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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2000
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OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File Number --------
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
INTERNATIONAL GAME TECHNOLOGY
PROFIT SHARING PLAN
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
INTERNATIONAL GAME TECHNOLOGY
9295 Prototype Drive, Reno, NV 89511
(775)448-7777
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INTERNATIONAL GAME TECHNOLOGY
PROFIT SHARING PLAN
Financial Statements for the Years Ended
December 31, 2000 and 1999, Supplemental
Schedule for the Year Ended December 31, 2000,
and Independent Auditors' Report
INTERNATIONAL GAME TECHNOLOGY PROFIT SHARING PLAN
TABLE OF CONTENTS
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Page
Independent Auditors' Report 1
Statements of Net Assets Available for Benefits 2
Statements of Changes in Net Assets Available
for Benefits 3
Notes to Financial Statements 4
Supplemental Schedule of Assets Held
for Investment Purposes 9
INDEPENDENT AUDITORS' REPORT
International Game Technology Profit Sharing Plan:
We have audited the accompanying statements of net assets available for benefits
of International Game Technology Profit Sharing Plan (the "Plan") as of December
31, 2000 and 1999, and the related statements of changes in net assets available
for benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan at December 31, 2000
and 1999, and the changes in net assets available for benefits for the years
then ended in conformity with accounting principles generally accepted in the
United States of America.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of assets held
for investment purposes on page 9 is presented for the purpose of additional
analysis and is not a required part of the basic financial statements, but is
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. This supplemental schedule is the responsibility of the
Plan's management. Such schedule has been subjected to the auditing procedures
applied in our audit of the basic 2000 financial statements and, in our opinion,
is fairly stated in all material respects when considered in relation to the
basic financial statements taken as a whole.
DELOITTE & TOUCHE LLP
Reno, Nevada
June 7, 2001
INTERNATIONAL GAME TECHNOLOGY PROFIT SHARING PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 2000 AND 1999
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ASSETS 2000 1999
Cash $ 515,629 $ 165,913
Investments, at fair value 127,987,134 98,384,023
Contributions receivable - 16,354
Loans to participants 5,186,122 4,573,307
Refunds payable (59,073) (63,053)
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NET ASSETS AVAILABLE FOR
BENEFITS $133,629,812 $ 103,076,544
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See accompanying notes to financial statements.
INTERNATIONAL GAME TECHNOLOGY PROFIT SHARING PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999
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2000 1999
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income:
Net increase in fair value of investments $ 10,721,810 $ -
Interest 436,383 539,685
Dividends and capital gains 8,955,610 4,708,713
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20,113,803 5,248,398
Contributions:
Employer 11,005,558 9,069,152
Participant 7,440,191 4,484,857
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Total additions 38,559,552 18,802,407
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DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Net decrease in fair value of investments - 395,119
Benefits paid to participants 7,931,887 7,910,308
Administrative expenses 74,397 138,252
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Total deductions 8,006,284 8,443,679
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NET INCREASE 30,553,268 10,358,728
NET ASSETS AVAILABLE FOR BENEFITS:
BEGINNING OF YEAR 103,076,544 92,717,816
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END OF YEAR $133,629,812 $103,076,544
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See accompanying notes to financial statements.
INTERNATIONAL GAME TECHNOLOGY PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2000 and 1999
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1. DESCRIPTION OF PLAN
The International Game Technology (IGT) Profit Sharing Plan (the Plan)
is sponsored by International Game Technology (the Company) and consists
of two programs: The Profit Sharing Program and the 401(k) Program. The
following is a brief description of the Plan and provides general
information. Participants should refer to the IGT Plan Document and
Summary Plan Description for a more complete description of the Plan's
provisions.
The Plan is subject to the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA), as amended, and other provisions of the
Internal Revenue Code.
