International Game Technology Reports Record Financial Results for the Second Quarter of Fiscal 2001

Apr 19, 2001, 01:00 ET from International Game Technology

    RENO, Nev., April 19 /PRNewswire/ -- International Game Technology
 (NYSE:   IGT) today  announced results for the quarter and six months ended
 March 31, 2001.  Net income for the quarter totaled $53.6 million or $0.70 per
 diluted share on total revenues of $346.9 million, all new record quarterly
 highs.  In the second quarter of the prior fiscal year, the Company reported
 net income of $25.7 million or  $0.34 per diluted share on total revenues of
 $218.1 million, excluding one-time events discussed below.
     Fiscal year-to-date net income totaled $101.7 million or a record
 $1.34 per diluted share on total revenues of $648.6 million, versus
 $52.0 million or $0.64 per diluted share on revenues of $424.6 million during
 the first six months of fiscal 2000, also excluding one-time events.
     The prior year results were affected by several one-time items.  Net
 income for the second quarter of fiscal 2000 included  a loss of $1.4 million
 ($900,000, net of tax) on the sale of the gaming systems business unit
 previously purchased as part of the acquisition of Olympic Amusements Pty.
 Limited in March of 1998.  The prior year-to-date results also benefited from
 the net effect of a legal settlement of $27.0 million ($17.3 million, net of
 tax) partially offset by restructuring charges of $1.8 million  ($1.2 million,
 net of tax) related to our Australian operations.
     Product sales revenue for the current quarter and year-to-date periods
 totaled $221.2 million and $413.5 million, both new records, compared to
 $118.7 million and $228.4 million for the year earlier periods.  Shipments for
 the quarter and year-to-date periods were 30,400 and 60,400 units, versus
 22,700 and 42,300 in  the comparable prior year periods.
     Domestically, IGT shipped 16,500 machines during the quarter just ended,
 including 5,700 machines shipped to various Native American venues in
 California, versus 7,600 units with no California sales in the corresponding
 period of fiscal 2000.  Sales to Native American properties accounted for
 7,700 machines during the current quarter, compared to 1,700 units in the year
 earlier period.  Domestic shipments year-to-date totaled 31,500 versus
 16,000 for the same period last year.  Increased shipments for both the
 quarter and year-to-date periods were attributable  to the addition of the
 California Native American market as discussed above, as well as strong
 replacement demand.  Replacement demand continues to be driven by the
 combination of an aging installed base of gaming machines, desirable new video
 reel games, and the appeal of the new ticket-in/ticket-out technology which
 offers an alternative payout and vouchering solution to casino operators.
 IGT's EZ Pay(TM) ticket system is proving very popular with the gaming public.
 Over 15,000 IGT machines were operating on various versions of ticket systems
 including EZ Pay at quarter-end.
     Internationally, IGT sold 13,800 units during the quarter versus 15,100 in
 the prior year period.  IGT Australia continued its recent improved
 performance, shipping 2,100 and 5,400 units during the current quarter and
 year-to-date periods versus 1,000 and 2,800 units in the comparable year
 earlier periods.  For the first six months of fiscal 2001 and 2000,
 international sales totaled 28,900 and 26,300 units.  Barcrest UK shipped
 9,500 units during the current quarter compared to 11,900 units in the second
 quarter of fiscal 2000.  The second quarter of the prior year was a record
