BUSINESS SEGMENTS

9 Months Ended

Jun. 30, 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

	Third Quarters						Nine Months
Periods Ended June 30,	2014			2013			2014			2013
NORTH AMERICA
Revenues	$	374.7		$	461.0		$	1,216.4		$	1,346.0
Gaming operations		189.9			214.1			581.7			643.0
Product sales		111.1			184.7			425.0			544.2
Interactive		73.7			62.2			209.7			158.8
Gross profit		230.1			270.5			715.4			787.3
Gaming operations		115.4			128.8			346.0			391.7
Product sales		68.5			102.8			238.9			297.8
Interactive		46.2			38.9			130.5			97.8
Operating income		113.3			131.4			312.0			368.0
INTERNATIONAL
Revenues	$	92.9		$	118.0		$	305.2		$	363.2
Gaming operations		27.7			33.2			89.3			101.3
Product sales		55.8			74.5			188.1			228.7
Interactive		9.4			10.3			27.8			33.2
Gross profit		54.8			66.7			172.0			200.4
Gaming operations		19.7			22.9			65.7			69.9
Product sales		29.0			37.1			89.4			111.4
Interactive		6.1			6.7			16.9			19.1
Operating income		19.0			23.4			48.2			83.6
CORPORATE (unallocated)
Operating expenses	$	(22.7	)	$	(31.8	)	$	(74.8	)	$	(80.9	)
CONSOLIDATED
Revenues	$	467.6		$	579.0		$	1,521.6		$	1,709.2
Gaming operations		217.6			247.3			671.0			744.3
Product sales		166.9			259.2			613.1			772.9
Interactive		83.1			72.5			237.5			192.0
Gross profit		284.9			337.2			887.4			987.7
Gaming operations		135.1			151.7			411.7			461.6
Product sales		97.5			139.9			328.3			409.2
Interactive		52.3			45.6			147.4			116.9
Operating income		109.6			123.0			285.4			370.7