Note 13 - Operating Segments
 12 Months Ended
Oct. 31, 2012
Segment Reporting Disclosure [Text Block]
13. OPERATING SEGMENTS

We report segment information based on the “management approach.” The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments.

See Note 1 for a detailed discussion of our four segments. Each segment’s activities include the design, development, acquisition, manufacturing, marketing, distribution, installation and servicing of its product lines. We evaluate the performance of our operating segments based on net revenues, gross margin and operating income.

Segment revenues include leasing, licensing, or selling of products within each reportable segment. Segment operating income (loss) includes net revenues attributable to third parties and expenses directly and indirectly associated with the product lines included in each segment. Cost of sales and service and cost of leases and royalties primarily include the cost of products sold, depreciation of leased assets, amortization of product-related intangible assets, service, manufacturing overhead, shipping and installation.  Indirect operating expenses include other costs directly identified with each segment, such as research and development, product approval costs, product-related litigation expenses, amortization of patents and other product-related intellectual property, sales commissions and other directly-allocable sales expenses.  Capital expenditures include amounts reported in our consolidated statements of cash flows for purchases of leased products, property and equipment and intangible assets plus the financed or non-cash portion of these purchases which is excluded from cash flows.

Operating income (loss) for each segment excludes other income and expense, income taxes and certain expenses that are managed outside of the operating segments.

The amounts classified as unallocated corporate expenses consist primarily of costs related to overall corporate management and support functions. These include costs related to executive management, accounting and finance, general sales support, legal and compliance costs, office expenses and other amounts for which allocation to specific segments is not practicable. Segment assets exclude corporate assets.

Assets are allocated to each segment according to the benefits received by the respective segment.  Unallocated corporate assets are primarily comprised of cash and cash equivalents, property and equipment including land, buildings and leasehold improvements, prepaid income taxes, and deferred financing costs.

The following provides financial information concerning our reportable segments of our continuing operations for the years ended October 31:

   
Year Ended October31,
 
   
2012
   
2011
   
2010
 
   
(In thousands)
 
Revenue:                  
Utility
  $ 93,965     $ 82,942     $ 77,357  
Proprietary Table Games
    52,446       43,986       40,430  
Electronic Table Systems
    31,042       33,937       42,398  
Electronic Gaming Machines
    81,594       66,906       41,117  
Unallocated Corporate
    -       -       -  
    $ 259,047     $ 227,771     $ 201,302  
Gross profit (loss):                        
Utility
  $ 57,984     $ 49,973     $ 47,024  
Proprietary Table Games
    43,429       35,370       32,356  
Electronic Table Systems
    14,472       14,564       21,580  
Electronic Gaming Machines
    49,253       42,648       23,010  
Unallocated Corporate
    -       -       -  
    $ 165,138     $ 142,555     $ 123,970  
Operating income (loss):                        
Utility
  $ 49,553     $ 43,289     $ 40,233  
Proprietary Table Games
    33,270       30,986       27,880  
Electronic Table Systems
    723       2,301       11,802  
Electronic Gaming Machines
    35,360       30,462       14,690  
Unallocated Corporate
    (63,387 )     (60,720 )     (59,263 )
    $ 55,519     $ 46,318     $ 35,342  
Depreciation and amortization:                        
Utility
  $ 7,510     $ 8,312     $ 7,924  
Proprietary Table Games
    6,282       5,653       6,390  
Electronic Table Systems
    6,592       7,000       5,599  
Electronic Gaming Machines
    1,316       357       144  
Unallocated Corporate
    3,504       3,813       2,811  
    $ 25,204     $ 25,135     $ 22,868  
Capital expenditures:                        
Utility
  $ 5,035     $ 7,917     $ 12,426  
Proprietary Table Games
    4,495       7,749       1,492  
Electronic Table Systems
    5,624       6,802       8,470  
Electronic Gaming Machines
    5,455       1,266       -  
Unallocated Corporate
    5,845       3,210       5,265  
    $ 26,454     $ 26,944     $ 27,653  
Assets, end of year:                        
Utility
  $ 96,222     $ 101,826     $ 109,549  
Proprietary Table Games
    58,556       55,639       52,667  
Electronic Table Systems
    62,783       70,051       71,081  
Electronic Gaming Machines
    65,311       44,234       37,773  
Unallocated Corporate
    48,179       41,137       32,890  
    $ 331,051     $ 312,887     $ 303,960  

REVENUE BY GEOGRAPHIC AREA

Revenues by geographic area are determined based on the location of our customers. For fiscal 2012, 2011 and 2010, sales to customers outside the United States accounted for 56%, 56% and 51% of consolidated revenue, respectively. No individual customer accounted for more than 10% of consolidated revenue.

The following provides financial information concerning our operations by geographic area for the years ended October 31:

    2012     2011     2010  
    (In thousands)  
Revenue:
                                   
United States
  $ 114,662       44.3 %   $ 100,959       44.3 %   $ 98,886       49.1 %
Canada
    7,888       3.1 %     7,733       3.4 %     8,032       4.0 %
Other Americas
    4,514       1.7 %     5,384       2.4 %     3,443       1.7 %
Europe
    10,329       4.0 %     9,995       4.4 %     9,114       4.5 %
Australia
    91,993       35.5 %     81,088       35.6 %     61,801       30.7 %
Asia
    28,133       10.9 %     20,413       9.0 %     17,930       9.0 %
Other
    1,528       0.5 %     2,199       0.9 %     2,096       1.0 %
      259,047       100.0 %   $ 227,771       100.0 %   $ 201,302       100.0 %
Long-lived assets, end of year:
                                               
United States
  $ 36,751       59.9 %   $ 35,776       66.0 %   $ 35,942       73.5 %
Other Americas
    2,302       3.7 %     1,204       2.2 %     255       0.5 %
Europe
    2,535       4.1 %     2,956       5.5 %     2,954       6.1 %
Australia
    12,182       19.8 %     11,304       20.8 %     7,847       16.0 %
Asia
    7,484       12.2 %     2,776       5.1 %     1,786       3.7 %
Other
    191       0.3 %     200       0.4 %     110       0.2 %
    $ 61,445       100.0 %   $ 54,216       100.0 %   $ 48,894       100.0 %

Long-lived assets for fiscal 2012, 2011 and 2010 exclude deferred income taxes, goodwill and other intangible assets.