 quarter for Barcrest UK with over 3,300 units shipped to  the Spanish market.
     Gross profit margin on product sales was 39% and 40% for the second
 quarter and year-to-date periods of fiscal 2001 versus 37% for both
 corresponding prior year periods.  The current year improvements reflect a
 higher mix of domestic units and improved  operating efficiencies.
     Gaming operations revenues totaled $125.8 million and $235.1 million for
 the quarter and six months compared to $99.4 million  and $196.2 million for
 the same prior year periods.  This growth represents an increase of
 27% quarter-over-quarter, and 20% year-over-year.  The rapid rollout and
 excellent player acceptance of the Company's new Jeopardy!(R) video and The
 Addams Family(TM) themes contributed significantly to overall growth in gaming
 operations revenue.  Another major factor in game operations growth is the
 continued rollout of many of IGT's new and legacy themes into the expanding
 California market.  During the second quarter, the MegaJackpots(TM) installed
 base in California doubled in size from 600 games to nearly 1,200.  The total
 installed base of MegaJackpots(TM) machines, including joint venture units,
 grew to 22,600 at the end of the second quarter of fiscal 2001, an increase of
 1,700 and 3,400 units for the current quarter and year-to-date periods.
 "Trends remain strong in our gaming operations segment," commented IGT CEO Tom
 Baker, "and the rollout of our much anticipated Austin Powers(TM) game should
 support this momentum."  The Austin Powers(TM) game was introduced during the
 second week of April with a pre-rollout backlog of over 1,300 machines.
     Gross profit from gaming operations before the inclusion of our joint
 venture was $49.1 million for the current quarter and $92.1 million
 year-to-date compared to $41.0 million and $82.9 million for the corresponding
 periods of fiscal 2000.  The related gross profit margins were 54% and 56% for
 the second quarter of fiscal 2001 and 2000.  For the first six months of
 fiscal 2001, the gross profit margin excluding joint venture results was
 55% compared to 56% for the year earlier period.  Lower interest rates in the
 current period, which increases the cost of funding jackpots, impacted these
 margins.  Joint venture revenues, which for accounting purposes are reported
 net of expenses, grew to $35.3 million and $67.6 million for the quarter and
 year-to-date periods versus $25.5 million and $47.1 million for the comparable
 periods of fiscal 2000.
     Operating margins improved to 29% from 25% quarter-over-quarter, and to
 29% from 24% year-over-year.  These improvements were due to markedly higher
 volumes and improved operating efficiencies as noted above, partially offset
 by higher selling, general, and administrative costs resulting from increased
 legal and compliance costs and variable commission and incentive costs related
 to higher sales volumes.  Bad debt expense increased primarily from the
 overall increased sales.
     Other income and expense resulted in a net expense in the current quarter
 of $14.5 million versus $15.5 million for the same quarter of last year.  For
 the first six months of fiscal 2001, net other expense totaled $26.7 million
 versus net other income of $1.1 million in the comparable year earlier period.
 The fiscal 2000 period included a legal settlement received of $27.0 million
 ($17.3 million, net of tax).
     A conference call will be broadcast live over the Internet at 11:00 a.m.
 Pacific Daylight Time on Thursday, April 19, 2001.  Simply log on to the
 Internet at the following address to access  the call:
 
