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          <NonNumbericText>&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-45" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td style="WIDTH: 48pt"&gt;
&lt;div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"&gt;
&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;11.&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;CONTINGENCIES&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-46" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; TEXT-DECORATION: underline"&gt;Litigation&lt;/font&gt;&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;IGT
has been named in and has brought lawsuits in the normal course of
business. We do not expect the outcome of these suits, including
the lawsuits described below, to have a material adverse effect on
our future results of operations, financial position, or cash
flows.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-47" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;Bally&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-48" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman"&gt;2004
Federal District Court of Nevada&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;On
December 7, 2004, IGT filed a complaint in US District Court for
the District of Nevada, alleging that defendants Alliance Gaming
Corp., Bally Gaming Int'l, Inc., and Bally Gaming, Inc. infringed
six US patents held by IGT: US Patent Nos. 6,827,646; 5,848,932;
5,788,573; 5,722,891; 6,712,698; and 6,722,985. On January 21,
2005, defendants filed an answer denying the allegations in the
complaint and raising various affirmative defenses to IGT's
asserted claims. Defendants also asserted fourteen counterclaims
against IGT, including counterclaims for a declaratory judgment of
non-infringement, invalidity, and unenforceability of the asserted
patents, and for antitrust violations and intentional interference
with prospective business advantage. IGT has successfully moved for
partial summary judgment on defendants&amp;#8217; counterclaims for
intentional interference with prospective business advantage and
defendants&amp;#8217; antitrust allegations related to the gaming
machine market. IGT denies the remaining allegations. On May 9,
2007, the Court issued an order construing disputed terms of the
asserted patent claims. On October 16, 2008, the Court issued
summary judgment rulings finding certain of IGT&amp;#8217;s patents,
including patents that IGT believes cover bonus wheel gaming
machines, invalid as obvious. The rulings also found that Bally was
not infringing certain patents asserted by IGT. Bally&amp;#8217;s
antitrust and unfair competition counterclaims remain pending. On
November 7, 2008, the Court issued an order staying the proceedings
and certifying the summary judgment and claim construction rulings
for immediate appeal. On December 1, 2008, IGT appealed the rulings
to the US Court of Appeals for the Federal Circuit. On January 8,
2009, Bally moved to dismiss the appeal on jurisdictional grounds.
On February 2, 2009, the Federal Circuit denied the Bally motion
without prejudice to the parties raising jurisdictional issues in
their merits briefs. On October 22, 2009, the Federal Circuit
affirmed the District Court&amp;#8217;s summary judgment rulings. On
December 7, 2009, Bally filed a motion to lift the stay and
schedule a trial on the remaining issues. A hearing on the motion
was held on February 1, 2010, at which the Court indicated that it
would revisit earlier motions for summary judgment on the issues
not addressed on appeal, including IGT&amp;#8217;s motions for summary
judgment on Bally&amp;#8217;s antitrust and unfair competition
counterclaims. &lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;The
Court has under consideration motions for judgment or dismissal of
all remaining claims pending in the case.&lt;/font&gt;&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman"&gt;2006
Federal District Court of Delaware&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;On
April 28, 2006, IGT filed a complaint in US District Court for the
District of Delaware, alleging that defendants Bally Technologies,
Inc., Bally Gaming Int'l, Inc., and Bally Gaming, Inc. infringed
nine US patents held by IGT: US Patent Nos. RE 38,812; RE 37,885;
6,832,958; 6,319,125; 6,244,958; 6,431,983; 6,607,441; 6,565,434;
and 6,620,046. The complaint alleges that the &amp;#8220;BALLY POWER
BONUSING&amp;#8482;&amp;#8221; technology infringes one or more of the
claims of the asserted IGT patents. The lawsuit seeks monetary
damages and an injunction. On June 30, 2006, defendants filed an
answer denying the allegations in the complaint and raising various
affirmative defenses to IGT&amp;#8217;s asserted claims. Defendants
also asserted twelve counterclaims against IGT, including
counterclaims for a declaratory judgment of non-infringement,
invalidity, and unenforceability of the asserted patents, antitrust
violations, unfair competition, and intentional interference with
prospective business advantage. IGT denies these allegations.
Pursuant to stipulation of the parties, all claims and
counterclaims except those relating to US Patent Nos. RE 37,885
("the '885 patent"), RE 38,812 ("the '812 patent"), and 6,431,983
have been dismissed. All proceedings relating to Bally&amp;#8217;s
antitrust, unfair competition, and intentional interference
counterclaims have been stayed. On April 28, 2009, the court issued
a summary judgment ruling finding the '885 and '812 patents valid.
