Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document and Entity Information | |
Entity Registrant Name | International Game Technology PLC |
Entity Central Index Key | 1,619,762 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 203,446,572 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,057,418 | $ 294,094 |
Restricted cash and investments | 248,012 | 247,222 |
Trade and other receivables, net | 937,854 | 947,237 |
Inventories | 319,545 | 347,494 |
Other current assets | 407,520 | 424,727 |
Income taxes receivable | 94,168 | 28,792 |
Total current assets | 3,064,517 | 2,289,566 |
Systems, equipment and other assets related to contracts, net | 1,434,194 | 1,199,674 |
Property, plant and equipment, net | 193,723 | 357,841 |
Goodwill | 5,723,815 | 6,810,012 |
Intangible assets, net | 2,273,460 | 2,874,031 |
Other non-current assets | 2,427,953 | 1,497,662 |
Deferred income taxes | 41,546 | 31,376 |
Total non-current assets | 12,094,691 | 12,770,596 |
Total assets | 15,159,208 | 15,060,162 |
Current liabilities: | ||
Accounts payable | 1,240,753 | 1,216,079 |
Other current liabilities | 1,780,875 | 1,097,045 |
Current portion of long-term debt | 599,114 | 77 |
Income taxes payable | 55,935 | 28,590 |
Total current liabilities | 3,676,677 | 2,341,791 |
Long-term debt, less current portion | 7,777,445 | 7,863,085 |
Deferred income taxes | 491,460 | 761,924 |
Income taxes payable | 55,665 | 0 |
Other non-current liabilities | 446,113 | 444,556 |
Total non-current liabilities | 8,770,683 | 9,069,565 |
Total liabilities | 12,447,360 | 11,411,356 |
Commitments and contingencies (Note 16) | ||
Redeemable non-controlling interests | 356,917 | 223,141 |
Shareholders’ equity | ||
Common stock, par value $0.10 per share; 203,446,572 and 202,285,166 shares issued and outstanding at December 31, 2017 and 2016, respectively | 20,344 | 20,228 |
Additional paid-in capital | 2,676,854 | 2,849,761 |
Retained (deficit) earnings | (1,032,372) | 38,067 |
Accumulated other comprehensive income | 340,169 | 160,643 |
Total IGT PLC’s shareholders’ equity | 2,004,995 | 3,068,699 |
Non-controlling interests | 349,936 | 356,966 |
Total shareholders’ equity | 2,354,931 | 3,425,665 |
Total liabilities, redeemable non-controlling interests, and shareholders’ equity | $ 15,159,208 | $ 15,060,162 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.1 |
Common stock, shares issued (in shares) | 203,446,572 | 202,285,166 |
Common stock, shares outstanding (in shares) | 203,446,572 | 202,285,166 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Service revenue | $ 4,136,556 | $ 4,375,586 | $ 3,977,693 |
Product sales | 802,403 | 778,310 | 711,363 |
Total revenue | 4,938,959 | 5,153,896 | 4,689,056 |
Cost of services | 2,553,083 | 2,553,479 | 2,417,315 |
Cost of product sales | 579,431 | 582,358 | 520,343 |
Selling, general and administrative | 816,093 | 945,824 | 795,252 |
Research and development | 313,088 | 343,531 | 277,401 |
Restructuring expense | 39,876 | 27,934 | 76,896 |
Impairment loss | 715,220 | 37,744 | 12,497 |
Transaction (income) expense, net | (26,740) | 2,590 | 49,396 |
Total operating expenses | 4,990,051 | 4,493,460 | 4,149,100 |
Operating (loss) income | (51,092) | 660,436 | 539,956 |
Interest income | 10,436 | 12,840 | 17,681 |
Interest expense | (458,899) | (469,268) | (457,984) |
Foreign exchange (loss) gain, net | (443,977) | 101,040 | 5,611 |
Other (expense) income, net | (33,393) | 18,365 | (122,295) |
Total non-operating expenses | (925,833) | (337,023) | (556,987) |
(Loss) income before (benefit from) provision for income taxes | (976,925) | 323,413 | (17,031) |
(Benefit from) provision for income taxes | (29,414) | 59,206 | 38,896 |
Net (loss) income | (947,511) | 264,207 | (55,927) |
Less: Net income attributable to non-controlling interests | 55,400 | 45,413 | 19,647 |
Less: Net income attributable to redeemable non-controlling interests | 65,665 | 7,457 | 0 |
Net (loss) income attributable to IGT PLC | $ (1,068,576) | $ 211,337 | $ (75,574) |
Net income (loss) attributable to IGT PLC per common share - basic (in dollars per share) | $ (5.26) | $ 1.05 | $ (0.39) |
Net income (loss) attributable to IGT PLC per common share - diluted (in dollars per share) | $ (5.26) | $ 1.05 | $ (0.39) |
Weighted-average shares - basic (in shares) | 203,130 | 201,511 | 192,398 |
Weighted-average shares - diluted (in shares) | 203,130 | 202,214 | 192,398 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (947,511) | $ 264,207 | $ (55,927) |
Change in foreign currency translation: | |||
Foreign currency translation adjustments | 182,791 | (49,881) | 60,079 |
Reclassification of loss to net income | 0 | 118 | 0 |
Total foreign currency translation adjustments | 182,791 | (49,763) | 60,079 |
Change in unrealized (loss) gain on cash flow hedges: | |||
Unrealized (loss) gain on cash flow hedges | (6,610) | 8,351 | (594) |
Reclassification of loss (gain) to net income | 1,744 | (5,218) | (244) |
Total change in unrealized (loss) gain on cash flow hedges | (4,866) | 3,133 | (838) |
Unrealized (loss) gain on available-for-sale securities | (678) | 8,772 | (3,046) |
Unrealized (loss) gain on defined benefit plans | (120) | (682) | 395 |
Other comprehensive income (loss), before tax | 177,127 | (38,540) | 56,590 |
Income tax benefit (provision) related to items of other comprehensive income | 1,936 | 4,548 | (17,259) |
Other comprehensive income (loss) | 179,063 | (33,992) | 39,331 |
Total comprehensive (loss) income | (768,448) | 230,215 | (16,596) |
Less: Total comprehensive income attributable to non-controlling interests | 54,937 | 45,616 | 19,343 |
Less: Total comprehensive income attributable to redeemable non-controlling interests | 65,665 | 7,457 | 0 |
Total comprehensive (loss) income attributable to IGT PLC | $ (889,050) | $ 177,142 | $ (35,939) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net (loss) income | $ (947,511) | $ 264,207 | $ (55,927) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Impairment loss | 715,220 | 37,744 | 12,497 |
Foreign exchange loss (gain), net | 443,977 | (101,040) | (5,611) |
Amortization | 401,355 | 492,021 | 410,264 |
Depreciation | 401,085 | 390,448 | 369,564 |
Service revenue amortization | 209,774 | 116,980 | 107,812 |
Loss on extinguishment of debt | 25,733 | 0 | 73,806 |
Debt issuance cost amortization | 23,217 | 18,347 | 40,366 |
Stock-based payment expense | 4,704 | 26,346 | 36,067 |
Gain on sale of Double Down Interactive LLC | (51,348) | 0 | 0 |
Deferred income tax provision | (296,265) | (153,649) | (149,241) |
Other non-cash costs, net | 25,768 | (142) | 50,626 |
Changes in operating assets and liabilities, excluding the effects of disposition and acquisitions: | |||
Trade and other receivables | 45,465 | (23,758) | 83,218 |
Inventories | 51,406 | (76,321) | 10,219 |
Upfront Italian license fees | (244,698) | (665,260) | 0 |
Accounts payable | (3,031) | (22,855) | (53,762) |
Other assets and liabilities | (118,923) | (21,736) | (160,330) |
Net cash provided by operating activities | 685,928 | 281,332 | 769,568 |
Cash flows from investing activities | |||
Proceeds from sale of Double Down Interactive LLC, net of cash divested | 823,788 | 0 | 0 |
Proceeds from sale of assets | 167,452 | 185,798 | 230,587 |
Capital expenditures | (698,010) | (541,943) | (376,521) |
Acquisition of IGT, net of cash acquired | 0 | 0 | (3,241,415) |
Other | 5,435 | 40,160 | 51,939 |
Net cash provided by (used in) investing activities | 298,665 | (315,985) | (3,335,410) |
Cash flows from financing activities | |||
Principal payments on long-term debt | (1,754,259) | (357,513) | (2,714,867) |
Dividends paid | (162,528) | (161,179) | (209,589) |
Return of capital - non-controlling interests | (52,352) | (35,407) | (30,568) |
Dividends paid - non-controlling interests | (50,601) | (32,717) | (29,156) |
Payments in connection with the early extinguishment of debt | (38,832) | 0 | (79,526) |
Return of capital - redeemable non-controlling interests | (32,039) | 0 | 0 |
Debt issuance costs paid | (16,378) | (10,825) | (84,859) |
Dividends paid - redeemable non-controlling interests | (7,307) | 0 | 0 |
Net (payments of) receipts from financial liabilities | (150) | 30,595 | (21,539) |
Capital increase - non-controlling interests | 41,011 | 40,771 | 9,049 |
Capital increase - redeemable non-controlling interests | 107,457 | 215,684 | 0 |
Proceeds from long-term debt | 1,762,270 | 0 | 6,521,991 |
Payments to withdrawing shareholders | 0 | 0 | (407,759) |
Payments on bridge facility | 0 | 0 | (51,409) |
Payments in connection with note consents | 0 | 0 | (29,022) |
Proceeds from interest rate swaps | 0 | 0 | 67,773 |
Other | (43,264) | (1,548) | (20,353) |
Net cash (used in) provided by financing activities | (246,972) | (312,139) | 2,920,166 |
Net increase (decrease) in cash and cash equivalents | 737,621 | (346,792) | 354,324 |
Effect of exchange rate changes on cash | 25,703 | 13,402 | (34,262) |
Cash and cash equivalents at the beginning of the period | 294,094 | 627,484 | 307,422 |
Cash and cash equivalents at the end of the period | 1,057,418 | 294,094 | 627,484 |
Supplemental Cash Flow Information | |||
Interest paid | (417,110) | (450,655) | (365,479) |
Income taxes paid | (296,386) | (183,278) | (199,195) |
Capital expenditures | (62,858) | (76,174) | (32,879) |
Equity consideration related to IGT acquisition | 0 | 0 | (928,884) |
Non-cash investing activities, net | (62,858) | (76,174) | (961,763) |
Dividends declared - non-controlling interests | (12,588) | (12,696) | 0 |
Non-cash financing activities, net | $ (12,588) | $ (12,696) | $ 0 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained (Deficit) Earnings | Accumulated Other Comprehensive Income | Total IGT PLC Equity | Non- Controlling Interests |
Balance, beginning of period at Dec. 31, 2014 | $ 2,947,720 | $ 217,171 | $ 2,204,246 | $ (53,160) | $ 46,377 | $ 155,203 | $ 2,569,837 | $ 377,883 |
Shares of common stock outstanding | ||||||||
Net (loss) income | (55,927) | (75,574) | (75,574) | 19,647 | ||||
Other comprehensive (loss) income, net of tax | 39,331 | 39,635 | 39,635 | (304) | ||||
Total comprehensive income (loss) | (16,596) | (75,574) | 39,635 | (35,939) | 19,343 | |||
Shares issued to acquire IGT | 917,257 | 4,532 | 912,725 | 917,257 | ||||
Capital increase | 9,049 | 9,049 | ||||||
Stock-based payment expense | 36,067 | 36,067 | 36,067 | |||||
Shares issued upon exercise of stock options | 10,831 | 221 | 10,610 | 10,831 | ||||
Shares issued under stock award plans | (3,083) | 112 | (3,195) | (3,083) | ||||
Payment for accelerated stock awards | (14,867) | (14,867) | (14,867) | |||||
Return of capital | (29,695) | (29,695) | ||||||
Escrow deposit returned-withdrawing shareholders | 15,926 | 15,926 | 15,926 | |||||
IGT stock awards attributable to purchase price | 11,626 | 11,626 | 11,626 | |||||
Merger of GTECH S.p.A. into IGT PLC | 0 | (217,332) | (242,932) | 460,264 | 0 | |||
GTECH S.p.A. shares exchanged for IGT PLC shares | 0 | 15,320 | (15,320) | 0 | ||||
Share issuance costs | (3,034) | (3,034) | (3,034) | |||||
Dividends paid | (107,955) | (79,869) | (79,869) | (28,086) | ||||
Treasury stock purchases | (407,104) | (407,104) | (407,104) | |||||
Balance, end of period at Dec. 31, 2015 | 3,366,142 | 20,024 | 2,816,057 | 0 | (13,271) | 194,838 | 3,017,648 | 348,494 |
Shares of common stock outstanding | ||||||||
Net (loss) income | 256,750 | 211,337 | 211,337 | 45,413 | ||||
Other comprehensive (loss) income, net of tax | (33,992) | (34,195) | (34,195) | 203 | ||||
Total comprehensive income (loss) | 222,758 | 211,337 | (34,195) | 177,142 | 45,616 | |||
Capital increase | 40,771 | 40,771 | ||||||
Stock-based payment expense | 26,346 | 26,346 | 26,346 | |||||
Shares issued upon exercise of stock options | 11,783 | 96 | 11,687 | 11,783 | ||||
Shares issued under stock award plans | (1,340) | 108 | (1,448) | (1,340) | ||||
Payment for accelerated stock awards | (3,489) | (3,489) | (3,489) | |||||
Return of capital | (36,197) | (36,197) | ||||||
Dividends paid | (207,195) | (161,179) | (161,179) | (46,016) | ||||
Other | 6,086 | 608 | 1,180 | 1,788 | 4,298 | |||
Balance, end of period at Dec. 31, 2016 | 3,425,665 | 20,228 | 2,849,761 | 0 | 38,067 | 160,643 | 3,068,699 | 356,966 |
Shares of common stock outstanding | ||||||||
Net (loss) income | (1,013,176) | (1,068,576) | (1,068,576) | 55,400 | ||||
Other comprehensive (loss) income, net of tax | 179,063 | 179,526 | 179,526 | (463) | ||||
Total comprehensive income (loss) | (834,113) | (1,068,576) | 179,526 | (889,050) | 54,937 | |||
Capital increase | 41,799 | 41,799 | ||||||
Stock-based payment expense | 4,704 | 4,704 | 4,704 | |||||
Shares issued upon exercise of stock options | (3,545) | 21 | (3,566) | (3,545) | ||||
Shares issued under stock award plans | (11,419) | 95 | (11,514) | (11,419) | ||||
Return of capital | (51,211) | (51,211) | ||||||
Dividends paid | (212,305) | (162,528) | 0 | (162,528) | (49,777) | |||
Other | (4,644) | (3) | (1,863) | (1,866) | (2,778) | |||
Balance, end of period at Dec. 31, 2017 | $ 2,354,931 | $ 20,344 | $ 2,676,854 | $ 0 | $ (1,032,372) | $ 340,169 | $ 2,004,995 | $ 349,936 |
Description of Business and Res
Description of Business and Restatement and Revision of Consolidated Statements of Cash Flows | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Restatement and Revision of Consolidated Statements of Cash Flows | Description of Business and Restatement and Revision of Consolidated Statements of Cash Flows Description of Business International Game Technology PLC, a public limited company organized under the laws of England and Wales (the “Parent”), has its corporate headquarters in London, England. The Parent is the successor to GTECH S.p.A., a società per azioni incorporated under the laws of Italy (“GTECH”), and the sole stockholder of International Game Technology, a Nevada corporation (“IGT”). The Parent, together with its consolidated subsidiaries, has principal operating facilities in Rome, Italy; Providence, Rhode Island; and Las Vegas, Nevada. When used in these notes, unless otherwise specified or the context otherwise indicates, all references to “IGT PLC” and the “Company” refer to the business and operations of the Parent and its consolidated subsidiaries. The Company is a leading commercial operator and provider of technology in the regulated worldwide gaming markets that operates and provides a full range of services and leading-edge technology products across all gaming markets, including lotteries, machine gaming, sports betting and interactive gaming. The Company also provides high-volume processing of commercial transactions. The Company’s state-of-the-art information technology platforms and software enable distribution of its products and services through land-based systems, Internet and mobile devices. Restatement and Revision of Consolidated Statements of Cash Flows The Company has restated the consolidated statement of cash flows for the year ended December 31, 2016 to correct the misclassification of the upfront payment of $665.3 million made in two installments in 2016 to the Italian governmental authority in connection with the Italian Gioco del Lotto service concession (the "Upfront Payment") from investing activities to operating activities. The Company concluded that license fee payments made to a customer and amortized as a reduction of service revenue should be classified as a cash outflow from operating activities in accordance with Accounting Standards Codification (“ASC”) 230, Statement of Cash Flows . In addition to this correction, the consolidated statement of cash flows for the year ended December 31, 2016 has been corrected to reflect other immaterial misclassifications. The impact of the restatement in the 2016 consolidated statement of cash flows is as follows ($ thousands): For the year ended December 31, 2016 As Reported Adjustment As Restated Inventories (61,026 ) (15,295 ) (76,321 ) Upfront Italian license fees — (665,260 ) (665,260 ) Net cash flows provided by operating activities 961,887 (680,555 ) 281,332 Upfront payments to customers (665,260 ) 665,260 — Capital expenditures (557,238 ) 15,295 (541,943 ) Net cash flows used in investing activities (996,540 ) 680,555 (315,985 ) Supplemental Cash Flow Information Upfront payments to customers (179,197 ) 179,197 — Non-cash investing activities, net (255,371 ) 179,197 (76,174 ) The Company has revised the consolidated statement of cash flows for the year ended December 31, 2015 to correct the classification of other upfront payments made of a similar nature as the Upfront Payment as well as other immaterial misclassifications. The impact of the revision in the 2015 consolidated statement of cash flows is as follows ($ thousands): For the year ended December 31, 2015 As Reported Adjustment As Revised Deferred income tax provision — (149,241 ) (149,241 ) Inventories 72 10,147 10,219 Other assets and liabilities (282,995 ) 122,665 (160,330 ) Net cash flows provided by operating activities 785,997 (16,429 ) 769,568 Capital expenditures (402,634 ) 26,113 (376,521 ) Net cash flows used in investing activities (3,361,523 ) 26,113 (3,335,410 ) Net increase in cash and cash equivalents 344,640 9,684 354,324 Cash and cash equivalents at the beginning of the period 317,106 (9,684 ) 307,422 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation 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”). Intercompany accounts and transactions have been eliminated. The consolidated financial statements are presented in U.S. dollars and all amounts are rounded to the nearest thousand (except share and per share data) unless otherwise indicated. Certain reclassifications have been made to prior periods to conform to the current period presentation. Principles of Consolidation The consolidated financial statements include the accounts of the Parent and its controlled subsidiaries, which are primarily majority owned. Investments in other entities that the Company has the ability to control, through a majority voting interest or otherwise, or with respect to which the Company is the primary beneficiary, are consolidated. Earnings or losses attributable to any non-controlling interests or redeemable non-controlling interests in a subsidiary are included in net income (loss) in the consolidated statements of operations. Any investments in affiliates over which the Company has the ability to exert significant influence, but do not control and with respect to which the Company is not the primary beneficiary, are accounted for using the equity method of accounting. Investments in affiliates for which the Company has no ability to exert significant influence are accounted for using the cost method of accounting. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates. Foreign Currency Translation Assets and liabilities of subsidiaries located outside of the United States that have a local functional currency are translated to U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense accounts for these subsidiaries are translated at the average exchange rates for the periods. Resulting translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within shareholders’ equity. The Company records gains and losses from currency transactions denominated in currencies other than the functional currency in its consolidated statement of operations. Revenue Recognition The Company has two categories of revenue: service revenue and product sales. Service revenue is derived from the following sources: • Operating contracts predominantly related to Italian concessions and Lottery Management Agreements ("LMAs"); • Gaming operations arrangements where the Company provides customers with proprietary gaming equipment, systems, content licensing, and services; • Facilities Management Contracts (" FMCs "); • Interactive contracts; and • Other professional services. Product sales are derived from the following sources: • Sale of lottery terminals and gaming machines, including game content; and • Sale of lottery and gaming systems, including the licensing of proprietary software, and implementation services. Revenue is recognized when all of the following conditions are met: (i) Persuasive evidence of an arrangement exists; (ii) Delivery has occurred or services have been rendered; (iii) The price to the customer is fixed or determinable; and (iv) Collectability is reasonably assured (or probable under ASC 985, Software) . Revenues are reported net of incentives, rebates, discounts and amortization of upfront payments to customers for licenses. Sales taxes, gaming taxes and other taxes of a similar nature are presented on a net basis (excluded from revenue). Amounts billed prior to completing the earnings process are deferred until revenue recognition criteria is met. Service revenue Service revenue is derived from the following types of arrangements: Operating contracts Certain of the Company’s revenue, primarily revenue from the Italy segment and to a lesser extent the North America Lottery segment, is derived from concessions or LMAs (“operating contracts”). Under operating contracts, the Company manages 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 arrangements where the Company is performing services on behalf of the government and the government is considered the Company’s customer, revenue is recognized net of prize payments, taxes, retailer commissions and remittances to state authorities, because the Company is acting as an agent to the authorities. In arrangements where the Company’s customers are the end players and/or retailers, the Company records revenue net of prizes and taxes only, and records the retailer commissions as a cost of service, because the Company is acting as the principal. The Company also provides sports pools and sports betting services. Under sports pools arrangements, the Company manages the sports pool where the sports pool prizes are divided among those players who select the correct outcome. There are no odds involved in sports pools and each winner’s payoff depends on the number of players and the size of the pool. Under sports pools arrangements, the Company collects the wagers, pays prizes, pays a percentage fee to retailers, withholds its fee, and remits the balance to the respective regulatory agency. The Company assumes no risk associated with sports pool wagering. The Company records revenue net of prize payouts, gaming taxes, retailer commissions and remittances to state authorities, because the Company is acting as an agent to the authorities. In sports betting contracts, the Company establishes and assumes the risks related to the odds. Under fixed odds betting, the potential payout is fixed at the time bets are placed and the Company bears the risk of odds setting. The Company is responsible for collecting the wagers, paying prizes, and paying fees to retailers. The Company retains the remaining cash as profits. Under these arrangements, the Company records revenue net, calculated as total wagers less the estimated payout for prizes, because the betting contract is considered a derivative and is required to be recorded at fair value. Taxes are recorded as contra revenue and retailer commissions are shown as expenses. Fees earned under operating contracts are recognized as revenue in the period earned and are classified as service revenue in the consolidated statement of operations when all of the criteria outlined above are met. Under operating contracts, the Company is generally required to pay an upfront license fee. When such upfront payments are made to the Company’s customers, the payment is recorded as a non-current asset and amortized as a reduction of service revenue over the license term. Gaming Operations Gaming operations revenues are generated by providing customers with proprietary land-based gaming equipment, systems, content licensing, and services under a variety of recurring revenue arrangements, including a percentage of coin-in (amounts wagered), a percentage of net win, or a fixed daily/monthly fee. Included in gaming operations 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 games differ from all other games in that a Company-sponsored progressive jackpot increases with every wager until a player wins the top award combination. Casinos with WAP machines pay a percentage of the coin-in (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 and is recorded as a component of the cost of providing the WAP service. Fees earned under gaming operations are recognized as revenue in the period earned and are classified as service revenue in the consolidated statement of operations when all of the criteria outlined above are met. Facilities Management Contracts Under FMCs, the Company constructs, installs, and operates the online system. Under a typical FMC, the Company maintains ownership of the technology and facilities, and is responsible for capital investments throughout the duration of the contract. The FMCs may also include a wide range of support services. These contracts, principally in the North America Lottery segment, generally provide for a variable amount of monthly or weekly service fees paid to the Company directly from the customer based on a percentage of sales. Fees earned under FMCs are recognized as revenue in the period earned, throughout the service period, and are classified as service revenue in the consolidated statement of operations when all of the criteria outlined above are met. Interactive Contracts Interactive revenues are principally generated from online social gaming and online real-money products and services (“IGTi”). Social gaming revenues are generated from the sale of virtual casino chips to players in the online DoubleDown Casino that can be used for additional play or game enhancements. Revenues from player purchases are recognized ratably over the estimated average service period in which the chips are consumed based on historical data analysis. Because DoubleDown is the principal, responsible for substantially all aspects of the casino services and sale of virtual goods to the player, revenues are recorded on a gross basis. Payment processing fees paid to Facebook, Apple and Google on a revenue participation basis are recorded within cost of services. IGTi revenues are generated from online real-money gaming solutions offerings, which encompass gaming systems infrastructure, applications, content licensing, and back office operational support services, including WAP jackpot funding and administration. IGTi solutions are generally provided under revenue sharing arrangements based on a percentage of net win similar to gaming operations discussed above. Other Professional Services Product sales contracts generally include other professional services, which includes telephone support, software maintenance, hardware maintenance, the right to receive unspecified upgrades/enhancements on a when-and-if-available basis, and other professional services. Fees earned for these professional services are generally recognized as revenue in the period earned (i.e., over the support period) and are classified as service revenue in the consolidated statement of operations when all of the criteria outlined above are met. Product Sales Product sales are derived from the following types of arrangements: Sale of Lottery Terminals and Sale of Gaming Machines, including Game Content These arrangements include the sale of gaming machines including game content, non-machine gaming related equipment, licensing and royalty fees, and component parts (including game themes and electronics conversion kits). The Company’s credit terms are predominantly short-term in nature. The Company also grants extended payment terms under contracts where the sale is secured by the related equipment sold. Revenue from the sale of lottery terminals and gaming machines is recognized based upon the contractual terms of each arrangement, but predominantly upon delivery or acceptance. If the sale of lottery terminals and gaming machines include multiple elements, these arrangements are accounted for under Multiple Element Accounting, discussed below. System Sales (Lottery and Gaming) System sale arrangements typically include multiple elements, where the Company constructs, sells, delivers and installs a turnkey system (inclusive of point-of-sale terminals, if applicable) or delivers equipment and licenses the computer software for a fixed price, and the customer subsequently operates the system. System sale arrangements generally include customer acceptance provisions and general rights to terminate the contract if the Company is in breach of the contract. Such arrangements include non-software elements, software, and other professional services. Amounts due to the Company and costs incurred by the Company in implementing the system prior to customer acceptance are deferred. Revenue attributable to the system is classified as product sales in the consolidated statement of operations and is recognized upon customer acceptance as long as there are no substantial doubts regarding collectability. Revenues attributable to other professional services provided subsequent to customer acceptance are classified as service revenue in the consolidated statement of operations in the period earned. Shipping and Handling Shipping and handling reimbursements from customers are included in product sales revenue with the associated costs included in cost of product sales. Multiple Element Arrangements The Company enters into multiple element arrangements in which a customer may purchase both products and services. In some scenarios, all deliverables are considered one element, while other arrangements contain multiple elements. When arrangements contain multiple elements, the Company allocates revenue to each element based on a relative selling price hierarchy. The relative selling price for each element is determined using vendor-specific objective evidence (“VSOE”) if available, third-party evidence (“TPE”) if VSOE is not available, or best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. • VSOE of selling price is based on the price charged when the element is sold separately. Establishing VSOE requires judgment to determine if there is a sufficient quantity of items sold on a stand-alone basis or if there are substantive contractual renewal rates and whether these prices demonstrate an appropriate level of concentration to conclude that VSOE exists. • TPE of selling price is established by evaluating largely interchangeable competitor products or services in stand-alone sales to similar customers. However, as the Company’s products contain a significant element of proprietary technology and the Company’s solutions offer different features and functionality, the comparable pricing of third-party products with similar functionality typically cannot be obtained. • BESP is established considering multiple factors including, but not limited to, market conditions, competitive landscape, internal costs, and gross profit objectives. In some scenarios, contractual pricing may serve as the best estimate given the variability among jurisdictions and customers, while in other scenarios the cost for each deliverable plus a reasonable margin is used as management’s best estimate of selling price. In scenarios where the Company’s products include hardware containing required software that function together to provide the essential functionality of the product, the Company considers both the hardware and required software as “non-software deliverables” and has therefore concluded that such arrangements are not subject to the industry-specific software revenue recognition guidance. The Company recognizes revenue for these arrangements based on ASC 605, Revenue Recognition , and allocates the arrangement consideration based on the relative selling price of the deliverables. In scenarios where the Company’s products include hardware where the software is not considered essential to the functionality of the hardware, the hardware revenue is recognized based on when the revenue recognition criteria is met (i.e., shipment, delivery and/or acceptance) and the software revenue is recognized under the software revenue recognition guidance provided under ASC 985, Software . Upfront License Fees The Company periodically makes long-term investments in contracts with customers and obtains licenses to supply products and services to the customers. As consideration, the Company pays license fees, which are classified as other non-current assets in the consolidated balance sheets. Consistent with the guidance in ASC Subtopic 605-50, Customer Payments and Incentives , the Company recognizes the amortization of the license fees as a reduction of service revenue over the estimated useful life of the contract. 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. The Company evaluates these assets for impairment and updates amortization rates on an agreement by agreement basis. The assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. In periods in which payments are made to the customer, the Company classifies the payment as a cash outflow from operating activities in accordance with ASC 230, Statement of Cash Flows . Jackpot Accounting The Company incurs jackpot expense and accrues jackpot liabilities with every wager on devices connected to a WAP system. Only WAP games include Company-sponsored jackpots for which the Company incurs jackpot expense. A portion of the fees paid to the Company is used for the funding and administration of Company-sponsored WAP jackpot payments. Jackpot expense represents the estimated cost to fund jackpots and is recorded to cost of services in the consolidated statement of operations. Changes in estimates for WAP jackpot liabilities and expenses are attributable to regular analysis and evaluation of the following factors: variations in slot play; number of WAP units in service and volume of play; interest rate movements; and the size of WAP jackpots at initial setup or after a WAP jackpot is won. The Company’s WAP jackpots are generally payable in equal annual installments over 20 to 26 years , or immediately in the case of instant wins. 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. Discount rates eligible for use in the lump sum payment calculation vary by jurisdiction and are impacted by market forces and other economic conditions. Jackpot liabilities are composed of payments due to previous winners, as well as amounts due to future winners of WAP 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 WAP jackpot win. If an annuity is subsequently sold and the periodic liability is instead guaranteed by surety bonds or letters of credit, the liability initially funded by an annuity continues to accrete at the same rate. If the periodic liability is not initially funded with an annuity investment, it is discounted and accreted using the risk-free rate (i.e. treasury rate) at the time of the WAP jackpot win. Liabilities due to future winners are recorded at the present value of the estimated amount of WAP jackpots not yet won. The Company estimates the present value of future winner liabilities using current market rates (prime, treasury, or agency, as applicable), weighted with historical lump sum payout election ratios. The most recent historical patterns indicate that approximately 90% of winners will elect the lump sum payment option. Additionally, the Company estimates the current portion of future winner liabilities based on historical experience with winner payment elections, in conjunction with the theoretical projected number of WAP jackpots. Restricted Cash and Investments The Company is 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. In certain cases, regulators have allowed for surety bonds or letters of credit in lieu of restricted cash. Restricted amounts are based primarily on the WAP jackpot amount displayed to slot players and vary by jurisdiction. Compliance with restricted cash and investment or assurance requirements for jackpot funding is reported to gaming authorities in various jurisdictions. Additionally, restricted cash is maintained for interactive online player deposits, as well as collections on factored and serviced receivables not yet paid through to the third-party owner. Cash and Cash Equivalents Cash and cash equivalents are composed of cash at banks and on-hand, and short-term highly liquid investments with a maturity of ninety days or less. Cash equivalents are stated at fair value. Allowance for Credit Losses The Company maintains an allowance for credit losses for the estimated probable losses on uncollectible trade and customer financing receivables. The allowance is estimated based upon the credit-worthiness of the Company’s customers, historical experience, aging analysis, as well as current market and economic conditions. Receivables are written off against these allowances in the period they are determined to be uncollectible. The Company determines its allowances for credit losses on customer financing receivables based on two classes: contracts and notes. Contracts include extended payment terms granted to qualifying customers for periods from one to five years and are typically secured by the related products sold. Notes consist of development financing loans granted to select customers to assist in the funding of new or expanding gaming facilities, generally under terms of one to seven years, and are secured by the developed property and/or other customer assets. Customer financing interest income is recognized based on market rates prevailing at issuance. 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. Legal costs are expensed as incurred. Redeemable Non-Controlling Interests Upon issuance, redeemable non-controlling interests are generally recorded at fair value. Subsequent to issuance, redeemable non-controlling interests are reported at their redemption value no later than the date they become redeemable by the holder. Income Taxes The Company records a tax provision for the anticipated tax consequences of its reported operating results. The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to the taxable income in effect for the years in which those assets and liabilities are expected to be realized and settled. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based upon the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Management believes it is more likely than not that forecasted income, including income that may be generated as a result of certain tax planning strategies, together with future reversals of existing taxable temporary differences, will be sufficient to fully recover the deferred tax assets not otherwise subject to a valuation allowance. In the event that the Company determines all or part of the deferred tax assets are not realizable in the future, the Company will record an adjustment to the valuation allowance that would be charged to earnings in the period such determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of GAAP and complex tax laws. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "Tax Act") was enacted into law in the United States and the new legislation contains several key tax provisions that affected the Company, including a one-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21% effective January 1, 2018, among others. The Company is required to recognize the effect of the tax law changes in the period of enactment, such as determining the transition tax, re-measuring U.S. deferred tax assets and liabilities as well as reassessing the net realizability of deferred tax assets and liabilities. In December 2017, the United States Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act ("SAB 118"), which allows the Company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the Tax Act was passed late in the fourth quarter of 2017, and ongoing guidance and accounting interpretation is expected over the next 12 months, the Company considers the accounting of the transition tax, deferred tax re-measurements, global intangible low-taxed income ("GILTI") and other items to be incomplete due to the forthcoming guidance and the Company's ongoing analysis of final year-end data and tax positions. The Company expects to complete its analysis within the measurement period in accordance with SAB 118. Refer to Note 14, Income Taxes, for additional information. Acquisitions and Intangible Assets Including Goodwill The Company accounts for acquired businesses using the acquisition method and accordingly, the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree are recorded at their acquisition date fair values. Goodwill represents the excess of the purchase price, including the fair value of any contingent consideration, over the fair value of the net assets acquired, including the amount assigned to identifiable intangible assets. The primary drivers that generate goodwill are the value of synergies between the acquired businesses and the Company and the acquired assembled workforce, neither of which qualifies as a separately identifiable intangible asset. Acquisition and disposition related costs are included in transaction (income) expense, net in the consolidated statements of operations. Transaction (income) expense, net is composed of transaction costs on significant business combinations and significant gains and losses incurred on disposals of group entities or businesses. The results of operations of acquired businesses are included in the consolidated financial statements from the date control is obtained. The fair value of identifiable intangible assets is based on significant judgments made by the Company, including the selection of the appropriate valuation methodologies and the determination of the economic lives of the assets acquired. These estimates and assumptions are based on historical and industry experience, information obtained from management of the acquired business, and also include, but are not limited to, future expected cash flows earned from the identified intangible assets and discount rates applied in determining the present value of those cash flows. Unanticipated events and circumstances may occur that could affect the accuracy or validity of such assumptions, estimates or actual results. Acquired identifiable intangible assets are amortized on a straight-line basis over their estimated economic lives. Amortization of acquired software-related intangibles is included in cost of services and cost of product sales and amortization of other acquired intangible assets is included in selling, general and administrative expenses in the consolidated statement of operations. Impairment Goodwill and other indefinite-lived intangible assets are tested at least annually, in the fourth quarter, for impairment and whenever changes in circumstances indicate an impairment may exist. Goodwill is tested at the reporting unit level, which is one level below or the same level as an operating segment. The process of evaluating the potential impairment related to goodwill and other indefinite-lived intangible assets requires the application of significant judgment. If an event occurs that would cause revisions to the estimates and assumptions used in analyzing the value of goodwill and other indefinite-lived intangible assets, the revision could result in a non-cash impairment loss that could have a material impact on the Company’s financial results. Long-lived assets, other than goodwill and other indefinite-lived intangible assets, are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The impairment test is based on discounted cash flows and, if impaired, the asset is written down to fair value. If an event occurs that requires revised estimates and assumptions previously used in analyzing the value of long-lived assets, other than goodwill and indefinite-lived intangible assets, that revision could result in a non-cash impairment loss that could have a material impact on the Company’s financial results. Depreciation and Amortization Systems, equipment and other assets relating to contracts and property, plant and equipment 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, including planned maintenance, are expensed as incurred. Definite-lived intangible assets are carried at cost and amortized over their estimated useful lives on a straight-line basis. Research and Development and Capitalized Software Development Costs Research and development (“R&D”) costs are expensed as incurred. R&D costs include salaries and benefits, stock-based compensation, consultants' fees, facilities-related costs, material costs, depreciation and travel. Costs incurred in the development of the Company’s externally-sold software products are expensed as incurred, except certain software development costs eligible for capitalization. Material software development costs incurred subsequent to establishing technological feasibility and through the general release of the software products are capitalized. Technological feasibility is demonstrated by the completion of a detailed program design or working model, if no program design is completed. Capitalized costs are amortized to cost of product sales over the products’ estimated economic life. Costs incurred in the development of software to be used only for services provided to customers are capitalized as internal-use software and amortized over the useful life to cost of services. Costs incurred in the development of software to be used only for internal use are capitalized as internal-use software and amortized over the useful life to selling, general and administrative expenses. 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, based on the estimated fair value of the award and recognized as expense, net of estimated forfeitures, over the vesting period. For awards that contain only a service vesting feature, compensation c |
