Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2022 shares | |
Entity Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-36906 |
Entity Registrant Name | INTERNATIONAL GAME TECHNOLOGY PLC |
Entity Incorporation, State or Country Code | X0 |
Entity Address, Address Line One | 10 Finsbury Square, Third Floor |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | EC2A 1AF |
Entity Address, Country | GB |
Title of 12(b) Security | Ordinary Shares, nominal value $0.10 |
Trading Symbol | IGT |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 199,078,909 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001619762 |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Business Contact | |
Entity Information [Line Items] | |
Entity Address, Address Line One | IGT Center, 10 Memorial Boulevard |
Entity Address, City or Town | Providence |
Entity Address, Postal Zip Code | 02903 |
Contact Personnel Name | Christopher Spears |
City Area Code | 401 |
Local Phone Number | 392-1000 |
Contact Personnel Fax Number | (401) 392-4812 |
Contact Personnel Email Address | Christopher.Spears@IGT.com |
Entity Address, State or Province | RI |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Boston, Massachusetts |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 590 | $ 591 |
Restricted cash and cash equivalents | 150 | 218 |
Trade and other receivables, net | 670 | 903 |
Inventories, net | 254 | 183 |
Other current assets | 467 | 593 |
Total current assets | 2,131 | 2,487 |
Systems, equipment and other assets related to contracts, net | 899 | 937 |
Property, plant and equipment, net | 118 | 119 |
Operating lease right-of-use assets | 254 | 283 |
Goodwill | 4,482 | 4,656 |
Intangible assets, net | 1,375 | 1,413 |
Other non-current assets | 1,174 | 1,429 |
Total non-current assets | 8,302 | 8,836 |
Total assets | 10,433 | 11,322 |
Current liabilities: | ||
Accounts payable | 731 | 1,035 |
Current portion of long-term debt | 61 | 0 |
Short-term borrowings | 0 | 52 |
DDI / Benson Matter provision | 220 | 0 |
Other current liabilities | 837 | 828 |
Total current liabilities | 1,848 | 1,914 |
Long-term debt, less current portion | 5,690 | 6,477 |
Deferred income taxes | 305 | 368 |
Operating lease liabilities | 239 | 269 |
Other non-current liabilities | 372 | 323 |
Total non-current liabilities | 6,607 | 7,437 |
Total liabilities | 8,454 | 9,351 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Common stock, par value $0.10 per share; 205,952 shares issued and 199,079 shares outstanding at December 31, 2022; 205,188 shares issued and 203,688 outstanding at December 31, 2021 | 21 | 21 |
Additional paid-in capital | 2,199 | 2,329 |
Retained deficit | (1,164) | (1,439) |
Treasury stock, at cost; 6,873 shares and 1,500 shares at December 31, 2022 and December 31, 2021, respectively | (156) | (41) |
Accumulated other comprehensive income | 529 | 412 |
Total IGT PLC’s shareholders’ equity | 1,429 | 1,282 |
Non-controlling interests | 550 | 689 |
Total shareholders’ equity | 1,979 | 1,971 |
Total liabilities and shareholders’ equity | $ 10,433 | $ 11,322 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares issued (in shares) | 205,952,000 | 205,188,000 |
Common stock, shares outstanding (in shares) | 199,078,909 | 203,688,118 |
Treasury stock (in shares) | 6,873,000 | 1,500,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | $ 4,225 | $ 4,089 | $ 3,115 |
Selling, general and administrative | 814 | 810 | 707 |
Research and development | 255 | 238 | 191 |
Restructuring | 6 | 6 | 45 |
Goodwill impairment | 0 | 0 | 296 |
Other operating expense, net | 4 | 1 | 4 |
Total operating expenses | 3,303 | 3,187 | 3,223 |
Operating income (loss) | 922 | 902 | (107) |
Interest expense, net | 289 | 341 | 398 |
Foreign exchange loss (gain), net | 36 | (66) | 309 |
Other non-operating expense, net | 7 | 98 | 33 |
Total non-operating expenses | 333 | 373 | 740 |
Income (loss) from continuing operations before provision for income taxes | 589 | 529 | (848) |
Provision for income taxes | 175 | 274 | 28 |
Income (loss) from continuing operations | 414 | 255 | (875) |
Income from discontinued operations, net of tax | 0 | 24 | 37 |
Gain on sale of discontinued operations, net of tax | 0 | 391 | 0 |
Income from discontinued operations | 0 | 415 | 37 |
Net income (loss) | 414 | 670 | (839) |
Less: Net income attributable to non-controlling interests from continuing operations | 139 | 190 | 64 |
Less: Net loss attributable to non-controlling interests from discontinued operations | 0 | (2) | (5) |
Net income (loss) attributable to IGT PLC | $ 275 | $ 482 | $ (898) |
Net income (loss) from continuing operations attributable to IGT PLC per common share - basic (in dollars per share) | $ 1.36 | $ 0.32 | $ (4.59) |
Net income (loss) from continuing operations attributable to IGT PLC per common share - diluted (in dollars per share) | 1.35 | 0.31 | (4.59) |
Net income (loss) attributable to IGT PLC per common share - basic (in dollars per share) | 1.36 | 2.35 | (4.39) |
Net income (loss) attributable to IGT PLC per common share - diluted (in dollars per share) | $ 1.35 | $ 2.33 | $ (4.39) |
Weighted average shares, basic (in shares) | 201,825 | 204,954 | 204,725 |
Weighted average shares, diluted (in shares) | 203,414 | 206,795 | 204,725 |
Service | |||
Revenue | $ 3,359 | $ 3,483 | $ 2,640 |
Cost of services and product sales | 1,671 | 1,754 | 1,634 |
Product | |||
Revenue | 866 | 606 | 476 |
Cost of services and product sales | $ 554 | $ 377 | $ 346 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 414 | $ 670 | $ (839) |
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Foreign currency translation adjustments, net of tax | 90 | 28 | 128 |
Unrealized (loss) gain on hedges, net of tax | (1) | 3 | (1) |
Unrealized gain (loss) on other, net of tax | 1 | (1) | 0 |
Other comprehensive income, net of tax | 91 | 30 | 127 |
Comprehensive income (loss) | 505 | 700 | (712) |
Less: Comprehensive income attributable to non-controlling interests | 112 | 136 | 119 |
Comprehensive income (loss) attributable to IGT PLC | $ 392 | $ 564 | $ (831) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income (loss) | $ 414 | $ 670 | $ (839) |
Less: Income from discontinued operations, net of tax | 0 | 415 | 37 |
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities from continuing operations: | |||
Depreciation | 301 | 325 | 355 |
DDI / Benson Matter provision | 270 | 0 | 0 |
Amortization of upfront license fees | 193 | 216 | 210 |
Amortization | 191 | 201 | 211 |
Stock-based compensation | 41 | 35 | (7) |
Foreign exchange loss (gain), net | 36 | (66) | 309 |
Amortization of debt issuance cost | 15 | 19 | 21 |
Loss on extinguishment of debt | 13 | 92 | 28 |
Goodwill impairment | 0 | 0 | 296 |
Deferred income taxes | (77) | 38 | (78) |
Gain on sale of business | (278) | 0 | 0 |
Other non-cash items, net | (14) | (2) | (2) |
Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures: | |||
Trade and other receivables | 45 | (95) | 74 |
Inventories | (65) | (13) | 17 |
Accounts payable | (22) | (36) | 5 |
DDI / Benson Matter provision | (50) | 0 | 0 |
Accrued interest payable | (11) | (33) | (18) |
Accrued income taxes | (83) | 47 | 17 |
Other assets and liabilities | (20) | 27 | 32 |
Net cash provided by operating activities from continuing operations | 899 | 1,010 | 595 |
Net cash (used in) provided by operating activities from discontinued operations | 0 | (31) | 271 |
Net cash provided by operating activities | 899 | 978 | 866 |
Cash flows from investing activities | |||
Proceeds from sale of business, net of cash and restricted cash transferred | 476 | 0 | 0 |
Proceeds from sale of assets | 22 | 21 | 9 |
Business acquisitions, net of cash acquired | (142) | 0 | 0 |
Capital expenditures | (317) | (238) | (255) |
Other | 3 | 1 | 12 |
Net cash provided by (used in) investing activities from continuing operations | 42 | (216) | (233) |
Net cash provided by (used in) investing activities from discontinued operations | 126 | 852 | (35) |
Net cash provided by (used in) investing activities | 168 | 636 | (269) |
Cash flows from financing activities | |||
Principal payments on long-term debt | (597) | (2,846) | (959) |
Net (payments of) proceeds from short-term borrowings | (51) | (7) | |
Net (payments of) proceeds from short-term borrowings | 51 | ||
Payments of debt issuance costs | (10) | (14) | (22) |
Payments in connection with the extinguishment of debt | (9) | (85) | (25) |
Proceeds from long-term debt | 0 | 1,339 | 750 |
Net proceeds from (repayments of) Revolving Credit Facilities | 72 | 17 | (29) |
Net receipts from (payments of) financial liabilities | 75 | (50) | 67 |
Repurchases of common stock | (115) | (41) | 0 |
Dividends paid | (161) | (41) | (41) |
Dividends paid - non-controlling interests | (178) | (91) | (136) |
Return of capital - non-controlling interests | (75) | (127) | (32) |
Capital increase - non-controlling interests | 3 | 12 | 8 |
Other | (19) | (23) | (11) |
Net cash used in financing activities | (1,065) | (1,898) | (438) |
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | 2 | (284) | 159 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | (70) | (37) | 76 |
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period | 808 | 1,129 | 894 |
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period | 740 | 808 | 1,129 |
Less: Cash and cash equivalents and restricted cash and cash equivalents of discontinued operations | 0 | 0 | 23 |
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period of continuing operations | 740 | 808 | 1,106 |
Cash paid during the period for: | |||
Interest | 298 | 369 | 410 |
Income taxes | 335 | 188 | 89 |
Non-cash investing and financing activities: | |||
Capital expenditures | $ 99 | $ 26 | $ 24 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Millions | Total | Total IGT PLC Equity | Common Stock | Additional Paid-In Capital | Retained Earnings (Deficit) | Treasury Stock | Accumulated Other Comprehensive Income | Non Controlling Interests |
Balance, beginning of period at Dec. 31, 2019 | $ 2,485 | $ 1,658 | $ 20 | $ 2,396 | $ (1,020) | $ 0 | $ 263 | $ 827 |
Shares of common stock outstanding | ||||||||
Net (loss) income | (839) | (898) | (898) | 59 | ||||
Other comprehensive income (loss), net of tax | 127 | 67 | 67 | 59 | ||||
Comprehensive income (loss) | (712) | (831) | (898) | 67 | 119 | |||
Stock-based compensation | (7) | (7) | (7) | |||||
Capital increase | 9 | 9 | ||||||
Shares issued under stock award plans | (1) | (1) | (1) | |||||
Return of capital | (32) | (32) | ||||||
Dividends paid/declared | (178) | (41) | (41) | (138) | ||||
Other | (2) | (2) | (2) | 0 | ||||
Balance, end of period at Dec. 31, 2020 | 1,561 | 777 | 20 | 2,347 | (1,920) | 0 | 330 | 784 |
Shares of common stock outstanding | ||||||||
Net (loss) income | 670 | 482 | 482 | 188 | ||||
Other comprehensive income (loss), net of tax | 30 | 82 | 82 | (52) | ||||
Comprehensive income (loss) | 700 | 564 | 482 | 82 | 136 | |||
Stock-based compensation | 35 | 35 | 35 | |||||
Capital increase | 13 | 13 | ||||||
Shares issued under stock award plans | (12) | (12) | (12) | |||||
Divestiture of non-controlling interest | (30) | (30) | ||||||
Repurchases of common stock | (41) | (41) | (41) | |||||
Return of capital | (127) | (127) | ||||||
Dividends paid/declared | (132) | (41) | (41) | (91) | ||||
Other | 3 | 3 | ||||||
Balance, end of period at Dec. 31, 2021 | 1,971 | 1,282 | 21 | 2,329 | (1,439) | (41) | 412 | 689 |
Shares of common stock outstanding | ||||||||
Net (loss) income | 414 | 275 | 275 | 139 | ||||
Other comprehensive income (loss), net of tax | 91 | 117 | 117 | (27) | ||||
Comprehensive income (loss) | 505 | 392 | 275 | 117 | 112 | |||
Stock-based compensation | 41 | 41 | 41 | |||||
Capital increase | 3 | 3 | ||||||
Shares issued under stock award plans | (8) | (8) | (8) | |||||
Shares issued upon exercise of stock options | (2) | (2) | (2) | |||||
Repurchases of common stock | (115) | (115) | (115) | |||||
Return of capital | (76) | (76) | ||||||
Dividends paid/declared | (341) | (161) | (161) | (179) | ||||
Balance, end of period at Dec. 31, 2022 | $ 1,979 | $ 1,429 | $ 21 | $ 2,199 | $ (1,164) | $ (156) | $ 529 | $ 550 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business International Game Technology PLC (the “Parent”), together with its consolidated subsidiaries (collectively referred to as “IGT PLC,” the “Company,” “we,” “our,” or “us”), is a global leader in gaming that delivers entertaining and responsible gaming experiences for players across all channels and regulated segments, from Lotteries and Gaming Machines to Digital Gaming and Sports Betting. We operate and provide an integrated portfolio of innovative gaming technology products and services, including: lottery management services, online and instant lottery systems, gaming systems, instant ticket printing, electronic gaming machines, sports betting, digital gaming, digital lottery, and commercial services. Effective September 1, 2021, the Company adopted a new business segment structure focused on three business segments: Global Lottery, Global Gaming, and Digital & Betting. The Company will be referring to Digital & Betting as “PlayDigital” in these notes to the consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Preparation Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements are stated in millions of United States (“U.S.”) dollars (except share and per share data) unless otherwise indicated, and are computed based on the amounts in thousands. Certain amounts in columns and rows within tables may not foot due to rounding. Percentages and earnings per share amounts presented are calculated from the underlying unrounded amounts. On May 10, 2021 , the Company completed the sale of its Italian B2C gaming machine, sports betting, and digital gaming businesses (“Italian B2C businesses”), which met the criteria to be reported as a discontinued operation during the fourth quarter of 2020. As a result, the historical results of the Italian B2C businesses have been excluded from both continuing operations and segment results for all periods presented. Unless otherwise indicated, amounts and activity throughout these Consolidated Financial Statements are presented on a continuing operations basis. Refer to Note 3 - Business Acquisitions and Divestitures for further details. Principles of Consolidation The consolidated financial statements include the accounts of the Parent, our majority-owned or controlled subsidiaries, and any variable interest entities in which we are the primary beneficiary. Intercompany accounts and transactions have been eliminated in consolidation. Earnings or losses attributable to non-controlling interests in a subsidiary are included in net income (loss) in the consolidated statements of operations. Investments in which we have the ability to exercise significant influence, but do not control, and with respect to which we are not the primary beneficiary, are accounted for using the equity method of accounting. Equity investments in which we have no ability to exercise significant influence that do not have a readily determinable fair value and do not have a Net Asset Value per share are measured at cost, less impairment, plus or minus changes resulting from observable price changes. Equity method investments and equity investments in which we have no ability to exercise significant influence are included within other non-current assets in the consolidated balance sheets. Use of Estimates The preparation of our consolidated financial statements requires us to make estimates, judgments, and assumptions which affect the reported amounts of assets, liabilities, equity, revenues and expenses, and related disclosure of contingent liabilities. On an ongoing basis we evaluate our estimates, judgments, and methodologies. