LONDON, March 9, 2017 /PRNewswire/ --
- Fourth quarter net income of $233
million; adjusted EBITDA of $422
million reflects broad-based lottery growth and higher
gaming product sales
- 2016 net income of $211
million; adjusted 2016 EBITDA of $1,755 million on strong North America and Italy performance
- Net debt of $7,569 million at
year end
- Cash dividend declared of $0.20 per ordinary share
International Game Technology PLC ("IGT") (NYSE:IGT) today
reported financial results for the fourth quarter and year ended
December 31, 2016. Today, at
8:00 a.m. EST / 1:00 p.m. GMT / 2:00 p.m.
CET, management will host a conference call and webcast to
present the fourth quarter and full year 2016 results; access
details are provided below.
"We reached many important milestones in 2016," said
Marco Sala, CEO of IGT. "We
reinforced our number one position in Lottery globally, achieving
robust same-store revenue growth and securing valuable, multi-year
contracts. We also made good progress with our Gaming turnaround,
developing compelling new titles and hardware, in addition to
expanding our International presence. We operate in growing
global market segments and IGT has a long history of investing in
innovation to create shareholder value."
"We achieved our financial goals for 2016 and ended the year in
strong financial condition," said Alberto Fornaro, CFO of IGT. "Disciplined
capital management enabled us to reduce our debt and improve our
leverage profile despite the large upfront investment in the Italy
Lotto. We expect 2017 to evolve as a year of two halves, with
difficult comparisons in the first part of the year easing as we
reach the second half."
Summary of Consolidated Fourth Quarter and Full Year
Financial Results
|
Reported
|
|
|
|
|
|
|
|
|
Constant
|
|
|
|
Quarter Ended
December 31,
|
2016
|
2015
|
Change
|
Currency
|
|
|
|
|
|
|
(%)
|
Change
(%)
|
|
|
|
(In US $ millions,
unless otherwise noted)
|
|
|
|
|
|
|
|
Revenue
|
1,321
|
1,365
|
-3%
|
-2%
|
|
|
|
Operating
Income
|
138
|
132
|
5%
|
5%
|
|
|
|
Net income per
diluted share
|
1.15
|
0.37
|
NM
|
NM
|
|
|
|
Net debt
|
7,569
|
7,707
|
-2%
|
-
|
|
|
|
Adjusted
EBITDA
|
422
|
449
|
-6%
|
-6%
|
|
|
|
Adjusted Operating
Income
|
281
|
293
|
-4%
|
-4%
|
|
|
|
Adjusted net income
per diluted share
|
0.88
|
0.63
|
40%
|
NA
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
Pro
forma
|
|
|
|
|
|
|
|
Constant
|
Year Ended
December 31,
|
2016
|
2015
|
Change
|
2016
|
2015
|
Change
|
Currency
|
|
|
|
(%)
|
|
|
(%)
|
Change
(%)
|
(In US $ millions,
unless otherwise noted)
|
|
|
|
|
|
|
|
Revenue
|
5,154
|
4,689
|
10%
|
5,154
|
5,088
|
1%
|
2%
|
Operating
Income
|
660
|
540
|
22%
|
660
|
533
|
24%
|
24%
|
Net income (loss) per
diluted share
|
1.05
|
(0.39)
|
NM
|
1.05
|
NA
|
NA
|
NA
|
Net debt
|
7,569
|
7,707
|
-2%
|
7,569
|
7,707
|
-2%
|
-
|
Adjusted
EBITDA
|
1,755
|
1,611
|
9%
|
1,755
|
1,704
|
3%
|
3%
|
Adjusted Operating
Income
|
1,167
|
1,043
|
12%
|
1,167
|
1,069
|
9%
|
9%
|
Adjusted net income
per diluted share
|
2.33
|
1.88
|
24%
|
2.33
|
NA
|
NA
|
NA
|
|
Note: Pro forma is
defined as the combined results of GTECH and legacy IGT for period
prior to the second quarter of 2015. Adjusted operating income,
adjusted EBITDA, and adjusted net income per diluted share are
non-GAAP financial measures. Reconciliations of non-GAAP
financial measures to the most directly comparable GAAP financial
measures are provided at the end of this news
release.
|
Comparability of Results
All figures presented in this news release are prepared under
U.S. GAAP, unless noted otherwise.
As a result of the combination of GTECH S.p.A. ("GTECH") and
International Game Technology ("legacy IGT"), which was completed
on April 7, 2015, a number of items
affect the comparability of reported results. Reported
financial information for the full year 2016 includes the results
of operations of IGT PLC for the entire period, while reported
financial information for the full year 2015 period includes IGT
PLC for the second, third, and fourth quarters and only GTECH
operations in the first quarter. Pro forma figures represent the
combined results of both companies.
Adjusted figures exclude the impact of items such as purchase
accounting, impairment charges, restructuring expense, foreign
exchange, and certain one-time, primarily transaction-related
items. Reconciliations to the most directly comparable U.S. GAAP
measures are included in the tables in this news release.
Reported 2016 results were impacted by the strengthening of the
U.S. dollar compared to the euro; the daily average Euro to U.S.
dollar foreign exchange rate was 1.08 in the fourth quarter of 2016
compared to 1.10 in the fourth quarter of 2015, and was 1.11 for
the full year 2016 period compared to 1.11 in 2015. Constant
currency changes for 2016 are calculated using the same foreign
exchange rates as the corresponding 2015 period.
Management believes that referring to certain pro forma,
constant currency, or adjusted measures is a more useful way to
evaluate the Company's underlying performance.
Overview of Consolidated Fourth Quarter Results
Consolidated revenue declined 3% to $1,321 million from $1,365
million in the fourth quarter of 2015, which included
approximately $20 million of revenue
benefits related to the catch-up reclassification of Stability Law
taxes on gaming machines in Italy.
Lower revenue reflects global lottery growth that was more than
offset by lower gaming service revenue, mostly at DoubleDown.
Global lottery same-store revenue, excluding Italy, increased 2% during the fourth quarter
while Italy lottery wagers
increased 4%. Product sales rose 1% in the quarter on higher
North America systems sales and
the contribution from a recent intellectual property settlement.
The Company shipped 10,320 gaming machines worldwide during the
fourth quarter.
Adjusted EBITDA of $422 million
was 6% below the fourth quarter of 2015. Operating income was
$138 million compared to $132 million in the fourth quarter of 2015, and
adjusted operating income was $281
million compared to $293
million in the prior year. The declines in adjusted EBITDA
and adjusted operating income primarily reflect an incremental
$14 million of Italy value-added tax ("VAT") credit in the
prior-year period, in addition to higher selling, general and
administrative expenses.
Interest expense was $116 million
compared to $119 million in the
prior-year period.
Net income attributable to IGT was $233
million in the fourth quarter of 2016, reflecting the impact
of $196 million in primarily non-cash
foreign exchange gains and the favorable settlement of discrete tax
items. On an adjusted basis, net income attributable to IGT was
$179 million. The Company reported
net income per diluted share of $1.15
and earned $0.88 per diluted share on
an adjusted basis.
Cash from operations was $985
million in the full-year period and capital expenditures
were $557 million. The Company made
two of three upfront installment payments for the new Lotto
concession in Italy during the
year.
Cash and cash equivalents were $294
million as of December 31,
2016, compared to $627 million
as of December 31, 2015. Net debt was
$7,569 million as of December 31, 2016.
Operating Segment Review
North America Gaming &
Interactive
Revenue for the North America
Gaming & Interactive segment was $368
million compared to $378
million in the fourth quarter of 2015.
Gaming service revenue was $230
million compared to $263
million in the prior-year period, primarily driven by fewer
daily active users ("DAU") at DoubleDown and a year-on-year
decrease in the installed base.
Product sales rose 20% to $138
million in the quarter primarily driven by large systems
sales; the contribution from a recent intellectual property
settlement; and, as previously communicated, revenue associated
with certain gaming machines shipped in the third quarter of 2016.
The segment shipped 5,419 units in the period compared to 6,597
units in the fourth quarter of 2015, which included an additional
1,100 Canada video lottery
terminals ("VLT").
Operating income for North America Gaming & Interactive was
$101 million compared to $106 million in the fourth quarter of 2015. The
decline is primarily due to lower DoubleDown and gaming service
revenue, partially offset by higher product sales.
North America Lottery
North America Lottery revenue
was $284 million, up 6% from the
fourth quarter of 2015.
Service revenue of $267 million
increased 5%. Lottery same-store revenue rose 1.5%, supported by
the third consecutive year of strong instant tickets performance.
Multi-state Jackpot game performance was modestly below the prior
year's level after several quarters of above-average
results.
Product sales were $17 million,
compared to $14 million in the fourth
quarter of 2015, primarily due to increased instant ticket printing
activity.
