslationThe financial statements of subsidiaries with functional currencies other than the U.S. dollar are translated into U.S. dollars, with the resulting translation adjustments recorded as a component of accumulated other comprehensive income (“AOCI”) within shareholders’ equity. Assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the balance sheet date, while income and expense items are translated using the average exchange rates during the period. | |
New Accounting Standards - Recently Adopted and Not Yet Adopted | New Accounting Standards - Recently Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). In 2018, 2019, and 2020, the FASB amended ASU 2016-13. ASU 2016-13 and subsequent amendments (collectively “ASC 326”) replace the incurred loss impairment methodology in prior GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans, and other financial instruments, we are required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. We adopted ASC 326 as of January 1, 2020 using the modified retrospective approach, which resulted in a cumulative effect adjustment to retained deficit upon adoption with no restatement of prior periods. The adoption did not have a material impact on our consolidated financial statements. In April 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-04, Codification improvements to Topic 326, Financial instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (“ASU 2019-04”). This update clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments (addressed by ASUs 2016-13, 2017-12, and 2016-01 respectively). We adopted ASU 2019-04 in the first quarter of 2020 and applied it prospectively. The adoption did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which provides guidance around disclosure requirements for fair value measurement of investments. We adopted ASU 2018-03 in the first quarter of 2020 and applied its provisions prospectively and retrospectively in accordance with the guidance. The adoption did not have a material impact on our consolidated financial statements. On January 1, 2018 the Company adopted ASC 606, Revenue from Contracts with Customers , using a modified retrospective application approach which was applied to customer contracts, in their modified state, that were not completed as of January 1, 2018. New Accounting Standards - Not Yet Adopted In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40) (“ASU 2020-06”). This update simplifies the convertible debt accounting framework by reducing the number of accounting models used to account for convertible debt and preferred stock instruments. It also amends the accounting for certain contracts in an entity's own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies the diluted earnings per share calculations for convertible debt instruments. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the timing and impact of adopting this guidance. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This update provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective as of March 12, 2020 through December 31, 2022. We are currently evaluating these optional elections and the timing and impact of adopting this guidance. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This update provides, among other things, simplifications for accounting for income taxes by removing certain exceptions. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years, with early adoption permitted. We will adopt ASU 2019-12 upon the effective date and do not expect it to have a material impact upon adoption. We do not currently expect that any other recently issued accounting guidance will have a significant effect on the consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Intangible Assets Useful Life | The estimated economic lives of our definite-lived intangible assets are as follows: Category Estimated Trademarks 1 - 20 years Developed technologies 2 - 15 years Customer relationships 2 - 20 years Computer software and game library 3 - 14 years Licenses 3 - 23 years Other 4 - 17 years Intangible assets at December 31, 2020 and 2019 are summarized as follows: December 31, 2020 December 31, 2019 ($ thousands) Weighted- Average Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Amortized: Customer relationships 15.5 2,300,034 1,229,939 1,070,095 2,302,118 1,107,363 1,194,755 Computer software and game library 5.6 917,950 783,671 134,279 882,049 723,768 158,281 Trademarks 14.1 186,218 91,807 94,411 185,285 76,196 109,089 Developed technologies 5.6 225,108 212,562 12,546 219,448 203,121 16,327 Licenses 3.5 69,148 58,550 10,598 60,763 48,188 12,575 Other 8.9 37,382 26,957 10,425 34,600 21,013 13,587 3,735,840 2,403,486 1,332,354 3,684,263 2,179,649 1,504,614 Unamortized: Trademarks 245,000 — 245,000 245,000 — 245,000 Total intangible assets, excluding goodwill 3,980,840 2,403,486 1,577,354 3,929,263 2,179,649 1,749,614 |
Discontinued Operations and A_2
Discontinued Operations and Assets Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Financial Information of Discontinued Operations and Assets Held for Sale | Summarized financial information for discontinued operations is shown below: For the year ended December 31, ($ thousands) 2020 2019 2018 Total revenue 428,920 778,143 872,506 Operating income (1) 51,029 159,211 173,393 Income from discontinued operations before provision for income taxes 43,407 156,760 170,180 Provision for income taxes 6,726 42,352 45,237 Income from discontinued operations, net of tax 36,681 114,408 124,943 Less: Net (loss) income attributable to non-controlling interests from discontinued operations (4,760) 4,539 6,913 Income from discontinued operations attributable to IGT PLC 41,441 109,869 118,030 (1) Includes depreciation and amortization of $94.7 million, $99.7 million, and $98.0 million for the years ended 2020, 2019, and 2018, respectively The following represents the major classes of assets and liabilities held for sale as part of our discontinued operations: December 31, ($ thousands) 2020 2019 Assets: Trade and other receivables, net 62,110 130,864 Other current assets 58,072 77,515 Systems, equipment and other assets related to contracts, net 86,230 102,347 Goodwill 520,259 520,259 Intangible assets, net 54,711 86,388 Other non-current assets 52,042 54,561 Assets held for sale 833,424 971,934 Liabilities: Accounts payable 62,693 61,889 Other current liabilities 164,084 123,263 Other non-current liabilities 22,796 29,836 Liabilities held for sale 249,573 214,988 The Company allocated $520.3 million of goodwill to discontinued operations using a relative fair value approach. Prior to the allocation to discontinued operations, the goodwill was included within our Global Gaming segment. In addition to the sale of certain entities in our Global Gaming segment classified as discontinued operations as described above, we have other disposal groups that meet the requirements to be classified as held for sale in our consolidated balance sheet at December 31, 2020. The following represents total assets and liabilities held for sale classified between the current and non-current categories: December 31, ($ thousands) 2020 2019 Assets: Current assets held for sale - discontinued operations 833,424 208,379 Current assets held for sale - other 5,416 — Total current assets held for sale 838,840 208,379 Total non-current assets held for sale — 763,555 Assets held for sale 838,840 971,934 Liabilities: Total current liabilities held for sale 249,573 185,152 Total non-current liabilities held for sale — 29,836 Liabilities held for sale 249,573 214,988 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables summarize revenue disaggregated by business segment and the source of the revenue for the years ended December 31, 2020, 2019, and 2018: For the year ended December 31, 2020 ($ thousands) Global Lottery Global Gaming Total Operating and facilities management contracts 1,743,916 — 1,743,916 Gaming terminal services — 297,418 297,418 Systems, software, and other 298,736 299,488 598,224 Service revenue 2,042,652 596,906 2,639,558 Lottery products 121,346 — 121,346 Gaming terminals — 205,289 205,289 Gaming other — 149,263 149,263 Product sales 121,346 354,552 475,898 Total revenue 2,163,998 951,458 3,115,456 For the year ended December 31, 2019 ($ thousands) Global Lottery Global Gaming Total Operating and facilities management contracts 1,930,761 — 1,930,761 Gaming terminal services — 567,849 567,849 Systems, software, and other 252,200 350,058 602,258 Service revenue 2,182,961 917,907 3,100,868 Lottery products 109,884 — 109,884 Gaming terminals — 581,017 581,017 Gaming other — 239,988 239,988 Product sales 109,884 821,005 930,889 Total revenue 2,292,845 1,738,912 4,031,757 For the year ended December 31, 2018 ($ thousands) Global Lottery Global Gaming Total Operating and facilities management contracts 2,007,261 — 2,007,261 Gaming terminal services — 601,536 601,536 Systems, software, and other 227,540 359,593 587,133 Service revenue 2,234,801 961,129 3,195,930 Lottery products 126,889 — 126,889 Gaming terminals — 454,884 454,884 Gaming other — 203,169 203,169 Product sales 126,889 658,053 784,942 Total revenue 2,361,690 1,619,182 3,980,872 |
Contract with Customer, Asset and Liability | Information about receivables, contract assets, and contract liabilities is as follows: ($ thousands) December 31, 2020 December 31, 2019 Balance Sheet Classification Receivables, net 846,128 875,263 Trade and other receivables, net Contract assets: Current 53,491 47,499 Other current assets Non-current 75,000 76,188 Other non-current assets 128,491 123,687 Contract liabilities: Current (107,542) (66,749) Other current liabilities Non-current (62,175) (65,855) Other non-current liabilities (169,717) (132,604) |
Trade and Other Receivables, _2
Trade and Other Receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Trade and Other Receivables, Net | December 31, ($ thousands) 2020 2019 Trade and other receivables, gross 861,772 897,329 Allowance for credit losses (15,644) (22,066) Trade and other receivables, net 846,128 875,263 |
Schedule of Activity of Allowance for Credit Losses Related to Trade and Other Receivables | The following table presents the activity in the allowance for credit losses: December 31, ($ thousands) 2020 2019 2018 Balance at beginning of year (22,066) (29,407) (22,795) (Provisions) recoveries, net (6,096) 3,480 (7,768) Amounts written off as uncollectible 9,660 3,405 87 Foreign currency translation (551) 162 1,461 Other (1) 3,409 294 (392) Balance at end of year (15,644) (22,066) (29,407) (1) Includes the adoption of ASC 326 as of January 1, 2020 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | December 31, ($ thousands) 2020 2019 Raw materials 86,089 86,877 Work in progress 23,211 11,663 Finished goods 102,674 96,895 Inventories, gross 211,974 195,435 Obsolescence reserve (42,767) (33,645) Inventories, net 169,207 161,790 |
Schedule of restructuring reserve by type of cost | The following table presents the activity in the obsolescence reserve: December 31, ($ thousands) 2020 2019 2018 Balance at beginning of year (33,645) (39,885) (26,911) Provisions, net (33,554) (28,970) (14,199) Amounts written off 23,535 23,375 817 Foreign currency translation (2,041) (130) 408 Other 2,938 11,965 — Balance at end of year (42,767) (33,645) (39,885) The following table presents the activity in the restructuring liability under this plan for the year ended December 31, 2020: ($ thousands) Severance and Related Employee Costs Balance at beginning of period — Restructuring expense, net 16,310 Cash payments (9,132) Other adjustments, net 544 Balance at end of period 7,722 The following table presents the activity in the restructuring liability under this plan for the year ended December 31, 2020: ($ thousands) Severance and Related Employee Costs Other Costs Total Balance at beginning of period — — — Restructuring expense, net 5,123 3,116 8,239 Cash payments (3,630) (1,916) (5,546) Balance at end of period 1,493 1,200 2,693 The following table presents the activity in the restructuring liability under this plan for the year ended December 31, 2020: ($ thousands) Severance and Related Employee Costs Balance at beginning of period — Restructuring expense, net 17,499 Cash payments (3,506) Balance at end of period 13,993 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets [Abstract] | |
Schedule of Other Current Assets | December 31, ($ thousands) Notes 2020 2019 Customer financing receivables, net 231,873 226,979 Contract assets 4 53,491 47,499 Value-added tax receivable 46,466 51,405 Income taxes receivable 45,203 56,857 Prepaid expenses 39,439 41,366 Prepaid royalties 8,701 24,999 Other receivables 8,149 10,673 Other 46,327 53,237 479,649 513,015 |
Schedule of Other Non-Current Assets | December 31, ($ thousands) Notes 2020 2019 Upfront license fees, net: Italian Scratch & Win 845,336 873,756 Italian Lotto 516,177 568,669 New Jersey 74,449 83,209 Indiana 10,458 11,853 1,446,420 1,537,487 Customer financing receivables, net 83,638 122,124 Contract assets 4 75,000 76,188 Deferred income taxes 17 33,117 27,108 Finance lease right-of-use assets 11 32,739 35,441 Debt issuance costs 16 23,937 20,464 Prepaid royalties 13,987 25,092 Other 64,803 73,847 1,773,641 1,917,751 |
Capitalized Contract Cost | The upfront license fees are being amortized on a straight-line basis as follows: Upfront License Fee License Term Amortization Start Date Italian Scratch & Win 9 years October 2019 Italian Lotto 9 years December 2016 New Jersey 15 years, 9 months October 2013 Indiana 15 years July 2013 |
Schedule of Customer Financing Receivables, net and Activity in the Allowance for Credit Losses | Customer financing receivables are recorded at amortized cost, net of any allowance for credit losses, and are classified in the consolidated balance sheets as follows: December 31, 2020 ($ thousands) Current Assets Non-Current Assets Total Customer financing receivables, gross 274,650 90,780 365,430 Allowance for credit losses (42,777) (7,142) (49,919) Customer financing receivables, net 231,873 83,638 315,511 December 31, 2019 ($ thousands) Current Assets Non-Current Assets Total Customer financing receivables, gross 255,221 125,542 380,763 Allowance for credit losses (28,242) (3,418) (31,660) Customer financing receivables, net 226,979 122,124 349,103 The following table presents the activity in the allowance for credit losses: December 31, ($ thousands) 2020 2019 2018 Balance at beginning of year (31,660) (29,209) (19,574) Provisions, net (37,191) (2,477) (10,131) Amounts written off as uncollectible 23,525 11 317 Foreign currency translation 1,820 15 179 Other (1) (6,413) — — Balance at end of year (49,919) (31,660) (29,209) (1) Includes the adoption of ASC 326 as of January 1, 2020 |
Financing Receivable Credit Quality Indicators | The customer financing receivables at amortized cost by year of origination and the geography credit quality indicator at December 31, 2020 are as follows: Year of Origination ($ thousands) 2020 2019 2018 2017 2016 and prior Total North America 54,304 16,771 580 3,095 — 74,750 LAC 30,556 113,437 39,024 13,670 8,520 205,207 EMEA 23,620 28,021 16,010 2,343 1,637 71,631 APAC 8,493 4,024 1,174 123 28 13,842 116,973 162,253 56,788 19,231 10,185 365,430 The past due balance, which represents installments that are one day or more past their contractual due date, of customer financing receivables at amortized cost and the geography credit quality indicator at December 31, 2020 is as follows: ($ thousands) North America LAC EMEA APAC Total Past due 6,062 106,011 12,585 3,839 128,497 Short-term portion not yet due 37,728 67,634 32,488 8,303 146,153 Long-term portion not yet due 30,960 31,562 26,558 1,700 90,780 74,750 205,207 71,631 13,842 365,430 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value | Our significant financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 and 2019 are as follows: December 31, 2020 ($ thousands) Balance Sheet Location Level 1 Level 2 Level 3 Total Fair Value Assets: Derivative assets Other current and other non-current assets — 10,738 — 10,738 Equity investments Other non-current assets 6,026 — — 6,026 Liabilities: Derivative liabilities Other current and other non-current liabilities — 10,113 — 10,113 December 31, 2019 ($ thousands) Balance Sheet Location Level 1 Level 2 Level 3 Total Fair Value Assets: Derivative assets Other current and other non-current assets — 8,317 — 8,317 Equity investments Other non-current assets 7,769 — — 7,769 Liabilities: Derivative liabilities Other current and other non-current liabilities — 6,425 — 6,425 |
Schedule of Fair Value Hierarchy for Financial Assets and Liabilities not Measured at Fair Value | The carrying amounts and fair value hierarchy classification of our significant financial assets and liabilities not carried at fair value as of December 31, 2020 and 2019 are as follows: December 31, 2020 ($ thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Assets: Customer financing receivables, net 315,511 — — 312,690 312,690 Equity investments 12,375 — — 12,375 12,375 Liabilities: Jackpot liabilities 218,943 — — 210,516 210,516 Debt (1) 8,242,898 — 8,701,509 — 8,701,509 December 31, 2019 ($ thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Assets: Customer financing receivables, net 349,103 — — 349,686 349,686 Equity investments 11,482 — — 11,482 11,482 Liabilities: Jackpot liabilities 234,771 — — 230,307 230,307 Debt (1) 8,062,816 — 8,589,939 — 8,589,939 (1) Debt excludes short-term borrowings and swap adjustments |
Systems, Equipment and Other _2
Systems, Equipment and Other Assets Related to Contracts, net and Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |
Schedule of Systems & Equipment and PPE, net | Systems & Equipment and PPE, net consist of the following: Systems & Equipment, net PPE, net December 31, December 31, ($ thousands) 2020 2019 2020 2019 Land — 297 964 2,317 Buildings 2,257 748 68,847 70,473 Terminals and systems 2,614,869 2,610,417 — — Furniture and equipment 150,419 138,591 258,767 240,375 Construction in progress 76,582 49,340 14,985 15,624 2,844,127 2,799,393 343,563 328,789 Accumulated depreciation (1,776,006) (1,593,801) (211,961) (182,734) 1,068,121 1,205,592 131,602 146,055 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee | The classification of our operating and finance leases in the consolidated balance sheets is as follows: December 31, ($ thousands) Balance Sheet Classification 2020 2019 Assets: Operating ROU asset Operating lease right-of-use assets 288,196 296,751 Finance ROU asset, net (1) Other non-current assets 32,739 35,441 Total lease assets 320,935 332,192 Liabilities: Operating lease liability, current Other current liabilities 44,263 43,902 Finance lease liability, current Other current liabilities 10,944 8,680 Operating lease liability, non-current Operating lease liabilities 266,227 272,350 Finance lease liability, non-current Other non-current liabilities 30,854 36,240 Total lease liabilities 352,288 361,172 (1) Finance ROU assets are recorded net of accumulated amortization of $15.7 million and $6.8 million at December 31, 2020 and December 31, 2019, respectively |
