4. ACCOUNTS AND NOTES RECEIVABLE

The Company has one portfolio segment, the gaming industry customer, and four classes of receivables including its trade receivables with a contract term less than one year, trade receivables with a contract term greater than one year, sales-type leasing arrangements, and notes receivable, which are related to development financing loans. Trade receivables with contract terms greater than one year relate to the sale of gaming equipment and systems transactions, and are generally collateralized by the related equipment sold, although the value of such equipment, if repossessed, may be less than the receivable balance outstanding. Sales-type leasing arrangements relate to gaming equipment and include options to purchase the gaming equipment at the end of the lease term at established prices. Customers with sales-type leasing arrangements typically have a long-standing credit history with the Company.

The Company’s accounts and notes receivable were as follows:

	Accounts and Notes Receivable as of September 30, 2014						Accounts and Notes Receivable as of June 30, 2014
	Ending Balance		Ending Balance Individually Evaluated for Impairment		Ending Balance Collectively Evaluated for Impairment		Ending Balance		Ending Balance Individually Evaluated for Impairment		Ending Balance Collectively Evaluated for Impairment
	(in 000s)
Contract term less than one year:
Trade and other receivables, current	$	217,041	$	12,049	$	204,992	$	224,580	$	8,963	$	215,617

Contract term greater than one year:
Trade receivables, current	77,290		58,141		19,149		90,663		72,685		17,978
Trade receivables, noncurrent	28,542		11,547		16,995		26,688		9,469		17,219
	105,832		69,688		36,144		117,351		82,154		35,197

Lease receivables, current	5,469		5,469		—		7,965		7,965		—
Lease receivables, noncurrent	2,321		2,321		—		12,403		12,403		—
	7,790		7,790		—		20,368		20,368		—

Notes receivable, current	6,592		6,592		—		5,717		5,717		—
Notes receivable, noncurrent	13,625		13,625		—		12,167		12,167		—
	20,217		20,217		—		17,884		17,884		—

Total current	306,392		82,251		224,141		328,925		95,330		233,595
Total noncurrent	44,488		27,493		16,995		51,258		34,039		17,219
Total	$	350,880	$	109,744	$	241,136	$	380,183	$	129,369	$	250,814

The activity related to the allowance for doubtful accounts for the quarter ended September 30, 2014 is summarized below:

	Allowance for Doubtful Accounts
	Beginning Balance as of June 30, 2014			Charge- offs		Recoveries		Provision			Ending Balance as of September 30, 2014			Ending Balance Individually Evaluated for Impairment			Ending Balance Collectively Evaluated for Impairment
	(in 000s)
Contract term less than one year:
Trade and other receivables, current	$	(4,971	)	$	314	$	—	$	(1,926	)	$	(6,583	)	$	(3,993	)	$	(2,590	)

Contract term greater than one year:
Trade receivables, current	(9,835		)	544		1,264		(1,931		)	(9,958		)	(8,809		)	(1,149		)
Trade receivables, noncurrent	(929		)	84		119		(183		)	(909		)	—			(909		)
	(10,764		)	628		1,383		(2,114		)	(10,867		)	(8,809		)	(2,058		)

Lease receivables, current	—			—		—		—			—			—			—
Lease receivables, noncurrent	—			—		—		—			—			—			—
	—			—		—		—			—			—			—

Notes receivable, current	—			—		—		—			—			—			—
Notes receivable, noncurrent	—			—		—		—			—			—			—
	—			—		—		—			—			—			—

Total current	(14,806		)	858		1,264		(3,857		)	(16,541		)	(12,802		)	(3,739		)
Total noncurrent	(929		)	84		119		(183		)	(909		)	—			(909		)
Total	$	(15,735	)	$	942	$	1,383	$	(4,040	)	$	(17,450	)	$	(12,802	)	$	(4,648	)

The activity related to the allowance for doubtful accounts for the quarter ended September 30, 2013 is summarized below:

	Allowance for Doubtful Accounts
	Beginning Balance as of June 30, 2013			Charge- offs		Recoveries		Provision			Ending Balance as of September 30, 2013			Ending Balance Individually Evaluated for Impairment			Ending Balance Collectively Evaluated for Impairment
	(in 000s)
Contract term less than one year:
Trade and other receivables, current	$	(4,505	)	$	24	$	—	$	321		$	(4,160	)	$	(1,224	)	$	(2,936	)

