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Revenue Recognition
9 Months Ended
Jan. 31, 2012
Revenue Recognition Disclosure [Abstract]  
Revenue Recognition
Revenue Recognition
 
Revenues are derived primarily from the sales of complete wagering systems, lottery terminals, the OpenElect® and PBC voting systems, other software and software support services. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable. Product is considered delivered to the customer once it has been shipped and title and risk of loss have been transferred. For most of the Company's product sales, these criteria are met at the time the product is shipped. Certain revenues continue to be recognized on the percentage-of-completion method for wagering and lottery systems. The Company recognizes revenue from the sale of hardware products and software bundled with hardware that is essential to the functionality of the hardware in accordance with general revenue recognition guidance.
 
Revenue Recognition for Arrangements with Multiple Deliverables
 
For multi-element arrangements that include hardware products containing software essential to the hardware product's functionality, undelivered software elements that relate to the hardware product's essential software, and undelivered non-software services, the Company allocates revenue to all deliverables based on their relative selling prices. In such circumstances, the Company uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price (“TPE”), and (iii) best estimate of the selling price (“ESP”). VSOE generally exists only when the Company sells the deliverable separately and VSOE is the price actually charged by the Company for that deliverable. TPE is determined based on competitor prices for similar deliverables when sold separately. ESPs reflect the Company's best estimates of what the selling prices of elements would be if they were sold regularly on a standalone basis.
 
The Company identified up to three deliverables in arrangements involving the sale of hardware with software essential to the functionality of the hardware. The first deliverable is the hardware and software essential to the functionality of the hardware device delivered at the time of sale. The second deliverable in connection with the hardware is the onsite training and support. The third deliverable is the annual software license for ongoing software support services. The Company allocates revenue to these deliverables using the relative selling price method. Because the Company has not established VSOE or TPE for the hardware, the allocation of revenue has been based on the Company's ESPs. For onsite training in connection with the hardware and software support services under the annual software license, the allocation of revenue has been based on the Company's VSOE. Amounts allocated to the delivered hardware and the related essential software are recognized at the time of sale provided the other conditions for revenue recognition have been met. Amounts allocated to the onsite training and software support services are deferred and recognized at the time of delivery of the service. Amounts allocated to the annual software license and software support services are deferred and recognized on a straight-line basis over the service period, which is typically one year. Cost of sales related to delivered hardware and related essential software, including estimated warranty costs, are recognized at the time of sale. Costs incurred to provide onsite services and maintenance support under the annual software license are recognized as the costs of services are incurred.
 
The Company's process for determining ESPs for deliverables without VSOE or TPE considers multiple factors that may vary depending on the unique facts and circumstances related to each deliverable. Key factors considered by the Company in developing the ESPs for the hardware include costs of manufacture and what a customer would reasonably pay based on the features being offered, trends in the market place, size of territory, and competitive prices. If the facts and circumstances underlying the factors change, including the estimated or actual costs incurred to provide the hardware with essential software, or should future facts and circumstances lead the Company to consider additional factors, the Company's ESP for the hardware with essential software related to future sales could change.