Lease, Cost | Weighted-average lease terms and discount rates are as follows: December 31, 2020 2019 Weighted-Average Remaining Lease Term (in years) Operating leases 8.32 8.80 Finance leases 5.13 6.01 Weighted-Average Discount Rate Operating leases 7.01 % 7.74 % Finance leases 5.16 % 5.45 % Components of lease expense are as follows: For the year ended December 31, ($ thousands) 2020 2019 Operating lease costs 72,025 75,586 Finance lease costs (1) 11,451 10,341 Variable lease costs (2) 22,587 22,163 (1) Finance lease costs include amortization of ROU assets of $9.3 million an d $7.8 million for the years ended December 31, 2020 and 2019, respectively and interest on lease liabilities of $2.1 million a nd $2.5 million f or the years ended December 31, 2020 and 2019, respectively (2) Variable lease costs include immaterial amounts related to short-term leases and sublease income |
Lessee, Operating Lease, Liability, Maturity | Maturities of operating and finance lease liabilities at December 31, 2020 are as follows ($ thousands): Year Operating Leases Finance Leases Total (1) 2021 63,964 12,729 76,693 2022 55,090 9,678 64,768 2023 49,383 6,983 56,366 2024 44,515 5,309 49,824 2025 38,697 4,985 43,682 Thereafter 171,168 8,150 179,318 Total lease payments 422,817 47,834 470,651 Less: Imputed interest (112,327) (6,036) (118,363) Present value of lease liabilities 310,490 41,798 352,288 (1) The maturities above exclude leases that have not yet commenced and such leases are not material in the aggregate |
Finance Lease, Liability, Maturity | Maturities of operating and finance lease liabilities at December 31, 2020 are as follows ($ thousands): Year Operating Leases Finance Leases Total (1) 2021 63,964 12,729 76,693 2022 55,090 9,678 64,768 2023 49,383 6,983 56,366 2024 44,515 5,309 49,824 2025 38,697 4,985 43,682 Thereafter 171,168 8,150 179,318 Total lease payments 422,817 47,834 470,651 Less: Imputed interest (112,327) (6,036) (118,363) Present value of lease liabilities 310,490 41,798 352,288 (1) The maturities above exclude leases that have not yet commenced and such leases are not material in the aggregate |
Cash Flow and Non-Cash Activity, Leases | Cash flow information and non-cash activity related to leases is as follows: For the year ended December 31, ($ thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating and finance leases 67,731 74,175 Finance cash flows from finance leases 9,761 7,632 Non-cash activity: ROU assets obtained in exchange for lease obligations (net of early terminations) Operating leases 34,385 12,914 Finance leases 6,359 9,441 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring reserve by type of cost | The following table presents the activity in the obsolescence reserve: December 31, ($ thousands) 2020 2019 2018 Balance at beginning of year (33,645) (39,885) (26,911) Provisions, net (33,554) (28,970) (14,199) Amounts written off 23,535 23,375 817 Foreign currency translation (2,041) (130) 408 Other 2,938 11,965 — Balance at end of year (42,767) (33,645) (39,885) The following table presents the activity in the restructuring liability under this plan for the year ended December 31, 2020: ($ thousands) Severance and Related Employee Costs Balance at beginning of period — Restructuring expense, net 16,310 Cash payments (9,132) Other adjustments, net 544 Balance at end of period 7,722 The following table presents the activity in the restructuring liability under this plan for the year ended December 31, 2020: ($ thousands) Severance and Related Employee Costs Other Costs Total Balance at beginning of period — — — Restructuring expense, net 5,123 3,116 8,239 Cash payments (3,630) (1,916) (5,546) Balance at end of period 1,493 1,200 2,693 The following table presents the activity in the restructuring liability under this plan for the year ended December 31, 2020: ($ thousands) Severance and Related Employee Costs Balance at beginning of period — Restructuring expense, net 17,499 Cash payments (3,506) Balance at end of period 13,993 |
Restructuring and Related Costs | The following table summarizes restructuring expense for the year ended December 31, 2020 under this plan by type of cost, primarily in the Global Gaming segment: ($ thousands) For the year ended December 31, 2020 Severance and related employee costs 5,123 Other (1) 3,576 Total 8,699 (1) This expense includes approximately $460 thousand of asset impairments. The offset for these charges is Property, plant and equipment, net in the consolidated balance sheet at December 31, 2020 The following table summarizes consolidated restructuring expense by segment and type of cost: For the year ended December 31, 2020 ($ thousands) Severance and Related Employee Costs Asset Impairment Costs Other Total Global Lottery 5,399 — — 5,399 Global Gaming 29,936 460 3,216 33,612 Corporate and Other 6,068 — (34) 6,034 Total 41,403 460 3,182 45,045 For the year ended December 31, 2019 ($ thousands) Severance and Related Employee Costs Asset Impairment Costs Other Total Global Lottery 2,164 — 6 2,170 Global Gaming 3,173 15,500 (311) 18,362 Corporate and Other 1,737 — 2,586 4,323 Total 7,074 15,500 2,281 24,855 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill, net | |
Schedule of Changes in Carrying Amount of Goodwill, net | Changes in the carrying amount of goodwill consist of the following: Reporting Units Prior to July 1, 2020 Reporting Units After July 1, 2020 ($ thousands) North America Gaming and Interactive North America Lottery International Italy Global Lottery Global Gaming Discontinued Operations Total Balance at December 31, 2018 1,439,867 1,221,589 1,422,847 1,495,924 — — (520,259) 5,059,968 Impairment — — (99,000) — — — — (99,000) Disposal — — (13,201) — — — — (13,201) Foreign currency translation — — (2,677) (13,855) — — — (16,532) Balance at December 31, 2019 1,439,867 1,221,589 1,307,969 1,482,069 — — (520,259) 4,931,235 Impairment (103,000) — (193,000) — — — — (296,000) Foreign currency translation — — (2,136) (2,427) — — — (4,563) Segment realignment (1,336,867) (1,221,589) (1,112,833) (1,479,642) 2,942,221 2,208,710 — — Foreign currency translation — — — — 55,118 27,699 — 82,817 Discontinued operations — — — — — (520,259) 520,259 — Balance at December 31, 2020 — — — — 2,997,339 1,716,150 — 4,713,489 Balance at December 31, 2019 Cost 2,153,867 1,225,682 1,641,187 1,483,754 — — (520,259) 5,984,231 Accumulated impairment (714,000) (4,093) (333,218) (1,685) — — — (1,052,996) 1,439,867 1,221,589 1,307,969 1,482,069 — — (520,259) 4,931,235 Balance at December 31, 2020 Cost — — — — 2,997,339 1,716,150 — 4,713,489 — — — — 2,997,339 1,716,150 — 4,713,489 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Intangible Assets | The estimated economic lives of our definite-lived intangible assets are as follows: Category Estimated Trademarks 1 - 20 years Developed technologies 2 - 15 years Customer relationships 2 - 20 years Computer software and game library 3 - 14 years Licenses 3 - 23 years Other 4 - 17 years Intangible assets at December 31, 2020 and 2019 are summarized as follows: December 31, 2020 December 31, 2019 ($ thousands) Weighted- Average Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Amortized: Customer relationships 15.5 2,300,034 1,229,939 1,070,095 2,302,118 1,107,363 1,194,755 Computer software and game library 5.6 917,950 783,671 134,279 882,049 723,768 158,281 Trademarks 14.1 186,218 91,807 94,411 185,285 76,196 109,089 Developed technologies 5.6 225,108 212,562 12,546 219,448 203,121 16,327 Licenses 3.5 69,148 58,550 10,598 60,763 48,188 12,575 Other 8.9 37,382 26,957 10,425 34,600 21,013 13,587 3,735,840 2,403,486 1,332,354 3,684,263 2,179,649 1,504,614 Unamortized: Trademarks 245,000 — 245,000 245,000 — 245,000 Total intangible assets, excluding goodwill 3,980,840 2,403,486 1,577,354 3,929,263 2,179,649 1,749,614 |
Schedule of Intangible Assets, not Subject to Amortization | Intangible assets at December 31, 2020 and 2019 are summarized as follows: December 31, 2020 December 31, 2019 ($ thousands) Weighted- Average Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Amortized: Customer relationships 15.5 2,300,034 1,229,939 1,070,095 2,302,118 1,107,363 1,194,755 Computer software and game library 5.6 917,950 783,671 134,279 882,049 723,768 158,281 Trademarks 14.1 186,218 91,807 94,411 185,285 76,196 109,089 Developed technologies 5.6 225,108 212,562 12,546 219,448 203,121 16,327 Licenses 3.5 69,148 58,550 10,598 60,763 48,188 12,575 Other 8.9 37,382 26,957 10,425 34,600 21,013 13,587 3,735,840 2,403,486 1,332,354 3,684,263 2,179,649 1,504,614 Unamortized: Trademarks 245,000 — 245,000 245,000 — 245,000 Total intangible assets, excluding goodwill 3,980,840 2,403,486 1,577,354 3,929,263 2,179,649 1,749,614 |
Schedule of Expected Amortization Expense on Intangible Assets | Amortization expense on intangible assets for the next five years is expected to be as follows ($ thousands): Year Amount 2021 187,867 2022 178,594 2023 155,379 2024 140,009 2025 118,637 Total 780,486 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | December 31, ($ thousands) Notes 2020 2019 Accrued interest payable 138,184 141,485 Current financial liabilities 128,330 62,806 Accrued expenses 118,037 99,700 Contract liabilities 4 107,542 66,749 Taxes other than income taxes 96,346 67,309 Employee compensation 89,832 155,962 Jackpot liabilities 18 71,290 74,670 Operating lease liabilities 11 44,263 43,902 Income taxes payable 26,116 17,198 Other 26,333 29,037 846,273 758,818 |
Schedule of Other Non-Current Liabilities | December 31, ($ thousands) Notes 2020 2019 Jackpot liabilities 18 147,654 160,101 Contract liabilities 4 62,175 65,855 Reserves for uncertain tax positions 47,625 47,523 Finance lease liabilities 11 30,854 36,240 Income taxes payable 15,594 26,493 Royalties payable 14,091 18,918 Other 41,968 40,736 359,961 395,866 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Reconciliation of Principal Balances of Debt Obligations to the Balance Sheet | The Company’s long-term debt obligations consist of the following: December 31, 2020 ($ thousands) Principal Debt issuance Premium Swap Total 6.250% Senior Secured U.S. Dollar Notes due February 2022 1,000,001 (3,039) — 6,860 1,003,822 4.750% Senior Secured Euro Notes due February 2023 1,043,035 (4,983) — — 1,038,052 5.350% Senior Secured U.S. Dollar Notes due October 2023 60,567 — 224 — 60,791 3.500% Senior Secured Euro Notes due July 2024 613,550 (3,808) — — 609,742 6.500% Senior Secured U.S. Dollar Notes due February 2025 1,100,000 (8,359) — — 1,091,641 3.500% Senior Secured Euro Notes due June 2026 920,325 (6,995) — — 913,330 6.250% Senior Secured U.S. Dollar Notes due January 2027 750,000 (5,845) — — 744,155 2.375% Senior Secured Euro Notes due April 2028 613,550 (5,150) — — 608,400 5.250% Senior Secured U.S. Dollar Notes due January 2029 750,000 (6,875) — — 743,125 Senior Secured Notes 6,851,028 (45,054) 224 6,860 6,813,058 Euro Term Loan Facility due January 2023 1,055,306 (11,278) — — 1,044,028 Euro Revolving Credit Facility B due July 2024 (1) — — — — — U.S. Dollar Revolving Credit Facility A due July 2024 (1) — — — — — Long-term debt, less current portion 7,906,334 (56,332) 224 6,860 7,857,086 Euro Term Loan Facility due January 2023 392,672 — — — 392,672 Current portion of long-term debt 392,672 — — — 392,672 Short-term borrowings 480 — — — 480 Total debt 8,299,486 (56,332) 224 6,860 8,250,238 (1) As of December 31, 2020, $23.9 million of debt issuance costs, net are presented in other non-current assets for debt instruments with no outstanding borrowings December 31, 2019 ($ thousands) Principal Debt issuance Premium Swap Total 6.250% Senior Secured U.S. Dollar Notes due February 2022 1,500,000 (8,199) — (473) 1,491,328 4.750% Senior Secured Euro Notes due February 2023 954,890 (6,508) — — 948,382 5.350% Senior Secured U.S. Dollar Notes due October 2023 60,567 — 318 — 60,885 3.500% Senior Secured Euro Notes due July 2024 561,700 (4,369) — — 557,331 6.500% Senior Secured U.S. Dollar Notes due February 2025 1,100,000 (10,041) — — 1,089,959 3.500% Senior Secured Euro Notes due June 2026 842,550 (7,445) — — 835,105 6.250% Senior Secured U.S. Dollar Notes due January 2027 750,000 (6,613) — — 743,387 2.375% Senior Secured Euro Notes due April 2028 561,700 (5,297) — — 556,403 Senior Secured Notes 6,331,407 (48,472) 318 (473) 6,282,780 Euro Term Loan Facility due January 2023 1,325,612 (8,223) — — 1,317,389 Euro Revolving Credit Facility B due July 2024 (1) — — — — — U.S. Dollar Revolving Credit Facility A due July 2024 (1) — — — — — Long-term debt, less current portion 7,657,019 (56,695) 318 (473) 7,600,169 4.750% Senior Secured Euro Notes due March 2020 435,767 (978) — — 434,789 5.500% Senior Secured U.S. Dollar Notes due June 2020 27,311 — 74 (19) 27,366 Current portion of long-term debt 463,078 (978) 74 (19) 462,155 Short-term borrowings 3,193 — — — 3,193 Total debt 8,123,290 (57,673) 392 (492) 8,065,517 (1) As of December 31, 2019, $20.5 million of debt issuance costs, net are presented in other non-current assets for debt instruments with no outstanding borrowings |
Summary of Payments Due Under Significant Contractual Commitments | The principal amount of long-term debt maturing over the next five years and thereafter as of December 31, 2020 is as follows ($ thousands): Year U.S. Dollar Denominated Euro Denominated Total 2021 — 392,672 392,672 2022 1,000,001 392,672 1,392,673 2023 60,567 1,705,669 1,766,236 2024 — 613,550 613,550 2025 1,100,000 — 1,100,000 2026 and thereafter 1,500,000 1,533,875 3,033,875 Total principal payments 3,660,568 4,638,438 8,299,006 Due Date Amount January 25, 2020 320,000 January 25, 2021 320,000 January 25, 2022 320,000 January 25, 2023 540,000 |
Schedule of Senior Secured Notes | The key terms of our senior secured notes (the “Notes”), which are rated Ba3 and BB by Moody’s Investor Service (“Moody’s”) and Standard & Poor’s Ratings Services (“S&P”), respectively, are as follows: Description Principal Effective Issuer Guarantors Collateral Redemption Interest payments 6.250% Senior Secured U.S. Dollar Notes due February 2022 $1,000,001 6.52% Parent * † ++ Semi-annually in arrears 4.750% Senior Secured Euro Notes due February 2023 €850,000 4.98% Parent * † ++ Semi-annually in arrears 5.350% Senior Secured U.S. Dollar Notes due October 2023 $60,567 5.47% IGT ** †† + Semi-annually in arrears 3.500% Senior Secured Euro Notes due July 2024 €500,000 3.68% Parent * † ++ Semi-annually in arrears 6.500% Senior Secured U.S. Dollar Notes due February 2025 $1,100,000 6.71% Parent * † ++ Semi-annually in arrears 3.500% Senior Secured Euro Notes due June 2026 €750,000 3.65% Parent * † +++ Semi-annually in arrears 6.250% Senior Secured U.S. Dollar Notes due January 2027 $750,000 6.41% Parent * † ++ Semi-annually in arrears 2.375% Senior Secured Euro Notes due April 2028 €500,000 2.50% Parent * † +++ Semi-annually in arrears 5.250% Senior Secured U.S. Dollar Notes due January 2029 $750,000 5.39% Parent * † +++ Semi-annually in arrears * Certain subsidiaries of the Parent. ** The Parent and certain subsidiaries of the Parent. † Ownership interests of the Parent in certain of its direct subsidiaries and certain intercompany loans with principal balances in excess of $10 million. †† Certain intercompany loans with principal balances in excess of $10 million. + International Game Technology (“IGT”) may redeem in whole or in part at any time prior to maturity at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. IGT may also redeem in whole or in part at 100% of their principal amount together with accrued and unpaid interest in connection with certain gaming regulatory events. Upon the occurrence of certain events, IGT will be required to offer to repurchase all of the notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. ++ The Parent may redeem in whole or in part at any time prior to the date which is six months prior to maturity at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. After such date, the Parent may redeem in whole or in part at 100% of their principal amount together with accrued and unpaid interest. The Parent may also redeem in whole but not in part at 100% of their principal amount together with accrued and unpaid interest in connection with certain tax events. Upon the occurrence of certain events, the Parent will be required to offer to repurchase all of the notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. +++ The Parent may redeem in whole or in part at any time prior to the first date set forth in the redemption price schedule at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. After such date, the Parent may redeem in whole or in part at a redemption price set forth in the redemption price schedule in the indenture, together with accrued and unpaid interest. The Parent may also redeem in whole but not in part at 100% of their principal amount together with accrued and unpaid interest in connection with certain tax events. Upon the occurrence of certain events, the Parent will be required to offer to repurchase all of the notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. |
Schedule of Revolving Credit Facilities | The Parent and certain of its subsidiaries are party to a senior facilities agreement (the “RCF Agreement”) which provides for the following multi-currency revolving credit facilities (the “Revolving Credit Facilities”): Maximum Amount Facility Borrowers $1,050,000 Revolving Credit Facility A Parent, IGT, and IGT Global Solutions Corporation €625,000 Revolving Credit Facility B Parent and Lottomatica Holding S.r.l. |
Summary of Letters of Credit Outstanding and Weighted Average Annual Cost of Letters of Credit | The following table summarizes the letters of credit outstanding at December 31, 2020 and 2019 and the weighted-average annual cost of such letters of credit: Letters of Credit Outstanding ($ thousands) Not under the Under the Total Weighted- December 31, 2020 426,740 — 426,740 1.06 % December 31, 2019 402,300 — 402,300 1.02 % |