The Plan, adopted December 10, 1980, is a defined contribution plan
covering all eligible employees of IGT. On June 1, 1993 the Plan was
restated to offer additional investment options to participants as well as
transfer the administration to a Third-Party Administrator. On April 1,
1999, the Plan's Third-Party Administrator was changed to Fidelity
Investments. Refer to "Investment Options" below for further information
of available investment funds with Fidelity Investments.
In September 1999, IGT purchased Sodak Gaming, Inc. (Sodak), a South
Dakota distributor of casino gaming products. On October 1, 1999, Sodak
employees became eligible to participate in the 401(k) Program. For Plan
year 2000, Sodak employees became eligible for the Profit Sharing Program.
Profit Sharing Program - The Company may make an annual profit sharing
contribution, as determined by the Company's Board of Directors, based on
operating profits. The contribution is then allocated to participant's
accounts proportionately based on annual eligible compensation. Refer to
"Benefit Payments and Vesting" below for the Profit Sharing Program
vesting schedule.
Company employees are eligible to participate in the Profit Sharing
Program after completing 1,000 hours of service in a calendar year and
reaching the age of 18. Once eligible, a Plan participant must be employed
on the last day of the Plan year (December 31) to receive their annual
profit sharing allocation. Participation in the Plan is retroactive to
January 1 of the year in which the employee became eligible.
401(k) Program - Effective January 1, 1989, the Plan was amended to allow
participants to defer up to 20% of their annual salary as contributions to
their accounts, as governed by IRC Section 401(k). On January 1, 1995, the
Company again amended the Plan to lower the elective deferrals from 20% to
15%. On January 1, 1998, the Company amended the Plan to lower the
elective deferrals for highly compensated employees to 7%. An employee may
begin contributing pre-tax contributions to their accounts upon completion
of 90 days of full time employment, or one year as a part-time employee. A
participant may stop contributing to the Plan at any time by notifying the
Third-Party Administrator.
On January 1, 1993, the Company began a 401(k) contribution matching
program whereby the Company matches 100% of an employee's contributions up
to $500 and an additional 50% of the next $500 contributed by the
employee. This allows for maximum annual Company matching contributions of
$750 to each employee's account. Employees are 100% vested in all 401(k)
contributions.
The Plan also allows for rollover contributions from other qualified
retirement plans. If the rollover is from an individual retirement
arrangement, all assets in the prior retirement plan must have originated
as contributions made under a qualified plan.
Participant Accounts - Each participant's account is credited with
employee 401(k) and employer matching contributions, the allocations of
the Company's profit sharing contribution and forfeitures of non-vested
portions of terminated participants' account balances. Additionally,
participants' accounts are affected by earnings and losses on investments.
Each participant is provided a quarterly account statement detailing the
account activity by investment fund.
Investment Options - The Company has selected thirteen investment options
that have a variety of growth and risk characteristics. Plan participants
are able to elect how their contributions are invested. A participant may
allocate all contributions to one investment fund or split them between
any combination of funds in increments of 1%. A participant may change how
current and/or future contributions are invested at any time during the
Plan year. The Plan's investment options are:
Retirement Money Market Portfolio
PIMCO Total Return Fund
Fidelity Puritan Fund
Fidelity Equity-Income II
Spartan U.S. Equity Index Fund
Baron Asset Fund
Fidelity Dividend Growth Fund
Fidelity OTC Portfolio
UAM: FMA Small Company Portfolio
Fidelity Diversified International Fund
IGT Unitized Stock Fund
Franklin Small Cap Growth Fund
Investco Blue Chip Growth Fund
The Company invests employer profit sharing contributions in Money Funds
that are not yet allocated to participants and distributed.