Dispositions and Acquisitions
Dispositions and Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Dispositions and Acquisitions | Dispositions and Acquisitions Sale of Double Down Interactive LLC On June 1, 2017, the Company sold Double Down Interactive LLC ("DoubleDown") to DoubleU Games Co., Ltd. Details of the transaction are summarized in the table below. ($ thousands) For the year ended Cash proceeds 825,751 Less: Cash divested (1,963 ) Net cash proceeds 823,788 Net book value (772,440 ) Gain on sale 51,348 Selling costs (24,116 ) Gain on sale, net of selling costs 27,232 The $27.2 million gain on sale of DoubleDown, net of selling costs, is classified within transaction (income) expense, net on the consolidated statement of operations. Acquisition of IGT The acquisition of IGT was completed on April 7, 2015 (the “Acquisition Date”). IGT was a global gaming company specializing in the design, development, manufacturing and marketing of casino-style gaming equipment, systems technology and game content across multiple platforms — land-based, online real money and social gaming. The acquisition of IGT established the Company as the world’s leading end-to-end gaming company, uniquely positioned to capitalize on opportunities in global gaming markets. The Company combines best-in-class content, operator capabilities, and interactive solutions, joining IGT’s leading game library and manufacturing and operating capabilities with GTECH’s gaming operations, lottery technology and services. Total acquisition consideration of $4.545 billion consisted of $3.616 billion cash consideration and $0.929 billion equity consideration. Consistent with the terms of the transaction, equity consideration was determined based on the average of the volume-weighted average prices of GTECH common shares on the Italian Stock Exchange, converted to the U.S. dollar equivalent, for 10 randomly selected days within the period of 20 consecutive trading days ending on the second full trading day prior to the Acquisition Date. Under the terms of the transaction, IGT shareholders received 45.3 million common shares of the Parent, and IGT employees received 1.4 million restricted stock units. The Company utilized the closing stock price immediately prior to the merger and the number of shares issued to determine the fair value of the consideration. Equity consideration included the fair value of shares vested and outstanding immediately prior to the Acquisition Date of $917.3 million and the portion of outstanding restricted stock units deemed to have been earned as of the Acquisition Date of $11.6 million . The portion of outstanding restricted stock units deemed not to have been earned as of the Acquisition Date of $16.2 million were expensed over the remaining future vesting period. The transaction was accounted for as a business combination using the acquisition method of accounting. This method requires that the assets acquired and liabilities assumed be recognized at their fair values as of the Acquisition Date. In 2016, adjustments were made to finalize the fair value of tax assets and liabilities. The following table summarizes the final allocation of the consideration to the fair values of the assets acquired and liabilities assumed at the Acquisition Date. ($ thousands) Purchase Price Allocation: Cash consideration 3,616,410 Equity consideration 928,884 Total purchase price 4,545,294 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 374,995 Restricted cash 56,656 Trade and other receivables 237,488 Inventories 95,562 Other current assets 361,003 Systems, equipment and other assets related to contracts 126,524 Property, plant and equipment 336,044 Intangible assets 2,960,000 Other non-current assets 628,620 Deferred income tax assets 246,953 Accounts payable (75,814 ) Other current liabilities (379,968 ) Long-term debt, less current portion (1,937,942 ) Deferred income tax liabilities (1,069,833 ) Other non-current liabilities (360,335 ) 1,599,953 Goodwill 2,945,341 Goodwill recognized as a result of the acquisition is not deductible for tax purposes. The cash outflow associated with the IGT acquisition is summarized as follows: ($ thousands) Cash payment for IGT shares outstanding 3,572,968 Cash payment for IGT employee stock awards 43,442 3,616,410 Less cash acquired (374,995 ) Net cash outflow 3,241,415 The fair values of acquired intangible assets as of the Acquisition Date along with the weighted-average useful lives over which the finite-lived intangibles are being amortized on a straight-line basis (which approximates their economic use) are as follows: ($ thousands) Fair Value Weighted Customer relationships 1,715,000 14.8 Game library 360,000 2.5 Corporate trademarks 340,000 Indefinite Computer software 275,000 9.4 Developed technologies 180,000 3.8 Product trademarks 90,000 7.3 2,960,000 In 2017, the Company recorded a $714.0 million non-cash goodwill impairment loss with no income tax benefit, and in 2016 recorded an impairment loss of $30.0 million related to certain of the acquired corporate trademarks. The Company incurred $1.7 million and $49.4 million of legal, accounting and other professional fees and expenses in 2016 and 2015 , respectively, related to the IGT acquisition. These expenses are classified within transaction (income) expense, net on the consolidated statements of operations. The Company’s consolidated financial statements for the year ended December 31, 2015 include IGT’s results of operations from April 7, 2015 through December 31, 2015. Revenue and operating loss attributable to IGT during this period total $1.346 billion and $45.4 million , respectively. The $45.4 million operating loss includes $276.0 million of acquired intangible assets amortization, which are a direct result of the IGT acquisition. The following unaudited, pro forma financial information presents the combined results of operations as if the acquisition had been completed on January 1, 2014, the beginning of the comparable prior annual period. This pro forma information is provided for illustrative purposes only and is not necessarily indicative of the results that would have been obtained if the acquisition had occurred on the date assumed or that may occur in the future, and does not reflect synergies, integration costs, or other such costs or savings. ($ thousands) For the year ended December 31, 2015 Revenue 5,105,159 Net loss (61,946 ) This pro forma financial information is based on historical results of operations adjusted for: (i) amortization of the fair value of intangible assets acquired; (ii) interest expense reflecting the changes to the Company’s debt structure directly attributable to the acquisition; (iii) non-recurring transaction expenses and debt extinguishment costs directly attributable to the acquisition; and (iv) the associated tax impact of these pro forma adjustments at an average rate of 32.0% . The pro forma results for 2015 presented above exclude $49.4 million of pre-tax transaction expenses and $36.5 million of pre-tax debt extinguishment costs recognized on the consolidated statement of operations. |
Trade and Other Receivables, ne
Trade and Other Receivables, net | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Trade and Other Receivables, net | Trade and Other Receivables, net Trade and other receivables, net are recorded at cost. December 31, 2017 2016 Gross 991,177 1,006,121 Allowance for credit losses (53,323 ) (58,884 ) Net 937,854 947,237 The following table presents the activity in the allowance for credit losses related to trade receivables: December 31, ($ thousands) 2017 2016 2015 Balance at beginning of year (58,884 ) (76,137 ) (91,819 ) Provisions, net (12,255 ) (13,594 ) (18,883 ) Amounts written off as uncollectible 17,826 29,289 25,703 Foreign currency translation (5,885 ) 1,558 9,263 Other 5,875 — (401 ) Balance at end of year (53,323 ) (58,884 ) (76,137 ) The Company has two agreements with major European financial institutions to sell certain trade receivables related to the Italy segment on a non-recourse basis. These receivables have been derecognized from the Company’s consolidated balance sheet. The agreements have a three - and five -year duration, respectively, and are subject to early termination by either party. The aggregate amount of outstanding receivables is limited to a maximum amount of €300 million and €150 million for Scratch & Win and Commercial Services, respectively. At December 31, 2017 and 2016 , the following receivables had been sold: December 31, 2017 December 31, 2016 (in thousands) euro $ euro $ Scratch & Win 175,848 210,894 144,625 152,449 Commercial services 45,417 54,469 59,334 62,544 221,265 265,363 203,959 214,993 The Company also sold trade receivables on a non-recourse basis and derecognized $18.6 million and $19.5 million at December 31, 2017 and 2016 , respectively, primarily in the North America Gaming and Interactive segment. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost (under the first in, first out method) or net realizable value. Inventories primarily consist of gaming machines, lottery terminals, and lottery and gaming systems for sale. December 31, ($ thousands) 2017 2016 Raw materials 156,336 161,911 Work in progress 33,588 39,744 Finished goods 129,621 145,839 319,545 347,494 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other current assets December 31, ($ thousands) 2017 2016 Customer financing receivables, net 151,360 109,773 Other receivables 65,891 104,689 Prepaid royalties 59,596 65,375 Value added tax receivable 49,962 37,623 Prepaid expenses 30,977 36,838 Other 49,734 70,429 407,520 424,727 Other non- current assets December 31, ($ thousands) 2017 2016 Upfront license fees, net: Italian Scratch & Win 1,145,998 257,669 Italian Lotto 812,304 804,142 New Jersey 100,730 109,490 Indiana 14,642 16,038 2,073,674 1,187,339 Prepaid royalties 103,322 138,314 Customer financing receivables, net 74,898 53,962 Prepaid income taxes 72,176 14,309 Other 103,883 103,738 2,427,953 1,497,662 Upfront License Fees Italian Scratch & Win In December 2017, Lotterie Nazionali S.r.l., a majority-owned subsidiary of the Company, was awarded a nine -year contract extension for the Italian Scratch & Win concession (the "Italian Scratch & Win extension") that required an upfront license fee of €800 million ( $959.4 million at the December 31, 2017 exchange rate), of which €50 million ( $59.3 million ) was paid in 2017. The upfront license fees are being amortized as follows: Upfront License Fee License Term Amortization Start Date Italian Scratch & Win 9 years October 2010 Italian Scratch & Win extension 9 years October 2019 Italian Lotto 9 years December 2016 New Jersey 15 years, 9 months October 2013 Indiana 15 years July 2013 Customer Financing Receivables Customer financing receivables, net are recorded at cost. At December 31, 2017 and 2016 , $34.2 million and $29.2 million , respectively, of certain outstanding customer financing receivables were sold on a non-recourse basis. The allowance for customer financing receivables, net are as follows: December 31, 2017 Allowance for ($ thousands) Gross credit losses Net Current 167,985 (16,625 ) 151,360 Non-current 77,847 (2,949 ) 74,898 245,832 (19,574 ) 226,258 December 31, 2016 Allowance for ($ thousands) Gross credit losses Net Current 114,677 (4,904 ) 109,773 Non-current 56,914 (2,952 ) 53,962 171,591 (7,856 ) 163,735 The following table presents the activity in the allowance for credit losses related to customer financing receivables, net: December 31, ($ thousands) 2017 2016 2015 Balance at beginning of year (7,856 ) (3,888 ) — Provisions, net (5,236 ) (4,481 ) (3,706 ) Amounts written off as uncollectible — — 20 Foreign currency translation (159 ) 513 (59 ) Other (6,323 ) — (143 ) Balance at end of year (19,574 ) (7,856 ) (3,888 ) |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities Accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Under this guidance, the Company is required to classify certain assets and liabilities based on the following fair value hierarchy: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that can be accessed at the measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly; and Level 3: Unobservable inputs for the assets or liabilities. The guidance requires the use of observable market data if such data is available without undue cost and effort. Valuation methods and assumptions used to estimate fair value, when quoted market prices are not available, are subject to judgments and changes in these factors can materially affect fair value estimates. For financial assets and financial liabilities that are recognized at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash and investments, accounts receivable, other current assets, accounts payable, and other current liabilities approximate fair value due to relatively short periods to maturity. Financial assets and liabilities carried at fair value The following tables represent the fair value hierarchy for financial assets and liabilities measured at fair value at December 31, 2017 and 2016 : December 31, 2017 ($ thousands) Level 1 Level 2 Level 3 Total Fair Value Restricted Investments 57,465 — — 57,465 Derivative Assets: Foreign Currency Forward Contracts — 501 — 501 Interest Rate Swaps — 479 — 479 Call Option — — 2,638 2,638 Jackpot Investments 459 — — 459 Available-for-Sale Investments 11,991 — — 11,991 Contingent Consideration — — 7,755 7,755 Derivative Liabilities: Foreign Currency Forward Contracts — 4,399 — 4,399 Interest Rate Swaps — 14,953 — 14,953 December 31, 2016 ($ thousands) Level 1 Level 2 Level 3 Total Restricted Investments 46,718 — — 46,718 Derivative Assets: Foreign Currency Forward Contracts — 8,339 — 8,339 Interest Rate Swaps — 1,079 — 1,079 Jackpot Investments 4,184 — — 4,184 Available-for-Sale Investments 12,666 — — 12,666 Contingent Consideration — — 2,241 2,241 Derivative Liabilities: Foreign Currency Forward Contracts — 126 — 126 Interest Rate Swaps — 13,709 — 13,709 For the contingent consideration liability, a net gain was recognized for approximately $2.2 million within selling, general and administrative expense on the consolidated statement of operations for the year ended December 31, 2017 . Valuation Techniques and Balance Sheet Presentation Restricted investments are primarily composed of publicly-traded foreign government and corporate bonds and mutual funds, and were valued using quoted market prices. Restricted investments are presented in restricted cash and investments in the consolidated balance sheets. Foreign currency forward contracts were calculated by reference to current forward exchange rates for contracts with similar maturity profiles. Foreign currency forward contracts are presented as other current assets and other current liabilities in the consolidated balance sheets. Interest rate swaps were calculated by discounting future cash flows using LIBOR rates with an appropriate adjustment for credit risk. Interest rate swaps are presented as other current assets and other non-current liabilities in the consolidated balance sheets. The call option contract was valued based upon a free cash flow forecast and is presented as other non-current assets in the consolidated balance sheets. Jackpot investments were valued using quoted market prices. Jackpot investments are presented as other current and other non-current assets in the consolidated balance sheets. Available-for-sale investments were valued using quoted market prices. Available-for-sale investments are presented as other non-current assets in the consolidated balance sheets. Contingent consideration was valued using a multiple of earnings before interest, taxes, depreciation and amortization ("EBITDA") and is presented as other current liabilities in the consolidated balance sheets. Assets and liabilities not carried at fair value The following tables represent the fair value hierarchy for assets and liabilities not measured at fair value at December 31, 2017 and 2016 : December 31, 2017 ($ thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Unrealized Realized Loss Customer financing receivables, net 226,258 — — 225,718 225,718 (540 ) — Available-for-sale investments 12,409 — — 12,409 12,409 — — Goodwill 1,439,867 — — 1,439,867 1,439,867 — (714,000 ) Jackpot liabilities 275,626 — — 268,581 268,581 7,045 — Debt 8,391,647 — 8,974,126 — 8,974,126 (582,479 ) — December 31, 2016 ($ thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Unrealized Customer financing receivables, net 163,735 — — 165,241 165,241 1,506 Available-for-sale investments 14,838 — — 14,838 14,838 — Jackpot liabilities 299,042 — — 291,026 291,026 8,016 Debt 7,872,285 — 8,415,890 — 8,415,890 (543,605 ) Valuation Techniques and Balance Sheet Presentation Customer financing receivables, net are recorded and valued based on expected payments and market interest rates (ranging from 4.30% to 10.05% ) relative to the credit risk of each customer region. Credit risk is determined on a number of factors, including customer size, type, financial condition, historical collection experience, account aging, and credit ratings derived from credit reporting agencies and other industry trade reports. Contracts are typically secured by the underlying assets sold and notes are secured by the developed property and/or other assets. The higher risk rate categories include most of the Company’s development financing loans in new markets and customers in regions with a history of currency or economic instability, such as Latin America. Customer financing receivables, net are presented as other current and other non-current assets in the consolidated balance sheets. Available-for-sale investments are carried at cost (which approximates fair value) and are presented as other non-current assets in the consolidated balance sheets. During the third quarter of 2017, the Company recorded a $714.0 million non-cash impairment charge with no income tax benefit to reduce the carrying value of the North America Gaming and Interactive reporting unit to its implied fair value. The Company's assessment of goodwill for impairment includes various inputs, such as cash flow projections. In calculating the fair value of the North America Gaming and Interactive reporting unit using the income approach, the Company used projections of revenues, operating costs and capital expenditures. The projected cash flows 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, the Company classifies the North America Gaming and Interactive reporting unit's goodwill measured at fair value on a non-recurring basis within Level 3 of the fair value hierarchy. Jackpot liabilities were primarily valued using discounted cash flows, incorporating expected future payment timing, estimated funding rates based on the treasury yield curve, and nonperformance credit risk. Expected annuity payments over one to 25 years (average 10 years ) were discounted using the 10 -year treasury yield curve rate ( 2.40% ) for the estimated funding rate and the 10 -year credit default swap rate ( 1.87% ) for nonperformance risk. The present value (carrying value) of the expected lump sum payments were discounted using the 1 -year treasury yield curve rate ( 1.76% ) with the 1 -year credit default swap rate ( 0.17% ) for the current amounts and the 2 -year treasury yield curve rate ( 1.89% ) with the 2 -year credit default swap rate ( 0.28% ) for non-current amounts. Significant increases (decreases) in any of these inputs in isolation would result in a lower (higher) fair value measurement. Generally, changes in the estimated funding rates do not correlate with changes in non-performance credit risk. Jackpot liabilities are presented as other current and other non-current liabilities in the consolidated balance sheets. Debt is categorized within Level 2 of the fair value hierarchy. Senior Secured Notes are valued using quoted market prices or dealer quotes for the identical financial instrument when traded as an asset in markets that are not active. Revolving credit facilities and term loans with variable interest rates are valued using current interest rates, excluding the effect of debt issuance costs. Carrying values in the table exclude swap adjustments. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company uses derivatives to manage the impact of foreign currency exchange and interest rate changes on earnings and cash flows. The Company does not enter into derivatives for speculative purposes. Derivatives are recognized as either assets or liabilities in the consolidated balance sheet at fair value. The accounting for changes in the fair value of a derivative depends on the nature of the hedge and the hedge effectiveness. The Company’s policy is to negotiate the terms of the derivative to match the terms of the hedged item to maximize hedge effectiveness. Derivative gains and losses are reported in the consolidated statements of cash flows consistent with the classification of cash flows from the underlying hedged items. The Company uses foreign currency forward and option contracts to hedge its exposure on certain forecasted foreign currency revenue and expense transactions. The terms of the contracts are typically matched with the forecasted foreign currency transactions to be derived from operations up to a period of 12 months. These derivatives are designated as cash flow hedges. All outstanding cash flow hedges are recognized in the consolidated balance sheets at fair value with the effective portion of the gain or loss recorded in accumulated other comprehensive income (loss). When the underlying hedged transaction is recognized, the effective portion of the gain or loss on the derivative is reclassified from accumulated other comprehensive income (loss) to the consolidated statement of operations. Any ineffectiveness is recognized immediately into earnings. The Company also uses foreign currency forward and option contracts to offset its exposure to the change in value of certain foreign currency denominated monetary assets and liabilities. Because these derivatives hedge existing exposures that are denominated in foreign currencies, the contracts do not qualify for hedge accounting. Accordingly, these outstanding non-designated derivatives are recognized in the consolidated balance sheet at fair value with the changes in fair value recorded in foreign exchange gain (loss), net, in the consolidated statements of operations. These derivative contracts mature in less than one year . The Company uses interest rate derivatives designated as fair value hedges to manage the exposure to interest rate movements and to reduce borrowing costs by converting fixed-rate debt into floating-rate debt. Under these derivatives, the Company agrees to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to agreed-upon notional principal amounts. Changes in the fair value of the derivative are recorded in other income (expense), net and are offset by changes in the fair value of the underlying debt instrument due to changes in the benchmark interest rate. The cash flows from these contracts are reported as operating activities in the consolidated statements of cash flows. The gains (losses) from expired interest rate swaps ("swaps") are recorded in long-term debt, increasing or decreasing the outstanding balances of the debt, and amortized as a reduction or addition of interest expense over the remaining life of the related debt. The cash flows from the termination of the swaps are reported as operating activities in the consolidated statements of cash flows. Cash flow hedges The gross notional amount of foreign currency forward contracts, designated as cash flow hedges, outstanding at December 31, 2017 and 2016 was $100.8 million and $120.9 million , respectively. The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period in which the hedged forecasted transaction affects earnings. Refer to Note 18, Shareholders' Equity for more details on the reclassification of amounts from accumulated other comprehensive income into earnings. The ineffective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recognized directly in earnings. The amount retained in other comprehensive income at December 31, 2017 is expected to mature and affect the consolidated statement of operations in 2018 . Fair value hedges In September 2015, the Company executed $625 million notional amount of swaps that effectively convert $625 million of the 6.250% Senior Secured Notes due 2022 from fixed interest rate debt to variable rate debt. Under the terms of these swaps, the Company is required to make variable rate interest payments based on six-month LIBOR plus a fixed spread, ranging between 5.90% and 6.02% at December 31, 2017 , and will receive fixed rate interest payments from its counterparties based on a fixed rate of 6.25% . The LIBOR rate resets semiannually on February 15 and August 15. Settlement of the net amount of interest receivable or payable under the swaps occurs semiannually on February 15 and August 15. The swaps expire in February 2022. During 2015, the Company held swaps exchanging fixed rate interest payments for variable rate interest payments on a portion of the 7.500% Senior Secured Notes due 2019 and a portion of the 5.500% Senior Secured Notes due 2020. These swaps were canceled in 2015 and the Company received cash proceeds of $67.8 million from the swap counterparties upon settlement. Derivatives not designated as hedging instruments The notional amount of foreign currency forward contracts, not designated as hedging instruments, outstanding at December 31, 2017 and 2016 was $460.6 million and $364.5 million , respectively. Presentation of Derivative Amounts All derivatives are recorded gross, except netting of foreign exchange contracts and counterparty netting of swaps’ interest receivable and payable, as applicable. Balance Sheet Location and Fair Value At December 31, 2017 2016 ($ thousands) Assets Liabilities Assets Liabilities Fair Value Hedges: Interest Rate Swaps Non-current financial liabilities — 14,953 — 13,709 Long-term debt — (15,088 ) — (9,123 ) Gross Derivatives — (135 ) — 4,586 Non-Designated Hedges: Foreign Currency Contracts, net Current financial assets 501 — 4,965 — Current financial liabilities — 2,037 — 126 Cash Flow Hedges: Foreign Currency Contracts, net Current financial assets — — 3,374 — Current financial liabilities — 2,362 — — Counterparty Netting: Swap Interest Current financial assets: Interest due from counterparty 479 — 1,079 — Net Derivatives 980 4,264 9,418 4,712 Income Statement Location and Income (Expense) For the year ended December 31, ($ thousands) 2017 2016 2015 Fair Value Hedges: Interest Rate Swaps Effectiveness - Other (expense) income, net (605 ) (540 ) 1,646 Ineffectiveness - Other (expense) income, net 1,032 (1,280 ) 232 Non-Designated Hedges: Foreign Currency Contracts, net Realized (losses) gains - Foreign exchange (loss) gain, net (21,870 ) 16,873 (16,651 ) Cash Flow Hedges: Foreign Currency Contracts, net Realized (losses) gains - Service revenue (1,744 ) 5,218 244 |
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, 2017 | |
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 The Company has 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 the Company’s operating contracts and facilities management contracts (collectively, the "Contracts") and are principally composed of lottery and gaming assets. The estimated useful lives for Systems & Equipment depends on the type of cost as follows: • Lottery hard costs (such as terminals, mainframe computers, communications equipment); • Lottery soft costs (such as software development costs represented by internal personnel costs); and • Commercial gaming machines. Lottery hard and soft costs are typically depreciated over the base term of the Contracts the asset relates to, generally not to exceed 10 years , and commercial gaming machines over three to five years . PPE are assets the Company uses internally, primarily in manufacturing, selling, general and administration, research and development, and commercial service applications not associated with contracts. Buildings are depreciated over 40 years , furniture and equipment over five to ten years , and leasehold improvements are amortized over the shorter of the lease term or estimated useful life. Systems & Equipment and PPE, net consist of the following: Systems & Equipment, net PPE, net December 31, December 31, ($ thousands) 2017 2016 2017 2016 Land 547 574 2,542 18,787 Buildings 151,962 121,572 70,389 219,416 Terminals and systems 2,969,848 2,652,742 — — Furniture and equipment 197,610 172,666 241,632 234,458 Contracts in progress 149,245 169,367 — — Construction in progress — — 20,603 36,353 3,469,212 3,116,921 335,166 509,014 Accumulated depreciation (2,035,018 ) (1,917,247 ) (141,443 ) (151,173 ) 1,434,194 1,199,674 193,723 357,841 Borrowing costs of $4.2 million and $1.5 million were capitalized to Systems & Equipment in 2017 and 2016 , respectively. The rate used to determine the amount of borrowing costs eligible for capitalization was approximately 5.8% and 5.6% for 2017 and 2016 , respectively, which was the effective interest rate of all borrowings. Impairment losses related to Systems & Equipment of $1.2 million , $7.7 million and $2.8 million were recorded in 2017 , 2016 and 2015 , respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill, net | |
Goodwill | Goodwill Changes in the carrying amount of goodwill consist of the following: ($ thousands) North America Gaming and Interactive North America Lottery International Italy Total Balance at December 31, 2015 2,626,282 1,217,155 1,535,083 1,451,979 6,830,499 Acquisitions (402 ) 4,374 (64 ) 3,734 7,642 Foreign currency translation — — (7,470 ) (20,381 ) (27,851 ) Other — — — (278 ) (278 ) Balance at December 31, 2016 2,625,880 1,221,529 1,527,549 1,435,054 6,810,012 Impairment loss (714,000 ) — — — (714,000 ) Disposal (473,000 ) — — — (473,000 ) Acquisitions — — 14,890 7,303 22,193 Foreign currency translation — — 6,786 70,949 77,735 Other 987 60 156 (328 ) 875 Balance at December 31, 2017 1,439,867 1,221,589 1,549,381 1,512,978 5,723,815 Balance at December 31, 2016 Cost 2,625,880 1,225,622 1,639,282 1,436,635 6,927,419 Accumulated impairment loss — (4,093 ) (111,733 ) (1,581 ) (117,407 ) 2,625,880 1,221,529 1,527,549 1,435,054 6,810,012 Balance at December 31, 2017 Cost 2,153,867 1,225,682 1,674,381 1,514,777 6,568,707 Accumulated impairment loss (714,000 ) (4,093 ) (125,000 ) (1,799 ) (844,892 ) 1,439,867 1,221,589 1,549,381 1,512,978 5,723,815 The Company assesses its reporting units annually and has four reporting units (which are equivalent to its segments) at December 31, 2017 as follows: • North America Gaming and Interactive; • North America Lottery; • International; and • Italy. Impairment Loss The Company performed an interim goodwill impairment test at September 30, 2017 for the North America Gaming and Interactive reporting unit that resulted in a $714.0 million non-cash goodwill impairment loss with no income tax benefit to reduce the carrying amount of the North America Gaming and Interactive reporting unit to fair value. The impairment loss had no impact on the Company's operations, cash flows, ability to service debt, compliance with financial covenants, or underlying liquidity. |
Intangible Assets, net
Intangible Assets, net | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets, net | Intangible Assets, net Intangible assets at December 31, 2017 and 2016 consist of: December 31, 2017 ($ thousands) Gross Carrying Accumulated Net Book Weighted Average Subject to amortization Customer relationships 2,434,051 956,586 1,477,465 15.2 Computer software and game library 947,207 710,725 236,482 5.6 Trademarks 186,218 47,053 139,165 14.1 Concessions and licenses 300,207 204,533 95,674 10.1 Developed technologies 220,213 155,870 64,343 5.4 Networks 18,806 13,571 5,235 7.0 Sports and horse racing betting rights 132,521 128,888 3,633 6.5 Other 8,660 4,110 4,550 16.1 4,247,883 2,221,336 2,026,547 Not subject to amortization Trademarks 246,913 — 246,913 Total intangible assets, excluding goodwill 4,494,796 2,221,336 2,273,460 December 31, 2016 ($ thousands) Gross Carrying Accumulated Net Book Weighted Average Subject to amortization Customer relationships 2,590,225 809,669 1,780,556 14.8 Computer software and game library 946,150 550,506 395,644 5.7 Trademarks 200,107 35,923 164,184 13.4 Developed technologies 234,420 128,200 106,220 5.4 Concessions and licenses 255,299 153,277 102,022 10.3 Networks 15,689 11,225 4,464 7.0 Sports and horse racing betting rights 115,991 112,060 3,931 6.5 Other 8,654 3,557 5,097 16.1 4,366,535 1,804,417 2,562,118 Not subject to amortization Trademarks 311,913 — 311,913 Total intangible assets, excluding goodwill 4,678,448 1,804,417 2,874,031 In connection with the June 2017 sale of DoubleDown, the Company recorded a $277.3 million reduction in net book value of intangible assets (principally customer relationships and trademarks) related to the sale. The Company recorded impairment losses of $30.0 million in its North America Gaming and Interactive segment in 2016 for certain indefinite lived trademarks relating to the forecasted slowing of growth in the social gaming market and $9.7 million in its International segment in 2015 for certain indefinite lived trademarks. The Company used the Relief from Royalty method in determining the amount of the impairment losses. Intangible asset amortization expense of $401.5 million , $492.1 million and $410.4 million (which includes computer software amortization expense of $31.4 million , $38.4 million and $34.0 million ) was recorded in 2017 , 2016 and 2015 , respectively. Amortization expense on intangible assets for the next five years is expected to be as follows ($ thousands): Year Amount 2018 263,614 2019 250,267 2020 219,808 2021 189,583 2022 166,136 Total 1,089,408 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other current liabilities December 31, ($ thousands) 2017 2016 Payable to Italian regulator 899,475 179,197 Accrued interest payable 179,230 165,290 Employee compensation 146,891 158,236 Taxes other than income taxes 128,703 123,267 Accrued expenses 121,181 127,092 Current financial liabilities 113,217 108,915 Jackpot liabilities 84,250 95,574 Deferred revenue 48,222 80,528 Advance payments from customers 28,874 25,473 Other 30,832 33,473 1,780,875 1,097,045 Payable to Italian Regulator At December 31, 2017 , the Company owed €750 million ( $899.5 million at the December 31, 2017 exchange rate) to Agenzia delle Dogane e Dei Monopoli, the governmental authority responsible for regulating and supervising gaming in Italy ("ADM" or the "Italian regulator") related to the Italian Scratch & Win extension, which is expected to be paid in 2018. At December 31, 2016 , the Company owed the Italian regulator €170 million ( $179.2 million at the December 31, 2016 exchange rate) related to the Italian Gioco del Lotto service concession (the "Lotto Concession"). Other non-current liabilities December 31, ($ thousands) 2017 2016 Jackpot liabilities 191,376 203,468 Deferred revenue 60,831 66,220 Finance leases 60,766 62,142 Reserve for uncertain tax positions 34,447 14,733 Royalties payable 32,997 37,681 Italian staff severance fund 12,577 11,454 Other 53,119 48,858 446,113 444,556 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt December 31, ($ thousands) 2017 2016 6.250% Senior Secured Notes due 2022 1,470,075 1,472,150 6.500% Senior Secured Notes due 2025 1,086,913 1,085,537 4.750% Senior Secured Notes due 2023 1,008,601 884,917 4.125% Senior Secured Notes due 2020 833,655 730,465 5.625% Senior Secured Notes due 2020 595,767 593,954 4.750% Senior Secured Notes due 2020 585,171 509,050 7.500% Senior Secured Notes due 2019 148,231 521,894 5.500% Senior Secured Notes due 2020 125,709 126,294 5.350% Senior Secured Notes due 2023 61,082 61,187 6.625% Senior Secured Notes due 2018 — 521,556 Senior Secured Notes, long-term 5,915,204 6,507,004 Term Loan Facility due 2023 1,785,361 — Revolving Credit Facilities due 2021 76,880 516,529 Term Loan Facilities due 2019 — 839,552 Long-term debt, less current portion 7,777,445 7,863,085 6.625% Senior Secured Notes due 2018 599,114 — Other — 77 Current portion of long-term debt 599,114 77 Total Debt 8,376,559 7,863,162 The principal balance of each debt obligation and a reconciliation to the consolidated balance sheet follows: December 31, 2017 ($ thousands) Principal Debt issuance cost, net Premium Swap Total 6.250% Senior Secured Notes due 2022 1,500,000 (14,808 ) — (15,117 ) 1,470,075 6.500% Senior Secured Notes due 2025 1,100,000 (13,087 ) — — 1,086,913 4.750% Senior Secured Notes due 2023 1,019,405 (10,804 ) — — 1,008,601 4.125% Senior Secured Notes due 2020 839,510 (5,855 ) — — 833,655 5.625% Senior Secured Notes due 2020 600,000 (4,233 ) — — 595,767 4.750% Senior Secured Notes due 2020 599,650 (14,479 ) — — 585,171 7.500% Senior Secured Notes due 2019 144,303 — 3,708 220 148,231 5.500% Senior Secured Notes due 2020 124,143 — 1,757 (191 ) 125,709 5.350% Senior Secured Notes due 2023 60,567 — 515 — 61,082 Senior Secured Notes, long-term 5,987,578 (63,266 ) 5,980 (15,088 ) 5,915,204 Term Loan Facility due 2023 1,798,950 (13,589 ) — — 1,785,361 Revolving Credit Facilities due 2021 95,000 (18,120 ) — — 76,880 6.625% Senior Secured Notes due 2018 599,650 (536 ) — — 599,114 Total Debt 8,481,178 (95,511 ) 5,980 (15,088 ) 8,376,559 December 31, 2016 ($ thousands) Principal Debt issuance Premium Swap Total 6.250% Senior Secured Notes due 2022 1,500,000 (17,804 ) — (10,046 ) 1,472,150 6.500% Senior Secured Notes due 2025 1,100,000 (14,463 ) — — 1,085,537 4.750% Senior Secured Notes due 2023 895,985 (11,068 ) — — 884,917 4.125% Senior Secured Notes due 2020 737,870 (7,405 ) — — 730,465 5.625% Senior Secured Notes due 2020 600,000 (6,046 ) — — 593,954 4.750% Senior Secured Notes due 2020 527,050 (18,000 ) — — 509,050 7.500% Senior Secured Notes due 2019 500,000 (29 ) 20,733 1,190 521,894 5.500% Senior Secured Notes due 2020 124,143 — 2,418 (267 ) 126,294 5.350% Senior Secured Notes due 2023 60,567 — 620 — 61,187 6.625% Senior Secured Notes due 2018 527,050 (5,494 ) — — 521,556 Senior Secured Notes, long-term 6,572,665 (80,309 ) 23,771 (9,123 ) 6,507,004 Term Loan Facilities due 2019 843,280 (3,728 ) — — 839,552 Revolving Credit Facilities due 2021 540,820 (24,291 ) — — 516,529 Other 77 — — — 77 Total Debt 7,956,842 (108,328 ) 23,771 (9,123 ) 7,863,162 Principal payments for each debt obligation for the next five years and thereafter are as follows: Calendar year ($ thousands) 2018 2019 2020 2021 2022 2023 and Total 6.250% Senior Secured Notes due 2022 — — — — 1,500,000 — 1,500,000 6.500% Senior Secured Notes due 2025 — — — — — 1,100,000 1,100,000 4.750% Senior Secured Notes due 2023 — — — — — 1,019,405 1,019,405 4.125% Senior Secured Notes due 2020 — — 839,510 — — — 839,510 5.625% Senior Secured Notes due 2020 — — 600,000 — — — 600,000 4.750% Senior Secured Notes due 2020 — — 599,650 — — — 599,650 7.500% Senior Secured Notes due 2019 — 144,303 — — — — 144,303 5.500% Senior Secured Notes due 2020 — — 124,143 — — — 124,143 5.350% Senior Secured Notes due 2023 — — — — — 60,567 60,567 Senior Secured Notes, long-term — 144,303 2,163,303 — 1,500,000 2,179,972 5,987,578 Term Loan Facility due 2023 — — 383,776 383,776 383,776 647,622 1,798,950 Revolving Credit Facilities due 2021 — — — 95,000 — — 95,000 6.625% Senior Secured Notes due 2018 599,650 — — — — — 599,650 Total Principal Payments 599,650 144,303 2,547,079 478,776 1,883,776 2,827,594 8,481,178 Senior Secured Notes The key terms of the Company's senior secured notes (the "Notes"), which are rated Ba2 and BB+ by Moody’s Investor Service (“Moody’s”) and Standard & Poor’s Ratings Services (“S&P”), respectively, are as follows: Description Principal (thousands) Effective Issuer Guarantors Collateral Redemption Interest payments 6.250% Senior Secured Notes due 2022 $1,500,000 6.52% Parent * † + Semi-annually in arrears 6.500% Senior Secured Notes due 2025 $1,100,000 6.71% Parent * † + Semi-annually in arrears 4.750% Senior Secured Notes due 2023 €850,000 4.98% Parent * † + Semi-annually in arrears 4.125% Senior Secured Notes due 2020 €700,000 4.47% Parent * † + Semi-annually in arrears 5.625% Senior Secured Notes due 2020 $600,000 5.98% Parent * † + Semi-annually in arrears 4.750% Senior Secured Notes due 2020 1 €500,000 6.00% Parent * † ++ Annually in arrears 7.500% Senior Secured Notes due 2019 $144,303 5.67% IGT ** †† +++ Semi-annually in arrears 5.500% Senior Secured Notes due 2020 $124,143 4.88% IGT ** †† +++ Semi-annually in arrears 5.350% Senior Secured Notes due 2023 $60,567 5.47% IGT ** †† +++ Semi-annually in arrears 6.625% Senior Secured Notes due 2018 1 €500,000 7.74% Parent * † ++ 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 . + The Parent may redeem in whole or in part at any time prior to (1) the date which is three months prior to maturity with respect to the notes which are due in 2020 and (2) the date which is six months prior to maturity with respect to the notes which are due in 2022, 2023 and 2025 at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. After such dates, 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 these notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. ++ The Parent may redeem in whole but not in part at the greater of (1) 100% of their principal amount together with accrued and unpaid interest, or (2) at an amount specified in the terms and conditions of these notes. 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 redeem in whole or in part at 100% of their principal amount together with accrued and unpaid interest. +++ IGT may redeem in whole but not in part at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. Upon the occurrence of certain events, IGT will be required to offer to repurchase all of these notes at a price equal to 100% of their principal amount together with accrued and unpaid interest. 1 Subject to a 1.25% per annum decrease in the event of an upgrade in ratings by Moody’s and S&P. The Notes contain customary covenants and events of default. At December 31, 2017 , the issuers were in compliance with all covenants. On June 12, 2017, the Company offered to purchase any and all of the $500.0 million 7.500% Senior Secured Notes due 2019 and on June 21, 2017 the Company purchased $355.7 million of these notes for total consideration, excluding interest, of $393.5 million . The Company recorded a $25.7 million loss on early extinguishment of debt in connection with the purchase, which is classified within other expense, net, on the consolidated statement of operations for the year ended December 31, 2017 . Term Loan Facility On July 25, 2017, the Parent entered into 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”). The Parent used the proceeds from the Term Loan Facility to: • prepay the €800 million Term Loan Facilities due 2019 in the third quarter of 2017; • redeem the €500 million 6.625% Senior Secured Notes due 2018 when they matured on February 2, 2018; and • prepay €160 million under the Revolving Credit Facilities due 2021 in the fourth quarter of 2017. The Parent used the remaining €40 million for general corporate purposes. The Parent must repay the Term Loan Facility in four installments, as detailed below: Due Date Amount (€ thousands) January 25, 2020 320,000 January 25, 2021 320,000 January 25, 2022 320,000 January 25, 2023 540,000 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 the Company’s long-term ratings by Moody’s and S&P. At December 31, 2017 , the effective interest rate on the Term Loan Facility was 2.05% . 