Contract term greater than one year:
Trade receivables, current	(10,308		)	3		560		(367		)	(10,112		)	(7,712		)	(2,400		)
Trade receivables, noncurrent	(1,764		)	10		—		(615		)	(2,369		)	(655		)	(1,714		)
	(12,072		)	13		560		(982		)	(12,481		)	(8,367		)	(4,114		)

Lease receivables, current	—			—		—		—			—			—			—
Lease receivables, noncurrent	—			—		—		—			—			—			—
	—			—		—		—			—			—			—

Notes receivable, current	—			—		—		—			—			—			—
Notes receivable, noncurrent	—			—		—		—			—			—			—
	—			—		—		—			—			—			—

Total current	(14,813		)	27		560		(46		)	(14.272		)	(8,936		)	(5,336		)
Total noncurrent	(1,764		)	10		—		(615		)	(2,369		)	(655		)	(1,714		)
Total	$	(16,577	)	$	37	$	560	$	(661	)	$	(16,641	)	$	(9,591	)	$	(7,050	)

Gaming is a highly regulated industry requiring customers to obtain a gaming operator’s license and verify with the applicable regulatory agency that they have the financial resources to operate a gaming establishment. Many of the Company’s customers, including new casinos that have opened in recent years, are owned by existing multi-property customers that have established a favorable payment history with the Company. Customer accounts typically include a mix of trade receivables balances with terms for periods of 30 to 120 days and financing receivables resulting from extended payment terms.

The Company monitors the credit quality of its accounts receivable by reviewing an aging of customer invoices. Invoices are considered past due if a scheduled payment is not received within agreed upon terms. The Company’s notes receivable are reviewed quarterly, at a minimum, for impairment. The Company also reviews a variety of other relevant qualitative information such as collection experience, economic conditions and specific customer financial conditions to evaluate credit risk in recording the allowance for doubtful accounts or as an indicator of an impaired loan.

The Company accrues interest, if applicable, on its accounts and notes receivables pursuant to the terms of the agreement. Interest is not accrued on past due accounts and notes receivable, or individual amounts that the Company has determined and specifically identified as not collectible.

The following summarizes the aging of past due receivables, excluding trade accounts receivable with a contract term less than one year, as of September 30, 2014:

	1 to 90 Days Past Due		91 to 180 Days Past Due		181 + Days Past Due		Total Past Due		Current		Total Receivable		Recorded Investment in Receivables on Nonaccrual Status		Recorded Investment 90 Days and Accruing
	(in 000s)
Trade receivables	$	5,420	$	2,263	$	7,566	$	15,249	$	90,583	$	105,832	$	15,249	$	—
Lease receivables	—		—		—		—		7,790		7,790		—		—
Notes receivable	—		—		—		—		20,217		20,217		—		—
Total	$	5,420	$	2,263	$	7,566	$	15,249	$	118,590	$	133,839	$	15,249	$	—

The following summarizes the aging of past due receivables, excluding trade accounts receivable with a contract term less than one year, as of June 30, 2014:

	1 to 90 Days Past Due		91 to 180 Days Past Due		181 + Days Past Due		Total Past Due		Current		Total Receivable		Recorded Investment in Receivables on Nonaccrual Status		Recorded Investment 90 Days and Accruing
	(in 000s)
Trade receivables	$	7,862	$	2,178	$	8,102	$	18,142	$	99,209	$	117,351	$	18,142	$	—
Lease receivables	—		—		—		—		20,368		20,368		—		—
Notes receivable	—		—		—		—		17,884		17,884		—		—
Total	$	7,862	$	2,178	$	8,102	$	18,142	$	137,461	$	155,603	$	18,142	$	—

The aging of customer invoices and note balances are based on contractually agreed upon payment terms, which in certain rare circumstances have been modified from the original financing terms. The modification of original financing terms are infrequent and generally do not represent a concession as they result only in a delay of payment that is typically insignificant to total trade, lease and notes receivable balances.

The Company has provided development financing to certain customers in the form of notes receivable. There were no significant modifications of notes receivable during the periods presented.

Impairment is recognized when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of a note arrangement. There were no recorded investments in impaired loans as of September 30, 2014 and June 30, 2014.

The fair value of accounts and notes receivable, net, is estimated by discounting expected future cash flows using current interest rates at which similar loans would be made to borrowers, with similar credit ratings and remaining maturities. As of September 30, 2014 and June 30, 2014, the fair value of the accounts and notes receivable, net, approximated the carrying value.