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities, and equity, and the amount of revenues and expenses. Accordingly, actual results and outcomes could differ from those estimates. New Accounting Standards - Recently Adopted There has not been any recently adopted accounting guidance for the year ended December 31, 2022 with a significant effect on the consolidated financial statements. New Accounting Standards - Not Yet Adopted In March 2022, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”). The amendments eliminate the troubled debt restructuring (“TDR”) recognition and measurement accounting model, and instead entities will evaluate the terms of a restructured financing agreement to determine whether it represents a new loan or a continuation of an existing loan. Although the TDR accounting model was eliminated, the financial difficulty criteria was retained to determine whether a restructuring should be disclosed under an expanded set of requirements about a creditor’s loan modification programs. In addition, the amendments will require entities to disclose current period gross write-offs by year of origination, also known as “vintage”. The TDR changes and vintage disclosure requirement would apply to the Company’s customer financing receivables. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, with early adoption permitted. We will adopt ASU 2022-02 upon the effective date and expect to apply all amendments prospectively. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). The amendments create an exception to the general recognition and measurement principal in ASC 805, Business Combinations to measure assets and liabilities acquired in a business combination at fair value. Instead, an acquirer in a business combination will be required to apply ASC 606 to recognize and measure contract assets and contract liabilities that result from contracts accounted for under ASC 606 on the acquisition date and will generally result in the acquirer recognizing amounts consistent with those recorded by the acquiree immediately before the acquisition date. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, with early adoption permitted. We will adopt ASU 2021-08 upon the effective date. We do not currently expect that any other recently issued accounting guidance will have a significant effect on the consolidated financial statements. Revenue We account for a contract with a customer when: we have written approval; the parties are committed to perform their respective obligations; the rights of the parties, including payment terms, are identified; the contract has commercial substance; and collection of consideration is probable. Performance obligations are identified at contract inception. A performance obligation is a promise in a contract with a customer to transfer products or services that are distinct. If we enter into two or more contracts at or near the same time, the contracts may be combined and accounted for as one contract, in which case we determine whether the services or products in the combined contract are distinct. A service or product that is promised to a customer is distinct if both of the following criteria are met: the customer can benefit from the service or product either on its own or together with other resources that are readily available to the customer; and our promise to transfer the service or product to the customer is separately identifiable from other promises in the contract. Revenue is recognized when (or as) control of a promised service or product transfers to a customer, in an amount that reflects the consideration (which represents the transaction price) to which we expect to be entitled in exchange for transferring that service or product. If the consideration promised in a contract includes a variable amount, we estimate the amount to which we expect to be entitled using either the expected value or most likely amount method. Our contracts may include terms that could cause variability in the consideration, including, for example, rebates, volume discounts, service-level penalties, and performance bonuses or other forms of contingent revenue. Our standard payment terms dictate that payment is due upon receipt of invoice, payable within 30 days. Invoices are generally issued as control transfers and/or as services are rendered. Additionally, in determining the transaction price, we adjust the promised amount of consideration for the effects of the time value of money if the payment terms are not standard and the timing of payments agreed to by the parties to the contract provide the customer or the Company with a significant benefit of financing, in which case the contract contains a significant financing component. Most arrangements that contain a significant financing component include explicit financing terms. We may include subcontractor services or third-party vendor services or products in certain arrangements. In these arrangements, revenue from sales of third-party vendor services or products are recorded net of costs when we are acting as an agent between the customer and the vendor, and gross when we are the principal for the transaction. To determine whether we are an agent or principal, we consider whether we obtain control of the services or products before they are transferred to the customer. In making this evaluation, several factors are considered, most notably whether we have primary responsibility for fulfillment to the customer, as well as inventory risk and pricing discretion. Additional information on revenue recognition is included in Note 4.- Revenue Recognition. Arrangements with Multiple Performance Obligations We often enter into contracts that consist of a combination of services and products based on the needs of our customers, which may include post-contract support for the software and a contract for post-warranty maintenance service for the hardware. These contracts consist of multiple services and products, whereby the hardware and software may be delivered in one period and the software support and hardware maintenance services are delivered over time. To the extent that a service or product in an arrangement with multiple performance obligations is subject to other specific accounting guidance, that service or product is accounted for in accordance with such specific guidance. For all other distinct services and products in these arrangements, the arrangement transaction price is allocated to each performance obligation on a relative standalone selling price basis or another method that depicts the amount of consideration to which we expect to be entitled in exchange for transferring the promised services or products. If the services and products are not distinct, we determine an appropriate measure of progress based on the nature of our overall promise for the single performance obligation. To the extent we grant the customer the option to acquire additional services or products in one of these arrangements, we account for the option as a distinct performance obligation in the contract only if the option provides a material right to the customer that it would not receive without entering into the contract (i.e., a significant discount incremental to the range of discounts typically given for the service or product), in which case the customer in effect pays in advance for the option to purchase future services or products. We allocate a portion of the transaction price to the material right and recognize revenue when those future services or products are transferred or when the option expires. Standalone Selling Price We allocate the transaction price to each performance obligation on a relative standalone selling price (“SSP”) basis. The SSP is the price at which we would sell a promised service or product separately to a customer. In some instances, we are able to establish SSP based on the observable prices of services or products sold separately in comparable circumstances to a similar customer. We typically establish an SSP range for our services and products that are reassessed on a periodic basis or when facts and circumstances change. In other instances, we may not be able to establish an SSP range based on observable prices, and we estimate the SSP by considering multiple factors including, but not limited to, overall market conditions, including geographic or regional specific factors, competitive positioning, competitor actions, internal costs, profit objectives, and pricing practices. Estimating SSP is a formal process that includes review and approval by management. Contract Costs Certain eligible, non-recurring costs incurred in the initial phases of service contracts are capitalized and amortized ratably over the expected period of benefit, which includes anticipated contract renewals or extensions. Recurring operating costs in these contracts are recognized as incurred. Practical Expedients and Exemptions We report revenue net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions. We generally expense incremental costs of obtaining a contract (e.g., sales commissions) when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses in our consolidated statements of operations. For certain of our long-term contracts, recoverable costs are capitalized and amortized on a straight-line basis over the expected customer relationship period. We do not account for significant financing components if the period between when we transfer the promised service or product to the customer and when the customer pays for that service or product will be one year or less. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) performance obligations for which we recognize variable revenue at the amount that we have the right to invoice for services performed, (iii) contracts for which variable consideration is accounted for in accordance with sales-based or usage-based royalty guidance, and (iv) wholly unperformed contracts. Contract Assets and Liabilities Contract assets and liabilities represent the difference in the timing of revenue recognition from invoicing or receipt of cash from our customers. Contract assets reflect revenue recognized in advance of invoicing our customer. Contract liabilities relate to payments received, based on the terms established in our contracts, in advance of revenue recognition. Advertising Advertising costs are expensed as incurred. Advertising expense was $28 million, $33 million, and $25 million for the years ended December 31, 2022, 2021, and 2020, respectively. Research and Development Costs Research and development costs (“R&D”), which principally include employee compensation costs, are expensed as incurred. Cash and Cash Equivalents Cash and cash equivalents consist primarily of highly liquid investments purchased with an original maturity of three months or less at the date of acquisition, such as bank deposits, money market funds, and interest bearing bank accounts with insignificant interest rate risk. The fair value of cash and cash equivalents approximates the carrying amount. Restricted Cash and Cash Equivalents We are required by gaming regulations to maintain sufficient reserves in restricted cash accounts to be used for the purpose of funding payments to WAP jackpot winners. These restricted cash balances are based primarily on the jackpot meters displayed to slot players, or for previously won jackpots, and vary by jurisdiction. Under our Italian Lotto contract, we deposit wagers, net of prizes paid and retailer commissions retained by the retailer at point of sale, into bank accounts, the use of which is restricted based on the contract with our customer. Restricted cash is also maintained for interactive digital player deposits, collections on factored and serviced receivables not yet paid through to the third-party owner, and for customer funds received in relation to the provision of our commercial services. These amounts are restricted based on the contracts with our customers or local regulations. Allowance for Credit Losses We maintain an allowance for credit losses on receivables resulting from the expected failure or inability of our customers to make required payments. The allowance is regularly reviewed by considering factors such as the creditworthiness of our customers, historical experience, aging of receivables, and current market and economic conditions, as well as management’s expectations of future conditions when appropriate. The allowance is deducted from the amortized cost basis of the receivable to present the net amount expected to be collected. We estimate expected credit losses on receivables on a collective (pool) basis when similar risk characteristics exist. Trade and other receivables and customer financing receivables represent the initial pools which are segregated further by business segment, geography, internal risk rating, and aging. The risk of loss is assessed over the contractual life of the receivables and we adjust historical loss rates for current and future conditions based on qualitative considerations. The expected loss rate for each receivable pool is applied to the aggregate receivable balance to determine the allowance requirement. Receivables are written off against the allowance in the period they are determined to be uncollectible. We determine delinquency based on the contractual payment terms. An account may be considered delinquent if there are unpaid balances remaining on the account the day after the contractual due date. For amounts due from certain government customers in the Global Lottery business segment, we have not established an allowance as we have no expectation of loss based on a long history of no credit losses and the explicit guarantee of a sovereign entity. Inventories Inventories are stated at the lower of cost (applying the first in, first out method) and net realizable value. Allowances are made for defective, obsolete, or excess inventory. Upfront License Fees We periodically make long-term investments in contracts with customers and obtain licenses to supply products and services to our customers. As consideration, we pay license fees, which are classified as other non-current assets in the consolidated balance sheets. We recognize the amortization of the license fees as a reduction of service revenue over the estimated economic life of the license term. This method reflects the pattern in which economic benefits are expected to be realized. The recoverability of each payment is subject to significant estimates about future revenues related to the contracts’ future cash flows. We evaluate these assets for impairment and update amortization rates on an agreement by agreement basis. The assets are reviewed for impairment whenever events or changes in circumstances indicate their carrying amount may not be recoverable. In periods in which payments are made to the customer, we classify the payment as a cash outflow from operating activities in the consolidated statements of cash flows. Fair Value Measurements We account for certain financial assets and liabilities at fair value. Financial assets and liabilities are categorized, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the use of observable inputs and the lowest priority to the use of unobservable inputs. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. These levels are as follows: • Level 1 - inputs are based upon unadjusted quoted prices for identical instruments in active markets • Level 2 - inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the instruments • Level 3 - inputs are unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability Derivative Financial Instruments We use derivative financial instruments for the management of foreign currency risks. We do not enter into derivatives for speculative purposes. Derivatives are recognized as either assets or liabilities in the consolidated balance sheet at fair value. All derivatives are recorded gross, except netting of foreign exchange contracts and counterparty netting of interest receivable and payable related to interest rate swaps, as applicable. The accounting for changes in the fair value of a derivative depends on the nature of the hedge and the hedge effectiveness. Derivative gains and losses are reported in the consolidated statements of cash flows consistent with the classification of the cash flows from the underlying hedged items. For derivative instruments designated as cash flow hedges, gains and losses are recorded in other comprehensive income (loss) and are subsequently reclassified when the hedged item affects earnings. At that time, the amount is reclassified from other comprehensive income (loss) to the same income statement line as the earnings effect of the hedged item. Derivative instruments not designated as hedges are recognized in the consolidated balance sheet at fair value with the changes in fair value recorded in foreign exchange loss (gain), net in the consolidated statements of operations. Systems, Equipment and Other Assets Related to Contracts, Net and Property, Plant and Equipment, Net We have two categories of fixed assets: systems, equipment and other assets related to contracts (“Systems & Equipment”) and property, plant and equipment (“PPE”). Systems & Equipment are assets that primarily support our operating contracts, FMCs, and WAP systems (collectively, the “Contracts”) and are principally composed of lottery and gaming assets, including those that are accounted for as operating leases with our customers. PPE are assets we use internally, not associated with Contracts, primarily related to production and assembly, selling, general and administration, and R&D. Systems & Equipment and PPE are stated at cost, net of accumulated depreciation and accumulated impairment loss, if any. Costs incurred for Systems & Equipment and PPE not yet placed into service are classified as construction in progress and are not depreciated until placed in service. Depreciation is recognized on a straight-line basis over the estimated useful lives of the assets. Repair and maintenance costs are expensed as incurred, whereas major improvements that increase asset values and extend useful lives are capitalized. Systems & Equipment and PPE are tested for impairment whenever events or changes in circumstances indicate the carrying amount of those assets may not be recoverable. An impairment loss is recognized only if the carrying amount is not recoverable and exceeds its fair value. The carrying amount is not recoverable if it exceeds the sum of the undiscounted forecasted cash flows resulting from the use and eventual disposition of such asset. An impairment loss is measured as the amount by which the carrying amount exceeds its fair value. Leases We determine whether a contract is or contains a lease at inception. As a lessee, we recognize right-of-use (“ROU”) assets and lease liabilities on the lease commencement date based on the present value of lease payments over the lease term. ROU assets also include any upfront lease payments or initial direct costs and are adjusted for lease incentives received. We consider renewal and termination options, including whether they are reasonably certain to be exercised, in determining the lease term and establishing the ROU assets and lease liabilities. ROU assets and lease liabilities are calculated using our incremental borrowing rate, which is based on the lease currency and length of the lease, unless the implicit rate is determinable. Most of our lease contracts contain both lease and non-lease components. As a lessee, we combine lease and non-lease components into a single lease component for all classes of underlying assets except certain communication equipment. For certain communication equipment, we allocate the consideration between lease and non-lease components based on relative standalone price. Lease expense is recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred except for certain rent payments that depend on an index, which are included in lease payments using the index rate in effect as of the lease commencement date. Short-term leases, which are leases with an initial term of 12 months or less with no purchase options that are reasonably certain of exercise, are not recognized on the balance sheet. The rental payments are recognized as lease expense on a straight-line basis over the lease term. Certain of our long term lottery and commercial gaming service arrangements include leases for equipment installed at customer locations. As the lessor, we combine lease and non-lease components for all classes of underlying assets in arrangements that involve operating leases. The single combined component is accounted for under ASC 842, Leases , or ASC 606, Revenue from Contracts with Customers (“ASC 606”), depending on which component is the predominant component in the arrangement. If a component cannot be combined, the consideration is allocated between the lease component and the non-lease component based on relative standalone selling price. Goodwill The assets and liabilities of acquired businesses are recorded under the acquisition method of accounting at their estimated fair values at the date of acquisition. Goodwill represents costs in excess of fair values assigned to the underlying identifiable net assets of acquired businesses, and is stated at cost less accumulated impairment losses. Goodwill has been allocated to and is tested for impairment at the reporting unit level, which is the same level as our operating segments. We evaluate our reporting units annually and if necessary, reassign goodwill using a relative fair value approach. As of December 31, 2022 we have identified three reporting units: Global Lottery, Global Gaming, and PlayDigital. Goodwill is tested for impairment annually, in the fourth quarter, or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. The goodwill impairment test compares the fair value of a reporting unit with its carrying amount and an impairment loss is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. In performing the goodwill impairment test, we estimate the fair value of the reporting units using an income approach based on projected discounted cash flows. We have the option to first assess various qualitative factors (commonly referred to as “Step 0”) to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount and whether a quantitative analysis is necessary. If the Company does not elect to perform Step 0, it can voluntarily proceed directly to Step 1. In Step 1, the Company performs a quantitative analysis to compare the fair value of its reporting unit to its carrying value including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not considered impaired, and the Company is not required to perform further testing. If the carrying value of a reporting unit exceeds its fair value, then the Company would record an impairment loss equal to the difference. Capitalized Software Development Costs Costs incurred in the development of our externally-sold software products are expensed as incurred, except certain software development costs eligible for capitalization. Software development costs incurred subsequent to establishing technological feasibility and through the general release of the software products are capitalized. Capitalized costs are amortized over the products’ estimated useful life to cost of product sales in the consolidated statements of operations. Costs incurred during the application development phase of software for services provided to customers are capitalized as internal-use software and amortized over the useful life to cost of services in the consolidated statements of operations. Costs incurred during the application development of software for internal use, and not for use in services provided to customers, are capitalized and amortized over the useful life to selling, general and administrative expenses in the consolidated statements of operations. Intangible Assets Intangible assets, which include indefinite-lived and definite-lived intangible assets, are stated at cost, less accumulated amortization and accumulated impairment losses. Indefinite-lived intangible assets are composed of trademarks for which there is no foreseeable limit of the period over which they are expected to generate net cash inflows. Definite-lived intangible assets, which are primarily composed of customer relationships and computer software and game library, are capitalized and amortized on a straight-line basis over their estimated useful lives. Estimated useful lives are determined considering the period the assets are expected to contribute to future cash flows. Amortization of intangibles is included in cost of services, cost of product sales or selling, general and administrative expenses in the consolidated statement of operations depending on the use and nature of the asset. Indefinite-lived intangible assets, other than goodwill, are tested for impairment annually, in the fourth quarter, or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. We first perform a qualitative assessment to determine whether it is more likely than not that the fair value of indefinite-lived intangible assets are less than their carrying amount and whether the quantitative analysis is necessary. The quantitative analysis compares the fair value of indefinite-lived intangible assets to their carrying amount and an impairment loss is recognized when the carrying amount exceeds the fair value. Income Taxes Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the tax basis of assets and liabilities and their reported amounts using the enacted tax rates in effect for the year in which the differences are expected to reverse. Tax credits are generally recognized as reductions of income tax provisions in the year in which the credits arise. The measurement of deferred tax assets is reduced by a valuation allowance if, based upon available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The effect of a change in income tax rates is recognized as income or expense in the period that includes the enacted or substantively enacted date. Accounting for uncertainty in income taxes recognized in the consolidated financial statements is in accordance with accounting authoritative guidance, which prescribes a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more likely than not” to be sustained, the tax position is then assessed to determine the amount of the benefit to recognize in the consolidated financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50 percent likelihood of being realized upon ultimate settlement. We recognize interest and penalties related to unrecognized tax benefits in provision for income taxes in the consolidated statement of operations. Accrued interest and penalties are included within other non-current liabilities in the consolidated balance sheets. We use the period cost method for global intangible low-taxed income (“GILTI”) provisions and therefore have not recorded deferred taxes for basis differences expected to reverse in future periods. A provision for foreign withholding taxes has not been recorded on undistributed profits of the company’s subsidiaries that are determined to be indefinitely reinvested. If management intentions change in the future, there may be a significant impact on the provision for income taxes in the period the change occurs. WAP Jackpot Accounting We incur costs to fund jackpots and accrue jackpot liabilities with every wager on devices connec |
Business Acquisitions and Dives
Business Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisitions and Divestitures | Business Acquisitions and Divestitures Business Acquisitions On July 1, 2022, the Company completed the acquisition of iSoftBet by purchasing 100% of the equity interests in certain entities of the iSoftBet group for cash consideration of €162 million (inclusive of €20 million deposited into an escrow account) and contingent consideration of up to €4 million. The Company funded the acquisition through a combination of cash on hand and utilization of its revolving credit facility. The acquisition of iSoftBet provides market-tested proprietary digital content, advanced game aggregation capabilities, scalable promotional tools, analytics, and creative talent to the PlayDigital segment. The financial results of iSoftBet have been included within our PlayDigital segment in our consolidated financial statements since the date of purchase. The allocation of the purchase price to goodwill is subject to refinement during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions that existed at the acquisition date becomes available. Adjustments in the purchase price allocation may require a change in the amounts allocated to goodwill during the periods in which the adjustments are determined. The major classes of assets and liabilities to which the Company has allocated the purchase price based on information as of the acquisition date and available at December 31, 2022 were as follows: (€ millions) Notes July 1, 2022 Current assets 18 Intangible assets 14 59 Non-current assets 3 Total identifiable assets acquired 80 Current liabilities (10) Non-current liabilities (22) Total liabilities assumed (31) Net identifiable assets acquired 49 Goodwill 13 117 Total purchase price 166 Divestitures On September 14, 2022, the Company completed the sale of 100% of the share capital of Lis Holding S.p.A., a wholly owned subsidiary of IGT Lottery S.p.A. that conducted the Company’s Italian commercial services business, to PostePay S.p.A. – Patrimonio Destinato IMEL, for a purchase price of €700 million. The consideration received, net of €198 million cash and restricted cash transferred and €23 million of selling costs, was €479 million and resulted in a pre-tax gain on sale of $278 million, ($276 million net of tax) which is classified within Other non-operating (income) expense, net. The disposal group was a component of continuing operations within our Global Lottery segment through the closing date. The funds received at closing were used to pay transaction expenses and fund the partial tenders of the 3.500% Senior Secured Euro Notes due July 2024 and 6.500% Senior Secured U.S. Dollar Notes due February 2025. Refer to Note 15 - Debt for further information. The Company has continuing involvement with the business sold via a transition services agreement (“TSA”). As part of the TSA, the Company provides various telecommunications, information technology, and back-office services for which the Company receives compensation. These services generally expire after no more than four (4) years. Discontinued Operations On May 10, 2021, the Company completed the sale of its Italian B2C businesses, which were previously reported under the Global Gaming segment and met the criteria to be reported as a discontinued operation during the fourth quarter of 2020, for a cash purchase price of €950 million (€725 million of which was paid at closing, €100 million of which was paid on August 5, 2021, and the remaining €125 million of which was paid on July 13, 2022). The funds received at closing were used to pay transaction expenses and partially fund the redemption of the 4.750% Senior Secured Euro Notes due February 2023 in full pursuant to the exercise of the make-whole call option. The consideration received, net of $139 million of cash and restricted cash transferred, was $1.0 billion and resulted in a pre-tax gain on sale of $396 million ($391 million net of tax). Summarized financial information for discontinued operations is shown below (there are no discontinued operations during 2022): For the year ended December 31, ($ in millions) 2021 2020 Total revenue 74 429 Operating income (1) 24 51 Income from discontinued operations before provision for (benefit from) income taxes 23 43 (Benefit from) provision for income taxes on discontinued operations (1) 7 Gain on sale of discontinued operations before provision for income taxes 396 — Provision for income taxes on sale of discontinued operations 5 — Gain on sale of discontinued operations, net of tax 391 — Income from discontinued operations 415 37 Less: Net loss attributable to non-controlling interests from discontinued operations (2) (5) Income from discontinued operations attributable to IGT PLC 417 41 (1) There was no depreciation and amortization in 2021. Includes depreciation and amortization of $95 million for the year ended 2020. The Company has continuing involvement with the businesses via a TSA. As part of the TSA, the Company provides various telecommunications and information technology for which the Company receives compensation. These services generally expire after one year. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following tables summarize revenue disaggregated by business segment and the source of the revenue for the years ended December 31, 2022, 2021, and 2020: For the year ended December 31, 2022 ($ in millions) Global Lottery Global Gaming PlayDigital Total Operating and facilities management contracts 2,181 — — 2,181 Gaming terminal services — 483 — 483 PlayDigital services — — 209 209 Systems, software, and other 255 232 — 487 Service revenue 2,436 714 209 3,359 Lottery products 157 — — 157 Gaming terminals — 501 — 501 Other — 208 1 209 Product sales 157 709 1 866 Total revenue 2,593 1,423 209 4,225 For the year ended December 31, 2021 ($ in millions) Global Lottery Global Gaming PlayDigital Total Operating and facilities management contracts 2,363 — — 2,363 Gaming terminal services — 424 — 424 PlayDigital services — — 163 163 Systems, software, and other 327 206 — 534 Service revenue 2,690 630 163 3,483 Lottery products 123 — — 123 Gaming terminals — 339 — 339 Other — 143 1 144 Product sales 123 482 1 606 Total revenue 2,812 1,112 165 4,089 For the year ended December 31, 2020 ($ in millions) Global Lottery Global Gaming PlayDigital Total Operating and facilities management contracts 1,744 — — 1,744 Gaming terminal services — 298 — 298 PlayDigital services — — 114 114 Systems, software, and other 299 186 — 484 Service revenue 2,043 483 114 2,640 Lottery products 121 — — 121 Gaming terminals — 205 — 205 Other — 148 1 149 Product sales 121 354 1 476 Total revenue 2,164 837 115 3,115 Sources of Revenue Service Revenue Service revenue is derived from the following sources: • Operating and facilities management contracts; • Gaming terminal services; • PlayDigital services; and • Systems, software, and other Operating and facilities management contracts – Global Lottery Our revenue from operating contracts is derived primarily from long-term exclusive operating licenses in Italy. Under operating contracts, we manage all the activities along the lottery value chain including collecting wagers, paying out prizes, managing all accounting and other back-office functions, running advertising and promotions, operating data transmission networks and processing centers, training staff, providing retailers with assistance, and supplying materials for the game. In most cases, the arrangement is accounted for as a single performance obligation composed of a series of distinct services that are substantially the same and have the same pattern of transfer (i.e., distinct days of service). Under operating contracts, we typically satisfy the performance obligation and recognize revenue over time because the customer simultaneously receives and consumes the benefits provided as we perform the services. The amount of consideration to which we are typically entitled is variable based on a percentage of sales. Revenue is typically recognized in the amount that we have the right to invoice the customer as this corresponds directly with the value to the customer of our performance completed to date. In arrangements where we are performing services on behalf of the government and the government is considered our customer, revenue is recognized net of prize payments, taxes, retailer commissions, and remittances to state authorities. Under operating contracts, we are generally required to pay an upfront license fee. Refer to the Upfront License Fees policy above for further details. Our revenue from FMCs is generated by assembling, installing, and operating the online lottery system and related point-of-sale equipment. Under a typical FMC, we maintain ownership of the technology and are responsible for capital investments throughout the duration of the contract. FMCs typically include a wide range of support services that are provided throughout the contract and are part of the integrated solution that the customer has contracted to obtain. In most cases, the arrangement is accounted for as a single performance obligation composed of a series of distinct services that are substantially the same and that have the same pattern of transfer. Under FMCs, we typically satisfy the performance obligation and recognize revenue over time because the customer simultaneously receives and consumes the benefits provided as we perform the services. The amount of transaction price to which we are entitled is typically variable based on a percentage of sales, although under certain of its agreements, the Company receives fees based on a fixed fee arrangement. Revenue is typically recognized in the amount that we have the right to invoice the customer, as this corresponds directly with the value to the customer of our completed performance. Gaming terminal services – Global Gaming Our revenue from gaming terminal services is generated by providing customers with proprietary land-based gaming systems and equipment under a variety of recurring revenue or lease arrangements, including a percentage of amounts wagered, a percentage of net win, or a fixed daily/monthly fee. Included in gaming terminal services are wide area progressive (“WAP”) systems. WAP systems consist of linked slot machines located in multiple casino properties, connected to a central computer system. WAP systems include a Company-sponsored progressive jackpot that increases with every wager until a player wins the top award combination. Casinos with WAP machines pay a percentage of amounts wagered for services related to the design, assembly, installation, operation, maintenance, and marketing of the WAP systems, as well as funding and administration of Company-sponsored progressive jackpots. A portion of the total fee collected is allocated to the WAP jackpot. Since the jackpot is a payment to the customer, the portion allocated to the jackpot is classified as a reduction of revenue. In some arrangements, there is a single performance obligation composed of a series of distinct services that are substantially the same and that have the same pattern of transfer (i.e., distinct days of service). The amount of transaction price to which we are entitled typically is variable based on a percentage of wagers. This results in revenue recognition that corresponds with the value to the customer for the services transferred in the amount that we have the right to invoice. In other arrangements where the end customer is the player, we record revenue net of prize payouts once the wagering outcome has been determined. PlayDigital services – PlayDigital We generate revenue from our iGaming solutions by providing gaming operators a license to offer IGT remote game server games on the operator websites and mobile applications. We typically offer customers a usage-based license under which we receive a fee based on the net gaming revenue derived by the operator attributable to the IGT remote game server games. Revenue is typically recognized when the usage occurs. We provide sports betting technology and services to commercial and tribal operators and lotteries in regulated markets, primarily in the U.S. In the service contracts to our U.S. licensed sportsbook operators, we host a sports betting platform and a variety of services including installation, configuration and integration services. For customers who want to have an outsourcing model, we also offer trading services with the inclusion of odds setting and risk management. Under these contracts, we generally record a percentage of net sports revenue over the contractual term. Systems, software, and other – Global Lottery Our lottery contracts generally include other services, including telephone support, software maintenance, hardware maintenance, and the right to receive unspecified upgrades or enhancements on a when-and-if-available basis, and other professional services including software development. Fees earned for other services are generally recognized as service revenue in the period the service is performed (i.e., over the support period). We also develop technology to enable lotteries to offer commercial services over their existing lottery infrastructure or over standalone networks separate from the lottery. Leveraging our distribution network and secure transaction processing, we offer high-volume processing of commercial transactions including prepaid cellular telephone recharges, bill payments, e-vouchers and retail-based programs, electronic tax payments, stamp duty services, prepaid card recharges, and money transfers. These services are primarily offered outside of North America. In most cases, these arrangements are considered to be short in duration. The amount of transaction price that we are typically entitled to is variable based on the number of transactions processed. Revenue is typically recognized in the amount that we have the right to invoice the customer as this corresponds directly with the value to the customer of our completed performance. Systems, software, and other – Global Gaming Our gaming contracts generally include other services, including telephone support, software maintenance, content licensing, royalty fees, hardware maintenance, and the right to receive unspecified updates or enhancements on a when-and-if-available basis, and other professional services. We also generate revenue from other services, including video central system monitoring, system support, and sales or usage-based licensing of intellectual property. Fees earned for other services are generally recognized as service revenue in the period the service is performed (i.e., over the support period). Product Sales Product sales are derived from the following sources: • Lottery products; • Gaming terminals; and • Other Lottery products – Global Lottery Lottery products revenue primarily includes the sale of lottery equipment, lottery systems and printed products. Our revenue from the sale or sales-type lease of lottery systems and equipment typically includes multiple performance obligations, where we assemble, sell, deliver, and install a turnkey system (inclusive of point-of-sale terminals, if applicable) or deliver equipment and license the computer software for a fixed price, and the customer subsequently operates the system or equipment. Our credit terms are predominantly short-term in nature. We also grant extended payment terms under contracts where the sale is typically secured by the related equipment sold. Revenue from the sale of lottery systems and equipment is recognized based upon the contractual terms of each arrangement. These arrangements generally include customer acceptance provisions and general rights to terminate the contract if we are in breach of the contract or at the convenience of the customer. In some arrangements, the performance obligation is satisfied over time if the customer controls the asset as it is created (i.e., when the asset is built at the customer site) or if our performance does not create an asset with an alternative use and we have an enforceable right to payment plus a reasonable profit for performance completed to date. If revenue is not recognized over time, it is generally recognized upon transfer of physical possession of the goods or the satisfaction of customer acceptance provisions. If the transaction includes multiple performance obligations, it is accounted for under arrangements with multiple performance obligations, discussed below. Our other lottery product sales are primarily derived from the production and sales of instant ticket games under multi-year contracts. In these arrangements, the performance obligation is generally satisfied at a point in time (i.e., upon transfer of control of the game tickets to the customer) based on the contractual terms of each arrangement. Gaming terminals – Global Gaming Our revenue from the sale or sales-type lease of gaming terminals includes embedded game content, machine related equipment, licensing and royalty fees, and component parts. Our credit terms are predominantly short-term in nature. We also grant extended payment terms under contracts where the sale is typically secured by the related equipment sold. Revenue from the sale of gaming machines is recognized based upon the contractual terms of each arrangement, but predominantly upon transfer of physical possession of the goods or the lapse of customer acceptance provisions. If the sale of gaming machines includes multiple performance obligations, these arrangements are accounted for under arrangements with multiple performance obligations, discussed below. Other – Global Gaming Other gaming product revenue is primarily comprised of gaming system sales, content licensing, perpetual or long-term software licenses, non-machine related equipment and component parts (including game themes and electronic conversion kits). Our revenue from the sale of gaming systems typically includes multiple performance obligations, where we sell, deliver, and install a turnkey system or deliver equipment and license the computer software for a fixed price, and the customer subsequently operates the system. These arrangements generally include customer acceptance provisions and general rights to terminate the contract if we are in breach of the contract. Such arrangements include hardware, software, and professional services. In these arrangements, the performance obligation is generally satisfied upon transfer of physical possession of the goods or the satisfaction of customer acceptance provisions. Other – PlayDigital Other PlayDigital product revenue is primarily comprised of perpetual software licenses, the sale of equipment, and component parts. Contract Balances Information about contract assets and contract liabilities is as follows: ($ in millions) December 31, 2022 December 31, 2021 Balance Sheet Classification Contract assets: Current 69 49 Other current assets Non-current 81 69 Other non-current assets 150 118 Contract liabilities: Current (91) (104) Other current liabilities Non-current (49) (47) Other non-current liabilities (139) (151) The amount of revenue recognized during the years ended December 31, 2022, 2021, and 2020 that was included in the contract liabilities balance at the beginning of each period was $98 million, $107 million, and $56 million, respectively . Transaction Price Allocated to Remaining Performance Obligations At December 31, 2022, the transaction price allocated to unsatisfied performance obligations for contracts expected to be greater than one year, or performance obligations for which we do not have a right to consideration from the customer in the amount that corresponds to the value to the customer for our performance completed to date, variable consideration which is not accounted for in accordance with the sales-based or usage-based royalties guidance, or contracts which are not wholly unperformed, is approximately $972 million. Of this amount, we expect to recognize as revenue approximately 30% within the next 12 months, approximately 37% between 13 and 36 months, approximately 16% between 37 and 60 months, and the remaining balance through December 31, 2031. |
Trade and Other Receivables, ne