The court also ruled that Bally's "Power Rewards" and "ACSC Power
Winners" products infringe certain claims of the '885 and '812
patents. The court granted Bally's motion for summary judgment that
Bally's "SDS Power Winners" does not infringe the '885 patent and
"Power Bank" and "Power Promotions" do not infringe the '983
patent. The court denied Bally's motion for summary judgment that
the '983 patent is invalid. The parties have agreed that Bally's
counterclaim for a declaratory judgment on invalidity of the '983
patent will be dismissed without prejudice. IGT&amp;#8217;s motion for
a permanent injunction against Bally&amp;#8217;s infringing products
was denied. On April 28, 2010, the court entered an order
dismissing without prejudice Bally&amp;#8217;s remaining counterclaims
(antitrust, unfair competition and intentional interference with
business relationships) and entered final judgment in favor of IGT
and against the Bally defendants. A trial to determine the amount
of damages incurred by IGT, and related matters, as a result of
Bally's infringement has not yet been scheduled.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-49" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;Aristocrat&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-50" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman"&gt;2006
Northern Federal District Court of California&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;On
June 12, 2006, Aristocrat Technologies Australia PTY Ltd. and
Aristocrat Technologies, Inc. filed a patent infringement lawsuit
against IGT. Aristocrat alleged that IGT willfully infringed US
Patent No. 7,056,215, which&amp;#160;&amp;#160;issued on June 6, 2006. On
December 15, 2006, Aristocrat filed an amended complaint, adding
allegations that IGT willfully infringed US Patent No. 7,108,603,
which issued on September 19, 2006. The IGT products named in the
original and amended complaints were the &lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman"&gt;Fort
Knox&amp;#174;&lt;/font&gt; mystery progressive slot machines. On June 13,
2007, the US District Court for the Northern District of California
entered an order granting summary judgment in favor of IGT
declaring both patents invalid. The US Court of Appeals for the
Federal Circuit reversed this decision on September 22, 2008.
IGT&amp;#8217;s request for a rehearing was denied on November 17,
2008. This case has recommenced in the District Court.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-51" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;Brochu
v. Loto Quebec&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;Loto
Quebec commenced an action in warranty against VLC, Inc., a
wholly-owned subsidiary of IGT, and another manufacturer of video
lottery machines in October 2003, in the Superior Court of the
Province of Quebec, District of Quebec, seeking indemnification for
any damages that may be awarded against Loto Quebec in a class
action suit, also filed in the Superior Court of the Province of
Quebec. The class action claim against Loto Quebec, to which
neither IGT nor any of its affiliates are parties, was filed by
Jean Brochu on behalf of himself and a class of other persons who
allegedly developed pathological behaviors through the play of
video lottery machines made available by Loto Quebec in taverns and
other public locations. In this action, the plaintiff seeks to
recover on behalf of the class damages of approximately CAD$578.7
million, representing CAD$4,863 per class member, and CAD$119.0
million in punitive damages. Loto Quebec filed its Plea in Defense
in the main action in February 2006. On August 1, 2008, Loto Quebec
filed a discontinuance of the action in warranty against VLC.
Notwithstanding the discontinuance, Loto Quebec may still pursue
the claims it asserted, or could have asserted, in the action in
warranty through arbitration against VLC. Settlement of the class
action was approved by the Superior Court on March 23, 2010.&amp;#160;
In a letter, dated May 5, 2010, Loto Quebec's counsel referred to
the settlement of the class action and the settlement agreement
between Loto Quebec and VLC under which Loto Quebec discontinued
its warranty action against VLC but reserved a right to pursue
claims via arbitration (the "Settlement Agreement") and advised VLC
that "Loto Quebec does not intend to proceed against Video Lottery
Consultants, Inc. under the terms of the Settlement
Agreement.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-52" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;Shareholder
Actions&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-53" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: times new roman"&gt;Securities
Class Action&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;On
July 30, 2009, International Brotherhood of Electrical Workers
Local 697 filed a putative securities fraud class action in the US
District Court for the District of Nevada, alleging causes of
action under Sections 10(b) and 20(a) of the Securities Exchange
Act against IGT and certain of its officers, one of whom is a
director. The complaint alleges that between November 1, 2007 and
October 30, 2008, the defendants inflated IGT's stock price through
a series of materially false and misleading statements or omissions
regarding IGT's business, operations, and prospects. The Court has
not yet appointed a lead plaintiff pursuant to the Private
Securities Litigation Reform Act.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-54" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: times new roman"&gt;Derivative
Actions&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;Between
August 20, 2009 and September 17, 2009, the Company was nominally
sued in a series of derivative lawsuits filed in the US District
Court for the District of Nevada, captioned Fosbre v. Matthews et
al., Case No. 3:09-cv-00467; Calamore v. Matthews et al., Case No.