     What:    Conference Call following International Game
              Technology's Second Quarter Fiscal Year 2001 Earnings Release
 
     When:   Thursday, April 19, 2001 at 11:00 a.m. (Pacific Daylight Time)
 
     Where:   http://www.videonewswire.com/IGT/041901/
 
     How:     Live over the Internet -- Simply log on to the web address above
 
     Contact: Robert McIver 775-448-0110
 
     Minimum Requirements to listen to broadcast: The RealPlayer software,
 downloadable free from www.real.com/products/player/index.html, and at least a
 14.4Kbps connection to the Internet.  If you experience problems listening to
 the broadcast, send an email to webmaster@vdat.com.
     If you are unable to participate during the live webcast, the call will be
 archived on the Web site www.igt.com.  To access the replay, click on IGT
 Investors, FAQ page.  The call will also be archived at
 http://www.prnewswire.com.
     Interested parties not having access to the Internet may listen to a taped
 replay of the entire conference call commencing at approximately 1:30 p.m.
 (Pacific Daylight Time) on Thursday, April 19, 2001.  This replay will run
 through Thursday, April 26, 2001.  The access numbers are as follows:
 
     Domestic callers dial 888-296-6945 (no reservation number required)
     International callers dial 402-998-0535 (no reservation number required)
 
     Statements in this release which are not historical facts, including
 statements that trends in our gaming operations remain strong and should
 support the rollout of new games, the continuation of strong demand for
 replacement machines, the acceptance and gaining momentum for ticket-
 in/ticket-out and the recent improvement of its Australian operations are
 "forward-looking" statements under the Private Securities Litigation Reform
 Act of 1995.  These matters involve risks and uncertainties, including changes
 in demand for the Company's products because of a reduction in the growth of
 markets or changes in the popularity of its products, a decrease in the
 popularity of its wide area progressive systems, the risks of conducting
 international operations, the adoption of new unfavorable gaming laws or laws
 applicable to gaming machine manufacturers and uncertainties generally
 associated with the development and manufacturing of gaming machines and
 systems.  Historical results achieved are not necessarily indicative of future
 prospects of the Company.  More information on factors that could affect IGT's
 business and its financial results are included in its Annual Report on Form
 10-K and other public filings made with the Securities and Exchange
 Commission.
     IGT is a world leader in the design, development and  manufacture of
 microprocessor-based gaming products and software systems in all jurisdictions
 where gaming is legal.  For more information on International Game Technology,
 visit our website at www.igt.com.
 
     For further information please contact:  Maureen Mullarkey (775) 448-0127
 or Robert McIver (775) 448-0110, both of IGT.
 
 
     IGT Fiscal Year 2001
     Statements of Income
 
                               Three Months Ended           Six Months Ended
                           March 31,      April 1,     March 31,     April 1,
                             2001           2000         2001          2000
     (in thousands, except
      per share amounts)
 
     Revenues
      Product sales        $221,158      $118,656     $413,508      $228,416
      Gaming operations     125,750        99,397      235,131       196,154
      Total revenues        346,908       218,053      648,639       424,570
 
     Costs and expenses
      Cost of product
       sales                134,700        75,283      249,903       143,483
      Cost of gaming
       operations            41,304        32,861       75,360        66,173
      Selling, general, and
       administrative        47,247        35,740       86,845        68,709
      Depreciation and
       amortization           4,676         5,252        9,545        10,648
      Research and
       development           15,478        13,318       29,564        26,707
      Provision for
       bad debts              4,553         1,436       10,305         3,275
      Impairment of assets
       and restructuring       (600)           --       (1,100)        1,779
      Total costs and
       expenses             247,358       163,890      460,422       320,774
 
     Income from
      operations             99,550        54,163      188,217       103,796
 
     Other income (expense)
      Interest income        12,072        13,001       24,417        27,105
      Interest expense      (25,379)      (25,621)     (50,484)      (50,914)
      Gain (loss) on
       sale of assets           356          (762)         465          (771)
      Other                  (1,590)       (2,094)      (1,113)       25,725
      Other income
      (expense), net        (14,541)      (15,476)     (26,715)        1,145
 
     Income before
      income taxes           85,009        38,687      161,502       104,941
 
     Provision for
      income taxes           31,453        13,927       59,755        37,779
 
     Net income             $53,556       $24,760     $101,747       $67,162
 
     Basic earnings
      per share               $0.73         $0.33        $1.39         $0.83
 
     Diluted earnings
      per share               $0.70         $0.33        $1.34         $0.82
 
     Weighted average common
     shares outstanding      73,512        75,247       73,136        80,824
 
     Weighted average
      common and potential
      shares outstanding     76,414        76,048       76,009        81,614
 
 
     IGT Fiscal Year 2001
     Condensed Balance Sheets
 
                                                     March 31,   September 30,
                                                       2001           2000
      (Dollars in thousands)
 