Trade and Other Receivables, net | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Trade and Other Receivables, net | Trade and Other Receivables, net Trade and other receivables are recorded at amortized cost, net of allowance for credit losses, and represent a contractual right to receive money on demand or on fixed or determinable dates that are typically short-term with payment due within 90 days or less. December 31, ($ in millions) 2022 2021 Trade and other receivables, gross 680 917 Allowance for credit losses (11) (15) Trade and other receivables, net 670 903 The following table presents the activity in the allowance for credit losses: December 31, ($ in millions) 2022 2021 2020 Balance at beginning of year (15) (16) (22) (Provisions) recoveries, net — (2) (6) Amounts written off as uncollectible 3 2 10 Other (1) — — 3 Balance at end of year (11) (15) (16) (1) Includes the effect of the adoption of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments (“ASC 326”) in 2020. We enter into various factoring agreements with third-party financial institutions to sell certain of our trade receivables. We factored trade receivables of $266 million and $325 million (gross receivables of $1.4 billion and $1.1 billion) during the years ended December 31, 2022 and 2021, respectively, under these factoring arrangements, which reduced trade receivables. The cash received from these arrangements is reflected as net cash provided by operating activities in the consolidated statements of cash flows. In certain of these factoring arrangements, for ease of administration, we will collect customer payments related to the factored trade receivables, which we then remit to the financial institutions. At December 31, 2022 and 2021, we had $126 million and $57 million, respectively, that was collected on behalf of the financial institutions and recorded as other current liabilities in the consolidated balance sheets. The net cash flows relating to these collections are reported in financing activities in the consolidated statements of cash flows. |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net December 31, ($ in millions) 2022 2021 Raw materials 165 107 Work in progress 24 25 Finished goods 87 78 Inventories, gross 276 211 Obsolescence reserve (22) (28) Inventories, net 254 183 The following table presents the activity in the obsolescence reserve: December 31, ($ in millions) 2022 2021 2020 Balance at beginning of year (28) (43) (34) Provisions, net (2) (1) (34) Amounts written off 7 11 24 Other 1 4 1 Balance at end of year (22) (28) (43) |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other Current Assets December 31, ($ in millions) Notes 2022 2021 Customer financing receivables, net 143 170 Income taxes receivable 98 64 Contract assets 4 69 49 Prepaid expenses 44 54 Other tax receivables 28 17 Value-added tax receivable 25 28 Deferred costs 23 28 Other receivables 5 158 Other 32 25 467 593 Other Non-Current Assets December 31, ($ in millions) Notes 2022 2021 Upfront license fees, net: Italian Scratch & Win 545 680 Italian Lotto 266 380 New Jersey 57 66 Rhode Island 27 — Indiana 8 9 903 1,134 Contract assets 4 81 69 Customer financing receivables, net 76 92 Deferred income taxes 18 38 39 Finance lease right-of-use assets 11 23 29 Other 52 66 1,174 1,429 Upfront License Fees The upfront license fees are being amortized on a straight-line basis as follows: Upfront License Fee License Term Amortization Start Date Rhode Island 20 years, 6 months January 2023 Italian Scratch & Win 9 years October 2019 Italian Lotto 9 years December 2016 New Jersey 15 years, 9 months October 2013 Indiana 15 years July 2013 Customer Financing Receivables Customers' payment terms for customer financing receivables are confirmed with a written financing contract, lease contract, or promissory note and a security agreement is typically signed by the parties granting the Company a security interest in the related products sold or leased. Customer financing interest income is recognized based on market rates prevailing at issuance. Customer financing receivables are recorded at amortized cost, net of any allowance for credit losses, and are classified in the consolidated balance sheets as follows: December 31, 2022 ($ in millions) Current Assets Non-Current Assets Total Customer financing receivables, gross 184 87 271 Allowance for credit losses (42) (11) (52) Customer financing receivables, net 143 76 219 December 31, 2021 ($ in millions) Current Assets Non-Current Assets Total Customer financing receivables, gross 220 111 332 Allowance for credit losses (51) (20) (71) Customer financing receivables, net 170 92 261 The following table presents the activity in the allowance for credit losses: December 31, ($ in millions) 2022 2021 2020 Balance at beginning of year (71) (50) (32) Provisions, net 8 (29) (37) Amounts written off as uncollectible 10 8 24 Other (1) — — (5) Balance at end of year (52) (71) (50) (1) Includes the effect of the adoption of ASC 326 in 2020. The Company’s customer financing receivable portfolio is composed of customers primarily within the Global Gaming business segment. We internally assess the credit quality of customer financing receivables using a number of factors, including, but not limited to, credit scores obtained from external providers, trade references, bank references, and historical experience. Risk profiles differ based on customer location and are pooled as North America, Latin America and the Caribbean (“LAC”), and Europe, Middle East and Africa and Asia Pacific (“EMEA & APAC”). The customer financing receivables at amortized cost by year of origination and the geography credit quality indicator at December 31, 2022 are as follows: Year of Origination ($ in millions) 2022 2021 2020 2019 Prior Total North America 39 10 12 5 — 66 EMEA & APAC 35 18 7 9 2 72 LAC 28 16 6 61 22 133 102 44 26 75 24 271 The past due balance, which represents installments that are one day or more past their contractual due date, of customer financing receivables at amortized cost and the geography credit quality indicator at December 31, 2022 is as follows: ($ in millions) North America LAC EMEA & APAC Total Past due 2 45 15 62 Short-term portion not yet due 38 54 30 123 Long-term portion not yet due 26 33 27 87 66 133 72 271 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis As of December 31, 2022, the carrying amounts of financial assets and liabilities measured at fair value included derivative assets, equity investments, derivative liabilities, and contingent consideration of $1 million, $6 million, $3 million, and $4 million, respectively. As of December 31, 2021, there were derivative assets, equity investments, and derivative liabilities of $3 million, $6 million, and $2 million, respectively. Financial Assets and Liabilities Not Carried at Fair Value The carrying amounts and fair value hierarchy classification of our significant financial assets and liabilities not carried at fair value as of December 31, 2022 and 2021 are as follows: December 31, 2022 ($ in millions) Carrying Level 1 Level 2 Level 3 Total Fair Value Assets: Customer financing receivables, net 219 — — 211 211 Equity investments 9 — — 9 9 Liabilities: Jackpot liabilities 170 — — 135 135 Debt (1) 5,750 — 5,576 — 5,576 December 31, 2021 ($ in millions) Carrying Level 1 Level 2 Level 3 Total Fair Value Assets: Customer financing receivables, net 261 — — 245 245 Equity investments 11 — — 11 11 Liabilities: Jackpot liabilities 196 — — 184 184 Debt (1) 6,477 — 6,792 — 6,792 (1) Excludes short-term borrowings and swap adjustments. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative hedging instruments, principally foreign currency forward contracts and interest rate swaps, for the purpose of managing currency risks and interest rate risk arising from our operations and sources of financing. Cash Flow Hedges The notional amount of foreign currency forward contracts, designated as cash flow hedges, outstanding at December 31, 2022 and 2021 were $94 million and $42 million, respectively. The amount recorded within other comprehensive income (loss) at December 31, 2022 is expected to impact the consolidated statement of operations in 2023. Derivatives Not Designated as Hedging Instruments The notional amount of foreign currency forward contracts, not designated as hedging instruments, outstanding at December 31, 2022 and 2021 was $212 million and $283 million, respectively. Refer to Note 20 - Shareholders’ Equity - Accumulated Other Comprehensive Income for further information. |
Systems, Equipment and Other As
Systems, Equipment and Other Assets Related to Contracts, net and Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |
Systems, Equipment and Other Assets Related to Contracts, net and Property Plant and Equipment, net | Systems, Equipment and Other Assets Related to Contracts, net and Property, Plant and Equipment, net Systems & Equipment and PPE, net consist of the following: Systems & Equipment, net PPE, net December 31, December 31, ($ in millions) 2022 2021 2022 2021 Land — — 1 1 Buildings — — 60 58 Terminals and systems 2,720 2,479 — — Furniture and equipment 127 138 315 255 Construction in progress 97 75 21 10 2,944 2,691 398 324 Accumulated depreciation (2,045) (1,754) (281) (205) 899 937 118 119 The estimated useful lives of assets are as follows: Asset Estimated life in years Systems & Equipment Terminals and systems - lottery Generally do not exceed 10 years Terminals and systems - gaming 3-5 Furniture and equipment Generally do not exceed 10 years PPE Buildings 40 Furniture and equipment 5-10 Leasehold improvements are amortized over the shorter of the corresponding lease term or estimated useful life. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases Lessee We have operating and finance leases for real estate (warehouses, office space, data centers), vehicles, communication equipment, and other equipment. Many of our real estate leases include one or more options to renew, while some include termination options. Certain vehicle and equipment leases include residual value guarantees and options to purchase the leased asset. Many of our real estate leases include variable payments for maintenance, real estate taxes, and insurance that are determined based on the actual costs incurred by the landlord. The classification of our operating and finance leases in the consolidated balance sheets is as follows: December 31, ($ in millions) Balance Sheet Classification 2022 2021 Assets: Operating ROU asset Operating lease right-of-use assets 254 283 Finance ROU asset, net (1) Other non-current assets 23 29 Total lease assets 277 312 Liabilities: Operating lease liability, current Other current liabilities 37 39 Finance lease liability, current Other current liabilities 8 10 Operating lease liability, non-current Operating lease liabilities 239 269 Finance lease liability, non-current Other non-current liabilities 22 27 Total lease liabilities 307 344 (1) Finance ROU assets are recorded net of accumulated amortization of $15 million and $24 million at December 31, 2022 and 2021, respectively. Weighted-average lease terms and discount rates are as follows: December 31, 2022 2021 2020 Weighted-Average Remaining Lease Term (in years) Operating leases 7.72 8.47 8.32 Finance leases 4.31 4.73 5.13 Weighted-Average Discount Rate Operating leases 6.88 % 6.71 % 7.01 % Finance leases 5.12 % 4.98 % 5.16 % Components of lease expense are as follows: For the year ended December 31, ($ in millions) 2022 2021 2020 Operating lease costs 62 71 72 Finance lease costs (1) 11 13 11 Short-term lease costs 13 1 1 Variable lease costs (2) 23 23 23 (1) Includes amortization of ROU assets of $10 million, $11 million, and $9 million for the years ended December 31, 2022, 2021, and 2020, respectively and interest on lease liabilities of $2 million, $2 million, and $2 million, f or the years ended December 31, 2022, 2021, and 2020, respectively. (2) Includes immaterial amounts related to sublease income. Maturities of operating and finance lease liabilities at December 31, 2022 are as follows ($ in millions): Year Operating Leases Finance Leases Total (1) 2023 55 10 64 2024 51 7 59 2025 47 6 54 2026 41 6 47 2027 36 3 39 Thereafter 133 1 135 Total lease payments 364 34 398 Less: Imputed interest (87) (3) (91) Present value of lease liabilities 277 30 307 (1) The maturities above exclude leases that have not yet commenced and such leases are not material in the aggregate. Cash flow information and non-cash activity related to leases is as follows: For the year ended December 31, ($ in millions) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating and finance leases 60 67 68 Finance cash flows from finance leases 10 13 10 Non-cash activity: ROU assets obtained in exchange for lease obligations (net of early terminations) Operating leases 19 5 34 Finance leases 4 7 6 Lessor We have various arrangements for lottery and gaming equipment under which we are the lessor. Our lease arrangements typically have lease terms ranging from one month to 4 years. These leases generally meet the criteria for operating lease classification, as the lease payments are typically variable based on a percentage of sales, a percentage of amounts wagered, net win, or a daily fee per active gaming terminal. Our leases generally do not contain variable payments that are dependent on an index or rate (such as the Consumer Price Index or a market interest rate.) We provide lessees with the option to extend the lease, which is considered when evaluating lease classification. Lease income from operating leases is included within service revenue in the consolidated statements of operations. Operating lease income was approximately 6% of total revenue for each of the years ended December 31, 2022, 2021, and 2020. Our sales-type lease arrangements typically have lease terms ranging from one year to 10 years. We provide lessees with the option to extend the lease, which is considered when evaluating lease classification. Lease income from sales-type leases is included within product sales in the consolidated statements of operations. Total sales-type lease income was approximately 1% of total revenue for each of the years ended December 31, 2022, 2021, and 2020. Sales-type lease receivables are included within customer financing receivables, net, which are a component of other current assets and other non-current assets within the consolidated balance sheets. Additional information on customer financing receivables is included in Note 7 – Other Assets . |