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, 2017 , the Parent was in compliance with all covenants. Revolving Credit Facilities The senior facilities agreement (the "RCF Senior Facilities Agreement") provides for the following multi-currency revolving credit facilities (the "Revolving Credit Facilities"): Maximum Amount Available (thousands) Facility Borrowers $1,200,000 Revolving Credit Facility A Parent, IGT and IGT Global Solutions Corporation €725,000 Revolving Credit Facility B Parent and Lottomatica Holding S.r.l. On July 31, 2017, the Company voluntarily reduced the Revolving Credit Facility A commitment from $1.8 billion to $1.2 billion and the Revolving Credit Facility B commitment from €1.05 billion to €725 million . 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, 2017 and 2016 , the effective interest rate on the Revolving Credit Facilities was 3.48% and 2.42% , respectively. The RCF Senior Facilities Agreement provides that the following fees (which are recorded as interest expense) 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 0.725% at December 31, 2017 . • Utilization fees - payable on the aggregate drawn amount of the Revolving Credit Facilities at a rate depending on the percentage of the Revolving Credit Facilities utilized. The applicable rate was 0.15% at December 31, 2017 . 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, 2017 and 2016 , the Company’s available liquidity under the Revolving Credit Facilities was $1.974 billion and $2.367 billion , respectively. The RCF Senior Facilities Agreement contains customary covenants (including maintaining a minimum ratio of EBITDA to net interest costs and a maximum ratio of total net debt to EBITDA) and events of default. At December 31, 2017 , the borrowers were in compliance with all covenants. Other Credit Facilities The Parent and certain of its subsidiaries may borrow under senior unsecured uncommitted demand credit facilities made available by several financial institutions. At December 31, 2017 and 2016 , there were no borrowings under these facilities. Letters of Credit The Parent and certain of its subsidiaries may obtain letters of credit under the Revolving Credit Facilities and under senior unsecured uncommitted letter of credit facilities. The letters of credit secure various obligations, including obligations arising under customer contracts and real estate leases. The following table summarizes the letters of credit outstanding at December 31, 2017 and 2016 and the weighted average annual cost of such letters of credit: Letters of Credit Outstanding ($ thousands) Not under the Revolving Credit Facilities Under the Revolving Credit Facilities Total Weighted Average Annual Cost December 31, 2017 510,962 — 510,962 1.02 % December 31, 2016 827,850 — 827,850 0.94 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the President of the United States signed into law the Tax Act which has resulted in significant changes to the U.S. corporate income tax system. The Tax Act includes a federal statutory rate reduction from 35% to 21%, the elimination or reduction of certain domestic deductions and credits and further limitations on the deductibility of interest expense and executive compensation, and imposition of a territorial tax system with a one-time repatriation tax on deemed repatriated earnings of foreign subsidiaries (“Transition Toll Tax”) effective in 2017. The Tax Act also includes new tax provisions that potentially impact certain foreign income, expenses and credits, such as the global intangible low-taxed income (“GILTI”), the base-erosion and anti-abuse tax (“BEAT”), and the foreign derived intangible income ("FDII"). These provisions are effective beginning in 2018. ASC 740 requires companies to recognize the effect of the tax law changes in the period of enactment. However, the SEC staff issued SAB 118 which allows a company to record provisional amounts when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change as a result of the Tax Act. The measurement period ends when the company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year from the enactment date. The Company has recognized the provisional tax impacts related to its Transition Toll Tax and the revaluation of deferred tax assets and liabilities and included these amounts in its consolidated financial statements for the year ended December 31, 2017. Transition Toll Tax The 2017 Tax Act eliminates the deferral of U.S. income tax on historical unrepatriated earnings by imposing the Transition Toll Tax, which is a mandatory deemed repatriation tax on undistributed foreign earnings. The Transition Toll Tax is assessed on the U.S. shareholder's share of the foreign corporation's accumulated foreign earnings that have not been previously taxed by the U.S. Earnings in the form of deemed cash and cash equivalents will be taxed at a rate of 15.5% and all other earnings will be taxed at a rate of 8.0% . As of December 31, 2017, the Company has accrued liabilities of $60.5 million under the Transition Toll Tax, of which $4.8 million is expected to be paid within one year. The Transition Toll Tax will be paid over an eight-year period starting in 2018, and will not accrue interest. Remeasurement of Deferred Tax Assets and Liabilities The Company's deferred tax assets and liabilities are measured at the enacted tax rate expected to apply when these temporary differences are expected to be realized or settled. As the Company's deferred tax liabilities exceed the balance of the deferred tax assets at the date of enactment, the Company has recorded an income tax benefit of $174.7 million , reflecting the decrease in the U.S. corporate income tax rate. Status of the Company's Assessment The Company's preliminary estimate of the Transition Toll Tax, the remeasurement of the deferred tax assets and liabilities and GILTI is subject to the finalization of management's analysis of certain matters and changes to certain estimates and amounts related to the earnings and profits of certain subsidiaries and the filing of the Company's tax returns. U.S. Treasury regulations, administrative interpretations or court decisions interpreting the Tax Act may require further adjustments and changes in the Company's estimates. The final determination of the Transition Toll Tax and the remeasurement of the Company's deferred tax assets and liabilities will be completed as additional information becomes available, but no later than one year from the enactment of the Tax Act. For the GILTI provisions of the Tax Act, a provisional estimate could not be made as the Company has not yet completed its assessment or elected an accounting policy to either recognize deferred taxes for basis differences expected to reverse as GILTI or to record GILTI as period costs if and when incurred. The components of (loss) income before the provision for income taxes, determined by tax jurisdiction, are as follows: For the year ended December 31, ($ thousands) 2017 2016 2015 Italy 479,851 578,221 419,116 United States (1,173,601 ) (355,451 ) (379,425 ) United Kingdom (408,595 ) 87,269 (150,475 ) All other 125,420 13,374 93,753 (976,925 ) 323,413 (17,031 ) The (benefit from) provision for income taxes consists of: For the year ended December 31, ($ thousands) 2017 2016 2015 Current: Italy 131,155 192,712 168,915 United States 80,140 (16,982 ) (24,434 ) United Kingdom 733 711 (5,097 ) All other 54,823 36,414 48,753 266,851 212,855 188,137 Deferred: Italy 865 (5,837 ) 1,660 United States (175,539 ) (109,139 ) (121,032 ) United Kingdom 4,366 19,232 (16,242 ) All other (125,957 ) (57,905 ) (13,627 ) (296,265 ) (153,649 ) (149,241 ) (29,414 ) 59,206 38,896 Income taxes paid (net of refunds) were $296.4 million , $183.3 million and $199.2 million in 2017 , 2016 and 2015 , respectively. The Parent is tax resident in the United Kingdom. A reconciliation of the provision for income taxes, with the amount computed by applying the weighted average rate of the United Kingdom statutory main corporation tax rates enacted in each of the Parent’s calendar year reporting periods ( 19.25% in 2017 , 20.00% in 2016 and 20.25% in 2015 ) to (loss) income before the provision for income taxes is as follows: For the year ended December 31, ($ thousands) 2017 2016 2015 (Loss) income before provision for income taxes (976,925 ) 323,413 (17,031 ) United Kingdom statutory tax rate 19.25 % 20.00 % 20.25 % Statutory tax (benefit) expense (188,058 ) 64,682 (3,449 ) Tax Impact of 2017 Tax Act (114,219 ) — — Foreign tax and statutory rate differential (71,050 ) (17,013 ) (48,407 ) Italian allowance for corporate equity (11,761 ) (9,243 ) (6,929 ) Research and development tax credit (5,052 ) (4,980 ) (4,393 ) Tax impact of tax law and rate changes excluding the Tax Act (2,463 ) (8,422 ) (4,746 ) Non-controlling interest (2,205 ) (3,605 ) 8,565 Provision to return adjustments (1,334 ) (6,705 ) (1,434 ) Nondeductible expenses 1,204 2,659 30,244 Tax cost of tax dividends 3,041 4,619 12,888 Foreign withholding and state taxes on unremitted earnings 9,290 — — Foreign tax expense, net of federal benefit 14,500 3,457 9,003 Change in unrecognized tax benefits 20,624 (10,914 ) (15,593 ) IRAP and other state taxes 33,484 36,754 29,697 Change in valuation allowances 58,672 3,610 7,495 Capital gain taxes on sale of DoubleDown 94,303 — — Nondeductible goodwill impairment 137,445 — — Italian tax litigation settlement — 15,256 — Non-taxable gains on investments — (5,880 ) — Italian reorganization tax — — 13,405 Other (5,835 ) (5,069 ) 12,550 (29,414 ) 59,206 38,896 Effective tax rate 3.0 % 18.3 % (228.4 )% The Company’s effective income tax rate was 3.0% in 2017 as compared to 18.3% in 2016. The principal drivers of the change were capital gains taxes incurred on the June 2017 sale of DoubleDown, a net increase in valuation allowances in U.K. and foreign jurisdictions, and impairment loss incurred with no associated tax benefit, partially offset by a favorable net tax benefit recorded related to the provisions of the Tax Act. The Company’s effective income tax rate was 18.3% in 2016, as compared to (228.4)% in 2015 . The principal drivers of the change were one time non-deductible costs associated with the IGT acquisition in 2015, the non-recurring costs associated with the migration of the Parent company from Italy to the United Kingdom in 2015 and a reduction in operating losses in 2016 without tax benefits in certain foreign jurisdictions. The significant components reflected within the tax rate reconciliation labeled “Foreign tax and statutory rate differential” includes the effects of foreign subsidiaries’ earnings taxed at rates other than the U.K. statutory rate. On December 18, 2015, the Consolidated Appropriations Act 2016 was signed into law in the United States. Some of the provisions were retroactive to January 1, 2015, including the permanent extension of the U.S. research and development tax credit. The effective tax rate reflects the Company’s estimated 2016 and 2015 U.S. research and development tax credit. The U.K. 2015 Finance Bill received Royal Assent in the fourth quarter of 2015, which resulted in the enactment of the U.K. corporate tax rate change from 20% in 2015 to 19% in 2017, then 18% in 2020. As a result, the Company recorded $1.4 million of income taxes in the fourth quarter of 2015 to write down the U.K. net deferred tax asset. In December 2015, the Italian Government approved the reduction of the Italian federal tax rate from the current rate of 27.5% to 24% in 2017. As a result, the Company recorded an $11.8 million tax benefit in the fourth quarter of 2015 to write down Italy’s net deferred tax liability. The Company early adopted ASU 2016-09 in the fourth quarter of 2016. The primary impact of adoption required the Company to recognize all excess tax benefits and tax deficiencies in the income statement prospectively beginning in the first quarter of 2016. This could result in fluctuations in the effective tax rate period over period depending on how many awards vest during the year as well as the volatility of the stock price. At January 1, 2016, the Company had $3.3 million of excess tax deductions related to stock-based compensation that were tracked off balance sheet. The tax effect of these deductions was $1.2 million . The Company recorded a cumulative effect adjustment to retained earnings of $1.2 million to recognize these excess tax benefits on the balance sheet. The components of deferred tax assets and liabilities are as follows: December 31, ($ thousands) 2017 2016 Deferred tax assets: Net operating losses 241,702 266,547 Provisions not currently deductible for tax purposes 132,365 160,202 Depreciation and amortization 72,101 118,122 Jackpot timing differences 51,438 83,989 Inventory reserves 9,913 15,974 Deferred revenue 5,317 9,129 Stock-based compensation 2,402 7,468 Credit carryforwards — 38,618 Other 4,155 15,897 Gross deferred tax assets 519,393 715,946 Valuation allowance (184,554 ) (151,653 ) Net deferred tax assets 334,839 564,293 Deferred tax liabilities: Acquired intangible assets 635,471 1,115,345 Depreciation and amortization 138,764 144,115 Other 10,518 35,381 Total deferred tax liabilities 784,753 1,294,841 Net deferred income tax liability (449,914 ) (730,548 ) The Company’s net deferred income taxes are recorded in the consolidated balance sheets as follows: December 31, ($ thousands) 2017 2016 Deferred income taxes - non-current asset 41,546 31,376 Deferred income taxes - non-current liability (491,460 ) (761,924 ) (449,914 ) (730,548 ) Net Operating Loss Carryforwards The Company has gross tax loss carryforwards in a number of tax jurisdictions of $1.061 billion of which $422.7 million relates to the U.K., $186.4 million relates to U.S. Federal, and $451.9 million relates to foreign tax jurisdictions that begin to expire in 2030, while others have an unlimited carryforward period. A valuation allowance has been provided on $819.7 million of the gross net operating loss carryfowards. Portions of these 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, 2017 the Company had state tax net operating loss carryforwards, resulting in a deferred tax asset (net of federal tax benefit) of approximately $16.4 million . State tax net operating loss carryfowards generally expire in the years 2018 through 2037. Valuation Allowance A reconciliation of the beginning and ending amount of the valuation allowance is as follows: December 31, ($ thousands) 2017 2016 2015 Balance at beginning of year 151,653 139,663 77,631 Expiration of tax attributes (25,771 ) — — Net charges to expense 58,672 11,990 62,032 Balance at end of year 184,554 151,653 139,663 The valuation allowance pertains to certain U.K. and foreign net operating losses that are not expected to be realized. In assessing the need for a valuation allowance, the Company 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 the Company changes its 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 income taxes in the period in which such determination is made. In December 2017, the Company recorded a valuation allowance on its U.K. net operating losses. The net operating losses were primarily due to significant foreign exchange losses relating to its euro denominated debt that is recorded on a U.S. dollar functional currency U.K. company. In the future, this valuation allowance could be adjusted downward if the euro weakens against the U.S. dollar, and the Company still has euro denominated debt and the resulting income is taxable in the U.K. For the years ended December 31, 2017 and December 31, 2016, the Company recorded a net valuation increase of $32.9 million and $11.9 million , respectively. Unremitted Earnings The Company previously considered the earnings in its non-U.S. subsidiaries to be indefinitely reinvested and, accordingly, recorded no deferred income taxes. The Tax Act eliminated the deferral of U.S. income tax on these foreign earnings by imposing a mandatory one-time deemed repatriation transition tax. As a result, the Company now intends to repatriate substantially all of its accumulated foreign earnings (not including the earnings of its Italian sub-group of entities). The Company continues to have significant cash needs outside the United States and, accordingly, the extent and timing of repatriation of these earnings continues to be monitored. Tax reform, however, has given the Company more flexibility to manage and deploy cash globally. The Company has recorded $9.3 million of non-U.S. withholding taxes and U.S. state taxes as part of the provisional repatriation tax amount, which will be incurred as a result of certain future cash distributions. Additional tax effects, if any, related to the ultimate repatriation of these earnings will be recorded in the period that the tax effects become determinable and a reasonable estimate can be made. The Company continues to indefinitely reinvest the earnings of its subsidiary investments held by its Italian parent sub-holding company and, therefore, no deferred income taxes have been provided on these earnings. If the Company were to change its position with respect to the indefinite reinvestment of earnings on its Italian parent sub-holding company , the estimated deferred tax effects would be $10.2 million as of December 31, 2017. Accounting for Uncertainty in Income Taxes A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: For the year ended December 31, ($ thousands) 2017 2016 2015 Balance at beginning of year 14,340 37,370 6,296 Current year acquisition — — 49,934 Additions to tax positions - current year 479 423 9,462 Additions to tax positions - prior years 7,503 1,718 — Reductions to tax positions - current year (893 ) (652 ) — Reductions to tax positions - prior years (41 ) (12,755 ) (7,733 ) Settlements — (8,750 ) (5,313 ) Lapses in statutes of limitations (413 ) (3,014 ) (15,276 ) Balance at end of year 20,975 14,340 37,370 At December 31, 2017 , 2016 and 2015 , $16.6 million , $10.8 million and $30.1 million , respectively, of the unrecognized tax benefits, if recognized, would affect the Company’s effective tax rates. The Company recognizes interest expense and penalties related to income tax matters in the provision for income taxes. For 2017 , 2016 and 2015 , the Company recognized $12.1 million , $(0.1) million and $(10.0) million , respectively, in interest expense, penalties , and inflationary adjustments. At December 31, 2017 , 2016 and 2015 , the gross balance of accrued interest and penalties was $15.7 million , $3.6 million and $3.7 million , respectively. Unrecognized tax benefits increased during 2017 as a result of the Mexico Tax Audit. Unrecognized tax benefits decreased during 2016 as a result of the settlement with the U.S. Internal Revenue Service ("IRS"). For 2016, the additions to unrecognized tax benefits related to the current year are primarily attributable to U.S. tax issues. The Company files income tax returns in various jurisdictions of which the United Kingdom, United States and Italy represent the major tax jurisdictions. The Company is currently under audit with the IRS for calendar year 2014 and 2015. All years prior to calendar year 2014 are closed with the IRS. As of December 31, 2017, the Company is subject to income tax audits in various tax jurisdictions globally, most significantly in Mexico and Italy. Mexico Tax Audit In November 2012, GTECH Mexico S.A. concluded a tax audit related to tax year 2006. This conclusion resulted in a tax assessment of approximately 424 million Mexican Pesos, including interest, inflationary adjustments and penalties. As of December 31, 2017, this assessment has increased as a result of additional interest, inflation, and penalty accruals to 520 million Mexican Pesos. While the Mexico assessment covers several issues, there were two main issues. One issue is associated with deductibility of cost of goods sold (approximately 65% of the updated total assessment) while the remaining assessment relates primarily to loan proceeds being treated as taxable income. GTECH Mexico S.A. filed appeals of the different components of the assessment and on the issue of the deductibility of cost of goods sold, the Supreme Court ruled against the company in 2017. This loss resulted in the company recording a tax charge in the amount of 341 million Mexican Pesos ( $19.1 million when the reserve was recorded and $17.4 million at the December 31, 2017 exchange rate) in 2017. The other tax issues are still being addressed in the courts in Mexico. Italy Tax Audits In September 2017, the Italian Tax Agency started a tax audit focusing on the reorganization of the Italian business and the merger of the former GTECH with and into the Parent effective from April 7, 2015. The tax audit relates to 2014 and 2015 tax years. While the audit for 2015 is open, on December 21, 2017, the Italian Tax Agency served the Parent, as the successor of GTECH, a preliminary report ("Tax Audit Report") for the fiscal year 2014. The main findings relate to the deductibility of certain transaction costs and related withholding taxes on fees paid for an aggregate proposed assessment of €3.2 million ( $3.8 million at the December 31, 2017 exchange rate). Following the Tax Audit Report, the Parent submitted to the Italian Tax Agency a defense memorandum clarifying its position on these claims. While a tax reserve was booked for an amount of €0.3 million ( $0.4 million at the December 31, 2017 exchange rate) in connection with the proposed assessment, the Company believes that it will prevail on this issue. In June 2015 a tax audit in Italy was initiated, which is also focused on the leveraged buyout transaction of GTECH Holdings Corporation in 2006 and subsequent acquisition debt refinancing. In July 2015, the Italian Tax Police issued a tax audit report ("First Report") covering the years 2006-2010, alleging that GTECH did not recharge to GTECH Holdings Corporation all interest expense and other costs incurred in connection with the 2006 transaction and subsequent refinancing. Based on this tax report, in December 2015 the Italian Tax Agency issued a number of tax assessment notices to the Company covering the years 2006-2010 and alleging that additional taxes, penalties and interest for these years totaling €200.0 million are due. Under Italian Law, the Company had 60 days in which to appeal the tax assessment notice. On February 26, 2016, the Company submitted a Voluntary Settlement Request, which entitled the Company to an automatic 90 day extension. In the meantime, on April 12, 2016, the Parent received a Tax Audit report ("Second Report") from the Italian Tax Police covering years 2011- 2014. Based upon this report, the additional taxes, penalties and interest associated with the transfer pricing challenge was estimated to be approximately €275 million for those years. During the mentioned extension period the Tax Agency re-examined the preliminary conclusions of the Tax Police in both First and Second Report and offered a tax settlement of an aggregate amount of €13.5 million ( $15.3 million ). The settlement procedure concluded on June 20, 2016 with the relevant tax payments made by the Parent. The above-mentioned settlement was booked as a reserve in the Company's 2016 Financial Statements. Finally, the two additional claims contained in the Second Report regarding (i) the alleged improper deduction of €140.0 million in Value Added Tax and (ii) under-reported taxable income pursuant to Italy’s controlled foreign corporation regime with specific reference to the Company’s fully controlled subsidiary incorporated in Cyprus, were abandoned by the Italian Tax Agency. Consequently, all of the tax assessments, penalty and interest claims emanating from the aforementioned tax audits have been resolved. Based upon the timing and outcome of examinations of the Parent, or the result of the expiration of statute of limitations for specific jurisdictions, it is reasonably possible that the related unrecognized tax benefits could change from those recorded in the consolidated balance sheets. The Company does not anticipate that these audits will be finalized within the next twelve months. While the Company does not expect the amount of the unrecognized tax benefits to change in the next twelve months, the Company does not expect any change to have a significant impact on the consolidated balance sheet or statement of operations when these audits are finalized. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Contribution Plan The Company maintains a salary deferral 401(k) plan that allows eligible employees to contribute a portion of their base pay up to the IRS prescribed limit. The Company matches a portion of the employee’s contribution. Employee and Company matching contributions vest immediately. The Company recognized expense related to the matching contribution of $13.8 million , $13.8 million and $10.8 million in 2017 , 2016 and 2015 , respectively. Defined Benefit Plan The Company has a defined benefit plan to provide certain post-employment benefits to Italian employees following termination from the Company. These employees may choose to participate in an unfunded plan within the Company or transfer their plan balance to independent external funds. These benefits are funded only to the extent paid to external funds. The cost of providing benefits under the plan, for those employees that participate in the unfunded plan within the Company, is determined using the projected unit credit actuarial valuation method. The cost of providing benefits for those employees that choose to transfer their plan to independent external funds are considered as defined contributions and are accrued as the employees render the related service. Net benefit expense was $8.1 million , $8.8 million and $6.8 million in 2017 , 2016 and 2015 , respectively. The present value of the defined benefit obligation was $12.3 million , $11.3 million and $11.2 million at December 31, 2017 , 2016 and 2015 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Lease Commitments Rent and lease expense, net of sublease rent, was $81.9 million in 2017 , $72.5 million in 2016 , and $60.8 million in 2015 . Rent and lease expense included no contingent rent payments. The minimum amounts due for non-cancellable leases at December 31, 2017 are as follows ($ thousands): Year Operating Capital Total 2018 76,779 7,999 84,778 2019 61,258 7,643 68,901 2020 55,782 6,844 62,626 2021 49,881 6,039 55,920 2022 48,485 4,348 52,833 Thereafter 248,389 5,078 253,467 Total minimum payments 540,574 37,951 578,525 Less amount representing interest (10,252 ) Capitalized lease obligation 27,699 Facility capital lease The Company has a finance lease for a facility in Providence, Rhode Island. The Company has the right to terminate the lease after June 30, 2023 if its facilities management contract with the State of Rhode Island is not renewed, in exchange for a termination fee equal to six months of base rent plus operating expenses. The lease includes two 10 -year extension options. The Company has the unilateral right to extend the lease under the two extension options under the same terms as in the initial term. The Company may not assign the lease or sublease its portion of the building without the lessor’s approval, which is not to be unreasonably withheld. The lease has been accounted for under build-to-suit guidance, under which the Company carries the entire cost of the facility on its books. The facility will remain on the books for the lease term and is depreciated over its useful life of 40 years . Sale and Leaseback Transactions On March 29, 2017, the Company entered into a sale-leaseback transaction for its main manufacturing and production facility located in Reno, Nevada. The transaction included a 15.5 year initial lease term, with four 5 -year additional renewal periods exercisable at the Company’s option, 3% annual rent increases, and payment and performance guarantees. A gain of $6.7 million on the sale of the facility was deferred and is being recognized on a straight-line basis over the initial term of the lease. Rent expense is recorded on a straight-line basis. The Company's straight-line rent calculation does not include an assumption of lease renewal periods. The Company recorded the difference between the amount charged to expense and the rent paid as deferred rent in the consolidated balance sheets. Rent expense was $10.1 million for the year ended December 31, 2017 . On December 30, 2015, the Company sold its Las Vegas, Nevada campus and entered into a sale-leaseback agreement with the buyer for a portion of the facility for a term of 15 years with optional renewals. The Company sold its technology center facility in West Greenwich, Rhode Island in December 2006 and entered into a sale-leaseback agreement for a portion of the facility with the buyer that was initially due to expire in November 2019 with renewal options. In August 2017 the Company renewed the lease agreement extending the lease term to November 2027 with an optional renewal. The facilities in Reno, Las Vegas and West Greenwich are accounted for as operating leases, and future minimum lease payments are included in the operating lease section in the table above. Communication equipment capital leases The Company has finance leases for certain communication equipment that expire between 2019 and 2022. The leases have options to extend and options to purchase the equipment, and do not contain escalation clauses. There are no restrictions placed upon the Company by entering into these leases. Point of sale capital leases The Company's finance leases for certain point of sale equipment expired in 2017. Jackpot Commitments Jackpot liabilities are recorded as current and non-current liabilities as follows: ($ thousands) December 31, 2017 Current liabilities 84,250 Non-current liabilities 191,376 275,626 Future jackpot payments are due as follows ($ thousands): Year Previous Winners Future Winners Total 2018 40,644 43,460 84,104 2019 32,127 8,674 40,801 2020 28,554 526 29,080 2021 24,190 526 24,716 2022 21,417 526 21,943 Thereafter 115,615 7,886 123,501 Future jackpot payments due 262,547 61,598 324,145 Unamortized discounts (48,519 ) Total jackpot liabilities 275,626 Other Commitments Yeonama Holdings Co. Limited In 2013, the Company invested €19.8 million in Yeonama Holdings Co. Limited (“Yeonama”), a shareholder in Emma Delta Limited, the fund that holds a 33% interest in OPAP S.A., the Greek gaming and football betting operator. At December 31, 2017 , the Company had a commitment to invest up to an additional €10.2 million ( $12.2 million at the December 31, 2017 exchange rate) in Yeonama, representing a total potential €30.0 million ( $35.9 million at the December 31, 2017 exchange rate) investment. CLS-GTECH Company Limited The Company has a 50% interest in CLS-GTECH Company Limited (“CLS”), a joint venture that was formed to provide a nationwide KENO system for Welfare lotteries throughout China. At December 31, 2017 , the Company has a capital commitment to CLS of $3.8 million in the form of a non-interest bearing promissory note to be repaid at the discretion of the CLS board of directors, which is included in other current liabilities in the consolidated balance sheets. Contingencies Performance and other bonds In connection with certain contracts and procurements, the Company has delivered performance bonds for the benefit of customers and bid and litigation bonds for the benefit of potential customers. These bonds give the beneficiary the right to obtain payment and/or performance from the issuer of the bond if certain specified events occur. In the case of performance bonds, which generally have a term of one year , such events include the Company’s failure to perform its obligations under the applicable contract. The following table provides information related to potential commitments for bonds outstanding at December 31, 2017 : ($ thousands) Total bonds Performance bonds 447,014 Wide Area Progressive bonds 266,218 Bid and litigation bonds 8,600 All other bonds 24,827 746,659 Guarantees and Indemnifications Incentive Payments and Shortfall Payments under Minimum Profit Contracts The Company has two contracts (each of which is an LMA) where it has provided customers with minimum profit level guarantees (the Indiana contract and the New Jersey contract). Under these contracts, subject to certain caps, the Company may earn incentive compensation if it exceeds minimum profit level guarantees and may be required to make shortfall payments should it fail to achieve them. In relation to the Indiana contract, the Company guaranteed a minimum profit level to the State of Indiana commencing with the contract year ending June 30, 2014. The Company recorded a reduction of service revenue of $8.0 million in 2015 in connection with the Company's performance during the fiscal year ended June 30, 2015 related to this guarantee. In 2015, the Company and the State of Indiana renegotiated the Indiana contract which resulted in revised guarantee levels, and in consideration, the Company paid the State of Indiana $18.3 million which the Company capitalized to other non-current assets in its consolidated balance sheet and which the Company is amortizing to service revenue over the remaining contract term. The Company did not earn incentive compensation or make shortfall payments related to the guarantee in 2017 or 2016 . In relation to the New Jersey contract, the Company guaranteed a minimum profit level to the State of New Jersey commencing with the contract year ending June 30, 2014. In 2015, the Company and the State of New Jersey renegotiated the New Jersey contract which resulted in revised guarantee levels, and in consideration, the Company paid the State of New Jersey $15.4 million which the Company capitalized to other non-current assets in its consolidated balance sheet and which the Company is amortizing to service revenue over the remaining contract term. The Company earned incentive compensation of $29.0 million and $30.6 million in 2017 and 2016 , respectively based on its performance for the fiscal years ended June 30, 2017 and June 30, 2016, respectively, which was recorded as service revenue in the consolidated statements of operations. Loxley GTECH Technology Co., LTD Guarantee The Company has a 49% interest in Loxley GTECH Technology Co., LTD (“LGT”). LGT is a joint venture that was formed to provide an online lottery system in Thailand. The Company has guaranteed, along with the 51% shareholder in LGT, performance bonds provided on behalf of LGT by an unrelated commercial lender. The performance bonds relate to LGT’s performance under the July 2005 contract between the Government Lottery Office of Thailand and LGT should such contract become operational. The Company is jointly and severally liable with the other shareholder in LGT for this guarantee. There is no scheduled termination date for the Company’s guarantee obligation. At December 31, 2017 , the maximum liability under the guarantee was Baht 375 million ( $11.5 million ), and the Company does not have any obligation related to this guarantee because the July 2005 contract to provide the online lottery system is not in operation due to continuing political instability in Thailand. Zest Gaming Contingent Consideration On July 25, 2017, the Company acquired the video bingo subsidiaries and related operating assets of Zest Gaming S.r.l. , a leading supplier of multi-card video bingo solutions headquartered in Italy. The acquisition consideration included a fair value estimate of contingent consideration related to existing operations for the twelve month period ending June 30, 2018. At December 31, 2017 , contingent consideration was €6.5 million ( $7.8 million ), and is capped at €17.2 million ( $20.6 million at the December 31, 2017 exchange rate) for existing operations. 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 the Company, injunctions by third parties arising out of the ordinary course of business, and investigations and compliance inquiries related to the Company’s ongoing operations. Legal proceedings can be expensive and disruptive to normal business operations. Moreover, the results of legal proceedings are often difficult to predict and the Company’s view of these matters may change as the related proceedings and events unfold. The Company expenses legal fees as incurred and records a provision for contingent losses when it is both probable that a liability will be incurred and the amount or range of the loss can be reasonably estimated. At December 31, 2017 , provisions for litigation matters amounted to $4.7 million . With respect to litigation and other legal proceedings where the Company has determined that a loss is reasonably possible but the Company is 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). If material, an unfavorable outcome to any legal matter could have an adverse effect on the Company’s operations, financial position, liquidity, or results of operations. Brazil ICMS Tax Since 1997, GTECH Brazil paid ISS service taxes on its revenues derived from its lottery contract with Caixa Eonomica Federal. On July 26, 2005, the State of São Paulo challenged this tax classification, claiming the higher ICMS tax (Brazilian VAT) should have been applied on the value of printing ribbons, rolls of paper, and wagering slips (“Consumables”) distributed to lottery outlets. On February 27, 2017, the Brazilian court ruled that rolls of paper and wagering slips were not subject to ICMS, but printing ribbons were, although at a lower tax rate than the São Paulo tax authorities had applied. Both parties appealed the respective unfavorable aspects of the lower court’s ruling to the Court of Appeals. On March 7, 2018, the Court of Appeals ruled in GTECH Brazil’s favor with respect to its petition to also exclude the printer ribbons from the ICMS tax. The Court of Appeals also ruled against the petition of the tax authority to reverse the lower court’s ruling to exclude rolls of paper and wagering slips from ICMS tax. If the tax authority elects to appeal the ruling to higher courts, the tax authority has 30 business days following publication of the decision by the Court of Appeals in the relevant website or journal to file such appeal. Should the tax authority decide to further appeal the matter, the proceedings are likely to take several years. The net claim after the current ruling, plus statutory interest and fees is approximately 18.5 million Brazilian Reals ( $5.6 million at the December 31, 2017 exchange rate). 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 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. Both sides may consider petitioning for Texas Supreme Court review. (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 million . GTECH Corporation and the Texas Lottery Commission won pleas to the jurisdiction for dismissal based on sovereign immunity. Plaintiff appealed, lost the appeal, and is petitioning for Texas Supreme Court review. (c) Guerra, Esmeralda v. GTECH Corp. et al. , filed on June 10, 2016, in Hidalgo County (No. C277716B). Plaintiff claims damages in excess of $500,000 . (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 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 million . The Company disputes the claims made in each of these cases and continues to defend against these lawsuits. Illinois State Lottery On February 2, 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 include 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 March 15, 2017, a second lawsuit, Atteberry, Dennis et al. v. Northstar Lottery Group, LLC , was filed in Illinois state court, Cook County (No. 2017CHO3755) seeking damages on the same matter. The Company disputes the claims made in both cases and continues to defend against these lawsuits. Mexican Inventory Tax The Mexican Tax Administration Service levied an assessment of income tax, VAT, profit sharing, interest and penalties on GTECH Mexico, S.A. de C.V. (“GTECH Mexico”), for the 2006 fiscal year that, as at December 31, 2017, amounted to 520,806,390 Mexican Pesos ( $26.5 million at the December 31, 2017 exchange rate). Approximately 65% of the assessment relates to denial of a deduction for inventory sold ("cost of goods sold deduction") by GTECH Mexico to its parent; the remaining assessment relates primarily to intercompany loan proceeds (treated as taxable income) received from GTECH Mexico’s parent. Although lower courts upheld the assessment, the Mexican Appellate Court ruled the loan proceeds non-taxable, but denied the Company’s cost of goods sold deduction. The Mexican Supreme Court upheld the Appellate Court’s ruling that the cost of goods sold deduction would not apply. GTECH Mexico filed a constitutional appeal on November 23, 2017. The Company maintains that the assessment is without merit. For a further discussion of the Mexican cost of goods sold deduction tax issue, refer to Note 14, Income Taxes . |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Redeemable Non-Controlling Interests | Redeemable Non-Controlling Interests In March 2016, the Parent, through its subsidiary Lottomatica S.p.A. (“Lottomatica”), Italian Gaming Holding a.s. (“IGH”), Arianna 2001 and Novomatic Italia (collectively the “Members”) entered into a consortium (Lottoitalia S.r.l. or “Lottoitalia”) to bid on the Lotto Concession. On May 16, 2016, Lottoitalia was awarded management of the Lotto Concession for a nine -year term. Under the terms of the consortium agreement, Lottomatica is the principal operating partner fulfilling the requirements of the Lotto Concession. In 2016 and 2017, the Members made capital contributions to Lottoitalia of €908.2 million on a pro rata basis based on each party’s equity ownership interest. These contributions financed €770.0 million in upfront concession payments and upgrades to the technological infrastructure supporting the Lotto Concession. The upfront concession payments made in 2016 and 2017 were as follows: Year Paid € $ 2016 600.0 665.3 2017 170.0 185.4 770.0 850.7 Ownership in Lottoitalia at December 31, 2017 and 2016 is as follows: Name of entity % Ownership Lottomatica S.p.A. 61.50 % Italian Gaming Holding a.s. 32.50 % Arianna 2001 4.00 % Novomatic Italia 2.00 % The Company fully consolidates Lottoitalia as a variable interest entity due to the Company's risks and rewards of the investment and Lottoitalia's current need for funding to finance planned operations. All annual profits of Lottoitalia are distributed to the Members within five business days of the approval of its annual financial statements. In addition, quarterly for a period of nine years beginning in 2017, Lottoitalia makes equal distributions of cash to the Members in an aggregate amount equal to that additional paid in surplus but excluding any reserves deriving from profits or retained earnings generated in previous quarters ("return of capital"). Each distribution of annual profits and return of capital will be made pro rata to the Members' ownership interest in Lottoitalia. In connection with the formation of Lottoitalia, Lottomatica entered into an agreement with IGH in May 2016, which contains the following put/call options: • Underperformance put option - IGH has the right, at its discretion, to sell its interest in Lottoitalia to Lottomatica in the event that Lottoitalia underperforms relative to certain thresholds related to pro forma cash from operations generated in 2017. The put option is exercisable by IGH beginning on the date of approval of Lottoitalia's financial statements for the year ending December 31, 2017 and ending 60 days thereafter. • Deadlock put/call option - IGH has the right, at its discretion, to sell its interest in Lottoitalia to Lottomatica and Lottomatica has a reciprocal call right, in the event of certain specified events as defined in the agreement. The put/call options expire 60 days following written notice by either party following the applicable event. The strike price of the options is determined based on a specified formula as defined in the agreement. The Company determined that it is not currently probable that IGH's non-controlling interest will be redeemed as Lottoitalia's 2017 results indicate the underperformance put option is not exercisable and the deadlock put/call options cannot be exercised unilaterally. The Company has recorded the non-controlling interest initially at fair value and no fair value adjustments will be recorded unless it becomes probable that IGH will redeem its non-controlling interest. The following table reconciles the activity in IGH's redeemable non-controlling interest in 2017 and 2016 : For the year ended ($ thousands) 2017 2016 Balance at beginning of year 223,141 — Capital contribution 107,457 215,684 Income allocated to IGH 65,665 7,457 Dividend paid (7,307 ) — Return of capital (32,039 ) — Balance at end of year 356,917 223,141 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
