International edition
September 21, 2020

Which it will report on November 5

IGT announces expected fourth quarter charges

(US).- International Game Technology announced that in conjunction with an assessment of the company's long term strategic goals, including increased focus on gaming content and efficient use of capital resources, it has completed a review of several of its strategic investments and partnerships.

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ased on this review, IGT expects to record the following charges to its fourth quarter results, which it will report on November 5, 2009.

As previously disclosed in its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009, IGT restructured its relationship with Walker Digital Gaming, Inc. under an August 2009 agreement. Based on an evaluation of management's intent and ability to use this intellectual property in existing and future products, IGT expects to record a non-cash charge of approximately us$ 78 million, reflecting a reduction in the carrying value of this investment.

IGT also expects to record a non-cash charge of approximately us$ 13 million related to its investment in Las Vegas Gaming International (LVGI). This decline in valuation reflects uncertainty of LVGI's ability to continue operating as a going concern.

In addition to these charges, IGT will record additional tax provisions of approximately us$ 15 million related to the establishment of a valuation allowance against foreign deferred tax assets which will not likely be realized.

These non-cash charges collectively total approximately us$ 77 million, net of tax, or approximately us$ 0.26 per diluted share for the fourth quarter. IGT does not expect these charges to impact the company's continuing compliance with debt covenants and will discuss these items on its fourth quarter earnings conference call on November 5, 2009.

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