IGT to take $77 million in non-cash charges

Slot machine giant International Game Technology said Wednesday that it would take several fourth-quarter non-cash charges of about $77 million when the Reno-based company announces earnings Nov. 5.

The announcement is seen as a way to lessen the impact on the company’s stock price surrounding earnings.

The charges will total approximately 26 cents per share and cover several IGT investments in recent years.

In a statement, IGT said the charges came following an assessment of the company’s long-term strategic goals.

“(IGT) has completed a review of several of its strategic investments and partnerships,” the company said in a statement.

The non-cash charges included $78 million related to the lower carrying value of its investment in Walker Digital Gaming. IGT reworked its relationship with Walker in August.

The company also anticipates a charge of about $13 million related to a decline in the value of its investment in Las Vegas Gaming International.

The charges will give IGT additional tax provisions of $15 million.

Tuesday 20 April 2010 | Casino News