Note 18 - Business Segments

12 Months Ended

Sep. 30, 2012

Segment Reporting Disclosure [Text Block]

18.             BUSINESS SEGMENTS

We view our business in the following two operating segments:

· North America includes our operations associated with land-based and online wagering 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 are managed at the corporate level and not allocated to an 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. Restructuring charges are reflected within the segment where actions occurred. See Note 19.

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

Years Ended September 30,	2012		2011		2010
NORTH AMERICA
Revenues	$	1,644.1	$	1,480.3	$	1,428.4
Gaming operations		907.8		913.8		933.0
Product sales		648.2		566.2		495.4
Interactive		88.1		0.3		-
Gross profit		961.2		858.3		800.9
Gaming operations		541.2		542.6		541.1
Product sales		366.6		315.5		259.8
Interactive		53.4		0.2		-
Operating income		425.8		476.6		345.9
Depreciation and amortization		195.3		183.7		201.3
Long-lived assets		590.3		561.1		597.7
Additions to long-lived assets		146.2		164.3		180.3
Total assets		2,560.0		2,222.3		2,364.8

Years Ended September 30,	2012		2011		2010
INTERNATIONAL
Revenues	$	506.6	$	476.7	$	488.8
Gaming operations		132.2		122.7		111.2
Product sales		318.6		317.7		347.6
Interactive		55.8		36.3		30.0
Gross profit		276.4		280.1		286.4
Gaming operations		93.1		90.0		85.8
Product sales		155.7		171.7		184.8
Interactive		27.6		18.4		15.8
Operating income		103.6		138.4		170.2
Depreciation and amortization		40.3		32.9		21.0
Long-lived assets		79.4		101.5		103.3
Additions to long-lived assets		40.1		40.1		60.4
Total assets		812.7		807.8		766.1

Years Ended September 30,	2012			2011			2010
CORPORATE (unallocated)
Operating expenses	$	(107.7	)	$	(110.1	)	$	(91.3	)
Depreciation and amortization		4.7			9.6			14.5
Long-lived assets		79.4			59.9			87.8
Additions to long-lived assets		23.9			0.7			0.9
Total assets		912.4			1,124.3			876.1

Years Ended September 30,	2012		2011		2010
CONSOLIDATED
Revenues	$	2,150.7	$	1,957.0	$	1,917.2
Gaming operations		1,040.0		1,036.5		1,044.2
Product sales		966.8		883.9		843.0
Interactive		143.9		36.6		30.0
Gross profit		1,237.6		1,138.4		1,087.3
Gaming operations		634.3		632.6		626.9
Product sales		522.3		487.2		444.6
Interactive		81.0		18.6		15.8
Operating income		421.7		504.9		424.8
Depreciation and amortization		240.3		226.2		236.8
Long-lived assets		749.1		722.5		788.8
Additions to long-lived assets		210.2		205.1		241.6
Total assets		4,285.1		4,154.4		4,007.0

Geographical Information

Years Ended September 30,	2012		2011		2010
US	$	1,490.1	$	1,382.3	$	1,324.8
Non-US		660.6		574.7		592.4
Total revenues	$	2,150.7	$	1,957.0	$	1,917.2