3:09-cv-00489-ECR-VPC; Israni v. Bittman, et al., Case No.
3:09-cv-00536; and Aronson v. Matthews et al., Case No.
3:09-cv-00542-RCJ-VPC. Plaintiffs purportedly brought their
respective actions on behalf of the Company. The complaints assert
claims against various current and former officers and directors of
the Company, for breaches of fiduciary duties, unjust enrichment,
abuse of control, gross mismanagement, waste of corporate assets,
and contribution and indemnification. The complaints seek an
unspecified amount of damages and allege similar facts as the
securities class action lawsuit. The complaints additionally allege
that certain individual defendants engaged in insider trading and
that the director defendants improperly handled Thomas J.
Matthews&amp;#8217; resignation as Chief Executive Officer of the
Company. The actions were consolidated and subsequently a
consolidated derivative complaint was filed in December 2009.
Defendants have moved to dismiss that complaint.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;On
September 30, 2009, the Company was nominally sued in a derivative
lawsuit filed in the Second Judicial District Court of the State of
Nevada, County of Washoe. Plaintiff purportedly filed the action on
behalf of the Company. The lawsuit, captioned Kurz et al. v. Hart
et al., Case No. cv-0-9-02982, asserts claims against various
current and former officers and directors for breach of fiduciary
duties and unjust enrichment. The complaint generally makes the
same allegations as the federal derivative complaints and seeks an
unspecified amount of damages. The parties have stipulated to stay
this action pending the motions to dismiss in the above-mentioned
consolidated federal derivative action.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;In
a letter dated October 7, 2009 to the Company&amp;#8217;s Board of
Directors, a shareholder made factual allegations similar to those
set forth in the above derivative and securities class actions and
demanded that the Board investigate, address and remedy the harm
allegedly inflicted on IGT. In particular, the letter alleges that
certain officers and directors grossly mismanaged the Company by
overspending in the area of R&amp;amp;D of server-based game technology
despite a looming recession to which the Company was particularly
vulnerable; by making or allowing false and misleading statements
regarding the Company&amp;#8217;s growth prospects and earnings
guidance; and by wasting corporate assets by causing the Company to
repurchase Company stock at inflated prices. The letter asserts
that this alleged conduct resulted in breaches of fiduciary duties
and violations of Section 10(b) of the Exchange Act and SEC Rule
10b-5.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-55" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: times new roman"&gt;ERISA
Actions&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;On
October 2, 2009, two putative class action lawsuits were filed on
behalf of participants in the Company&amp;#8217;s employee pension
plans, naming as defendants the Company, the IGT Profit Sharing
Plan Committee, and several current and former officers and
directors. The complaints (which seek unspecified damages) allege
breaches of fiduciary duty under the Employee Retirement Income
Security Act, 29 U.S.C &amp;#167;&amp;#167; 1109 and 1132. The complaints
allege similar facts as the securities class action lawsuit. The
complaints further allege that the defendants breached fiduciary
duties to Plan Participants by failing to disclose material facts
to Plan Participants, failing to exercise their fiduciary duties
solely in the interest of the Participants, failing to properly
manage Plan assets, failing to diversify Plan assets, and
permitting Participants to elect to invest in Company stock. The
actions, filed in the US District Court for the District of Nevada,
are captioned Carr et al. v. International Game Technology et al.,
Case No. 3:09-cv-00584, and Jordan et al. v. International Game
Technology et al., Case No. 3:09-cv-00585. In October 2009,
plaintiffs moved for consolidation of the two actions which motion
is currently pending. Defendants need not respond until the Court
rules on the consolidation motion.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-56" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;Environmental
Matters&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;CCSC,
a casino operation sold by IGT in April 2003, is located in an area
that has been designated by the EPA as an active Superfund site
because of contamination from historic mining activity in the area.