Operating income for North America Lottery increased 54% to
$65 million compared to the fourth
quarter of 2015. Higher revenues, in addition to lower depreciation
and amortization expense associated with recent lottery contract
extensions, contributed to the substantial profit growth.
International
International revenue was
$220 million compared to $265 million in the fourth quarter of 2015. On a
constant currency basis, International revenue declined 15%.
International lottery same-store revenue increased 2.6% on
broad-based geographical strength that was tempered by weakness in
the United Kingdom.
International gaming service revenue rose 6% on a constant
currency basis, primarily due to growth in the commercial gaming
installed base, and despite approximately 600 units that were
converted to product sales. The installed base grew in Eastern Europe, South Africa and Mexico.
Product sales were below the prior-year period, mostly on
lottery product sales, which reflect the natural variability of
that business. Gaming terminal sales declined slightly on lower
unit volume. Systems sales increased double-digits year-over-year.
The segment shipped a total of 4,901 gaming machines compared to
4,965 last year.
International operating income was $44
million compared to $55
million in the fourth quarter of 2015, reflecting lower
revenue.
Italy
Italy revenue was $449
million compared to $455
million in the fourth quarter of 2015. At constant currency,
revenue was in line with the prior year. The fourth quarter
comparisons are impacted by an approximately $20 million catch-up Stability Law
reclassification booked in the prior-year period, in addition to
one month of amortization of the new Lotto upfront concession
fee.
Total Lotto wagers in the quarter were €2,141 million, 15%
greater than the €1,855 million achieved in the prior-year period.
Strong Lotto performance was a result of significant late number
activity and high single-digit growth in 10eLotto. Excluding late
numbers, Lotto wagers increased 2% over the same period last year.
Instant-ticket wagers were €2,289 million versus €2,391 million in
the fourth quarter of 2015.
Machine gaming service revenue was down given the prior-year
Stability Law reclassification. Sports betting wagers increased 6%
on growth in live wagers.
Operating income for the Italy
segment was $130 million compared to
$132 million in the fourth quarter of
2015. At constant currency, operating income was stable as strong
Lotto growth compensated for the VAT credit in the prior
year.
Overview of Consolidated Full Year 2016 Results
Reported consolidated revenue was $5,154
million compared to $4,689
million in 2015. On a pro forma, constant currency basis,
consolidated revenue increased 2%, primarily reflecting growth in
lottery service revenue that was partially offset by lower
DoubleDown performance and gaming product sales.
During the year, the Company shipped 33,147 gaming machines
worldwide and global lottery same-store revenue, excluding
Italy, increased 8%. Italy lottery wagers rose 6% in 2016.
On a reported basis, adjusted EBITDA of $1,755 million was 9% greater than the 2015
level. On a pro forma, constant currency basis, adjusted EBITDA
increased 3%.
Reported operating income was $660
million compared to $540
million in 2015. On a pro forma, constant currency basis,
adjusted operating income was 9% greater than 2015, primarily
reflecting higher lottery service revenue that was partially offset
by lower lottery product sales.
Interest expense was $469 million
compared to $458 million in the
prior-year period.
Net income attributable to IGT was $211
million in 2016. On an adjusted basis, net income was
$472 million. The Company reported
earnings per diluted share of $1.05
and earned $2.33 per diluted share on
an adjusted basis in 2016.
Other Developments
In a separate news release issued today, the Company announced
that Heather J. McGregor was
appointed as an independent director to its board of directors.
Additionally, the Company's board of directors has declared a
quarterly cash dividend of $0.20 per
ordinary share. The dividend is payable on April 6, 2017 to all shareholders of record as of
the close of business on March 23,
2017.
Outlook
The Company currently expects to achieve adjusted EBITDA of
$1,680-$1,760 million for the full
year 2017 period, as operational growth compensates for the
Powerball and late numbers benefits recorded in 2016, in addition
to new Lotto concession impacts in 2017.
Maintenance capital expenditures are expected to be $525-$575 million, including approximately
$100 million related to the timing of
the new Florida Lottery contract. Growth capital expenditures will
be approximately $100 million.
The Italy Lotto renewal will require an outlay of approximately
$320 million ($195 million net, after minority partner
contribution), relating to the final upfront concession payment and
associated network and infrastructure upgrades. Net debt is
expected to be $7,600-$7,800 million
at the end of 2017.
The Company's outlook assumes an average euro/dollar exchange
rate of 1.10.
Conference Call and Webcast
Today, at 8:00 a.m. EST /
1:00 p.m. GMT / 2:00 p.m. CET, management will host a conference
call to present the fourth quarter and full year 2016 results.
Listeners may access a live webcast of the conference call along
with accompanying slides under "News, Events and Presentations" on
IGT's Investor Relations website at www.IGT.com. A replay of the
webcast will be available on the website following the live event.
To listen by telephone, the dial-in number is +44 (0) 20 3427 1904
for participants in the United
Kingdom and +1-646-254-3362 for listeners outside the
United Kingdom. The conference
ID/confirmation code is 6623346. A telephone replay of the call
will be available for one week at +44 (0) 20 3427 0598 or
+1-347-366-9565 using the conference ID/confirmation code
6623346.
About IGT
IGT (NYSE:IGT) is the global leader in
gaming. We enable players to experience their favorite games across
all channels and regulated segments, from Gaming Machines and
Lotteries to Interactive and Social Gaming. Leveraging a wealth of
premium content, substantial investment in innovation, in-depth
customer intelligence, operational expertise and leading-edge
technology, our gaming solutions anticipate the demands of
consumers wherever they decide to play. We have a well-established
local presence and relationships with governments and regulators in
more than 100 countries around the world, and create value by
adhering to the highest standards of service, integrity, and
responsibility. IGT has over 12,000 employees. For more
information, please visit www.IGT.com.
Cautionary Statement Regarding Forward-Looking
Statements
This news release may contain forward-looking
statements (including within the meaning of the Private Securities
Litigation Reform Act of 1995) concerning International Game
Technology PLC and other matters. These statements may discuss
goals, intentions and expectations as to future plans, trends,
events, dividends, results of operations or financial condition, or
otherwise, based on current beliefs of the management of
International Game Technology PLC as well as assumptions made by,
and information currently available to, such management.
Forward-looking statements may be accompanied by words such as
"aim," "anticipate," "believe," "plan," "could," "would," "should,"
"shall," "continue," "estimate," "expect," "forecast," "future,"
"guidance," "intend," "may," "will," "possible," "potential,"
"predict," "project" or the negative or other variations of them.
These forward-looking statements are subject to various risks and
uncertainties, many of which are outside International Game
Technology PLC's control. Should one or more of these risks or
uncertainties materialize, or should any of the underlying
assumptions prove incorrect, actual results may differ materially
from those predicted in the forward-looking statements and from
past results, performance or achievements. Therefore, you should
not place undue reliance on the forward-looking statements. Factors
that could cause actual results to differ materially from those in
the forward-looking statements include (but are not limited to) the
possibility that the businesses of International Game Technology
(Nevada) and GTECH S.p.A. will not
be integrated successfully, or that the combined companies will not
realize estimated cost savings, synergies, growth or other
anticipated benefits or that such benefits may take longer to
realize than expected; unanticipated costs of integration of
International Game Technology (Nevada) and GTECH S.p.A.; the possibility that
International Game Technology PLC will be unable to pay future
dividends to shareholders or that the amount of such dividends may
be less than anticipated; the possibility that International Game
Technology PLC may not obtain its anticipated financial results in
one or more future periods; reductions in customer spending; a
slowdown in customer payments and changes in customer demand for
products and services as a result of changing economic conditions
or otherwise; unanticipated changes relating to competitive factors
in the industries in which International Game Technology PLC
operates; International Game Technology PLC's ability to hire and
retain key personnel; the impact of the consummation of the
business combination on relationships with third parties, including
customers, employees and competitors; International Game Technology
PLC's ability to attract new customers and retain existing
customers in the manner anticipated; reliance on and integration of
information technology systems; changes in legislation or
governmental regulations affecting International Game Technology
PLC, including as a consequence of the announced withdrawal of the
U.K. from the EU; international, national or local economic, social
or political conditions that could adversely affect International
Game Technology PLC or its customers; conditions in the credit
markets; changes in the top management team; risks associated with
assumptions International Game Technology PLC makes in connection
with its critical accounting estimates; the resolution of pending
and potential future legal, regulatory or tax proceedings and
investigations; and International Game Technology PLC's
international operations, which are subject to the risks of
currency fluctuations and foreign exchange controls. The foregoing
list of factors is not exhaustive. You should carefully consider
the foregoing factors and the other risks and uncertainties that
affect International Game Technology PLC's business, including
those described in International Game Technology PLC's annual
report on Form 20-F for the financial year ended December 31, 2015 and other documents filed from
time to time with the Securities and Exchange Commission (the
"SEC"), which are available on the SEC website at www.sec.gov and
on the investor relations section of International Game Technology
PLC's website at www.IGT.com. Except as required under applicable
law, International Game Technology PLC does not assume any
obligation to update the forward-looking statements. Nothing in
this news release is intended, or is to be construed, as a profit
forecast or to be interpreted to mean that earnings per
International Game Technology PLC share for the current or any
future financial years will necessarily match or exceed the
historical published earnings per International Game Technology PLC
share, as applicable. All forward-looking statements contained in
this news release are qualified in their entirety by this
cautionary statement. All subsequent written or oral
forward-looking statements attributable to International Game
Technology PLC, or persons acting on its behalf, are expressly
qualified in their entirety by this cautionary statement.