Leases | Leases Lessee We have operating and finance leases for real estate (warehouses, office space, data centers), vehicles, communication equipment, and other equipment. Many of our real estate leases include one or more options to renew, while some include termination options. Certain vehicle and equipment leases include residual value guarantees and options to purchase the leased asset. Many of our real estate leases include variable payments for maintenance, real estate taxes, and insurance that are determined based on the actual costs incurred by the landlord. The classification of our operating and finance leases in the consolidated balance sheets is as follows: December 31, ($ in millions) Balance Sheet Classification 2022 2021 Assets: Operating ROU asset Operating lease right-of-use assets 254 283 Finance ROU asset, net (1) Other non-current assets 23 29 Total lease assets 277 312 Liabilities: Operating lease liability, current Other current liabilities 37 39 Finance lease liability, current Other current liabilities 8 10 Operating lease liability, non-current Operating lease liabilities 239 269 Finance lease liability, non-current Other non-current liabilities 22 27 Total lease liabilities 307 344 (1) Finance ROU assets are recorded net of accumulated amortization of $15 million and $24 million at December 31, 2022 and 2021, respectively. Weighted-average lease terms and discount rates are as follows: December 31, 2022 2021 2020 Weighted-Average Remaining Lease Term (in years) Operating leases 7.72 8.47 8.32 Finance leases 4.31 4.73 5.13 Weighted-Average Discount Rate Operating leases 6.88 % 6.71 % 7.01 % Finance leases 5.12 % 4.98 % 5.16 % Components of lease expense are as follows: For the year ended December 31, ($ in millions) 2022 2021 2020 Operating lease costs 62 71 72 Finance lease costs (1) 11 13 11 Short-term lease costs 13 1 1 Variable lease costs (2) 23 23 23 (1) Includes amortization of ROU assets of $10 million, $11 million, and $9 million for the years ended December 31, 2022, 2021, and 2020, respectively and interest on lease liabilities of $2 million, $2 million, and $2 million, f or the years ended December 31, 2022, 2021, and 2020, respectively. (2) Includes immaterial amounts related to sublease income. Maturities of operating and finance lease liabilities at December 31, 2022 are as follows ($ in millions): Year Operating Leases Finance Leases Total (1) 2023 55 10 64 2024 51 7 59 2025 47 6 54 2026 41 6 47 2027 36 3 39 Thereafter 133 1 135 Total lease payments 364 34 398 Less: Imputed interest (87) (3) (91) Present value of lease liabilities 277 30 307 (1) The maturities above exclude leases that have not yet commenced and such leases are not material in the aggregate. Cash flow information and non-cash activity related to leases is as follows: For the year ended December 31, ($ in millions) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating and finance leases 60 67 68 Finance cash flows from finance leases 10 13 10 Non-cash activity: ROU assets obtained in exchange for lease obligations (net of early terminations) Operating leases 19 5 34 Finance leases 4 7 6 Lessor We have various arrangements for lottery and gaming equipment under which we are the lessor. Our lease arrangements typically have lease terms ranging from one month to 4 years. These leases generally meet the criteria for operating lease classification, as the lease payments are typically variable based on a percentage of sales, a percentage of amounts wagered, net win, or a daily fee per active gaming terminal. Our leases generally do not contain variable payments that are dependent on an index or rate (such as the Consumer Price Index or a market interest rate.) We provide lessees with the option to extend the lease, which is considered when evaluating lease classification. Lease income from operating leases is included within service revenue in the consolidated statements of operations. Operating lease income was approximately 6% of total revenue for each of the years ended December 31, 2022, 2021, and 2020. Our sales-type lease arrangements typically have lease terms ranging from one year to 10 years. We provide lessees with the option to extend the lease, which is considered when evaluating lease classification. Lease income from sales-type leases is included within product sales in the consolidated statements of operations. Total sales-type lease income was approximately 1% of total revenue for each of the years ended December 31, 2022, 2021, and 2020. Sales-type lease receivables are included within customer financing receivables, net, which are a component of other current assets and other non-current assets within the consolidated balance sheets. Additional information on customer financing receivables is included in Note 7 – Other Assets . |
Leases | Leases Lessee We have operating and finance leases for real estate (warehouses, office space, data centers), vehicles, communication equipment, and other equipment. Many of our real estate leases include one or more options to renew, while some include termination options. Certain vehicle and equipment leases include residual value guarantees and options to purchase the leased asset. Many of our real estate leases include variable payments for maintenance, real estate taxes, and insurance that are determined based on the actual costs incurred by the landlord. The classification of our operating and finance leases in the consolidated balance sheets is as follows: December 31, ($ in millions) Balance Sheet Classification 2022 2021 Assets: Operating ROU asset Operating lease right-of-use assets 254 283 Finance ROU asset, net (1) Other non-current assets 23 29 Total lease assets 277 312 Liabilities: Operating lease liability, current Other current liabilities 37 39 Finance lease liability, current Other current liabilities 8 10 Operating lease liability, non-current Operating lease liabilities 239 269 Finance lease liability, non-current Other non-current liabilities 22 27 Total lease liabilities 307 344 (1) Finance ROU assets are recorded net of accumulated amortization of $15 million and $24 million at December 31, 2022 and 2021, respectively. Weighted-average lease terms and discount rates are as follows: December 31, 2022 2021 2020 Weighted-Average Remaining Lease Term (in years) Operating leases 7.72 8.47 8.32 Finance leases 4.31 4.73 5.13 Weighted-Average Discount Rate Operating leases 6.88 % 6.71 % 7.01 % Finance leases 5.12 % 4.98 % 5.16 % Components of lease expense are as follows: For the year ended December 31, ($ in millions) 2022 2021 2020 Operating lease costs 62 71 72 Finance lease costs (1) 11 13 11 Short-term lease costs 13 1 1 Variable lease costs (2) 23 23 23 (1) Includes amortization of ROU assets of $10 million, $11 million, and $9 million for the years ended December 31, 2022, 2021, and 2020, respectively and interest on lease liabilities of $2 million, $2 million, and $2 million, f or the years ended December 31, 2022, 2021, and 2020, respectively. (2) Includes immaterial amounts related to sublease income. Maturities of operating and finance lease liabilities at December 31, 2022 are as follows ($ in millions): Year Operating Leases Finance Leases Total (1) 2023 55 10 64 2024 51 7 59 2025 47 6 54 2026 41 6 47 2027 36 3 39 Thereafter 133 1 135 Total lease payments 364 34 398 Less: Imputed interest (87) (3) (91) Present value of lease liabilities 277 30 307 (1) The maturities above exclude leases that have not yet commenced and such leases are not material in the aggregate. Cash flow information and non-cash activity related to leases is as follows: For the year ended December 31, ($ in millions) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating and finance leases 60 67 68 Finance cash flows from finance leases 10 13 10 Non-cash activity: ROU assets obtained in exchange for lease obligations (net of early terminations) Operating leases 19 5 34 Finance leases 4 7 6 Lessor We have various arrangements for lottery and gaming equipment under which we are the lessor. Our lease arrangements typically have lease terms ranging from one month to 4 years. These leases generally meet the criteria for operating lease classification, as the lease payments are typically variable based on a percentage of sales, a percentage of amounts wagered, net win, or a daily fee per active gaming terminal. Our leases generally do not contain variable payments that are dependent on an index or rate (such as the Consumer Price Index or a market interest rate.) We provide lessees with the option to extend the lease, which is considered when evaluating lease classification. Lease income from operating leases is included within service revenue in the consolidated statements of operations. Operating lease income was approximately 6% of total revenue for each of the years ended December 31, 2022, 2021, and 2020. Our sales-type lease arrangements typically have lease terms ranging from one year to 10 years. We provide lessees with the option to extend the lease, which is considered when evaluating lease classification. Lease income from sales-type leases is included within product sales in the consolidated statements of operations. Total sales-type lease income was approximately 1% of total revenue for each of the years ended December 31, 2022, 2021, and 2020. Sales-type lease receivables are included within customer financing receivables, net, which are a component of other current assets and other non-current assets within the consolidated balance sheets. Additional information on customer financing receivables is included in Note 7 – Other Assets . |
Leases | Leases Lessee We have operating and finance leases for real estate (warehouses, office space, data centers), vehicles, communication equipment, and other equipment. Many of our real estate leases include one or more options to renew, while some include termination options. Certain vehicle and equipment leases include residual value guarantees and options to purchase the leased asset. Many of our real estate leases include variable payments for maintenance, real estate taxes, and insurance that are determined based on the actual costs incurred by the landlord. The classification of our operating and finance leases in the consolidated balance sheets is as follows: December 31, ($ in millions) Balance Sheet Classification 2022 2021 Assets: Operating ROU asset Operating lease right-of-use assets 254 283 Finance ROU asset, net (1) Other non-current assets 23 29 Total lease assets 277 312 Liabilities: Operating lease liability, current Other current liabilities 37 39 Finance lease liability, current Other current liabilities 8 10 Operating lease liability, non-current Operating lease liabilities 239 269 Finance lease liability, non-current Other non-current liabilities 22 27 Total lease liabilities 307 344 (1) Finance ROU assets are recorded net of accumulated amortization of $15 million and $24 million at December 31, 2022 and 2021, respectively. Weighted-average lease terms and discount rates are as follows: December 31, 2022 2021 2020 Weighted-Average Remaining Lease Term (in years) Operating leases 7.72 8.47 8.32 Finance leases 4.31 4.73 5.13 Weighted-Average Discount Rate Operating leases 6.88 % 6.71 % 7.01 % Finance leases 5.12 % 4.98 % 5.16 % Components of lease expense are as follows: For the year ended December 31, ($ in millions) 2022 2021 2020 Operating lease costs 62 71 72 Finance lease costs (1) 11 13 11 Short-term lease costs 13 1 1 Variable lease costs (2) 23 23 23 (1) Includes amortization of ROU assets of $10 million, $11 million, and $9 million for the years ended December 31, 2022, 2021, and 2020, respectively and interest on lease liabilities of $2 million, $2 million, and $2 million, f or the years ended December 31, 2022, 2021, and 2020, respectively. (2) Includes immaterial amounts related to sublease income. Maturities of operating and finance lease liabilities at December 31, 2022 are as follows ($ in millions): Year Operating Leases Finance Leases Total (1) 2023 55 10 64 2024 51 7 59 2025 47 6 54 2026 41 6 47 2027 36 3 39 Thereafter 133 1 135 Total lease payments 364 34 398 Less: Imputed interest (87) (3) (91) Present value of lease liabilities 277 30 307 (1) The maturities above exclude leases that have not yet commenced and such leases are not material in the aggregate. Cash flow information and non-cash activity related to leases is as follows: For the year ended December 31, ($ in millions) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating and finance leases 60 67 68 Finance cash flows from finance leases 10 13 10 Non-cash activity: ROU assets obtained in exchange for lease obligations (net of early terminations) Operating leases 19 5 34 Finance leases 4 7 6 Lessor We have various arrangements for lottery and gaming equipment under which we are the lessor. Our lease arrangements typically have lease terms ranging from one month to 4 years. These leases generally meet the criteria for operating lease classification, as the lease payments are typically variable based on a percentage of sales, a percentage of amounts wagered, net win, or a daily fee per active gaming terminal. Our leases generally do not contain variable payments that are dependent on an index or rate (such as the Consumer Price Index or a market interest rate.) We provide lessees with the option to extend the lease, which is considered when evaluating lease classification. Lease income from operating leases is included within service revenue in the consolidated statements of operations. Operating lease income was approximately 6% of total revenue for each of the years ended December 31, 2022, 2021, and 2020. Our sales-type lease arrangements typically have lease terms ranging from one year to 10 years. We provide lessees with the option to extend the lease, which is considered when evaluating lease classification. Lease income from sales-type leases is included within product sales in the consolidated statements of operations. Total sales-type lease income was approximately 1% of total revenue for each of the years ended December 31, 2022, 2021, and 2020. Sales-type lease receivables are included within customer financing receivables, net, which are a component of other current assets and other non-current assets within the consolidated balance sheets. Additional information on customer financing receivables is included in Note 7 – Other Assets . |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During 2021 and 2020, we initiated the following restructuring plans as described below. 2021 Italian Workforce Redundancies In connection with the sale of our Italian B2C businesses, management agreed to provide to the buyer information technology and back-office services for a period of one 2020 Segment Reorganization The 2020 segment reorganization plan was a global initiative that simplified our organizational structure and increased efficiency and effectiveness. During the years ended December 31, 2022 and 2021 we revised our cost estimates resulting in a reduction of expense of a nominal amount and $1 million, respectively. During the year ended December 31, 2020 we incurred $16 million of expense under the plan. Since the plan’s inception, we incurred severance and related employee costs primarily within our Global Lottery and Global Gaming segments and Corporate Support function totaling $15 million. This plan was substantially completed as of March 31, 2021. 2020 Global Supply Chain Optimization The 2020 global supply chain optimization plan was an initiative that optimized our global supply chain and footprint resulting in a significant reduction to our primary manufacturing operations. During the years ended December 31, 2022 and 2021 we revised our cost estimates resulting in a reduction of expense of a nominal amount and $1 million, respectively. During the year ended December 31, 2020 we incurred $8 million of expense under the plan. Since the plan’s inception, we incurred severance and related employee costs, and other costs of $7 million, primarily within our Global Gaming segment. This plan was substantially completed as of March 31, 2021. 2020 Technology Organization Consolidation The 2020 technology organization consolidation plan was an initiative that realigned and consolidated operations, reduced costs, and improved operational efficiencies within our Technology group. During the years ended December 31, 2022 and 2021 we revised our cost estimates resulting in a reduction of expense of a nominal amount and $4 million, respectively. During the year ended December 31, 2020 we incurred $17 million of expense under the plan. Since the plan’s inception, we incurred severance and related employee costs of $13 million, primarily within our Global Gaming segment. This plan was substantially completed as of December 31, 2021. Rollforward of Restructuring Liability The following table presents the activity in the restructuring liabilities for the above plans for the years ended December 31, 2022 and December 31, 2021: ($ in millions) Severance and Related Employee Costs Other Total Balance at December 31, 2020 23 1 24 2021 Italian workforce redundancies plan expense, net 11 — 11 Cash paid for all plans (17) — (17) Reversals of expense and other (5) (1) (6) Balance at December 31, 2021 12 1 13 2021 Italian workforce redundancies plan expense, net 7 — 7 Cash paid for all plans (4) (1) (4) Reversals of expense and other (2) — (2) Balance at December 31, 2022 14 — 14 Restructuring Expense The following table summarizes consolidated restructuring expense by segment and type of cost: For the year ended December 31, 2022 ($ in millions) Severance and Related Employee Costs Other Total Global Lottery 6 — 6 Global Gaming (1) — (1) PlayDigital — — — Corporate and Other 1 — 1 Total 6 — 6 For the year ended December 31, 2021 ($ in millions) Severance and Related Employee Costs Other Total Global Lottery 8 — 8 Global Gaming (3) (1) (4) PlayDigital (1) — (1) Corporate and Other 2 — 2 Total 6 (1) 6 For the year ended December 31, 2020 ($ in millions) Severance and Related Employee Costs Other Total Global Lottery 5 — 5 Global Gaming 28 4 32 PlayDigital 2 — 2 Corporate and Other 6 — 6 Total 41 4 45 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill, net | |