Benefit Payments and Vesting - Participants are immediately vested in
their tax deferred 401(k) contributions, Company 401(k) matching
contributions, and rollover contributions from other qualified plans, and
the related earnings. The vested portion of a participant's profit
sharing account is based upon years of continuous service. A participant
is 100% vested after seven consecutive years of service, based on the
following vesting table:
Completed Years
of Vesting Service Vested Portion
0 0%
1 10%
2 20%
3 30%
4 45%
5 60%
6 80%
7 100%
A participant earns a year of vesting service for each Plan year (January
1 to December 31) in which he or she worked at least 1,000 hours.
Upon termination of employment, a participant may receive a lump sum
payment equal to the value of his or her account. If the termination of
employment is by normal retirement (retirement after age 65), by death or
by reason of total disability, the participant is 100% vested and has the
right to receive payment in full. If a participant leaves the Company for
any other reason, he or she is entitled to a distribution from the vested
portion of his or her account.
If a terminating participant's vested account balance totals $5,000 or
more, he or she may voluntarily defer payment of benefits until the normal
retirement date. In any case, he or she may not defer payment past the age
of 70 1/2. The only form of benefit payments are lump-sum payments,
however, a terminating participant may take a partial lump-sum payment and
defer the balance of his or her account as long as the remaining balance
is at least $5,000.
Hardship Withdrawals - The Plan allows for hardship withdrawals under
defined circumstances. The necessity of the hardship withdrawal is
reviewed by the Company's Benefits Committee and includes allowance for
major medical expenses, purchase of a primary residence, college expenses
for a family member, and prevention of eviction from or foreclosure on a
principal residence. A participant must stop making pre-tax 401(k)
contributions for a year following the hardship withdrawal.
Plan Termination - In the event of Plan termination, participants will
become 100% vested in their accounts. Although the Company has not
expressed any intent to do so, International Game Technology has the right
under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA.
Loans - The Plan allows for loans to be taken against a participant's
vested account, subject to the following restrictions: the loan amount may
be no less than $1,000 and no more than the lesser of 50% of the
participant's vested account balance or $50,000; interest is charged on a
simple interest basis at the prime rate plus 1%; and repayment must be
over a period not to exceed 60 months. Payments are made by payroll
deduction on a bi-weekly basis.
Administrative Expenses - Plan administrative expenses totaling $74,397
and $138,252 in 2000 and 1999, respectively, were paid by the Plan. These
include management and trustee fees. Consulting fees and recordkeeping
fees are paid by the Company.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting - The Plan is accounted for on the accrual basis of
accounting.
Cash - The Short-term cash component of the IGT Unitized Stock Fund.
Investments, at Fair Value - All investments of the Plan are valued at
quoted market prices as of December 31, 2000 and 1999. Investments include
employer profit sharing contributions not yet distributed, and participant
investment options.
Benefits Payable - As of December 31, 2000 and 1999, net assets available
for benefits included $8,536,036 and $13,696,112 due to participants who
have withdrawn from participation in the Plan, respectively.