Contact:
Robert K.
Vincent, Corporate Communications, toll free in
U.S./Canada +1 (844) IGT-7452;
outside U.S./Canada +1 (401)
392-7452
James Hurley, Investor Relations, +1
(401) 392-7190
Simone Cantagallo, +39 06 51899030;
for Italian media inquiries
International Game
Technology PLC
|
Condensed
Consolidated Statements of Operations
|
($ and shares
in thousands, except per share data)
|
Unaudited
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Service
revenue
|
|
1,061,669
|
|
1,109,029
|
Product
sales
|
|
259,547
|
|
255,928
|
Total
revenue
|
|
1,321,216
|
|
1,364,957
|
|
|
|
|
|
Cost of
services
|
|
641,649
|
|
674,302
|
Cost of
sales
|
|
179,240
|
|
180,021
|
Selling, general and
administrative
|
|
236,547
|
|
242,997
|
Research and
development
|
|
87,182
|
|
84,552
|
Restructuring
expense
|
|
6,420
|
|
35,326
|
Impairment
loss
|
|
31,162
|
|
12,497
|
Transaction expense,
net
|
|
1,030
|
|
3,701
|
Total operating
expenses
|
|
1,183,230
|
|
1,233,396
|
|
|
|
|
|
Operating
income
|
|
137,986
|
|
131,561
|
|
|
|
|
|
Interest
income
|
|
2,553
|
|
4,765
|
Other income
(expense), net
|
|
23,359
|
|
(2,074)
|
Foreign exchange
gain, net
|
|
195,587
|
|
91,105
|
Interest
expense
|
|
(115,520)
|
|
(119,334)
|
Total
non-operating income (expenses)
|
|
105,979
|
|
(25,538)
|
|
|
|
|
|
Income before
provision for income taxes
|
|
243,965
|
|
106,023
|
|
|
|
|
|
(Benefit from)
provision for income taxes
|
|
(5,387)
|
|
22,990
|
|
|
|
|
|
Net
income
|
|
249,352
|
|
83,033
|
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
|
16,034
|
|
9,533
|
|
|
|
|
|
Net income
attributable to IGT PLC
|
|
233,318
|
|
73,500
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC per common share - basic
|
|
1.15
|
|
0.37
|
Net income
attributable to IGT PLC per common share - diluted
|
1.15
|
|
0.37
|
|
|
|
|
|
Weighted-average
shares - basic
|
|
202,324
|
|
199,862
|
Weighted-average
shares - diluted
|
|
203,146
|
|
200,731
|
International Game
Technology PLC
|
Condensed
Consolidated Statements of Operations
|
($ and shares
in thousands, except per share data)
|
Unaudited
|
|
|
|
|
|
|
|
For the year
ended
|
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Service
revenue
|
|
4,375,586
|
|
3,977,693
|
Product
sales
|
|
778,310
|
|
711,363
|
Total
revenue
|
|
5,153,896
|
|
4,689,056
|
|
|
|
|
|
Cost of
services
|
|
2,553,479
|
|
2,417,315
|
Cost of
sales
|
|
582,358
|
|
520,343
|
Selling, general and
administrative
|
|
945,824
|
|
795,252
|
Research and
development
|
|
343,531
|
|
277,401
|
Restructuring
expense
|
|
27,934
|
|
76,896
|
Impairment
loss
|
|
37,744
|
|
12,497
|
Transaction expense,
net
|
|
2,590
|
|
49,396
|
Total operating
expenses
|
|
4,493,460
|
|
4,149,100
|
|
|
|
|
|
Operating
income
|
|
660,436
|
|
539,956
|
|
|
|
|
|
Interest
income
|
|
12,840
|
|
17,681
|
Other income
(expense), net
|
|
18,365
|
|
(122,295)
|
Foreign exchange
gain, net
|
|
101,040
|
|
5,611
|
Interest
expense
|
|
(469,268)
|
|
(457,984)
|
Total
non-operating expenses
|
|
(337,023)
|
|
(556,987)
|
|
|
|
|
|
Income (loss)
before provision for income taxes
|
|
323,413
|
|
(17,031)
|
|
|
|
|
|
Provision for income
taxes
|
|
59,206
|
|
38,896
|
|
|
|
|
|
Net income
(loss)
|
|
264,207
|
|
(55,927)
|
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
|
52,870
|
|
19,647
|
|
|
|
|
|
Net income (loss)
attributable to IGT PLC
|
|
211,337
|
|
(75,574)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to IGT PLC per common share - basic
|
|
1.05
|
|
(0.39)
|
Net income (loss)
attributable to IGT PLC per common share - diluted
|
1.05
|
|
(0.39)
|
|
|
|
|
|
Weighted-average
shares - basic
|
|
201,511
|
|
192,398
|
Weighted-average
shares - diluted
|
|
202,214
|
|
192,398
|
International Game
Technology PLC
|
Condensed
Consolidated Balance Sheets
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
December
31,
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
294,094
|
|
627,484
|
Restricted cash and
investments
|
247,222
|
|
169,101
|
Trade and other
receivables, net
|
947,237
|
|
959,592
|
Inventories
|
347,494
|
|
269,982
|
Other current
assets
|
424,727
|
|
423,701
|
Income taxes
receivable
|
28,792
|
|
35,514
|
Total current
assets
|
2,289,566
|
|
2,485,374
|
|
|
|
|
Systems, equipment
and other assets related to contracts, net
|
1,199,674
|
|
1,127,518
|
Property, plant and
equipment, net
|
357,841
|
|
349,677
|
Goodwill,
net
|
6,810,012
|
|
6,830,499
|
Intangible assets,
net
|
2,874,031
|
|
3,335,633
|
Other non-current
assets
|
1,497,662
|
|
937,917
|
Deferred income
taxes
|
31,376
|
|
48,074
|
Total non-current
assets
|
12,770,596
|
|
12,629,318
|
|
|
|
|
Total
Assets
|
15,060,162
|
|
15,114,692
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
1,216,079
|
|
1,057,860
|
Other current
liabilities
|
1,097,045
|
|
922,586
|
Current portion of
long-term debt
|
77
|
|
160
|
Income taxes
payable
|
28,590
|
|
30,020
|
Total current
liabilities
|
2,341,791
|
|
2,010,626
|
|
|
|
|
Long-term debt, less
current portion
|
7,863,085
|
|
8,334,013
|
Deferred income
taxes
|
761,924
|
|
941,418
|
Other non-current
liabilities
|
444,556
|
|
462,493
|
Total non-current
liabilities
|
9,069,565
|
|
9,737,924
|
|
|
|
|
Total
Liabilities
|
11,411,356
|
|
11,748,550
|
|
|
|
|
Commitments and
contingencies
|
-
|
|
-
|
|
|
|
|
Shareholders' and
mezzanine equity
|
3,648,806
|
|
3,366,142
|
|
|
|
|
Total liabilities
and shareholders' equity
|
15,060,162
|
|
15,114,692
|
International Game
Technology PLC
|
Consolidated
Statements of Cash Flows
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year
ended December 31,
|
|
|
2016
|
|
2015
|
Operating
activities
|
|
|
|
|
Net income
(loss)
|
|
264,207
|
|
(55,927)
|
Adjustments
for:
|
|
|
|
|
Amortization
|
|
492,021
|
|
410,264
|
Depreciation
|
|
390,448
|
|
369,564
|
Amortization of
upfront payments to customers
|
|
116,980
|
|
107,812
|
Impairment
loss
|
|
37,744
|
|
12,497
|
Stock-based
compensation expense
|
|
26,346
|
|
36,067
|
Debt issuance cost
amortization
|
|
18,347
|
|
40,366
|
Foreign exchange
gain, net
|
|
(101,040)
|
|
(5,611)
|
Loss on
extinguishment of debt
|
|
-
|
|
73,806
|
Other, net
|
|
(142)
|
|
50,626
|
Cash flows before
changes in operating assets and liabilities
|
|
1,244,911
|
|
1,039,464
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Trade and other
receivables
|
|
(23,758)
|
|
83,218
|
Inventories
|
|
(61,026)
|
|
72