Schedule of Interest Expense | For the year ended December 31, ($ thousands) 2020 2019 2018 Senior Secured Notes (344,286) (351,077) (352,293) Term Loan Facilities (36,665) (36,138) (39,462) Revolving Credit Facilities (31,301) (28,160) (27,805) Other (620) (7,918) (12,052) Interest expense (412,872) (423,293) (431,612) Interest income 14,956 12,418 14,229 Interest expense, net (397,916) (410,875) (417,383) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) before the Provision for Income Taxes by Jurisdiction | The components of (loss) income from continuing operations before provision for income taxes, determined by tax jurisdiction, are as follows: For the year ended December 31, ($ thousands) 2020 2019 2018 United Kingdom (354,563) 35,401 195,629 United States (776,396) (301,307) (363,507) Italy 228,744 350,731 365,463 Other 54,508 43,182 (63,717) (847,707) 128,007 133,868 |
Provision (Benefit) for Income Taxes | The provision for income taxes consists of: For the year ended December 31, ($ thousands) 2020 2019 2018 Current: United Kingdom (819) 1,803 3,579 United States 10,045 46,288 (12,028) Italy 66,073 104,368 141,496 Other 30,866 49,329 45,942 106,165 201,788 178,989 Deferred: United Kingdom (190) (78) (282) United States (61,791) (68,789) (20,900) Italy (876) 914 (3,517) Other (15,610) (3,078) (10,126) (78,467) (71,031) (34,825) 27,698 130,757 144,164 |
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 U.K. statutory main corporation tax rates enacted in each of the Parent’s calendar year reporting periods to (loss) income from continuing operations before provision for income taxes is as follows: For the year ended December 31, ($ thousands) 2020 2019 2018 (Loss) income from continuing operations before provision for income taxes (847,707) 128,007 133,868 United Kingdom statutory tax rate 19.00 % 19.00 % 19.00 % Statutory tax expense (benefit) (161,064) 24,321 25,435 Change in valuation allowances 127,955 507 (13,723) Non-deductible goodwill impairment 56,240 18,810 22,420 Base erosion and anti-abuse (“BEAT”) tax 12,926 31,340 13,769 Foreign tax expense, net of U.S. federal benefit 9,754 13,585 14,930 IRAP and state taxes 9,275 22,946 30,351 GILTI tax 2,517 4,575 11,079 Change in unrecognized tax benefits 1,295 6,637 9,166 Italian allowance for corporate equity (3,841) (2,380) (3,328) Foreign tax and statutory rate differential (1) (13,988) 2,974 48,040 Tax Law Changes (19,627) — — Tax impact of Tax Act — — (10,852) Italian tax settlement — — 16,664 Non-taxable foreign exchange gain — (3,744) (12,384) Non-taxable gains on investments — (6,225) — Other 6,256 17,411 (7,403) 27,698 130,757 144,164 Effective tax rate (3.3) % 102.1 % 107.7 % (1) Includes the effects of foreign subsidiaries’ earnings taxed at rates other than the U.K. statutory rate |
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) 2020 2019 Deferred tax assets: Net operating losses 299,885 175,342 Section 163(j) interest limitation 154,925 93,522 Provisions not currently deductible for tax purposes 88,084 127,132 Lease liabilities 70,384 79,328 Jackpot timing differences 38,724 40,550 Depreciation and amortization 26,325 30,296 Inventory reserves 2,438 3,437 Other 47,377 44,459 Gross deferred tax assets 728,142 594,066 Valuation allowance (284,088) (156,133) Deferred tax assets, net of valuation allowance 444,054 437,933 Deferred tax liabilities: Acquired intangible assets 506,238 533,732 Depreciation and amortization 160,898 174,970 Lease right-of-use assets 65,015 74,201 Other 11,796 20,962 Total deferred tax liabilities 743,947 803,865 Net deferred income tax liability (299,893) (365,932) Our net deferred income taxes are recorded in the consolidated balance sheets as follows: December 31, ($ thousands) 2020 2019 Deferred income taxes - non-current asset 33,117 27,108 Deferred income taxes - non-current liability (333,010) (393,040) (299,893) (365,932) |
Reconciliation of the Beginning and Ending Amount of Valuation Allowance | A reconciliation of the valuation allowance is as follows: December 31, ($ thousands) 2020 2019 2018 Balance at beginning of year 156,133 170,831 184,554 Expiration of tax attributes — (15,205) — Net charges to (income) expense 127,955 507 (13,723) Balance at end of year 284,088 156,133 170,831 |
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the unrecognized tax benefits is as follows: December 31, ($ thousands) 2020 2019 2018 Balance at beginning of year 29,175 26,635 20,975 Additions to tax positions - current year 498 717 11,947 Additions to tax positions - prior years 335 2,358 16,973 Reductions to tax positions - prior years (2,259) — (4,610) Settlements — — (17,238) Lapses in statutes of limitations (525) (535) (1,412) Balance at end of year 27,224 29,175 26,635 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Jackpot Liabilities Recorded as Current and Non-current Liabilities | Jackpot liabilities are recorded as current and non-current liabilities as follows: ($ thousands) December 31, 2020 Current liabilities 71,290 Non-current liabilities 147,654 218,944 |
Schedule of Future Jackpot Payments | Future jackpot liabilities are due as follows: ($ thousands) Previous Winners Future Winners Total 2021 35,967 35,176 71,143 2022 22,705 8,250 30,955 2023 20,440 651 21,091 2024 17,863 651 18,514 2025 15,028 651 15,679 Thereafter 84,552 9,761 94,313 Future jackpot payments due 196,555 55,140 251,695 Unamortized discounts (32,751) Total jackpot liabilities 218,944 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Shares of Common Stock Outstanding | Ordinary shares outstanding were as follows: December 31, 2020 2019 2018 Balance at beginning of year 204,435,333 204,210,731 203,446,572 Shares issued under restricted stock plans 421,231 224,602 619,614 Shares issued upon exercise of stock options — — 144,545 Balance at end of year 204,856,564 204,435,333 204,210,731 |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following table details the changes in AOCI: Unrealized Gain (Loss) on: AOCI ($ thousands) Foreign Hedges Other Total Attributable Attributable to IGT PLC Balance at December 31, 2017 338,146 (5,227) 6,001 338,920 1,249 340,169 Change during period (90,309) (163) (4,979) (95,451) 18,691 (76,760) Reclassified to operations (1) (4,254) 536 — (3,718) — (3,718) Tax effect 3,779 (1,904) (29) 1,846 — 1,846 Other comprehensive (loss) income (90,784) (1,531) (5,008) (97,323) 18,691 (78,632) Balance at December 31, 2018 247,362 (6,758) 993 241,597 19,940 261,537 Change during period (18,172) 237 2,877 (15,058) 15,906 848 Reclassified to operations (1) 1,623 (2,183) — (560) — (560) Tax effect 22 495 183 700 — 700 Other comprehensive (loss) income (16,527) (1,451) 3,060 (14,918) 15,906 988 Balance at December 31, 2019 230,835 (8,209) 4,053 226,679 35,846 262,525 Change during period 128,275 (674) (269) 127,332 (59,455) 67,877 Reclassified to operations (1) (507) (47) — (554) — (554) Tax effect (217) 184 — (33) — (33) Other comprehensive income (loss) 127,551 (537) (269) 126,745 (59,455) 67,290 Balance at December 31, 2020 358,386 (8,746) 3,784 353,424 (23,609) 329,815 (1) Foreign currency translation adjustments related to liquidated subsidiaries were reclassified into foreign exchange (loss) gain, net on the consolidated statements of operations for the years ended December 31, 2020 and 2019. Unrealized gain (loss) on hedges were reclassified into service revenue in the consolidated statements of operations for the years ended December 31, 2020, 2019, and 2018, respectively |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of VIE's Assets an Liabilities | We hold ownership interests in the following variable interest entities (“VIEs”): Name of subsidiary % Ownership held Lottoitalia S.r.l. (“Lottoitalia”) 61.50 % Lotterie Nazionali S.r.l. (“LN”) 64.00 % Northstar New Jersey Lottery Group, LLC (“Northstar NJ”) (1) 82.31 % (1) Northstar New Jersey Holding Company LLC, of which we are a 50.15% shareholder, holds the 82.31% ownership in Northstar NJ The carrying amounts and classification of these VIEs’ assets and liabilities in our consolidated balance sheets at December 31, 2020 and 2019 are as follows: December 31, ($ thousands) 2020 2019 Current assets 1,087,002 842,893 Non-current assets 1,556,072 1,652,641 Total assets 2,643,074 2,495,534 Total liabilities 707,530 498,681 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Segment information is as follows: For the year ended December 31, 2020 ($ thousands) Global Lottery Global Gaming Business Segment Total Corporate and Other Total IGT PLC Service revenue 2,042,652 596,906 2,639,558 — 2,639,558 Product sales 121,346 354,552 475,898 — 475,898 Total revenue 2,163,998 951,458 3,115,456 — 3,115,456 Operating income (loss) 641,930 (205,657) 436,273 (543,738) (107,465) Depreciation and amortization 235,767 155,758 391,525 174,669 566,194 Expenditures for long-lived assets (148,679) (74,877) (223,556) (2,190) (225,746) For the year ended December 31, 2019 ($ thousands) Global Lottery Global Gaming Business Segment Total Corporate and Other Total IGT PLC Service revenue 2,182,961 917,907 3,100,868 — 3,100,868 Product sales 109,884 821,005 930,889 — 930,889 Total revenue 2,292,845 1,738,912 4,031,757 — 4,031,757 Operating income (loss) 697,267 179,548 876,815 (398,899) 477,916 Depreciation and amortization 228,972 187,061 416,033 197,910 613,943 Expenditures for long-lived assets (167,349) (166,932) (334,281) (8,216) (342,497) For the year ended December 31, 2018 ($ thousands) Global Lottery Global Gaming Business Segment Total Corporate and Other Total IGT PLC Service revenue 2,234,801 961,129 3,195,930 — 3,195,930 Product sales 126,889 658,053 784,942 — 784,942 Total revenue 2,361,690 1,619,182 3,980,872 — 3,980,872 Operating income (loss) 763,799 143,340 907,139 (433,542) 473,597 Depreciation and amortization 223,126 171,378 394,504 212,989 607,493 Expenditures for long-lived assets (202,412) (229,182) (431,594) (9,450) (441,044) |
Schedule of Revenue from External Customers Based on Geographical Location | Revenue from external customers, which is based on the geographical location of our customers, is as follows: December 31, ($ thousands) 2020 2019 2018 United States 1,666,241 2,115,791 2,063,477 Italy 895,942 989,796 973,621 United Kingdom 63,874 73,541 58,681 Rest of Europe 209,080 322,654 313,779 All other 280,319 529,975 571,314 Total 3,115,456 4,031,757 3,980,872 |
Schedule of Long-Lived Assets Based on Geographical Location | Long-lived assets, which are comprised of Systems & Equipment and PPE, are based on the geographical location of the assets as follows: December 31, ($ thousands) 2020 2019 United States 841,439 928,857 Italy 176,341 187,169 United Kingdom 13,871 17,687 Rest of Europe 90,646 102,874 All other 77,426 115,060 Total 1,199,723 1,351,647 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity and Related Information | A summary of our stock option activity and related information is as follows: Weighted-Average Stock Exercise Price Per Share ($) Remaining Contractual Term (in years) Aggregate Intrinsic Value ($ thousands) Outstanding at January 1, 2020 1,140,566 20.73 Granted — — Exercised — — Expired (718,066) 20.29 Outstanding at December 31, 2020 422,500 21.49 2.19 At December 31, 2020: Vested and expected to vest 250,000 15.53 1.37 352 Exercisable 250,000 15.53 1.37 352 |
Schedule of Key Inputs and Assumptions in Stock Option Valuation Models | The weighted-average grant date fair value of stock options granted during 2018 was $6.84 per share. 2018 Valuation model Monte Carlo Exercise price ($) 30.12 Expected option term (in years) 2.83 Expected volatility of the Company’s stock (%) 35.00 Risk-free interest rate (%) 2.73 Dividend yield (%) 2.66 |
Summary of Stock Award Activity and Related Information | A summary of our stock award activity and related information is as follows: PSUs Weighted- Average Grant Date Fair Value ($) RSUs Weighted- Average Grant Date Fair Value ($) Nonvested at January 1, 2020 5,060,951 19.41 130,009 14.07 Granted — — 2,375,141 9.04 Vested (474,399) 24.07 (136,161) 13.64 Forfeited (1,229,586) 20.16 (2,606) 9.08 Nonvested at December 31, 2020 3,356,966 18.40 2,366,383 9.05 At December 31, 2020: Unrecognized cost for nonvested awards ($ thousands) 1,052 17,827 Weighted-average future recognition period (in years) 0.27 1.93 |
Schedule of Fair Value of Stock Awards Granted Including Weighted Average Grant Date Fair Value | Details of the grants are as follows: 2020 2019 2018 PSUs granted during the year — 2,133,512 1,564,083 Weighted-average grant date fair value ($) — 11.10 28.93 RSUs granted during the year 2,375,141 131,676 68,142 Weighted-average grant date fair value ($) 9.04 14.10 30.23 |
Schedule of Stock-Based Compensation Expense | Total compensation cost (recovery) for our stock-based compensation plans is recorded based on the employees’ respective functions as detailed below. For the year ended December 31, ($ thousands) 2020 2019 2018 Cost of services (1,137) 2,131 1,923 Cost of product sales (282) 430 445 Selling, general and administrative (4,162) 21,409 27,702 Research and development (1,296) 2,544 3,016 Stock-based compensation expense before income taxes (6,877) 26,514 33,086 Income tax (provision) benefit (1,856) 6,119 7,562 Total stock-based compensation, net of tax (5,021) 20,395 25,524 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share of Common Stock | The following table presents the computation of basic and diluted loss per share of common stock: For the year ended December 31, ($ and shares in thousands, except per share amounts) 2020 2019 2018 Numerator: Net loss from continuing operations attributable to IGT PLC (939,331) (128,894) (139,380) Net income from discontinued operations attributable to IGT PLC 41,441 109,869 118,030 Net loss attributable to IGT PLC (897,890) (19,025) (21,350) Denominator: Weighted-average shares - basic and diluted 204,725 204,373 204,083 Net loss from continuing operations attributable to IGT PLC per common share - basic and diluted (4.59) (0.63) (0.68) Net income from discontinued operations attributable to IGT PLC per common share - basic and diluted 0.20 0.54 0.58 Net loss attributable to IGT PLC per common share - basic and diluted (4.39) (0.09) (0.10) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Transactions with Related Parties | Related party transactions with the De Agostini Group are as follows: December 31, ($ thousands) 2020 2019 Trade receivables — 2 Tax-related receivables — 2,031 Trade payables 5,096 3,180 Tax-related payables 18,706 17,004 |
Description of Business (Detail
Description of Business (Details) | Dec. 31, 2020country |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries in which the company opeartes | 100 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020segments | Jun. 30, 2020reporting_unit | Dec. 31, 2020USD ($)fixed_asset_typereporting_unit | Dec. 31, 2019USD ($)reporting_unit | Dec. 31, 2018USD ($) | Dec. 07, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Percentage of share capital sold to Gamenet Group S.p.A | 100.00% | |||||
Advertising expense | $ | $ 25 | $ 34.2 | $ 51.9 | |||
Number of principle types of fixed assets | fixed_asset_type | 2 | |||||
Number of business segments | segments | 2 | |||||
Number of reporting units | reporting_unit | 4 | 2 | 4 | |||
Period of annual installments for jackpot liabilities, low end of range | 20 years | |||||
Period of annual installments for jackpot liabilities, high end of range | 26 years | |||||
Historical lump sum payout election rate (as a percent) | 85.00% | |||||
Systems & Equipment, net | Lottery hard costs | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Useful life | 10 years | |||||
PPE, net | Buildings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Useful life | 40 years | |||||
Minimum | Systems & Equipment, net | Furniture and equipment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Useful life | 5 years | |||||
Minimum | PPE, net | Commercial gaming machines | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Useful life | 3 years | |||||
Maximum | Systems & Equipment, net | Furniture and equipment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Useful life | 10 years | |||||
Maximum | PPE, net | Commercial gaming machines | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Useful life | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Economic Lives for Finite-Lived Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life (in years) | 1 year |
Minimum | Developed technologies | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life (in years) | 2 years |
Minimum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life (in years) | 2 years |
Minimum | Computer software and game library | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life (in years) | 3 years |
Minimum | Licenses | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life (in years) | 3 years |
Minimum | Other | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life (in years) | 4 years |
Maximum | Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life (in years) | 20 years |
Maximum | Developed technologies | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life (in years) | 15 years |
Maximum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life (in years) | 20 years |
Maximum | Computer software and game library | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life (in years) | 14 years |
Maximum | Licenses | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life (in years) | 23 years |
Maximum | Other | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life (in years) | 17 years |
Discontinued Operations and A_3
Discontinued Operations and Assets Held for Sale - Narrative (Details) - EUR (€) € in Millions | Sep. 30, 2022 | Dec. 07, 2020 | Dec. 31, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Percentage of share capital sold to Gamenet Group S.p.A | 100.00% | ||
Discontinued Operations, Held-for-sale | Lottomatica Videolot Rete S.p.A. And Lottomatica Scommesse S.r.l. | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Percentage of share capital sold to Gamenet Group S.p.A | 100.00% | ||
Sale price | € 950 | ||
Cash consideration | € 725 | ||
Period of continuing involvement | 3 years | ||