     Assets
      Current assets
       Cash and cash equivalents                     $214,773       $244,907
       Investment securities, at market value          13,357         21,473
       Accounts receivable                            248,152        219,948
       Current maturities of long-term
        notes and contracts receivable                 91,608         76,320
       Inventories                                    186,236        146,989
       Investments to fund liabilities to
        jackpot winners                                28,481         27,939
       Deferred income taxes                           32,969         29,086
       Prepaid expenses and other                      59,862         47,564
          Total current assets                        875,438        814,226
 
     Long-term notes and contracts receivable          94,763         76,888
 
     Property, plant and equipment, at cost           332,681        310,206
       Less accumulated depreciation and
        amortization                                 (153,143)      (143,297)
       Property, plant and equipment, net             179,538        166,909
 
     Investments to fund liabilities to
      jackpot winners                                 231,471        229,726
 
     Intangible assets, net of amortization           174,026        143,738
 
     Other assets                                     236,329        192,229
        Total Assets                               $1,791,565     $1,623,716
 
     Liabilities and Stockholders' Equity
      Current liabilities
       Current maturities of long-term
        notes payable and capital
        lease obligations                              $4,618         $4,621
       Accounts payable                                71,339         76,387
       Jackpot liabilities                             75,118         55,942
       Accrued employee benefit plan
        liabilities                                    22,541         31,425
       Accrued interest                                31,257         31,369
       Other accrued liabilities                       86,268         59,249
          Total current liabilities                   291,141        258,993
 
     Long-term notes payable and
      Capital lease obligations,
      net of current maturities                       992,078        991,507
 
     Long-term jackpot liabilities                    256,558        267,985
 
     Other liabilities                                 18,143          8,646
        Total Liabilities                           1,557,920      1,527,131
 
     Stockholders' equity
       Common stock                                        97             96
       Additional paid-in capital                     312,785        278,825
       Retained earnings                            1,144,927      1,043,184
       Treasury stock                              (1,215,707)    (1,215,707)
       Accumulated other comprehensive
        loss                                           (8,457)        (9,813)
         Total stockholders' equity                   233,645         96,585
         Total Liabilities and
          Stockholders' Equity                     $1,791,565     $1,623,716
 
 

