XML 81 R10.htm IDEA: XBRL DOCUMENT v2.4.0.8
Contract Rights Under Development Agreements and Customer Agreements
6 Months Ended
Jun. 30, 2014
Contract Rights Under Development Agreements And Customer Agreements [Abstract]  
Contract Rights Under Development Agreements and Customer Agreements
CONTRACT RIGHTS UNDER DEVELOPMENT AGREEMENTS AND CUSTOMER AGREEMENTS
The Company enters into development agreements and placement fee agreements with certain customers to secure floor space under lease agreements for its gaming machines. Amounts paid in connection with the development agreements are repaid to the Company in accordance with the terms of the agreement, whereas placements fees are not reimbursed. Placement fees can be in the form of cash paid upfront or free lease periods and are accreted over the life of the contract and the expense is recorded as a reduction of revenue. For the three months ended June 30, 2014 and 2013, $3,000 and $1.0 million, respectively, and for the six months ended June 30, 2014 and 2013, $9,000 and $2.0 million, respectively, were recorded as a reduction of revenue as accretion of contract rights under development agreements and customer agreements.
In connection with the Acquisition, the contract rights under development agreements and customer agreements that existed at December 20, 2013 were ascribed no value and a new intangible related to “Customer agreements and relationships as a result of purchase accounting related to the Acquisition” was established (see Note 7). Amortization of the fair value of this asset will be recorded in depreciation and amortization expense in the condensed consolidated statements of operations and comprehensive loss. For the three and six months ended June 30, 2014, $2.1 million and $4.3 million was recorded as depreciation and amortization expense, respectively.