Forecast | Discontinued Operations, Held-for-sale | Lottomatica Videolot Rete S.p.A. And Lottomatica Scommesse S.r.l. | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash consideration | € 125 | € 100 |
Discontinued Operations and A_4
Discontinued Operations and Assets Held for Sale - Financial results of discontinued operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income from discontinued operations, net of tax | $ 36,681 | $ 114,408 | $ 124,943 |
Less: Net (loss) income attributable to non-controlling interests from discontinued operations | (4,760) | 4,539 | 6,913 |
Income from discontinued operations attributable to IGT PLC | 41,441 | 109,869 | 118,030 |
Lottomatica Videolot Rete S.p.A. And Lottomatica Scommesse S.r.l. | Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total revenue | 428,920 | 778,143 | 872,506 |
Operating income | 51,029 | 159,211 | 173,393 |
Income from discontinued operations before provision for income taxes | 43,407 | 156,760 | 170,180 |
Provision for income taxes | 6,726 | 42,352 | 45,237 |
Income from discontinued operations, net of tax | 36,681 | 114,408 | 124,943 |
Less: Net (loss) income attributable to non-controlling interests from discontinued operations | (4,760) | 4,539 | 6,913 |
Income from discontinued operations attributable to IGT PLC | 41,441 | 109,869 | 118,030 |
Depreciation and amortization | $ 94,700 | $ 99,700 | $ 98,000 |
Discontinued Operations and A_5
Discontinued Operations and Assets Held for Sale - Liabilities and Assets Held for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Assets held for sale | $ 838,840 | $ 971,934 |
Liabilities: | ||
Liabilities held for sale | 249,573 | 214,988 |
Discontinued Operations, Held-for-sale | Lottomatica Videolot Rete S.p.A. And Lottomatica Scommesse S.r.l. | ||
Assets: | ||
Trade and other receivables, net | 62,110 | 130,864 |
Other current assets | 58,072 | 77,515 |
Systems, equipment and other assets related to contracts, net | 86,230 | 102,347 |
Goodwill | 520,259 | 520,259 |
Intangible assets, net | 54,711 | 86,388 |
Other non-current assets | 52,042 | 54,561 |
Assets held for sale | 833,424 | 971,934 |
Liabilities: | ||
Accounts payable | 62,693 | 61,889 |
Other current liabilities | 164,084 | 123,263 |
Other non-current liabilities | 22,796 | 29,836 |
Liabilities held for sale | $ 249,573 | $ 214,988 |
Discontinued Operations and A_6
Discontinued Operations and Assets Held for Sale - Other Disposal Groups (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Total current assets held for sale | $ 838,840 | $ 208,379 |
Total non-current assets held for sale | 0 | 763,555 |
Assets held for sale | 838,840 | 971,934 |
Liabilities: | ||
Total current liabilities held for sale | 249,573 | 185,152 |
Total non-current liabilities held for sale | 0 | 29,836 |
Liabilities held for sale | 249,573 | 214,988 |
Discontinued Operations, Held-for-sale | ||
Assets: | ||
Total current assets held for sale | 833,424 | 208,379 |
Disposal Group, Held-for-sale | ||
Assets: | ||
Total current assets held for sale | $ 5,416 | $ 0 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 3,115,456 | $ 4,031,757 | $ 3,980,872 |
Service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,639,558 | 3,100,868 | 3,195,930 |
Operating and facilities management contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,743,916 | 1,930,761 | 2,007,261 |
Gaming terminal services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 297,418 | 567,849 | 601,536 |
Systems, software, and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 598,224 | 602,258 | 587,133 |
Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 475,898 | 930,889 | 784,942 |
Lottery products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 121,346 | 109,884 | 126,889 |
Gaming terminals | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 205,289 | 581,017 | 454,884 |
Gaming other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 149,263 | 239,988 | 203,169 |
Global Lottery | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,163,998 | 2,292,845 | 2,361,690 |
Global Lottery | Service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,042,652 | 2,182,961 | 2,234,801 |
Global Lottery | Operating and facilities management contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,743,916 | 1,930,761 | 2,007,261 |
Global Lottery | Gaming terminal services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Lottery | Systems, software, and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 298,736 | 252,200 | 227,540 |
Global Lottery | Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 121,346 | 109,884 | 126,889 |
Global Lottery | Lottery products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 121,346 | 109,884 | 126,889 |
Global Lottery | Gaming terminals | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Lottery | Gaming other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Gaming | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 951,458 | 1,738,912 | 1,619,182 |
Global Gaming | Service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 596,906 | 917,907 | 961,129 |
Global Gaming | Operating and facilities management contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Gaming | Gaming terminal services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 297,418 | 567,849 | 601,536 |
Global Gaming | Systems, software, and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 299,488 | 350,058 | 359,593 |
Global Gaming | Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 354,552 | 821,005 | 658,053 |
Global Gaming | Lottery products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Gaming | Gaming terminals | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 205,289 | 581,017 | 454,884 |
Global Gaming | Gaming other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 149,263 | $ 239,988 | $ 203,169 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disaggregation of Revenue [Line Items] | ||
Receivables, net | $ 846,128 | $ 875,263 |
Contract assets: | ||
Current | 53,491 | 47,499 |
Non-current | 75,000 | 76,188 |
Contract with customer, asset, net | 128,491 | 123,687 |
Contract liabilities: | ||
Current | (107,542) | (66,749) |
Non-current | (62,175) | (65,855) |
Contract with customer, liability | (169,717) | (132,604) |
Other current assets | ||
Contract assets: | ||
Current | 53,491 | 47,499 |
Other non-current assets | ||
Contract assets: | ||
Non-current | 75,000 | 76,188 |
Other current liabilities | ||
Contract liabilities: | ||
Current | (107,542) | (66,749) |
Other non-current liabilities | ||
Contract liabilities: | ||
Non-current | $ (62,175) | $ (65,855) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with customer, liability, revenue recognized | $ 56 | $ 50.7 |
Revenue, remaining performance obligation | $ 956.8 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue from Contract with Customer [Abstract] | ||
Expected timing of satisfaction, period | 12 months | |
Disaggregation of Revenue [Line Items] | ||
Revenue remaining performance obligation percentage | 19.00% | |
Expected timing of satisfaction, period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue remaining performance obligation percentage | 29.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Minimum | ||
Revenue from Contract with Customer [Abstract] | ||
Expected timing of satisfaction, period | 13 months | |
Disaggregation of Revenue [Line Items] | ||
Expected timing of satisfaction, period | 13 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Maximum | ||
Revenue from Contract with Customer [Abstract] | ||
Expected timing of satisfaction, period | 36 months | |
Disaggregation of Revenue [Line Items] | ||
Expected timing of satisfaction, period | 36 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue remaining performance obligation percentage | 26.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Minimum | ||
Revenue from Contract with Customer [Abstract] | ||
Expected timing of satisfaction, period | 37 months | |
Disaggregation of Revenue [Line Items] | ||
Expected timing of satisfaction, period | 37 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Maximum | ||
Revenue from Contract with Customer [Abstract] | ||
Expected timing of satisfaction, period | 60 months | |
Disaggregation of Revenue [Line Items] | ||
Expected timing of satisfaction, period | 60 months |
Trade and Other Receivables, _3
Trade and Other Receivables, net - Schedule of Trade and Other Receivables, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||||
Trade and other receivables, gross | $ 861,772 | $ 897,329 | ||
Allowance for credit losses | (15,644) | (22,066) | $ (29,407) | $ (22,795) |
Trade and other receivables, net | $ 846,128 | $ 875,263 |
Trade and Other Receivables, _4
Trade and Other Receivables, net - Schedule of Activity of Allowance for Credit Losses Related to Trade and Other Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Activity of allowance for credit losses related to trade and other receivables | |||
Balance at beginning of year | $ (22,066) | $ (29,407) | $ (22,795) |
(Provisions) recoveries, net | (6,096) | 3,480 | (7,768) |
Amounts written off as uncollectible | 9,660 | 3,405 | 87 |
Foreign currency translation | 551 | 162 | 1,461 |
Other | 3,409 | 294 | (392) |
Balance at end of year | $ (15,644) | $ (22,066) | $ (29,407) |
Trade and Other Receivables, _5
Trade and Other Receivables, net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | ||
Accounts Receivables, Sold During The Period | $ 1,531.6 | $ 2,629.4 |
Factoring agreements, amounts collected on behalf of others | $ 110.1 | $ 50.2 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||||
Raw materials | $ 86,089 | $ 86,877 | ||
Work in progress | 23,211 | 11,663 | ||
Finished goods | 102,674 | 96,895 | ||
Inventories, gross | 211,974 | 195,435 | ||
Obsolescence reserve | (42,767) | (33,645) | $ (39,885) | $ (26,911) |
Inventories, net | $ 169,207 | $ 161,790 |
Inventories - Restructuring Res
Inventories - Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory Valuation Reserve [Roll Forward] | |||
Balance at beginning of year | $ (33,645) | $ (39,885) | $ (26,911) |
Provisions, net | (33,554) | (28,970) | (14,199) |
Amounts written off | 23,535 | 23,375 | 817 |
Foreign currency translation | (2,041) | (130) | 408 |
Other | 2,938 | 11,965 | 0 |
Balance at end of year | $ (42,767) | $ (33,645) | $ (39,885) |
Other Assets - Other Current As
Other Assets - Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other current assets | ||
Amount of receivables sold during the period | $ 231,873 | $ 226,979 |
Contract assets | 53,491 | 47,499 |
Value-added tax receivable | 46,466 | 51,405 |
Income taxes receivable | 45,203 | 56,857 |
Prepaid expenses | 39,439 | 41,366 |
Prepaid royalties | 8,701 | 24,999 |
Other receivables | 8,149 | 10,673 |
Other | 46,327 | 53,237 |
Total other current assets | $ 479,649 | $ 513,015 |
Other Assets - Non-Current Asse
Other Assets - Non-Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other non-current assets | ||
Upfront license fees, net | $ 1,446,420 | $ 1,537,487 |
Customer financing receivables, net | 83,638 | 122,124 |
Contract assets | 75,000 | 76,188 |
Deferred income taxes | 33,117 | 27,108 |
Finance lease right-of-use assets | 32,739 | 35,441 |
Debt issuance costs | 23,937 | 20,464 |
Prepaid royalties | 13,987 | 25,092 |
Other | 64,803 | 73,847 |
Total other non-current assets | 1,773,641 | 1,917,751 |
Italian Scratch & Win | ||
Other non-current assets | ||
Upfront license fees, net | 845,336 | 873,756 |
Italian Lotto | ||
Other non-current assets | ||
Upfront license fees, net | 516,177 | 568,669 |
New Jersey | ||
Other non-current assets | ||
Upfront license fees, net | 74,449 | 83,209 |
Indiana | ||
Other non-current assets | ||
Upfront license fees, net | $ 10,458 | $ 11,853 |
Other Assets - Schedule of Capi
Other Assets - Schedule of Capitalized Contract Costs (Details) | Dec. 31, 2020 |
Italian Scratch & Win | |
Capitalized Contract Cost [Line Items] | |
Capitalized contract cost, amortization period | 9 years |
Italian Lotto | |
Capitalized Contract Cost [Line Items] | |
Capitalized contract cost, amortization period | 9 years |
New Jersey | |
Capitalized Contract Cost [Line Items] | |
Capitalized contract cost, amortization period | 15 years 9 months |
Indiana | |
Capitalized Contract Cost [Line Items] | |
Capitalized contract cost, amortization period | 15 years |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) $ in Thousands, € in Millions | 1 Months Ended | 12 Months Ended | |||
May 31, 2019USD ($) | May 31, 2019EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||
Gain on disposition of other assets | $ 29,100 | € 26.1 | $ 27 | $ 64,714 | $ 318 |
Other Assets - Customer Financi
Other Assets - Customer Financing Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Customer financing receivables, net | ||||
Customer financing receivables, gross | $ 365,430 | |||
Customer financing receivables, net, current | 231,873 | $ 226,979 | ||
Customer financing receivables, net, non-current | 83,638 | 122,124 | ||
LAC | ||||
Customer financing receivables, net | ||||
Customer financing receivables, gross | 205,207 | |||
Customer portfolio segment | ||||
Customer financing receivables, net | ||||
Customer financing receivables, gross, current | 274,650 | 255,221 | ||
Customer financing receivables, gross, non-current | 90,780 | 125,542 | ||
Customer financing receivables, gross | 365,430 | 380,763 | ||
Allowance for credit losses, current | (42,777) | (28,242) | ||
Allowance for credit losses, non-current | (7,142) | (3,418) | ||
Allowance for credit losses | (49,919) | (31,660) | $ (29,209) | $ (19,574) |
Customer financing receivables, net, current | 231,873 | 226,979 | ||
Customer financing receivables, net, non-current | 83,638 | $ 122,124 | ||
Customer portfolio segment | LAC | ||||
Customer financing receivables, net | ||||
Allowance for credit losses | $ (43,300) |
Other Assets - Activity in Allo
Other Assets - Activity in Allowance for Credit Losses (Details) - Customer portfolio segment - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Activity in allowance for credit losses related to customer financing receivables, net | |||
Balance at beginning of year | $ (31,660) | $ (29,209) | $ (19,574) |
Provisions, net | (37,191) | (2,477) | (10,131) |
Amounts written off as uncollectible | 23,525 | 11 | 317 |
Foreign currency translation | 1,820 | 15 | 179 |
Other | (6,413) | 0 | 0 |
Balance at end of year | $ (49,919) | $ (31,660) | $ (29,209) |
Other Assets - Customer Finan_2
Other Assets - Customer Financing Receivables at Amortized cost by year of Origination (Details) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, year one | $ 116,973 | ||||
Financing receivable, year two | $ 162,253 | ||||
Financing receivable, year three | $ 56,788 | ||||
Financing receivable, year four | $ 19,231 | ||||
Financing receivable, year five and prior | $ 10,185 | ||||
Financing receivable, before allowance for credit loss | 365,430 | ||||
Past due | 128,497 | ||||
Short-term portion not yet due | 146,153 | ||||
Long-term portion not yet due | 90,780 | ||||
North America | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, year one | 54,304 | ||||
Financing receivable, year two | 16,771 | ||||
Financing receivable, year three | 580 | ||||
Financing receivable, year four | 3,095 | ||||
Financing receivable, year five and prior | 0 | ||||
Financing receivable, before allowance for credit loss | 74,750 | ||||
Past due | 6,062 | ||||
Short-term portion not yet due | 37,728 | ||||
Long-term portion not yet due | 30,960 | ||||
LAC | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, year one | 30,556 | ||||
Financing receivable, year two | 113,437 | ||||
Financing receivable, year three | 39,024 | ||||
Financing receivable, year four | 13,670 | ||||
Financing receivable, year five and prior | 8,520 | ||||
Financing receivable, before allowance for credit loss | 205,207 | ||||
Past due | 106,011 | ||||
Short-term portion not yet due | 67,634 | ||||
Long-term portion not yet due | 31,562 | ||||
EMEA | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, year one | 23,620 | ||||
Financing receivable, year two | 28,021 | ||||
Financing receivable, year three | 16,010 | ||||
Financing receivable, year four | 2,343 | ||||
Financing receivable, year five and prior | 1,637 | ||||
Financing receivable, before allowance for credit loss | 71,631 | ||||
Past due | 12,585 | ||||
Short-term portion not yet due | 32,488 | ||||
Long-term portion not yet due | 26,558 | ||||
APAC | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, year one | 8,493 | ||||
Financing receivable, year two | $ 4,024 | ||||
Financing receivable, year three | $ 1,174 | ||||
Financing receivable, year four | $ 123 | ||||
Financing receivable, year five and prior | $ 28 | ||||
Financing receivable, before allowance for credit loss | 13,842 | ||||
Past due | 3,839 | ||||
Short-term portion not yet due | 8,303 | ||||
Long-term portion not yet due | $ 1,700 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value (Details) - Measured at fair value on a recurring basis - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets and liabilities carried at fair value | ||
Derivative assets | $ 10,738 | $ 8,317 |
Equity investments | 6,026 | 7,769 |
Derivative liabilities | 10,113 | 6,425 |
Level 1 | ||
Financial assets and liabilities carried at fair value | ||
Derivative assets | 0 | 0 |
Equity investments | 6,026 | 7,769 |
Derivative liabilities | 0 | 0 |
Level 2 | ||
Financial assets and liabilities carried at fair value | ||
Derivative assets | 10,738 | 8,317 |
Equity investments | 0 | 0 |
Derivative liabilities | 10,113 | 6,425 |
Level 3 | ||
Financial assets and liabilities carried at fair value | ||
Derivative assets | 0 | 0 |
Equity investments | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value Hierarchy for Financial Assets and Liabilities not Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investments | $ 12,375 | $ 11,482 |
Jackpot liabilities | 218,943 | 234,771 |
Debt | 8,242,898 | 8,062,816 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investments | 12,375 | 11,482 |
Jackpot liabilities | 210,516 | 230,307 |
Debt | 8,701,509 | 8,589,939 |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investments | 0 | 0 |
Jackpot liabilities | 0 | 0 |
Debt | 0 | 0 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investments | 0 | 0 |
Jackpot liabilities | 0 | 0 |