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 ordinary shares of the Parent consists of 1.850 billion ordinary shares with a $0.10 per share par value. Ordinary shares of common stock outstanding were as follows: December 31, 2017 2016 2015 Balance at beginning of year 202,285,166 200,244,239 172,792,526 Shares issued under restricted stock award plans 947,709 1,080,532 1,118,970 Shares issued upon exercise of stock options 213,697 960,395 744,374 Shares issued upon acquisition of IGT — — 45,322,614 GTECH rescission shares — — (19,734,245 ) Balance at end of year 203,446,572 202,285,166 200,244,239 Shares Issued Upon Acquisition of IGT Upon the acquisition of IGT, IGT shareholders received 45,322,614 common shares of the Parent in accordance with the terms of the transaction. GTECH Rescission Shares GTECH shareholders who did not vote in favor of the merger of GTECH into the Parent were entitled to exercise a cash exit right equal to €19.174 per share. GTECH shareholders exercised the cash exit right on 19,796,852 GTECH shares, of which 62,607 were subsequently purchased by other GTECH shareholders, resulting in 19,734,245 net shares repurchased upon the merger. The Company paid $407.8 million to shareholders. Treasury Stock Purchases The Parent has the authority to purchase, subject to a maximum repurchase price, a maximum of 20% of the aggregate issued share capital of ordinary shares in the Parent as of April 7, 2015. This authority will expire on July 28, 2020. The Parent did not repurchase common shares in 2017 , 2016 or 2015 . Dividends The Company declared cash dividends per share during the periods presented as follows: Per share amount ($) 2017 2016 2015 First Quarter 0.20 0.20 — Second Quarter 0.20 0.20 — Third Quarter 0.20 0.20 0.20 Fourth Quarter 0.20 0.20 0.20 Total cash dividends declared 0.80 0.80 0.40 Future dividends are subject to Board approval. The RCF Senior Facilities Agreement and Term Loan Facility Agreement limit the aggregate amount of dividends and repurchases of the Parent's ordinary shares in each year to $300 million based on the Company’s current ratings by Moody’s and S&P provided that the ratio of the sum of total net debt and the aggregate amount of dividends and repurchases to EBITDA does not exceed 90% of the applicable ratio of total net debt to EBITDA. Accumulated Other Comprehensive Income The following table details the changes in Accumulated Other Comprehensive Income (“AOCI”): Unrealized Gain (Loss) on: Less: OCI attributable to non-controlling interests Total AOCI attributable to IGT PLC Foreign Currency Translation Cash Flow Hedges Hedge of Net Investment Available for Sale Securities Defined Benefit Plans Share of OCI of Associate Balance at December 31, 2014 158,131 971 (4,499 ) 5,019 (4,356 ) (748 ) 685 155,203 Change during period 60,079 (594 ) — (3,046 ) 395 — 304 57,138 Reclassified to operations — (244 ) — — — — — (244 ) Tax effect (14,024 ) 254 (64 ) (3,259 ) (166 ) — — (17,259 ) OCI 46,055 (584 ) (64 ) (6,305 ) 229 — 304 39,635 Balance at December 31, 2015 204,186 387 (4,563 ) (1,286 ) (4,127 ) (748 ) 989 194,838 Change during period (49,881 ) 8,351 — 8,772 (682 ) — (203 ) (33,643 ) Reclassified to operations 118 (5,218 ) — — — — — (5,100 ) Tax effect 373 (615 ) (15 ) 4,723 82 — — 4,548 OCI (49,390 ) 2,518 (15 ) 13,495 (600 ) — (203 ) (34,195 ) Balance at December 31, 2016 154,796 2,905 (4,578 ) 12,209 (4,727 ) (748 ) 786 160,643 Change during period 182,791 (6,610 ) — (678 ) (120 ) — 463 175,846 Reclassified to operations — 1,744 — — — — — 1,744 Tax effect 559 1,312 — 57 8 — — 1,936 OCI 183,350 (3,554 ) — (621 ) (112 ) — 463 179,526 Balance at December 31, 2017 338,146 (649 ) (4,578 ) 11,588 (4,839 ) (748 ) 1,249 340,169 For the years ended December 31, 2017 , 2016 and 2015 , $1.7 million , $5.2 million , and $0.2 million , respectively, were reclassified from AOCI into service revenue in the consolidated statements of operations. |
Non-Controlling Interests
Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Non-Controlling Interests | Non-Controlling Interests Non-controlling interests’ share of equity in the accompanying consolidated balance sheets was $349.9 million and $357.0 million at December 31, 2017 and 2016 , respectively. At December 31, 2017 the Company’s material non-controlling interests were as follows: Name of subsidiary % Ownership held by the Company Lotterie Nazionali S.r.l. ("LN") 64.00 % Northstar New Jersey Lottery Group, LLC 82.31 % LN holds the Scratch & Win concession license in Italy. In December 2017, the Italian regulator exercised a nine -year contract extension option for the Scratch & Win concession, extending the concession through September 2028. LN is required to pay an upfront license fee of €800 million related to the extension, of which €50 million ( $59.3 million ) was paid in December 2017, and the remaining €750 million ( $899.5 million at the December 31, 2017 exchange rate) is expected to be paid in 2018. Northstar New Jersey Lottery Group, LLC (“Northstar NJ”), is a consolidated joint venture which is party to an agreement with the State of New Jersey, Department of the Treasury, Division of Purchase and Property and Division of Lottery (the “Division of Lottery”) where Northstar NJ manages a wide range of the Division of Lottery’s marketing, sales, and related functions. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The structure of the Company’s internal organization is customer-facing aligned around four business segments operating in three regions as follows: • North America Gaming and Interactive • North America Lottery • International • Italy The Company monitors the operating results of its operating segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating income. Segment accounting policies are consistent with those of the consolidated financial statements. Corporate support expenses, which are not allocated to the segments, are principally composed of selling, general and administrative expenses and other expenses that are managed at the corporate level, including restructuring, transaction, corporate headquarters and Board expenses. Purchase accounting principally represents the depreciation and amortization of acquired tangible and intangible assets in connection with acquired companies. Segment information is as follows ($ thousands): For the year ended North America Gaming and Interactive North America Lottery International Italy Operating Segment Total Corporate Support Purchase Accounting Total Service revenue 780,633 1,093,048 557,049 1,703,901 4,134,631 1,203 722 4,136,556 Product sales 377,065 92,174 332,015 1,149 802,403 — — 802,403 Total revenue 1,157,698 1,185,222 889,064 1,705,050 4,937,034 1,203 722 4,938,959 Operating income (loss) 278,963 289,025 163,799 478,540 1,210,327 (197,089 ) (1,064,330 ) (51,092 ) Depreciation and amortization 81,355 129,517 66,745 161,484 439,101 11,554 351,785 802,440 Expenditures for long-lived assets (147,175 ) (204,104 ) (77,815 ) (188,013 ) (617,107 ) (3,964 ) — (621,071 ) Long-lived assets (at year end) 271,833 666,627 292,962 396,495 1,627,917 — — 1,627,917 Total assets (at year end) 3,683,258 2,460,676 3,038,806 4,900,130 14,082,870 1,076,338 — 15,159,208 For the year ended North North International Italy Operating Segment Corporate Purchase Total Service revenue 975,206 1,128,306 512,668 1,759,843 4,376,023 — (437 ) 4,375,586 Product sales 398,248 65,269 314,637 1,295 779,449 — (1,139 ) 778,310 Total revenue 1,373,454 1,193,575 827,305 1,761,138 5,155,472 — (1,576 ) 5,153,896 Operating income (loss) 349,275 299,182 142,200 583,504 1,374,161 (245,600 ) (468,125 ) 660,436 Depreciation and amortization 86,380 143,941 50,879 150,736 431,936 12,481 438,052 882,469 Expenditures for long-lived assets (132,297 ) (148,641 ) (97,957 ) (91,834 ) (470,729 ) (3,460 ) — (474,189 ) Long-lived assets (at year end) 394,233 603,927 284,276 275,079 1,557,515 — — 1,557,515 Total assets (at year end) 5,577,491 2,396,557 3,021,448 3,724,856 14,720,352 339,810 — 15,060,162 For the year ended North North International Italy Operating Segment Corporate Purchase Total Service revenue 780,169 992,684 512,014 1,702,184 3,987,051 — (9,358 ) 3,977,693 Product sales 321,624 52,986 341,064 1,872 717,546 — (6,183 ) 711,363 Total revenue 1,101,793 1,045,670 853,078 1,704,056 4,704,597 — (15,541 ) 4,689,056 Operating income (loss) 295,531 181,813 164,190 555,223 1,196,757 (292,371 ) (364,430 ) 539,956 Depreciation and amortization 71,886 154,619 45,855 152,293 424,653 13,123 342,052 779,828 Expenditures for long-lived assets (82,834 ) (107,854 ) (93,666 ) (22,422 ) (306,776 ) (11,618 ) — (318,394 ) Long-lived assets (at year end) 403,482 616,760 236,043 220,910 1,477,195 — — 1,477,195 Total assets (at year end) 6,077,680 2,476,112 2,950,807 2,855,797 14,360,396 754,296 — 15,114,692 In connection with the June 2017 sale of DoubleDown, the Company recorded a $783.8 million reduction in assets in the North America Gaming and Interactive segment, principally composed of goodwill and intangible assets. In the second quarter of 2017, the Company made changes to management reporting lines within functions that support its segments, principally field services, data center and research and development. These changes resulted in insignificant changes in how certain shared operating expenses were allocated to segments. The Company has reclassified prior period amounts to conform to the current year presentation. The resulting changes in operating income (loss) by segment for the years ended December 31, 2016 and 2015 were as follows ($ thousands): For the year ended North North International Italy Segment Corporate Purchase Total As previously presented 344,125 300,394 144,125 585,517 1,374,161 (245,600 ) (468,125 ) 660,436 As currently presented 349,275 299,182 142,200 583,504 1,374,161 (245,600 ) (468,125 ) 660,436 Change 5,150 (1,212 ) (1,925 ) (2,013 ) — — — — For the year ended North North International Italy Segment Corporate Purchase Total As previously presented 294,256 182,615 164,949 554,937 1,196,757 (292,371 ) (364,430 ) 539,956 As currently presented 295,531 181,813 164,190 555,223 1,196,757 (292,371 ) (364,430 ) 539,956 Change 1,275 (802 ) (759 ) 286 — — — — Geographical Information Revenue from external customers, which is based on the geographical location of the Company’s customers, is as follows: December 31, ($ thousands) 2017 2016 2015 United States 2,195,791 2,472,013 2,030,251 Italy 1,728,472 1,778,750 1,712,583 Canada 100,315 89,938 105,377 United Kingdom 74,567 82,271 93,839 All other 839,814 730,924 747,006 Total 4,938,959 5,153,896 4,689,056 Revenue from exclusive and non-exclusive concessions awarded to the Company by ADM represented 31.9% , 31.7% and 33.6% of consolidated revenue in 2017 , 2016 and 2015 , respectively. Long-lived assets are composed of the following: • Systems, equipment and other assets relating to contracts • Property, plant and equipment Long-lived assets based on the geographical location of the assets are as follows: December 31, ($ thousands) 2017 2016 United States 938,925 989,374 Italy 366,990 254,052 United Kingdom 43,379 47,388 All other 278,623 266,701 Total 1,627,917 1,557,515 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Incentive Awards Stock-based incentive awards are provided to directors and employees under the terms of the Company’s 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 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. The Company utilizes 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 the Company’s 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. No stock options were granted in 2017 or 2016 . In 2015, stock options were granted solely to the Company’s Chief Executive Officer, which will vest in 2018 subject to certain performance and other criteria, and have a contractual term of approximately seven years. 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. PSUs typically vest 50% over an approximate three -year period and 50% over an approximate four -year period. PSUs awarded in 2015 vest 50% over an approximate one -year period and 50% over an approximate two -year period. Dividend equivalents are not paid under the Plan. The fair value of each PSU is determined on the grant date, based on the Company’s stock price, adjusted for the exclusion of dividend equivalents, and assumes that performance targets will be achieved. Over the performance period, the number of shares of stock that will be issued is adjusted based upon the probability of achievement of performance targets. The ultimate number of shares issued and the related compensation cost recognized as expense is based on a comparison of the final performance metrics to the specified targets. RSUs are stock awards granted to directors that entitle the holder to shares of common stock as the award vests, typically over a one -year period, and have a contractual term of 10 years . Dividend equivalents are not paid under the Plan. Stock Option Activity A summary of the Company’s stock option activity and related information is as follows: Weighted Average Stock Options Exercise Price Per Share ($) Remaining Contractual Term (in years) Aggregate Intrinsic Value ($ thousands) Outstanding at January 1, 2017 3,747,268 19.06 Granted — — Forfeited (442,138 ) 20.30 Exercised (1,112,423 ) 17.21 Expired — — Outstanding at December 31, 2017 2,192,707 19.76 1.97 At December 31, 2017: Vested and expected to vest 2,192,707 19.76 1.97 14,811 Exercisable 1,942,707 20.30 0.49 12,066 The total intrinsic value of stock options exercised was $9.3 million , $7.8 million and $3.3 million in 2017 , 2016 and 2015 , respectively. The total cash proceeds from stock options exercised was $12.7 million and $10.7 million in 2016 and 2015 , respectively. There were no cash proceeds from stock options exercised in 2017 . Fair Value of Stock Options Granted The Company estimates 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 2015 was $2.31 per share. 2015 Valuation model Monte Carlo Exercise price ($) 15.53 Expected option term (in years) 2.38 Expected volatility of the Company’s stock (%) 35.00 Risk-free interest rate (%) 1.06 Dividend yield (%) 5.15 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 the original estimates of fair value made by the Company. Stock Award Activity A summary of the Company’s 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, 2017 4,321,197 15.04 117,551 19.14 Granted 1,723,730 17.74 117,745 21.12 Vested (1,329,031 ) 10.65 (129,073 ) 19.41 Forfeited (632,397 ) 16.55 — — Nonvested at December 31, 2017 4,083,499 16.35 106,223 21.00 At December 31, 2017: Unrecognized cost for nonvested awards ($ thousands) 375 878 Weighted average future recognition period (in years) 0.29 0.39 The total vest-date fair value of PSUs vested was $28.8 million , $8.4 million and $13.4 million in 2017 , 2016 and 2015 , respectively. The total vest-date fair value of RSUs vested was $2.8 million , $15.9 million and $8.4 million for 2017 , 2016 and 2015 respectively. Fair Value of Stock Awards Granted The Company estimated the fair value of PSUs at the date of grant using a Monte Carlo simulation valuation model, as the award includes a market condition. During 2017 , 2016 and 2015 , the Company estimated the fair value of RSUs at the date of grant based on the Company’s stock price adjusted for the exclusion of dividend equivalents. Details of the grants are as follows: 2017 2016 2015 PSUs granted during the year 1,723,730 1,788,050 2,204,963 Weighted average grant date fair value ($) 17.74 21.08 7.58 RSUs granted during the year 117,745 117,551 1,538,583 Weighted average grant date fair value ($) 21.12 19.14 19.52 Modifications 2017 During the second quarter of 2017, the Company modified the measurement of a performance condition for the PSUs granted in 2016. The modification affected 974 employees but did not result in any incremental compensation cost. 2015 During the first quarter of 2015, the Company modified the expiration date of outstanding stock options granted in July 2009 from April 8, 2015 to June 30, 2015. The modification affected 58 employees but did not result in any incremental compensation cost. During the fourth quarter of 2015, the Company modified the performance conditions of outstanding stock options and PSUs granted in July 2013 and 2014, as the original vesting conditions were not expected to be satisfied. The modification affected 223 employees and resulted in $14.6 million of incremental compensation cost. Stock-Based Compensation Expense Total compensation cost for the Company’s stock-based compensation plans is recorded based on the employees’ respective functions as detailed below. For the year ended December 31, ($ thousands) 2017 2016 2015 Cost of services 26 1,302 602 Cost of product sales (8 ) 330 675 Selling, general and administrative 4,628 22,304 15,700 Research and development 58 2,410 4,223 4,704 26,346 21,200 Transaction (income) expense, net — — 14,867 Stock-based compensation expense before income taxes 4,704 26,346 36,067 Income tax benefit 975 7,846 15,349 Total stock-based compensation, net of tax 3,729 18,500 20,718 Compensation cost recorded in transaction (income) expense, net, relates to the acceleration of unvested RSUs upon termination of employment following the acquisition of IGT. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Dec. 31, 2017 | |
Other Expense, Nonoperating [Abstract] | |
Other Income (Expense), Net | Other (Expense) Income, Net The components of other (expense) income, net are as follows: For the year ended December 31, ($ thousands) 2017 2016 2015 Tender premium (37,793 ) — — Unamortized debt premium 12,394 — — Swap 705 — — Fees (1,039 ) — — 7.500% Senior Secured Notes due 2019 (25,733 ) — — Unamortized debt issuance costs (7,307 ) — — Revolving Credit Facilities due 2021 (7,307 ) — — Third-party fees and costs (2,380 ) — — Term Loan Facility due 2023 (2,380 ) — — Gain (loss) on interest rate swaps 3,827 (5,220 ) — 6.250% Senior Secured Notes due 2022 3,827 (5,220 ) — Tender premium — — (73,376 ) Unamortized debt issuance cost — — (4,295 ) Fees — — (2,040 ) Capital Securities — — (79,711 ) Unamortized debt issuance cost — — (34,526 ) Fees — — (3,640 ) Bridge Facility — — (38,166 ) Total debt related (31,593 ) (5,220 ) (117,877 ) Gain on sale of available-for-sale investment — 20,365 — Other (1,800 ) 3,220 (4,418 ) (33,393 ) 18,365 (122,295 ) As discussed in Note 13, Debt , the Company completed several debt transactions in 2017, including the purchase of a portion of the 7.500% Senior Secured Notes due 2019 that resulted in a $25.7 million loss on early extinguishment of debt. In 2016, the Company sold an available-for-sale investment in the Italy segment for approximately $23.9 million and recognized a gain on sale of $20.4 million . In 2015, in anticipation of the acquisition of IGT, the Company completed several debt transactions that resulted in $117.9 million of expense. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic (loss) earnings per share is computed on the basis of the weighted-average number of common stock outstanding during the period. Diluted (loss) earnings per share is computed on the basis of the basic weighted-average shares plus the effect of potentially dilutive securities outstanding during the period using the treasury stock method. Potentially dilutive securities include outstanding stock options and unvested PSUs and RSUs. The following table presents the computation of basic and diluted (loss) earnings per share: For the year ended December 31, ($ and shares in thousands, except per share amounts) 2017 2016 2015 Numerator: Net (loss) income attributable to IGT PLC (1,068,576 ) 211,337 (75,574 ) Denominator: Weighted-average shares, basic 203,130 201,511 192,398 Incremental shares under stock based compensation plans — 703 — Weighted-average shares, diluted 203,130 202,214 192,398 Basic (loss) earnings per share attributable to IGT PLC (5.26 ) 1.05 (0.39 ) Diluted (loss) earnings per share attributable to IGT PLC (5.26 ) 1.05 (0.39 ) 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. In addition, during years when the Company is in a net loss position, certain outstanding stock options and unvested restricted stock awards were excluded from the computation of diluted earnings per share because including them would have had an antidilutive effect due to the net loss position of the Company. For the years ended December 31, 2017 and 2015 , 0.4 million and 2.6 million stock options and unvested restricted stock awards, 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, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company engages in business transactions with certain related parties which include (i) entities and individuals capable of exercising control, joint control, or significant influence over the Company, (ii) De Agostini or entities directly or indirectly controlled by De Agostini and (iii) unconsolidated subsidiaries or joint ventures of the Company. Members of the Company’s Board of Directors, 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. The Company may make investments in such entities, enter into transactions with such entities, or both. Investments in Related Parties From time to time, the Company makes strategic investments in publicly traded and privately held companies that develop software, hardware, and other technologies or provide services supporting its technologies. The Company may also purchase from or make sales to these organizations. Ringmaster S.r.l. The Company has a 50% interest in Ringmaster S.r.l., an Italian joint venture, which is accounted for using the equity method of accounting. Ringmaster S.r.l. provides software development services for the Company’s interactive gaming business pursuant to an agreement dated December 7, 2011. The Company's investment in Ringmaster S.r.l. was $0.8 million and $0.6 million at December 31, 2017 and 2016 , respectively. Yeonama Holdings Co. Limited and OPAP S.A. The Company has a 30% interest in Yeonama Holdings Co. Limited (“Yeonama”), which is accounted for at cost. Yeonama is a shareholder in Emma Delta Limited, the fund that holds a 33% interest in OPAP S.A. (“OPAP”), the Greek gaming and football betting operator. Marco Sala, Chief Executive Officer of the Company and Board member, is a member of the board of directors of OPAP. The Company's investment in Yeonama was $23.1 million and $20.3 million at December 31, 2017 and 2016 , respectively. The Company provides sports betting and player account management systems to OPAP S.A. The Company is also a technology provider of VLT central systems to OPAP S.A. Connect Ventures One LP and Connect Ventures Two LP The Company has held investments in Connect Ventures One LP and Connect Ventures Two LP (the “Connect Ventures”) since 2011 and 2015, respectively. The Connect Ventures are venture capital funds which target ‘‘early stage’’ investment operations, with the legal status of limited partnership under English law. Each fund is considered a related party because at least one key figure in the fund’s management is related to a number of leading representatives of De Agostini S.p.A., as well as directors of the Company. The Company’s investment in Connect Ventures One LP was $4.7 million and $4.2 million at December 31, 2017 and 2016 , respectively. The Company accounts for this investment as an available-for-sale investment. The Company’s investment in Connect Ventures Two LP was $3.8 million and $1.7 million at December 31, 2017 and 2016 , respectively. The Company accounts for its investment as an available-for-sale investment. Transactions with Related Parties De Agostini Group The Company is majority owned by De Agostini S.p.A. Amounts receivable from De Agostini S.p.A. and subsidiaries of De Agostini S.p.A. (“De Agostini Group”) are non-interest bearing. Transactions with the De Agostini Group include payments for support services provided and office space rented. In addition, certain Italian subsidiaries of the Company have a tax unit agreement with De Agostini S.p.A. pursuant to which De Agostini S.p.A. consolidates certain Italian subsidiaries of De Agostini S.p.A. for the collection and payment of taxes to the Italian tax authority. Autogrill S.p.A. Gianmario Tondato da Ruos, a member of the board of directors of the Parent, is Chief Executive Officer and a director of Autogrill S.p.A. (“Autogrill”), a global operator of food and beverage services for travelers. Autogrill has a contract with the Company to sell scratch and win and lottery tickets in Italy. Assicurazioni Generali S.p.A. Assicurazioni Generali S.p.A. (“Generali”) is a related party of the Company as the Vice-Chairman of the Board also serves on Generali’s board of directors. In 2012, the Company entered into a lease agreement to lease the Company’s facility in Rome, Italy from a wholly-owned subsidiary of Generali. Willis Towers Watson A Board member, James McCann, is a member of the board of directors of Willis Towers Watson (previously Willis Group Holdings PLC) (“Willis Towers”), a global firm with offerings from insurance and reinsurance to retirement planning and health-care consulting. Another Board member, Sir Jeremy Hanley, was a member of the board of directors of Willis Ltd., a subsidiary of Willis Towers until February 2017. Effective November 1, 2017, Sir Jeremy Hanley retired from the Board and from his roles on the Audit Committee and the Nominating and Corporate Governance Committee. Willis Towers currently acts as a broker for the Company’s insurance needs. Employment Arrangement Enrico Drago, the son of Board member Marco Drago, was the CEO and a board member of the Company’s wholly owned subsidiary Lottomatica S.p.A. and a board member of Lottoitalia. On March 29, 2017, he resigned as CEO and board member of Lottomatica S.p.A. and on April 21, 2017, he resigned as a board member of Lottoitalia. Enrico Drago continues to work for the Company in a management position within the North America Gaming and Interactive business segment. Summary of Related Party Transactions Amounts receivable from and payable to related parties are as follows: December 31, ($ thousands) 2017 2016 Trade receivables 65 71 De Agostini Group 65 71 Trade receivables 7,374 10,970 Autogrill S.p.A. 7,374 10,970 Trade receivables 6,888 1,597 OPAP S.A. 6,888 1,597 Trade receivables 176 — Ringmaster S.r.l. 176 — Total related party receivables 14,503 12,638 Tax related payables 19,673 72,916 Trade payables 10,974 27,578 De Agostini Group 30,647 100,494 Trade payables 915 365 Autogrill S.p.A. 915 365 Trade payables 6,404 2,454 Ringmaster S.r.l. 6,404 2,454 Trade payables 340 — OPAP S.A. 340 — Total related party payables 38,306 103,313 The following table sets forth transactions with related parties: For the year ended December 31, ($ thousands) 2017 2016 2015 Service revenue and product sales OPAP S.A. 37,512 4,437 4,036 Ringmaster S.r.l. 136 156 239 Autogrill S.p.A. 55 59 6,060 De Agostini Group 20 19 21 37,723 4,671 10,356 Operating costs Ringmaster S.r.l. 10,940 9,535 12,651 Assicurazioni Generali S.p.A. 3,765 3,102 3,003 Autogrill S.p.A. 2,391 678 — Willis Towers Watson 550 550 5,000 OPAP S.A. 11 87 — De Agostini Group 120 57 569 17,777 14,009 21,223 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation 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”). Intercompany accounts and transactions have been eliminated. The consolidated financial statements are presented in U.S. dollars and all amounts are rounded to the nearest thousand (except share and per share data) unless otherwise indicated. Certain reclassifications have been made to prior periods to conform to the current period presentation. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Parent and its controlled subsidiaries, which are primarily majority owned. Investments in other entities that the Company has the ability to control, through a majority voting interest or otherwise, or with respect to which the Company is the primary beneficiary, are consolidated. Earnings or losses attributable to any non-controlling interests or redeemable non-controlling interests in a subsidiary are included in net income (loss) in the consolidated statements of operations. Any investments in affiliates over which the Company has the ability to exert significant influence, but do not control and with respect to which the Company is not the primary beneficiary, are accounted for using the equity method of accounting. Investments in affiliates for which the Company has no ability to exert significant influence are accounted for using the cost method of accounting. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of subsidiaries located outside of the United States that have a local functional currency are translated to U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense accounts for these subsidiaries are translated at the average exchange rates for the periods. Resulting translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within shareholders’ equity. The Company records gains and losses from currency transactions denominated in currencies other than the functional currency in its consolidated statement of operations. |
Revenue Recognition | Revenue Recognition The Company has two categories of revenue: service revenue and product sales. Service revenue is derived from the following sources: • Operating contracts predominantly related to Italian concessions and Lottery Management Agreements ("LMAs"); • Gaming operations arrangements where the Company provides customers with proprietary gaming equipment, systems, content licensing, and services; • Facilities Management Contracts (" FMCs "); • Interactive contracts; and • Other professional services. Product sales are derived from the following sources: • Sale of lottery terminals and gaming machines, including game content; and • Sale of lottery and gaming systems, including the licensing of proprietary software, and implementation services. Revenue is recognized when all of the following conditions are met: (i) Persuasive evidence of an arrangement exists; (ii) Delivery has occurred or services have been rendered; (iii) The price to the customer is fixed or determinable; and (iv) Collectability is reasonably assured (or probable under ASC 985, Software) . Revenues are reported net of incentives, rebates, discounts and amortization of upfront payments to customers for licenses. Sales taxes, gaming taxes and other taxes of a similar nature are presented on a net basis (excluded from revenue). Amounts billed prior to completing the earnings process are deferred until revenue recognition criteria is met. Service revenue Service revenue is derived from the following types of arrangements: Operating contracts Certain of the Company’s revenue, primarily revenue from the Italy segment and to a lesser extent the North America Lottery segment, is derived from concessions or LMAs (“operating contracts”). Under operating contracts, the Company manages 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 arrangements where the Company is performing services on behalf of the government and the government is considered the Company’s customer, revenue is recognized net of prize payments, taxes, retailer commissions and remittances to state authorities, because the Company is acting as an agent to the authorities. In arrangements where the Company’s customers are the end players and/or retailers, the Company records revenue net of prizes and taxes only, and records the retailer commissions as a cost of service, because the Company is acting as the principal. The Company also provides sports pools and sports betting services. Under sports pools arrangements, the Company manages the sports pool where the sports pool prizes are divided among those players who select the correct outcome. There are no odds involved in sports pools and each winner’s payoff depends on the number of players and the size of the pool. Under sports pools arrangements, the Company collects the wagers, pays prizes, pays a percentage fee to retailers, withholds its fee, and remits the balance to the respective regulatory agency. The Company assumes no risk associated with sports pool wagering. The Company records revenue net of prize payouts, gaming taxes, retailer commissions and remittances to state authorities, because the Company is acting as an agent to the authorities. In sports betting contracts, the Company establishes and assumes the risks related to the odds. Under fixed odds betting, the potential payout is fixed at the time bets are placed and the Company bears the risk of odds setting. The Company is responsible for collecting the wagers, paying prizes, and paying fees to retailers. The Company retains the remaining cash as profits. Under these arrangements, the Company records revenue net, calculated as total wagers less the estimated payout for prizes, because the betting contract is considered a derivative and is required to be recorded at fair value. Taxes are recorded as contra revenue and retailer commissions are shown as expenses. Fees earned under operating contracts are recognized as revenue in the period earned and are classified as service revenue in the consolidated statement of operations when all of the criteria outlined above are met. Under operating contracts, the Company is generally required to pay an upfront license fee. When such upfront payments are made to the Company’s customers, the payment is recorded as a non-current asset and amortized as a reduction of service revenue over the license term. Gaming Operations Gaming operations revenues are generated by providing customers with proprietary land-based gaming equipment, systems, content licensing, and services under a variety of recurring revenue arrangements, including a percentage of coin-in (amounts wagered), a percentage of net win, or a fixed daily/monthly fee. Included in gaming operations 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 games differ from all other games in that a Company-sponsored progressive jackpot increases with every wager until a player wins the top award combination. Casinos with WAP machines pay a percentage of the coin-in (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 and is recorded as a component of the cost of providing the WAP service. Fees earned under gaming operations are recognized as revenue in the period earned and are classified as service revenue in the consolidated statement of operations when all of the criteria outlined above are met. Facilities Management Contracts Under FMCs, the Company constructs, installs, and operates the online system. Under a typical FMC, the Company maintains ownership of the technology and facilities, and is responsible for capital investments throughout the duration of the contract. The FMCs may also include a wide range of support services. These contracts, principally in the North America Lottery segment, generally provide for a variable amount of monthly or weekly service fees paid to the Company directly from the customer based on a percentage of sales. Fees earned under FMCs are recognized as revenue in the period earned, throughout the service period, and are classified as service revenue in the consolidated statement of operations when all of the criteria outlined above are met. Interactive Contracts Interactive revenues are principally generated from online social gaming and online real-money products and services (“IGTi”). Social gaming revenues are generated from the sale of virtual casino chips to players in the online DoubleDown Casino that can be used for additional play or game enhancements. Revenues from player purchases are recognized ratably over the estimated average service period in which the chips are consumed based on historical data analysis. Because DoubleDown is the principal, responsible for substantially all aspects of the casino services and sale of virtual goods to the player, revenues are recorded on a gross basis. Payment processing fees paid to Facebook, Apple and Google on a revenue participation basis are recorded within cost of services. IGTi revenues are generated from online real-money gaming solutions offerings, which encompass gaming systems infrastructure, applications, content licensing, and back office operational support services, including WAP jackpot funding and administration. IGTi solutions are generally provided under revenue sharing arrangements based on a percentage of net win similar to gaming operations discussed above. Other Professional Services Product sales contracts generally include other professional services, which includes telephone support, software maintenance, hardware maintenance, the right to receive unspecified upgrades/enhancements on a when-and-if-available basis, and other professional services. Fees earned for these professional services are generally recognized as revenue in the period earned (i.e., over the support period) and are classified as service revenue in the consolidated statement of operations when all of the criteria outlined above are met. Product Sales Product sales are derived from the following types of arrangements: Sale of Lottery Terminals and Sale of Gaming Machines, including Game Content These arrangements include the sale of gaming machines including game content, non-machine gaming related equipment, licensing and royalty fees, and component parts (including game themes and electronics conversion kits). The Company’s credit terms are predominantly short-term in nature. The Company also grants extended payment terms under contracts where the sale is secured by the related equipment sold. Revenue from the sale of lottery terminals and gaming machines is recognized based upon the contractual terms of each arrangement, but predominantly upon delivery or acceptance. If the sale of lottery terminals and gaming machines include multiple elements, these arrangements are accounted for under Multiple Element Accounting, discussed below. System Sales (Lottery and Gaming) System sale arrangements typically include multiple elements, where the Company constructs, sells, delivers and installs a turnkey system (inclusive of point-of-sale terminals, if applicable) or delivers equipment and licenses the computer software for a fixed price, and the customer subsequently operates the system. System sale arrangements generally include customer acceptance provisions and general rights to terminate the contract if the Company is in breach of the contract. Such arrangements include non-software elements, software, and other professional services. Amounts due to the Company and costs incurred by the Company in implementing the system prior to customer acceptance are deferred. Revenue attributable to the system is classified as product sales in the consolidated statement of operations and is recognized upon customer acceptance as long as there are no substantial doubts regarding collectability. Revenues attributable to other professional services provided subsequent to customer acceptance are classified as service revenue in the consolidated statement of operations in the period earned. Shipping and Handling Shipping and handling reimbursements from customers are included in product sales revenue with the associated costs included in cost of product sales. Multiple Element Arrangements The Company enters into multiple element arrangements in which a customer may purchase both products and services. In some scenarios, all deliverables are considered one element, while other arrangements contain multiple elements. When arrangements contain multiple elements, the Company allocates revenue to each element based on a relative selling price hierarchy. The relative selling price for each element is determined using vendor-specific objective evidence (“VSOE”) if available, third-party evidence (“TPE”) if VSOE is not available, or best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. • VSOE of selling price is based on the price charged when the element is sold separately. Establishing VSOE requires judgment to determine if there is a sufficient quantity of items sold on a stand-alone basis or if there are substantive contractual renewal rates and whether these prices demonstrate an appropriate level of concentration to conclude that VSOE exists. • TPE of selling price is established by evaluating largely interchangeable competitor products or services in stand-alone sales to similar customers. However, as the Company’s products contain a significant element of proprietary technology and the Company’s solutions offer different features and functionality, the comparable pricing of third-party products with similar functionality typically cannot be obtained. • BESP is established considering multiple factors including, but not limited to, market conditions, competitive landscape, internal costs, and gross profit objectives. In some scenarios, contractual pricing may serve as the best estimate given the variability among jurisdictions and customers, while in other scenarios the cost for each deliverable plus a reasonable margin is used as management’s best estimate of selling price. In scenarios where the Company’s products include hardware containing required software that function together to provide the essential functionality of the product, the Company considers both the hardware and required software as “non-software deliverables” and has therefore concluded that such arrangements are not subject to the industry-specific software revenue recognition guidance. The Company recognizes revenue for these arrangements based on ASC 605, Revenue Recognition , and allocates the arrangement consideration based on the relative selling price of the deliverables. In scenarios where the Company’s products include hardware where the software is not considered essential to the functionality of the hardware, the hardware revenue is recognized based on when the revenue recognition criteria is met (i.e., shipment, delivery and/or acceptance) and the software revenue is recognized under the software revenue recognition guidance provided under ASC 985, Software . |
Upfront License Fees | Upfront License Fees The Company periodically makes long-term investments in contracts with customers and obtains licenses to supply products and services to the customers. As consideration, the Company pays license fees, which are classified as other non-current assets in the consolidated balance sheets. Consistent with the guidance in ASC Subtopic 605-50, Customer Payments and Incentives , the Company recognizes the amortization of the license fees as a reduction of service revenue over the estimated useful life of the contract. 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. The Company evaluates these assets for impairment and updates amortization rates on an agreement by agreement basis. The assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. In periods in which payments are made to the customer, the Company classifies the payment as a cash outflow from operating activities in accordance with ASC 230, Statement of Cash Flows . |
Jackpot Accounting | Jackpot Accounting The Company incurs jackpot expense and accrues jackpot liabilities with every wager on devices connected to a WAP system. Only WAP games include Company-sponsored jackpots for which the Company incurs jackpot expense. A portion of the fees paid to the Company is used for the funding and administration of Company-sponsored WAP jackpot payments. Jackpot expense represents the estimated cost to fund jackpots and is recorded to cost of services in the consolidated statement of operations. Changes in estimates for WAP jackpot liabilities and expenses are attributable to regular analysis and evaluation of the following factors: variations in slot play; number of WAP units in service and volume of play; interest rate movements; and the size of WAP jackpots at initial setup or after a WAP jackpot is won. The Company’s WAP jackpots are generally payable in equal annual installments over 20 to 26 years , or immediately in the case of instant wins. 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. Discount rates eligible for use in the lump sum payment calculation vary by jurisdiction and are impacted by market forces and other economic conditions. Jackpot liabilities are composed of payments due to previous winners, as well as amounts due to future winners of WAP 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 WAP jackpot win. If an annuity is subsequently sold and the periodic liability is instead guaranteed by surety bonds or letters of credit, the liability initially funded by an annuity continues to accrete at the same rate. If the periodic liability is not initially funded with an annuity investment, it is discounted and accreted using the risk-free rate (i.e. treasury rate) at the time of the WAP jackpot win. Liabilities due to future winners are recorded at the present value of the estimated amount of WAP jackpots not yet won. The Company estimates the present value of future winner liabilities using current market rates (prime, treasury, or agency, as applicable), weighted with historical lump sum payout election ratios. The most recent historical patterns indicate that approximately 90% of winners will elect the lump sum payment option. Additionally, the Company estimates the current portion of future winner liabilities based on historical experience with winner payment elections, in conjunction with the theoretical projected number of WAP jackpots. |