|
Accounts
payable
|
|
(27,123)
|
|
(53,762)
|
Other assets and
liabilities
|
|
(147,661)
|
|
(282,995)
|
Net cash flows
from operating activities
|
|
985,343
|
|
785,997
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Upfront payments to
customers
|
|
(665,260)
|
|
-
|
Capital
expenditures
|
|
(557,238)
|
|
(402,634)
|
Purchases of jackpot
annuity investments
|
|
(2,596)
|
|
(6,799)
|
Proceeds from jackpot
annuity investments
|
|
16,565
|
|
36,215
|
Proceeds from sale of
assets
|
|
185,798
|
|
230,587
|
Acquisition of IGT,
net of cash acquired
|
|
-
|
|
(3,241,415)
|
Other
|
|
2,735
|
|
22,523
|
Net cash flows
used in investing activities
|
|
(1,019,996)
|
|
(3,361,523)
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Principal payments on
long-term debt
|
|
(357,513)
|
|
(2,714,867)
|
Dividends
paid
|
|
(161,179)
|
|
(209,589)
|
Return of capital -
non-controlling interest
|
|
(35,407)
|
|
(30,568)
|
Dividends paid -
non-controlling interest
|
|
(32,717)
|
|
(29,156)
|
Debt issuance costs
paid
|
|
(10,825)
|
|
(84,859)
|
Payments for
accelerated stock awards
|
|
(3,489)
|
|
(14,867)
|
Proceeds from stock
options
|
|
12,699
|
|
10,672
|
Net receipts from
(payments of) financial liabilities
|
|
30,595
|
|
(21,539)
|
Capital increase -
non-controlling interest
|
|
256,455
|
|
9,049
|
Payments in
connection with note consents
|
|
-
|
|
(29,022)
|
Payments on bridge
facility
|
|
-
|
|
(51,409)
|
Payments in
connection with the early extinguishment of debt
|
|
-
|
|
(79,526)
|
Payments to
withdrawing shareholders
|
|
-
|
|
(407,759)
|
Proceeds from
interest rate swaps
|
|
-
|
|
67,773
|
Proceeds from
issuance of long-term debt
|
|
-
|
|
6,521,991
|
Other
|
|
(10,758)
|
|
(16,158)
|
Net cash flows
(used in) provided by financing activities
|
|
(312,139)
|
|
2,920,166
|
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
(346,792)
|
|
344,640
|
Effect of exchange
rate changes on cash
|
|
13,402
|
|
(34,262)
|
Cash and cash
equivalents at the beginning of the period
|
|
627,484
|
|
317,106
|
Cash and cash
equivalents at the end of the period
|
|
294,094
|
|
627,484
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Cash Flow Information:
|
|
|
|
|
Interest
paid
|
|
(450,655)
|
|
(365,479)
|
Income taxes
paid
|
|
(183,278)
|
|
(199,195)
|
International Game
Technology PLC
|
Net
Debt
|
($
thousands)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
2016
|
|
2015
|
Long-term debt,
less current portion
|
|
|
|
6.250% Senior Secured
Notes due 2022
|
1,472,150
|
|
1,468,875
|
6.500% Senior Secured
Notes due 2025
|
1,085,537
|
|
1,084,249
|
4.750% Senior Secured
Notes due 2023
|
884,917
|
|
912,418
|
4.125% Senior Secured
Notes due 2020
|
730,465
|
|
752,212
|
5.625% Senior Secured
Notes due 2020
|
593,954
|
|
592,245
|
7.500% Senior Secured
Notes due 2019
|
521,894
|
|
530,009
|
6.625% Senior Secured
Notes due 2018
|
521,556
|
|
533,915
|
4.750% Senior Secured
Notes due 2020
|
509,050
|
|
520,649
|
5.500% Senior Secured
Notes due 2020
|
126,294
|
|
126,833
|
5.350% Senior Secured
Notes due 2023
|
61,187
|
|
61,303
|
Senior Secured
Notes
|
6,507,004
|
|
6,582,708
|
|
|
|
|
Term Loan Facilities
due 2019
|
839,552
|
|
866,785
|
Revolving Credit
Facilities due 2021
|
516,529
|
|
834,968
|
Capital
Securities
|
-
|
|
49,472
|
Other
|
-
|
|
80
|
Long-term debt,
less current portion
|
7,863,085
|
|
8,334,013
|
|
|
|
|
Current portion of
long-term debt
|
77
|
|
160
|
Total
debt
|
7,863,162
|
|
8,334,173
|
|
|
|
|
Cash and cash
equivalents
|
294,094
|
|
627,484
|
|
|
|
|
Net
debt
|
7,569,068
|
|
7,706,689
|
International Game
Technology PLC
|
Adjusted EBITDA
and Free Cash Flow
|
Reconciliations of
Non-GAAP Financial Measures
|
($
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Net income
|
|
249,352
|
|
83,033
|
(Benefit from)
provision for income taxes
|
|
(5,387)
|
|
22,990
|
Non-operating
(income) expenses
|
|
(105,979)
|
|
25,538
|
Amortization
|
|
114,858
|
|
124,000
|
Depreciation
|
|
97,164
|
|
109,888
|
Amortization of
upfront payments to customers
|
|
31,820
|
|
26,634
|
Impairment
loss
|
|
31,162
|
|
12,497
|
Restructuring
expense
|
|
6,420
|
|
35,326
|
Stock-based
compensation expense
|
|
1,844
|
|
3,335
|
Transaction expense,
net
|
|
1,030
|
|
3,701
|
Non-cash purchase
accounting (excluding D&A)
|
|
(126)
|
|
1,865
|
Adjusted
EBITDA
|
|
422,158
|
|
448,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
364,346
|
|
315,003
|
Capital
expenditures
|
|
(185,741)
|
|
(113,891)
|
Upfront payments to
customers
|
|
(274,870)
|
|
-
|
Free Cash
Flow
|
|
(96,265)
|
|
201,112
|
International Game
Technology PLC
|
Adjusted EBITDA
and Free Cash Flow
|
Reconciliations of
Non-GAAP Financial Measures
|
($
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year
ended
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
|
|
As
Reported
|
|
Legacy IGT
|
|
Pro Forma
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
264,207
|
|
(55,927)
|
|
(13,085)
|
|
(69,012)
|
Provision for
(benefit from) income taxes
|
|
59,206
|
|
38,896
|
|
(4,126)
|
|
34,770
|
Non-operating
expenses
|
|
337,023
|
|
556,987
|
|
10,057
|
|
567,044
|
Amortization
|
|
492,021
|
|
410,264
|
|
6,107
|
|
416,371
|
Depreciation
|
|
390,448
|
|
369,564
|
|
28,960
|
|
398,524
|
Amortization of
upfront payments to customers
|
|
116,980
|
|
107,812
|
|
3,556
|
|
111,368
|
Impairment
loss
|
|
37,744
|
|
12,497
|
|
6,100
|
|
18,597
|
Restructuring
expense
|
|
27,934
|
|
76,896
|
|
-
|
|
76,896
|
Stock-based
compensation expense
|
|
26,346
|
|
36,067
|
|
5,951
|
|
42,018
|
Transaction expense,
net
|
|
2,590
|
|
34,529
|
|
18,782
|
|
53,311
|
Non-cash purchase
accounting (excluding D&A)
|
|
795
|
|
23,099
|
|
-
|
|
23,099
|
Other
|
|
-
|
|
-
|
|
30,956
|
|
30,956
|
Adjusted
EBITDA
|
|
1,755,294
|
|
1,610,684
|
|
93,258
|
|
1,703,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
985,343
|
|
785,997
|
|
82,698
|
|
868,695
|
Capital
expenditures
|
|
(557,238)
|
|
(402,634)
|
|
(26,096)
|
|
(428,730)
|
Upfront payments to
customers
|
|
(665,260)
|
|
-
|
|
-
|
|
-
|
Free Cash
Flow
|
|
(237,155)
|
|
383,363
|
|
56,602
|
|
439,965
|
International Game Technology
PLC
|
Condensed
Consolidated Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
Q4
2016
|
|
|
|
|
|
Impairment/
|
|
Transaction
|
|
Q4
2016
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
(Income)
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