Debt | 8,701,509 | 8,589,939 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investments | 12,375 | 11,482 |
Jackpot liabilities | 210,516 | 230,307 |
Debt | 0 | 0 |
Customer portfolio segment | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | 315,511 | 349,103 |
Customer portfolio segment | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | 312,690 | 349,686 |
Customer portfolio segment | Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | 0 | 0 |
Customer portfolio segment | Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | 0 | 0 |
Customer portfolio segment | Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | $ 312,690 | $ 349,686 |
Derivative Financial Instrume_2
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | |||||
Aug. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 31, 2018 | Sep. 30, 2015 | |
Foreign Currency Forward Contracts | Non-designated Hedges | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 295.4 | $ 550 | ||||
Cash Flow Hedging | Foreign Currency Forward Contracts | Designated Hedges | ||||||
Derivative [Line Items] | ||||||
Notional amount | 61.5 | $ 56.8 | ||||
Fair Value Hedges | 6.250% Senior Secured U.S. Dollar Notes due February 2022 | Interest Rate Swaps | Designated Hedges | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 625 | |||||
Fixed interest payments receivable (as a percent) | 6.25% | |||||
Terminated derivative, notional amount | $ 200 | |||||
Fair Value Hedges | 6.250% Senior Secured U.S. Dollar Notes due February 2022 | Interest Rate Swaps | Non-designated Hedges | ||||||
Derivative [Line Items] | ||||||
Notional amount | 425 | |||||
Net Investment Hedging | Cross-currency swaps | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 100 | $ 200 | ||||
Terminated derivative, notional amount | $ 100 |
Systems, Equipment and Other _3
Systems, Equipment and Other Assets Related to Contracts, net and Property, Plant and Equipment, net - Systems & Equipment and PPE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
Fixed assets | ||
Systems, equipment and other assets related to contracts, net | $ 1,205,592 | $ 1,068,121 |
Property, plant and equipment - net | 146,055 | 131,602 |
Gain on disposition of premium equipment | 27,700 | |
Systems & Equipment, net | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 2,799,393 | 2,844,127 |
Accumulated depreciation | (1,593,801) | (1,776,006) |
Systems, equipment and other assets related to contracts, net | 1,205,592 | 1,068,121 |
Systems & Equipment, net | Land | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 297 | 0 |
Systems & Equipment, net | Buildings | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 748 | 2,257 |
Systems & Equipment, net | Terminals and systems | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 2,610,417 | 2,614,869 |
Systems & Equipment, net | Furniture and equipment | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 138,591 | 150,419 |
Systems & Equipment, net | Construction in progress | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 49,340 | 76,582 |
PPE, net | ||
Fixed assets | ||
Property, plant and equipment, gross | 328,789 | 343,563 |
Accumulated depreciation | (182,734) | (211,961) |
Property, plant and equipment - net | 146,055 | 131,602 |
PPE, net | Land | ||
Fixed assets | ||
Property, plant and equipment, gross | 2,317 | 964 |
PPE, net | Buildings | ||
Fixed assets | ||
Property, plant and equipment, gross | 70,473 | 68,847 |
PPE, net | Terminals and systems | ||
Fixed assets | ||
Property, plant and equipment, gross | 0 | 0 |
PPE, net | Furniture and equipment | ||
Fixed assets | ||
Property, plant and equipment, gross | 240,375 | 258,767 |
PPE, net | Construction in progress | ||
Fixed assets | ||
Property, plant and equipment, gross | $ 15,624 | $ 14,985 |
Leases - Leased Assets and Liab
Leases - Leased Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Operating ROU asset | $ 288,196 | $ 296,751 |
Finance lease right-of-use assets | 32,739 | 35,441 |
Total lease assets | 320,935 | 332,192 |
Liabilities: | ||
Operating lease liability, current | 44,263 | 43,902 |
Finance lease liability, current | 10,944 | 8,680 |
Operating lease liability, non-current | 266,227 | 272,350 |
Finance lease liability, non-current | 30,854 | 36,240 |
Present value of lease liabilities | $ 352,288 | $ 361,172 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Finance lease, right-of-use asset, accumulated amortization | $ 15,700 | $ 6,800 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted-average remaining lease term (in years) | ||
Operating | 8 years 3 months 25 days | 8 years 9 months 18 days |
Finance | 5 years 1 month 17 days | 6 years 3 days |
Weighted-average discount rate | ||
Operating | 7.01% | 7.74% |
Finance | 5.16% | 5.45% |
Operating lease costs | $ 72,025 | $ 75,586 |
Finance lease costs | 11,451 | 10,341 |
Variable lease costs | 22,587 | 22,163 |
Finance lease, ROU asset, amortization | 9,300 | 7,800 |
Finance lease, interest expense | $ 2,100 | $ 2,500 |
Leases - Maturity Schedule (Det
Leases - Maturity Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Lease | ||
2021 | $ 63,964 | |
2022 | 55,090 | |
2023 | 49,383 | |
2024 | 44,515 | |
2025 | 38,697 | |
Thereafter | 171,168 | |
Total lease payments | 422,817 | |
Less: Imputed interest | (112,327) | |
Present value of lease liabilities | 310,490 | |
Finance Lease | ||
2021 | 12,729 | |
2022 | 9,678 | |
2023 | 6,983 | |
2024 | 5,309 | |
2025 | 4,985 | |
Thereafter | 8,150 | |
Total lease payments | 47,834 | |
Less: Imputed interest | (6,036) | |
Present value of lease liabilities | 41,798 | |
Lease Liabilities Payments Due [Abstract] | ||
2021 | 76,693 | |
2022 | 64,768 | |
2023 | 56,366 | |
2024 | 49,824 | |
2025 | 43,682 | |
Thereafter | 179,318 | |
Total lease payments | 470,651 | |
Less: Imputed interest | (118,363) | |
Present value of lease liabilities | $ 352,288 | $ 361,172 |
Leases - Cash Flow (Details)
Leases - Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of liabilities | ||
Operating cash flows from operating and finance leases | $ 67,731 | $ 74,175 |
Finance cash flows from finance leases | 9,761 | 7,632 |
ROU assets obtained in exchange for lease obligations (net of early terminations) | ||
Operating leases | 34,385 | 12,914 |
Finance leases | $ 6,359 | $ 9,441 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Rent and lease expense | $ 81.5 | ||
Contingent rent payments | $ 0.8 | ||
Lease income as a percentage of revenues | 7.00% | 8.00% |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020reporting_unit | Dec. 31, 2020USD ($)restructuring_planreporting_unit | Dec. 31, 2019USD ($)reporting_unit | Dec. 31, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Number of restructuring plans | restructuring_plan | 3 | |||
Restructuring cost incurred to date | $ 14,800 | |||
Restructuring costs | $ 45,045 | $ 24,855 | ||
Number of reporting units | reporting_unit | 4 | 2 | 4 | |
Segment Reorganization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 16,300 | |||
Global Supply Chain Optimization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 9,000 | |||
Severance and related employee costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 41,403 | $ 7,074 | ||
Severance and related employee costs | Segment Reorganization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 17,000 | |||
Severance and related employee costs | Global Supply Chain Optimization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 5,000 | |||
Severance and related employee costs | Technology Organization Consolidation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 18,000 | |||
Restructuring costs | 17,500 | |||
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 3,182 | $ 2,281 | ||
Other | Global Supply Chain Optimization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | $ 4,000 |
Restructuring - 2020 Segment Re
Restructuring - 2020 Segment Reorganization - Rollforward of Restructuring Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring expense, net | $ 45,045 | $ 24,855 | $ 14,781 |
Severance and related employee costs | Segment Reorganization | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 0 | ||
Restructuring expense, net | 16,310 | ||
Cash payments | (9,132) | ||
Other adjustments, net | 544 | ||
Balance at end of period | $ 7,722 | $ 0 |
Restructuring - 2020 Global Sup
Restructuring - 2020 Global Supply Chain Optimization - Restructuring Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense, net | $ 45,045 | $ 24,855 | $ 14,781 |
Global Supply Chain Optimization | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense, net | 8,699 | ||
Asset impairment charges | 460 | ||
Severance and related employee costs | Global Supply Chain Optimization | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense, net | 5,123 | ||
Other | Global Supply Chain Optimization | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense, net | $ 3,576 |
Restructuring - 2020 Global S_2
Restructuring - 2020 Global Supply Chain Optimization - Rollforward of Restructuring Liability (Details) - Global Supply Chain Optimization $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of period | $ 0 |
Restructuring expense, net | 8,239 |
Cash payments | (5,546) |
Balance at end of period | 2,693 |
Severance and related employee costs | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of period | 0 |
Restructuring expense, net | 5,123 |
Cash payments | (3,630) |
Balance at end of period | 1,493 |
Other Costs | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of period | 0 |
Restructuring expense, net | 3,116 |
Cash payments | (1,916) |
Balance at end of period | $ 1,200 |
Restructuring - 2020 Technology
Restructuring - 2020 Technology Organization Consolidation - Rollforward of Restrucuting Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring expense, net | $ 45,045 | $ 24,855 | $ 14,781 |
Technology Organization Consolidation | Severance and related employee costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 0 | ||
Restructuring expense, net | 17,499 | ||
Cash payments | (3,506) | ||
Balance at end of period | $ 13,993 | $ 0 |
Restructuring - Restructuring E
Restructuring - Restructuring Expense by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $ 45,045 | $ 24,855 |
Severance and related employee costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 41,403 | 7,074 |
Asset Impairment Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 460 | 15,500 |
Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 3,182 | 2,281 |
Global Lottery | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 5,399 | 2,170 |
Global Lottery | Severance and related employee costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 5,399 | 2,164 |
Global Lottery | Asset Impairment Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 0 | 0 |
Global Lottery | Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 0 | 6 |
Global Gaming | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 33,612 | 18,362 |
Global Gaming | Severance and related employee costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 29,936 | 3,173 |
Global Gaming | Asset Impairment Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 460 | 15,500 |
Global Gaming | Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 3,216 | 311 |
Corporate and Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 6,034 | 4,323 |
Corporate and Other | Severance and related employee costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 6,068 | 1,737 |
Corporate and Other | Asset Impairment Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 0 | 0 |
Corporate and Other | Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $ 34 | $ 2,586 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2020reporting_unit | Dec. 31, 2020USD ($)reporting_unit | Dec. 31, 2019USD ($)reporting_unit | Dec. 31, 2018USD ($) | |
Goodwill [Line Items] | ||||||
Number of reporting units | reporting_unit | 4 | 2 | 4 | |||
Goodwill allocated to reporting unit | $ 0 | |||||
Impairment | $ (99,000) | $ (118,000) | (296,000) | $ (99,000) | $ (118,000) | |
Global Lottery | ||||||
Goodwill [Line Items] | ||||||
Goodwill allocated to reporting unit | 2,942,221 | |||||
Global Gaming | ||||||
Goodwill [Line Items] | ||||||
Goodwill allocated to reporting unit | 2,208,710 | |||||
International | ||||||
Goodwill [Line Items] | ||||||
Goodwill allocated to reporting unit | (1,112,833) | |||||
Impairment | (193,000) | (99,000) | ||||
North America Gaming and Interactive | ||||||
Goodwill [Line Items] | ||||||
Goodwill allocated to reporting unit | (1,336,867) | |||||
Impairment | $ (103,000) | $ 0 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in the carrying amount of goodwill, net | |||||||
Balance at the beginning of the period | $ 4,931,235 | $ 5,059,968 | |||||
Impairment | $ (99,000) | $ (118,000) | (296,000) | (99,000) | $ (118,000) | ||
Disposal | 0 | (13,201) | |||||
Foreign currency translation | (4,563) | (16,532) | |||||
Segment realignment | 0 | ||||||
Foreign currency translation after segment realignment | 82,817 | ||||||
Balance at the end of the period | 4,931,235 | 5,059,968 | 4,713,489 | 4,931,235 | 5,059,968 | ||
Goodwill, net | |||||||
Cost | $ (4,713,489) | $ (5,984,231) | |||||
Accumulated impairment | (1,052,996) | ||||||
Net of accumulated impairment loss | 4,931,235 | 5,059,968 | 4,713,489 | 4,931,235 | 5,059,968 | 4,713,489 | 4,931,235 |
North America Gaming and Interactive | |||||||
Changes in the carrying amount of goodwill, net | |||||||
Balance at the beginning of the period | 1,439,867 | 1,439,867 | |||||
Impairment | (103,000) | 0 | |||||
Disposal | 0 | ||||||
Foreign currency translation | 0 | 0 | |||||
Segment realignment | (1,336,867) | ||||||
Balance at the end of the period | 1,439,867 | 1,439,867 | 0 | 1,439,867 | 1,439,867 | ||
Goodwill, net | |||||||
Cost | 0 | (2,153,867) | |||||
Accumulated impairment | (714,000) | ||||||
Net of accumulated impairment loss | 1,439,867 | 1,439,867 | 0 | 1,439,867 | 1,439,867 | 0 | 1,439,867 |
North America Lottery | |||||||
Changes in the carrying amount of goodwill, net | |||||||
Balance at the beginning of the period | 1,221,589 | 1,221,589 | |||||
Impairment | 0 | 0 | |||||
Disposal | 0 | ||||||
Foreign currency translation | 0 | 0 | |||||
Segment realignment | (1,221,589) | ||||||
Balance at the end of the period | 1,221,589 | 1,221,589 | 0 | 1,221,589 | 1,221,589 | ||
Goodwill, net | |||||||
Cost | 0 | (1,225,682) | |||||
Accumulated impairment | (4,093) | ||||||
Net of accumulated impairment loss | 1,221,589 | 1,221,589 | 1,221,589 | 1,221,589 | 1,221,589 | 0 | 1,221,589 |
International | |||||||
Changes in the carrying amount of goodwill, net | |||||||
Balance at the beginning of the period | 1,307,969 | 1,422,847 | |||||
Impairment | (193,000) | (99,000) | |||||
Disposal | (13,201) | ||||||
Foreign currency translation | (2,136) | (2,677) | |||||
Segment realignment | (1,112,833) | ||||||
Balance at the end of the period | 1,307,969 | 1,422,847 | 0 | 1,307,969 | 1,422,847 | ||
Goodwill, net | |||||||
Cost | 0 | (1,641,187) | |||||
Accumulated impairment | (333,218) | ||||||
Net of accumulated impairment loss | 1,307,969 | 1,422,847 | 0 | 1,307,969 | 1,422,847 | 0 | 1,307,969 |
Italy | |||||||
Changes in the carrying amount of goodwill, net | |||||||
Balance at the beginning of the period | 1,482,069 | 1,495,924 | |||||
Impairment | 0 | 0 | |||||
Disposal | 0 | ||||||
Foreign currency translation | (2,427) | (13,855) | |||||
Segment realignment | (1,479,642) | ||||||
Balance at the end of the period | 1,482,069 | 1,495,924 | 0 | 1,482,069 | 1,495,924 | ||
Goodwill, net | |||||||
Cost | 0 | (1,483,754) | |||||
Accumulated impairment | (1,685) | ||||||
Net of accumulated impairment loss | 1,482,069 | 1,495,924 | 0 | 1,482,069 | 1,495,924 | 0 | 1,482,069 |
Global Lottery | |||||||
Changes in the carrying amount of goodwill, net | |||||||
Balance at the beginning of the period | 0 | ||||||
Segment realignment | 2,942,221 | ||||||
Foreign currency translation after segment realignment | 55,118 | ||||||
Balance at the end of the period | 0 | 2,997,339 | 0 | ||||
Goodwill, net | |||||||
Cost | (2,997,339) | 0 | |||||
Accumulated impairment | 0 | ||||||
Net of accumulated impairment loss | 0 | 2,997,339 | 0 | 2,997,339 | 0 | ||
Global Gaming | |||||||
Changes in the carrying amount of goodwill, net | |||||||
Balance at the beginning of the period | 0 | ||||||
Disposal | (520,259) | ||||||
Segment realignment | 2,208,710 | ||||||
Foreign currency translation after segment realignment | 27,699 | ||||||
Balance at the end of the period | 0 | 1,716,150 | 0 | ||||
Goodwill, net | |||||||
Cost | (1,716,150) | 0 | |||||
Accumulated impairment | 0 | ||||||
Net of accumulated impairment loss | 0 | 1,716,150 | 0 | 1,716,150 | 0 | ||
Discontinued Operations | |||||||
Changes in the carrying amount of goodwill, net | |||||||
Balance at the beginning of the period | 520,259 | 520,259 | |||||
Disposal | (520,259) | ||||||
Balance at the end of the period | 520,259 | 520,259 | 0 | 520,259 | 520,259 | ||
Goodwill, net | |||||||
Cost | 0 | (520,259) | |||||
Net of accumulated impairment loss | $ 520,259 | $ 520,259 | $ 0 | $ 520,259 | $ 520,259 | $ 0 | $ 520,259 |
Intangible Assets, net - Compon
Intangible Assets, net - Components (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 3,735,840 | $ 3,684,263 |
Total Gross Carrying Amount | 3,980,840 | 3,929,263 |
Amortization | ||
Accumulated Amortization | 2,403,486 | 2,179,649 |
Intangible assets, net | ||
Net Book Value - Subject to amortization | 1,332,354 | 1,504,614 |
Total Net Book Value | 1,577,354 | 1,749,614 |
Trademarks | ||
Intangible assets - Gross carrying amount | ||
Unamortized: | 245,000 | 245,000 |
Intangible assets, net | ||
Unamortized: | $ 245,000 | 245,000 |
Customer relationships | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 15 years 6 months | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 2,300,034 | 2,302,118 |
Amortization | ||
Accumulated Amortization | 1,229,939 | 1,107,363 |
Intangible assets, net | ||
Net Book Value - Subject to amortization | $ 1,070,095 | 1,194,755 |
Computer software and game library | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 5 years 7 months 6 days | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 917,950 | 882,049 |
Amortization | ||
Accumulated Amortization | 783,671 | 723,768 |
Intangible assets, net | ||
Net Book Value - Subject to amortization | $ 134,279 | 158,281 |
