1.0.0.3 false Variable Interest Entities and Investments in Unconsolidated Affiliates false 1 $ false false Unit_2 Standard http://www.xbrl.org/2003/instance shares xbrli 0 Unit_22 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 Unit_5 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 Variable Interest Entities and Investments in Unconsolidated Affiliates 0 igt_VariableInterestEntitiesAndInvestmentsInUnconsolidatedAffiliates igt false na duration string Variable Interest Entities and Investments in Unconsolidated Affiliates false false false false false true false false false 1 false false 0 0 false false Variable Interest Entities and Investments in Unconsolidated Affiliates false 3 Equity Method Investments Disclosure [Text Block] 1 us-gaap_EquityMethodInvestmentsDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <div> 3. Variable Interest Entities and Investments in Unconsolidated Affiliates Variable Interest Entities As the primary beneficiary, we consolidate our VIE WAP trusts in Iowa and New Jersey. The trusts are primarily responsible for administering jackpot payments to winners. The consolidation of these VIE trusts primarily increases jackpot liabilities and related assets, as well as interest income and equivalent offsetting interest expense. In conjunction with regulatory changes, the Iowa Trust was dissolved with its remaining assets and liabilities transferred to IGT in December 2008. Consolidated VIE trust assets and equivalent liabilities totaled $94.7 million at June 30, 2009 and $108.2 million at September 30, 2008. Investments in Unconsolidated Affiliates Las Vegas Gaming International In October 2008, we entered into a strategic business arrangement with LVGI, an innovator in gaming software applications and hardware, whereby LVGI agreed to create applications for IGT’s server-based gaming systems, and IGT agreed to purchase certain shares in LVGI. We advanced $1.5 million in July 2008 and paid $10.3 million in October 2008 to LVGI for a total investment of $11.8 million to receive 4.7 million shares of LVGI convertible perpetual cumulative preferred stock and warrants to purchase an additional 1.5 million common shares. In February 2009, we deposited $1.5 million with LVGI for a second potential investment, which is fully refundable if an agreement is not reached in August 2009. As LVGI is not a publicly traded company and the preferred stock does not meet all the characteristics of in-substance common stock, this investment is accounted for under the cost method with earnings recorded only to the extent of distributed dividends. The warrants are not accounted for separately as they do not qualify as freestanding derivatives. Progressive Gaming International Corp. The fair value of our investment in PGIC's senior subordinated convertible notes, including accrued interest, was $6.8 million in January 2009 when we acquired certain PGIC assets. See Note 7. We reduced the carrying value of our investment in the notes to zero concurrent with the asset acquisition. PGIC subsequently filed a petition for relief under Chapter 7 of the US Bankruptcy Code. For the nine months ended June 30, 2009, we recorded a net investment loss of $0.4 million. The embedded derivatives and warrants, accounted for separately under SFAS 133, had a combined fair value of zero at June 30, 2009 after recording a $1.2 million loss during the first nine months of fiscal 2009. China LotSynergy Holdings, Ltd. Our CLS stock investment is accounted for as an available-for-sale security with an adjusted cost basis of $12.2 million, quoted market price fair value of $18.6 million, and unrealized gain of $6.4 million recorded at June 30, 2009. We changed from accounting for this investment under the cost method during the third quarter of fiscal 2009 as the selling restriction is within one year of expiration. Our CLS convertible note investment is accounted for as an available-for-sale security with amortized cost of $77.1 million, fair value of $77.2 million, and unrealized gain of $0.1 million at June 30, 2009. We determined that no feature met the SFAS 133 definition of a derivative requiring bifurcation at June 30, 2009. See Note 16 about related foreign currency derivatives. For our equity method joint venture with CLS, IGT Synergy Holding Ltd., as of and for the nine months ended June 30, 2009, we recognized a loss of $0.1 million and $13.5 million remains unfunded on our unconditional capital contribution commitment. Walker Digital Gaming, LLC At June 30, 2009, our 12% equity method investment in WDG totaled $50.5 million and we had paid $30.0 million of our $60.0 million royalty advance commitment. Our analysis of this VIE determined that IGT is not the primary beneficiary because IGT does not provide more than half of the total equity or financial support. The carrying value of our equity investment and deferred royalty, collectively $109.1 million, represents our maximum exposure to loss and there are no other terms of the arrangements as of June 30, 2009, explicit or implicit, that could require IGT to provide additional financial support. We recognized losses from this unconsolidated affiliate of $4.3 million and $4.5 million for the nine months ended June 30, 2009 and 2008, respectively. The losses are largely comprised of intangible asset amortization. In August 2009, we paid $20.0 million to WDG with an additional $5.0 million contingency in connection with an agreement to relinquish our WDG equity ownership, restructure IP rights, and eliminate future IGT royalty obligations. This transaction will require an impairment evaluation of our equity investment and adjustment of the deferred royalty in the fourth quarter of fiscal 2009. Aggregate Available-for-sale Investments in Unconsolidated Affiliates The CLS stock and convertible note are available-for-sale investments, collectively with $89.3 million of amortized cost, $6.5 million of unrealized gain, and fair value of $95.8 million at June 30, 2009. See Note 17 for factors related to estimated fair values. </div> 3. Variable Interest Entities and Investments in Unconsolidated Affiliates Variable Interest Entities As the false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true