Goodwill | GoodwillDuring the third quarter of 2021 we established a dedicated PlayDigital business segment, comprising our iGaming and sports betting activities that were previously included within our Global Gaming business segment. As a result, at September 1, 2021, we allocated a portion of goodwill associated with our Global Gaming reporting unit to the PlayDigital reporting unit using a relative fair value approach. The goodwill allocated to the Global Gaming and PlayDigital reporting units was $1.4 billion and $265 million, respectively, and the estimated fair values were determined to exceed the carrying values of each reporting unit, which indicated no impairment existed. In addition, we completed an assessment for any potential goodwill impairment for the former Global Gaming reporting unit immediately prior to the reallocation and determined that no impairment existed. In connection with the acquisition of iSoftBet, previously discussed in Note 3 - Business Acquisitions and Divestitures, the Company recognized $121 million (€117 million) of goodwill in our PlayDigital reporting unit. The goodwill was primarily related to expected synergies from combining operations and the value of the existing workforce. The goodwill generated as a result of the acquisition of iSoftBet is nondeductible for income tax purposes. In connection with the divestiture of our Italian commercial services business previously discussed in Note 3 - Business Acquisitions and Divestitures, goodwill in our Global Lottery reporting unit was reduced by $250 million. Changes in the carrying amount of goodwill consist of the following: ($ in millions) Global Lottery Global Gaming PlayDigital Total Balance at December 31, 2020 2,997 1,716 — 4,713 Segment realignment (1) — (265) 265 — Foreign currency translation (49) (5) (3) (58) Balance at December 31, 2021 2,948 1,446 261 4,656 Acquisitions — — 121 121 Divestitures (250) — — (250) Foreign currency translation (36) (2) (6) (44) Balance at December 31, 2022 2,662 1,444 376 4,482 (1) From July 1, 2020 to August 31, 2021, we operated under only two business segments: Global Lottery and Global Gaming. Total goodwill at December 31, 2022, 2021, and 2020 is net of $1.3 billion of accumulated impairment losses. Impairment |
Intangible Assets, net
Intangible Assets, net | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets, net | Intangible Assets, net Intangible assets at December 31, 2022 and 2021 are summarized as follows: December 31, 2022 December 31, 2021 ($ in millions) Estimated Life (Years) Weighted- Average Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Amortized: Customer relationships 2-20 15.5 2,303 1,464 838 2,298 1,349 949 Computer software and game library 3-14 6.3 887 809 78 918 809 109 Trademarks 1-20 14.2 184 119 65 185 106 80 Developed technologies 2-15 6.1 283 222 61 233 216 17 Licenses 3-23 3.7 133 55 78 65 58 6 Other 2-17 7.9 40 31 9 35 28 7 3,830 2,700 1,130 3,734 2,566 1,168 Unamortized: Trademarks 245 245 245 — 245 4,075 2,700 1,375 3,979 2,566 1,413 Intangible asset amortization expense of $182 million, $190 million, and $203 million (which includes computer software amortization expense of $22 million, $23 million, and $26 million) was recorded in 2022, 2021, and 2020, respectively. In connection with the July 2022 acquisition of iSoftBet, previously discussed in Note 3 - Business Acquisitions and Divestitures , the Company allocated $58 million (€59 million) of the purchase price to the intangible assets acquired (primarily acquired developed technologies of €51 million and customer relationships of €8 million). The estimated useful life of the assets are 6 to 15 years with a weighted average amortization period of 9.2 years. In connection with the September 2022 sale of Lis Holding S.p.A., the Company recorded a €12 million reduction in net book value of intangible assets (principally patents and trademarks) related to the divestiture. In December 2022, the Company entered into a $75 million multi-year license agreement of intellectual property. Payments due under the agreement commence in 2023. Amortization expense on intangible assets for the next five years is expected to be as follows ($ in millions): Year Amount 2023 199 2024 182 2025 158 2026 119 2027 112 769 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s long-term debt obligations consist of the following: December 31, 2022 ($ in millions) Principal Debt issuance Total 3.500% Senior Secured Euro Notes due July 2024 320 (1) 319 6.500% Senior Secured U.S. Dollar Notes due February 2025 700 (3) 697 4.125% Senior Secured U.S. Dollar Notes due April 2026 750 (5) 745 3.500% Senior Secured Euro Notes due June 2026 800 (4) 796 6.250% Senior Secured U.S. Dollar Notes due January 2027 750 (4) 746 2.375% Senior Secured Euro Notes due April 2028 533 (3) 530 5.250% Senior Secured U.S. Dollar Notes due January 2029 750 (5) 745 Senior Secured Notes 4,603 (26) 4,578 Euro Term Loan Facilities due January 2027 1,067 (9) 1,058 U.S. Dollar Revolving Credit Facility A due July 2027 65 (10) 55 Long-term debt, less current portion 5,735 (45) 5,690 5.350% Senior Secured U.S. Dollar Notes due October 2023 61 — 61 Current portion of long-term debt 61 — 61 Total debt 5,795 (45) 5,750 December 31, 2021 ($ in millions) Principal Debt issuance Total 5.350% Senior Secured U.S. Dollar Notes due October 2023 61 — 61 3.500% Senior Secured Euro Notes due July 2024 566 (3) 564 6.500% Senior Secured U.S. Dollar Notes due February 2025 1,100 (7) 1,093 4.125% Senior Secured U.S. Dollar Notes due April 2026 750 (6) 744 3.500% Senior Secured Euro Notes due June 2026 849 (5) 844 6.250% Senior Secured U.S. Dollar Notes due January 2027 750 (5) 745 2.375% Senior Secured Euro Notes due April 2028 566 (4) 562 5.250% Senior Secured U.S. Dollar Notes due January 2029 750 (6) 744 Senior Secured Notes 5,393 (36) 5,357 Euro Term Loan Facilities due January 2027 1,133 (12) 1,121 Long-term debt, less current portion 6,525 (48) 6,477 Short-term borrowings 52 — 52 Total debt 6,577 (48) 6,529 At December 31, 2022 and December 31, 2021, $9 million and $17 million, respectively, of debt issuance costs, net for the Revolving Credit Facilities with no outstanding borrowings, are recorded as other non-current assets in the consolidated balance sheets. The principal amount of long-term debt maturing over the next five years and thereafter as of December 31, 2022 is as follows ($ in millions): Year U.S. Dollar Denominated Euro Denominated Total 2023 61 — 61 2024 — 533 533 2025 700 213 913 2026 750 1,013 1,763 2027 815 427 1,242 2028 and thereafter 750 533 1,283 Total principal payments 3,076 2,720 5,795 Senior Secured Notes The key terms of our senior secured notes (the “Notes”), which were rated Ba2 and BB+ by Moody’s Investor Service (“Moody’s”) and Standard & Poor’s Ratings Services (“S&P”), respectively, at December 31, 2022, are as follows: Description Principal Effective Interest Rate Issuer Guarantors Collateral Redemption Interest payments 5.350% Senior Secured U.S. Dollar Notes due October 2023 $61 5.47% International Game Technology ** †† + Semi-annually in arrears 3.500% Senior Secured Euro Notes due July 2024 €300 3.68% Parent * † ++ Semi-annually in arrears 6.500% Senior Secured U.S. Dollar Notes due February 2025 $700 6.71% Parent * † ++ Semi-annually in arrears 4.125% Senior Secured U.S. Dollar Notes due April 2026 $750 4.34% Parent * † +++ Semi-annually in arrears 3.500% Senior Secured Euro Notes due June 2026 €750 3.65% Parent * † +++ Semi-annually in arrears 6.250% Senior Secured U.S. Dollar Notes due January 2027 $750 6.41% Parent * † ++ Semi-annually in arrears 2.375% Senior Secured Euro Notes due April 2028 €500 2.50% Parent * † +++ Semi-annually in arrears 5.250% Senior Secured U.S. Dollar Notes due January 2029 $750 5.39% Parent * † +++ Semi-annually in arrears * Certain subsidiaries of the Parent. ** The Parent and certain subsidiaries of the Parent. † Ownership interests in certain subsidiaries of the Parent, certain intercompany loans with principal balances in excess of $10 million and certain accounts receivable. †† Certain intercompany loans with principal balances in excess of $10 million and certain accounts receivable. + International Game Technology may redeem in whole or in part at any time prior to maturity at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. International Game Technology may also redeem in whole or in part at 100% of the principal amount together with accrued and unpaid interest in connection with certain gaming regulatory events. Upon the occurrence of certain events, International Game Technology will be required to offer to repurchase all of the applicable Notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. ++ The Parent may redeem in whole or in part at any time prior to the date which is six months prior to maturity at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. After such date, the Parent may redeem in whole or in part at 100% of the principal amount together with accrued and unpaid interest. The Parent may also redeem in whole but not in part at 100% of the principal amount together with accrued and unpaid interest in connection with certain tax events. Upon the occurrence of certain events, the Parent will be required to offer to repurchase all of the applicable Notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. +++ The Parent may redeem in whole or in part at any time prior to the first date set forth in the redemption price schedule at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. After such date, the Parent may redeem in whole or in part at a redemption price set forth in the redemption price schedule in the indenture governing the applicable Notes, together with accrued and unpaid interest. The Parent may also redeem in whole but not in part at 100% of the principal amount together with accrued and unpaid interest in connection with certain tax events. Upon the occurrence of certain events, the Parent will be required to offer to repurchase all of the applicable Notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. The Notes contain customary covenants and events of default. At December 31, 2022, the issuers were in compliance with the covenants. On February 28, 2023, the Parent exercised the right to redeem: (i) €188 million of the 3.500% Senior Secured Euro Notes due July 2024 on March 16, 2023 for a redemption price of 100% of the principal amount and a make-whole call premium consistent with the terms of the indenture governing such notes, together with accrued and unpaid interest, and (ii) $200 million of the 6.500% Senior Secured U.S. Dollar Notes due February 2025 on March 16, 2023 for a redemption price of $1,012.54 per $1,000.00 of principal amount, together with accrued and unpaid interest. On February 2, 2023, IGT announced that Fitch Ratings, Inc. (“Fitch”) had assigned each of IGT and its subsidiary, IGT Lottery Holdings B.V., a long-term issuer rating of BB+ with a stable rating outlook and a rating of BBB- to their long-term senior secured debt. In January 2023, International Game Technology redeemed the 5.350% Senior Secured U.S. Dollar Notes due October 2023 in full pursuant to the exercise of the make-whole call option for $61 million, excluding interest. In September 2022, the Parent used the proceeds from the sale of Lis Holdings S.p.A. to repurchase €200 million ($197 million) of the 3.500% Senior Secured Euro Notes due July 2024 for total consideration, excluding interest, of €201 million ($198 million) and $400 million of the 6.500% Senior Secured U.S. Dollar Notes due February 2025 for total consideration, excluding interest, of $406 million. The Company recorded a $2 million loss on extinguishment of debt in connection with the redemption of the 3.500% Senior Secured Euro Notes and a $9 million loss on extinguishment of debt in connection with the redemption of the 6.500% Senior Secured U.S. Dollar Notes, which are classified in other non-operating expense, net in the consolidated statement of operations for the year ended December 31, 2022. In May 2021, the Parent used the proceeds from the sale of the Italian B2C businesses and borrowings under the Revolving Credit Facilities to redeem €850 million ($1.0 billion) of the 4.750% Senior Secured Euro Notes due February 2023 through the exercise of the make-whole call option for $1.1 billion, excluding interest. The Company recorded a $67 million loss on extinguishment of debt in connection with the redemption, which is classified in other non-operating expense, net in the consolidated statement of operations for the year ended December 31, 2021. In March 2021, the Parent used the net proceeds from the sale of the 4.125% Senior Secured U.S. Dollar Notes due April 2026 and borrowings under the Revolving Credit Facilities to redeem $1.0 billion of the 6.250% Senior Secured U.S. Dollar Notes due February 2022 through the exercise of the make-whole call option for $1.0 billion, excluding interest. The Company recorded an $18 million loss on extinguishment of debt in connection with the redemption, of which a $24 million loss is classified in other non-operating expense, net and an offsetting gain of $6 million is classified in interest expense, net in the consolidated statement of operations for the year ended December 31, 2021. In June 2020, the Parent used the net proceeds from the sale of the 5.250% Senior Secured U.S. Dollar Notes due January 2029 to redeem $500 million of the 6.250% Senior Secured U.S. Dollar Notes due February 2022 for $525 million, excluding interest. The Company recorded a $23 million loss on extinguishment of debt in connection with the redemption, of which a $28 million loss is classified in other non-operating expense, net and an offsetting gain of $5 million is classified in interest expense, net in the consolidated statement of operations for the year ended December 31, 2020. Euro Term Loan Facilities The Parent is a party to an Amended and Restated Senior Facilities Agreement dated July 21, 2021, as amended (the “TLF Agreement”), which provides for two €500 million senior secured term loan facilities, one to the Parent and one to IGT Lottery Holdings B.V., maturing on January 25, 2027 (the “Euro Term Loan Facilities”). The borrowers must repay the Euro Term Loan Facilities in installments, as detailed below: Due Date Amount January 25, 2024 200 January 25, 2025 200 January 25, 2026 200 January 25, 2027 400 Interest on the Euro Term Loan Facilities is payable between one The Euro Term Loan Facilities are guaranteed by certain subsidiaries of the Parent and are secured by ownership interests in certain subsidiaries of the Parent, certain intercompany loans with principal balances in excess of $10 million and certain accounts receivable. Upon the occurrence of certain events, the borrowers may be required to prepay the Euro Term Loan