1,321,216
|
|
244
|
|
-
|
|
-
|
|
-
|
|
1,321,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
641,649
|
|
(44,186)
|
|
-
|
|
-
|
|
-
|
|
597,463
|
Cost of
sales
|
|
179,240
|
|
(29,845)
|
|
-
|
|
-
|
|
-
|
|
149,395
|
Selling,
general and administrative
|
|
236,547
|
|
(29,468)
|
|
-
|
|
-
|
|
-
|
|
207,079
|
Research and
development
|
|
87,182
|
|
(277)
|
|
-
|
|
-
|
|
-
|
|
86,905
|
Restructuring
expense
|
|
6,420
|
|
-
|
|
-
|
|
(6,420)
|
|
-
|
|
-
|
Impairment
loss
|
|
31,162
|
|
(30,000)
|
|
-
|
|
(1,162)
|
|
-
|
|
-
|
Transaction
expense, net
|
|
1,030
|
|
-
|
|
-
|
|
-
|
|
(1,030)
|
|
-
|
Total
operating expenses
|
|
1,183,230
|
|
(133,776)
|
|
-
|
|
(7,582)
|
|
(1,030)
|
|
1,040,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
137,986
|
|
134,020
|
|
-
|
|
7,582
|
|
1,030
|
|
280,618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange gain, net
|
|
195,587
|
|
-
|
|
(195,587)
|
|
-
|
|
-
|
|
-
|
Other income,
net
|
|
23,359
|
|
11,672
|
|
-
|
|
-
|
|
-
|
|
35,031
|
Interest
expense, net
|
|
(112,967)
|
|
2,084
|
|
-
|
|
-
|
|
-
|
|
(110,883)
|
Total
non-operating income (expenses)
|
|
105,979
|
|
13,756
|
|
(195,587)
|
|
-
|
|
-
|
|
(75,852)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
|
243,965
|
|
147,776
|
|
(195,587)
|
|
7,582
|
|
1,030
|
|
204,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit from)
provision for income taxes (a)
|
|
(5,387)
|
|
51,662
|
|
(50,323)
|
|
13,230
|
|
356
|
|
9,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
249,352
|
|
96,114
|
|
(145,264)
|
|
(5,648)
|
|
674
|
|
195,228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
16,034
|
|
26
|
|
-
|
|
-
|
|
-
|
|
16,060
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC
|
|
233,318
|
|
96,088
|
|
(145,264)
|
|
(5,648)
|
|
674
|
|
179,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share - diluted
|
|
1.15
|
|
|
|
|
|
|
|
|
|
0.88
|
Weighted-average shares -
diluted
|
|
203,146
|
|
|
|
|
|
|
|
|
|
203,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Provision
for income taxes was determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
International Game
Technology PLC
|
Condensed
Consolidated Statement of Operations
|
Reconciliation of
Non-GAAP Financial Measures
|
($ and
shares in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
Q4
2015
|
|
|
|
|
|
Impairment/
|
|
Transaction
|
|
Q4
2015
|
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
and
Refinancing
|
|
As
|
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
1,364,957
|
|
1,622
|
|
-
|
|
-
|
|
-
|
|
1,366,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
674,302
|
|
(44,064)
|
|
-
|
|
-
|
|
-
|
|
630,238
|
|
Cost of
sales
|
|
180,021
|
|
(29,897)
|
|
-
|
|
-
|
|
-
|
|
150,124
|
|
Selling,
general and administrative
|
|
242,997
|
|
(34,295)
|
|
-
|
|
-
|
|
-
|
|
208,702
|
|
Research and
development
|
|
84,552
|
|
(466)
|
|
-
|
|
-
|
|
-
|
|
84,086
|
|
Restructuring
expense
|
|
35,326
|
|
-
|
|
-
|
|
(35,326)
|
|
-
|
|
-
|
|
Impairment
loss
|
|
12,497
|
|
-
|
|
-
|
|
(12,497)
|
|
-
|
|
-
|
|
Transaction
expense, net
|
|
3,701
|
|
-
|
|
-
|
|
-
|
|
(3,701)
|
|
-
|
|
Total
operating expenses
|
|
1,233,396
|
|
(108,722)
|
|
-
|
|
(47,823)
|
|
(3,701)
|
|
1,073,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
131,561
|
|
110,344
|
|
-
|
|
47,823
|
|
3,701
|
|
293,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
|
(114,569)
|
|
3,531
|
|
-
|
|
-
|
|
-
|
|
(111,038)
|
|
Other (expense)
income, net
|
|
(2,074)
|
|
13,540
|
|
-
|
|
-
|
|
-
|
|
11,466
|
|
Foreign
exchange gain, net
|
|
91,105
|
|
-
|
|
(91,105)
|
|
-
|
|
-
|
|
-
|
|
Total
non-operating expenses
|
|
(25,538)
|
|
17,071
|
|
(91,105)
|
|
-
|
|
-
|
|
(99,572)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
|
106,023
|
|
127,415
|
|
(91,105)
|
|
47,823
|
|
3,701
|
|
193,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
22,990
|
|
40,283
|
|
(22,895)
|
|
16,165
|
|
414
|
|
56,957
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
83,033
|
|
87,132
|
|
(68,210)
|
|
31,658
|
|
3,287
|
|
136,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
9,533
|
|
25
|
|
-
|
|
-
|
|
-
|
|
9,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC
|
|
73,500
|
|
87,107
|
|
(68,210)
|
|
31,658
|
|
3,287
|
|
127,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share - diluted
|
|
0.37
|
|
|
|
|
|
|
|
|
|
0.63
|
|
Weighted-average shares -
diluted
|
|
200,731
|
|
|
|
|
|
|
|
|
|
200,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Provision
for income taxes was determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
International Game Technology
PLC
|
Condensed
Consolidated Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to
date
|
|
Adjustments
|
|
Year to
date
|
|
|
December
2016
|
|
|
|
|
|
Impairment/
|
|
|
|
December
2016
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
Transaction
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
5,153,896
|
|
1,576
|
|
-
|
|
-
|
|
-
|
|
5,155,472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
2,553,479
|
|
(181,552)
|
|
-
|
|
-
|
|
-
|
|
2,371,927
|
Cost of
sales
|
|
582,358
|
|
(118,936)
|
|
-
|
|
-
|
|
-
|
|
463,422
|
Selling,
general and administrative
|
|
945,824
|
|
(134,325)
|
|
-
|
|
-
|
|
-
|
|
811,499
|
Research and
development
|
|
343,531
|
|
(1,736)
|
|
-
|
|
-
|
|
-
|
|
341,795
|
Restructuring
expense
|
|
27,934
|
|
-
|
|
-
|
|
(27,934)
|
|
-
|
|
-
|
Impairment
loss
|
|
37,744
|
|
(30,000)
|
|
-
|
|
(7,744)
|
|
-
|
|
-
|
Transaction
expense, net
|
|
2,590
|
|
-
|
|
-
|
|
-
|
|
(2,590)
|
|
-
|
Total
operating expenses
|
|
4,493,460
|
|
(466,549)
|
|
-
|
|
(35,678)
|
|
(2,590)
|
|
3,988,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
660,436
|
|
468,125
|
|
-
|
|
35,678
|
|
2,590
|
|
1,166,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange gain, net
|
|
101,040
|
|
-
|
|
(101,040)
|
|
-
|
|
-
|
|
-
|
Other income,
net
|
|
18,365
|
|
15,553
|
|
-
|
|
-
|
|
-
|
|
33,918
|
Interest
expense, net
|
|
(456,428)
|
|
8,231
|
|
-
|
|
-
|
|
-
|
|
(448,197)
|
Total
non-operating expenses
|
|
(337,023)
|
|
23,784
|
|
(101,040)
|
|
-
|
|
-
|
|
(414,279)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
|
323,413
|
|
491,909
|
|
(101,040)
|
|
35,678
|
|
2,590
|
|
752,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
59,206
|
|
174,000
|
|
(26,892)
|
|
20,948
|
|
658
|
|