Restricted Cash and Investments | Restricted Cash and Investments The Company is 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. In certain cases, regulators have allowed for surety bonds or letters of credit in lieu of restricted cash. Restricted amounts are based primarily on the WAP jackpot amount displayed to slot players and vary by jurisdiction. Compliance with restricted cash and investment or assurance requirements for jackpot funding is reported to gaming authorities in various jurisdictions. Additionally, restricted cash is maintained for interactive online player deposits, as well as collections on factored and serviced receivables not yet paid through to the third-party owner. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are composed of cash at banks and on-hand, and short-term highly liquid investments with a maturity of ninety days or less. Cash equivalents are stated at fair value. |
Allowance for Credit Losses | Allowance for Credit Losses The Company maintains an allowance for credit losses for the estimated probable losses on uncollectible trade and customer financing receivables. The allowance is estimated based upon the credit-worthiness of the Company’s customers, historical experience, aging analysis, as well as current market and economic conditions. Receivables are written off against these allowances in the period they are determined to be uncollectible. The Company determines its allowances for credit losses on customer financing receivables based on two classes: contracts and notes. Contracts include extended payment terms granted to qualifying customers for periods from one to five years and are typically secured by the related products sold. Notes consist of development financing loans granted to select customers to assist in the funding of new or expanding gaming facilities, generally under terms of one to seven years, and are secured by the developed property and/or other customer assets. Customer financing interest income is recognized based on market rates prevailing at issuance. |
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. Legal costs are expensed as incurred. |
Redeemable Non-Controlling Interests | Redeemable Non-Controlling Interests Upon issuance, redeemable non-controlling interests are generally recorded at fair value. Subsequent to issuance, redeemable non-controlling interests are reported at their redemption value no later than the date they become redeemable by the holder. |
Income Taxes | Income Taxes The Company records a tax provision for the anticipated tax consequences of its reported operating results. The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to the taxable income in effect for the years in which those assets and liabilities are expected to be realized and settled. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based upon the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Management believes it is more likely than not that forecasted income, including income that may be generated as a result of certain tax planning strategies, together with future reversals of existing taxable temporary differences, will be sufficient to fully recover the deferred tax assets not otherwise subject to a valuation allowance. In the event that the Company determines all or part of the deferred tax assets are not realizable in the future, the Company will record an adjustment to the valuation allowance that would be charged to earnings in the period such determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of GAAP and complex tax laws. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "Tax Act") was enacted into law in the United States and the new legislation contains several key tax provisions that affected the Company, including a one-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21% effective January 1, 2018, among others. The Company is required to recognize the effect of the tax law changes in the period of enactment, such as determining the transition tax, re-measuring U.S. deferred tax assets and liabilities as well as reassessing the net realizability of deferred tax assets and liabilities. In December 2017, the United States Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act ("SAB 118"), which allows the Company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the Tax Act was passed late in the fourth quarter of 2017, and ongoing guidance and accounting interpretation is expected over the next 12 months, the Company considers the accounting of the transition tax, deferred tax re-measurements, global intangible low-taxed income ("GILTI") and other items to be incomplete due to the forthcoming guidance and the Company's ongoing analysis of final year-end data and tax positions. The Company expects to complete its analysis within the measurement period in accordance with SAB 118. Refer to Note 14, Income Taxes, for additional information. |
Acquisitions and Intangible Assets Including Goodwill | Acquisitions and Intangible Assets Including Goodwill The Company accounts for acquired businesses using the acquisition method and accordingly, the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree are recorded at their acquisition date fair values. Goodwill represents the excess of the purchase price, including the fair value of any contingent consideration, over the fair value of the net assets acquired, including the amount assigned to identifiable intangible assets. The primary drivers that generate goodwill are the value of synergies between the acquired businesses and the Company and the acquired assembled workforce, neither of which qualifies as a separately identifiable intangible asset. Acquisition and disposition related costs are included in transaction (income) expense, net in the consolidated statements of operations. Transaction (income) expense, net is composed of transaction costs on significant business combinations and significant gains and losses incurred on disposals of group entities or businesses. The results of operations of acquired businesses are included in the consolidated financial statements from the date control is obtained. The fair value of identifiable intangible assets is based on significant judgments made by the Company, including the selection of the appropriate valuation methodologies and the determination of the economic lives of the assets acquired. These estimates and assumptions are based on historical and industry experience, information obtained from management of the acquired business, and also include, but are not limited to, future expected cash flows earned from the identified intangible assets and discount rates applied in determining the present value of those cash flows. Unanticipated events and circumstances may occur that could affect the accuracy or validity of such assumptions, estimates or actual results. Acquired identifiable intangible assets are amortized on a straight-line basis over their estimated economic lives. Amortization of acquired software-related intangibles is included in cost of services and cost of product sales and amortization of other acquired intangible assets is included in selling, general and administrative expenses in the consolidated statement of operations. |
Impairment | Impairment Goodwill and other indefinite-lived intangible assets are tested at least annually, in the fourth quarter, for impairment and whenever changes in circumstances indicate an impairment may exist. Goodwill is tested at the reporting unit level, which is one level below or the same level as an operating segment. The process of evaluating the potential impairment related to goodwill and other indefinite-lived intangible assets requires the application of significant judgment. If an event occurs that would cause revisions to the estimates and assumptions used in analyzing the value of goodwill and other indefinite-lived intangible assets, the revision could result in a non-cash impairment loss that could have a material impact on the Company’s financial results. Long-lived assets, other than goodwill and other indefinite-lived intangible assets, are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The impairment test is based on discounted cash flows and, if impaired, the asset is written down to fair value. If an event occurs that requires revised estimates and assumptions previously used in analyzing the value of long-lived assets, other than goodwill and indefinite-lived intangible assets, that revision could result in a non-cash impairment loss that could have a material impact on the Company’s financial results. |
Depreciation and Amortization | Depreciation and Amortization Systems, equipment and other assets relating to contracts and property, plant and equipment 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, including planned maintenance, are expensed as incurred. Definite-lived intangible assets are carried at cost and amortized over their estimated useful lives on a straight-line basis. |
Research and Development and Capitalized Software Development Costs | Research and Development and Capitalized Software Development Costs Research and development (“R&D”) costs are expensed as incurred. R&D costs include salaries and benefits, stock-based compensation, consultants' fees, facilities-related costs, material costs, depreciation and travel. Costs incurred in the development of the Company’s externally-sold software products are expensed as incurred, except certain software development costs eligible for capitalization. Material software development costs incurred subsequent to establishing technological feasibility and through the general release of the software products are capitalized. Technological feasibility is demonstrated by the completion of a detailed program design or working model, if no program design is completed. Capitalized costs are amortized to cost of product sales over the products’ estimated economic life. Costs incurred in the development of software to be used only for services provided to customers are capitalized as internal-use software and amortized over the useful life to cost of services. Costs incurred in the development of software to be used only for internal use are capitalized as internal-use software and amortized over the useful life to selling, general and administrative expenses. |
Stock-Based Compensation | 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, based on the estimated fair value of the award and recognized as expense, net of estimated forfeitures, over the vesting period. For awards that contain only a service vesting feature, compensation cost is recognized on a straight-line basis over the awards’ vesting period. For awards with a performance condition, when achievement of the performance condition is deemed probable, compensation cost is recognized on a graded-vesting basis over the awards’ expected vesting period. |
Advertising | Advertising Advertising costs are expensed as incurred. Advertising expense was $111.9 million , $151.6 million and $130.1 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
New Accounting Standards - Recently Adopted and Not Yet Adopted | New Accounting Standards - Recently Adopted In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2017-09, Compensation-Stock Compensation (Topic 718) - Scope of Modification Accounting. The amended guidance clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. The amended guidance is effective prospectively for annual periods beginning on or after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The Company adopted the new standard prospectively on May 10, 2017. The adoption did not have a material impact on the consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The amended guidance simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. In accordance with the amended guidance, the Company will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying value, and an impairment loss will be recognized for the amount by which the carrying value exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit. The amended guidance is effective for the Company in the first quarter of 2020 with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017, and must be applied prospectively. Given the simplified nature of the new standard, the Company adopted it prospectively on January 1, 2017 and applied the guidance to its interim goodwill impairment test as discussed in Note 10, Goodwill . New Accounting Standards - Not Yet Adopted In November 2017, the FASB issued ASU No. 2017-14, Income Statement - Reporting Comprehensive Income (Topic 22), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606) . The new guidance amends portions of Topics 22, 605 and 606 to refer to guidance within ASC 606. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact and timing of adopting this guidance. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) . The new guidance expands and refines hedge accounting for both financial and non-financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact and timing of adopting this guidance. In February 2017, the FASB issued ASU No. 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets . The new guidance clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in-substance non-financial asset. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The new guidance clarifies the definition of a business in order to allow for the evaluation of whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . The amended guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amended guidance is effective for the Company in the first quarter of 2018 with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . The new guidance reduces diversity in practice in financial reporting by clarifying certain existing principles in the Statement of Cash Flows. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326). The new guidance replaces the incurred loss impairment methodology in current 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, the Company will be 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. The new guidance will be effective for the Company beginning January 1, 2020, with early adoption permitted beginning January 1, 2018. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the impact and timing of adopting this guidance. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The amended guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. The adoption of this guidance is expected to result in a significant portion of the Company's operating leases, where the Company is the lessee, to be recognized on its consolidated balance sheet. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The amended guidance is effective for the Company in the first quarter of 2019 with early adoption permitted. The Company is currently evaluating the impact and timing of adopting this guidance. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance makes improvements specifically around recognition and measurement of financial assets and liabilities. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance. In May 2014, the FASB issued ASU No. 2014-09 (Topic 606), Revenue from Contracts with Customers . The amended guidance, combined with all subsequent amendments (collectively "ASU 2014-09"), outlines a single comprehensive revenue model in accounting for revenue from contracts with customers. ASU 2014-09 supersedes existing revenue recognition guidance under GAAP, including industry-specific guidance, and replaces it with a five-step revenue model with a core principle to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Under ASU 2014-09, more judgment and estimates will be required within the revenue recognition process than required under existing GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for the Company in the first quarter of 2018. The Company will adopt this guidance using a modified retrospective application approach which results in a cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. The Company is currently evaluating the impact of adopting this guidance by operating segment and revenue type. Given the comprehensive nature of the standard, the Company has already taken significant steps to identify the impact on its consolidated financial results. The Company has completed an evaluation by revenue type to identify potential differences between current accounting policies and ASU 2014-09. Additionally, the Company has engaged a third-party to assist in its evaluation of customer contracts, based on inherent complexity, to identify the attributes that could result in a different accounting treatment under ASU 2014-09. Based on the evaluations completed, ASU 2014-09 is not expected to change the revenue recognition practices for most of the Company’s service revenue; however, it is expected to result in some differences regarding the timing of revenue recognition for the Company’s product sales. Additionally, the new standard is expected to result in the reclassification of the Company’s jackpot expense from cost of services to a reduction of service revenue on the consolidated statements of operations. For 2017, such amounts were approximately $64.0 million . The Company does not currently anticipate significant changes to its business processes and systems to support the adoption of the new guidance, and the Company is currently assessing the impact on its internal controls. The Company will continue to monitor and assess the impact of any changes to the standard and interpretations as they become available. The Company does not currently expect that any other recently issued accounting guidance will have a significant effect on its consolidated financial statements. |
Description of Business and R33
Description of Business and Restatement and Revision of Consolidated Statements of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Impact of the Restatements in the 2016 Consolidated Financial Statements | The impact of the restatement in the 2016 consolidated statement of cash flows is as follows ($ thousands): For the year ended December 31, 2016 As Reported Adjustment As Restated Inventories (61,026 ) (15,295 ) (76,321 ) Upfront Italian license fees — (665,260 ) (665,260 ) Net cash flows provided by operating activities 961,887 (680,555 ) 281,332 Upfront payments to customers (665,260 ) 665,260 — Capital expenditures (557,238 ) 15,295 (541,943 ) Net cash flows used in investing activities (996,540 ) 680,555 (315,985 ) Supplemental Cash Flow Information Upfront payments to customers (179,197 ) 179,197 — Non-cash investing activities, net (255,371 ) 179,197 (76,174 ) The impact of the revision in the 2015 consolidated statement of cash flows is as follows ($ thousands): For the year ended December 31, 2015 As Reported Adjustment As Revised Deferred income tax provision — (149,241 ) (149,241 ) Inventories 72 10,147 10,219 Other assets and liabilities (282,995 ) 122,665 (160,330 ) Net cash flows provided by operating activities 785,997 (16,429 ) 769,568 Capital expenditures (402,634 ) 26,113 (376,521 ) Net cash flows used in investing activities (3,361,523 ) 26,113 (3,335,410 ) Net increase in cash and cash equivalents 344,640 9,684 354,324 Cash and cash equivalents at the beginning of the period 317,106 (9,684 ) 307,422 |
Dispositions and Acquisitions (
Dispositions and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Disposition | On June 1, 2017, the Company sold Double Down Interactive LLC ("DoubleDown") to DoubleU Games Co., Ltd. Details of the transaction are summarized in the table below. ($ thousands) For the year ended Cash proceeds 825,751 Less: Cash divested (1,963 ) Net cash proceeds 823,788 Net book value (772,440 ) Gain on sale 51,348 Selling costs (24,116 ) Gain on sale, net of selling costs 27,232 |
Summary of Final Allocation of Consideration to Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the final allocation of the consideration to the fair values of the assets acquired and liabilities assumed at the Acquisition Date. ($ thousands) Purchase Price Allocation: Cash consideration 3,616,410 Equity consideration 928,884 Total purchase price 4,545,294 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 374,995 Restricted cash 56,656 Trade and other receivables 237,488 Inventories 95,562 Other current assets 361,003 Systems, equipment and other assets related to contracts 126,524 Property, plant and equipment 336,044 Intangible assets 2,960,000 Other non-current assets 628,620 Deferred income tax assets 246,953 Accounts payable (75,814 ) Other current liabilities (379,968 ) Long-term debt, less current portion (1,937,942 ) Deferred income tax liabilities (1,069,833 ) Other non-current liabilities (360,335 ) 1,599,953 Goodwill 2,945,341 |
Schedule of Cash Outflow Associated with the Acquisition | The cash outflow associated with the IGT acquisition is summarized as follows: ($ thousands) Cash payment for IGT shares outstanding 3,572,968 Cash payment for IGT employee stock awards 43,442 3,616,410 Less cash acquired (374,995 ) Net cash outflow 3,241,415 |
Schedule of Fair Values of Acquired Intangible Assets with Weighted Average Useful Lives | The fair values of acquired intangible assets as of the Acquisition Date along with the weighted-average useful lives over which the finite-lived intangibles are being amortized on a straight-line basis (which approximates their economic use) are as follows: ($ thousands) Fair Value Weighted Customer relationships 1,715,000 14.8 Game library 360,000 2.5 Corporate trademarks 340,000 Indefinite Computer software 275,000 9.4 Developed technologies 180,000 3.8 Product trademarks 90,000 7.3 2,960,000 |
Schedule of Unaudited, Pro Forma Financial Information | This pro forma information is provided for illustrative purposes only and is not necessarily indicative of the results that would have been obtained if the acquisition had occurred on the date assumed or that may occur in the future, and does not reflect synergies, integration costs, or other such costs or savings. ($ thousands) For the year ended December 31, 2015 Revenue 5,105,159 Net loss (61,946 ) |
Trade and Other Receivables, 35
Trade and Other Receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Trade and Other Receivables, Net | Trade and other receivables, net are recorded at cost. December 31, 2017 2016 Gross 991,177 1,006,121 Allowance for credit losses (53,323 ) (58,884 ) Net 937,854 947,237 |
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 related to trade receivables: December 31, ($ thousands) 2017 2016 2015 Balance at beginning of year (58,884 ) (76,137 ) (91,819 ) Provisions, net (12,255 ) (13,594 ) (18,883 ) Amounts written off as uncollectible 17,826 29,289 25,703 Foreign currency translation (5,885 ) 1,558 9,263 Other 5,875 — (401 ) Balance at end of year (53,323 ) (58,884 ) (76,137 ) |
Schedule of Receivables Sold | At December 31, 2017 and 2016 , the following receivables had been sold: December 31, 2017 December 31, 2016 (in thousands) euro $ euro $ Scratch & Win 175,848 210,894 144,625 152,449 Commercial services 45,417 54,469 59,334 62,544 221,265 265,363 203,959 214,993 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | December 31, ($ thousands) 2017 2016 Raw materials 156,336 161,911 Work in progress 33,588 39,744 Finished goods 129,621 145,839 319,545 347,494 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets [Abstract] | |
Schedule of Other Current Assets | December 31, ($ thousands) 2017 2016 Customer financing receivables, net 151,360 109,773 Other receivables 65,891 104,689 Prepaid royalties 59,596 65,375 Value added tax receivable 49,962 37,623 Prepaid expenses 30,977 36,838 Other 49,734 70,429 407,520 424,727 |
Schedule of Other Non-Current Assets | December 31, ($ thousands) 2017 2016 Upfront license fees, net: Italian Scratch & Win 1,145,998 257,669 Italian Lotto 812,304 804,142 New Jersey 100,730 109,490 Indiana 14,642 16,038 2,073,674 1,187,339 Prepaid royalties 103,322 138,314 Customer financing receivables, net 74,898 53,962 Prepaid income taxes 72,176 14,309 Other 103,883 103,738 2,427,953 1,497,662 The upfront license fees are being amortized as follows: Upfront License Fee License Term Amortization Start Date Italian Scratch & Win 9 years October 2010 Italian Scratch & Win extension 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 | The allowance for customer financing receivables, net are as follows: December 31, 2017 Allowance for ($ thousands) Gross credit losses Net Current 167,985 (16,625 ) 151,360 Non-current 77,847 (2,949 ) 74,898 245,832 (19,574 ) 226,258 December 31, 2016 Allowance for ($ thousands) Gross credit losses Net Current 114,677 (4,904 ) 109,773 Non-current 56,914 (2,952 ) 53,962 171,591 (7,856 ) 163,735 The following table presents the activity in the allowance for credit losses related to customer financing receivables, net: December 31, ($ thousands) 2017 2016 2015 Balance at beginning of year (7,856 ) (3,888 ) — Provisions, net (5,236 ) (4,481 ) (3,706 ) Amounts written off as uncollectible — — 20 Foreign currency translation (159 ) 513 (59 ) Other (6,323 ) — (143 ) Balance at end of year (19,574 ) (7,856 ) (3,888 ) |
Fair Value of Financial Asset38
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value | The following tables represent the fair value hierarchy for financial assets and liabilities measured at fair value at December 31, 2017 and 2016 : December 31, 2017 ($ thousands) Level 1 Level 2 Level 3 Total Fair Value Restricted Investments 57,465 — — 57,465 Derivative Assets: Foreign Currency Forward Contracts — 501 — 501 Interest Rate Swaps — 479 — 479 Call Option — — 2,638 2,638 Jackpot Investments 459 — — 459 Available-for-Sale Investments 11,991 — — 11,991 Contingent Consideration — — 7,755 7,755 Derivative Liabilities: Foreign Currency Forward Contracts — 4,399 — 4,399 Interest Rate Swaps — 14,953 — 14,953 December 31, 2016 ($ thousands) Level 1 Level 2 Level 3 Total Restricted Investments 46,718 — — 46,718 Derivative Assets: Foreign Currency Forward Contracts — 8,339 — 8,339 Interest Rate Swaps — 1,079 — 1,079 Jackpot Investments 4,184 — — 4,184 Available-for-Sale Investments 12,666 — — 12,666 Contingent Consideration — — 2,241 2,241 Derivative Liabilities: Foreign Currency Forward Contracts — 126 — 126 Interest Rate Swaps — 13,709 — 13,709 |
Schedule of Fair Value Hierarchy for Financial Assets and Liabilities not Measured at Fair Value | The following tables represent the fair value hierarchy for assets and liabilities not measured at fair value at December 31, 2017 and 2016 : December 31, 2017 ($ thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Unrealized Realized Loss Customer financing receivables, net 226,258 — — 225,718 225,718 (540 ) — Available-for-sale investments 12,409 — — 12,409 12,409 — — Goodwill 1,439,867 — — 1,439,867 1,439,867 — (714,000 ) Jackpot liabilities 275,626 — — 268,581 268,581 7,045 — Debt 8,391,647 — 8,974,126 — 8,974,126 (582,479 ) — December 31, 2016 ($ thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Unrealized Customer financing receivables, net 163,735 — — 165,241 165,241 1,506 Available-for-sale investments 14,838 — — 14,838 14,838 — Jackpot liabilities 299,042 — — 291,026 291,026 8,016 Debt 7,872,285 — 8,415,890 — 8,415,890 (543,605 ) |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Presentation of Derivative Amounts | For the year ended December 31, ($ thousands) 2017 2016 2015 Fair Value Hedges: Interest Rate Swaps Effectiveness - Other (expense) income, net (605 ) (540 ) 1,646 Ineffectiveness - Other (expense) income, net 1,032 (1,280 ) 232 Non-Designated Hedges: Foreign Currency Contracts, net Realized (losses) gains - Foreign exchange (loss) gain, net (21,870 ) 16,873 (16,651 ) Cash Flow Hedges: Foreign Currency Contracts, net Realized (losses) gains - Service revenue (1,744 ) 5,218 244 At December 31, 2017 2016 ($ thousands) Assets Liabilities Assets Liabilities Fair Value Hedges: Interest Rate Swaps Non-current financial liabilities — 14,953 — 13,709 Long-term debt — (15,088 ) — (9,123 ) Gross Derivatives — (135 ) — 4,586 Non-Designated Hedges: Foreign Currency Contracts, net Current financial assets 501 — 4,965 — Current financial liabilities — 2,037 — 126 Cash Flow Hedges: Foreign Currency Contracts, net Current financial assets — — 3,374 — Current financial liabilities — 2,362 — — Counterparty Netting: Swap Interest Current financial assets: Interest due from counterparty 479 — 1,079 — Net Derivatives 980 4,264 9,418 4,712 |
Systems, Equipment and Other 40
Systems, Equipment and Other Assets Related to Contracts, net and Property Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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) 2017 2016 2017 2016 Land 547 574 2,542 18,787 Buildings 151,962 121,572 70,389 219,416 Terminals and systems 2,969,848 2,652,742 — — Furniture and equipment 197,610 172,666 241,632 234,458 Contracts in progress 149,245 169,367 — — Construction in progress — — 20,603 36,353 3,469,212 3,116,921 335,166 509,014 Accumulated depreciation (2,035,018 ) (1,917,247 ) (141,443 ) (151,173 ) 1,434,194 1,199,674 193,723 357,841 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill, net | |
Schedule of Changes in Carrying Amount of Goodwill, net | Changes in the carrying amount of goodwill consist of the following: ($ thousands) North America Gaming and Interactive North America Lottery International Italy Total Balance at December 31, 2015 2,626,282 1,217,155 1,535,083 1,451,979 6,830,499 Acquisitions (402 ) 4,374 (64 ) 3,734 7,642 Foreign currency translation — — (7,470 ) (20,381 ) (27,851 ) Other — — — (278 ) (278 ) Balance at December 31, 2016 2,625,880 1,221,529 1,527,549 1,435,054 6,810,012 Impairment loss (714,000 ) — — — (714,000 ) Disposal (473,000 ) — — — (473,000 ) Acquisitions — — 14,890 7,303 22,193 Foreign currency translation — — 6,786 70,949 77,735 Other 987 60 156 (328 ) 875 Balance at December 31, 2017 1,439,867 1,221,589 1,549,381 1,512,978 5,723,815 Balance at December 31, 2016 Cost 2,625,880 1,225,622 1,639,282 1,436,635 6,927,419 Accumulated impairment loss — (4,093 ) (111,733 ) (1,581 ) (117,407 ) 2,625,880 1,221,529 1,527,549 1,435,054 6,810,012 Balance at December 31, 2017 Cost 2,153,867 1,225,682 1,674,381 1,514,777 6,568,707 Accumulated impairment loss (714,000 ) (4,093 ) (125,000 ) (1,799 ) (844,892 ) 1,439,867 1,221,589 1,549,381 1,512,978 5,723,815 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Intangible Assets | Intangible assets at December 31, 2017 and 2016 consist of: December 31, 2017 ($ thousands) Gross Carrying Accumulated Net Book Weighted Average Subject to amortization Customer relationships 2,434,051 956,586 1,477,465 15.2 Computer software and game library 947,207 710,725 236,482 5.6 Trademarks 186,218 47,053 139,165 14.1 Concessions and licenses 300,207 204,533 95,674 10.1 Developed technologies 220,213 155,870 64,343 5.4 Networks 18,806 13,571 5,235 7.0 Sports and horse racing betting rights 132,521 128,888 3,633 6.5 Other 8,660 4,110 4,550 16.1 4,247,883 2,221,336 2,026,547 Not subject to amortization Trademarks 246,913 — 246,913 Total intangible assets, excluding goodwill 4,494,796 2,221,336 2,273,460 December 31, 2016 ($ thousands) Gross Carrying Accumulated Net Book Weighted Average Subject to amortization Customer relationships 2,590,225 809,669 1,780,556 14.8 Computer software and game library 946,150 550,506 395,644 5.7 Trademarks 200,107 35,923 164,184 13.4 Developed technologies 234,420 128,200 106,220 5.4 Concessions and licenses 255,299 153,277 102,022 10.3 Networks 15,689 11,225 4,464 7.0 Sports and horse racing betting rights 115,991 112,060 3,931 6.5 Other 8,654 3,557 5,097 16.1 4,366,535 1,804,417 2,562,118 Not subject to amortization Trademarks 311,913 — 311,913 Total intangible assets, excluding goodwill 4,678,448 1,804,417 2,874,031 |
Schedule of Intangible Assets, not Subject to Amortization | Intangible assets at December 31, 2017 and 2016 consist of: December 31, 2017 ($ thousands) Gross Carrying Accumulated Net Book Weighted Average Subject to amortization Customer relationships 2,434,051 956,586 1,477,465 15.2 Computer software and game library 947,207 710,725 236,482 5.6 Trademarks 186,218 47,053 139,165 14.1 Concessions and licenses 300,207 204,533 95,674 10.1 Developed technologies 220,213 155,870 64,343 5.4 Networks 18,806 13,571 5,235 7.0 Sports and horse racing betting rights 132,521 128,888 3,633 6.5 Other 8,660 4,110 4,550 16.1 4,247,883 2,221,336 2,026,547 Not subject to amortization Trademarks 246,913 — 246,913 Total intangible assets, excluding goodwill 4,494,796 2,221,336 2,273,460 December 31, 2016 ($ thousands) Gross Carrying Accumulated Net Book Weighted Average Subject to amortization Customer relationships 2,590,225 809,669 1,780,556 14.8 Computer software and game library 946,150 550,506 395,644 5.7 Trademarks 200,107 35,923 164,184 13.4 Developed technologies 234,420 128,200 106,220 5.4 Concessions and licenses 255,299 153,277 102,022 10.3 Networks 15,689 11,225 4,464 7.0 Sports and horse racing betting rights 115,991 112,060 3,931 6.5 Other 8,654 3,557 5,097 16.1 4,366,535 1,804,417 2,562,118 Not subject to amortization Trademarks 311,913 — 311,913 Total intangible assets, excluding goodwill 4,678,448 1,804,417 2,874,031 |
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 2018 263,614 2019 250,267 2020 219,808 2021 189,583 2022 166,136 Total 1,089,408 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities December 31, ($ thousands) 2017 2016 Payable to Italian regulator 899,475 179,197 Accrued interest payable 179,230 165,290 Employee compensation 146,891 158,236 Taxes other than income taxes 128,703 123,267 Accrued expenses 121,181 127,092 Current financial liabilities 113,217 108,915 Jackpot liabilities 84,250 95,574 Deferred revenue 48,222 80,528 Advance payments from customers 28,874 25,473 Other 30,832 33,473 1,780,875 1,097,045 |
Schedule of Other Non-Current Liabilities | Other non-current liabilities December 31, ($ thousands) 2017 2016 Jackpot liabilities 191,376 203,468 Deferred revenue 60,831 66,220 Finance leases 60,766 62,142 Reserve for uncertain tax positions 34,447 14,733 Royalties payable 32,997 37,681 Italian staff severance fund 12,577 11,454 Other 53,119 48,858 446,113 444,556 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | December 31, ($ thousands) 2017 2016 6.250% Senior Secured Notes due 2022 1,470,075 1,472,150 6.500% Senior Secured Notes due 2025 1,086,913 1,085,537 4.750% Senior Secured Notes due 2023 1,008,601 884,917 4.125% Senior Secured Notes due 2020 833,655 730,465 5.625% Senior Secured Notes due 2020 595,767 593,954 4.750% Senior Secured Notes due 2020 585,171 509,050 7.500% Senior Secured Notes due 2019 148,231 521,894 5.500% Senior Secured Notes due 2020 125,709 126,294 5.350% Senior Secured Notes due 2023 61,082 61,187 6.625% Senior Secured Notes due 2018 — 521,556 Senior Secured Notes, long-term 5,915,204 6,507,004 Term Loan Facility due 2023 1,785,361 — Revolving Credit Facilities due 2021 76,880 516,529 Term Loan Facilities due 2019 — 839,552 Long-term debt, less current portion 7,777,445 7,863,085 6.625% Senior Secured Notes due 2018 599,114 — Other — 77 Current portion of long-term debt 599,114 77 Total Debt 8,376,559 7,863,162 |
Reconciliation of Principal Balances of Debt Obligations to the Balance Sheet | The principal balance of each debt obligation and a reconciliation to the consolidated balance sheet follows: December 31, 2017 ($ thousands) Principal Debt issuance cost, net Premium Swap Total 6.250% Senior Secured Notes due 2022 1,500,000 (14,808 ) — (15,117 ) 1,470,075 6.500% Senior Secured Notes due 2025 1,100,000 (13,087 ) — — 1,086,913 4.750% Senior Secured Notes due 2023 1,019,405 (10,804 ) — — 1,008,601 4.125% Senior Secured Notes due 2020 839,510 (5,855 ) — — 833,655 5.625% Senior Secured Notes due 2020 600,000 (4,233 ) — — 595,767 4.750% Senior Secured Notes due 2020 599,650 (14,479 ) — — 585,171 7.500% Senior Secured Notes due 2019 144,303 — 3,708 220 148,231 5.500% Senior Secured Notes due 2020 124,143 — 1,757 (191 ) 125,709 5.350% Senior Secured Notes due 2023 60,567 — 515 — 61,082 Senior Secured Notes, long-term 5,987,578 (63,266 ) 5,980 (15,088 ) 5,915,204 Term Loan Facility due 2023 1,798,950 (13,589 ) — — 1,785,361 Revolving Credit Facilities due 2021 95,000 (18,120 ) — — 76,880 6.625% Senior Secured Notes due 2018 599,650 (536 ) — — 599,114 Total Debt 8,481,178 (95,511 ) 5,980 (15,088 ) 8,376,559 December 31, 2016 ($ thousands) Principal Debt issuance Premium Swap Total 6.250% Senior Secured Notes due 2022 1,500,000 (17,804 ) — (10,046 ) 1,472,150 6.500% Senior Secured Notes due 2025 1,100,000 (14,463 ) — — 1,085,537 4.750% Senior Secured Notes due 2023 895,985 (11,068 ) — — 884,917 4.125% Senior Secured Notes due 2020 737,870 (7,405 ) — — 730,465 5.625% Senior Secured Notes due 2020 600,000 (6,046 ) — — 593,954 4.750% Senior Secured Notes due 2020 527,050 (18,000 ) — — 509,050 7.500% Senior Secured Notes due 2019 500,000 (29 ) 20,733 1,190 521,894 5.500% Senior Secured Notes due 2020 124,143 — 2,418 (267 ) 126,294 5.350% Senior Secured Notes due 2023 60,567 — 620 — 61,187 6.625% Senior Secured Notes due 2018 527,050 (5,494 ) — — 521,556 Senior Secured Notes, long-term 6,572,665 (80,309 ) 23,771 (9,123 ) 6,507,004 Term Loan Facilities due 2019 843,280 (3,728 ) — — 839,552 Revolving Credit Facilities due 2021 540,820 (24,291 ) — — 516,529 Other 77 — — — 77 Total Debt 7,956,842 (108,328 ) 23,771 (9,123 ) 7,863,162 |
Summary of Payments Due Under Significant Contractual Commitments | The Parent must repay the Term Loan Facility in four installments, as detailed below: Due Date Amount (€ thousands) January 25, 2020 320,000 January 25, 2021 320,000 January 25, 2022 320,000 January 25, 2023 540,000 Principal payments for each debt obligation for the next five years and thereafter are as follows: Calendar year ($ thousands) 2018 2019 2020 2021 2022 2023 and Total 6.250% Senior Secured Notes due 2022 — — — — 1,500,000 — 1,500,000 6.500% Senior Secured Notes due 2025 — — — — — 1,100,000 1,100,000 4.750% Senior Secured Notes due 2023 — — — — — 1,019,405 1,019,405 4.125% Senior Secured Notes due 2020 — — 839,510 — — — 839,510 5.625% Senior Secured Notes due 2020 — — 600,000 — — — 600,000 4.750% Senior Secured Notes due 2020 — — 599,650 — — — 599,650 7.500% Senior Secured Notes due 2019 — 144,303 — — — — 144,303 5.500% Senior Secured Notes due 2020 — — 124,143 — — — 124,143 5.350% Senior Secured Notes due 2023 — — — — — 60,567 60,567 Senior Secured Notes, long-term — 144,303 2,163,303 — 1,500,000 2,179,972 5,987,578 Term Loan Facility due 2023 — — 383,776 383,776 383,776 647,622 1,798,950 Revolving Credit Facilities due 2021 — — — 95,000 — — 95,000 6.625% Senior Secured Notes due 2018 599,650 — — — — — 599,650 Total Principal Payments 599,650 144,303 2,547,079 478,776 1,883,776 2,827,594 8,481,178 |
Schedule of Senior Secured Notes | The key terms of the Company's senior secured notes (the "Notes"), which are rated Ba2 and BB+ by Moody’s Investor Service (“Moody’s”) and Standard & Poor’s Ratings Services (“S&P”), respectively, are as follows: Description Principal (thousands) Effective Issuer Guarantors Collateral Redemption Interest payments 6.250% Senior Secured Notes due 2022 $1,500,000 6.52% Parent * † + Semi-annually in arrears 6.500% Senior Secured Notes due 2025 $1,100,000 6.71% Parent * † + Semi-annually in arrears 4.750% Senior Secured Notes due 2023 €850,000 4.98% Parent * † + Semi-annually in arrears 4.125% Senior Secured Notes due 2020 €700,000 4.47% Parent * † + Semi-annually in arrears 5.625% Senior Secured Notes due 2020 $600,000 5.98% Parent * † + Semi-annually in arrears 4.750% Senior Secured Notes due 2020 1 €500,000 6.00% Parent * † ++ Annually in arrears 7.500% Senior Secured Notes due 2019 $144,303 5.67% IGT ** †† +++ Semi-annually in arrears 5.500% Senior Secured Notes due 2020 $124,143 4.88% IGT ** †† +++ Semi-annually in arrears 5.350% Senior Secured Notes due 2023 $60,567 5.47% IGT ** †† +++ Semi-annually in arrears 6.625% Senior Secured Notes due 2018 1 €500,000 7.74% Parent * † ++ 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 . + The Parent may redeem in whole or in part at any time prior to (1) the date which is three months prior to maturity with respect to the notes which are due in 2020 and (2) the date which is six months prior to maturity with respect to the notes which are due in 2022, 2023 and 2025 at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. After such dates, 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 these notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. ++ The Parent may redeem in whole but not in part at the greater of (1) 100% of their principal amount together with accrued and unpaid interest, or (2) at an amount specified in the terms and conditions of these notes. 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 redeem in whole or in part at 100% of their principal amount together with accrued and unpaid interest. +++ IGT may redeem in whole but not in part at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. Upon the occurrence of certain events, IGT will be required to offer to repurchase all of these notes at a price equal to 100% of their principal amount together with accrued and unpaid interest. 1 Subject to a 1.25% per annum decrease in the event of an upgrade in ratings by Moody’s and S&P. |
Schedule of Revolving Credit Facilities | The senior facilities agreement (the "RCF Senior Facilities Agreement") provides for the following multi-currency revolving credit facilities (the "Revolving Credit Facilities"): Maximum Amount Available (thousands) Facility Borrowers $1,200,000 Revolving Credit Facility A Parent, IGT and IGT Global Solutions Corporation €725,000 Revolving Credit Facility B Parent and Lottomatica Holding S.r.l. |
Summary of Letters of Credit Outstanding and Weighted Average Annual Cost of Letters of Credit | The following table summarizes the letters of credit outstanding at December 31, 2017 and 2016 and the weighted average annual cost of such letters of credit: Letters of Credit Outstanding ($ thousands) Not under the Revolving Credit Facilities Under the Revolving Credit Facilities Total Weighted Average Annual Cost December 31, 2017 510,962 — 510,962 1.02 % December 31, 2016 827,850 — 827,850 0.94 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) before the Provision for Income Taxes by Jurisdiction | The components of (loss) income before the provision for income taxes, determined by tax jurisdiction, are as follows: For the year ended December 31, ($ thousands) 2017 2016 2015 Italy 479,851 578,221 419,116 United States (1,173,601 ) (355,451 ) (379,425 ) United Kingdom (408,595 ) 87,269 (150,475 ) All other 125,420 13,374 93,753 (976,925 ) 323,413 (17,031 ) |
Provision (Benefit) for Income Taxes | The (benefit from) provision for income taxes consists of: For the year ended December 31, ($ thousands) 2017 2016 2015 Current: Italy 131,155 192,712 168,915 United States 80,140 (16,982 ) (24,434 ) United Kingdom 733 711 (5,097 ) All other 54,823 36,414 48,753 266,851 212,855 188,137 Deferred: Italy 865 (5,837 ) 1,660 United States (175,539 ) (109,139 ) (121,032 ) United Kingdom 4,366 19,232 (16,242 ) All other (125,957 ) (57,905 ) (13,627 ) (296,265 ) (153,649 ) (149,241 ) (29,414 ) 59,206 38,896 |
