Note 4 - Receivables and Investments in Sales-Type Leases

12 Months Ended

Oct. 31, 2011

Financing Receivables [Text Block]

4. RECEIVABLES AND INVESTMENTS IN SALES-TYPE LEASES

	October 31,
	2011			2010
	(In thousands)
Accounts receivable, net:
Trade receivables	$	43,317		$	41,642
Less: allowance for bad debts		(402	)		(466	)
Total	$	42,915		$	41,176

	October 31,
	2011			2010
	(In thousands)
Investment in sales-type leases and notes receivable, net:
Minimum sales-type lease payments	$	5,679		$	3,367
Notes receivable - table game lifetime licenses		95			264
Sub-total sales-type leases and notes receivable		5,774			3,631
Less: interest sales-type leases		(56	)		(217	)
Less: deferred service revenue		(161	)		(391	)
Less: allowance for bad debts		(49	)		(113	)
Investment in sales-type leases and notes receivable, net		5,508			2,910
Less: current portion sales-type leases		(1,738	)		(1,638	)
Less: current portion notes receivable - table game licenses		(66	)		(168	)
Long-term portion investment in sales-type leases and notes receivable	$	3,704		$	1,104

We maintain allowances for bad debts for estimated credit losses that result from the inability of our customers to make required payments. The allowances for bad debts are estimated based on historical experience and specific customer collection issues.

Sales-type leases are interest-bearing at fixed market interest rates, require monthly installment payments over periods ranging generally from 24 to 36 months and contain bargain purchase options. Notes receivable include financing arrangements for sales of lifetime licenses. Amounts are interest-bearing at fixed market interest rates and require monthly installments ranging generally from 24 to 36 months.

 Future minimum lease payments (principal, deferred revenue and interest) to be received for both sales-type leases and notes receivable are as follows:

	October 31,
	2012			2013			2014		Total
	(In thousands)
Investment in sales-type leases
and notes receivable, net:
Future sales-type lease payments	$	1,978		$	2,626		$	1,075	$	5,679
Notes receivable - table game licenses		72			23			-		95
Sub-total sales-type leases
and notes receivable		2,050			2,649			1,075		5,774
Less: interest sales-type leases		(53	)		(3	)		-		(56	)
Less: deferred service revenue		(149	)		(12	)		-		(161	)
Less: allowance for bad debts		(44	)		(5	)		-		(49	)
Investment in sales-type leases
and notes receivable, net	$	1,804		$	2,629		$	1,075	$	5,508