227,920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
264,207
|
|
317,909
|
|
(74,148)
|
|
14,730
|
|
1,932
|
|
524,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
52,870
|
|
102
|
|
-
|
|
-
|
|
-
|
|
52,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC
|
|
211,337
|
|
317,807
|
|
(74,148)
|
|
14,730
|
|
1,932
|
|
471,658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share - diluted
|
|
1.05
|
|
|
|
|
|
|
|
|
|
2.33
|
Weighted-average shares -
diluted
|
|
202,214
|
|
|
|
|
|
|
|
|
|
202,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Provision
for income taxes was determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
International Game Technology
PLC
|
Condensed
Consolidated Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to
date
|
|
Adjustments
|
|
Year to
date
|
|
|
|
Year to
date
|
|
|
December
2015
|
|
|
|
|
|
Impairment/
|
|
Transaction
|
|
December
2015
|
|
|
|
December
2015
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
and
Refinancing
|
|
As
|
|
Pro
Forma
|
|
Pro
forma
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense
|
|
Adjusted
|
|
Adjustments
|
|
and
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
4,689,056
|
|
15,541
|
|
-
|
|
-
|
|
-
|
|
4,704,597
|
|
399,387
|
|
5,103,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
2,417,315
|
|
(148,750)
|
|
-
|
|
-
|
|
-
|
|
2,268,565
|
|
113,306
|
|
2,381,871
|
Cost of
sales
|
|
520,343
|
|
(96,661)
|
|
-
|
|
-
|
|
-
|
|
423,682
|
|
63,355
|
|
487,037
|
Selling,
general and administrative
|
|
795,252
|
|
(101,319)
|
|
-
|
|
-
|
|
-
|
|
693,933
|
|
134,166
|
|
828,099
|
Research and
development
|
|
277,401
|
|
(2,159)
|
|
-
|
|
-
|
|
-
|
|
275,242
|
|
62,760
|
|
338,002
|
Restructuring
expense
|
|
76,896
|
|
-
|
|
-
|
|
(76,896)
|
|
-
|
|
-
|
|
-
|
|
-
|
Impairment
loss
|
|
12,497
|
|
-
|
|
-
|
|
(12,497)
|
|
-
|
|
-
|
|
-
|
|
-
|
Transaction
expense, net
|
|
49,396
|
|
-
|
|
-
|
|
-
|
|
(49,396)
|
|
-
|
|
-
|
|
-
|
Total
operating expenses
|
|
4,149,100
|
|
(348,889)
|
|
-
|
|
(89,393)
|
|
(49,396)
|
|
3,661,422
|
|
373,587
|
|
4,035,009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
539,956
|
|
364,430
|
|
-
|
|
89,393
|
|
49,396
|
|
1,043,175
|
|
25,800
|
|
1,068,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
|
(440,303)
|
|
3,530
|
|
-
|
|
-
|
|
-
|
|
(436,773)
|
|
|
|
|
Other (expense)
income, net
|
|
(122,295)
|
|
19,581
|
|
-
|
|
-
|
|
117,877
|
|
15,163
|
|
|
|
|
Foreign
exchange gain, net
|
|
5,611
|
|
-
|
|
(5,611)
|
|
-
|
|
-
|
|
-
|
|
|
|
|
Total
non-operating expenses
|
|
(556,987)
|
|
23,111
|
|
(5,611)
|
|
-
|
|
117,877
|
|
(421,610)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before provision for income taxes
|
|
(17,031)
|
|
387,541
|
|
(5,611)
|
|
89,393
|
|
167,273
|
|
621,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
38,896
|
|
132,298
|
|
(3,127)
|
|
29,165
|
|
41,529
|
|
238,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(55,927)
|
|
255,243
|
|
(2,484)
|
|
60,228
|
|
125,744
|
|
382,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
19,647
|
|
102
|
|
-
|
|
-
|
|
-
|
|
19,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(75,574)
|
|
255,141
|
|
(2,484)
|
|
60,228
|
|
125,744
|
|
363,055
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(0.39)
|
|
|
|
|
|
|
|
|
|
1.88
|
|
|
|
|
Weighted-average shares -
diluted
|
|
192,398
|
|
|
|
|
|
|
|
|
|
193,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Provision
for income taxes was determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
International Game
Technology PLC Segment Performance (Pro forma)
|
Revenue
Detail
|
($
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERNATIONAL GAME
TECHNOLOGY PLC
|
|
|
Quarter
Change
|
YTD
Change
|
|
|
|
|
2015
|
2016
|
|
|
Percentage
|
Constant
FX
|
Percentage
|
Constant
FX
|
|
|
|
|
Q4
|
YTD
|
Q4
|
YTD
|
|
|
Q4
|
Q4
|
YTD
|
YTD
|
Gaming
|
|
Total
Revenue
|
762
|
2,725
|
730
|
2,667
|
|
|
-4.3%
|
-3.3%
|
-2.2%
|
-1.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
547
|
2,036
|
492
|
1,976
|
|
|
-9.9%
|
-8.5%
|
-3.0%
|
-1.9%
|
|
|
Terminal
|
359
|
1,343
|
325
|
1,282
|
|
|
-9.6%
|
-8.6%
|
-4.6%
|
-3.7%
|
|
|
Social
(DDI)
|
84
|
317
|
61
|
279
|
|
|
-27.6%
|
-27.4%
|
-12.0%
|
-12.0%
|
|
|
Other
|
104
|
375
|
107
|
415
|
|
|
3.1%
|
6.8%
|
10.5%
|
13.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
216
|
690
|
237
|
691
|
|
|
10.0%
|
9.9%
|
0.2%
|
0.2%
|
|
|
Terminal
|
154
|
482
|
157
|
449
|
|
|
1.9%
|
1.9%
|
-6.7%
|
-6.8%
|
|
|
Other
|
62
|
208
|
81
|
242
|
|
|
30.0%
|
29.6%
|
16.4%
|
16.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
521
|
2,046
|
514
|
2,170
|
|
|
-1.3%
|
-0.8%
|
6.1%
|
6.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
484
|
1,930
|
494
|
2,086
|
|
|
1.9%
|
2.5%
|
8.0%
|
8.6%
|
|
|
FM/Concessions
|
430
|
1,717
|
444
|
1,829
|
|
|
3.1%
|
4.5%
|
6.5%
|
7.3%
|
|
|
LMA
|
35
|
128
|
37
|
174
|
|
|
5.0%
|
5.0%
|
36.3%
|
36.3%
|
|
|
Other
Services
|
19
|
85
|
13
|
82
|
|
|
-30.8%
|
-49.8%
|
-3.9%
|
-6.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
36
|
115
|
20
|
85
|
|
|
-44.6%
|
-44.1%
|
-26.5%
|
-26.2%
|
|
|
Terminal
|
15
|
41
|
1
|
11
|
|
|
-96.5%
|
-96.5%
|
-74.4%
|
-74.1%
|
|
|
Systems/Other
|
22
|
74
|
20
|
74
|
|
|
-9.2%
|
-8.3%
|
0.2%
|
0.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
82
|
318
|
78
|
317
|
|
|
-4.7%
|
-4.1%
|
-0.2%
|
1.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
78
|
312
|
76
|
314
|
|
|
-2.8%
|
-2.7%
|
0.8%
|
1.8%
|
|
Product
Sales
|
4
|
5
|
2
|
3
|
|
|
-43.5%
|
-32.1%
|
-53.2%
|
-42.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Revenue
|
1,365
|
5,088
|
1,321
|
5,154
|
|
|
-3.2%
|
-2.4%
|
1.3%
|
2.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Total
|
336
|
1,245
|
340
|
1,374
|
|
|
1.0%
|
1.5%
|
10.4%
|
10.9%
|
|
|
Purchase
Accounting
|
(110)
|
(372)
|
(134)
|
(468)
|
|
|
21.5%
|
21.6%
|
25.9%
|
26.0%
|
|
|
Corporate
Support
|
(94)
|
(340)
|
(68)
|
(246)
|
|
|
-28.3%
|
-26.3%
|
-27.7%
|
-26.2%
|
|
|
Total
|
132
|
533
|
138
|
660
|
|
|
4.9%
|
4.6%
|
23.9%
|
23.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTH AMERICA
GAMING & INTERACTIVE
|
|
|
Quarter
Change
|
YTD
Change
|
|
|
|
|
2015
|
2016
|
|
|
Percentage
|
Constant
FX
|
Percentage
|
Constant
FX
|
|
|
|
|
Q4
|
YTD
|
Q4
|
YTD
|
|
|
Q4
|
Q4
|
YTD
|
YTD
|
Gaming
|
|
Total
Revenue
|
378
|
1,413
|
368
|
1,373
|
|
|
-2.5%
|
-2.6%
|
-2.8%
|
