Employee Benefit Plans

12 Months Ended

Sep. 30, 2014

Employee Benefit Plans

Disclosure of Compensation Related Costs, Share-based Payments

16.  EMPLOYEE BENEFIT PLANS

401(k) PLAN AND CASH INCENTIVES

IGT maintains a salary deferral 401(k) plan that allows eligible employees to contribute up to 40% of their base pay up to the IRS prescribed limit. The Plan is a designated safe harbor plan, whereby IGT matches up to 3.5% of the employee's eligible earnings on the first 6% contributed by the employee. Employee and IGT matching contributions vest immediately.

IGT may also contribute a discretionary amount of profits to eligible employees, which vest over a six-year period. Cash bonuses are paid annually to eligible management employees and cash sharing is distributed to non-management employees annually. Charges recorded for these plans totaled $41.4 million in 2014, $45.0 million in 2013, and $44.5 million in 2012.

Additionally, IGT implemented a non-qualified deferred compensation plan in September 1999, which provides an unfunded incentive compensation arrangement for eligible management and highly compensated employees. Participants may elect to defer up to 50% of their annual earnings with a minimum deferral of $2,000. Distributions can be paid out as short-term payments or at retirement. Retirement benefits can be paid out as a lump sum or in annual installments over a term of up to 15 years.

SHARE-BASED COMPENSATION

				Weighted Average
Options	Shares			Exercise Price Per Share		Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at beginning of 2014		9.1		$	18.57
Granted		-			-
Exercised		(0.5	)		13.10
Forfeited		(0.2	)		16.12
Expired		(1.0	)		22.63
Outstanding at end of 2014		7.4		$	18.41		4.3		$	10.0
Vested and expected to vest		7.3		$	18.42		4.3		$	10.0
Exercisable		6.6		$	18.69		4.1		$	9.2

				Weighted Average
Restricted Share Units	Shares			Grant Date Fair Value Per Share		Remaining Vesting Period (in years)		Aggregate Intrinsic Value
Outstanding at beginning of 2014		6.3		$	14.55
Granted		3.6			16.16
Vested		(2.6	)		14.45
Forfeited		(1.0	)		15.29
Outstanding at end of 2014		6.3		$	15.39		1.3		$	106.3
Expected to vest		5.0		$	15.27		1.3		$	84.0

Option Valuation Assumptions

Year Ended September 30,	2012
Expected volatility		0.47
Expected dividends		1.48 %
Expected term (in years)		4.7
Risk free rate		0.85 %

Reported Share-based Compensation

Years Ended September 30,	2014			2013			2012
Pre-tax	$	32.1		$	39.4		$	33.2
Tax benefit		(10.8	)		(12.5	)		(10.4	)
After-tax	$	21.3		$	26.9		$	22.8

Other Share-based Compensation Information

Years Ended September 30,	2014		2013		2012
Weighted average grant date FV per share:
Options granted	$	-	$	-	$	5.70
Restricted shares granted	$	16.16	$	14.26	$	15.05
Total intrinsic value of options exercised	$	1.7	$	6.4	$	3.8
Total FV of restricted shares vested		47.6		17.3		11.6
Tax benefit realized for tax return deductions		13.8		8.1		5.5

At September 30, 2014
Shares available for future grant (see Note 1 about GTECH merger limitations)		20.7
Unrecognized costs for outstanding awards	$	62.3
Weighted average future recognition period (in years)		1.9

Approximately 0.1 million shares were issued in February 2014 under the ESPP. At September 30, 2014, 0.7 million shares were available for future grants and we expected to issue approximately 0.1 million shares in February 2015 under this plan.

Additionally, eligible UK employees may enroll in the International Game Technology Savings Related Share Option Scheme established in January 1999 (formerly the Barcrest Savings Related Share Option Scheme). Employees must elect to vest over three, five, or seven years and the option price is equal to 80% of the market price of our stock on the grant date.  During 2014, 3,000 shares were issued under this plan and approximately 474,000 shares were available for grant at September 30, 2014. Based on enrollment through September 30, 2014, we expect to issue approximately 2,000 shares under this plan over the next year.