3. INVESTMENTS
All investments of the Plan are administered by an investment management
agent. The following table presents the fair value of investments at
quoted market prices at December 31:
2000 1999
Retirement Money Market Portfolio $ 16,469,861 $14,655,845
PIMCO Total Return Fund 6,958,109 5,844,231
Fidelity Puritan Fund 1,476,447 635,900
Fidelity Equity-Income II 14,069,707 14,999,743
Spartan U.S. Equity Index Fund 2,848,466 1,656,265
Baron Asset Fund 9,392,356 10,766,104
Fidelity Dividend Growth Fund 19,653,917 19,648,161
Fidelity OTC Portfolio 7,125,136 3,967,991
UAM: FMA Small Company Portfolio 438,780 236,177
Fidelity Diversified International Fund 5,824,604 5,503,269
IGT Unitized Stock Fund 31,598,577 12,420,504
Spartan Money Market Fund 10,051,809 8,049,833
Investco Blue Chip Growth Fund 784,985 -
Franklin Small Cap Growth Fund 1,294,380 -
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Total Investments $127,987,134 $98,384,023
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4. FUND INFORMATION
Changes in fair value of investments by fund are as follows for the years
ended December 31, 2000 and 1999:
2000 1999
Increase (Decrease) in Fair Value of Investments:
Capital Market Group Intermediate Fixed
Income Fund $ - $ (102,571)
Capital Market Group Small Capitalization
Growth Equity Fund - (306,532)
Capital Market Group Large Capitalization
Growth Equity Fund - 1,406,914
Capital Market Group International Equity
Investment Fund - (3,453)
Capital Market Group Large Capitalization
Value Equity Fund - 218,217
PIMCO Total Return Fund 286,547 (284,409)
Fidelity Puritan Fund 16,130 (13,202)
Fidelity Equity-Income II (1,603,697) (1,532,784)
Spartan U.S. Equity Index Fund (283,263) 129,784
Baron Asset Fund (660,143) 849,410
Fidelity Dividend Growth Fund 681,705 (884,898)
Fidelity OTC Portfolio (4,537,643) 800,272
UAM: FMA Small Company Portfolio 81,488 7,629
Fidelity Diversified International Fund (952,926) 1,448,288
IGT Unitized Stock Fund 18,367,324 (2,121,891)
Franklin Small Cap Growth Fund (292,004) -
Investco Blue Chip Growth Fund (381,708) -
Spartan Money Market Fund - (5,893)
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Total $10,721,810 $ (395,119)
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5. FEDERAL INCOME TAXES
The Plan received a determination letter dated January 21, 2000 from
the Internal Revenue Service qualifying it as an exempt organization under
Sections 401(a) and 501(a) of the Internal Revenue Code. Accordingly, no
provision for federal income taxes has been made in the accompanying
financial statements.
******
INTERNATIONAL GAME TECHNOLOGY PROFIT SHARING PLAN
SUPPLEMENTAL SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2000
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(b) (c) (d) (e)
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Maturity Interest Current
Description Date Rate Units Cost Value
Retirement Money Market Portfolio 16,469,861 $ 16,469,861 $ 16,469,861
PIMCO Total Return Fund 669,693 6,870,574 6,958,109
Fidelity Puritan Fund 78,409 1,464,179 1,476,447
Fidelity Equity-Income II 589,678 16,654,782 14,069,707
Spartan U.S. Equity Index Fund 60,852 3,016,535 2,848,466
Baron Asset Fund 172,685 9,544,360 9,392,356
Fidelity Dividend Growth Fund 656,005 19,538,590 19,653,917
Fidelity OTC Portfolio 173,572 10,818,988 7,125,136
UAM: FMA Small Company Portfolio 24,692 366,978 438,780
Fidelity Diversified International Fund 265,479 5,641,515 5,824,604
IGT Unitized Stock Fund 1,024,590 14,634,719 31,598,577
Spartan Money Market Fund 10,051,809 10,051,809 10,051,809
Franklin Small Cap Growth Fund 32,911 1,536,112 1,294,380
Investco Blue Chip Growth Fund 152,424 1,158,124 784,985
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Total investments 117,767,126 127,987,134
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Loan Fund 5,186,122 5,186,122
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Total investments and loan fund $122,953,248 $133,173,256
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Notes on Columns (a) through (e):
(a) Omitted from the Department of Labor format because the answer is none
(b) General description of investments
(c) Maturity dates and stated rates of interest are not applicable due to the
nature of these investments
(d) Purchase price of investments
(e) Fair market value of investments
The Plan. Pursuant to the requirements of the Securities Exchange Act
of 1934, the trustees (or other persons who administer the employee benefit
plan) have duly caused this annual report to be signed on its behalf by the
undersigned, thereunto duly authorized.
INTERNATIONAL GAME TECHNOLOGY
PROFIT SHARING PLAN
Date: June 28, 2001
By: /s/ Maureen T. Mullarkey
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Maureen T. Mullarkey
Senior Vice President and
Chief Financial Officer