-2.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
263
|
1,025
|
230
|
975
|
|
|
-12.3%
|
-12.2%
|
-4.8%
|
-4.8%
|
|
|
Terminal
|
137
|
571
|
126
|
525
|
|
|
-7.8%
|
-7.8%
|
-8.1%
|
-8.0%
|
|
|
Social
(DDI)
|
84
|
317
|
61
|
279
|
|
|
-27.6%
|
-27.4%
|
-12.0%
|
-12.0%
|
|
|
Other
|
42
|
137
|
44
|
171
|
|
|
3.2%
|
3.2%
|
25.3%
|
25.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
115
|
388
|
138
|
398
|
|
|
19.8%
|
19.5%
|
2.7%
|
2.8%
|
|
|
Terminal
|
80
|
267
|
85
|
250
|
|
|
6.4%
|
6.0%
|
-6.4%
|
-6.4%
|
|
|
Other
|
35
|
121
|
53
|
148
|
|
|
50.2%
|
50.2%
|
23.0%
|
23.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
378
|
1,413
|
368
|
1,373
|
|
|
-2.5%
|
-2.6%
|
-2.8%
|
-2.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
106
|
335
|
101
|
344
|
|
|
-5.3%
|
-8.6%
|
2.8%
|
-0.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTH AMERICA
LOTTERY
|
|
|
Quarter
Change
|
YTD
Change
|
|
|
|
|
2015
|
2016
|
|
|
Percentage
|
Constant
FX
|
Percentage
|
Constant
FX
|
|
|
|
|
Q4
|
YTD
|
Q4
|
YTD
|
|
|
Q4
|
Q4
|
YTD
|
YTD
|
Gaming
|
|
Total
Revenue
|
37
|
149
|
35
|
146
|
|
|
-7.0%
|
-6.9%
|
-1.6%
|
-1.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
37
|
148
|
35
|
146
|
|
|
-5.9%
|
-5.9%
|
-1.0%
|
-0.9%
|
|
|
Terminal
|
25
|
103
|
24
|
100
|
|
|
-5.6%
|
-5.6%
|
-2.8%
|
-2.8%
|
|
|
Social
(DDI)
|
0
|
0
|
0
|
0
|
|
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
|
|
Other
|
12
|
45
|
11
|
46
|
|
|
-6.6%
|
-6.4%
|
3.2%
|
3.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
0
|
1
|
(0)
|
0
|
|
|
0.0%
|
0.0%
|
-86.9%
|
-86.6%
|
|
|
Terminal
|
(0)
|
0
|
0
|
(0)
|
|
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
|
|
Other
|
0
|
1
|
(0)
|
0
|
|
|
0.0%
|
0.0%
|
-84.4%
|
-84.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
232
|
916
|
250
|
1,047
|
|
|
7.7%
|
7.7%
|
14.3%
|
14.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
219
|
864
|
232
|
982
|
|
|
6.3%
|
6.3%
|
13.6%
|
13.6%
|
|
|
FM/Concessions
|
161
|
636
|
159
|
686
|
|
|
-1.1%
|
-1.1%
|
7.9%
|
7.9%
|
|
|
LMA
|
35
|
128
|
37
|
174
|
|
|
5.0%
|
5.0%
|
36.3%
|
36.3%
|
|
|
Other
Services
|
22
|
101
|
36
|
122
|
|
|
62.0%
|
62.0%
|
21.1%
|
21.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
13
|
52
|
17
|
65
|
|
|
31.1%
|
31.2%
|
25.7%
|
25.8%
|
|
|
Terminal
|
0
|
5
|
0
|
10
|
|
|
-28.0%
|
-27.9%
|
79.0%
|
79.0%
|
|
|
Systems/Other
|
13
|
46
|
17
|
55
|
|
|
32.3%
|
32.4%
|
19.5%
|
19.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
269
|
1,065
|
284
|
1,194
|
|
|
5.7%
|
5.7%
|
12.1%
|
12.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
43
|
195
|
65
|
300
|
|
|
53.8%
|
53.6%
|
54.4%
|
54.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERNATIONAL
|
|
|
Quarter
Change
|
YTD
Change
|
|
|
|
|
2015
|
2016
|
|
|
Percentage
|
Constant
FX
|
Percentage
|
Constant
FX
|
|
|
|
|
Q4
|
YTD
|
Q4
|
YTD
|
|
|
Q4
|
Q4
|
YTD
|
YTD
|
Gaming
|
|
Total
Revenue
|
148
|
502
|
144
|
473
|
|
|
-3.0%
|
0.5%
|
-5.8%
|
-2.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
47
|
197
|
44
|
181
|
|
|
-5.5%
|
5.5%
|
-8.4%
|
1.3%
|
|
|
Terminal
|
13
|
59
|
12
|
51
|
|
|
-1.6%
|
13.0%
|
-14.5%
|
2.4%
|
|
|
Social
(DDI)
|
0
|
0
|
0
|
0
|
|
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
|
|
Other
|
34
|
138
|
32
|
130
|
|
|
-7.0%
|
2.8%
|
-5.8%
|
0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
101
|
305
|
99
|
293
|
|
|
-1.8%
|
-1.8%
|
-4.1%
|
-4.1%
|
|
|
Terminal
|
74
|
214
|
72
|
199
|
|
|
-2.7%
|
-2.5%
|
-6.9%
|
-7.0%
|
|
|
Other
|
27
|
91
|
28
|
93
|
|
|
0.9%
|
0.0%
|
2.5%
|
2.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
95
|
342
|
59
|
282
|
|
|
-38.2%
|
-37.5%
|
-17.4%
|
-14.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
72
|
279
|
56
|
263
|
|
|
-22.2%
|
-21.5%
|
-5.6%
|
-2.1%
|
|
|
FM/Concessions
|
55
|
206
|
51
|
206
|
|
|
-6.1%
|
0.4%
|
0.3%
|
6.1%
|
|
|
LMA
|
0
|
0
|
0
|
0
|
|
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
|
|
Other
Services
|
17
|
73
|
4
|
57
|
|
|
-74.6%
|
-93.0%
|
-22.3%
|
-25.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
23
|
63
|
3
|
19
|
|
|
-87.6%
|
-86.8%
|
-69.3%
|
-68.7%
|
|
|
Terminal
|
15
|
36
|
0
|
1
|
|
|
-97.8%
|
-97.8%
|
-97.4%
|
-97.1%
|
|
|
Systems/Other
|
9
|
27
|
3
|
18
|
|
|
-70.6%
|
-68.6%
|
-32.5%
|
-31.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
22
|
78
|
18
|
72
|
|
|
-20.8%
|
-21.1%
|
-8.6%
|
-3.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
18
|
73
|
15
|
69
|
|
|
-15.9%
|
-18.8%
|
-5.2%
|
-0.9%
|
|
Product
Sales
|
4
|
5
|
2
|
3
|
|
|
-43.5%
|
-32.1%
|
-53.2%
|
-42.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
265
|
923
|
220
|
827
|
|
|
-17.1%
|
-14.9%
|
-10.3%
|
-6.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
55
|
165
|
44
|
144
|
|
|
-20.1%
|
-13.3%
|
-12.7%
|
-1.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ITALY
|
|
|
Quarter
Change
|
YTD
Change
|
|
|
|
|
2015
|
2016
|
|
|
Percentage
|
Constant
FX
|
Percentage
|
Constant
FX
|
|
|
|
|
Q4
|
YTD
|
Q4
|
YTD
|
|
|
Q4
|
Q4
|
YTD
|
YTD
|
Gaming
|
|
Total
Revenue
|
201
|
678
|
183
|
676
|
|
|
-8.8%
|
-7.6%
|
-0.3%
|
-0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
200
|
676
|
183
|
674
|
|
|
-8.8%
|
-7.6%
|
-0.2%
|
0.0%
|
|
|
Terminal
|
185
|
610
|
162
|
606
|
|
|
-12.1%
|
-11.0%
|
-0.7%
|
-0.5%
|
|
|
Social
(DDI)
|
0
|
0
|
0
|
0
|
|
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
|
|
Other
|
16
|
66
|
20
|
68
|
|
|
29.8%
|
32.7%
|
3.8%
|
4.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
0
|
2
|
0
|
1
|
|
|
0.0%
|
0.0%
|
-30.8%
|
-30.7%
|
|
|
Terminal
|
0
|
1
|
0
|
0
|
|
|
0.0%
|
0.0%
|
-98.6%
|
-98.6%
|
|
|
Other
|
0
|
1
|
0
|
1
|
|
|
0.0%
|
0.0%
|
3.9%
|
4.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
194
|
787
|
205
|
840
|
|
|
5.8%
|
7.0%
|
6.7%
|
6.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
194
|
787
|
205
|
840
|
|
|
5.8%
|
7.0%
|
6.7%
|
6.8%
|
|
|
FM/Concessions
|
215
|
876
|
233
|
937
|
|
|
8.5%
|
9.8%
|
7.0%
|
7.1%
|
|
|
LMA
|
0
|
0
|
0
|
0
|
|
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
|
|
Other
Services
|
(21)
|
(89)
|
(27)
|
(97)
|
|
|
33.7%
|
35.8%
|
9.5%
|
9.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
0
|
0
|
0
|
0
|
|
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
|
|
Terminal
|
0
|
0
|
0
|
0
|
|
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
|
|
Systems/Other
|
0
|
0
|
0
|
0
|
|
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