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 weighted average rate of the United Kingdom statutory main corporation tax rates enacted in each of the Parent’s calendar year reporting periods ( 19.25% in 2017 , 20.00% in 2016 and 20.25% in 2015 ) to (loss) income before the provision for income taxes is as follows: For the year ended December 31, ($ thousands) 2017 2016 2015 (Loss) income before provision for income taxes (976,925 ) 323,413 (17,031 ) United Kingdom statutory tax rate 19.25 % 20.00 % 20.25 % Statutory tax (benefit) expense (188,058 ) 64,682 (3,449 ) Tax Impact of 2017 Tax Act (114,219 ) — — Foreign tax and statutory rate differential (71,050 ) (17,013 ) (48,407 ) Italian allowance for corporate equity (11,761 ) (9,243 ) (6,929 ) Research and development tax credit (5,052 ) (4,980 ) (4,393 ) Tax impact of tax law and rate changes excluding the Tax Act (2,463 ) (8,422 ) (4,746 ) Non-controlling interest (2,205 ) (3,605 ) 8,565 Provision to return adjustments (1,334 ) (6,705 ) (1,434 ) Nondeductible expenses 1,204 2,659 30,244 Tax cost of tax dividends 3,041 4,619 12,888 Foreign withholding and state taxes on unremitted earnings 9,290 — — Foreign tax expense, net of federal benefit 14,500 3,457 9,003 Change in unrecognized tax benefits 20,624 (10,914 ) (15,593 ) IRAP and other state taxes 33,484 36,754 29,697 Change in valuation allowances 58,672 3,610 7,495 Capital gain taxes on sale of DoubleDown 94,303 — — Nondeductible goodwill impairment 137,445 — — Italian tax litigation settlement — 15,256 — Non-taxable gains on investments — (5,880 ) — Italian reorganization tax — — 13,405 Other (5,835 ) (5,069 ) 12,550 (29,414 ) 59,206 38,896 Effective tax rate 3.0 % 18.3 % (228.4 )% |
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) 2017 2016 Deferred tax assets: Net operating losses 241,702 266,547 Provisions not currently deductible for tax purposes 132,365 160,202 Depreciation and amortization 72,101 118,122 Jackpot timing differences 51,438 83,989 Inventory reserves 9,913 15,974 Deferred revenue 5,317 9,129 Stock-based compensation 2,402 7,468 Credit carryforwards — 38,618 Other 4,155 15,897 Gross deferred tax assets 519,393 715,946 Valuation allowance (184,554 ) (151,653 ) Net deferred tax assets 334,839 564,293 Deferred tax liabilities: Acquired intangible assets 635,471 1,115,345 Depreciation and amortization 138,764 144,115 Other 10,518 35,381 Total deferred tax liabilities 784,753 1,294,841 Net deferred income tax liability (449,914 ) (730,548 ) The Company’s net deferred income taxes are recorded in the consolidated balance sheets as follows: December 31, ($ thousands) 2017 2016 Deferred income taxes - non-current asset 41,546 31,376 Deferred income taxes - non-current liability (491,460 ) (761,924 ) (449,914 ) (730,548 ) |
Reconciliation of the Beginning and Ending Amount of Valuation Allowance | A reconciliation of the beginning and ending amount of the valuation allowance is as follows: December 31, ($ thousands) 2017 2016 2015 Balance at beginning of year 151,653 139,663 77,631 Expiration of tax attributes (25,771 ) — — Net charges to expense 58,672 11,990 62,032 Balance at end of year 184,554 151,653 139,663 |
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: For the year ended December 31, ($ thousands) 2017 2016 2015 Balance at beginning of year 14,340 37,370 6,296 Current year acquisition — — 49,934 Additions to tax positions - current year 479 423 9,462 Additions to tax positions - prior years 7,503 1,718 — Reductions to tax positions - current year (893 ) (652 ) — Reductions to tax positions - prior years (41 ) (12,755 ) (7,733 ) Settlements — (8,750 ) (5,313 ) Lapses in statutes of limitations (413 ) (3,014 ) (15,276 ) Balance at end of year 20,975 14,340 37,370 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Amounts due for Non-Cancelable Leases | The minimum amounts due for non-cancellable leases at December 31, 2017 are as follows ($ thousands): Year Operating Capital Total 2018 76,779 7,999 84,778 2019 61,258 7,643 68,901 2020 55,782 6,844 62,626 2021 49,881 6,039 55,920 2022 48,485 4,348 52,833 Thereafter 248,389 5,078 253,467 Total minimum payments 540,574 37,951 578,525 Less amount representing interest (10,252 ) Capitalized lease obligation 27,699 |
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, 2017 Current liabilities 84,250 Non-current liabilities 191,376 275,626 |
Schedule of Future Jackpot Payments | Future jackpot payments are due as follows ($ thousands): Year Previous Winners Future Winners Total 2018 40,644 43,460 84,104 2019 32,127 8,674 40,801 2020 28,554 526 29,080 2021 24,190 526 24,716 2022 21,417 526 21,943 Thereafter 115,615 7,886 123,501 Future jackpot payments due 262,547 61,598 324,145 Unamortized discounts (48,519 ) Total jackpot liabilities 275,626 |
Schedule of Potential Commitments for Bonds Outstanding | ($ thousands) Total bonds Performance bonds 447,014 Wide Area Progressive bonds 266,218 Bid and litigation bonds 8,600 All other bonds 24,827 746,659 The following table provides information related to potential commitments for bonds outstanding at December 31, 2017 : |
Redeemable Non-Controlling In47
Redeemable Non-Controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Concession Payments | The upfront concession payments made in 2016 and 2017 were as follows: Year Paid € $ 2016 600.0 665.3 2017 170.0 185.4 770.0 850.7 |
Schedule of Consolidated Variable Interest Entity | Ownership in Lottoitalia at December 31, 2017 and 2016 is as follows: Name of entity % Ownership Lottomatica S.p.A. 61.50 % Italian Gaming Holding a.s. 32.50 % Arianna 2001 4.00 % Novomatic Italia 2.00 % |
Summary of Reconciliation of Activity in Redeemable Non-Controlling Interest | The following table reconciles the activity in IGH's redeemable non-controlling interest in 2017 and 2016 : For the year ended ($ thousands) 2017 2016 Balance at beginning of year 223,141 — Capital contribution 107,457 215,684 Income allocated to IGH 65,665 7,457 Dividend paid (7,307 ) — Return of capital (32,039 ) — Balance at end of year 356,917 223,141 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Shares of Common Stock Outstanding | Ordinary shares of common stock outstanding were as follows: December 31, 2017 2016 2015 Balance at beginning of year 202,285,166 200,244,239 172,792,526 Shares issued under restricted stock award plans 947,709 1,080,532 1,118,970 Shares issued upon exercise of stock options 213,697 960,395 744,374 Shares issued upon acquisition of IGT — — 45,322,614 GTECH rescission shares — — (19,734,245 ) Balance at end of year 203,446,572 202,285,166 200,244,239 |
Schedule of Declared Cash Dividends | The Company declared cash dividends per share during the periods presented as follows: Per share amount ($) 2017 2016 2015 First Quarter 0.20 0.20 — Second Quarter 0.20 0.20 — Third Quarter 0.20 0.20 0.20 Fourth Quarter 0.20 0.20 0.20 Total cash dividends declared 0.80 0.80 0.40 |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following table details the changes in Accumulated Other Comprehensive Income (“AOCI”): Unrealized Gain (Loss) on: Less: OCI attributable to non-controlling interests Total AOCI attributable to IGT PLC Foreign Currency Translation Cash Flow Hedges Hedge of Net Investment Available for Sale Securities Defined Benefit Plans Share of OCI of Associate Balance at December 31, 2014 158,131 971 (4,499 ) 5,019 (4,356 ) (748 ) 685 155,203 Change during period 60,079 (594 ) — (3,046 ) 395 — 304 57,138 Reclassified to operations — (244 ) — — — — — (244 ) Tax effect (14,024 ) 254 (64 ) (3,259 ) (166 ) — — (17,259 ) OCI 46,055 (584 ) (64 ) (6,305 ) 229 — 304 39,635 Balance at December 31, 2015 204,186 387 (4,563 ) (1,286 ) (4,127 ) (748 ) 989 194,838 Change during period (49,881 ) 8,351 — 8,772 (682 ) — (203 ) (33,643 ) Reclassified to operations 118 (5,218 ) — — — — — (5,100 ) Tax effect 373 (615 ) (15 ) 4,723 82 — — 4,548 OCI (49,390 ) 2,518 (15 ) 13,495 (600 ) — (203 ) (34,195 ) Balance at December 31, 2016 154,796 2,905 (4,578 ) 12,209 (4,727 ) (748 ) 786 160,643 Change during period 182,791 (6,610 ) — (678 ) (120 ) — 463 175,846 Reclassified to operations — 1,744 — — — — — 1,744 Tax effect 559 1,312 — 57 8 — — 1,936 OCI 183,350 (3,554 ) — (621 ) (112 ) — 463 179,526 Balance at December 31, 2017 338,146 (649 ) (4,578 ) 11,588 (4,839 ) (748 ) 1,249 340,169 |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Schedule of Material Non-Controlling Interests | At December 31, 2017 the Company’s material non-controlling interests were as follows: Name of subsidiary % Ownership held by the Company Lotterie Nazionali S.r.l. ("LN") 64.00 % Northstar New Jersey Lottery Group, LLC 82.31 % |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The resulting changes in operating income (loss) by segment for the years ended December 31, 2016 and 2015 were as follows ($ thousands): For the year ended North North International Italy Segment Corporate Purchase Total As previously presented 344,125 300,394 144,125 585,517 1,374,161 (245,600 ) (468,125 ) 660,436 As currently presented 349,275 299,182 142,200 583,504 1,374,161 (245,600 ) (468,125 ) 660,436 Change 5,150 (1,212 ) (1,925 ) (2,013 ) — — — — For the year ended North North International Italy Segment Corporate Purchase Total As previously presented 294,256 182,615 164,949 554,937 1,196,757 (292,371 ) (364,430 ) 539,956 As currently presented 295,531 181,813 164,190 555,223 1,196,757 (292,371 ) (364,430 ) 539,956 Change 1,275 (802 ) (759 ) 286 — — — — Segment information is as follows ($ thousands): For the year ended North America Gaming and Interactive North America Lottery International Italy Operating Segment Total Corporate Support Purchase Accounting Total Service revenue 780,633 1,093,048 557,049 1,703,901 4,134,631 1,203 722 4,136,556 Product sales 377,065 92,174 332,015 1,149 802,403 — — 802,403 Total revenue 1,157,698 1,185,222 889,064 1,705,050 4,937,034 1,203 722 4,938,959 Operating income (loss) 278,963 289,025 163,799 478,540 1,210,327 (197,089 ) (1,064,330 ) (51,092 ) Depreciation and amortization 81,355 129,517 66,745 161,484 439,101 11,554 351,785 802,440 Expenditures for long-lived assets (147,175 ) (204,104 ) (77,815 ) (188,013 ) (617,107 ) (3,964 ) — (621,071 ) Long-lived assets (at year end) 271,833 666,627 292,962 396,495 1,627,917 — — 1,627,917 Total assets (at year end) 3,683,258 2,460,676 3,038,806 4,900,130 14,082,870 1,076,338 — 15,159,208 For the year ended North North International Italy Operating Segment Corporate Purchase Total Service revenue 975,206 1,128,306 512,668 1,759,843 4,376,023 — (437 ) 4,375,586 Product sales 398,248 65,269 314,637 1,295 779,449 — (1,139 ) 778,310 Total revenue 1,373,454 1,193,575 827,305 1,761,138 5,155,472 — (1,576 ) 5,153,896 Operating income (loss) 349,275 299,182 142,200 583,504 1,374,161 (245,600 ) (468,125 ) 660,436 Depreciation and amortization 86,380 143,941 50,879 150,736 431,936 12,481 438,052 882,469 Expenditures for long-lived assets (132,297 ) (148,641 ) (97,957 ) (91,834 ) (470,729 ) (3,460 ) — (474,189 ) Long-lived assets (at year end) 394,233 603,927 284,276 275,079 1,557,515 — — 1,557,515 Total assets (at year end) 5,577,491 2,396,557 3,021,448 3,724,856 14,720,352 339,810 — 15,060,162 For the year ended North North International Italy Operating Segment Corporate Purchase Total Service revenue 780,169 992,684 512,014 1,702,184 3,987,051 — (9,358 ) 3,977,693 Product sales 321,624 52,986 341,064 1,872 717,546 — (6,183 ) 711,363 Total revenue 1,101,793 1,045,670 853,078 1,704,056 4,704,597 — (15,541 ) 4,689,056 Operating income (loss) 295,531 181,813 164,190 555,223 1,196,757 (292,371 ) (364,430 ) 539,956 Depreciation and amortization 71,886 154,619 45,855 152,293 424,653 13,123 342,052 779,828 Expenditures for long-lived assets (82,834 ) (107,854 ) (93,666 ) (22,422 ) (306,776 ) (11,618 ) — (318,394 ) Long-lived assets (at year end) 403,482 616,760 236,043 220,910 1,477,195 — — 1,477,195 Total assets (at year end) 6,077,680 2,476,112 2,950,807 2,855,797 14,360,396 754,296 — 15,114,692 |
Schedule of Revenue from External Customers Based on Geographical Location | Revenue from external customers, which is based on the geographical location of the Company’s customers, is as follows: December 31, ($ thousands) 2017 2016 2015 United States 2,195,791 2,472,013 2,030,251 Italy 1,728,472 1,778,750 1,712,583 Canada 100,315 89,938 105,377 United Kingdom 74,567 82,271 93,839 All other 839,814 730,924 747,006 Total 4,938,959 5,153,896 4,689,056 |
Schedule of Long-Lived Assets Based on Geographical Location | Long-lived assets based on the geographical location of the assets are as follows: December 31, ($ thousands) 2017 2016 United States 938,925 989,374 Italy 366,990 254,052 United Kingdom 43,379 47,388 All other 278,623 266,701 Total 1,627,917 1,557,515 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity and Related Information | A summary of the Company’s stock option activity and related information is as follows: Weighted Average Stock Options Exercise Price Per Share ($) Remaining Contractual Term (in years) Aggregate Intrinsic Value ($ thousands) Outstanding at January 1, 2017 3,747,268 19.06 Granted — — Forfeited (442,138 ) 20.30 Exercised (1,112,423 ) 17.21 Expired — — Outstanding at December 31, 2017 2,192,707 19.76 1.97 At December 31, 2017: Vested and expected to vest 2,192,707 19.76 1.97 14,811 Exercisable 1,942,707 20.30 0.49 12,066 |
Schedule of Key Inputs and Assumptions in Stock Option Valuation Models | The weighted average grant date fair value of stock options granted during 2015 was $2.31 per share. 2015 Valuation model Monte Carlo Exercise price ($) 15.53 Expected option term (in years) 2.38 Expected volatility of the Company’s stock (%) 35.00 Risk-free interest rate (%) 1.06 Dividend yield (%) 5.15 |
Summary of Stock Award Activity and Related Information | A summary of the Company’s 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, 2017 4,321,197 15.04 117,551 19.14 Granted 1,723,730 17.74 117,745 21.12 Vested (1,329,031 ) 10.65 (129,073 ) 19.41 Forfeited (632,397 ) 16.55 — — Nonvested at December 31, 2017 4,083,499 16.35 106,223 21.00 At December 31, 2017: Unrecognized cost for nonvested awards ($ thousands) 375 878 Weighted average future recognition period (in years) 0.29 0.39 |
Schedule of Fair Value of Stock Awards Granted Including Weighted Average Grant Date Fair Value | Details of the grants are as follows: 2017 2016 2015 PSUs granted during the year 1,723,730 1,788,050 2,204,963 Weighted average grant date fair value ($) 17.74 21.08 7.58 RSUs granted during the year 117,745 117,551 1,538,583 Weighted average grant date fair value ($) 21.12 19.14 19.52 |
Schedule of Stock-Based Compensation Expense | Total compensation cost for the Company’s stock-based compensation plans is recorded based on the employees’ respective functions as detailed below. For the year ended December 31, ($ thousands) 2017 2016 2015 Cost of services 26 1,302 602 Cost of product sales (8 ) 330 675 Selling, general and administrative 4,628 22,304 15,700 Research and development 58 2,410 4,223 4,704 26,346 21,200 Transaction (income) expense, net — — 14,867 Stock-based compensation expense before income taxes 4,704 26,346 36,067 Income tax benefit 975 7,846 15,349 Total stock-based compensation, net of tax 3,729 18,500 20,718 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Expense, Nonoperating [Abstract] | |
Components of Other Expense | The components of other (expense) income, net are as follows: For the year ended December 31, ($ thousands) 2017 2016 2015 Tender premium (37,793 ) — — Unamortized debt premium 12,394 — — Swap 705 — — Fees (1,039 ) — — 7.500% Senior Secured Notes due 2019 (25,733 ) — — Unamortized debt issuance costs (7,307 ) — — Revolving Credit Facilities due 2021 (7,307 ) — — Third-party fees and costs (2,380 ) — — Term Loan Facility due 2023 (2,380 ) — — Gain (loss) on interest rate swaps 3,827 (5,220 ) — 6.250% Senior Secured Notes due 2022 3,827 (5,220 ) — Tender premium — — (73,376 ) Unamortized debt issuance cost — — (4,295 ) Fees — — (2,040 ) Capital Securities — — (79,711 ) Unamortized debt issuance cost — — (34,526 ) Fees — — (3,640 ) Bridge Facility — — (38,166 ) Total debt related (31,593 ) (5,220 ) (117,877 ) Gain on sale of available-for-sale investment — 20,365 — Other (1,800 ) 3,220 (4,418 ) (33,393 ) 18,365 (122,295 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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) earnings per share: For the year ended December 31, ($ and shares in thousands, except per share amounts) 2017 2016 2015 Numerator: Net (loss) income attributable to IGT PLC (1,068,576 ) 211,337 (75,574 ) Denominator: Weighted-average shares, basic 203,130 201,511 192,398 Incremental shares under stock based compensation plans — 703 — Weighted-average shares, diluted 203,130 202,214 192,398 Basic (loss) earnings per share attributable to IGT PLC (5.26 ) 1.05 (0.39 ) Diluted (loss) earnings per share attributable to IGT PLC (5.26 ) 1.05 (0.39 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Amounts Receivable from and Payable to Related Parties | Amounts receivable from and payable to related parties are as follows: December 31, ($ thousands) 2017 2016 Trade receivables 65 71 De Agostini Group 65 71 Trade receivables 7,374 10,970 Autogrill S.p.A. 7,374 10,970 Trade receivables 6,888 1,597 OPAP S.A. 6,888 1,597 Trade receivables 176 — Ringmaster S.r.l. 176 — Total related party receivables 14,503 12,638 Tax related payables 19,673 72,916 Trade payables 10,974 27,578 De Agostini Group 30,647 100,494 Trade payables 915 365 Autogrill S.p.A. 915 365 Trade payables 6,404 2,454 Ringmaster S.r.l. 6,404 2,454 Trade payables 340 — OPAP S.A. 340 — Total related party payables 38,306 103,313 |
Schedule of Transactions with Related Parties | The following table sets forth transactions with related parties: For the year ended December 31, ($ thousands) 2017 2016 2015 Service revenue and product sales OPAP S.A. 37,512 4,437 4,036 Ringmaster S.r.l. 136 156 239 Autogrill S.p.A. 55 59 6,060 De Agostini Group 20 19 21 37,723 4,671 10,356 Operating costs Ringmaster S.r.l. 10,940 9,535 12,651 Assicurazioni Generali S.p.A. 3,765 3,102 3,003 Autogrill S.p.A. 2,391 678 — Willis Towers Watson 550 550 5,000 OPAP S.A. 11 87 — De Agostini Group 120 57 569 17,777 14,009 21,223 |
Description of Business and R55
Description of Business and Restatement and Revision of Consolidated Statements of Cash Flows - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)installment | Dec. 31, 2015USD ($) | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Upfront payments to customers | $ 244,698 | $ 665,260 | $ 0 |
Number of upfront payment installments | installment | 2 | ||
Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Upfront payments to customers | $ 665,260 |
Description of Business and R56
Description of Business and Restatement and Revision of Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Deferred income tax provision | $ (296,265) | $ (153,649) | $ (149,241) |
Inventories | 51,406 | (76,321) | 10,219 |
Other assets and liabilities | (118,923) | (21,736) | (160,330) |
Upfront Italian license fees | (244,698) | (665,260) | 0 |
Net cash provided by operating activities | 685,928 | 281,332 | 769,568 |
Upfront payments to customers | 0 | ||
Capital expenditures | (698,010) | (541,943) | (376,521) |
Net cash provided by (used in) investing activities | 298,665 | (315,985) | (3,335,410) |
Net increase in cash and cash equivalents | 737,621 | (346,792) | 354,324 |
Cash and cash equivalents at the beginning of the period | 294,094 | 627,484 | 307,422 |
Supplemental Cash Flow Information [Abstract] | |||
Upfront payments to customers | 0 | ||
Non-cash investing activities, net | $ (62,858) | (76,174) | (961,763) |
As Reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Deferred income tax provision | 0 | ||
Inventories | (61,026) | 72 | |
Other assets and liabilities | (282,995) | ||
Upfront Italian license fees | 0 | ||
Net cash provided by operating activities | 961,887 | 785,997 | |
Upfront payments to customers | (665,260) | ||
Capital expenditures | (557,238) | (402,634) | |
Net cash provided by (used in) investing activities | (996,540) | (3,361,523) | |
Net increase in cash and cash equivalents | 344,640 | ||
Cash and cash equivalents at the beginning of the period | 317,106 | ||
Supplemental Cash Flow Information [Abstract] | |||
Upfront payments to customers | (179,197) | ||
Non-cash investing activities, net | (255,371) | ||
Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Deferred income tax provision | (149,241) | ||
Inventories | (15,295) | 10,147 | |
Other assets and liabilities | 122,665 | ||
Upfront Italian license fees | (665,260) | ||
Net cash provided by operating activities | (680,555) | (16,429) | |
Upfront payments to customers | 665,260 | ||
Capital expenditures | 15,295 | 26,113 | |
Net cash provided by (used in) investing activities | 680,555 | 26,113 | |
Net increase in cash and cash equivalents | 9,684 | ||
Cash and cash equivalents at the beginning of the period | $ (9,684) | ||
Supplemental Cash Flow Information [Abstract] | |||
Upfront payments to customers | 179,197 | ||
Non-cash investing activities, net | $ 179,197 |
Summary of Significant Accoun57
Summary of Significant Accounting Policies - Jackpot Accounting and Advertising (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Jackpot Accounting | |
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) | 90.00% |
Summary of Significant Accoun58
Summary of Significant Accounting Policies - Allowance for Credit Losses (Details) - Customer portfolio segment | 12 Months Ended |
Dec. 31, 2017receivable_class | |
Trade and other receivables, net | |
Number of classes within customer financing portfolio | 2 |
Related products sold | Contracts | Minimum | |
Trade and other receivables, net | |
Term of receivables | 1 year |
Related products sold | Contracts | Maximum | |
Trade and other receivables, net | |
Term of receivables | 5 years |
Developed property and/or other customer assets | Notes | Minimum | |
Trade and other receivables, net | |
Term of receivables | 1 year |
Developed property and/or other customer assets | Notes | Maximum | |
Trade and other receivables, net | |
Term of receivables | 7 years |
Summary of Significant Accoun59
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 111,900 | $ 151,600 | $ 130,100 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cost of services | (2,553,083) | (2,553,479) | (2,417,315) |
Service revenue | (4,136,556) | $ (4,375,586) | $ (3,977,693) |
Cumulative effect | Pro Forma | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cost of services | 64,000 | ||
Service revenue | $ 64,000 |
Dispositions and Acquisitions -
Dispositions and Acquisitions - Schedule of Disposition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net cash proceeds | $ 823,788 | $ 0 | $ 0 |
Gain on sale | 51,348 | $ 0 | $ 0 |
Disposal group | Double Down | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash proceeds | 825,751 | ||
Less: Cash divested | (1,963) | ||
Net cash proceeds | 823,788 | ||
Net book value | (772,440) | ||
Gain on sale | 51,348 | ||
Selling costs | (24,116) | ||
Gain on sale, net of selling costs | $ 27,232 |
Dispositions and Acquisitions61
Dispositions and Acquisitions - Narrative (Details) shares in Millions | Apr. 07, 2015USD ($)dayshares | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | |||||
Equity consideration | $ 0 | $ 0 | $ 928,884,000 | ||
Impairment loss | 714,000,000 | ||||
Amortization of intangible assets | 401,500,000 | 492,100,000 | 410,400,000 | ||
IGT | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 4,545,294,000 | ||||
Cash consideration | 3,616,410,000 | ||||
Equity consideration | $ 928,884,000 | ||||
Fair value assumption, weighted-average share price, number of days within consecutive trading days (in days) | day | 10 | ||||
Fair value assumption, weighted-average share price, number of consecutive trading days (in days) | 20 days | ||||
Transaction expense | 1,700,000 | $ 49,400,000 | |||
Actual revenue of acquiree since acquisition date | $ 1,346,000,000 | ||||
Actual operating loss of acquiree since acquisition date | 45,400,000 | ||||
Amortization of intangible assets | $ 276,000,000 | ||||
Average tax rate for adjustments (as a percent) | 32.00% | ||||
Debt extinguishment costs | $ 36,500,000 | ||||
Tax deductible goodwill amount | $ 0 | ||||
IGT | Trademarks | |||||
Business Acquisition [Line Items] | |||||
Impairment loss on indefinite-lived intangible assets | 30,000,000 | ||||
Common Stock | IGT | |||||
Business Acquisition [Line Items] | |||||
Equity consideration | 917,300,000 | ||||
Restricted Stock Units (RSUs) | IGT | |||||
Business Acquisition [Line Items] | |||||
Equity consideration | 11,600,000 | ||||
Value of restricted stock units deemed to not have been earned | 16,200,000 | ||||
Shareholders | IGT | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 3,572,968,000 | ||||
Shareholders | Common Stock | IGT | |||||
Business Acquisition [Line Items] | |||||
Shares issued as part of acquisition (in shares) | shares | 45.3 | ||||
Employees | IGT | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 43,442,000 | ||||
Employees | Restricted Stock Units (RSUs) | IGT | |||||
Business Acquisition [Line Items] | |||||
Shares issued as part of acquisition (in shares) | shares | 1.4 | ||||
North America Gaming and Interactive | |||||
Business Acquisition [Line Items] | |||||
Impairment loss | $ 714,000,000 | ||||
North America Gaming and Interactive | Trademarks | |||||
Business Acquisition [Line Items] | |||||
Impairment loss on indefinite-lived intangible assets | $ 30,000,000 |
Dispositions and Acquisitions62
Dispositions and Acquisitions - Summary of Final Allocation of Consideration to Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Apr. 07, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Purchase Price Allocation: | ||||
Equity consideration | $ 0 | $ 0 | $ 928,884 | |
Fair value of assets acquired and liabilities assumed: | ||||
Goodwill | $ 5,723,815 | $ 6,810,012 | $ 6,830,499 | |
IGT | ||||
Purchase Price Allocation: | ||||
Cash consideration | $ 3,616,410 | |||
Equity consideration | 928,884 | |||
Total purchase price | 4,545,294 | |||
Fair value of assets acquired and liabilities assumed: | ||||
Cash and cash equivalents | 374,995 | |||
Restricted cash | 56,656 | |||
Trade and other receivables | 237,488 | |||
Inventories | 95,562 | |||
Other current assets | 361,003 | |||
Systems, equipment and other assets related to contracts | 126,524 | |||
Property, plant and equipment | 336,044 | |||
Intangible assets | 2,960,000 | |||
Other non-current assets | 628,620 | |||
Deferred income tax assets | 246,953 | |||
Accounts payable | (75,814) | |||
Other current liabilities | (379,968) | |||
Long-term debt, less current portion | (1,937,942) | |||
Deferred income tax liabilities | (1,069,833) | |||
Other non-current liabilities | (360,335) | |||
Fair value of assets acquired and liabilities assumed, net | 1,599,953 | |||
Goodwill | $ 2,945,341 |
Dispositions and Acquisitions63
Dispositions and Acquisitions - Schedule of Cash Outflow Associated with the Acquisition (Details) - USD ($) $ in Thousands | Apr. 07, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Acquisition consideration | ||||
Net cash outflow | $ 0 | $ 0 | $ 3,241,415 | |
IGT | ||||
Acquisition consideration | ||||
Cash consideration | $ 3,616,410 | |||
Less cash acquired | (374,995) | |||
Net cash outflow | 3,241,415 | |||
IGT | Shareholders | ||||
Acquisition consideration | ||||
Cash consideration | 3,572,968 | |||
IGT | Employees | ||||
Acquisition consideration | ||||
Cash consideration | $ 43,442 |
Dispositions and Acquisitions64
Dispositions and Acquisitions - Schedule of Fair Values of Acquired Intangible Assets with Weighted Average Useful Lives (Details) - IGT $ in Thousands | Apr. 07, 2015USD ($) |
Business Acquisition [Line Items] | |
Finite-lived intangible asset acquired | $ 2,960,000 |
Trademarks | |
Business Acquisition [Line Items] | |
Indefinite-lived intangible asset acquired | 340,000 |
Customer relationships | |
Business Acquisition [Line Items] | |
Finite-lived intangible asset acquired | $ 1,715,000 |
Finite-lived intangible asset acquired - weighted average useful life | 14 years 9 months 18 days |
Game library | |
Business Acquisition [Line Items] | |
Finite-lived intangible asset acquired | $ 360,000 |
Finite-lived intangible asset acquired - weighted average useful life | 2 years 6 months |
Computer software | |
Business Acquisition [Line Items] | |
Finite-lived intangible asset acquired | $ 275,000 |
Finite-lived intangible asset acquired - weighted average useful life | 9 years 4 months 24 days |
Developed technologies | |
Business Acquisition [Line Items] | |
Finite-lived intangible asset acquired | $ 180,000 |
Finite-lived intangible asset acquired - weighted average useful life | 3 years 9 months 18 days |
Trademarks | |
Business Acquisition [Line Items] | |
Finite-lived intangible asset acquired | $ 90,000 |
Finite-lived intangible asset acquired - weighted average useful life | 7 years 3 months 18 days |
Dispositions and Acquisitions65
Dispositions and Acquisitions - Schedule of Unaudited, Pro Forma Financial Information (Details) - IGT $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Pro forma financial information | |
Revenue | $ 5,105,159 |
Net loss | $ (61,946) |
Trade and Other Receivables, 66
Trade and Other Receivables, net - Schedule of Trade and Other Receivables, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||||
Gross | $ 991,177 | $ 1,006,121 | ||
Allowance for credit losses | (53,323) | (58,884) | $ (76,137) | $ (91,819) |
Net | $ 937,854 | $ 947,237 |
Trade and Other Receivables, 67
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Activity of allowance for credit losses related to trade and other receivables | |||
Balance at beginning of year | $ (58,884) | $ (76,137) | $ (91,819) |
Provisions, net | (12,255) | (13,594) | (18,883) |
Amounts written off as uncollectible | 17,826 | 29,289 | 25,703 |
Foreign currency translation | (5,885) | 1,558 | 9,263 |
Other | 5,875 | 0 | (401) |
Balance at end of year | $ (53,323) | $ (58,884) | $ (76,137) |
Trade and Other Receivables, 68
Trade and Other Receivables, net - Narrative (Details) € in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)agreements | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | |
Trade and other receivables, net | ||||
Number of agreements entered for sale of accounts receivable | agreements | 2 | |||
Receivables sold and derecognized | $ | $ 18,600 | $ 19,500 | ||
Italy | ||||
Trade and other receivables, net | ||||
Receivables sold and derecognized | $ 265,363 | € 221,265 | 214,993 | € 203,959 |
Scratch & Win | Italy | ||||
Trade and other receivables, net | ||||
Duration of agreement | 3 years | |||
Maximum accounts receivable subject to agreement | 300,000 | |||
Receivables sold and derecognized | $ 210,894 | 175,848 | 152,449 | 144,625 |
Commercial services | Italy | ||||
Trade and other receivables, net | ||||
Duration of agreement | 5 years | |||
Maximum accounts receivable subject to agreement | 150,000 | |||
Receivables sold and derecognized | $ 54,469 | € 45,417 | $ 62,544 | € 59,334 |
Trade and Other Receivables, 69
Trade and Other Receivables, net - Schedule of Receivables Sold (Details) € in Thousands, $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) |
Agreements to sell receivables | ||||
Receivables sold and derecognized | $ 18,600 | $ 19,500 | ||
Italy | ||||
Agreements to sell receivables | ||||
Receivables sold and derecognized | 265,363 | € 221,265 | 214,993 | € 203,959 |
Italy | Scratch & Win | ||||
Agreements to sell receivables | ||||
Receivables sold and derecognized | 210,894 | 175,848 | 152,449 | 144,625 |
Italy | Commercial services | ||||
Agreements to sell receivables | ||||
Receivables sold and derecognized | $ 54,469 | € 45,417 | $ 62,544 | € 59,334 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 156,336 | $ 161,911 |
Work in progress | 33,588 | 39,744 |
Finished goods | 129,621 | 145,839 |
Total inventories | $ 319,545 | $ 347,494 |
Other Assets - Other Current As
Other Assets - Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other current assets | ||
Customer financing receivables, net | $ 151,360 | $ 109,773 |
Other receivables | 65,891 | 104,689 |
Prepaid royalties | 59,596 | 65,375 |
Value added tax receivable | 49,962 | 37,623 |
Prepaid expenses | 30,977 | 36,838 |
Other | 49,734 | 70,429 |
Total other current assets | $ 407,520 | $ 424,727 |
Other Assets - Non-Current Asse
Other Assets - Non-Current Assets (Details) $ in Thousands, € in Millions | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 01, 2017EUR (€) | Dec. 31, 2016USD ($) | |
Other non-current assets | |||||
License fees, net | $ 2,073,674 | $ 2,073,674 | $ 1,187,339 | ||
Prepaid royalties | 103,322 | 103,322 | 138,314 | ||
Customer financing receivables, net | 74,898 | 74,898 | 53,962 | ||
Prepaid income taxes | 72,176 | 72,176 | 14,309 | ||
Other | 103,883 | 103,883 | 103,738 | ||
Total other non-current assets | 2,427,953 | 2,427,953 | 1,497,662 | ||
Italian Scratch & Win | |||||
Other non-current assets | |||||
License fees, net | $ 1,145,998 | $ 1,145,998 | 257,669 | ||
Amortization period of license fee (in years) | 9 years | ||||
Italian Scratch & Win extension | |||||
Other non-current assets | |||||
Amortization period of license fee (in years) | 9 years | 9 years | 9 years | ||
Upfront license fees, gross | $ 959,400 | $ 959,400 | € 800 | ||
Payments for upfront license fee | 59,300 | € 50 | |||
Italian Lotto | |||||
Other non-current assets | |||||
License fees, net | 812,304 | $ 812,304 | 804,142 | ||
Amortization period of license fee (in years) | 9 years | ||||
New Jersey | |||||
Other non-current assets | |||||
License fees, net | 100,730 | $ 100,730 | 109,490 | ||
Amortization period of license fee (in years) | 15 years 9 months | ||||
Indiana | |||||
Other non-current assets | |||||
License fees, net | $ 14,642 | $ 14,642 | $ 16,038 | ||
Amortization period of license fee (in years) | 15 years |
Other Assets - Customer Financi
Other Assets - Customer Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Customer financing receivables, net | ||||
Customer receivable sold | $ 34,200 | $ 29,200 | ||
Customer financing receivables, Net, Current | 151,360 | 109,773 | ||
Customer financing receivables, Net, Non-current | 74,898 | 53,962 | ||
Customer portfolio segment | ||||
Customer financing receivables, net | ||||
Customer financing receivables, Gross, Current | 167,985 | 114,677 | ||
Customer financing receivables, Gross, Non-current | 77,847 | 56,914 | ||
Customer financing receivables, Gross | 245,832 | 171,591 | ||
Allowance for credit losses, Current | (16,625) | (4,904) | ||
Allowance for credit losses, Non-current | (2,949) | (2,952) | ||
Allowance for credit losses | (19,574) | (7,856) | $ (3,888) | $ 0 |
Customer financing receivables, Net, Current | 151,360 | 109,773 | ||
Customer financing receivables, Net, Non-current | 74,898 | 53,962 | ||
Customer financing receivables, Net | $ 226,258 | $ 163,735 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Activity in allowance for credit losses related to customer financing receivables, net | |||
Balance at beginning of year | $ (7,856) | $ (3,888) | $ 0 |
Provisions, net | (5,236) | (4,481) | (3,706) |
Amounts written off as uncollectible | 0 | 0 | 20 |
Foreign currency translation | (159) | 513 | (59) |
Other | (6,323) | 0 | (143) |
Balance at end of year | $ (19,574) | $ (7,856) | $ (3,888) |
Fair Value of Financial Asset75
Fair Value of Financial Assets and Liabilities - Schedule of Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets and liabilities carried at fair value | ||
Derivative Assets | $ 980 | $ 9,418 |
Derivative Liabilities | 4,264 | 4,712 |
Measured at fair value on a recurring basis | ||
Financial assets and liabilities carried at fair value | ||
Restricted Investments | 57,465 | 46,718 |
Jackpot Investments | 459 | 4,184 |
Available-for-Sale Investments | 11,991 | 12,666 |
Contingent Consideration | 7,755 | 2,241 |
Measured at fair value on a recurring basis | Foreign Currency Forward Contracts | ||
Financial assets and liabilities carried at fair value | ||
Derivative Assets | 501 | 8,339 |
Derivative Liabilities | 4,399 | 126 |
Measured at fair value on a recurring basis | Interest Rate Swaps | ||
Financial assets and liabilities carried at fair value | ||
Derivative Assets | 479 | 1,079 |
Derivative Liabilities | 14,953 | 13,709 |
Measured at fair value on a recurring basis | Call Option | ||
Financial assets and liabilities carried at fair value | ||
Derivative Assets | 2,638 | |
Measured at fair value on a recurring basis | Level 1 | ||
Financial assets and liabilities carried at fair value | ||
Restricted Investments | 57,465 | 46,718 |
Jackpot Investments | 459 | 4,184 |
Available-for-Sale Investments | 11,991 | 12,666 |
Contingent Consideration | 0 | 0 |
Measured at fair value on a recurring basis | Level 1 | Foreign Currency Forward Contracts | ||
Financial assets and liabilities carried at fair value | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Measured at fair value on a recurring basis | Level 1 | Interest Rate Swaps | ||
Financial assets and liabilities carried at fair value | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Measured at fair value on a recurring basis | Level 1 | Call Option | ||
Financial assets and liabilities carried at fair value | ||
Derivative Assets | 0 | |
Measured at fair value on a recurring basis | Level 2 | ||
Financial assets and liabilities carried at fair value | ||
Restricted Investments | 0 | 0 |
Jackpot Investments | 0 | 0 |
Available-for-Sale Investments | 0 | 0 |
Contingent Consideration | 0 | 0 |
Measured at fair value on a recurring basis | Level 2 | Foreign Currency Forward Contracts | ||
Financial assets and liabilities carried at fair value | ||
Derivative Assets | 501 | 8,339 |
Derivative Liabilities | 4,399 | 126 |
Measured at fair value on a recurring basis | Level 2 | Interest Rate Swaps | ||
Financial assets and liabilities carried at fair value | ||
Derivative Assets | 479 | 1,079 |
Derivative Liabilities | 14,953 | 13,709 |
Measured at fair value on a recurring basis | Level 2 | Call Option | ||
Financial assets and liabilities carried at fair value | ||
Derivative Assets | 0 | |
Measured at fair value on a recurring basis | Level 3 | ||
Financial assets and liabilities carried at fair value | ||
Restricted Investments | 0 | 0 |
Jackpot Investments | 0 | 0 |
Available-for-Sale Investments | 0 | 0 |
Contingent Consideration | 7,755 | 2,241 |
Measured at fair value on a recurring basis | Level 3 | Foreign Currency Forward Contracts | ||
Financial assets and liabilities carried at fair value | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Measured at fair value on a recurring basis | Level 3 | Interest Rate Swaps | ||
Financial assets and liabilities carried at fair value | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | $ 0 |
Measured at fair value on a recurring basis | Level 3 | Call Option | ||
Financial assets and liabilities carried at fair value | ||
Derivative Assets | $ 2,638 |
Fair Value of Financial Asset76
Fair Value of Financial Assets and Liabilities - Schedule of Fair Value Hierarchy for Financial Assets and Liabilities not Measured at Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | $ 225,718 | $ 165,241 |
Customer financing receivable, unrealized gain (loss) | (540) | 1,506 |
Available-for-sale investments | 12,409 | 14,838 |
Available-for-sale investments, unrealized gain (loss) | 0 | 0 |
Goodwill | 1,439,867 | |
Goodwill, realized loss | (714,000) | |
Jackpot liabilities | 268,581 | 291,026 |
Jackpot liabilities, unrealized gain (loss) | 7,045 | 8,016 |
Debt | 8,974,126 | 8,415,890 |
Debt, unrealized gain (loss) | (582,479) | (543,605) |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | 226,258 | 163,735 |
Available-for-sale investments | 12,409 | 14,838 |
Goodwill | 1,439,867 | |
Jackpot liabilities | 275,626 | 299,042 |
Debt | 8,391,647 | 7,872,285 |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | 0 | 0 |
Available-for-sale investments | 0 | 0 |
Goodwill | 0 | |
Jackpot liabilities | 0 | 0 |
Debt | 0 | 0 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | 0 | 0 |
Available-for-sale investments | 0 | 0 |
Goodwill | 0 | |
Jackpot liabilities | 0 | 0 |
Debt | 8,974,126 | 8,415,890 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | 225,718 | 165,241 |
Available-for-sale investments | 12,409 | 14,838 |
Goodwill | 1,439,867 | |
Jackpot liabilities | 268,581 | 291,026 |
Debt | $ 0 | $ 0 |
Fair Value of Financial Asset77
Fair Value of Financial Assets and Liabilities - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Impairment loss | $ 714,000 |
Jackpot liabilities, annuity | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Period of treasury yield curve rate for estimated funding rate (in years) | 10 years |
Treasury yield curve rate used for estimated funding rate (as a percent) | 2.40% |
Period of credit default swap rate for nonperformance risk (in years) | 10 years |
Credit default swap rate used for nonperformance risk (as a percent) | 1.87% |
Jackpot liabilities, annuity | Minimum | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Expected annuity period (in years) | 1 year |
Jackpot liabilities, annuity | Maximum | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Expected annuity period (in years) | 25 years |
Jackpot liabilities, annuity | Average | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Expected annuity period (in years) | 10 years |
Jackpot liabilities, lump-sum, current | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Period of treasury yield curve rate for estimated funding rate (in years) | 1 year |
Treasury yield curve rate used for estimated funding rate (as a percent) | 1.76% |
Period of credit default swap rate for nonperformance risk (in years) | 1 year |
Credit default swap rate used for nonperformance risk (as a percent) | 0.17% |
Jackpot liabilities, lump-sum, noncurrent | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Period of treasury yield curve rate for estimated funding rate (in years) | 2 years |
Treasury yield curve rate used for estimated funding rate (as a percent) | 1.89% |
Period of credit default swap rate for nonperformance risk (in years) | 2 years |
Credit default swap rate used for nonperformance risk (as a percent) | 0.28% |
Customer financing receivables | Minimum | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Credit risk of each customer (as a percent) | 4.30% |
Customer financing receivables | Maximum | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Credit risk of each customer (as a percent) | 10.05% |
Selling, general and administrative | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Net gain on contingent consideration liability | $ 2,200 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2016 | Sep. 30, 2015 | |
Foreign Currency Forward Contracts | Designated Hedges | ||||
Derivative [Line Items] | ||||
Notional amount | $ 100.8 | $ 120.9 | ||
Foreign Currency Forward Contracts | Non-designated Hedges | ||||
Derivative [Line Items] | ||||
Notional amount | $ 460.6 | $ 364.5 | ||
7.500% Senior Secured Notes due 2019 | ||||
Derivative [Line Items] | ||||
Stated interest rate on debt (as a percent) | 7.50% | |||
5.500% Senior Secured Notes due 2020 | ||||
Derivative [Line Items] | ||||
Stated interest rate on debt (as a percent) | 5.50% | |||
Fair Value Hedges | 6.250% Senior Secured Notes due 2022 | Interest Rate Swaps | Designated Hedges | ||||
Derivative [Line Items] | ||||
Notional amount | $ 625 | |||
Amount of debt hedged by the interest rate swap | $ 625 | |||
Fixed interest payments receivable (as a percent) | 6.25% | 6.25% | ||
Fair Value Hedges | 7.500% Senior Secured Notes due in 2019 and 5.500% Senior Secured Notes due in 2020 | Interest Rate Swaps | Designated Hedges | ||||
Derivative [Line Items] | ||||
Cash received from swap counterparties upon settlement | $ 67.8 | |||
Minimum | Fair Value Hedges | 6.250% Senior Secured Notes due 2022 | Interest Rate Swaps | Designated Hedges | Six-month LIBOR | ||||
Derivative [Line Items] | ||||
Spread rate (as a percent) | 5.90% | |||
Maximum | Foreign Exchange Contract | Non-designated Hedges | ||||
Derivative [Line Items] | ||||
Derivative, term of contract | 1 year | |||
Maximum | Fair Value Hedges | 6.250% Senior Secured Notes due 2022 | Interest Rate Swaps | Designated Hedges | Six-month LIBOR | ||||
Derivative [Line Items] | ||||
Spread rate (as a percent) | 6.02% |
Derivatives - Balance Sheet (De
Derivatives - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Location and Fair Value | ||
Long-term debt | $ (15,088) | $ (9,123) |
Derivative Liabilities | 4,264 | 4,712 |
Derivative Assets | 980 | 9,418 |
Interest Rate Swaps | Designated Hedges | Current financial assets | ||
Balance Sheet Location and Fair Value | ||
Derivative Assets | 479 | 1,079 |
Interest Rate Swaps | Fair Value Hedges | Designated Hedges | ||
