BUSINESS SEGMENTS

3 Months Ended

Dec. 31, 2013

BUSINESS SEGMENTS

BUSINESS SEGMENTS

16.  BUSINESS SEGMENTS

We view our business in the following two operating segments:

 ● North America includes our operations associated with land-based and online-real money customers located in the US and Canada, as well as US-based online social gaming operations

 ● International includes our operations associated with customers located in all other jurisdictions

Certain income and expenses related to company-wide initiatives primarily comprised of general and administrative costs and other income (expense) are managed at the corporate level and not allocated to an operating segment. We do not recognize inter-company revenues or expenses upon the transfer of gaming products between operating segments. Segment accounting policies are consistent with those of our consolidated financial statements and segment profit is measured on the basis of operating income. Impairment and restructuring charges, if any, are reflected within the segment where actions occurred.

Our business segments are designed to allocate resources within a framework of management responsibility. Operating costs included in one segment may benefit other segments. Realignment of our business development and administrative functions may result in ongoing changes to allocations of operating cost amongst our operating segments.

Business Segments Financial Information

First Quarters Ended December 31,	2013			2012
NORTH AMERICA
Revenues	$	427.4		$	409.4
Gaming operations		191.6			208.6
Product sales		170.0			158.9
Interactive		65.8			41.9
Gross profit		244.6			244.2
Gaming operations		113.7			129.7
Product sales		90.0			89.2
Interactive		40.9			25.3
Operating income		105.9			112.4
INTERNATIONAL
Revenues	$	113.8		$	120.9
Gaming operations		31.4			34.0
Product sales		73.6			75.9
Interactive		8.8			11.0
Gross profit		65.2			65.3
Gaming operations		22.5			23.4
Product sales		36.9			36.4
Interactive		5.8			5.5
Operating income		24.9			28.4
CORPORATE (unallocated)
Operating expenses	$	(27.1	)	$	(22.4	)
CONSOLIDATED
Revenues	$	541.2		$	530.3
Gaming operations		223.0			242.6
Product sales		243.6			234.8
Interactive		74.6			52.9
Gross profit		309.8			309.5
Gaming operations		136.2			153.1
Product sales		126.9			125.6
Interactive		46.7			30.8
Operating income		103.7			118.4