60
|
239
|
60
|
245
|
|
|
1.2%
|
2.2%
|
2.6%
|
2.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
60
|
239
|
60
|
245
|
|
|
1.2%
|
2.2%
|
2.6%
|
2.7%
|
|
Product
Sales
|
0
|
0
|
0
|
0
|
|
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
455
|
1,704
|
449
|
1,761
|
|
|
-1.3%
|
-0.1%
|
3.4%
|
3.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
132
|
550
|
130
|
586
|
|
|
-2.1%
|
-0.9%
|
6.5%
|
6.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Performance
Indicators (KPIs)
|
Consolidated Key
Performance Indicators (KPIs)
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Full
Year
|
Periods Ended
December 31
|
|
2016
|
2015
|
%
change
|
|
2016
|
2015
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
|
|
|
|
|
Casino
|
|
|
34,653
|
34,568
|
0.2%
|
|
34,653
|
34,568
|
0.2%
|
VLT -
Government Sponsored (ex-Italy)
|
|
15,150
|
15,491
|
-2.2%
|
|
15,150
|
15,491
|
-2.2%
|
VLT -
Italy Supplier (B2B)
|
|
8,840
|
8,291
|
6.6%
|
|
8,840
|
8,291
|
6.6%
|
Total
installed base
|
|
58,643
|
58,350
|
0.5%
|
|
58,643
|
58,350
|
0.5%
|
Yield
(average revenue per unit per day - $0.00)
|
|
30.27
|
32.71
|
-7.5%
|
|
31.92
|
33.74
|
-5.4%
|
|
|
|
|
|
|
|
|
|
|
|
Additional Italian Network Details:
|
|
|
|
|
|
|
|
|
VLT -
Operator (B2C)
|
|
11,036
|
11,115
|
-0.7%
|
|
11,036
|
11,115
|
-0.7%
|
AWP
|
|
|
58,937
|
58,328
|
1.0%
|
|
58,937
|
58,328
|
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
Machine units
shipped
|
|
|
|
|
|
|
|
|
New/Expansion
|
|
3,073
|
2,640
|
16.4%
|
|
7,922
|
6,821
|
16.1%
|
Replacement
|
|
7,247
|
8,922
|
-18.8%
|
|
25,225
|
28,338
|
-11.0%
|
Total
machines shipped
|
|
10,320
|
11,562
|
-10.7%
|
|
33,147
|
35,159
|
-5.7%
|
|
|
|
|
|
|
|
|
|
|
|
Global lottery
same-store revenue growth
|
|
|
|
|
|
|
|
|
Instants
& draw games
|
|
|
|
2.3%
|
|
|
|
3.8%
|
Multistate Jackpots
|
|
|
|
-2.9%
|
|
|
|
40.7%
|
Total
lottery same-store revenue growth (ex-Italy)
|
|
|
1.8%
|
|
|
|
8.1%
|
Italy
lottery revenue growth
|
|
|
|
7.4%
|
|
|
|
7.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
KPIs
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Full
Year
|
Periods Ended
December 31
|
|
2016
|
2015
|
%
change
|
|
2016
|
2015
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
|
|
|
|
Casino
|
|
24,472
|
25,418
|
-3.7%
|
|
24,472
|
25,418
|
-3.7%
|
VLT - Government Sponsored
|
|
14,878
|
15,241
|
-2.4%
|
|
14,878
|
15,241
|
-2.4%
|
Total
installed base
|
|
39,350
|
40,659
|
-3.2%
|
|
39,350
|
40,659
|
-3.2%
|
|
|
|
|
|
|
|
|
|
|
|
Machine units
shipped
|
|
|
|
|
|
|
|
|
New/Expansion
|
|
1,733
|
2,191
|
-20.9%
|
|
5,929
|
4,389
|
35.1%
|
Replacement
|
|
3,686
|
4,406
|
-16.3%
|
|
13,842
|
16,993
|
-18.5%
|
Total
machines shipped
|
|
5,419
|
6,597
|
-17.9%
|
|
19,771
|
21,382
|
-7.5%
|
|
|
|
|
|
|
|
|
|
|
|
DoubleDown
|
|
|
|
|
|
|
|
|
Revenue
($ Thousands)
|
|
61,702
|
83,598
|
-26.2%
|
|
280,010
|
316,999
|
-11.7%
|
Mobile
penetration
|
|
58%
|
53%
|
9.4%
|
|
55%
|
48%
|
15.4%
|
DAU
(Daily Active Users) 1
|
|
1,406
|
1,897
|
-25.9%
|
|
1,610
|
1,879
|
-14.3%
|
MAU
(Monthly Active Users) 1
|
|
3,369
|
4,411
|
-23.6%
|
|
3,839
|
4,526
|
-15.2%
|
Bookings
per DAU ($0.00) 1
|
|
$
0.48
|
$
0.47
|
2.0%
|
|
$
0.48
|
$
0.47
|
1.4%
|
|
|
|
|
|
|
|
|
|
|
|
Lottery same-store
revenue growth
|
|
|
|
|
|
|
|
|
Instants
& draw games
|
|
|
|
1.9%
|
|
|
|
3.9%
|
Multistate Jackpots
|
|
|
|
-1.5%
|
|
|
|
48.7%
|
Total
lottery same-store revenue growth
|
|
|
|
1.5%
|
|
|
|
9.7%
|
|
|
|
|
|
|
|
|
|
|
|
1As a
single application with multiple games, active users equal unique
users
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
KPIs
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Full
Year
|
Periods Ended
December 31
|
|
2016
|
2015
|
%
change
|
|
2016
|
2015
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
|
|
|
|
|
Casino
|
|
10,181
|
9,150
|
11.3%
|
|
10,181
|
9,150
|
11.3%
|
VLT - Government Sponsored
|
|
272
|
250
|
8.8%
|
|
272
|
250
|
8.8%
|
Total
installed base
|
|
10,453
|
9,400
|
11.2%
|
|
10,453
|
9,400
|
11.2%
|
|
|
|
|
|
|
|
|
|
|
|
Machine units
shipped
|
|
|
|
|
|
|
|
|
New/Expansion
|
|
1,340
|
449
|
198.4%
|
|
1,993
|
2,432
|
-18.1%
|
Replacement
|
|
3,561
|
4,516
|
-21.1%
|
|
11,383
|
11,345
|
0.3%
|
Total
machines shipped
|
|
4,901
|
4,965
|
-1.3%
|
|
13,376
|
13,777
|
-2.9%
|
|
|
|
|
|
|
|
|
|
|
|
Lottery same-store
revenue growth
|
|
|
|
|
|
|
|
|
Instants
& draw games
|
|
|
|
3.5%
|
|
|
|
3.7%
|
Multistate Jackpots
|
|
|
|
-9.1%
|
|
|
|
-3.3%
|
Total
lottery same-store revenue growth
|
|
|
|
2.6%
|
|
|
|
3.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Italy
KPIs
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Full
Year
|
Periods Ended
December 31
|
|
2016
|
2015
|
%
change
|
|
2016
|
2015
|
%
change
|
(In € millions,
except machines)
|
|
|
|
|
|
|
|
|
Lottery
|
|
|
|
|
|
|
|
|
Lotto
wagers
|
|
2,141
|
1,855
|
15.4%
|
|
8,093
|
7,077
|
14.4%
|
10eLotto
|
|
1,239
|
1,147
|
7.9%
|
|
4,716
|
4,287
|
10.0%
|
Core
|
|
577
|
638
|
-9.6%
|
|
2,227
|
2,447
|
-9.0%
|
Late
Numbers
|
|
326
|
70
|
367.0%
|
|
1,150
|
343
|
235.6%
|
|
|
|
|
|
|
|
|
|
|
|
Scratch & Win
Wagers
|
|
2,289
|
2,391
|
-4.3%
|
|
8,935
|
9,016
|
-0.9%
|
|
|
|
|
|
|
|
|
|
|
|
Italy lottery
revenue growth
|
|
|
|
7.4%
|
|
|
|
7.0%
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
|
|
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
|
|
|
|
|
VLT -
Operator (B2C)
|
|
11,036
|
11,115
|
-0.7%
|
|
11,036
|
11,115
|
-0.7%
|
VLT -
Supplier (B2B)
|
|
8,840
|
8,291
|
6.6%
|
|
8,840
|
8,291
|
6.6%
|
AWP
|
|
58,937
|
58,328
|
1.0%
|
|
58,937
|
58,328
|
1.0%
|
Total
Installed Base
|
|
78,813
|
77,734
|
1.4%
|
|
78,813
|
77,734
|
1.4%
|
|
|
|
|
|
|
|
|
|
|
|
Wagers
|
|
|
|
|
|
|
|
|
|
|
VLT -
Operator (B2C)
|
|
1,428
|
1,440
|
-0.8%
|
|
5,460
|
5,433
|
0.5%
|
AWP
|
|
1,087
|
1,159
|
-6.2%
|
|
4,188
|
4,388
|
-4.6%
|
Interactive Wagers (Gaming)
|
|
443
|
414
|
7.1%
|
|
1,659
|
1,672
|
-0.8%
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
Sports
Betting Wagers1
|
|
250
|
236
|
5.9%
|
|
855
|
864
|
-1.1%
|
Sports
Betting Payout (%)1
|
|
85.9%
|
84.6%
|
1.3
pp
|
|
84.0%
|
83.7%
|
0.3
pp
|
|
|
|
|
|
|
|
|
|
|
|
1Includes Virtual Wagers and Pools
& Horses
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/international-game-technology-plc-reports-fourth-quarter-and-full-year-2016-results-300421063.html
SOURCE International Game Technology PLC