BUSINESS SEGMENTS

6 Months Ended

Mar. 31, 2014

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 all customers serviced by our 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

	Second Quarters						Six Months
Periods Ended March 31,	2014			2013			2014			2013
NORTH AMERICA
Revenues	$	414.2		$	475.7		$	841.6		$	885.0
Gaming operations		200.1			220.3			391.7			428.8
Product sales		143.8			200.6			313.8			359.5
Interactive		70.3			54.8			136.1			96.7
Gross profit		240.8			272.5			485.3			516.7
Gaming operations		116.8			133.1			230.5			262.7
Product sales		80.4			105.7			170.4			195.0
Interactive		43.6			33.7			84.4			59.0
Operating income		92.9			124.1			198.8			236.5
INTERNATIONAL
Revenues	$	98.6		$	124.3		$	212.4		$	245.2
Gaming operations		30.3			34.0			61.7			68.1
Product sales		58.8			78.4			132.4			154.2
Interactive		9.5			11.9			18.3			22.9
Gross profit		52.0			68.8			117.3			134.0
Gaming operations		23.6			23.6			46.1			47.1
Product sales		23.6			38.3			60.5			74.5
Interactive		4.8			6.9			10.7			12.4
Operating income		4.1			32.2			29.1			60.5
CORPORATE (unallocated)
Operating expenses	$	(24.9	)	$	(27.0	)	$	(52.2	)	$	(49.3	)
CONSOLIDATED
Revenues	$	512.8		$	600.0		$	1,054.0		$	1,130.2
Gaming operations		230.4			254.3			453.4			496.9
Product sales		202.6			279.0			446.2			513.7
Interactive		79.8			66.7			154.4			119.6
Gross profit		292.8			341.3			602.6			650.7
Gaming operations		140.4			156.7			276.6			309.8
Product sales		104.0			144.0			230.9			269.5
Interactive		48.4			40.6			95.1			71.4
Operating income		72.1			129.3			175.7			247.7