DISCONTINUED OPERATIONS

12 Months Ended

Jun. 30, 2011

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

3.     DISCONTINUED OPERATIONS

The Company owned and operated the Rainbow Casino, a dockside riverboat casino in Vicksburg, Mississippi, which was sold on June 8, 2010. Under the terms of the agreement, the Company was paid approximately $80.0 million in an all-cash transaction. The following table summarizes the gain on sale of discontinued operations:

		Year Ended June 30,
		2010
		(in 000s)
Sale proceeds		$	80,000
Distributions to noncontrolling interest			(688	)
Assets held for sale			(45,733	)
Liabilities related to assets held for sale			1,161
Adjustments to proceeds for fees and expenses			(471	)
Gain on sale of discontinued operations before income taxes			34,269
	Income tax expense		(12,190	)
Gain on sale of discontinued operations		$	22,079

Per the terms of the sale agreement, the Company had certain post-closing adjustments during fiscal year 2011, which reduced its gain on the sale of the Rainbow Casino in fiscal year 2010 by approximately $0.4 million, net of income taxes.

The following table summarizes income from discontinued operations:

		Year Ended June 30,
		2010			2009
		(in 000s)
Revenues:
	Casino operations	$	34,336		$	39,669
Costs and expenses:
	Direct cost of casino operations		14,081			16,750
	Selling, general and administrative		6,821			7,864
	Depreciation and amortization		2,873			3,337
			23,775			27,951
Operating income			10,561			11,718
Other income (expense):
	Interest income		7			26
	Other, net		(25	)		13
Income from discontinued operations before income taxes			10,543			11,757
	Income tax expense		(3,362	)		(3,700	)
Income from discontinued operations			7,181			8,057
	Less income attributable to noncontrolling interests		1,006			1,187
Income from discontinued operations attributable to Bally Technologies, Inc.		$	6,175		$	6,870