GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Jun. 30, 2011

6. GOODWILL AND INTANGIBLE ASSETS

Intangible assets consist of the following:

		June 30, 2011							June 30, 2010

	Useful Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(dollars in 000s)
Computer software	3 - 9	$	36,725		(31,841	)	$	4,884	$	35,652	$	(28,395	)	$	7,257
License rights	3 - 13		4,344		(2,751	)		1,593		3,624		(2,048	)		1,576
Trademarks	5 - 9		2,203		(2,203	)		—		2,203		(2,023	)		180
Core technology	5 - 14		22,763		(14,107	)		8,656		22,763		(10,346	)		12,417
Contracts	10		15,303		(7,372	)		7,931		10,836		(6,421	)		4,415
Other intangibles	3 - 5		5,337		(1,036	)		4,301		1,702		(999	)		703

Total finite-lived intangible assets		$	86,675	$	(59,310	)	$	27,365	$	76,780	$	(50,232	)	$	26,548
Trademark	indefinite		7,500		—			7,500		7,500		—			7,500

Total		$	94,175	$	(59,310	)	$	34,865	$	84,280	$	(50,232	)	$	34,048

In September 2009, the Company recorded an intangible asset of approximately $7.5 million related to one-time consideration given for a perpetual, world-wide license for the use of the Bally trademark in connection with the Company's business. Consideration for this intangible asset included approximately $5.0 million related to the delivery of gaming devices and $2.5 million in forgiveness of certain customer receivable balances. Previously, a royalty fee was paid and expensed based upon the number of units produced and sold using the trademark.

Total amortization expense related to finite-lived intangible assets totaled $9.3 million, $10.3 million and $9.8 million for the years ended June 30, 2011, 2010 and 2009, respectively, which included computer software amortization expense of $3.3 million, $4.4 million and $4.1 million, respectively.

Future amortization of finite-lived intangible assets is scheduled as follows:

Year Ended June 30,	(in 000s)

2012	$	10,326
2013		8,681
2014		4,180
2015		1,464
2016		1,297
Thereafter		1,417

Total	$	27,365

All goodwill is associated with continuing operations. The changes in the carrying amount of goodwill for the years ended June 30, 2011 and 2010 are as follows:

	(in 000s)

Balance as of June 30, 2009	$	161,960
Foreign currency translation adjustment		(807	)

Balance as of June 30, 2010		161,153
Foreign currency translation adjustment		957

Balance as of June 30, 2011	$	162,110

No impairment charges for goodwill and intangible assets were necessary for the years ended June 30, 2011, 2010 and 2009.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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