SEGMENT AND GEOGRAPHICAL INFORMATION

12 Months Ended

Jun. 30, 2014

SEGMENT AND GEOGRAPHICAL INFORMATION

SEGMENT AND GEOGRAPHICAL INFORMATION

14.   SEGMENT AND GEOGRAPHICAL INFORMATION

In the fourth quarter of fiscal year 2014, the Company revised its business and operating segments to reflect the reorganization of its business following the Acquisition and the financial information regularly reviewed by its chief executive officer. Based on that review, the Company concluded that it has four reportable segments. This change had no impact on the Company's consolidated financial statements for any periods. Business segment information for fiscal years 2013 and 2012 has been adjusted to reflect this change.

The Company operates in legalized casino gaming markets across the globe and provide state-of-the-art, value-add products in four distinct segments: (a) EGMs, which include the sale of gaming devices and related equipment, parts and conversion kits, (b) Gaming Operations, which include the operation of wide-area progressives, video lottery and centrally determined systems and the rental of gaming devices and content, (c) casino-management systems, which include the sale and support of computerized monitoring systems and related recurring hardware and software maintenance revenue, and (d) table game products, which include monthly royalties from proprietary table games as well as sale and lease of table utility products, including automatic card shufflers, deck checkers and roulette chip sorters. Our Chief Executive Officer is our Chief Operating Decision Maker.

The following is a summary of revenues and gross margin for each segment:

	Year Ended June 30,
	2014(1)		2013		2012
	(in 000s)
Revenues:
EGMs	$	381,660	$	339,842	$	310,651
Gaming Operations		405,433		404,978		357,417
Systems		327,821		252,219		211,691
Table Products		100,178		—		—
Total revenues	$	1,215,092	$	997,039	$	879,759
Gross Margin(2):
EGMs	$	190,534	$	170,629	$	139,845
Gaming Operations		266,651		282,790		257,737
Systems		236,054		192,627		155,861
Table Products		70,577		—		—
Total gross margin	$	763,816	$	646,046	$	553,443

(1)

Results for fiscal year 2014 include the Acquisition beginning on November 25, 2013.

(2)

Gross Margin excludes amortization related to intangible assets, which are included in depreciation and amortization.

Our CODM does not receive a report with a measure of total assets for each reportable segment as this information is not available or necessary for the CODM's evaluation of segment performance. Therefore, the Company has not provided asset and capital expenditure information by reportable segment.

EGMs and systems revenues and costs are included in Gaming equipment and systems revenues. Gaming Operations revenues and costs are included in Product lease, operation and royalty revenues.

Table Products revenues include $34.1 million and $66.1 million included in Gaming equipment and systems revenues and Product lease, operation and royalty revenues, respectively, for the year ended June 30, 2014. Table products gross margin includes $18.7 million and $51.9 million included in Gaming equipment and systems gross margin and Product lease, operation and royalty gross margin, respectively, for the year ended June 30, 2014.

The Company has operations based primarily in the United States as well as significant sales and distribution offices based in Australia, Macau and Europe. The table below presents information as to the Company's revenues, operating income and identifiable assets by geographic region which is determined by country of destination:

	Year Ended June 30,
	2014(1)		2013		2012
	(in 000s)
Revenues:
United States and Canada	$	983,322	$	826,975	$	716,075
International		231,770		170,064		163,684
Total revenues	$	1,215,092	$	997,039	$	879,759
Operating income:
United States and Canada	$	214,145	$	214,527	$	159,324
International		13,089		20,983		20,119
Total operating income	$	227,234	$	235,510	$	179,443
Identifiable assets:
United States and Canada	$	1,535,578	$	742,900	$	730,758
International		983,233		236,365		239,709
Total identifiable assets	$	2,518,811	$	979,265	$	970,467

(1)

Results for fiscal year 2014 include the Acquisition beginning on November 25, 2013.