Page 61 - SIGA Annual Report 2014

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NOTES TO
THE FINANCIAL
STATEMENTS
YEAR ENDED
MARCH 31, 2014
61
22. SEGMENTED INFORMATION
SIGA operates in three segments – table operations, slot operations and ancillary operations. The following table shows key
amounts by segment.
Elimination of
Total
Slot
Table
Ancillary
Intercompany
Operations
Operations
Operations
Transactions
2014
2013
Revenues
$ 222,996,915 $ 9,723,549 $ 21,376,994 $ (3,324,726) $ 250,772,732 $ 268,567,067
Expenses
128,744,442
13,030,406
32,107,273
(3,324,726)
170,557,395
182,110,472
Profit (loss) before
the following:
$ 94,252,473
$ (3,306,857) $ (10,730,279) $
– $ 80,215,337 $ 86,456,595
Unrealized gain on interest rate swaps (Note 11)
2,115,496
317,744
Total net income and comprehensive income for the year before distribution
to Saskatchewan Liquor and Gaming Authority (Note 1)
$ 82,330,833 $ 86,774,339
The accounting policies of the reportable segments are the same as SIGA’s accounting policies described in Note 3. Segment profit
represents the profit earned by each segment without allocation of unrealized gain (loss) on interest rate swaps and distribution to
Saskatchewan Liquor and Gaming Authority. This is the measure reported to the chief operating decision maker for the purposes of
resource allocation and assessment of segment performance.
23. COMMITMENTS AND CONTINGENCIES
Operating Leases
SIGA has obligations under operating leases for buildings, equipment and vehicles. The minimum lease payments required under
these operating leases are as follows:
March 31, 2014
March 31, 2013
Less than one year
$ 5,399,628
$ 5,512,325
Between one and five years
13,449,583
17,883,425
More than five years
2,189,781
3,851,072
$ 21,038,992
$ 27,246,822
The above commitments include amounts committed to related parties of $15,877,766 for years 2015 through 2019 and
$2,189,781 for the years beyond 2019.
During the year ended March 31, 2014, an amount of $6,157,624 (2013 – $6,039,887) was recognized as an expense in
comprehensive income in respect of operating leases.
Capital Commitment – Slot Machines
The Casino Operating Agreement requires SLGA to supply slot machines and the slot management system to SIGA for use
in its casinos and for SIGA to reimburse to SLGA the cost of these machines over the estimated useful life of the equipment.
Included in expenses is $8,921,102 (2013 – $8,969,259) for reimbursement of the purchase of slot machines and the slot machine
management system. SIGA estimates total costs over the next five years, based on the machines currently in use, as follows:
2015
$ 5,582,671
2016
4,795,171
2017
4,086,350
2018
3,438,790
2019
2,797,762