Note 16 - Business Segments

9 Months Ended

Jun. 30, 2012

Segment Reporting Disclosure [Text Block]

16.           BUSINESS SEGMENTS

We view our business in the following two operating segments:

· North America includes our operations associated with customers located in the US and Canada

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

Certain income and expenses related to company-wide initiatives are managed at the corporate level and not allocated to any operating segment, primarily comprised of general and administrative costs and other income (expense). 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.

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, as well as discontinued operations, results in ongoing changes to the allocations of operating costs amongst our operating segments. Prior period operating income presented below was recast accordingly.

Business Segments Financial Information

	Periods Ended June 30,
	Quarters						Nine Months
	2012			2011			2012			2011
NORTH AMERICA
Revenues	$	416.0		$	364.0		$	1,154.2		$	1,083.7
Gaming operations		255.9			228.1			730.2			679.0
Product sales		160.1			135.9			424.0			404.7
Gross profit		243.9			214.2			671.4			640.0
Gaming operations		154.2			138.9			435.3			414.2
Product sales		89.7			75.3			236.1			225.8
Operating income		103.7			122.5			319.2			357.2
INTERNATIONAL
Revenues	$	116.8		$	125.0		$	365.4		$	333.5
Gaming operations		45.3			39.3			136.0			111.1
Product sales		71.5			85.7			229.4			222.4
Gross profit		58.7			74.4			196.8			200.6
Gaming operations		24.0			25.7			84.9			76.7
Product sales		34.7			48.7			111.9			123.9
Operating income		16.6			43.5			76.9			105.1
CORPORATE (unallocated)
Operating expenses	$	(24.8	)	$	(25.2	)	$	(82.6	)	$	(73.2	)
CONSOLIDATED
Revenues	$	532.8		$	489.0		$	1,519.6		$	1,417.2
Gaming operations		301.2			267.4			866.2			790.1
Product sales		231.6			221.6			653.4			627.1
Gross profit		302.6			288.6			868.2			840.6
Gaming operations		178.2			164.6			520.2			490.9
Product sales		124.4			124.0			348.0			349.7
Operating income		95.5			140.8			313.5			389.1