International Game Technology Reports 2011 First Quarter Results

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LAS VEGAS Jan. 20, 2011 December 31, 2010 $73 million $0.25 $75 million $0.26 $0.04 China

Patti Hart

Consolidated Operations

$465 million $515 million $276 million $121 million $296 million $144 million

Gaming Operations

$261 million $277 million $50.38 $0.48 $1.13

$165 million Alabama

Alabama Mexico

Product Sales

$204 million $238 million North America

$112 million

Operating Expenses and Other Income/Expense

$155 million $152 million

$18 million $29 million

Cash Flows, Balance Sheet and Capital Deployment

December 31, 2010 $102 million $74 million $169 million $73 million

$654 million December 31, 2010 $620 million September 30, 2010 $254 million $1.67 billion $1.21 billion $1.24 billion December 31, 2010 $80 million

December 31, 2010

Additional Information

$7 million $0.03

References to per share amounts in this release are based on diluted shares of our common stock, unless otherwise specified.

Earnings Conference Call

Dec. 30, 2010 Thursday, Jan. 20, 2011 2:00 p.m. PST

	Domestic callers dial 888-843-9209, passcode IGT
	International callers dial 312-470-7145, passcode IGT

4:00 p.m. PST Thursday, Jan. 20, 2011 Thursday, Jan. 27, 2011

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

December 1, 2010 December 29, 2010 www.sec.gov www.IGT.com/InvestorRelations December 31, 2010 January 20, 2011

About IGT

www.IGT.com

Unaudited Condensed Consolidated Statements of Income

	Quarters Ended
	December 31,
	2010	2009
(In millions, except per share amounts)
Revenues
Gaming operations	$ 260.6	$ 276.7
Product sales	204.2	238.4
Total revenues	464.8	515.1
Costs and operating expenses
Cost of gaming operations	95.9	104.0
Cost of product sales	92.7	115.3
Selling, general and administrative	84.9	87.3
Research and development	51.7	45.4
Depreciation and amortization	18.2	19.4
Total costs and operating expenses	343.4	371.4
Operating income	121.4	143.7
Other income (expense)
Interest income	13.4	16.0
Interest expense	(35.4)	(43.2)
Other	4.0	(1.3)
Total other income (expense)	(18.0)	(28.5)
Income from continuing operations before tax	103.4	115.2
Income tax provision	30.0	39.8
Income from continuing operations	73.4	75.4
Income (loss) from discontinued operations, net of tax	0.3	(2.1)
Net income	$ 73.7	$ 73.3
Basic earnings per share
Continuing operations	$ 0.25	$ 0.26
Discontinued operations	–	(0.01)
Net income	$ 0.25	$ 0.25
Diluted earnings per share
Continuing operations	$ 0.25	$ 0.26
Discontinued operations	–	(0.01)
Net income	$ 0.25	$ 0.25
Weighted average shares outstanding
Basic	297.6	295.1
Diluted	298.8	297.4

Unaudited Condensed Consolidated Balance Sheets
	December 31,	September 30,
	2010	2010
(In millions)
Assets
Current assets
Cash and equivalents	$ 168.7	$ 158.4
Restricted cash and investments	84.9	90.5
Jackpot annuity investments	64.9	65.1
Receivables, net	472.5	474.4
Inventories	113.0	97.6
Other assets and deferred costs	271.1	316.4
Total current assets	1,175.1	1,202.4
Property, plant and equipment, net	584.3	586.7
Jackpot annuity investments	356.5	360.8
Contracts and notes receivable, net	147.5	171.9
Goodwill and other intangibles, net	1,340.5	1,353.7
Other assets and deferred costs	308.7	331.5
Total Assets	$ 3,912.6	$ 4,007.0
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$ 84.8	$ 84.6
Jackpot liabilities, current portion	170.0	179.1
Accrued income taxes	1.9	1.8
Dividends payable	17.9	17.9
Other accrued liabilities	246.7	298.9
Total current liabilities	521.3	582.3
Long-term debt	1,568.1	1,674.3
Jackpot liabilities	383.7	391.8
Other liabilities	137.9	124.3
Total Liabilities	2,611.0	2,772.7
Total Equity	1,301.6	1,234.3
Total Liabilities and Stockholders’ Equity	$ 3,912.6	$ 4,007.0

Unaudited Condensed Consolidated Statements of Cash Flows

	Three Months Ended
	December 31,
	2010	2009
(In millions)
Operating
Net income	$ 73.7	$ 73.3
Depreciation and amortization	55.1	62.7
Other non-cash items	17.2	27.3
Changes in operating assets and liabilities:
Receivables	18.6