Trademarks | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 14 years 1 month 6 days | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 186,218 | 185,285 |
Amortization | ||
Accumulated Amortization | 91,807 | 76,196 |
Intangible assets, net | ||
Net Book Value - Subject to amortization | $ 94,411 | 109,089 |
Licenses | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 3 years 6 months | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 69,148 | 60,763 |
Amortization | ||
Accumulated Amortization | 58,550 | 48,188 |
Intangible assets, net | ||
Net Book Value - Subject to amortization | $ 10,598 | 12,575 |
Developed technologies | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 5 years 7 months 6 days | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 225,108 | 219,448 |
Amortization | ||
Accumulated Amortization | 212,562 | 203,121 |
Intangible assets, net | ||
Net Book Value - Subject to amortization | $ 12,546 | 16,327 |
Other | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 8 years 10 months 24 days | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 37,382 | 34,600 |
Amortization | ||
Accumulated Amortization | 26,957 | 21,013 |
Intangible assets, net | ||
Net Book Value - Subject to amortization | $ 10,425 | $ 13,587 |
Intangible Assets, net - Narrat
Intangible Assets, net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 202.7 | $ 220.1 | $ 224 |
Computer software | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 25.7 | $ 29.4 | $ 29.6 |
Intangible Assets, net - Amorti
Intangible Assets, net - Amortization and Impairment (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Expected amortization expense for next five years | |
2021 | $ 187,867 |
2022 | 178,594 |
2023 | 155,379 |
2024 | 140,009 |
2025 | 118,637 |
Total | $ 780,486 |
Other Liabilities - Current Lia
Other Liabilities - Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other current liabilities | ||
Accrued interest payable | $ 138,184 | $ 141,485 |
Current financial liabilities | 128,330 | 62,806 |
Accrued expenses | 118,037 | 99,700 |
Contract liabilities | 107,542 | 66,749 |
Taxes other than income taxes | 96,346 | 67,309 |
Employee compensation | 89,832 | 155,962 |
Jackpot liabilities | 71,290 | 74,670 |
Operating lease liabilities | 44,263 | 43,902 |
Income taxes payable | 26,116 | 17,198 |
Other | 26,333 | 29,037 |
Total other current liabilities | $ 846,273 | $ 758,818 |
Other Liabilities - Non-Current
Other Liabilities - Non-Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other non-current liabilities | ||
Jackpot liabilities | $ 147,654 | $ 160,101 |
Contract liabilities | 62,175 | 65,855 |
Reserves for uncertain tax positions | 47,625 | 47,523 |
Finance lease liabilities | 30,854 | 36,240 |
Income taxes payable | 15,594 | 26,493 |
Royalties payable | 14,091 | 18,918 |
Other | 41,968 | 40,736 |
Total other non-current liabilities | $ 359,961 | $ 395,866 |
Debt - Reconciliation to Consol
Debt - Reconciliation to Consolidated Balance Sheets (Details) € in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Jun. 19, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 27, 2019EUR (€) | Sep. 16, 2019EUR (€) | Jun. 20, 2019EUR (€) | Sep. 26, 2018USD ($) | Jun. 27, 2018EUR (€) | Jul. 25, 2017EUR (€) |
Debt Instrument [Line Items] | ||||||||||
Debt issuance cost, net | $ (56,332) | $ (57,673) | ||||||||
Premium | 224 | (392) | ||||||||
Swap | 6,860 | 492 | ||||||||
Total | 8,250,238 | 8,065,517 | ||||||||
Short-term borrowings | 480 | 3,193 | ||||||||
Total debt | 8,299,486 | 8,123,290 | ||||||||
Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | 392,672 | 463,078 | ||||||||
Debt issuance cost, net | 0 | (978) | ||||||||
Premium | 0 | (74) | ||||||||
Swap | 0 | 19 | ||||||||
Short-term borrowings | 392,672 | 462,155 | ||||||||
Euro Term Loan Facility due January 2023 | Term loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | 392,672 | |||||||||
Debt issuance cost, net | 0 | |||||||||
Premium | 0 | |||||||||
Swap | 0 | |||||||||
Long-term Debt, Total | 392,672 | |||||||||
4.750% Senior Secured Euro Notes due March 2020 | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | 435,767 | |||||||||
Debt issuance cost, net | (978) | |||||||||
Premium | 0 | |||||||||
Swap | 0 | |||||||||
Short-term borrowings | 434,789 | |||||||||
5.500% Senior Secured U.S. Dollar Notes due June 2020 | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | 27,311 | |||||||||
Debt issuance cost, net | 0 | |||||||||
Premium | (74) | |||||||||
Swap | 19 | |||||||||
Short-term borrowings | 27,366 | |||||||||
Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | 6,851,028 | 6,331,407 | ||||||||
Debt issuance cost, net | (45,054) | (48,472) | ||||||||
Premium | 224 | (318) | ||||||||
Swap | 6,860 | 473 | ||||||||
Total | 6,813,058 | 6,282,780 | ||||||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due February 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | 1,000,001 | 1,500,000 | ||||||||
Debt issuance cost, net | (3,039) | (8,199) | ||||||||
Premium | 0 | 0 | ||||||||
Swap | 6,860 | 473 | ||||||||
Total | $ 1,003,822 | $ 1,491,328 | ||||||||
Stated interest rate on debt (as a percent) | 6.25% | 6.25% | 6.25% | |||||||
Senior Notes | 4.750% Senior Secured Euro Notes due February 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 1,043,035 | € 850,000 | $ 954,890 | |||||||
Debt issuance cost, net | (4,983) | (6,508) | ||||||||
Premium | 0 | 0 | ||||||||
Swap | 0 | 0 | ||||||||
Total | $ 1,038,052 | $ 948,382 | ||||||||
Stated interest rate on debt (as a percent) | 4.75% | 4.75% | 4.75% | |||||||
Senior Notes | 5.350% Senior Secured U.S. Dollar Notes due October 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 60,567 | $ 60,567 | ||||||||
Debt issuance cost, net | 0 | 0 | ||||||||
Premium | 224 | (318) | ||||||||
Swap | 0 | 0 | ||||||||
Total | $ 60,791 | $ 60,885 | ||||||||
Stated interest rate on debt (as a percent) | 5.35% | 5.35% | 5.35% | |||||||
Senior Notes | 3.500% Senior Secured Euro Notes due July 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 613,550 | € 500,000 | $ 561,700 | € 500,000 | ||||||
Debt issuance cost, net | (3,808) | (4,369) | ||||||||
Premium | 0 | 0 | ||||||||
Swap | 0 | 0 | ||||||||
Total | $ 609,742 | $ 557,331 | ||||||||
Stated interest rate on debt (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | ||||||
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 1,100,000 | $ 1,100,000 | ||||||||
Debt issuance cost, net | (8,359) | (10,041) | ||||||||
Premium | 0 | 0 | ||||||||
Swap | 0 | 0 | ||||||||
Total | $ 1,091,641 | $ 1,089,959 | ||||||||
Stated interest rate on debt (as a percent) | 6.50% | 6.50% | 6.50% | |||||||
Senior Notes | 3.500% Senior Secured Euro Notes due June 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 920,325 | € 750,000 | $ 842,550 | € 750,000 | ||||||
Debt issuance cost, net | (6,995) | (7,445) | ||||||||
Premium | 0 | |||||||||
Swap | 0 | |||||||||
Total | $ 913,330 | $ 835,105 | ||||||||
Stated interest rate on debt (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | ||||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 750,000 | $ 750,000 | $ 750,000 | |||||||
Debt issuance cost, net | (5,845) | (6,613) | ||||||||
Premium | 0 | 0 | ||||||||
Swap | 0 | 0 | ||||||||
Total | $ 744,155 | $ 743,387 | ||||||||
Stated interest rate on debt (as a percent) | 6.25% | 6.25% | 6.25% | 625.00% | ||||||
Senior Notes | 2.375% Senior Secured Euro Notes due April 2028 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 613,550 | € 500,000 | $ 561,700 | € 500,000 | ||||||
Debt issuance cost, net | (5,150) | (5,297) | ||||||||
Premium | 0 | |||||||||
Swap | 0 | |||||||||
Total | $ 608,400 | $ 556,403 | ||||||||
Stated interest rate on debt (as a percent) | 2.375% | 2.375% | 2.375% | 2.375% | ||||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 750,000 | € 750,000 | $ 750,000 | |||||||
Debt issuance cost, net | (6,875) | |||||||||
Premium | 0 | |||||||||
Swap | 0 | |||||||||
Total | $ 743,125 | |||||||||
Stated interest rate on debt (as a percent) | 5.25% | 5.25% | 5.25% | 5.25% | ||||||
Senior Notes | 4.750% Senior Secured Euro Notes due March 2020 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate on debt (as a percent) | 4.75% | |||||||||
Senior Notes | Senior Secured Notes 5.500 Percent Due in 2020 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate on debt (as a percent) | 5.50% | |||||||||
Term loan | Euro Term Loan Facility due January 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 1,055,306 | $ 1,325,612 | € 1,200,000 | € 1,500,000 | ||||||
Debt issuance cost, net | (11,278) | (8,223) | ||||||||
Premium | 0 | 0 | ||||||||
Swap | 0 | 0 | ||||||||
Long-term Debt, Total | 1,044,028 | 1,317,389 | ||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | 7,906,334 | 7,657,019 | ||||||||
Debt issuance cost, net | (56,332) | (56,695) | ||||||||
Premium | 224 | (318) | ||||||||
Swap | 6,860 | 473 | ||||||||
Long-term Debt, Total | 7,857,086 | 7,600,169 | ||||||||
Revolving Credit Facility | Euro Revolving Credit Facility B Due 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | 0 | 0 | ||||||||
Debt issuance cost, net | 0 | 0 | ||||||||
Premium | 0 | 0 | ||||||||
Swap | 0 | 0 | ||||||||
Long-term Debt, Total | 0 | 0 | ||||||||
Revolving Credit Facility | U.S. Dollar Revolving Credit Facility A due July 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | 0 | 0 | ||||||||
Debt issuance cost, net | 0 | 0 | ||||||||
Premium | 0 | 0 | ||||||||
Swap | 0 | 0 | ||||||||
Long-term Debt, Total | 0 | 0 | ||||||||
Other non-current assets | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance cost, net | $ (23,900) | $ (20,500) |
Debt - Schedule of Principal pa
Debt - Schedule of Principal payments for each debt obligation, excluding short-term borrowings (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
2021 | $ 392,672 |
2022 | 1,392,673 |
2023 | 1,766,236 |
2024 | 613,550 |
2025 | 1,100,000 |
2026 and thereafter | 3,033,875 |
Total principal payments | 8,299,006 |
U.S. Dollar Denominated | |
Debt Instrument [Line Items] | |
2021 | 0 |
2022 | 1,000,001 |
2023 | 60,567 |
2024 | 0 |
2025 | 1,100,000 |
2026 and thereafter | 1,500,000 |
Total principal payments | 3,660,568 |
Euro Denominated | |
Debt Instrument [Line Items] | |
2021 | 392,672 |
2022 | 392,672 |
2023 | 1,705,669 |
2024 | 613,550 |
2025 | 0 |
2026 and thereafter | 1,533,875 |
Total principal payments | $ 4,638,438 |
Debt - Schedule of Senior Secur
Debt - Schedule of Senior Secured Notes (Details) € in Thousands | 12 Months Ended | |||||||
Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Jun. 19, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 16, 2019EUR (€) | Jun. 20, 2019EUR (€) | Sep. 26, 2018USD ($) | Jun. 27, 2018EUR (€) | |
Debt Instrument [Line Items] | ||||||||
Minimum principal balance of intercompany loans securing the debt | $ 10,000,000 | |||||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | 6,851,028,000 | $ 6,331,407,000 | ||||||
Senior Notes | Senior Secured Notes6.250 Percent Due In2022 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 1,000,001,000 | 1,500,000,000 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.52% | 6.52% | ||||||
Senior Notes | Senior Secured Notes6.250 Percent Due In2022 [Member] | Debt Instrument, Redemption, Period 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | Senior Secured Notes6.250 Percent Due In2022 [Member] | Debt Instrument, Redemption, Period 3 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | Senior Secured Notes6.250 Percent Due In2022 [Member] | Debt Instrument, Redemption, Period 4 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | Senior Secured Notes6.250 Percent Due In2022 [Member] | Debt Instrument, Redemption, Period 5 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 101.00% | |||||||
Senior Notes | 4.750% Senior Secured Euro Notes due February 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 1,043,035,000 | € 850,000 | 954,890,000 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 4.98% | 4.98% | ||||||
Senior Notes | 4.750% Senior Secured Euro Notes due February 2023 | Debt Instrument, Redemption, Period 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | 4.750% Senior Secured Euro Notes due February 2023 | Debt Instrument, Redemption, Period 3 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | 4.750% Senior Secured Euro Notes due February 2023 | Debt Instrument, Redemption, Period 4 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | 4.750% Senior Secured Euro Notes due February 2023 | Debt Instrument, Redemption, Period 5 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 101.00% | |||||||
Senior Notes | 5.350% Senior Secured U.S. Dollar Notes due October 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 60,567,000 | 60,567,000 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.47% | 5.47% | ||||||
Senior Notes | 5.350% Senior Secured U.S. Dollar Notes due October 2023 | Debt Instrument, Redemption, Period 5 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | 5.350% Senior Secured U.S. Dollar Notes due October 2023 | Debt Instrument, Redemption, Period 7 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | 5.350% Senior Secured U.S. Dollar Notes due October 2023 | Debt Instrument, Redemption, Period 8 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 101.00% | |||||||
Senior Notes | Senior Secured Notes 3.500 Percent Due In 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 613,550,000 | € 500,000 | 561,700,000 | € 500,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 3.68% | 3.68% | ||||||
Senior Notes | Senior Secured Notes 3.500 Percent Due In 2024 [Member] | Debt Instrument, Redemption, Period 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | Senior Secured Notes 3.500 Percent Due In 2024 [Member] | Debt Instrument, Redemption, Period 3 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | Senior Secured Notes 3.500 Percent Due In 2024 [Member] | Debt Instrument, Redemption, Period 4 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | Senior Secured Notes 3.500 Percent Due In 2024 [Member] | Debt Instrument, Redemption, Period 5 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 101.00% | |||||||
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 1,100,000,000 | 1,100,000,000 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.71% | 6.71% | ||||||
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | Debt Instrument, Redemption, Period 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | Debt Instrument, Redemption, Period 3 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | Debt Instrument, Redemption, Period 4 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | Debt Instrument, Redemption, Period 5 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 101.00% | |||||||
Senior Notes | 3.500% Senior Secured Euro Notes due June 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 920,325,000 | € 750,000 | 842,550,000 | € 750,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 3.65% | 3.65% | ||||||
Senior Notes | 3.500% Senior Secured Euro Notes due June 2026 | Debt Instrument, Redemption, Period 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | 3.500% Senior Secured Euro Notes due June 2026 | Debt Instrument, Redemption, Period 4 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | 3.500% Senior Secured Euro Notes due June 2026 | Debt Instrument, Redemption, Period 5 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 101.00% | |||||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 750,000,000 | 750,000,000 | $ 750,000,000 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 6.41% | 6.41% | ||||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | Debt Instrument, Redemption, Period 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | Debt Instrument, Redemption, Period 3 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | Debt Instrument, Redemption, Period 4 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | Debt Instrument, Redemption, Period 5 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 101.00% | |||||||
Senior Notes | 2.375% Senior Secured Euro Notes due April 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 613,550,000 | € 500,000 | $ 561,700,000 | € 500,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 2.50% | 2.50% | ||||||
Senior Notes | 2.375% Senior Secured Euro Notes due April 2028 | Debt Instrument, Redemption, Period 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | 2.375% Senior Secured Euro Notes due April 2028 | Debt Instrument, Redemption, Period 4 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | 2.375% Senior Secured Euro Notes due April 2028 | Debt Instrument, Redemption, Period 5 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 101.00% | |||||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 750,000,000 | € 750,000 | $ 750,000,000 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 5.39% | 5.39% | ||||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | Debt Instrument, Redemption, Period 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | Debt Instrument, Redemption, Period 4 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | Debt Instrument, Redemption, Period 5 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 101.00% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Sep. 27, 2019USD ($) | Jun. 20, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2020EUR (€) | Jun. 19, 2020USD ($) | Jun. 15, 2020USD ($) | Apr. 11, 2020 | Apr. 10, 2020 | Mar. 05, 2020USD ($) | Mar. 05, 2020EUR (€) | Sep. 27, 2019EUR (€) | Sep. 16, 2019USD ($) | Sep. 16, 2019EUR (€) | Jul. 24, 2019USD ($) | Jul. 24, 2019EUR (€) | Jul. 23, 2019USD ($) | Jul. 23, 2019EUR (€) | Jun. 20, 2019EUR (€) | Sep. 26, 2018USD ($) | Jun. 27, 2018EUR (€) | Jul. 25, 2017EUR (€) |
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Minimum principal balance of intercompany loans securing the debt | $ 10,000,000 | |||||||||||||||||||||||
Senior Notes | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal | 6,851,028,000 | $ 6,331,407,000 | ||||||||||||||||||||||
Loss on extinguishment of debt | $ 29,600,000 | |||||||||||||||||||||||
Senior Notes | 3.500% Senior Secured Euro Notes due July 2024 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal | $ 613,550,000 | $ 561,700,000 | € 500,000,000 | € 500,000,000 | ||||||||||||||||||||
Stated interest rate (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | ||||||||||||||||||||
Effective interest rate (as a percent) | 3.68% | 3.68% | ||||||||||||||||||||||
