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Impairment and Restructuring
12 Months Ended
Sep. 30, 2014
Impairment and Restructuring [Abstract]  
Restructuring, Impairment, and Other Activities Disclosure [Text Block]

20.  IMPAIRMENT, RESTRUCTURING, AND MERGER-RELATED COSTS

Years Ended September 30,
 
2014
  
2013
  
2012
 
Impairment
 
$
14.4
  
$
3.6
  
$
42.5
 
Alabama note
  
5.3
   
2.3
   
12.8
 
Entraction
  
-
   
-
   
15.1
 
Other
  
9.1
   
1.3
   
14.6
 
Business realignment restructuring
  
15.6
   
-
   
-
 
Merger-related costs
  
10.2
   
-
   
-
 
Total
 
$
40.2
  
$
3.6
  
$
42.5
 


Impairment

Alabama Note

IGT machines ceased to be operated at the VictoryLand, Country Crossing and Greentrack facilities in 2010, as a result of challenges related to the legality of electronic charitable bingo in Alabama. Impairment has been recognized each year since, as the prospects of collecting our Alabama development financing declined with deteriorating market conditions and the decreasing value of associated property collateral.  The level 3 FV of the collateral was determined using expected cash flows discounted at risk-based market rates. The net carrying amount of the remaining Alabama note receivable totaled $14.8 million at September 30, 2014.

Entraction

In September 2012, based on an evaluation of our future business strategy and diminished returns largely related to regulatory challenges, we consolidated our IGTi product development and customer service resources in Europe primarily acquired with Entraction. We began exiting online turnkey and poker operations and closing or reducing certain facilities in Europe (Stockholm and Tallinn), resulting in restructuring charges of $3.6 million for severance, lease termination, and other wind-down costs, and impairment of $11.5 million related to acquired intangible assets, including developed technology, customer relationships, and trademarks.

Other

In September 2014, we recorded impairment of $9.1 million related to undeveloped land in Reno, Nevada due to a decline in market value.

In 2013, we recorded impairment of $1.3 million related to our building in Manchester, UK that was put on the market and $2.1 million was reclassified to held-for-sale within other assets.

During 2012, we recorded impairment of $14.6 million resulting from the evaluation of our business strategy and outlook related to the use of our Walker Digital patent portfolio.
Business Realignment Restructuring

To address the recent challenges facing the gaming industry, in March 2014 cost-saving measures were completed under a plan to realign our operating structure. Under this business realignment, we reduced our global workforce by 7% and accrued the charges below during 2014, which were substantially paid at September 30, 2014.

 
 
North America
  
International
  
Consolidated
 
Severance (cash)
 
$
6.0
  
$
2.8
  
$
8.8
 
Impairment of abandoned software (non-cash)
  
6.1
   
0.7
   
6.8
 
Total restructuring charges
 
$
12.1
  
$
3.5
  
$
15.6
 


Merger-related Costs

During 2014, we recorded $10.2 million of GTECH merger-related expenses, including professional fees for legal and financial consulting and retention bonuses to all employees who remain employed through the closing date of the proposed merger. See Note 1.