Balance Sheet Location and Fair Value | ||
Derivative Liabilities | 4,586 | |
Derivative Assets | (135) | |
Interest Rate Swaps | Fair Value Hedges | Designated Hedges | Non-current financial liabilities | ||
Balance Sheet Location and Fair Value | ||
Non-current financial liabilities | 14,953 | 13,709 |
Interest Rate Swaps | Fair Value Hedges | Designated Hedges | Long-term debt | ||
Balance Sheet Location and Fair Value | ||
Long-term debt | (15,088) | (9,123) |
Foreign Currency Forward Contracts | Non-designated Hedges | Current financial assets | ||
Balance Sheet Location and Fair Value | ||
Derivative Assets | 501 | 4,965 |
Foreign Currency Forward Contracts | Non-designated Hedges | Current financial liabilities | ||
Balance Sheet Location and Fair Value | ||
Derivative Liabilities | 2,037 | 126 |
Foreign Currency Forward Contracts | Cash Flow Hedging | Designated Hedges | Current financial assets | ||
Balance Sheet Location and Fair Value | ||
Derivative Assets | 0 | 3,374 |
Foreign Currency Forward Contracts | Cash Flow Hedging | Designated Hedges | Current financial liabilities | ||
Balance Sheet Location and Fair Value | ||
Derivative Liabilities | $ 2,362 | $ 0 |
Derivatives - Income Statement
Derivatives - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest Rate Swaps | Designated Hedges | Fair Value Hedges | Other (expense) income, net | |||
Income Statement Location and Income (Expense) | |||
Effectiveness | $ (605) | $ (540) | $ 1,646 |
Ineffectiveness | 1,032 | (1,280) | 232 |
Foreign Currency Forward Contracts | Non-designated Hedges | Foreign exchange (loss) gain, net | |||
Income Statement Location and Income (Expense) | |||
Realized gains (losses) | (21,870) | 16,873 | (16,651) |
Foreign Currency Forward Contracts | Designated Hedges | Cash Flow Hedging | Service revenue | |||
Income Statement Location and Income (Expense) | |||
Realized gains (losses) | $ (1,744) | $ 5,218 | $ 244 |
Systems, Equipment and Other 81
Systems, Equipment and Other Assets Related to Contracts, net and Property Plant and Equipment, net (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)fixed_asset_type | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Fixed assets | |||
Number of principle types of fixed assets | fixed_asset_type | 2 | ||
Systems, equipment and other assets related to contracts, net | $ 1,434,194 | $ 1,199,674 | |
Property, plant and equipment - net | 193,723 | 357,841 | |
Impairment loss | 715,220 | 37,744 | $ 12,497 |
Systems & Equipment, net | |||
Fixed assets | |||
Systems, equipment and other assets related to contracts, gross | 3,469,212 | 3,116,921 | |
Accumulated depreciation | (2,035,018) | (1,917,247) | |
Systems, equipment and other assets related to contracts, net | 1,434,194 | 1,199,674 | |
Borrowing costs capitalized | $ 4,200 | $ 1,500 | |
Rate used to determine amount of borrowing costs eligible for capitalization | 5.80% | 5.60% | |
Impairment loss | $ 1,200 | $ 7,700 | $ 2,800 |
Systems & Equipment, net | Land | |||
Fixed assets | |||
Systems, equipment and other assets related to contracts, gross | 547 | 574 | |
Systems & Equipment, net | Buildings | |||
Fixed assets | |||
Systems, equipment and other assets related to contracts, gross | 151,962 | 121,572 | |
Systems & Equipment, net | Terminals and systems | |||
Fixed assets | |||
Systems, equipment and other assets related to contracts, gross | 2,969,848 | 2,652,742 | |
Systems & Equipment, net | Furniture and equipment | |||
Fixed assets | |||
Systems, equipment and other assets related to contracts, gross | 197,610 | 172,666 | |
Systems & Equipment, net | Contracts in progress | |||
Fixed assets | |||
Systems, equipment and other assets related to contracts, gross | 149,245 | 169,367 | |
Systems & Equipment, net | Construction in progress | |||
Fixed assets | |||
Systems, equipment and other assets related to contracts, gross | $ 0 | 0 | |
Systems & Equipment, net | Lottery hard costs | |||
Fixed assets | |||
Useful life | 10 years | ||
Systems & Equipment, net | Lottery soft costs | |||
Fixed assets | |||
Useful life | 10 years | ||
Systems & Equipment, net | Minimum | Commercial gaming machines | |||
Fixed assets | |||
Useful life | 3 years | ||
Systems & Equipment, net | Maximum | Commercial gaming machines | |||
Fixed assets | |||
Useful life | 5 years | ||
PPE, net | |||
Fixed assets | |||
Property, plant and equipment, gross | $ 335,166 | 509,014 | |
Accumulated depreciation | (141,443) | (151,173) | |
Property, plant and equipment - net | 193,723 | 357,841 | |
PPE, net | Land | |||
Fixed assets | |||
Property, plant and equipment, gross | $ 2,542 | 18,787 | |
PPE, net | Buildings | |||
Fixed assets | |||
Useful life | 40 years | ||
Property, plant and equipment, gross | $ 70,389 | 219,416 | |
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 | 241,632 | 234,458 | |
PPE, net | Contracts in progress | |||
Fixed assets | |||
Property, plant and equipment, gross | 0 | 0 | |
PPE, net | Construction in progress | |||
Fixed assets | |||
Property, plant and equipment, gross | $ 20,603 | $ 36,353 | |
PPE, net | Minimum | Furniture and equipment | |||
Fixed assets | |||
Useful life | 5 years | ||
PPE, net | Maximum | Furniture and equipment | |||
Fixed assets | |||
Useful life | 10 years |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in the carrying amount of goodwill, net | ||||
Balance at the beginning of the period | $ 6,810,012 | $ 6,830,499 | ||
Impairment loss | (714,000) | |||
Disposal | (473,000) | |||
Acquisitions | 22,193 | 7,642 | ||
Foreign currency translation | 77,735 | (27,851) | ||
Other | 875 | (278) | ||
Balance at the end of the period | 5,723,815 | 6,810,012 | ||
Goodwill, net | ||||
Cost | $ 6,568,707 | $ 6,927,419 | ||
Accumulated impairment loss | (844,892) | (117,407) | ||
Net of accumulated impairment loss | 6,810,012 | 6,830,499 | 5,723,815 | 6,810,012 |
North America Gaming and Interactive | ||||
Changes in the carrying amount of goodwill, net | ||||
Balance at the beginning of the period | 2,625,880 | 2,626,282 | ||
Impairment loss | (714,000) | |||
Disposal | (473,000) | |||
Acquisitions | 0 | (402) | ||
Foreign currency translation | 0 | 0 | ||
Other | 987 | 0 | ||
Balance at the end of the period | 1,439,867 | 2,625,880 | ||
Goodwill, net | ||||
Cost | 2,153,867 | 2,625,880 | ||
Accumulated impairment loss | (714,000) | 0 | ||
Net of accumulated impairment loss | 2,625,880 | 2,626,282 | 1,439,867 | 2,625,880 |
North America Lottery | ||||
Changes in the carrying amount of goodwill, net | ||||
Balance at the beginning of the period | 1,221,529 | 1,217,155 | ||
Impairment loss | 0 | |||
Disposal | 0 | |||
Acquisitions | 0 | 4,374 | ||
Foreign currency translation | 0 | 0 | ||
Other | 60 | 0 | ||
Balance at the end of the period | 1,221,589 | 1,221,529 | ||
Goodwill, net | ||||
Cost | 1,225,682 | 1,225,622 | ||
Accumulated impairment loss | (4,093) | (4,093) | ||
Net of accumulated impairment loss | 1,221,529 | 1,217,155 | 1,221,589 | 1,221,529 |
International | ||||
Changes in the carrying amount of goodwill, net | ||||
Balance at the beginning of the period | 1,527,549 | 1,535,083 | ||
Impairment loss | 0 | |||
Disposal | 0 | |||
Acquisitions | 14,890 | (64) | ||
Foreign currency translation | 6,786 | (7,470) | ||
Other | 156 | 0 | ||
Balance at the end of the period | 1,549,381 | 1,527,549 | ||
Goodwill, net | ||||
Cost | 1,674,381 | 1,639,282 | ||
Accumulated impairment loss | (125,000) | (111,733) | ||
Net of accumulated impairment loss | 1,527,549 | 1,535,083 | 1,549,381 | 1,527,549 |
Italy | ||||
Changes in the carrying amount of goodwill, net | ||||
Balance at the beginning of the period | 1,435,054 | 1,451,979 | ||
Impairment loss | 0 | |||
Disposal | 0 | |||
Acquisitions | 7,303 | 3,734 | ||
Foreign currency translation | 70,949 | (20,381) | ||
Other | (328) | (278) | ||
Balance at the end of the period | 1,512,978 | 1,435,054 | ||
Goodwill, net | ||||
Cost | 1,514,777 | 1,436,635 | ||
Accumulated impairment loss | (1,799) | (1,581) | ||
Net of accumulated impairment loss | $ 1,435,054 | $ 1,451,979 | $ 1,512,978 | $ 1,435,054 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)Reporting_unit | |
Goodwill [Line Items] | |
Number of reporting units | Reporting_unit | 4 |
Impairment loss | $ 714,000 |
North America Gaming and Interactive | |
Goodwill [Line Items] | |
Impairment loss | $ 714,000 |
Intangible Assets, net - Compon
Intangible Assets, net - Components (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 4,247,883 | $ 4,366,535 |
Total Gross Carrying Amount | 4,494,796 | 4,678,448 |
Amortization | ||
Accumulated Amortization | 2,221,336 | 1,804,417 |
Intangible assets, net | ||
Net Book Value - Subject to amortization | 2,026,547 | 2,562,118 |
Total Net Book Value | 2,273,460 | 2,874,031 |
Trademarks | ||
Intangible assets - Gross carrying amount | ||
Not subject to amortization | 246,913 | 311,913 |
Intangible assets, net | ||
Not subject to amortization | 246,913 | 311,913 |
Customer relationships | ||
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | 2,434,051 | 2,590,225 |
Amortization | ||
Accumulated Amortization | 956,586 | 809,669 |
Intangible assets, net | ||
Net Book Value - Subject to amortization | $ 1,477,465 | $ 1,780,556 |
Weighted Average Life (years) | 15 years 2 months 12 days | 14 years 9 months 18 days |
Computer software and game library | ||
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 947,207 | $ 946,150 |
Amortization | ||
Accumulated Amortization | 710,725 | 550,506 |
Intangible assets, net | ||
Net Book Value - Subject to amortization | $ 236,482 | $ 395,644 |
Weighted Average Life (years) | 5 years 7 months 6 days | 5 years 8 months 12 days |
Trademarks | ||
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 186,218 | $ 200,107 |
Amortization | ||
Accumulated Amortization | 47,053 | 35,923 |
Intangible assets, net | ||
Net Book Value - Subject to amortization | $ 139,165 | $ 164,184 |
Weighted Average Life (years) | 14 years 1 month 6 days | 13 years 4 months 24 days |
Concessions and licenses | ||
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 300,207 | $ 255,299 |
Amortization | ||
Accumulated Amortization | 204,533 | 153,277 |
Intangible assets, net | ||
Net Book Value - Subject to amortization | $ 95,674 | $ 102,022 |
Weighted Average Life (years) | 10 years 1 month 6 days | 10 years 3 months 18 days |
Developed technologies | ||
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 220,213 | $ 234,420 |
Amortization | ||
Accumulated Amortization | 155,870 | 128,200 |
Intangible assets, net | ||
Net Book Value - Subject to amortization | $ 64,343 | $ 106,220 |
Weighted Average Life (years) | 5 years 4 months 24 days | 5 years 4 months 24 days |
Networks | ||
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 18,806 | $ 15,689 |
Amortization | ||
Accumulated Amortization | 13,571 | 11,225 |
Intangible assets, net | ||
Net Book Value - Subject to amortization | $ 5,235 | $ 4,464 |
Weighted Average Life (years) | 7 years | 7 years |
Sports and horse racing betting rights | ||
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 132,521 | $ 115,991 |
Amortization | ||
Accumulated Amortization | 128,888 | 112,060 |
Intangible assets, net | ||
Net Book Value - Subject to amortization | $ 3,633 | $ 3,931 |
Weighted Average Life (years) | 6 years 6 months | 6 years 6 months |
Other | ||
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 8,660 | $ 8,654 |
Amortization | ||
Accumulated Amortization | 4,110 | 3,557 |
Intangible assets, net | ||
Net Book Value - Subject to amortization | $ 4,550 | $ 5,097 |
Weighted Average Life (years) | 16 years 1 month 6 days | 16 years 1 month 6 days |
Intangible Assets, net - Narrat
Intangible Assets, net - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 401.5 | $ 492.1 | $ 410.4 | |
Computer software | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 31.4 | 38.4 | 34 | |
Trademarks | North America Gaming and Interactive | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Impairment loss on indefinite-lived intangible assets | $ 30 | |||
Trademarks | International | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Impairment loss on indefinite-lived intangible assets | $ 9.7 | |||
Disposal group | Double Down | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Reduction in net book value | $ 277.3 |
Intangible Assets, net - Amorti
Intangible Assets, net - Amortization and Impairment (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Expected amortization expense for next five years | |
2,018 | $ 263,614 |
2,019 | 250,267 |
2,020 | 219,808 |
2,021 | 189,583 |
2,022 | 166,136 |
Total | $ 1,089,408 |
Other Liabilities - Current Lia
Other Liabilities - Current Liabilities (Details) $ in Thousands, € in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 01, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) |
Other current liabilities | |||||
Payable to Italian regulator | $ 899,475 | $ 179,197 | |||
Accrued interest payable | 179,230 | 165,290 | |||
Employee compensation | 146,891 | 158,236 | |||
Taxes other than income taxes | 128,703 | 123,267 | |||
Accrued expenses | 121,181 | 127,092 | |||
Current financial liabilities | 113,217 | 108,915 | |||
Jackpot liabilities | 84,250 | 95,574 | |||
Deferred revenue | 48,222 | 80,528 | |||
Advance payments from customers | 28,874 | 25,473 | |||
Other | 30,832 | 33,473 | |||
Total other current liabilities | 1,780,875 | 1,097,045 | |||
Italian Scratch & Win extension | |||||
Other current liabilities | |||||
Payable to Italian regulator | $ 899,500 | € 750 | € 800 | $ 179,200 | € 170 |
Other Liabilities - Non-Current
Other Liabilities - Non-Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other non-current liabilities | ||
Jackpot liabilities | $ 191,376 | $ 203,468 |
Deferred revenue | 60,831 | 66,220 |
Finance leases | 60,766 | 62,142 |
Reserve for uncertain tax positions | 34,447 | 14,733 |
Royalties payable | 32,997 | 37,681 |
Italian staff severance fund | 12,577 | 11,454 |
Other | 53,119 | 48,858 |
Total other non-current liabilities | $ 446,113 | $ 444,556 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Jul. 25, 2017 | Jun. 12, 2017 | Dec. 31, 2016 |
Debt | ||||
Long-term debt, less current portion | $ 7,777,445 | $ 7,863,085 | ||
Current portion of long-term debt | 599,114 | 77 | ||
Total | $ 8,376,559 | 7,863,162 | ||
7.500% Senior Secured Notes due 2019 | ||||
Debt | ||||
Stated interest rate (as a percent) | 7.50% | |||
5.500% Senior Secured Notes due 2020 | ||||
Debt | ||||
Stated interest rate (as a percent) | 5.50% | |||
Senior Notes | ||||
Debt | ||||
Long-term debt, less current portion | $ 5,915,204 | 6,507,004 | ||
Total | 5,915,204 | 6,507,004 | ||
Senior Notes | 6.250% Senior Secured Notes due 2022 | ||||
Debt | ||||
Long-term debt, less current portion | 1,470,075 | 1,472,150 | ||
Total | $ 1,470,075 | $ 1,472,150 | ||
Stated interest rate (as a percent) | 6.25% | 6.25% | ||
Senior Notes | 6.500% Senior Secured Notes due 2025 | ||||
Debt | ||||
Long-term debt, less current portion | $ 1,086,913 | $ 1,085,537 | ||
Total | $ 1,086,913 | $ 1,085,537 | ||
Stated interest rate (as a percent) | 6.50% | 6.50% | ||
Senior Notes | 4.750% Senior Secured Notes due 2023 | ||||
Debt | ||||
Long-term debt, less current portion | $ 1,008,601 | $ 884,917 | ||
Total | $ 1,008,601 | $ 884,917 | ||
Stated interest rate (as a percent) | 4.75% | 4.75% | ||
Senior Notes | 4.125% Senior Secured Notes due 2020 | ||||
Debt | ||||
Long-term debt, less current portion | $ 833,655 | $ 730,465 | ||
Total | $ 833,655 | $ 730,465 | ||
Stated interest rate (as a percent) | 4.125% | 4.125% | ||
Senior Notes | 5.625% Senior Secured Notes due 2020 | ||||
Debt | ||||
Long-term debt, less current portion | $ 595,767 | $ 593,954 | ||
Total | $ 595,767 | $ 593,954 | ||
Stated interest rate (as a percent) | 5.625% | 5.625% | ||
Senior Notes | 4.750% Senior Secured Notes due 2020 | ||||
Debt | ||||
Long-term debt, less current portion | $ 585,171 | $ 509,050 | ||
Total | $ 585,171 | $ 509,050 | ||
Stated interest rate (as a percent) | 4.75% | 4.75% | ||
Senior Notes | 7.500% Senior Secured Notes due 2019 | ||||
Debt | ||||
Long-term debt, less current portion | $ 148,231 | $ 521,894 | ||
Total | $ 148,231 | $ 521,894 | ||
Stated interest rate (as a percent) | 7.50% | 7.50% | 7.50% | |
Senior Notes | 5.500% Senior Secured Notes due 2020 | ||||
Debt | ||||
Long-term debt, less current portion | $ 125,709 | $ 126,294 | ||
Total | $ 125,709 | $ 126,294 | ||
Stated interest rate (as a percent) | 5.50% | 5.50% | ||
Senior Notes | 5.350% Senior Secured Notes due 2023 | ||||
Debt | ||||
Long-term debt, less current portion | $ 61,082 | $ 61,187 | ||
Total | $ 61,082 | $ 61,187 | ||
Stated interest rate (as a percent) | 5.35% | 5.35% | ||
Senior Notes | 6.625% Senior Secured Notes due 2018 | ||||
Debt | ||||
Long-term debt, less current portion | $ 0 | $ 521,556 | ||
Current portion of long-term debt | 599,114 | 0 | ||
Total | $ 599,114 | $ 521,556 | ||
Stated interest rate (as a percent) | 6.625% | 6.625% | 6.625% | |
Term loan | Term Loan Facility due 2023 | ||||
Debt | ||||
Long-term debt, less current portion | $ 1,785,361 | $ 0 | ||
Total | 1,785,361 | |||
Term loan | Term Loan Facilities due 2019 | ||||
Debt | ||||
Long-term debt, less current portion | 0 | 839,552 | ||
Total | 839,552 | |||
Revolving Credit Facilities due 2021 | Revolving Credit Facilities due 2021 | ||||
Debt | ||||
Long-term debt, less current portion | 76,880 | 516,529 | ||
Total | 76,880 | 516,529 | ||
Other | Other | ||||
Debt | ||||
Current portion of long-term debt | $ 0 | 77 | ||
Total | $ 77 |
Debt - Reconciliation to Consol
Debt - Reconciliation to Consolidated Balance Sheets (Details) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Jul. 25, 2017EUR (€) | Jun. 12, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt | |||||
Principal | $ 8,481,178,000 | $ 7,956,842,000 | |||
Debt issuance cost, net | (95,511,000) | (108,328,000) | |||
Premium | 5,980,000 | 23,771,000 | |||
Swap | (15,088,000) | (9,123,000) | |||
Total | $ 8,376,559,000 | 7,863,162,000 | |||
7.500% Senior Secured Notes due 2019 | |||||
Debt | |||||
Stated interest rate on debt (as a percent) | 7.50% | 7.50% | |||
5.500% Senior Secured Notes due 2020 | |||||
Debt | |||||
Stated interest rate on debt (as a percent) | 5.50% | 5.50% | |||
Senior Notes | |||||
Debt | |||||
Principal | $ 5,987,578,000 | 6,572,665,000 | |||
Debt issuance cost, net | (63,266,000) | (80,309,000) | |||
Premium | 5,980,000 | 23,771,000 | |||
Swap | (15,088,000) | (9,123,000) | |||
Total | 5,915,204,000 | 6,507,004,000 | |||
Senior Notes | 6.250% Senior Secured Notes due 2022 | |||||
Debt | |||||
Principal | 1,500,000,000 | 1,500,000,000 | |||
Debt issuance cost, net | (14,808,000) | (17,804,000) | |||
Premium | 0 | 0 | |||
Swap | (15,117,000) | (10,046,000) | |||
Total | $ 1,470,075,000 | $ 1,472,150,000 | |||
Stated interest rate on debt (as a percent) | 6.25% | 6.25% | 6.25% | ||
Senior Notes | 6.500% Senior Secured Notes due 2025 | |||||
Debt | |||||
Principal | $ 1,100,000,000 | $ 1,100,000,000 | |||
Debt issuance cost, net | (13,087,000) | (14,463,000) | |||
Premium | 0 | 0 | |||
Swap | 0 | 0 | |||
Total | $ 1,086,913,000 | $ 1,085,537,000 | |||
Stated interest rate on debt (as a percent) | 6.50% | 6.50% | 6.50% | ||
Senior Notes | 4.750% Senior Secured Notes due 2023 | |||||
Debt | |||||
Principal | $ 1,019,405,000 | € 850,000,000 | $ 895,985,000 | ||
Debt issuance cost, net | (10,804,000) | (11,068,000) | |||
Premium | 0 | 0 | |||
Swap | 0 | 0 | |||
Total | $ 1,008,601,000 | $ 884,917,000 | |||
Stated interest rate on debt (as a percent) | 4.75% | 4.75% | 4.75% | ||
Senior Notes | 4.125% Senior Secured Notes due 2020 | |||||
Debt | |||||
Principal | $ 839,510,000 | € 700,000,000 | $ 737,870,000 | ||
Debt issuance cost, net | (5,855,000) | (7,405,000) | |||
Premium | 0 | 0 | |||
Swap | 0 | 0 | |||
Total | $ 833,655,000 | $ 730,465,000 | |||
Stated interest rate on debt (as a percent) | 4.125% | 4.125% | 4.125% | ||
Senior Notes | 5.625% Senior Secured Notes due 2020 | |||||
Debt | |||||
Principal | $ 600,000,000 | $ 600,000,000 | |||
Debt issuance cost, net | (4,233,000) | (6,046,000) | |||
Premium | 0 | 0 | |||
Swap | 0 | 0 | |||
Total | $ 595,767,000 | $ 593,954,000 | |||
Stated interest rate on debt (as a percent) | 5.625% | 5.625% | 5.625% | ||
Senior Notes | 4.750% Senior Secured Notes due 2020 | |||||
Debt | |||||
Principal | $ 599,650,000 | € 500,000,000 | $ 527,050,000 | ||
Debt issuance cost, net | (14,479,000) | (18,000,000) | |||
Premium | 0 | 0 | |||
Swap | 0 | 0 | |||
Total | $ 585,171,000 | $ 509,050,000 | |||
Stated interest rate on debt (as a percent) | 4.75% | 4.75% | 4.75% | ||
Senior Notes | 7.500% Senior Secured Notes due 2019 | |||||
Debt | |||||
Principal | $ 144,303,000 | $ 500,000,000 | $ 500,000,000 | ||
Debt issuance cost, net | 0 | (29,000) | |||
Premium | 3,708,000 | 20,733,000 | |||
Swap | 220,000 | 1,190,000 | |||
Total | $ 148,231,000 | $ 521,894,000 | |||
Stated interest rate on debt (as a percent) | 7.50% | 7.50% | 7.50% | 7.50% | |
Senior Notes | 5.500% Senior Secured Notes due 2020 | |||||
Debt | |||||
Principal | $ 124,143,000 | $ 124,143,000 | |||
Debt issuance cost, net | 0 | 0 | |||
Premium | 1,757,000 | 2,418,000 | |||
Swap | (191,000) | (267,000) | |||
Total | $ 125,709,000 | $ 126,294,000 | |||
Stated interest rate on debt (as a percent) | 5.50% | 5.50% | 5.50% | ||
Senior Notes | 5.350% Senior Secured Notes due 2023 | |||||
Debt | |||||
Principal | $ 60,567,000 | $ 60,567,000 | |||
Debt issuance cost, net | 0 | 0 | |||
Premium | 515,000 | 620,000 | |||
Swap | 0 | 0 | |||
Total | $ 61,082,000 | $ 61,187,000 | |||
Stated interest rate on debt (as a percent) | 5.35% | 5.35% | 5.35% | ||
Senior Notes | 6.625% Senior Secured Notes due 2018 | |||||
Debt | |||||
Principal | $ 599,650,000 | € 500,000,000 | $ 527,050,000 | ||
Debt issuance cost, net | (536,000) | (5,494,000) | |||
Premium | 0 | 0 | |||
Swap | 0 | 0 | |||
Total | $ 599,114,000 | $ 521,556,000 | |||
Stated interest rate on debt (as a percent) | 6.625% | 6.625% | 6.625% | 6.625% | |
Term loan | Term Loan Facility due 2023 | |||||
Debt | |||||
Principal | $ 1,798,950,000 | € 1,500,000,000 | |||
Debt issuance cost, net | (13,589,000) | ||||
Premium | 0 | ||||
Swap | 0 | ||||
Total | 1,785,361,000 | ||||
Term loan | Term Loan Facilities due 2019 | |||||
Debt | |||||
Principal | $ 843,280,000 | ||||
Debt issuance cost, net | (3,728,000) | ||||
Premium | 0 | ||||
Swap | 0 | ||||
Total | 839,552,000 | ||||
Revolving Credit Facilities due 2021 | Revolving Credit Facilities due 2021 | |||||
Debt | |||||
Principal | 95,000,000 | 540,820,000 | |||
Debt issuance cost, net | (18,120,000) | (24,291,000) | |||
Premium | 0 | 0 | |||
Swap | 0 | 0 | |||
Total | $ 76,880,000 | 516,529,000 | |||
Other | Other | |||||
Debt | |||||
Principal | 77,000 | ||||
Debt issuance cost, net | 0 | ||||
Premium | 0 | ||||
Swap | 0 | ||||
Total | $ 77,000 |
Debt - Maturities (Details)
Debt - Maturities (Details) € in Thousands, $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Jul. 25, 2017 | Jun. 12, 2017 | Dec. 31, 2016 |
Payments by calendar year | |||||
2,018 | $ 599,650 | ||||
2,019 | 144,303 | ||||
2,020 | 2,547,079 | ||||
2,021 | 478,776 | ||||
2,022 | 1,883,776 | ||||
2023 and thereafter | 2,827,594 | ||||
Total | $ 8,481,178 | ||||
7.500% Senior Secured Notes due 2019 | |||||
Payments by calendar year | |||||
Stated interest rate on debt (as a percent) | 7.50% | 7.50% | |||
5.500% Senior Secured Notes due 2020 | |||||
Payments by calendar year | |||||
Stated interest rate on debt (as a percent) | 5.50% | 5.50% | |||
Senior Notes | |||||
Payments by calendar year | |||||
2,018 | $ 0 | ||||
2,019 | 144,303 | ||||
2,020 | 2,163,303 | ||||
2,021 | 0 | ||||
2,022 | 1,500,000 | ||||
2023 and thereafter | 2,179,972 | ||||
Total | 5,987,578 | ||||
Senior Notes | 6.250% Senior Secured Notes due 2022 | |||||
Payments by calendar year | |||||
2,018 | 0 | ||||
2,019 | 0 | ||||
2,020 | 0 | ||||
2,021 | 0 | ||||
2,022 | 1,500,000 | ||||
2023 and thereafter | 0 | ||||
Total | $ 1,500,000 | ||||
Stated interest rate on debt (as a percent) | 6.25% | 6.25% | 6.25% | ||
Senior Notes | 6.500% Senior Secured Notes due 2025 | |||||
Payments by calendar year | |||||
2,018 | $ 0 | ||||
2,019 | 0 | ||||
2,020 | 0 | ||||
2,021 | 0 | ||||
2,022 | 0 | ||||
2023 and thereafter | 1,100,000 | ||||
Total | $ 1,100,000 | ||||
Stated interest rate on debt (as a percent) | 6.50% | 6.50% | 6.50% | ||
Senior Notes | 4.750% Senior Secured Notes due 2023 | |||||
Payments by calendar year | |||||
2,018 | $ 0 | ||||
2,019 | 0 | ||||
2,020 | 0 | ||||
2,021 | 0 | ||||
2,022 | 0 | ||||
2023 and thereafter | 1,019,405 | ||||
Total | $ 1,019,405 | ||||
Stated interest rate on debt (as a percent) | 4.75% | 4.75% | 4.75% | ||
Senior Notes | 4.125% Senior Secured Notes due 2020 | |||||
Payments by calendar year | |||||
2,018 | $ 0 | ||||
2,019 | 0 | ||||
2,020 | 839,510 | ||||
2,021 | 0 | ||||
2,022 | 0 | ||||
2023 and thereafter | 0 | ||||
Total | $ 839,510 | ||||
Stated interest rate on debt (as a percent) | 4.125% | 4.125% | 4.125% | ||
Senior Notes | 5.625% Senior Secured Notes due 2020 | |||||
Payments by calendar year | |||||
2,018 | $ 0 | ||||
2,019 | 0 | ||||
2,020 | 600,000 | ||||
2,021 | 0 | ||||
2,022 | 0 | ||||
2023 and thereafter | 0 | ||||
Total | $ 600,000 | ||||
Stated interest rate on debt (as a percent) | 5.625% | 5.625% | 5.625% | ||
Senior Notes | 4.750% Senior Secured Notes due 2020 | |||||
Payments by calendar year | |||||
2,018 | $ 0 | ||||
2,019 | 0 | ||||
2,020 | 599,650 | ||||
2,021 | 0 | ||||
2,022 | 0 | ||||
2023 and thereafter | 0 | ||||
Total | $ 599,650 | ||||
Stated interest rate on debt (as a percent) | 4.75% | 4.75% | 4.75% | ||
Senior Notes | 7.500% Senior Secured Notes due 2019 | |||||
Payments by calendar year | |||||
2,018 | $ 0 | ||||
2,019 | 144,303 | ||||
2,020 | 0 | ||||
2,021 | 0 | ||||
2,022 | 0 | ||||
2023 and thereafter | 0 | ||||
Total | $ 144,303 | ||||
Stated interest rate on debt (as a percent) | 7.50% | 7.50% | 7.50% | 7.50% | |
Senior Notes | 5.500% Senior Secured Notes due 2020 | |||||
Payments by calendar year | |||||
2,018 | $ 0 | ||||
2,019 | 0 | ||||
2,020 | 124,143 | ||||
2,021 | 0 | ||||
2,022 | 0 | ||||
2023 and thereafter | 0 | ||||
Total | $ 124,143 | ||||
Stated interest rate on debt (as a percent) | 5.50% | 5.50% | 5.50% | ||
Senior Notes | 5.350% Senior Secured Notes due 2023 | |||||
Payments by calendar year | |||||
2,018 | $ 0 | ||||
2,019 | 0 | ||||
2,020 | 0 | ||||
2,021 | 0 | ||||
2,022 | 0 | ||||
2023 and thereafter | 60,567 | ||||
Total | $ 60,567 | ||||
Stated interest rate on debt (as a percent) | 5.35% | 5.35% | 5.35% | ||
Senior Notes | 6.625% Senior Secured Notes due 2018 | |||||
Payments by calendar year | |||||
2,018 | $ 599,650 | ||||
2,019 | 0 | ||||
2,020 | 0 | ||||
2,021 | 0 | ||||
2,022 | 0 | ||||
2023 and thereafter | 0 | ||||
Total | $ 599,650 | ||||
Stated interest rate on debt (as a percent) | 6.625% | 6.625% | 6.625% | 6.625% | |
Term loan | Term Loan Facility due 2023 | |||||
Payments by calendar year | |||||
2,018 | $ 0 | ||||
2,019 | 0 | € 320,000 | |||
2,020 | 383,776 | 320,000 | |||
2,021 | 383,776 | 320,000 | |||
2,022 | 383,776 | € 540,000 | |||
2023 and thereafter | 647,622 | ||||
Total | 1,798,950 | ||||
Revolving Credit Facilities due 2021 | Revolving Credit Facilities due 2021 | |||||
Payments by calendar year | |||||
2,018 | 0 | ||||
2,019 | 0 | ||||
2,020 | 0 | ||||
2,021 | 95,000 | ||||
2,022 | 0 | ||||
2023 and thereafter | 0 | ||||
Total | $ 95,000 |
Debt - Schedule of Senior Secur
Debt - Schedule of Senior Secured Notes (Details) | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Jul. 25, 2017 | Jun. 12, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt | |||||
Principal | $ 8,481,178,000 | $ 7,956,842,000 | |||
Minimum principal balance of intercompany loans securing the debt | $ 10,000,000 | ||||
7.500% Senior Secured Notes due 2019 | |||||
Debt | |||||
Stated interest rate on debt (as a percent) | 7.50% | 7.50% | |||
5.500% Senior Secured Notes due 2020 | |||||
Debt | |||||
Stated interest rate on debt (as a percent) | 5.50% | 5.50% | |||
Senior Notes | |||||
Debt | |||||
Principal | $ 5,987,578,000 | 6,572,665,000 | |||
Senior Notes | 6.250% Senior Secured Notes due 2022 | |||||
Debt | |||||
Principal | $ 1,500,000,000 | $ 1,500,000,000 | |||
Effective interest rate (as a percent) | 6.52% | 6.52% | |||
Stated interest rate on debt (as a percent) | 6.25% | 6.25% | 6.25% | ||
Senior Notes | 6.250% Senior Secured Notes due 2022 | Redemption, six months prior to maturity | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 6.250% Senior Secured Notes due 2022 | Redemption, after maturity | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 6.250% Senior Secured Notes due 2022 | Redemption, after certain tax events | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 6.250% Senior Secured Notes due 2022 | Redemption, upon certain events, required to offer to repurchase | |||||
Debt | |||||
Debt redemption price (as a percent) | 101.00% | ||||
Senior Notes | 6.500% Senior Secured Notes due 2025 | |||||
Debt | |||||
Principal | $ 1,100,000,000 | $ 1,100,000,000 | |||
Effective interest rate (as a percent) | 6.71% | 6.71% | |||
Stated interest rate on debt (as a percent) | 6.50% | 6.50% | 6.50% | ||
Senior Notes | 6.500% Senior Secured Notes due 2025 | Redemption, six months prior to maturity | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 6.500% Senior Secured Notes due 2025 | Redemption, after maturity | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 6.500% Senior Secured Notes due 2025 | Redemption, after certain tax events | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 6.500% Senior Secured Notes due 2025 | Redemption, upon certain events, required to offer to repurchase | |||||
Debt | |||||
Debt redemption price (as a percent) | 101.00% | ||||
Senior Notes | 4.750% Senior Secured Notes due 2023 | |||||
Debt | |||||
Principal | $ 1,019,405,000 | € 850,000,000 | $ 895,985,000 | ||
Effective interest rate (as a percent) | 4.98% | 4.98% | |||
Stated interest rate on debt (as a percent) | 4.75% | 4.75% | 4.75% | ||
Senior Notes | 4.750% Senior Secured Notes due 2023 | Redemption, six months prior to maturity | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 4.750% Senior Secured Notes due 2023 | Redemption, after maturity | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 4.750% Senior Secured Notes due 2023 | Redemption, after certain tax events | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 4.750% Senior Secured Notes due 2023 | Redemption, upon certain events, required to offer to repurchase | |||||
Debt | |||||
Debt redemption price (as a percent) | 101.00% | ||||
Senior Notes | 4.125% Senior Secured Notes due 2020 | |||||
Debt | |||||
Principal | $ 839,510,000 | € 700,000,000 | $ 737,870,000 | ||
Effective interest rate (as a percent) | 4.47% | 4.47% | |||
Stated interest rate on debt (as a percent) | 4.125% | 4.125% | 4.125% | ||
Senior Notes | 4.125% Senior Secured Notes due 2020 | Redemption, three months prior to maturity | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 4.125% Senior Secured Notes due 2020 | Redemption, after maturity | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 4.125% Senior Secured Notes due 2020 | Redemption, after certain tax events | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 4.125% Senior Secured Notes due 2020 | Redemption, upon certain events, required to offer to repurchase | |||||
Debt | |||||
Debt redemption price (as a percent) | 101.00% | ||||
Senior Notes | 5.625% Senior Secured Notes due 2020 | |||||
Debt | |||||
Principal | $ 600,000,000 | $ 600,000,000 | |||
Effective interest rate (as a percent) | 5.98% | 5.98% | |||
Stated interest rate on debt (as a percent) | 5.625% | 5.625% | 5.625% | ||
Senior Notes | 5.625% Senior Secured Notes due 2020 | Redemption, three months prior to maturity | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 5.625% Senior Secured Notes due 2020 | Redemption, after maturity | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 5.625% Senior Secured Notes due 2020 | Redemption, after certain tax events | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 5.625% Senior Secured Notes due 2020 | Redemption, upon certain events, required to offer to repurchase | |||||
Debt | |||||
Debt redemption price (as a percent) | 101.00% | ||||
Senior Notes | 4.750% Senior Secured Notes due 2020 | |||||
Debt | |||||
Principal | $ 599,650,000 | € 500,000,000 | $ 527,050,000 | ||
Effective interest rate (as a percent) | 6.00% | 6.00% | |||
Stated interest rate on debt (as a percent) | 4.75% | 4.75% | 4.75% | ||
Senior Notes | 4.750% Senior Secured Notes due 2020 | Redemption, after certain tax events | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 4.750% Senior Secured Notes due 2020 | Redemption, greater of 100% or amount specified | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 4.750% Senior Secured Notes due 2020 | Redemption, upon certain events, required to redeem | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 7.500% Senior Secured Notes due 2019 | |||||
Debt | |||||
Principal | $ 144,303,000 | $ 500,000,000 | $ 500,000,000 | ||
Effective interest rate (as a percent) | 5.67% | 5.67% | |||
Stated interest rate on debt (as a percent) | 7.50% | 7.50% | 7.50% | 7.50% | |
Senior Notes | 7.500% Senior Secured Notes due 2019 | Redemption, upon certain events, required to offer to repurchase | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 7.500% Senior Secured Notes due 2019 | Redemption, may redeem with make-whole premium | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 5.500% Senior Secured Notes due 2020 | |||||
Debt | |||||
Principal | $ 124,143,000 | $ 124,143,000 | |||
Effective interest rate (as a percent) | 4.88% | 4.88% | |||
Stated interest rate on debt (as a percent) | 5.50% | 5.50% | 5.50% | ||
Senior Notes | 5.500% Senior Secured Notes due 2020 | Redemption, upon certain events, required to offer to repurchase | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 5.500% Senior Secured Notes due 2020 | Redemption, may redeem with make-whole premium | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 5.350% Senior Secured Notes due 2023 | |||||
Debt | |||||
Principal | $ 60,567,000 | $ 60,567,000 | |||
Effective interest rate (as a percent) | 5.47% | 5.47% | |||
Stated interest rate on debt (as a percent) | 5.35% | 5.35% | 5.35% | ||
Senior Notes | 5.350% Senior Secured Notes due 2023 | Redemption, upon certain events, required to offer to repurchase | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 5.350% Senior Secured Notes due 2023 | Redemption, may redeem with make-whole premium | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 6.625% Senior Secured Notes due 2018 | |||||
Debt | |||||
Principal | $ 599,650,000 | € 500,000,000 | $ 527,050,000 | ||
Effective interest rate (as a percent) | 7.74% | 7.74% | |||
Stated interest rate on debt (as a percent) | 6.625% | 6.625% | 6.625% | 6.625% | |
Rate decrease upon favorable debt rating (as a percent) | 1.25% | 1.25% | |||
Senior Notes | 6.625% Senior Secured Notes due 2018 | Redemption, after certain tax events | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 6.625% Senior Secured Notes due 2018 | Redemption, greater of 100% or amount specified | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% | ||||
Senior Notes | 6.625% Senior Secured Notes due 2018 | Redemption, upon certain events, required to redeem | |||||
Debt | |||||
Debt redemption price (as a percent) | 100.00% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jul. 25, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Jul. 31, 2017EUR (€) | Jul. 30, 2017USD ($) | Jul. 30, 2017EUR (€) | Jun. 21, 2017USD ($) | Jun. 12, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt | |||||||||
Principal | $ 8,481,178,000 | $ 7,956,842,000 | |||||||
Payments for general corporate purposes | € | € 40,000,000 | ||||||||
Minimum principal balance of intercompany loans securing the debt | 10,000,000 | ||||||||
Unused available liquidity | $ 1,974,000,000 | $ 2,367,000,000 | |||||||
7.500% Senior Secured Notes due 2019 | |||||||||
Debt | |||||||||
Stated interest rate (as a percent) | 7.50% | 7.50% | |||||||
Term Loan Facility due 2023 | |||||||||
Debt | |||||||||
Effective interest rate (as a percent) | 2.05% | 2.05% | |||||||
Term Loan Facilities due 2019 | |||||||||
Debt | |||||||||
Minimum principal balance of intercompany loans securing the debt | $ 10,000,000 | ||||||||
Revolving Credit Facilities due 2021 | |||||||||
Debt | |||||||||
Effective interest rate (as a percent) | 3.48% | 3.48% | 2.42% | ||||||
Commitment fees (as a percent) | 0.725% | ||||||||
Utilization fee (as a percent) | 0.15% | ||||||||
Revolving Credit Facility A | |||||||||
Debt | |||||||||
Maximum amount | € 1,200,000,000 | $ 1,800,000,000 | |||||||
Revolving Credit Facility B | |||||||||
Debt | |||||||||
Maximum amount | € | € 725,000,000 | € 1,050,000,000 | |||||||
Senior Notes | |||||||||
Debt | |||||||||
Principal | $ 5,987,578,000 | $ 6,572,665,000 | |||||||
Senior Notes | 7.500% Senior Secured Notes due 2019 | |||||||||
Debt | |||||||||
Principal | $ 144,303,000 | $ 500,000,000 | $ 500,000,000 | ||||||
Stated interest rate (as a percent) | 7.50% | 7.50% | 7.50% | 7.50% | |||||
Total purchase amount | $ 355,700,000 | ||||||||
Repurchase amount | $ 393,500,000 | ||||||||
Loss on extinguishment of debt | $ 25,700,000 | ||||||||
Effective interest rate (as a percent) | 5.67% | 5.67% | |||||||
Senior Notes | 6.625% Senior Secured Notes due 2018 | |||||||||
Debt | |||||||||
Principal | $ 599,650,000 | € 500,000,000 | $ 527,050,000 | ||||||
Stated interest rate (as a percent) | 6.625% | 6.625% | 6.625% | 6.625% | |||||
Repayments of debt | € | € 500,000,000 | ||||||||
Effective interest rate (as a percent) | 7.74% | 7.74% | |||||||
Term loan | Term Loan Facility due 2023 | |||||||||
Debt | |||||||||
Principal | 1,500,000,000 | $ 1,798,950,000 | |||||||
Term loan | Term Loan Facilities due 2019 | |||||||||
Debt | |||||||||
Principal | $ 843,280,000 | ||||||||
Repayments of debt | € | 800,000,000 | ||||||||
Revolving Credit Facilities due 2021 | Revolving Credit Facilities due 2021 | |||||||||
Debt | |||||||||
Principal | $ 95,000,000 | $ 540,820,000 | |||||||
Repayments of debt | € | € 160,000,000 |
Debt Debt - Schedule of Install
Debt Debt - Schedule of Installments (Details) - Dec. 31, 2017 € in Thousands, $ in Thousands | USD ($) | EUR (€) |
Debt Instrument, Redemption [Line Items] | ||
January 25, 2020 | $ 144,303 | |
January 25, 2021 | 2,547,079 | |
January 25, 2022 | 478,776 | |
January 25, 2023 | 1,883,776 | |
Term loan | Term Loan Facility due 2023 | ||
Debt Instrument, Redemption [Line Items] | ||
January 25, 2020 | 0 | € 320,000 |
January 25, 2021 | 383,776 | 320,000 |
January 25, 2022 | 383,776 | 320,000 |
January 25, 2023 | $ 383,776 | € 540,000 |
Debt - Schedule of Revolving Cr
Debt - Schedule of Revolving Credit Facilities (Details) | Jul. 31, 2017EUR (€) | Jul. 30, 2017USD ($) | Jul. 30, 2017EUR (€) |
Revolving Credit Facility A | |||
Debt | |||
Maximum amount | € 1,200,000,000 | $ 1,800,000,000 | |
Revolving Credit Facility B | |||
Debt | |||
Maximum amount | € 725,000,000 | € 1,050,000,000 |
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, 2017 | Dec. 31, 2016 |
Letters of Credit | ||
Debt | ||
Letters of Credit Outstanding | $ 510,962 | $ 827,850 |
Weighted Average Annual Cost (as a percent) | 1.02% | 0.94% |
Letters of Credit | Revolving Credit Facilities | ||
Debt | ||
Letters of Credit Outstanding | $ 510,962 | $ 827,850 |
Revolving Credit Facilities due 2021 | ||
Debt | ||
Letters of Credit Outstanding | $ 0 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Thousands, € in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 21, 2017EUR (€) | Jun. 20, 2016EUR (€) | Feb. 26, 2016EUR (€) | Dec. 31, 2015EUR (€) | Nov. 30, 2012MXN ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017MXN ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017EUR (€) | Jun. 20, 2016USD ($)additional_claim | Jun. 20, 2016EUR (€)additional_claim | Nov. 30, 2012USD ($) | Nov. 30, 2012MXN ($) |
Income Tax [Line Items] | ||||||||||||||||
Transition Toll Tax, accrued liabilities | $ 60,500 | $ 60,500 | ||||||||||||||
Transition Toll Tax, accrued liabilities, current | 4,800 | 4,800 | ||||||||||||||
Tax Act, income tax benefit | 174,700 | |||||||||||||||
Income taxes paid (net of refunds) | $ 296,400 | $ 183,300 | $ 199,200 | |||||||||||||
United Kingdom statutory tax rate (as a percent) | 19.25% | 19.25% | 20.00% | 20.25% | ||||||||||||
Effective tax rate (as a percent) | 3.00% | 3.00% | 18.30% | (228.40%) | ||||||||||||
Tax rate change (benefit) expense | $ (2,463) | $ (8,422) | $ (4,746) | |||||||||||||
Excess tax deductions | 3,300 | |||||||||||||||
Deferred income taxes | 41,546 | 41,546 | 31,376 | |||||||||||||
Gross tax operating loss carryforwards | 1,061,000 | 1,061,000 | ||||||||||||||
Net operating loss carryforward, valuation allowance | 819,700 | 819,700 | ||||||||||||||
Valuation allowance, increase (decrease) | 32,900 | 11,900 | ||||||||||||||
Provisional repatriation tax amount | 9,300 | |||||||||||||||
Deferred tax effects on future repatriations | 10,200 | 10,200 | ||||||||||||||
Unrecognized tax benefits that, if recognized, would impact effective tax rates | 16,600 | $ 30,100 | 16,600 | 10,800 | 30,100 | |||||||||||
Interest expense, penalties and inflationary adjustments recognized in income tax expense | 12,100 | (100) | (10,000) | |||||||||||||
Accrued interest on unrecognized tax benefits as of end of year | 15,700 | 3,700 | $ 15,700 | 3,600 | $ 3,700 | |||||||||||
United Kingdom | ||||||||||||||||
Income Tax [Line Items] | ||||||||||||||||
Tax rate change (benefit) expense | $ 1,400 | |||||||||||||||
United Kingdom | Tax Year 2015 | ||||||||||||||||
Income Tax [Line Items] | ||||||||||||||||
Enacted tax rate (as a percent) | 20.00% | |||||||||||||||
United Kingdom | Tax Year 2017 | ||||||||||||||||
Income Tax [Line Items] | ||||||||||||||||
Enacted tax rate (as a percent) | 19.00% | |||||||||||||||
United Kingdom | Tax Year 2020 | ||||||||||||||||
Income Tax [Line Items] | ||||||||||||||||
Enacted tax rate (as a percent) | 18.00% | |||||||||||||||
Italy | ||||||||||||||||
Income Tax [Line Items] | ||||||||||||||||
Tax rate change (benefit) expense | $ (11,800) | |||||||||||||||
Italy | Tax Year 2015 | ||||||||||||||||
Income Tax [Line Items] | ||||||||||||||||
Enacted tax rate (as a percent) | 27.50% | |||||||||||||||
Italy | Tax Year 2017 | ||||||||||||||||
Income Tax [Line Items] | ||||||||||||||||
Enacted tax rate (as a percent) | 24.00% | 24.00% | ||||||||||||||
Italy | Tax Years 2014 through 2015 | ||||||||||||||||
Income Tax [Line Items] | ||||||||||||||||
Alleged taxes, penalties and adjustments | 3,800 | € 3.2 | ||||||||||||||
Income tax audit, tax reserve | 400 | $ 400 | € 0.3 | |||||||||||||
Italy | Tax Years 2006 Through 2010 | ||||||||||||||||
Income Tax [Line Items] | ||||||||||||||||
Alleged taxes, penalties and adjustments | € | € 200 | |||||||||||||||
Italy | Tax Years 2011 Through 2014 | ||||||||||||||||
Income Tax [Line Items] | ||||||||||||||||
Alleged taxes, penalties and adjustments | € | € 275 | |||||||||||||||
Income tax liability incurred in settlement | $ 15,300 | € 13.5 | ||||||||||||||
Number of additional claims | additional_claim | 2 | 2 | ||||||||||||||
Alleged improper deduction of VAT | € | € 140 | |||||||||||||||
Mexico | Tax Year 2006 | ||||||||||||||||
Income Tax [Line Items] | ||||||||||||||||
Alleged taxes, penalties and adjustments | $ 424 | $ 520 | ||||||||||||||
Alleged taxes, penalties and adjustments percentage associated with deductibility of cost of goods sold | 65.00% | |||||||||||||||
Income tax audit, tax reserve | 17,400 | 17,400 | $ 19,100 | $ 341 | ||||||||||||
Accounting Standards Update 2016-09 | ||||||||||||||||
Income Tax [Line Items] | ||||||||||||||||
Deferred income taxes | 1,200 | |||||||||||||||
Accounting Standards Update 2016-09 | Retained earnings | ||||||||||||||||
Income Tax [Line Items] | ||||||||||||||||
Cumulative effect on retained earnings | $ 1,200 | |||||||||||||||
Domestic Tax Authority | United Kingdom | ||||||||||||||||
Income Tax [Line Items] | ||||||||||||||||
Gross tax operating loss carryforwards | 422,700 | 422,700 | ||||||||||||||
Foreign Tax Authority | ||||||||||||||||
Income Tax [Line Items] | ||||||||||||||||
Gross tax operating loss carryforwards | 451,900 | 451,900 | ||||||||||||||
Foreign Tax Authority | United States | ||||||||||||||||
Income Tax [Line Items] | ||||||||||||||||
Gross tax operating loss carryforwards | 186,400 | 186,400 | ||||||||||||||
State | ||||||||||||||||