Senior Notes | 3.500% Senior Secured Euro Notes due June 2026 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal | $ 920,325,000 | $ 842,550,000 | € 750,000,000 | € 750,000,000 | ||||||||||||||||||||
Stated interest rate (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | |||||||||||||||||||
Effective interest rate (as a percent) | 3.65% | 3.65% | ||||||||||||||||||||||
Senior Notes | 4.125% Senior Secured Notes due February 2020 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Stated interest rate (as a percent) | 4.125% | 4.125% | ||||||||||||||||||||||
Repurchase amount | $ 497,500,000 | € 437,600,000 | ||||||||||||||||||||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | |||||||||||||||||||||
Stated interest rate (as a percent) | 6.25% | 6.25% | 6.25% | 625.00% | ||||||||||||||||||||
Effective interest rate (as a percent) | 6.41% | 6.41% | ||||||||||||||||||||||
Senior Notes | 2.375% Senior Secured Euro Notes due April 2028 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal | $ 613,550,000 | $ 561,700,000 | € 500,000,000 | € 500,000,000 | ||||||||||||||||||||
Stated interest rate (as a percent) | 2.375% | 2.375% | 2.375% | 2.375% | 2.375% | |||||||||||||||||||
Effective interest rate (as a percent) | 2.50% | 2.50% | ||||||||||||||||||||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal | $ 750,000,000 | € 750,000,000 | $ 750,000,000 | |||||||||||||||||||||
Stated interest rate (as a percent) | 5.25% | 5.25% | 5.25% | 5.25% | ||||||||||||||||||||
Financial guarantee, principal balance of intercompany loans | $ 10,000,000 | |||||||||||||||||||||||
Effective interest rate (as a percent) | 5.39% | 5.39% | ||||||||||||||||||||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | Debt Instrument, Redemption, Period 1 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 100.00% | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed, Certain Tax Events | 1 | 1 | ||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed, Triggering Event | 1.01 | 1.01 | ||||||||||||||||||||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | Debt Instrument, Redemption, Period 2 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 102.625% | |||||||||||||||||||||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | Debt Instrument, Redemption, Period 3 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 101.313% | |||||||||||||||||||||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | Debt Instrument, Redemption, Period 4 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 100.00% | |||||||||||||||||||||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due February 2022 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal | $ 1,000,001,000 | $ 1,500,000,000 | ||||||||||||||||||||||
Stated interest rate (as a percent) | 6.25% | 6.25% | 6.25% | |||||||||||||||||||||
Loss on extinguishment of debt | $ 23,300,000 | |||||||||||||||||||||||
Repurchase amount | $ 500,000,000 | |||||||||||||||||||||||
Effective interest rate (as a percent) | 6.52% | 6.52% | ||||||||||||||||||||||
Debt Instrument, Repurchase Amount, Consideration Paid | $ 525,000,000 | |||||||||||||||||||||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due February 2022 | Other Expense | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Loss on extinguishment of debt | $ 28,300,000 | |||||||||||||||||||||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due February 2022 | Interest Expense | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Loss on extinguishment of debt | 5,000,000 | |||||||||||||||||||||||
Senior Notes | Senior Secured Euro Notes Due March 2020 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Stated interest rate (as a percent) | 5.50% | 5.50% | ||||||||||||||||||||||
Repurchase amount | $ 432,000,000 | € 387,900,000 | ||||||||||||||||||||||
Senior Notes | Senior Secured U.S. Dollar Notes Due June 2020 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Stated interest rate (as a percent) | 5.50% | |||||||||||||||||||||||
Repurchase amount | $ 27,300,000 | |||||||||||||||||||||||
Senior Notes | 6.625% Senior Secured Notes due 2018 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Loss on extinguishment of debt | $ 24,800,000 | |||||||||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal | 7,906,334,000 | $ 7,657,019,000 | ||||||||||||||||||||||
Revolving Credit Facility | Euro Revolving Credit Facility B Due 2024 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal | 0 | 0 | ||||||||||||||||||||||
Loss on extinguishment of debt | 9,600,000 | € 8,500,000 | ||||||||||||||||||||||
Repurchase amount | 845,300,000 | |||||||||||||||||||||||
Repayments of lines of credit | $ 339,300,000 | |||||||||||||||||||||||
Revolving Credit Facility | Amended Senior Facilities Agreement | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Liquidity | 500,000,000 | |||||||||||||||||||||||
Effective interest rate (as a percent) | 2.50% | 2.475% | ||||||||||||||||||||||
Maximum annual amount spent on acquisitions | 100,000,000 | |||||||||||||||||||||||
Minimum principal balance of intercompany loans securing the debt | 10,000,000 | |||||||||||||||||||||||
Line of credit outstanding | $ 0 | |||||||||||||||||||||||
Commitment fees (as a percent) | 0.928% | |||||||||||||||||||||||
Unused available liquidity | $ 1,817,000,000 | |||||||||||||||||||||||
Debt Instrument, Covenant, Minimum Evidenced Liquidity Requirement | $ 750,000,000 | |||||||||||||||||||||||
Revolving Credit Facility | Amended Senior Facilities Agreement | Minimum | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Effective interest rate (as a percent) | 2.75% | 2.75% | ||||||||||||||||||||||
Commitment fees (as a percent) | 0.15% | |||||||||||||||||||||||
Revolving Credit Facility | Amended Senior Facilities Agreement | Maximum | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Effective interest rate (as a percent) | 3.25% | 3.25% | ||||||||||||||||||||||
Commitment fees (as a percent) | 0.60% | |||||||||||||||||||||||
Revolving Credit Facility | Revolving Credit Facility A | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Maximum amount | $ 1,050,000,000 | $ 1,200,000,000 | ||||||||||||||||||||||
Revolving Credit Facility | Revolving Credit Facility B | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Maximum amount | € | € 625,000,000 | € 725,000,000 | ||||||||||||||||||||||
Revolving Credit Facility | Amended Revolving Credit Facilities Due July 2021 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Line of credit outstanding | $ 0 | 0 | ||||||||||||||||||||||
Term loan | Euro Revolving Credit Facility B Due 2024 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Loss on extinguishment of debt | 2,300,000 | € 2,100,000 | ||||||||||||||||||||||
Repurchase amount | $ 542,500,000 | |||||||||||||||||||||||
Repayments of lines of credit | $ 192,300,000 | |||||||||||||||||||||||
Term loan | Euro Term Loan Facility due January 2023 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal | $ 1,055,306,000 | $ 1,325,612,000 | € 1,200,000,000 | € 1,500,000,000 | ||||||||||||||||||||
Repurchase amount | $ 350,200,000 | € 320,000,000 | ||||||||||||||||||||||
Effective interest rate (as a percent) | 2.50% | 2.05% | 2.50% |
Debt - Schedule of Installments
Debt - Schedule of Installments (Details) - Dec. 31, 2020 € in Thousands, $ in Thousands | USD ($) | EUR (€) |
Debt Instrument, Redemption [Line Items] | ||
January 25, 2020 | $ | $ 1,392,673 | |
January 25, 2021 | $ | 1,766,236 | |
January 25, 2022 | $ | 613,550 | |
January 25, 2023 | $ | $ 1,100,000 | |
Term loan | Euro Term Loan Facility due January 2023 | ||
Debt Instrument, Redemption [Line Items] | ||
January 25, 2020 | € | € 320,000 | |
January 25, 2021 | € | 320,000 | |
January 25, 2022 | € | 320,000 | |
January 25, 2023 | € | € 540,000 |
Debt - Schedule of Revolving Cr
Debt - Schedule of Revolving Credit Facilities (Details) - Revolving Credit Facility | Jul. 24, 2019EUR (€) | Jul. 24, 2019USD ($) | Jul. 23, 2019EUR (€) | Jul. 23, 2019USD ($) |
Revolving Credit Facility A | ||||
Debt Instrument [Line Items] | ||||
Maximum amount | $ | $ 1,050,000,000 | $ 1,200,000,000 | ||
Revolving Credit Facility B | ||||
Debt Instrument [Line Items] | ||||
Maximum amount | € | € 625,000,000 | € 725,000,000 |
Debt - Summary of Letters of Cr
Debt - Summary of Letters of Credit Outstanding and Weighted Average Annual Cost of Letters of Credit (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Letters of Credit | ||
Debt Instrument [Line Items] | ||
Letters of Credit Outstanding | $ 426,740 | $ 402,300 |
Weighted Average Annual Cost (as a percent) | 1.06% | 1.02% |
Letters of Credit | Revolving Credit Facilities | ||
Debt Instrument [Line Items] | ||
Letters of Credit Outstanding | $ 426,740 | $ 402,300 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Letters of Credit Outstanding | $ 0 | $ 0 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Interest expense | $ (412,872) | $ (423,293) | $ (431,612) |
Interest income | 14,956 | 12,418 | 14,229 |
Interest expense, net | (397,916) | (410,875) | (417,383) |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest expense | (344,286) | (351,077) | (352,293) |
Term loan | |||
Debt Instrument [Line Items] | |||
Interest expense | (36,665) | (36,138) | (39,462) |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Interest expense | (31,301) | (28,160) | (27,805) |
Other | |||
Debt Instrument [Line Items] | |||
Interest expense | $ (620) | $ (7,918) | $ (12,052) |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) before the Provision for Income Taxes by Jurisdiction (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||
(Loss) income from continuing operations before provision for income taxes | $ (847,707) | $ 128,007 | $ 133,868 |
United Kingdom | |||
Income Tax Contingency [Line Items] | |||
United Kingdom | (354,563) | 35,401 | 195,629 |
United States | |||
Income Tax Contingency [Line Items] | |||
Foreign | (776,396) | (301,307) | (363,507) |
Italy | |||
Income Tax Contingency [Line Items] | |||
Foreign | 228,744 | 350,731 | 365,463 |
Other | |||
Income Tax Contingency [Line Items] | |||
Foreign | $ 54,508 | $ 43,182 | $ (63,717) |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Total Current | $ 106,165 | $ 201,788 | $ 178,989 |
Deferred: | |||
Total Deferred | (78,467) | (71,031) | (34,825) |
Provision for income taxes | 27,698 | 130,757 | 144,164 |
United Kingdom | |||
Current: | |||
Domestic | (819) | 1,803 | 3,579 |
Deferred: | |||
Domestic | (190) | (78) | (282) |
United States | |||
Current: | |||
Foreign | 10,045 | 46,288 | (12,028) |
Deferred: | |||
Foreign | (61,791) | (68,789) | (20,900) |
Italy | |||
Current: | |||
Foreign | 66,073 | 104,368 | 141,496 |
Deferred: | |||
Foreign | (876) | 914 | (3,517) |
Other | |||
Current: | |||
Foreign | 30,866 | 49,329 | 45,942 |
Deferred: | |||
Foreign | $ (15,610) | $ (3,078) | $ (10,126) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Thousands, € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017MXN ($) | Dec. 31, 2020MXN ($) | |
Income Tax [Line Items] | |||||||
Income taxes paid (net of refunds) | $ 89,000 | $ 196,800 | $ 178,500 | ||||
United Kingdom statutory tax rate (as a percent) | 19.00% | 19.00% | 19.00% | 19.00% | |||
Tax benefit, GILTI high tax exception and NOL carryback provisions | $ 12,100 | ||||||
Gross tax operating loss carryforwards | $ 1,300,000 | ||||||
Net operating loss carryforward, valuation allowance | 929,500 | ||||||
Valuation allowance, increase (decrease) | 127,900 | $ (14,700) | |||||
Unrecognized tax benefits that, if recognized, would impact effective tax rates | 27,200 | 29,200 | $ 26,600 | ||||
Interest expense, penalties and inflationary adjustments recognized in income tax expense | (200) | (4,700) | (700) | ||||
Accrued interest on unrecognized tax benefits as of end of year | 20,900 | $ 21,200 | $ 16,400 | ||||
General Business Tax Credit Carryforward | |||||||
Income Tax [Line Items] | |||||||
Valuation allowance for tax credit carryforward | 57,900 | ||||||
Mexico | |||||||
Income Tax [Line Items] | |||||||
Alleged taxes, penalties and adjustments | $ 425 | ||||||
Income tax examination, liability from settlement | 24,000 | $ 478.5 | |||||
Italy | Tax Years 2014 through 2015 | |||||||
Income Tax [Line Items] | |||||||
Alleged taxes, penalties and adjustments | 16,700 | € 13.2 | |||||
Domestic Tax Authority | United Kingdom | |||||||
Income Tax [Line Items] | |||||||
Gross tax operating loss carryforwards | 638,400 | ||||||
Foreign Tax Authority | |||||||
Income Tax [Line Items] | |||||||
Gross tax operating loss carryforwards | 370,700 | ||||||
Foreign Tax Authority | United States | |||||||
Income Tax [Line Items] | |||||||
Gross tax operating loss carryforwards | 331,200 | ||||||
State | |||||||
Income Tax [Line Items] | |||||||
Gross tax operating loss carryforwards | $ 18,300 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Provision for Income Taxes, With the Amount Computed by Applying United Kingdom Statutory Main Corporation Tax Rates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
(Loss) income from continuing operations before provision for income taxes | $ (847,707) | $ 128,007 | $ 133,868 |
United Kingdom statutory tax rate (as a percent) | 19.00% | 19.00% | 19.00% |
Statutory tax expense (benefit) | $ (161,064) | $ 24,321 | $ 25,435 |
Change in valuation allowances | 127,955 | 507 | (13,723) |
Non-deductible goodwill impairment | 56,240 | 18,810 | 22,420 |
Base erosion and anti-abuse (“BEAT”) tax | 12,926 | 31,340 | 13,769 |
Foreign tax expense, net of U.S. federal benefit | 9,754 | 13,585 | 14,930 |
IRAP and state taxes | 9,275 | 22,946 | 30,351 |
GILTI tax | 2,517 | 4,575 | 11,079 |
Change in unrecognized tax benefits | 1,295 | 6,637 | 9,166 |
Italian allowance for corporate equity | (3,841) | (2,380) | (3,328) |
Foreign tax and statutory rate differential | (13,988) | 2,974 | 48,040 |
Tax Law Changes | (19,627) | 0 | 0 |
Tax impact of Tax Act | 0 | 0 | (10,852) |
Italian tax settlement | 0 | 0 | 16,664 |
Non-taxable foreign exchange gain | 0 | (3,744) | (12,384) |
Non-taxable gains on investments | 0 | (6,225) | 0 |
Other | 6,256 | 17,411 | (7,403) |
Provision for income taxes | $ 27,698 | $ 130,757 | $ 144,164 |
Effective tax rate (as a percent) | (3.30%) | 102.10% | 107.70% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities, and Net Deferred Income Taxes Recorded in the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||||
Net operating losses | $ 299,885 | $ 175,342 | ||
Section 163(j) interest limitation | 154,925 | 93,522 | ||
Provisions not currently deductible for tax purposes | 88,084 | 127,132 | ||
Lease liabilities | 70,384 | 79,328 | ||
Jackpot timing differences | 38,724 | 40,550 | ||
Depreciation and amortization | 26,325 | 30,296 | ||
Inventory reserves | 2,438 | 3,437 | ||
Other | 47,377 | 44,459 | ||
Gross deferred tax assets | 728,142 | 594,066 | ||
Valuation allowance | (284,088) | (156,133) | $ (170,831) | $ (184,554) |
Deferred tax assets, net of valuation allowance | 444,054 | 437,933 | ||
Deferred tax liabilities: | ||||
Acquired intangible assets | 506,238 | 533,732 | ||
Depreciation and amortization | 160,898 | 174,970 | ||
Lease right-of-use assets | 65,015 | 74,201 | ||
Other | 11,796 | 20,962 | ||
Total deferred tax liabilities | 743,947 | 803,865 | ||
Net deferred income tax liability | (299,893) | (365,932) | ||
Deferred income taxes - non-current asset | 33,117 | 27,108 | ||
Deferred income taxes - non-current liability | $ (333,010) | $ (393,040) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of the Beginning and Ending Amount of Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 156,133 | $ 170,831 | $ 184,554 |
Expiration of tax attributes | 0 | (15,205) | 0 |
Net charges to (income) expense | 127,955 | 507 | (13,723) |
Balance at end of year | $ 284,088 | $ 156,133 | $ 170,831 |
Income Taxes - Reconciliation_3
Income Taxes - Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 29,175 | $ 26,635 | $ 20,975 |
Additions to tax positions - current year | 498 | 717 | 11,947 |
Additions to tax positions - prior years | 335 | 2,358 | 16,973 |
Reductions to tax positions - prior years | (2,259) | 0 | (4,610) |
Settlements | 0 | 0 | (17,238) |
Lapses in statutes of limitations | (525) | (535) | (1,412) |
Balance at end of year | $ 27,224 | $ 29,175 | $ 26,635 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Jackpot Liabilities Recorded as Current and Non-current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Jackpot Liabilities, Current | $ 71,290 | $ 74,670 |
Jackpot Liabilities, Noncurrent | 147,654 | $ 160,101 |
Total jackpot liabilities | $ 218,944 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Jackpot Payments (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Previous Winners | |
Loss Contingencies [Line Items] | |
2021 | $ 35,967 |
2022 | 22,705 |
2023 | 20,440 |
2024 | 17,863 |
2025 | 15,028 |
Thereafter | 84,552 |
Future jackpot payments due | 196,555 |
Future Winners | |
Loss Contingencies [Line Items] | |
2021 | 35,176 |
2022 | 8,250 |
2023 | 651 |
2024 | 651 |
2025 | 651 |
Thereafter | 9,761 |
Future jackpot payments due | 55,140 |
Total | |
Loss Contingencies [Line Items] | |
2021 | 71,143 |
2022 | 30,955 |
2023 | 21,091 |
2024 | 18,514 |
2025 | 15,679 |
Thereafter | 94,313 |
Future jackpot payments due | 251,695 |
Unamortized discounts | (32,751) |
Total jackpot liabilities | $ 218,944 |
Commitments and Contingencies_3
Commitments and Contingencies - Narrative (Details) | Oct. 20, 2016USD ($) | Sep. 15, 2016USD ($) | Jun. 10, 2016USD ($) | Jan. 07, 2015USD ($) | Dec. 09, 2014USD ($)plaintiff | Dec. 31, 2020USD ($)lawsuit |
Loss Contingencies [Line Items] | ||||||
Provisions for litigation matters | $ 7,900,000 | |||||
Texas Fun 5’s Instant Ticket Game | ||||||
Loss Contingencies [Line Items] | ||||||
Number of lawsuits | lawsuit | 5 | |||||
Steele, et al. v. GTECH Corporation | ||||||
Loss Contingencies [Line Items] | ||||||
Number of individuals claiming damages | plaintiff | 1,200 | |||||
Performance Bonds | ||||||
Loss Contingencies [Line Items] | ||||||
Term of bonds | 1 year | |||||
Northstar Lottery Group LLC | ||||||
Loss Contingencies [Line Items] | ||||||
Controlling interest percentage | 80.00% | |||||
Minimum | Steele, et al. v. GTECH Corporation | ||||||
Loss Contingencies [Line Items] | ||||||
Damages claimed | $ 500,000,000 | |||||
Minimum | Nettles v. GTECH Corporation | ||||||
Loss Contingencies [Line Items] | ||||||
Damages claimed | $ 4,000,000 | |||||