SOURCE International Game Technology
    RENO, Nev., April 19 /PRNewswire/ -- International Game Technology
 (NYSE:   IGT) today  announced results for the quarter and six months ended
 March 31, 2001.  Net income for the quarter totaled $53.6 million or $0.70 per
 diluted share on total revenues of $346.9 million, all new record quarterly
 highs.  In the second quarter of the prior fiscal year, the Company reported
 net income of $25.7 million or  $0.34 per diluted share on total revenues of
 $218.1 million, excluding one-time events discussed below.
     Fiscal year-to-date net income totaled $101.7 million or a record
 $1.34 per diluted share on total revenues of $648.6 million, versus
 $52.0 million or $0.64 per diluted share on revenues of $424.6 million during
 the first six months of fiscal 2000, also excluding one-time events.
     The prior year results were affected by several one-time items.  Net
 income for the second quarter of fiscal 2000 included  a loss of $1.4 million
 ($900,000, net of tax) on the sale of the gaming systems business unit
 previously purchased as part of the acquisition of Olympic Amusements Pty.
 Limited in March of 1998.  The prior year-to-date results also benefited from
 the net effect of a legal settlement of $27.0 million ($17.3 million, net of
 tax) partially offset by restructuring charges of $1.8 million  ($1.2 million,
 net of tax) related to our Australian operations.
     Product sales revenue for the current quarter and year-to-date periods
 totaled $221.2 million and $413.5 million, both new records, compared to
 $118.7 million and $228.4 million for the year earlier periods.  Shipments for
 the quarter and year-to-date periods were 30,400 and 60,400 units, versus
 22,700 and 42,300 in  the comparable prior year periods.
     Domestically, IGT shipped 16,500 machines during the quarter just ended,
 including 5,700 machines shipped to various Native American venues in
 California, versus 7,600 units with no California sales in the corresponding
 period of fiscal 2000.  Sales to Native American properties accounted for
 7,700 machines during the current quarter, compared to 1,700 units in the year
 earlier period.  Domestic shipments year-to-date totaled 31,500 versus
 16,000 for the same period last year.  Increased shipments for both the
 quarter and year-to-date periods were attributable  to the addition of the
 California Native American market as discussed above, as well as strong
 replacement demand.  Replacement demand continues to be driven by the
 combination of an aging installed base of gaming machines, desirable new video
 reel games, and the appeal of the new ticket-in/ticket-out technology which
 offers an alternative payout and vouchering solution to casino operators.
 IGT's EZ Pay(TM) ticket system is proving very popular with the gaming public.
 Over 15,000 IGT machines were operating on various versions of ticket systems
 including EZ Pay at quarter-end.
     Internationally, IGT sold 13,800 units during the quarter versus 15,100 in
 the prior year period.  IGT Australia continued its recent improved
 performance, shipping 2,100 and 5,400 units during the current quarter and
 year-to-date periods versus 1,000 and 2,800 units in the comparable year
 earlier periods.  For the first six months of fiscal 2001 and 2000,
 international sales totaled 28,900 and 26,300 units.  Barcrest UK shipped
 9,500 units during the current quarter compared to 11,900 units in the second
 quarter of fiscal 2000.  The second quarter of the prior year was a record
 quarter for Barcrest UK with over 3,300 units shipped to  the Spanish market.
     Gross profit margin on product sales was 39% and 40% for the second
 quarter and year-to-date periods of fiscal 2001 versus 37% for both
 corresponding prior year periods.  The current year improvements reflect a
 higher mix of domestic units and improved  operating efficiencies.
     Gaming operations revenues totaled $125.8 million and $235.1 million for
 the quarter and six months compared to $99.4 million  and $196.2 million for
 the same prior year periods.  This growth represents an increase of
 27% quarter-over-quarter, and 20% year-over-year.  The rapid rollout and
 excellent player acceptance of the Company's new Jeopardy!(R) video and The
 Addams Family(TM) themes contributed significantly to overall growth in gaming
 operations revenue.  Another major factor in game operations growth is the
 continued rollout of many of IGT's new and legacy themes into the expanding
 California market.  During the second quarter, the MegaJackpots(TM) installed
 base in California doubled in size from 600 games to nearly 1,200.  The total
 installed base of MegaJackpots(TM) machines, including joint venture units,
 grew to 22,600 at the end of the second quarter of fiscal 2001, an increase of
 1,700 and 3,400 units for the current quarter and year-to-date periods.
 "Trends remain strong in our gaming operations segment," commented IGT CEO Tom
 Baker, "and the rollout of our much anticipated Austin Powers(TM) game should
 support this momentum."  The Austin Powers(TM) game was introduced during the
 second week of April with a pre-rollout backlog of over 1,300 machines.
     Gross profit from gaming operations before the inclusion of our joint
 venture was $49.1 million for the current quarter and $92.1 million
 year-to-date compared to $41.0 million and $82.9 million for the corresponding
 periods of fiscal 2000.  The related gross profit margins were 54% and 56% for
 the second quarter of fiscal 2001 and 2000.  For the first six months of
 fiscal 2001, the gross profit margin excluding joint venture results was
 55% compared to 56% for the year earlier period.  Lower interest rates in the
 current period, which increases the cost of funding jackpots, impacted these
 margins.  Joint venture revenues, which for accounting purposes are reported
 net of expenses, grew to $35.3 million and $67.6 million for the quarter and
 year-to-date periods versus $25.5 million and $47.1 million for the comparable
 periods of fiscal 2000.
     Operating margins improved to 29% from 25% quarter-over-quarter, and to
 29% from 24% year-over-year.  These improvements were due to markedly higher
 volumes and improved operating efficiencies as noted above, partially offset
 by higher selling, general, and administrative costs resulting from increased
 legal and compliance costs and variable commission and incentive costs related
 to higher sales volumes.  Bad debt expense increased primarily from the
 overall increased sales.
     Other income and expense resulted in a net expense in the current quarter
 of $14.5 million versus $15.5 million for the same quarter of last year.  For
 the first six months of fiscal 2001, net other expense totaled $26.7 million
 versus net other income of $1.1 million in the comparable year earlier period.
 The fiscal 2000 period included a legal settlement received of $27.0 million
 ($17.3 million, net of tax).
     A conference call will be broadcast live over the Internet at 11:00 a.m.
 Pacific Daylight Time on Thursday, April 19, 2001.  Simply log on to the
 Internet at the following address to access  the call:
 