Income Tax [Line Items] | ||||||||||||||||
Gross tax operating loss carryforwards | $ 16,400 | $ 16,400 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||
(Loss) income before (benefit from) provision for income taxes | $ (976,925) | $ 323,413 | $ (17,031) |
Italy | |||
Income Tax Contingency [Line Items] | |||
Foreign | 479,851 | 578,221 | 419,116 |
United States | |||
Income Tax Contingency [Line Items] | |||
Foreign | (1,173,601) | (355,451) | (379,425) |
United Kingdom | |||
Income Tax Contingency [Line Items] | |||
United Kingdom | (408,595) | 87,269 | (150,475) |
All other | |||
Income Tax Contingency [Line Items] | |||
Foreign | $ 125,420 | $ 13,374 | $ 93,753 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||
Total Current | $ 266,851 | $ 212,855 | $ 188,137 |
Total Deferred | (296,265) | (153,649) | (149,241) |
Provision for income taxes | (29,414) | 59,206 | 38,896 |
Italy | |||
Income Tax Contingency [Line Items] | |||
Foreign | 131,155 | 192,712 | 168,915 |
Foreign | 865 | (5,837) | 1,660 |
United States | |||
Income Tax Contingency [Line Items] | |||
Foreign | 80,140 | (16,982) | (24,434) |
Foreign | (175,539) | (109,139) | (121,032) |
United Kingdom | |||
Income Tax Contingency [Line Items] | |||
Domestic | 733 | 711 | (5,097) |
Domestic | 4,366 | 19,232 | (16,242) |
All other | |||
Income Tax Contingency [Line Items] | |||
Foreign | 54,823 | 36,414 | 48,753 |
Foreign | $ (125,957) | $ (57,905) | $ (13,627) |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
(Loss) income before provision for income taxes | $ (976,925) | $ 323,413 | $ (17,031) |
United Kingdom statutory tax rate (as a percent) | 19.25% | 20.00% | 20.25% |
Statutory tax (benefit) expense | $ (188,058) | $ 64,682 | $ (3,449) |
Tax Impact of 2017 Tax Act | (114,219) | 0 | 0 |
Foreign tax and statutory rate differential | (71,050) | (17,013) | (48,407) |
Italian allowance for corporate equity | (11,761) | (9,243) | (6,929) |
Research and development tax credit | (5,052) | (4,980) | (4,393) |
Tax impact of tax law and rate changes excluding the Tax Act | (2,463) | (8,422) | (4,746) |
Non-controlling interest | (2,205) | (3,605) | 8,565 |
Provision to return adjustments | (1,334) | (6,705) | (1,434) |
Nondeductible expenses | 1,204 | 2,659 | 30,244 |
Tax cost of tax dividends | 3,041 | 4,619 | 12,888 |
Foreign withholding and state taxes on unremitted earnings | 9,290 | 0 | 0 |
Foreign tax expense, net of federal benefit | 14,500 | 3,457 | 9,003 |
Change in unrecognized tax benefits | 20,624 | (10,914) | (15,593) |
IRAP and other state taxes | 33,484 | 36,754 | 29,697 |
Change in valuation allowances | 58,672 | 3,610 | 7,495 |
Capital gain taxes on sale of DoubleDown | 94,303 | 0 | 0 |
Nondeductible goodwill impairment | 137,445 | 0 | 0 |
Italian tax litigation settlement | 0 | 15,256 | 0 |
Non-taxable gains on investments | 0 | (5,880) | 0 |
Italian reorganization tax | 0 | 0 | 13,405 |
Other | (5,835) | (5,069) | 12,550 |
Provision for income taxes | $ (29,414) | $ 59,206 | $ 38,896 |
Effective tax rate (as a percent) | 3.00% | 18.30% | (228.40%) |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||||
Net operating losses | $ 241,702 | $ 266,547 | ||
Provisions not currently deductible for tax purposes | 132,365 | 160,202 | ||
Depreciation and amortization | 72,101 | 118,122 | ||
Jackpot timing differences | 51,438 | 83,989 | ||
Inventory reserves | 9,913 | 15,974 | ||
Deferred revenue | 5,317 | 9,129 | ||
Stock-based compensation | 2,402 | 7,468 | ||
Credit carryforwards | 0 | 38,618 | ||
Other | 4,155 | 15,897 | ||
Gross deferred tax assets | 519,393 | 715,946 | ||
Valuation allowance | (184,554) | (151,653) | $ (139,663) | $ (77,631) |
Net deferred tax assets | 334,839 | 564,293 | ||
Deferred tax liabilities: | ||||
Acquired intangible assets | 635,471 | 1,115,345 | ||
Depreciation and amortization | 138,764 | 144,115 | ||
Other | 10,518 | 35,381 | ||
Total deferred tax liabilities | 784,753 | 1,294,841 | ||
Net deferred income tax liability | (449,914) | (730,548) | ||
Deferred income taxes - non-current asset | 41,546 | 31,376 | ||
Deferred income taxes - non-current liability | $ (491,460) | $ (761,924) |
Income Taxes - Reconciliatio102
Income Taxes - Reconciliation of the Beginning and Ending Amount of Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 151,653 | $ 139,663 | $ 77,631 |
Expiration of tax attributes | (25,771) | 0 | 0 |
Net charges to expense | 58,672 | 11,990 | 62,032 |
Balance at end of year | $ 184,554 | $ 151,653 | $ 139,663 |
Income Taxes - Reconciliatio103
Income Taxes - Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 14,340 | $ 37,370 | $ 6,296 |
Current year acquisition | 0 | 0 | 49,934 |
Additions to tax positions - current year | 479 | 423 | 9,462 |
Additions to tax positions - prior years | 7,503 | 1,718 | 0 |
Reductions to tax positions - current year | (893) | (652) | 0 |
Reductions to tax positions - prior years | (41) | (12,755) | (7,733) |
Settlements | 0 | (8,750) | (5,313) |
Lapses in statutes of limitations | (413) | (3,014) | (15,276) |
Balance at end of year | $ 20,975 | $ 14,340 | $ 37,370 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan | |||
Expense recognized related to the matching contribution | $ 13.8 | $ 13.8 | $ 10.8 |
Defined Benefit Plan [Abstract] | |||
Net benefit expense | 8.1 | 8.8 | 6.8 |
Present value of the defined benefit obligation | $ 12.3 | $ 11.3 | $ 11.2 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands, € in Millions, R$ in Millions | Mar. 29, 2017USD ($)renewal_period | Oct. 20, 2016USD ($) | Sep. 15, 2016USD ($) | Jun. 10, 2016USD ($) | Dec. 30, 2015 | Jan. 07, 2015USD ($) | Dec. 09, 2014USD ($)plaintiff | Dec. 31, 2017USD ($)lawsuitextension_optioncontract | Dec. 31, 2017BRL (R$)lawsuitextension_optioncontract | Dec. 31, 2017MXN ($)lawsuitextension_optioncontract | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017BRL (R$) |
Loss Contingencies [Line Items] | ||||||||||||||
Rent and lease expense | $ 81,900 | $ 72,500 | $ 60,800 | |||||||||||
Maximum potential commitments | 746,659 | |||||||||||||
Provisions for litigation matters | 4,700 | |||||||||||||
Brazil ICMS Tax | Brazil ICMS Tax | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Damages claimed | $ 5,600 | R$ 18.5 | ||||||||||||
Texas Fun 5’s Instant Ticket Game | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Number of lawsuits | lawsuit | 5 | 5 | 5 | |||||||||||
Steele, et al. v. GTECH Corporation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Number of individuals claiming damages | plaintiff | 1,200 | |||||||||||||
Mexican Tax Administration Service | Assessment of income tax, VAT, interest and penalties | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Damages claimed | $ 26,500 | $ 520,806,390 | ||||||||||||
Mexican Tax Administration Service | Denial of deduction for inventory sold | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Alleged taxes, penalties and adjustments percentage associated with deductibility of cost of goods sold | 65.00% | 65.00% | 65.00% | |||||||||||
Operating headquarters facility in Providence, Rhode Island | Facility leases | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Period of base rent to calculate termination fee | 6 months | 6 months | 6 months | |||||||||||
Number of lease extension options | extension_option | 2 | 2 | 2 | |||||||||||
Period of each extension option | 10 years | 10 years | 10 years | |||||||||||
Useful life | 40 years | 40 years | 40 years | |||||||||||
Performance bonds | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Term of bonds | 1 year | 1 year | 1 year | |||||||||||
Maximum potential commitments | $ 447,014 | |||||||||||||
Minimum profit contracts | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Number of contracts | contract | 2 | 2 | 2 | |||||||||||
Indiana Contract | Minimum profit contracts | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Reductions to service revenue | 8,000 | |||||||||||||
Shortfall payments | (18,300) | |||||||||||||
New Jersey Contract | Minimum profit contracts | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Shortfall payments | $ (15,400) | |||||||||||||
Incentive payment received | $ 29,000 | 30,600 | ||||||||||||
Yeonama Holdings Co. Limited | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Investment, accounted for at cost | 23,100 | $ 20,300 | € 19.8 | |||||||||||
Investment, additional commitment | 12,200 | 10.2 | ||||||||||||
Cost method investments, potential future commitment | $ 35,900 | € 30 | ||||||||||||
Cls Gtech Company Limited | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Ownership in joint venture (as a percent) | 50.00% | 50.00% | 50.00% | |||||||||||
Non-interest bearing promissory note | $ 3,800 | |||||||||||||
Loxley GTECH Technology Co., LTD | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Ownership in joint venture (as a percent) | 49.00% | 49.00% | 49.00% | |||||||||||
Other owner's percentage ownership in joint venture (as a percent) | 51.00% | 51.00% | 51.00% | |||||||||||
Loxley GTECH Technology Co., LTD | Guarantee of unrelated issuer's performance bonds | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Maximum potential commitments | $ 11,500 | R$ 375.0 | ||||||||||||
Northstar Lottery Group LLC | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Controlling interest percentage | 80.00% | 80.00% | 80.00% | |||||||||||
Minimum | Steele, et al. v. GTECH Corporation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Damages claimed | $ 500,000 | |||||||||||||
Minimum | Nettles v. GTECH Corporation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Damages claimed | $ 4,000 | |||||||||||||
Minimum | McDonald v. GTECH Corporation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Damages claimed | $ 500 | |||||||||||||
Minimum | Wiggins v. IGT Global Solutions Corp. | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Damages claimed | $ 1,000 | |||||||||||||
Minimum | Campos et al. v. GTECH Corporation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Damages claimed | $ 1,000 | |||||||||||||
Entity with common director or management figure | Yeonama Holdings Co. Limited | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Ownership interest accounted for at fair value (as a percent) | 30.00% | 30.00% | 30.00% | |||||||||||
Main Manufacturing And Production Facility, Reno, Nevada | Facility In Reno Nevada | Facility leases | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Sale-leaseback agreement term | 15 years 6 months | |||||||||||||
Number of lease renewal periods | renewal_period | 4 | |||||||||||||
Sale-leaseback agreement term, renewal | 5 years | |||||||||||||
Annual rent increase (percent) | 3.00% | |||||||||||||
Gain (loss) on disposition of assets | $ 6,700 | |||||||||||||
Rent expense | $ 10,100 | |||||||||||||
Portion Of Facility, Las Vegas, Nevada Campus | Facility in Las Vegas, Nevada | Facility leases | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Sale-leaseback agreement term | 15 years | |||||||||||||
Zest Gaming Srl | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Contingent Consideration | $ 7,800 | € 6.5 | ||||||||||||
Contingent consideration, maximum | $ 20,600 | € 17.2 |
Commitments and Contingencie106
Commitments and Contingencies - Schedule of Minimum Amounts due for Non-Cancelable Leases (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating | |
2,018 | $ 76,779 |
2,019 | 61,258 |
2,020 | 55,782 |
2,021 | 49,881 |
2,022 | 48,485 |
Thereafter | 248,389 |
Total minimum payments | 540,574 |
Capital | |
2,018 | 7,999 |
2,019 | 7,643 |
2,020 | 6,844 |
2,021 | 6,039 |
2,022 | 4,348 |
Thereafter | 5,078 |
Total minimum payments | 37,951 |
Less amount representing interest | (10,252) |
Capitalized lease obligation | 27,699 |
Total | |
2,018 | 84,778 |
2,019 | 68,901 |
2,020 | 62,626 |
2,021 | 55,920 |
2,022 | 52,833 |
Thereafter | 253,467 |
Total minimum payments | $ 578,525 |
Commitments and Contingencie107
Commitments and Contingencies - Schedule of Jackpot Liabilities Recorded as Current and Non-current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Current liabilities | $ 84,250 | $ 95,574 |
Non-current liabilities | 191,376 | $ 203,468 |
Total jackpot liabilities | $ 275,626 |
Commitments and Contingencie108
Commitments and Contingencies - Schedule of Future Jackpot Payments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Previous Winners | |
Loss Contingencies [Line Items] | |
2,018 | $ 40,644 |
2,019 | 32,127 |
2,020 | 28,554 |
2,021 | 24,190 |
2,022 | 21,417 |
Thereafter | 115,615 |
Future jackpot payments due | 262,547 |
Future Winners | |
Loss Contingencies [Line Items] | |
2,018 | 43,460 |
2,019 | 8,674 |
2,020 | 526 |
2,021 | 526 |
2,022 | 526 |
Thereafter | 7,886 |
Future jackpot payments due | 61,598 |
Total | |
Loss Contingencies [Line Items] | |
2,018 | 84,104 |
2,019 | 40,801 |
2,020 | 29,080 |
2,021 | 24,716 |
2,022 | 21,943 |
Thereafter | 123,501 |
Future jackpot payments due | 324,145 |
Unamortized discounts | (48,519) |
Total jackpot liabilities | $ 275,626 |
Commitments and Contingencie109
Commitments and Contingencies - Schedule of Potential Commitments for Bonds Outstanding (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Guarantor Obligations [Line Items] | |
Maximum potential commitments | $ 746,659 |
Performance bonds | |
Guarantor Obligations [Line Items] | |
Maximum potential commitments | 447,014 |
Wide Area Progressive bonds | |
Guarantor Obligations [Line Items] | |
Maximum potential commitments | 266,218 |
Bid and litigation bonds | |
Guarantor Obligations [Line Items] | |
Maximum potential commitments | 8,600 |
All other bonds | |
Guarantor Obligations [Line Items] | |
Maximum potential commitments | $ 24,827 |
Redeemable Non-Controlling I110
Redeemable Non-Controlling Interests - Narrative (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | |
VIE, primary beneficiary | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Capital contributions | € 908.2 | € 908.2 | ||
Capital contributions, current year | $ 185.4 | 170 | $ 665.3 | € 600 |
VIE, primary beneficiary | Other non-current assets | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Capital contributions | $ 850.7 | € 770 | ||
Italian Lotto | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Amortization period of license fee (in years) | 9 years |
Redeemable Non-Controlling I111
Redeemable Non-Controlling Interests Redeemable Non-Controlling Interests - Schedule of Concession Payments (Details) - VIE, primary beneficiary € in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) |
Redeemable Noncontrolling Interest [Line Items] | ||||
Capital contributions, current year | $ 185.4 | € 170 | $ 665.3 | € 600 |
Capital contributions | 908.2 | € 908.2 | ||
Other non-current assets | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Capital contributions | $ 850.7 | € 770 |
Redeemable Non-Controlling I112
Redeemable Non-Controlling Interests - Summary of Consolidated Variable Interest Entity (Details) | Dec. 31, 2017 |
Italian Gaming Holding a.s. | |
Redeemable Noncontrolling Interest [Line Items] | |
Ownership percentage by others | 32.50% |
Arianna 2,001 | |
Redeemable Noncontrolling Interest [Line Items] | |
Ownership percentage by others | 4.00% |
Novomatic Italia | |
Redeemable Noncontrolling Interest [Line Items] | |
Ownership percentage by others | 2.00% |
VIE, primary beneficiary | Lottomatica S.p.A. | |
Redeemable Noncontrolling Interest [Line Items] | |
Ownership percentage | 61.50% |
Redeemable Non-Controlling I113
Redeemable Non-Controlling Interests - Reconciliation of Redeemable Non-controlling Interest Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Balance at beginning of year | $ 223,141 | $ 0 | |
Capital contribution | 107,457 | 215,684 | |
Income allocated to IGH | 65,665 | 7,457 | $ 0 |
Dividends paid | (7,307) | 0 | 0 |
Return of capital | (32,039) | 0 | 0 |
Balance at end of year | $ 356,917 | $ 223,141 | $ 0 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2015€ / shares | |
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 1,850,000,000 | |||
Common stock, par value (in dollars or Euros per share) | $ / shares | $ 0.10 | $ 0.1 | ||
Shares issued upon acquisition of IGT (in shares) | 0 | 0 | 45,322,614 | |
Shares repurchased (in shares) | 0 | 0 | 19,734,245 | |
Payment to shareholders for cash exit right exercised | $ | $ 0 | $ 0 | $ 407,759 | |
Common shares repurchased (in shares) | 0 | 0 | 0 | |
Maximum aggregate dividends and repurchases in each calendar year, per debt agreement terms | $ | $ 300,000 | |||
Net debt and shareholder payment to EBITDA, maximum (as a percent) | 90.00% | |||
Service revenue | $ | $ (4,136,556) | $ (4,375,586) | $ (3,977,693) | |
AOCI | Reclassification out of AOCI | ||||
Class of Stock [Line Items] | ||||
Service revenue | $ | $ 1,700 | $ (5,200) | (200) | |
IGT | ||||
Class of Stock [Line Items] | ||||
Shares issued upon acquisition of IGT (in shares) | 45,322,614 | |||
Payment to shareholders for cash exit right exercised | $ | $ 407,800 | |||
IGT | GTECH | ||||
Class of Stock [Line Items] | ||||
Cash exit right (in Euros per share) | € / shares | € 19.174 | |||
Cash exit right exercised, number of shares (in shares) | 19,796,852 | |||
Cash exit right exercised, shares purchased by other shareholders (in shares) | 62,607 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Shares of Common Stock Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares of common stock outstanding | |||
Beginning balance (in shares) | 202,285,166 | 200,244,239 | 172,792,526 |
Shares issued under restricted stock award plans (in shares) | 947,709 | 1,080,532 | 1,118,970 |
Shares issued upon exercise of stock options (in shares) | 213,697 | 960,395 | 744,374 |
Shares issued upon acquisition of IGT (in shares) | 0 | 0 | 45,322,614 |
GTECH rescission shares (in shares) | 0 | 0 | (19,734,245) |
Ending balance (in shares) | 203,446,572 | 202,285,166 | 200,244,239 |
Shareholders' Equity - Sched116
Shareholders' Equity - Schedule of Declared Cash Dividends (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Dividends | |||||||||||||||
Cash dividends declared per share (in USD per share) | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.20 | $ 0.20 | $ 0 | $ 0 | $ 0.8 | $ 0.8 | $ 0.4 |
Shareholders' Equity - Sched117
Shareholders' Equity - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | $ 3,425,665 | $ 3,366,142 | $ 2,947,720 |
Tax effect | 1,936 | 4,548 | (17,259) |
Other comprehensive income (loss) | 179,063 | (33,992) | 39,331 |
Balance, end of period | 2,354,931 | 3,425,665 | 3,366,142 |
Foreign Currency Translation | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 154,796 | 204,186 | 158,131 |
Change during period | 182,791 | (49,881) | 60,079 |
Reclassified to operations | 0 | 118 | 0 |
Tax effect | 559 | 373 | (14,024) |
Other comprehensive income (loss) | 183,350 | (49,390) | 46,055 |
Balance, end of period | 338,146 | 154,796 | 204,186 |
Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 2,905 | 387 | 971 |
Change during period | (6,610) | 8,351 | (594) |
Reclassified to operations | 1,744 | (5,218) | (244) |
Tax effect | 1,312 | (615) | 254 |
Other comprehensive income (loss) | (3,554) | 2,518 | (584) |
Balance, end of period | (649) | 2,905 | 387 |
Hedge of Net Investment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (4,578) | (4,563) | (4,499) |
Change during period | 0 | 0 | 0 |
Reclassified to operations | 0 | 0 | 0 |
Tax effect | 0 | (15) | (64) |
Other comprehensive income (loss) | 0 | (15) | (64) |
Balance, end of period | (4,578) | (4,578) | (4,563) |
Available for Sale Securities | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 12,209 | (1,286) | 5,019 |
Change during period | (678) | 8,772 | (3,046) |
Reclassified to operations | 0 | 0 | 0 |
Tax effect | 57 | 4,723 | (3,259) |
Other comprehensive income (loss) | (621) | 13,495 | (6,305) |
Balance, end of period | 11,588 | 12,209 | (1,286) |
Defined Benefit Plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (4,727) | (4,127) | (4,356) |
Change during period | (120) | (682) | 395 |
Reclassified to operations | 0 | 0 | 0 |
Tax effect | 8 | 82 | (166) |
Other comprehensive income (loss) | (112) | (600) | 229 |
Balance, end of period | (4,839) | (4,727) | (4,127) |
Share of OCI of Associate | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (748) | (748) | (748) |
Change during period | 0 | 0 | 0 |
Reclassified to operations | 0 | 0 | 0 |
Tax effect | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 |
Balance, end of period | (748) | (748) | (748) |
Less: OCI attributable to non-controlling interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 786 | 989 | 685 |
Change during period | 463 | (203) | 304 |
Reclassified to operations | 0 | 0 | 0 |
Tax effect | 0 | 0 | 0 |
Other comprehensive income (loss) | 463 | (203) | 304 |
Balance, end of period | 1,249 | 786 | 989 |
Total AOCI attributable to IGT PLC | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 160,643 | 194,838 | 155,203 |
Change during period | 175,846 | (33,643) | 57,138 |
Reclassified to operations | 1,744 | (5,100) | (244) |
Tax effect | 1,936 | 4,548 | (17,259) |
Other comprehensive income (loss) | 179,526 | (34,195) | 39,635 |
Balance, end of period | $ 340,169 | $ 160,643 | $ 194,838 |
Non-Controlling Interests (Deta
Non-Controlling Interests (Details) $ in Thousands, € in Millions | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 01, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | |
Non-Controlling Interests | |||||||
Non-controlling interests' share of equity | $ 349,936 | $ 349,936 | $ 356,966 | ||||
Payable to Italian regulator | $ 899,475 | $ 899,475 | 179,197 | ||||
Lotterie Nazionali S.r.l. (LN) | |||||||
Non-Controlling Interests | |||||||
Ownership percentage | 64.00% | 64.00% | 64.00% | ||||
Northstar New Jersey Lottery Group, LLC | |||||||
Non-Controlling Interests | |||||||
Ownership percentage | 82.31% | 82.31% | 82.31% | ||||
Italian Scratch & Win extension | |||||||
Non-Controlling Interests | |||||||
Amortization period of license fee (in years) | 9 years | 9 years | 9 years | ||||
Payable to Italian regulator | $ 899,500 | $ 899,500 | € 750 | € 800 | $ 179,200 | € 170 | |
Payments for upfront license fee | $ 59,300 | € 50 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($) | Dec. 31, 2017regionssegments | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Number of reportable operating segments | segments | 4 | |||
Number of regions | regions | 3 | |||
Double Down | Disposal group | North America Gaming and Interactive | ||||
Segment Reporting Information [Line Items] | ||||
Reduction in assets | $ | $ 783.8 | |||
ADM | Customer Concentration Risk | Revenue | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of exclusive and non-exclusive concession revenue | 31.90% | 31.70% | 33.60% |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Service revenue | $ 4,136,556 | $ 4,375,586 | $ 3,977,693 |
Product sales | 802,403 | 778,310 | 711,363 |
Total revenue | 4,938,959 | 5,153,896 | 4,689,056 |
Operating income (loss) | (51,092) | 660,436 | 539,956 |
Depreciation and amortization | 802,440 | 882,469 | 779,828 |
Expenditures for long-lived assets | (621,071) | (474,189) | (318,394) |
Long-lived assets (at year end) | 1,627,917 | 1,557,515 | 1,477,195 |
Total assets (at year end) | 15,159,208 | 15,060,162 | 15,114,692 |
Operating Segment Total | |||
Segment Reporting Information [Line Items] | |||
Service revenue | 4,134,631 | 4,376,023 | 3,987,051 |
Product sales | 802,403 | 779,449 | 717,546 |
Total revenue | 4,937,034 | 5,155,472 | 4,704,597 |
Operating income (loss) | 1,210,327 | 1,374,161 | 1,196,757 |
Depreciation and amortization | 439,101 | 431,936 | 424,653 |
Expenditures for long-lived assets | (617,107) | (470,729) | (306,776) |
Long-lived assets (at year end) | 1,627,917 | 1,557,515 | 1,477,195 |
Total assets (at year end) | 14,082,870 | 14,720,352 | 14,360,396 |
Operating Segment Total | North America Gaming and Interactive | |||
Segment Reporting Information [Line Items] | |||
Service revenue | 780,633 | 975,206 | 780,169 |
Product sales | 377,065 | 398,248 | 321,624 |
Total revenue | 1,157,698 | 1,373,454 | 1,101,793 |
Operating income (loss) | 278,963 | 349,275 | 295,531 |
Depreciation and amortization | 81,355 | 86,380 | 71,886 |
Expenditures for long-lived assets | (147,175) | (132,297) | (82,834) |
Long-lived assets (at year end) | 271,833 | 394,233 | 403,482 |
Total assets (at year end) | 3,683,258 | 5,577,491 | 6,077,680 |
Operating Segment Total | North America Lottery | |||
Segment Reporting Information [Line Items] | |||
Service revenue | 1,093,048 | 1,128,306 | 992,684 |
Product sales | 92,174 | 65,269 | 52,986 |
Total revenue | 1,185,222 | 1,193,575 | 1,045,670 |
Operating income (loss) | 289,025 | 299,182 | 181,813 |
Depreciation and amortization | 129,517 | 143,941 | 154,619 |
Expenditures for long-lived assets | (204,104) | (148,641) | (107,854) |
Long-lived assets (at year end) | 666,627 | 603,927 | 616,760 |
Total assets (at year end) | 2,460,676 | 2,396,557 | 2,476,112 |
Operating Segment Total | International | |||
Segment Reporting Information [Line Items] | |||
Service revenue | 557,049 | 512,668 | 512,014 |
Product sales | 332,015 | 314,637 | 341,064 |
Total revenue | 889,064 | 827,305 | 853,078 |
Operating income (loss) | 163,799 | 142,200 | 164,190 |
Depreciation and amortization | 66,745 | 50,879 | 45,855 |
Expenditures for long-lived assets | (77,815) | (97,957) | (93,666) |
Long-lived assets (at year end) | 292,962 | 284,276 | 236,043 |
Total assets (at year end) | 3,038,806 | 3,021,448 | 2,950,807 |
Operating Segment Total | Italy | |||
Segment Reporting Information [Line Items] | |||
Service revenue | 1,703,901 | 1,759,843 | 1,702,184 |
Product sales | 1,149 | 1,295 | 1,872 |
Total revenue | 1,705,050 | 1,761,138 | 1,704,056 |
Operating income (loss) | 478,540 | 583,504 | 555,223 |
Depreciation and amortization | 161,484 | 150,736 | 152,293 |
Expenditures for long-lived assets | (188,013) | (91,834) | (22,422) |
Long-lived assets (at year end) | 396,495 | 275,079 | 220,910 |
Total assets (at year end) | 4,900,130 | 3,724,856 | 2,855,797 |
Corporate Support | |||
Segment Reporting Information [Line Items] | |||
Service revenue | 1,203 | 0 | 0 |
Product sales | 0 | 0 | 0 |
Total revenue | 1,203 | 0 | 0 |
Operating income (loss) | (197,089) | (245,600) | (292,371) |
Depreciation and amortization | 11,554 | 12,481 | 13,123 |
Expenditures for long-lived assets | (3,964) | (3,460) | (11,618) |
Long-lived assets (at year end) | 0 | 0 | 0 |
Total assets (at year end) | 1,076,338 | 339,810 | 754,296 |
Purchase Accounting | |||
Segment Reporting Information [Line Items] | |||
Service revenue | 722 | (437) | (9,358) |
Product sales | 0 | (1,139) | (6,183) |
Total revenue | 722 | (1,576) | (15,541) |
Operating income (loss) | (1,064,330) | (468,125) | (364,430) |
Depreciation and amortization | 351,785 | 438,052 | 342,052 |
Expenditures for long-lived assets | 0 | 0 | 0 |
Long-lived assets (at year end) | 0 | 0 | 0 |
Total assets (at year end) | $ 0 | $ 0 | $ 0 |
Segment Information Segment Inf
Segment Information Segment Information - Changes in Operating Income (Loss) By Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ (51,092) | $ 660,436 | $ 539,956 |
Operating Segment Total | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 1,210,327 | 1,374,161 | 1,196,757 |
Operating Segment Total | North America Gaming and Interactive | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 278,963 | 349,275 | 295,531 |
Operating Segment Total | North America Lottery | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 289,025 | 299,182 | 181,813 |
Operating Segment Total | International | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 163,799 | 142,200 | 164,190 |
Operating Segment Total | Italy | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 478,540 | 583,504 | 555,223 |
Corporate Support | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (197,089) | (245,600) | (292,371) |
Purchase Accounting | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ (1,064,330) | (468,125) | (364,430) |
As previously presented | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 660,436 | 539,956 | |
As previously presented | Operating Segment Total | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 1,374,161 | 1,196,757 | |
As previously presented | Operating Segment Total | North America Gaming and Interactive | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 344,125 | 294,256 | |
As previously presented | Operating Segment Total | North America Lottery | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 300,394 | 182,615 | |
As previously presented | Operating Segment Total | International | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 144,125 | 164,949 | |
As previously presented | Operating Segment Total | Italy | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 585,517 | 554,937 | |
As previously presented | Corporate Support | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (245,600) | (292,371) | |
As previously presented | Purchase Accounting | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (468,125) | (364,430) | |
Change | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 0 | 0 | |
Change | Operating Segment Total | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 0 | 0 | |
Change | Operating Segment Total | North America Gaming and Interactive | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 5,150 | 1,275 | |
Change | Operating Segment Total | North America Lottery | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (1,212) | (802) | |
Change | Operating Segment Total | International | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (1,925) | (759) | |
Change | Operating Segment Total | Italy | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (2,013) | 286 | |
Change | Corporate Support | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 0 | 0 | |
Change | Purchase Accounting | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ 0 | $ 0 |
Segment Information - Schedu122
Segment Information - Schedule of Revenue from External Customers Based on Geographical Location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 4,938,959 | $ 5,153,896 | $ 4,689,056 |
United States | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 2,195,791 | 2,472,013 | 2,030,251 |
Italy | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 1,728,472 | 1,778,750 | 1,712,583 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 100,315 | 89,938 | 105,377 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 74,567 | 82,271 | 93,839 |
All other | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 839,814 | $ 730,924 | $ 747,006 |
Segment Information - Schedu123
Segment Information - Schedule of Long-Lived Assets Based on Geographical Location (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | |||
Long-lived assets (at year end) | $ 1,627,917 | $ 1,557,515 | $ 1,477,195 |
United States | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets (at year end) | 938,925 | 989,374 | |
Italy | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets (at year end) | 366,990 | 254,052 | |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets (at year end) | 43,379 | 47,388 | |
All other | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets (at year end) | $ 278,623 | $ 266,701 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017employees | Dec. 31, 2015USD ($)employees | Mar. 31, 2015employees | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)$ / shares | |
Stock-Based Compensation | ||||||
Options granted (in shares) | shares | 0 | 0 | ||||
Total intrinsic value of options exercised (in dollars) | $ 9,300,000 | $ 7,800,000 | $ 3,300,000 | |||
Proceeds from stock options exercised | 0 | 12,700,000 | $ 10,700,000 | |||
Weighted average grant date fair value of stock options granted (in dollars per share) | $ / shares | $ 2.31 | |||||
Number of employees affected by modification of awards | employees | 974 | 223 | 58 | |||
Incremental compensation cost due to modifications | $ 14,600,000 | |||||
Stock options | Chief Executive Officer | ||||||
Stock-Based Compensation | ||||||
Contractual term (in years) | 7 years | |||||
Performance share units (PSUs) | ||||||
Stock-Based Compensation | ||||||
Total vest-date fair value of stock awards vested (in dollars) | $ 28,800,000 | 8,400,000 | $ 13,400,000 | |||
Performance share units (PSUs) | Tranche one | ||||||
Stock-Based Compensation | ||||||
Vesting percentage (as a percent) | 50.00% | 50.00% | ||||
Vesting period (in years) | 3 years | 1 year | ||||
Performance share units (PSUs) | Tranche two | ||||||
Stock-Based Compensation | ||||||
Vesting percentage (as a percent) | 50.00% | 50.00% | ||||
Vesting period (in years) | 4 years | 2 years | ||||
Restricted Stock Units (RSUs) | ||||||
Stock-Based Compensation | ||||||
Contractual term (in years) | 10 years | |||||
Vesting period (in years) | 1 year | |||||
Total vest-date fair value of stock awards vested (in dollars) | $ 2,800,000 | $ 15,900,000 | $ 8,400,000 | |||
2015 Equity Incentive Plan | ||||||
Stock-Based Compensation | ||||||
Maximum number of shares that may be granted under the Plan (in shares) | shares | 11,500,000 |
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, 2017 | Dec. 31, 2016 | |
Stock Options | ||
Beginning balance (in shares) | 3,747,268 | |
Granted (in shares) | 0 | 0 |
Forfeited (in shares) | (442,138) | |
Exercised (in shares) | (1,112,423) | |
Expired (in shares) | 0 | |
Ending balance (in shares) | 2,192,707 | 3,747,268 |
Vested and expected to vest (in shares) | 2,192,707 | |
Exercisable (in shares) | 1,942,707 | |
Weighted Average Exercise Price Per Share | ||
Beginning balance (in dollars per share) | $ 19.06 | |
Granted (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 20.30 | |
Exercised (in dollars per share) | 17.21 | |
Expired (in dollars per share) | 0 | |
Ending balance (in dollars per share) | 19.76 | $ 19.06 |
Vested and expected to vest (in dollars per share) | 19.76 | |
Exercisable (in dollars per share) | $ 20.30 | |
Weighted Average Remaining Contractual Term | ||
Outstanding, Remaining Contractual Term (in years) | 1 year 11 months 19 days | |
Vested and expected to vest, Remaining Contractual Term (in years) | 1 year 11 months 19 days | |
Exercisable, Remaining Contractual Term (in years) | 5 months 26 days | |
Aggregate Intrinsic Value | ||
Vested and expected to vest, Aggregate Intrinsic Value | $ 14,811 | |
Exercisable, Aggregate Intrinsic Value | $ 12,066 |
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, 2015$ / shares | |
Stock-Based Compensation | |
Exercise price (in dollars per share) | $ 15.53 |
Expected option term (in years) | 2 years 4 months 17 days |
Expected volatility of the Company's stock (as a percent) | 35.00% |
Risk-free interest rate (as a percent) | 1.06% |
Dividend yield (as a percent) | 5.15% |
Stock-Based Compensation - S127
Stock-Based Compensation - Summary of Stock Award Activity and Related Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Performance share units (PSUs) | |||
Stock Award Activity | |||
Beginning balance (in shares) | 4,321,197 | ||
Granted (in shares) | 1,723,730 | 1,788,050 | 2,204,963 |
Vested (in shares) | (1,329,031) | ||
Forfeited (in shares) | (632,397) | ||
Ending balance (in shares) | 4,083,499 | 4,321,197 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 15.04 | ||
Granted (in dollars per share) | 17.74 | $ 21.08 | $ 7.58 |
Vested (in dollars per share) | 10.65 | ||
Forfeited (in dollars per share) | 16.55 | ||
Ending balance (in dollars per share) | $ 16.35 | $ 15.04 | |
Stock awards, related information | |||
Unrecognized cost for nonvested awards (in dollars) | $ 375 | ||
Weighted average future recognition period (in years) | 3 months 14 days | ||
Restricted Stock Units (RSUs) | |||
Stock Award Activity | |||
Beginning balance (in shares) | 117,551 | ||
Granted (in shares) | 117,745 | 117,551 | 1,538,583 |
Vested (in shares) | (129,073) | ||
Forfeited (in shares) | 0 | ||
Ending balance (in shares) | 106,223 | 117,551 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 19.14 | ||
Granted (in dollars per share) | 21.12 | $ 19.14 | $ 19.52 |
Vested (in dollars per share) | 19.41 | ||
Forfeited (in dollars per share) | 0 | ||
Ending balance (in dollars per share) | $ 21 | $ 19.14 | |
Stock awards, related information | |||
Unrecognized cost for nonvested awards (in dollars) | $ 878 | ||
Weighted average future recognition period (in years) | 4 months 20 days |
Stock-Based Compensation - S128
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Performance share units (PSUs) | |||
Stock-Based Compensation | |||
Granted (in shares) | 1,723,730 | 1,788,050 | 2,204,963 |
Granted (in dollars per share) | $ 17.74 | $ 21.08 | $ 7.58 |
Restricted Stock Units (RSUs) | |||
Stock-Based Compensation | |||
Granted (in shares) | 117,745 | 117,551 | 1,538,583 |
Granted (in dollars per share) | $ 21.12 | $ 19.14 | $ 19.52 |
Stock-Based Compensation - S129
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | $ 4,704 | $ 26,346 | $ 36,067 |
Income tax benefit | 975 | 7,846 | 15,349 |
Total stock-based compensation, net of tax | 3,729 | 18,500 | 20,718 |
Cost of services | |||
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | 26 | 1,302 | 602 |
Cost of product sales | |||
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | (8) | 330 | 675 |
Selling, general and administrative | |||
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | 4,628 | 22,304 | 15,700 |
Research and development | |||
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | 58 | 2,410 | 4,223 |
Operating expenses, excluding transaction expense, net | |||
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | 4,704 | 26,346 | 21,200 |
Transaction (income) expense, net | |||
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | $ 0 | $ 0 | $ 14,867 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 12, 2017 | |
Other expense | ||||
Tender premium | $ (25,733) | $ 0 | $ (73,806) | |
Total debt related | (31,593) | (5,220) | (117,877) | |
Gain on sale of available-for-sale investment | 0 | 20,365 | 0 | |
Other | (1,800) | 3,220 | (4,418) | |
Other income (expense), net | $ (33,393) | 18,365 | (122,295) | |
7.500% Senior Secured Notes due 2019 | ||||
Other expense | ||||
Stated interest rate (as a percent) | 7.50% | |||
7.500% Senior Secured Notes due 2019 | Senior Notes | ||||
Other expense | ||||
Tender premium | $ (37,793) | 0 | 0 | |
Unamortized debt premium | 12,394 | 0 | 0 | |
Gain (loss) on interest rate swaps | 705 | 0 | 0 | |
Fees | (1,039) | 0 | 0 | |
Total debt related | $ (25,733) | $ 0 | 0 | |
Stated interest rate (as a percent) | 7.50% | 7.50% | 7.50% | |
Revolving Credit Facilities due 2021 | Revolving Credit Facilities due 2021 | ||||
Other expense | ||||
Unamortized debt issuance costs | $ (7,307) | $ 0 | 0 | |
Total debt related | (7,307) | 0 | 0 | |
Term Loan Facility due 2023 | Term loan | ||||
Other expense | ||||
Fees | (2,380) | 0 | 0 | |
Total debt related | (2,380) | 0 | 0 | |
6.250% Senior Secured Notes due 2022 | Senior Notes | ||||
Other expense | ||||
Gain (loss) on interest rate swaps | 3,827 | (5,220) | 0 | |
Total debt related | $ 3,827 | $ (5,220) | 0 | |
Stated interest rate (as a percent) | 6.25% | 6.25% | ||
Capital Securities | Capital Securities | ||||
Other expense | ||||
Tender premium | $ 0 | $ 0 | (73,376) | |
Unamortized debt issuance costs | 0 | 0 | (4,295) | |
Fees | 0 | 0 | (2,040) | |
Total debt related | 0 | 0 | (79,711) | |
Bridge Facility | Bridge Facility | ||||
Other expense | ||||
Unamortized debt issuance costs | 0 | 0 | (34,526) | |
Fees | 0 | 0 | (3,640) | |
Total debt related | $ 0 | 0 | $ (38,166) | |
Italy | ||||
Other expense | ||||
Gain on sale of available-for-sale investment | 20,400 | |||
Proceeds from sale of available for sale investment | $ 23,900 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||
Net (loss) income attributable to IGT PLC | $ (1,068,576) | $ 211,337 | $ (75,574) |
Denominator: | |||
Weighted average shares, basic (in shares) | 203,130 | 201,511 | 192,398 |
Incremental shares under stock based compensation plans (in shares) | 0 | 703 | 0 |
Weighted average shares, diluted (in shares) | 203,130 | 202,214 | 192,398 |
Basic earnings (loss) per share attributable to IGT (in dollars per share) | $ (5.26) | $ 1.05 | $ (0.39) |
Diluted earnings (loss) per share attributable to IGT (in dollars per share) | $ (5.26) | $ 1.05 | $ (0.39) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
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) | 0.4 | 2.6 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) € in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) |
OPAP S.A. | Entity with common director or management figure | |||
Related Party Transaction [Line Items] | |||
Ownership interest held by related party investee (as a percent) | 33.00% | 33.00% | |
Ringmaster S.r.l. | |||
Related Party Transaction [Line Items] | |||
Investment, equity method | $ 0.8 | $ 0.6 | |
Ringmaster S.r.l. | Joint venture | |||
Related Party Transaction [Line Items] | |||
Equity method ownership interest (as a percent) | 50.00% | 50.00% | |
Yeonama Holdings Co. Limited | |||
Related Party Transaction [Line Items] | |||
Investment, accounted for at cost | $ 23.1 | € 19.8 | 20.3 |
Yeonama Holdings Co. Limited | Entity with common director or management figure | |||
Related Party Transaction [Line Items] | |||
Ownership interest accounted for at fair value (as a percent) | 30.00% | 30.00% | |
Connect Ventures One LP | Entity with common director or management figure | |||
Related Party Transaction [Line Items] | |||
Amount of investment | $ 4.7 | 4.2 | |
Connect Ventures Two LP | Entity with common director or management figure | |||
Related Party Transaction [Line Items] | |||
Amount of investment | $ 3.8 | $ 1.7 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Amounts Receivable from and Payable to Related Parties (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Total related party receivables | $ 14,503 | $ 12,638 |
Total related party payables | 38,306 | 103,313 |
De Agostini Group | ||
Related Party Transaction [Line Items] | ||
Trade receivables | 65 | 71 |
Total related party receivables | 65 | 71 |
Tax related payables | 19,673 | 72,916 |
Trade payables | 10,974 | 27,578 |
Total related party payables | 30,647 | 100,494 |
Ringmaster S.r.l. | Joint venture | ||
Related Party Transaction [Line Items] | ||
Trade receivables | 176 | 0 |
Total related party receivables | 176 | 0 |
Trade payables | 6,404 | 2,454 |
Total related party payables | 6,404 | 2,454 |
OPAP S.A. | Joint venture | ||
Related Party Transaction [Line Items] | ||
Trade payables | 340 | 0 |
Total related party payables | 340 | 0 |
Autogrill S.p.A. | Entity with common director or management figure | ||
Related Party Transaction [Line Items] | ||
Trade receivables | 7,374 | 10,970 |
Total related party receivables | 7,374 | 10,970 |
Trade payables | 915 | 365 |
Total related party payables | 915 | 365 |
OPAP S.A. | Entity with common director or management figure | ||
Related Party Transaction [Line Items] | ||
Trade receivables | 6,888 | 1,597 |
Total related party receivables | $ 6,888 | $ 1,597 |
Related Party Transactions -135
Related Party Transactions - Schedule of Transactions with Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Service revenue and product sales | $ 37,723 | $ 4,671 | $ 10,356 |
Operating costs | 17,777 | 14,009 | 21,223 |
Entity with common director or management figure | OPAP S.A. | |||
Related Party Transaction [Line Items] | |||
Service revenue and product sales | 37,512 | 4,437 | 4,036 |
De Agostini Group | |||
Related Party Transaction [Line Items] | |||
Service revenue and product sales | 20 | 19 | 21 |
OPAP S.A. | |||
Related Party Transaction [Line Items] | |||
Operating costs | 11 | 87 | 0 |
Ringmaster S.r.l. | Joint venture | |||
Related Party Transaction [Line Items] | |||
Service revenue and product sales | 136 | 156 | 239 |
Operating costs | 10,940 | 9,535 | 12,651 |
Assicurazioni Generali S.p.A. | Entity with common director or management figure | |||
Related Party Transaction [Line Items] | |||
Operating costs | 3,765 | 3,102 | 3,003 |
Autogrill S.p.A. | Director | |||
Related Party Transaction [Line Items] | |||
Service revenue and product sales | 55 | 59 | 6,060 |
Autogrill S.p.A. | De Agostini Group | |||
Related Party Transaction [Line Items] | |||
Operating costs | 2,391 | 678 | 0 |
Willis Towers Watson | Director | |||
Related Party Transaction [Line Items] | |||
Operating costs | 550 | 550 | 5,000 |
De Agostini Group | De Agostini Group | |||
Related Party Transaction [Line Items] | |||
Operating costs | $ 120 | $ 57 | $ 569 |