Minimum | McDonald v. GTECH Corporation | ||||||
Loss Contingencies [Line Items] | ||||||
Damages claimed | $ 500,000 | |||||
Minimum | Wiggins v. IGT Global Solutions Corp. | ||||||
Loss Contingencies [Line Items] | ||||||
Damages claimed | $ 1,000,000 | |||||
Minimum | Campos et al. v. GTECH Corporation | ||||||
Loss Contingencies [Line Items] | ||||||
Damages claimed | $ 1,000,000 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||||||||||||
Common stock, shares authorized (in shares) | 1,850,000,000 | |||||||||||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | |||||||||
Number of shares authorized to be repurchased | 20,474,483 | |||||||||||
Treasury stock, shares, acquired (in shares) | 0 | 0 | 0 | |||||||||
Cash dividends declared per share (in USD per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | |||
Maximum aggregate dividends and repurchases in each calendar year, per debt agreement terms | $ 300,000,000 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Shares of Common Stock Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shares of common stock outstanding | |||
Beginning balance (in shares) | 204,435,333 | 204,210,731 | 203,446,572 |
Shares issued under restricted stock award plans (in shares) | 421,231 | 224,602 | 619,614 |
Shares issued upon exercise of stock options (in shares) | 0 | 0 | 144,545 |
Ending balance (in shares) | 204,856,564 | 204,435,333 | 204,210,731 |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | $ 2,484,978 | $ 2,751,929 | $ 2,354,931 |
Change during period | 127,332 | (15,058) | (95,451) |
Reclassified to operations | (554) | (560) | (3,718) |
Tax effect | (33) | 700 | 1,846 |
Other comprehensive income (loss), net of tax | 126,745 | (14,918) | (97,323) |
Balance, end of period | 1,561,163 | 2,484,978 | 2,751,929 |
Foreign Currency Translation | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 230,835 | 247,362 | 338,146 |
Change during period | 128,275 | (18,172) | (90,309) |
Reclassified to operations | (507) | 1,623 | (4,254) |
Tax effect | (217) | 22 | 3,779 |
Other comprehensive income (loss), net of tax | 127,551 | (16,527) | (90,784) |
Balance, end of period | 358,386 | 230,835 | 247,362 |
Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (8,209) | (6,758) | (5,227) |
Change during period | (674) | 237 | (163) |
Reclassified to operations | (47) | (2,183) | 536 |
Tax effect | 184 | 495 | (1,904) |
Other comprehensive income (loss), net of tax | (537) | (1,451) | (1,531) |
Balance, end of period | (8,746) | (8,209) | (6,758) |
Other | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 4,053 | 993 | 6,001 |
Change during period | (269) | 2,877 | (4,979) |
Reclassified to operations | 0 | 0 | 0 |
Tax effect | 0 | 183 | (29) |
Other comprehensive income (loss), net of tax | (269) | 3,060 | (5,008) |
Balance, end of period | 3,784 | 4,053 | 993 |
AOCI Including Portion Attributable to Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 226,679 | 241,597 | 338,920 |
Balance, end of period | 353,424 | 226,679 | 241,597 |
Attributable to non-controlling interests | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 35,846 | 19,940 | 1,249 |
Change during period | (59,455) | 15,906 | 18,691 |
Reclassified to operations | 0 | 0 | 0 |
Tax effect | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (59,455) | 15,906 | 18,691 |
Balance, end of period | (23,609) | 35,846 | 19,940 |
Attributable to IGT PLC | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 262,525 | 261,537 | 340,169 |
Change during period | 67,877 | 848 | (76,760) |
Reclassified to operations | (554) | (560) | (3,718) |
Tax effect | (33) | 700 | 1,846 |
Other comprehensive income (loss), net of tax | 67,290 | 988 | (78,632) |
Balance, end of period | $ 329,815 | $ 262,525 | $ 261,537 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Ownership (Details) | Dec. 31, 2020 |
Lottomatica S.p.A. | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 61.50% |
Lotterie Nazionali S.r.l. (LN) | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 64.00% |
New Jersey | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 82.31% |
New Jersey | New Jersey Holding Company LLC | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 82.31% |
New Jersey Holding Company LLC | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 50.15% |
Variable Interest Entities - _2
Variable Interest Entities - Summary of VIE's assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 3,440,085 | $ 2,634,037 |
Non-current assets | 9,552,403 | 11,010,553 |
Total assets | 12,992,488 | 13,644,590 |
Total liabilities | 11,431,325 | 11,159,612 |
VIE, primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Current assets | 1,087,002 | 842,893 |
Non-current assets | 1,556,072 | 1,652,641 |
Total assets | 2,643,074 | 2,495,534 |
Total liabilities | $ 707,530 | $ 498,681 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2020segmentsegments | Jun. 30, 2020reporting_unit | Dec. 31, 2020reporting_unit | Dec. 31, 2019reporting_unit | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Number of reporting units | reporting_unit | 4 | 2 | 4 | ||
Number of business segments | segments | 2 | ||||
Segment Reorganization | |||||
Segment Reporting Information [Line Items] | |||||
Number of business segments | segment | 2 | ||||
ADM | Customer Concentration Risk | Revenue | |||||
Segment Reporting Information [Line Items] | |||||
Percentage of exclusive and non-exclusive concession revenue | 19.00% | 16.00% | 16.00% |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 3,115,456 | $ 4,031,757 | $ 3,980,872 |
Operating income (loss) | (107,465) | 477,916 | 473,597 |
Depreciation and amortization | 566,194 | 613,943 | 607,493 |
Expenditures for long-lived assets | (225,746) | (342,497) | (441,044) |
Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,163,998 | 2,292,845 | 2,361,690 |
Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | 951,458 | 1,738,912 | 1,619,182 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 0 | 0 |
Operating income (loss) | (543,738) | (398,899) | (433,542) |
Depreciation and amortization | 174,669 | 197,910 | 212,989 |
Expenditures for long-lived assets | (2,190) | (8,216) | (9,450) |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,115,456 | 4,031,757 | 3,980,872 |
Operating income (loss) | 436,273 | 876,815 | 907,139 |
Depreciation and amortization | 391,525 | 416,033 | 394,504 |
Expenditures for long-lived assets | (223,556) | (334,281) | (431,594) |
Operating Segments | Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,163,998 | 2,292,845 | 2,361,690 |
Operating income (loss) | 641,930 | 697,267 | 763,799 |
Depreciation and amortization | 235,767 | 228,972 | 223,126 |
Expenditures for long-lived assets | (148,679) | (167,349) | (202,412) |
Operating Segments | Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | 951,458 | 1,738,912 | 1,619,182 |
Operating income (loss) | (205,657) | 179,548 | 143,340 |
Depreciation and amortization | 155,758 | 187,061 | 171,378 |
Expenditures for long-lived assets | (74,877) | (166,932) | (229,182) |
Service | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,639,558 | 3,100,868 | 3,195,930 |
Service | Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,042,652 | 2,182,961 | 2,234,801 |
Service | Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | 596,906 | 917,907 | 961,129 |
Service | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 0 | 0 |
Service | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,639,558 | 3,100,868 | 3,195,930 |
Service | Operating Segments | Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,042,652 | 2,182,961 | 2,234,801 |
Service | Operating Segments | Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | 596,906 | 917,907 | 961,129 |
Product | |||
Segment Reporting Information [Line Items] | |||
Revenue | 475,898 | 930,889 | 784,942 |
Product | Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 121,346 | 109,884 | 126,889 |
Product | Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | 354,552 | 821,005 | 658,053 |
Product | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 0 | 0 |
Product | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 475,898 | 930,889 | 784,942 |
Product | Operating Segments | Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 121,346 | 109,884 | 126,889 |
Product | Operating Segments | Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 354,552 | $ 821,005 | $ 658,053 |
Segment Information - Schedul_2
Segment Information - Schedule of Revenue from External Customers Based on Geographical Location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 3,115,456 | $ 4,031,757 | $ 3,980,872 |
United States | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 1,666,241 | 2,115,791 | 2,063,477 |
Italy | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 895,942 | 989,796 | 973,621 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 63,874 | 73,541 | 58,681 |
Rest of Europe | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 209,080 | 322,654 | 313,779 |
All other | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 280,319 | $ 529,975 | $ 571,314 |
Segment Information - Schedul_3
Segment Information - Schedule of Long-Lived Assets Based on Geographical Location (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 1,199,723 | $ 1,351,647 |
United States | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 841,439 | 928,857 |
Italy | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 176,341 | 187,169 |
United Kingdom | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 13,871 | 17,687 |
Rest of Europe | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 90,646 | 102,874 |
All other | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 77,426 | $ 115,060 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($)employee | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)employee$ / sharesshares | |
Stock-Based Compensation | |||||
Options granted (in shares) | shares | 0 | 0 | |||
Proceeds from stock options exercised | $ 0 | $ 0 | |||
Total intrinsic value of options exercised (in dollars) | $ 6,000,000 | ||||
Weighted average grant date fair value of stock options granted (in dollars per share) | $ / shares | $ 6.84 | ||||
Number of employees affected by modification of awards | employee | 301 | 473 | |||
Incremental compensation cost due to modifications | $ 10,600,000 | $ 13,200,000 | |||
Performance share units (PSUs) | |||||
Stock-Based Compensation | |||||
Total vest-date fair value of stock awards vested (in dollars) | $ 2,700,000 | $ 3,700,000 | $ 24,600,000 | ||
Granted (in shares) | shares | 0 | 2,133,512 | 1,564,083 | ||
Performance share units (PSUs) | Tranche one | |||||
Stock-Based Compensation | |||||
Vesting percentage (as a percent) | 50.00% | ||||
Vesting period (in years) | 3 years | ||||
Performance share units (PSUs) | Tranche two | |||||
Stock-Based Compensation | |||||
Vesting percentage (as a percent) | 50.00% | ||||
Vesting period (in years) | 4 years | ||||
Restricted Stock Units (RSUs) | |||||
Stock-Based Compensation | |||||
Total vest-date fair value of stock awards vested (in dollars) | $ 1,200,000 | $ 900,000 | $ 3,400,000 | ||
Granted (in shares) | shares | 2,375,141 | 131,676 | 68,142 | ||
Restricted Stock Units (RSUs) | Minimum | |||||
Stock-Based Compensation | |||||
Vesting period (in years) | 1 year | ||||
Restricted Stock Units (RSUs) | Maximum | |||||
Stock-Based Compensation | |||||
Vesting period (in years) | 2 years | ||||
2015 Equity Incentive Plan | |||||
Stock-Based Compensation | |||||
Maximum number of shares that may be granted under the Plan (in shares) | shares | 11,500,000 | ||||
Director | Restricted Stock Units (RSUs) | |||||
Stock-Based Compensation | |||||
Contractual term (in years) | 10 years | ||||
Vesting period (in years) | 1 year | ||||
Chief Executive Officer | Stock options | |||||
Stock-Based Compensation | |||||
Contractual term (in years) | 6 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity and Related Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stock Options | ||
Beginning balance (in shares) | 1,140,566 | |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | 0 | |
Expired (in shares) | (718,066) | |
Ending balance (in shares) | 422,500 | 1,140,566 |
Vested and expected to vest (in shares) | 250,000 | |
Exercisable (in shares) | 250,000 | |
Weighted Average Exercise Price Per Share | ||
Beginning balance (in dollars per share) | $ 20.73 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0 | |
Expired (in dollars per share) | 20.29 | |
Ending balance (in dollars per share) | 21.49 | $ 20.73 |
Vested and expected to vest (in dollars per share) | 15.53 | |
Exercisable (in dollars per share) | $ 15.53 | |
Weighted Average Remaining Contractual Term | ||
Outstanding at end of period | 2 years 2 months 8 days | |
Vested and expected to vest | 1 year 4 months 13 days | |
Exercisable | 1 year 4 months 13 days | |
Aggregate Intrinsic Value | ||
Vested and expected to vest | $ 352 | |
Exercisable | $ 352 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Key Inputs and Assumptions in Stock Option Valuation Models (Details) - Stock options | 12 Months Ended |
Dec. 31, 2018$ / shares | |
Stock-Based Compensation | |
Exercise price (in dollars per share) | $ 30.12 |
Expected option term (in years) | 2 years 9 months 29 days |
Expected volatility of the Company's stock (as a percent) | 35.00% |
Risk-free interest rate (as a percent) | 2.73% |
Dividend yield (as a percent) | 2.66% |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Award Activity and Related Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Performance share units (PSUs) | |||
Stock Award Activity | |||
Beginning balance (in shares) | 5,060,951 | ||
Granted (in shares) | 0 | 2,133,512 | 1,564,083 |
Vested (in shares) | (474,399) | ||
Forfeited (in shares) | (1,229,586) | ||
Ending balance (in shares) | 3,356,966 | 5,060,951 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 19.41 | ||
Granted (in dollars per share) | 0 | $ 11.10 | $ 28.93 |
Vested (in dollars per share) | 24.07 | ||
Forfeited (in dollars per share) | 20.16 | ||
Ending balance (in dollars per share) | $ 18.40 | $ 19.41 | |
Stock awards, related information | |||
Unrecognized cost for nonvested awards (in dollars) | $ 1,052 | ||
Weighted average future recognition period (in years) | 3 months 7 days | ||
Restricted Stock Units (RSUs) | |||
Stock Award Activity | |||
Beginning balance (in shares) | 130,009 | ||
Granted (in shares) | 2,375,141 | 131,676 | 68,142 |
Vested (in shares) | (136,161) | ||
Forfeited (in shares) | (2,606) | ||
Ending balance (in shares) | 2,366,383 | 130,009 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 14.07 | ||
Granted (in dollars per share) | 9.04 | $ 14.10 | $ 30.23 |
Vested (in dollars per share) | 13.64 | ||
Forfeited (in dollars per share) | 9.08 | ||
Ending balance (in dollars per share) | $ 9.05 | $ 14.07 | |
Stock awards, related information | |||
Unrecognized cost for nonvested awards (in dollars) | $ 17,827 | ||
Weighted average future recognition period (in years) | 1 year 11 months 4 days |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Fair Value of Stock Awards Granted Including Weighted Average Grant Date Fair Value (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Performance share units (PSUs) | |||
Stock-Based Compensation | |||
Granted (in shares) | 0 | 2,133,512 | 1,564,083 |
Granted (in dollars per share) | $ 0 | $ 11.10 | $ 28.93 |
Restricted Stock Units (RSUs) | |||
Stock-Based Compensation | |||
Granted (in shares) | 2,375,141 | 131,676 | 68,142 |
Granted (in dollars per share) | $ 9.04 | $ 14.10 | $ 30.23 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | $ 6,877 | $ 26,514 | $ 33,086 |
Income tax (provision) benefit | 1,856 | 6,119 | 7,562 |
Total stock-based compensation, net of tax | 5,021 | 20,395 | 25,524 |
Cost of services | |||
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | (1,137) | 2,131 | 1,923 |
Cost of product sales | |||
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | (282) | 430 | 445 |
Selling, general and administrative | |||
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | (4,162) | 21,409 | 27,702 |
Research and development | |||
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | $ (1,296) | $ 2,544 | $ 3,016 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||
Net loss from continuing operations attributable to IGT PLC | $ (939,331) | $ (128,894) | $ (139,380) |
Net income from discontinued operations attributable to IGT PLC | 41,441 | 109,869 | 118,030 |
Net loss attributable to IGT PLC | $ (897,890) | $ (19,025) | $ (21,350) |
Denominator: | |||
Weighted-average shares - basic and diluted (in shares) | 204,725 | 204,373 | 204,083 |
Net loss from continuing operations attributable to IGT PLC per common share - basic and diluted (in dollars per share) | $ (4.59) | $ (0.63) | $ (0.68) |
Net loss attributable to IGT PLC per common share - basic and diluted (in dollars per share) | 0.20 | 0.54 | 0.58 |
Net income (loss) attributable to IGT PLC per common share - basic and diluted (in dollars per share) | $ (4.39) | $ (0.09) | $ (0.10) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock options and unvested awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities not included in the computation of diluted earnings per share (in shares) | 0.7 | 1.2 | 1.6 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Amounts Receivable from and Payable to Related Parties (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Trade receivables | $ 0 | $ 2 |
Trade payables | 5,096 | 3,180 |
Majority Shareholder | ||
Related Party Transaction [Line Items] | ||
Tax-related receivables | 0 | 2,031 |
Tax-related payables | $ 18,706 | $ 17,004 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Ringmaster S.r.l. | Joint venture | |||
Related Party Transaction [Line Items] | |||
Equity method ownership interest (as a percent) | 50.00% | ||
Investments | $ 0.8 | $ 0.7 | |
Expenses | $ 6.6 | 6.1 | $ 10.4 |
Connect Ventures One LP | Son of director | |||
Related Party Transaction [Line Items] | |||
Ownership interest accounted for at fair value (as a percent) | 10.00% | ||
Connect Ventures One LP | Entity with common director or management figure | |||
Related Party Transaction [Line Items] | |||
Amount of investment | $ 5.1 | 4.9 | |
Connect Ventures Two LP | Entity with common director or management figure | |||
Related Party Transaction [Line Items] | |||
Amount of investment | $ 7.3 | $ 6.2 |