In order for Anchor Coin, an entity IGT acquired in December 2001,
to develop the CCSC site, it voluntarily entered into an
administrative order of consent with the EPA to conduct soil
removal and analysis (a requirement imposed on similarly situated
property developers within the region) in conjunction with
re-routing mine drainage. The work and obligations contemplated by
the agreement were completed by Anchor in June 1998, and the EPA
subsequently issued a termination of the order.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;The
EPA, together with other property developers excluding CCSC,
continues remediation activities at the site. While we believe our
remediation obligations are complete, it is possible that
additional contamination may be identified and we could be
obligated to participate in remediation efforts. Under accounting
guidance for environmental remediation liabilities, we determined
the incurrence of additional remediation costs is neither probable
nor reasonably estimable and no liability has been
recorded.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-57" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;OSHA
/ Wrongful Termination Matter&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;On
July 8, 2004, two former employees filed a complaint with the US
Department of Labor, OSHA alleging retaliatory termination in
violation of the Sarbanes-Oxley Act of 2002. The former employees
allege that they were terminated in retaliation for questioning
whether Anchor and its executives failed to properly disclose
information allegedly affecting the value of Anchor's patents in
connection with IGT's acquisition of Anchor in December 2001. The
former employees also allege that the acquired patents were
overvalued on the financial statements of IGT. Outside counsel,
retained by an independent committee of our Board of Directors,
reviewed the allegations and found them to be entirely without
merit.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;On
November 10, 2004, the employees withdrew their complaint filed
with OSHA and filed a notice of intent to file a complaint in
federal court. On December 1, 2004, a complaint was filed under
seal in the US District Court for the District of Nevada, based on
the same facts set forth above regarding their OSHA complaint. IGT
filed a motion for summary judgment as to all claims in
plaintiffs&amp;#8217; complaint. On June 14, 2007, the US District
Court for the District of Nevada entered an order granting summary
judgment in favor of IGT as to plaintiffs&amp;#8217; Sarbanes-Oxley
whistle-blower claims and dismissed their state law claims without
prejudice. Plaintiffs&amp;#8217; motion for reconsideration of the
District Court&amp;#8217;s decision was denied. Plaintiffs appealed to
the US Court of Appeals for the Ninth Circuit. Oral argument was
heard on March 12, 2009, and on August 3, 2009, the Ninth Circuit
reversed the District Court&amp;#8217;s decision. IGT&amp;#8217;s motion
for summary judgment on plaintiffs&amp;#8217; state law claims was
argued on October 22, 2009 and granted in IGT&amp;#8217;s favor on
December 8, 2009. On April 13, 2010, the District Court granted
IGT&amp;#8217;s motion to strike the plaintiffs&amp;#8217; jury demand and
granted IGT&amp;#8217;s motion to retax costs and fees. It denied
plaintiffs&amp;#8217; motion for certification and/or reconsideration.
Trial has been scheduled to begin on June 1, 2010.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;In
conjunction with the Anchor acquisition purchase price allocation
as of December 31, 2001, IGT used the relief of royalty valuation
methodology to estimate the fair value of the patents at $164.4
million. The carrying value of the patents at March 31, 2010
totaled $47.6 million.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-58" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-DECORATION: underline"&gt;Arrangements
with Off-Balance Sheet Risks&lt;/font&gt;&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;In
the normal course of business, we are party to financial
instruments with off-balance sheet risk, such as performance bonds
and guarantees not reflected in our balance sheet. We do not expect
any material losses to result from these arrangements and are not
dependent on off-balance sheet financing arrangements to fund our
operations.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-59" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;Performance
Bonds&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;Performance
bonds outstanding related to gaming operations totaled $5.9 million
at March 31, 2010. We are liable to reimburse the bond issuer in
the event of exercise due to nonperformance.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-60" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;Letters
of Credit&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;Outstanding
letters of credit issued under our domestic line of credit to
ensure payment to certain vendors and governmental agencies totaled
$3.6 million at March 31, 2010.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-61" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;IGT
Licensor Arrangements&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;Our
sales agreements that include software and IP licensing
arrangements may require IGT to indemnify the third-party licensee
against liability and damages (including legal defense costs)
arising from any claims of patent, copyright, trademark
infringement, or trade secret misappropriation. Should such a claim
occur, we could be required to make payments to the licensee for
any liabilities or damages incurred. Historically, we have not
incurred any significant costs due to infringement claims. As we
consider the likelihood of incurring future costs to be remote, no
liability has been recorded.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-62" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;Product
Warranties&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;The
majority of our products are generally covered by a warranty for
periods ranging from 90 days to one year. We estimate accrued
warranty costs in the table below based on historical trends in
product failure rates and expected costs to provide warranty
services.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr&gt;
&lt;td align="left" valign="bottom" style="BORDER-BOTTOM: black 2px solid"&gt;
&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;Six
Months Ended March 31,&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td valign="bottom" style="PADDING-BOTTOM: 2px"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"&gt;