     What:    Conference Call following International Game
              Technology's Second Quarter Fiscal Year 2001 Earnings Release
 
     When:   Thursday, April 19, 2001 at 11:00 a.m. (Pacific Daylight Time)
 
     Where:   http://www.videonewswire.com/IGT/041901/
 
     How:     Live over the Internet -- Simply log on to the web address above
 
     Contact: Robert McIver 775-448-0110
 
     Minimum Requirements to listen to broadcast: The RealPlayer software,
 downloadable free from www.real.com/products/player/index.html, and at least a
 14.4Kbps connection to the Internet.  If you experience problems listening to
 the broadcast, send an email to webmaster@vdat.com.
     If you are unable to participate during the live webcast, the call will be
 archived on the Web site www.igt.com.  To access the replay, click on IGT
 Investors, FAQ page.  The call will also be archived at
 http://www.prnewswire.com.
     Interested parties not having access to the Internet may listen to a taped
 replay of the entire conference call commencing at approximately 1:30 p.m.
 (Pacific Daylight Time) on Thursday, April 19, 2001.  This replay will run
 through Thursday, April 26, 2001.  The access numbers are as follows:
 
     Domestic callers dial 888-296-6945 (no reservation number required)
     International callers dial 402-998-0535 (no reservation number required)
 
     Statements in this release which are not historical facts, including
 statements that trends in our gaming operations remain strong and should
 support the rollout of new games, the continuation of strong demand for
 replacement machines, the acceptance and gaining momentum for ticket-
 in/ticket-out and the recent improvement of its Australian operations are
 "forward-looking" statements under the Private Securities Litigation Reform
 Act of 1995.  These matters involve risks and uncertainties, including changes
 in demand for the Company's products because of a reduction in the growth of
 markets or changes in the popularity of its products, a decrease in the
 popularity of its wide area progressive systems, the risks of conducting
 international operations, the adoption of new unfavorable gaming laws or laws
 applicable to gaming machine manufacturers and uncertainties generally
 associated with the development and manufacturing of gaming machines and
 systems.  Historical results achieved are not necessarily indicative of future
 prospects of the Company.  More information on factors that could affect IGT's
 business and its financial results are included in its Annual Report on Form
 10-K and other public filings made with the Securities and Exchange
 Commission.
     IGT is a world leader in the design, development and  manufacture of
 microprocessor-based gaming products and software systems in all jurisdictions
 where gaming is legal.  For more information on International Game Technology,
 visit our website at www.igt.com.
 
     For further information please contact:  Maureen Mullarkey (775) 448-0127
 or Robert McIver (775) 448-0110, both of IGT.
 
 
     IGT Fiscal Year 2001
     Statements of Income
 
                               Three Months Ended           Six Months Ended
                           March 31,      April 1,     March 31,     April 1,
                             2001           2000         2001          2000
     (in thousands, except
      per share amounts)
 
     Revenues
      Product sales        $221,158      $118,656     $413,508      $228,416
      Gaming operations     125,750        99,397      235,131       196,154
      Total revenues        346,908       218,053      648,639       424,570
 