&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;2010&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" style="PADDING-BOTTOM: 2px"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"&gt;
&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;2009&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;
&lt;tr&gt;
&lt;td align="left" valign="bottom"&gt;
&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: times new roman"&gt;(In
millions)&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td valign="bottom"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td colspan="2" valign="bottom"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td colspan="2" valign="bottom"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;
&lt;tr style="background-color: #C0FFFF;"&gt;
&lt;td align="left" valign="bottom" width="70%"&gt;
&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;Balance
at beginning of year&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td align="right" valign="bottom" width="1%"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="1%" style="TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="12%" style="TEXT-ALIGN: right"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;7.9&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td align="right" valign="bottom" width="1%"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="1%" style="TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="12%" style="TEXT-ALIGN: right"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;8.4&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;
&lt;tr style="background-color: white;"&gt;
&lt;td align="left" valign="bottom" width="70%"&gt;
&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;Reduction
for payments made&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td align="right" valign="bottom" width="1%"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="1%" style="TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="12%" style="TEXT-ALIGN: right"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;(4.5&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;)&lt;/font&gt;&lt;/td&gt;
&lt;td align="right" valign="bottom" width="1%"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="1%" style="TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="12%" style="TEXT-ALIGN: right"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;(4.0&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;)&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;
&lt;tr style="background-color: #C0FFFF;"&gt;
&lt;td align="left" valign="bottom" width="70%"&gt;
&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;Accrual
for new warranties issued&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td align="right" valign="bottom" width="1%"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="1%" style="TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="12%" style="TEXT-ALIGN: right"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;4.8&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td align="right" valign="bottom" width="1%"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="1%" style="TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="12%" style="TEXT-ALIGN: right"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;5.1&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
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&lt;tr style="background-color: white;"&gt;
&lt;td align="left" valign="bottom" width="70%" style="PADDING-BOTTOM: 2px"&gt;
&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;Adjustments
for pre-existing warranties&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&lt;font style="DISPLAY: inline"&gt;(0.6&lt;/font&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;)&lt;/font&gt;&lt;/td&gt;
&lt;td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="12%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&lt;font style="DISPLAY: inline"&gt;0.9&lt;/font&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;
&lt;tr style="background-color: #C0FFFF;"&gt;
&lt;td align="left" valign="bottom" width="70%" style="PADDING-BOTTOM: 4px"&gt;
&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;Balance
at end of period&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&lt;font style="DISPLAY: inline"&gt;7.6&lt;/font&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" width="12%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&lt;font style="DISPLAY: inline"&gt;10.4&lt;/font&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-63" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;Self-Insurance&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;We
are self-insured for various levels of workers&amp;#8217; compensation,
directors&amp;#8217; and officers&amp;#8217; liability, and electronic
errors and omissions liability, as well as employee medical,
dental, prescription drug, and disability coverage. We purchase
stop loss coverage to protect against unexpected claims. Accrued
insurance claims and reserves include estimated settlements for
known claims, and actuarial estimates for claims incurred but not
reported.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;&lt;table border="0" cellpadding="0" cellspacing="0" id="hangingindent-64" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;
&lt;tr valign="top" style="LINE-HEIGHT: 1.25;"&gt;
&lt;td&gt;
&lt;div align="left"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"&gt;State
and Federal Taxes&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;/tr&gt;
&lt;/table&gt;&lt;br/&gt;&lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&gt;We
are subject to sales, use, income, gaming and other tax audits and
administrative proceedings in various US federal, state, local, and
foreign jurisdictions. While we believe we have properly reported
our tax liabilities in each jurisdiction, we can give no assurance
that taxing authorities will not propose adjustments that increase
our tax liabilities.&lt;/font&gt;&lt;/div&gt;&lt;br/&gt;</NonNumbericText>
          <NonNumericTextHeader>11.


CONTINGENCIES





Litigation


IGT
has been named in and has brought lawsuits in the normal course of
business. We do not</NonNumericTextHeader>
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      <ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef
 -Publisher FASB
 -Name FASB Interpretation (FIN)
 -Number 14
 -Paragraph 3

Reference 2: http://www.xbrl.org/2003/role/presentationRef
 -Publisher FASB
 -Name Statement of Financial Accounting Standard (FAS)
 -Number 5
 -Paragraph 9, 10, 11, 12

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