     Costs and expenses
      Cost of product
       sales                134,700        75,283      249,903       143,483
      Cost of gaming
       operations            41,304        32,861       75,360        66,173
      Selling, general, and
       administrative        47,247        35,740       86,845        68,709
      Depreciation and
       amortization           4,676         5,252        9,545        10,648
      Research and
       development           15,478        13,318       29,564        26,707
      Provision for
       bad debts              4,553         1,436       10,305         3,275
      Impairment of assets
       and restructuring       (600)           --       (1,100)        1,779
      Total costs and
       expenses             247,358       163,890      460,422       320,774
 
     Income from
      operations             99,550        54,163      188,217       103,796
 
     Other income (expense)
      Interest income        12,072        13,001       24,417        27,105
      Interest expense      (25,379)      (25,621)     (50,484)      (50,914)
      Gain (loss) on
       sale of assets           356          (762)         465          (771)
      Other                  (1,590)       (2,094)      (1,113)       25,725
      Other income
      (expense), net        (14,541)      (15,476)     (26,715)        1,145
 
     Income before
      income taxes           85,009        38,687      161,502       104,941
 
     Provision for
      income taxes           31,453        13,927       59,755        37,779
 
     Net income             $53,556       $24,760     $101,747       $67,162
 
     Basic earnings
      per share               $0.73         $0.33        $1.39         $0.83
 
     Diluted earnings
      per share               $0.70         $0.33        $1.34         $0.82
 
     Weighted average common
     shares outstanding      73,512        75,247       73,136        80,824
 
     Weighted average
      common and potential
      shares outstanding     76,414        76,048       76,009        81,614
 
 
     IGT Fiscal Year 2001
     Condensed Balance Sheets
 
                                                     March 31,   September 30,
                                                       2001           2000
      (Dollars in thousands)
 
     Assets
      Current assets
       Cash and cash equivalents                     $214,773       $244,907
       Investment securities, at market value          13,357         21,473
       Accounts receivable                            248,152        219,948
       Current maturities of long-term
        notes and contracts receivable                 91,608         76,320
       Inventories                                    186,236        146,989
       Investments to fund liabilities to
        jackpot winners                                28,481         27,939
       Deferred income taxes                           32,969         29,086
       Prepaid expenses and other                      59,862         47,564
          Total current assets                        875,438        814,226
 
     Long-term notes and contracts receivable          94,763         76,888
 
     Property, plant and equipment, at cost           332,681        310,206
       Less accumulated depreciation and
        amortization                                 (153,143)      (143,297)
       Property, plant and equipment, net             179,538        166,909
 
     Investments to fund liabilities to
      jackpot winners                                 231,471        229,726
 
     Intangible assets, net of amortization           174,026        143,738
 
     Other assets                                     236,329        192,229
        Total Assets                               $1,791,565     $1,623,716
 
     Liabilities and Stockholders' Equity
      Current liabilities
       Current maturities of long-term
        notes payable and capital
        lease obligations                              $4,618         $4,621
       Accounts payable                                71,339         76,387
       Jackpot liabilities                             75,118         55,942
       Accrued employee benefit plan
        liabilities                                    22,541         31,425
       Accrued interest                                31,257         31,369
       Other accrued liabilities                       86,268         59,249
          Total current liabilities                   291,141        258,993
 
     Long-term notes payable and
      Capital lease obligations,
      net of current maturities                       992,078        991,507
 
     Long-term jackpot liabilities                    256,558        267,985
 
     Other liabilities                                 18,143          8,646
        Total Liabilities                           1,557,920      1,527,131
 
     Stockholders' equity
       Common stock                                        97             96
       Additional paid-in capital                     312,785        278,825
       Retained earnings                            1,144,927      1,043,184
       Treasury stock                              (1,215,707)    (1,215,707)
       Accumulated other comprehensive
        loss                                           (8,457)        (9,813)
         Total stockholders' equity                   233,645         96,585
         Total Liabilities and
          Stockholders' Equity                     $1,791,565     $1,623,716
 
 SOURCE  International Game Technology