Facilities in full. The TLF Agreement limits the aggregate amount that the Parent can pay with respect to dividends and repurchases of ordinary shares in each year to $400 million if any two of our public debt ratings by Moody’s, S&P, and Fitch are lower than Ba1/BB+ and $550 million if any two of our public debt ratings by Moody’s, S&P, and Fitch are equal to or higher than Ba1/BB+, and provides that such limit is eliminated if any two of our public debt ratings by Moody’s, S&P, and Fitch are equal to or higher than Baa3/BBB-. The TLF Agreement also contains customary covenants (including maintaining a minimum ratio of EBITDA to net interest costs and maximum ratio of total net debt to EBITDA) and events of default. At December 31, 2022, the Parent was in compliance with the covenants. In July 2022, the Parent entered into an amendment to the TLF Agreement pursuant to which, among other changes, (i) the annual permitted acquisition limit was increased from 10% to 15% of consolidated total assets and the lifetime permitted acquisition limit was increased from $2.25 billion to $2.5 billion; and (ii) the annual limit on dividends and share repurchases was increased from $300 million to $400 million based on our public debt ratings at the time and to $550 million if any two of our public debt ratings are equal to or higher than Ba1/BB+ and eliminated if any two of our public debt ratings are equal to or higher than Baa3/BBB-. In July 2021, the Parent entered into an Amendment and Restatement Agreement (the “TLF Amendment and Restatement Agreement”) with respect to the TLF Agreement. The TLF Amendment and Restatement Agreement among other things: (i) added a second term loan facility with IGT Lottery Holdings B.V. as the borrower, (ii) increased the aggregate amount of the term loan facilities from €860 million to €1.0 billion (with each of the Parent and IGT Lottery Holdings B.V. borrowing €500 million), (iii) extended the maturity date of the Euro Term Loan Facilities to January 25, 2027, (iv) reduced the applicable interest rate by 35 basis points based on current debt ratings, (v) provided for a maximum decrease or increase of an additional 7.5 basis points in the margin based on our ESG rating, and (vi) maintained and extended existing financial covenant thresholds. As a result of the TLF Amendment and Restatement Agreement, the Company reclassified the €320 million current portion of long-term debt to long-term debt. Revolving Credit Facilities The Parent and certain of its subsidiaries are party to an Amended and Restated Senior Facilities Agreement dated July 27, 2022 (the “RCF Agreement”), which provides for the following senior secured multi-currency revolving credit facilities (the “Revolving Credit Facilities”) maturing on July 31, 2027: Facility (1) Maximum Amount Revolving Credit Facility A $820 Revolving Credit Facility B €1,000 (1) The Parent, IGT Global Solutions Corporation, IGT Lottery Holdings B.V., IGT Lottery S.p.A, and International Game Technology are all borrowers under the Revolving Credit Facilities. At December 31, 2022, the amounts available to be borrowed under Revolving Credit Facility A and Revolving Credit Facility B were $755 million and €1.0 billion ($1.1 billion), respectively. Interest on the Revolving Credit Facilities is payable between one The RCF Agreement provides that the following fees, which are recorded in interest expense, net in the consolidated statements of operations, are payable quarterly in arrears: • Commitment fees - payable on the aggregate undrawn and un-cancelled amount of the Revolving Credit Facilities based on a 0.35% margin. • Utilization fees - payable on the aggregate drawn amount of the Revolving Credit Facilities at a rate ranging from 0.10% to 0.60% dependent on the percentage of the Revolving Credit Facilities utilized. The applicable rate was 0.10% at December 31, 2022. The Revolving Credit Facilities are guaranteed by the Parent and certain of its subsidiaries and are secured by ownership interests in certain subsidiaries and of the Parent, certain intercompany loans with principal balances in excess of $10 million and certain accounts receivable. Upon the occurrence of certain events, the borrowers may be required to repay the Revolving Credit Facilities and the lenders may have the right to cancel their commitments. The RCF Agreement limits the aggregate amount that the Parent can pay with respect to dividends and repurchases of ordinary shares in each year to $400 million if any two of our public debt ratings by Moody’s, S&P, and Fitch are lower than Ba1/BB+ and $550 million if any two of our public debt ratings by Moody’s, S&P, and Fitch are equal to or higher than Ba1/BB+, and provides that such limit is eliminated if any two of our public debt ratings by Moody’s, S&P, and Fitch are equal to or higher than Baa3/BBB-. The RCF Agreement also contains customary covenants (including maintaining a minimum ratio of EBITDA to net interest costs and a maximum ratio of total net debt to EBITDA) and events of default. At December 31, 2022, the borrowers were in compliance with the covenants. In July 2022, the Parent entered into an Amendment and Restatement Agreement (the “RCF Amendment and Restatement Agreement”) with respect to the RCF Agreement, pursuant to which, among other changes, (i) the aggregate revolving facility A commitments of the lenders were decreased from $1.05 billion to $820 million; (ii) the aggregate revolving facility B commitments of the lenders were increased from €625 million to €1.0 billion; (iii) the final maturity date was extended from July 31, 2024 to July 31, 2027; (iv) LIBOR was replaced as a reference rate with the SOFR or SONIA rate, in each case subject to a credit adjustment spread, for borrowings in U.S. Dollars and Pounds Sterling, respectively; (v) the margins based on public debt ratings were reduced by at least 0.25% (0.40% at current public debt ratings) subject to a maximum of 0.075% increase or decrease based on the group's ESG rating; (vi) the annual permitted acquisition limit was increased from 10% to 15% of consolidated total assets and the lifetime permitted acquisition limit was increased from $2.25 billion to $2.5 billion; and (vii) the annual limit on dividends and share repurchases was increased from $300 million to $400 million based on our public debt ratings at the time and to $550 million if any two of our public debt ratings are equal to or higher than Ba1/BB+, and eliminated if any two of our public debt ratings are equal to or higher than Baa3/BBB-. Other Credit Facilities The Parent and certain of its subsidiaries may borrow under senior unsecured uncommitted demand credit facilities made available by several financial institutions. At December 31, 2021, there was $30 million of short-term borrowings under these facilities with an effective interest rate of 1.63%, respectively, and no outstanding borrowings at December 31, 2022. Additionally, at December 31, 2021, the Company had an outstanding $21 million swingline loan under the Revolving Credit Facilities with an effective interest rate of 3.25%, which was classified in short-term borrowings. Letters of Credit The Parent and certain of its subsidiaries may obtain letters of credit under the Revolving Credit Facilities and under senior unsecured uncommitted demand credit facilities. The letters of credit secure various obligations, including obligations arising under customer contracts and real estate leases. The following table summarizes the letters of credit outstanding at December 31, 2022 and 2021 and the weighted-average annual cost of such letters of credit: ($ in millions) Letters of Credit Outstanding (1) Weighted-Average December 31, 2022 118 1.26 % December 31, 2021 335 1.08 % (1) Represents letters of credit outstanding not under the Revolving Credit Facilities. Interest Expense, Net For the year ended December 31, ($ in millions) 2022 2021 2020 Senior Secured Notes 249 292 344 Term Loan Facilities 24 30 37 Revolving Credit Facilities 21 29 31 Other 8 4 1 Interest expense 302 354 413 Interest income (13) (13) (15) Interest expense, net 289 341 398 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other Current Liabilities December 31, ($ in millions) Notes 2022 2021 Employee compensation 173 171 Current financial liabilities 145 61 Contract liabilities 4 91 104 Accrued interest payable 85 100 Accrued expenses 75 75 Taxes other than income taxes 68 72 Jackpot liabilities 19 57 66 Royalties payable 38 14 Operating lease liabilities 11 37 39 Income taxes payable 32 104 Other 36 21 837 828 Other Non-Current Liabilities December 31, ($ in millions) Notes 2022 2021 Jackpot liabilities 19 114 130 Royalties payable 61 13 Contract liabilities 4 49 47 Reserves for uncertain tax positions 52 47 Finance lease liabilities 11 22 27 Other 75 59 372 323 |
Other Non-Operating Expense, Ne
Other Non-Operating Expense, Net | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Non-Operating Expense, Net | Other Non-Operating Expense, Net ($ in millions) Notes For the year ended December 31, 2022 2021 2020 Gain on sale of business 3 (278) — — DDI / Benson Matter provision 19 270 — — Loss on extinguishment of debt 15 13 92 28 Other expense, net 2 6 5 Total other non-operating expense, net 7 98 33 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income (loss) from continuing operations before provision for income taxes, determined by tax jurisdiction, are as follows: For the year ended December 31, ($ in millions) 2022 2021 2020 United Kingdom 40 40 (355) United States (179) (20) (776) Italy 612 438 229 Other 116 70 55 589 529 (848) The provision for income taxes consists of: For the year ended December 31, ($ in millions) 2022 2021 2020 Current: United Kingdom 3 — (1) United States 75 41 10 Italy 116 155 66 Other 57 40 31 252 236 106 Deferred: United States (66) 76 (62) Italy — (22) (1) Other (11) (16) (16) (77) 38 (78) 175 274 28 Income taxes paid, net of refunds, were $335 million, $188 million, and $89 million in 2022, 2021, and 2020, respectively. At December 31, 2022, undistributed profits of subsidiaries of approximately $600 million are considered indefinitely reinvested. Foreign withholding taxes on these undistributed earnings would be approximately $37 million. The Parent is a tax resident in the United Kingdom (the “U.K.”). A reconciliation of the provision for income taxes, from the amount computed by applying the U.K. statutory main corporation tax rates enacted in each of the Parent’s calendar year reporting periods to income (loss) from continuing operations before provision for income taxes is as follows: For the year ended December 31, ($ in millions) 2022 2021 2020 Income (loss) from continuing operations before provision for income taxes 589 529 (848) United Kingdom statutory tax rate 19.0 % 19.0 % 19.0 % Statutory tax expense (benefit) 112 100 (161) Change in valuation allowances 22 125 128 Italy regional tax (“IRAP”) and state taxes 33 41 9 Non-deductible expenses 17 25 2 Base erosion and anti-abuse (“BEAT”) tax — 17 13 Foreign tax and statutory rate differential (1) 42 17 (14) Foreign tax expense, net of U.S. federal benefit 18 11 10 Provision to return adjustment (9) 6 — GILTI tax 9 5 3 Non-deductible goodwill impairment — — 56 Non-taxable gain on sale of business (79) — — Non-taxable foreign exchange loss (gain) 2 (11) — Italian patent box tax benefit — (27) — Tax law changes 6 (38) (20) Other 2 2 2 175 274 28 Effective tax rate 29.7 % 51.8 % (3.3) % (1) Includes the effects of foreign subsidiaries’ earnings taxed at rates other than the U.K. statutory rate The components of deferred tax assets and liabilities are as follows: December 31, ($ in millions) 2022 2021 Deferred tax assets: Net operating losses 238 286 Section 163(j) interest limitation 200 190 Italian goodwill tax step-up 109 119 Provisions not currently deductible for tax purposes 150 85 Lease liabilities 63 66 Jackpot timing differences 30 30 Depreciation and amortization 63 29 Inventory reserves 5 10 Other 73 63 Gross deferred tax assets 930 878 Valuation allowance (430) (412) Deferred tax assets, net of valuation allowance 500 466 Deferred tax liabilities: Acquired intangible assets 446 462 Depreciation and amortization 156 163 Italian goodwill equity reserve liability 99 105 Lease right-of-use assets 57 60 Other 8 6 Total deferred tax liabilities 767 795 Net deferred income tax liability (267) (329) Our net deferred income taxes are recorded in the consolidated balance sheets as follows: December 31, ($ in millions) 2022 2021 Deferred income taxes - non-current asset 38 39 Deferred income taxes - non-current liability (305) (368) (267) (329) Net Operating Loss Carryforwards We have a $910 million gross tax loss carryforward, of which $621 million relates to the U.K and $289 million relates to other foreign tax jurisdictions. Carryforwards in certain tax jurisdictions begin to expire in 2031, while others have an unlimited carryforward period. A valuation allowance has been provided on $854 million of the gross net operating loss carryforwards. Portions of the tax loss carryforwards are subject to annual limitations in most of our significant tax jurisdictions, including the U.K. In addition, as of December 31, 2022, we had U.S. state tax net operating loss carryforwards, resulting in a deferred tax asset (net of U.S. federal tax benefit) of approximately $7 million. U.S. state tax net operating loss carryforwards generally expire in the years 2025 through 2043. Valuation Allowance A reconciliation of the valuation allowance is as follows: December 31, ($ in millions) 2022 2021 2020 Balance at beginning of year 412 284 156 Net charges to expense 22 86 120 Tax rate change — 39 8 Provision to return adjustment (3) 3 — Balance at end of year 430 412 284 The valuation allowance primarily relates to U.K. and foreign net operating losses and the section 163(j) business interest expense limitation carryforward that are not more likely than not expected to be realized. In assessing the need for a valuation allowance, we considered both positive and negative evidence for each jurisdiction including past operating results, estimates of future taxable income, and the feasibility of tax planning strategies. When we change our determination as to the amount of deferred tax assets that can be realized, the valuation allowance is adjusted with a corresponding impact to the provision for income taxes in the period in which such determination is made. Accounting for Uncertainty in Income Taxes A reconciliation of the unrecognized tax benefits is as follows: December 31, ($ in millions) 2022 2021 2020 Balance at beginning of year 27 27 29 Additions to tax positions - current year 1 1 — Reductions to tax positions - prior years — (1) (2) Lapses in statutes of limitations — — (1) Balance at end of year 27 27 27 At December 31, 2022, 2021, and 2020, $27 million of the unrecognized tax benefits, if recognized, would affect our effective tax rates. We recognize interest and penalties related to income tax matters in income tax expense. The charges were nominal for 2022, 2021, and 2020. The gross balance of accrued interest and penalties was $25 million and $21 million at December 31, 2022 and 2021, respectively. We file income tax returns in various jurisdictions of which the United Kingdom, United States, and Italy represent the major tax jurisdictions. All years prior to 2017 are closed with the Internal Revenue Service. As of December 31, 2022, we are subject to income tax audits in various tax jurisdictions globally, most significantly in the U.S., Mexico and Italy. Mexico Tax Audit Based on a 2006 tax examination, the Company’s Mexican subsidiary, GTECH Mexico S.A. de C.V., was issued an income tax assessment of approximately Mexican peso (“MXN”) 425 million. The assessment relates to the denial of a deduction for cost of goods sold and the taxation of intercompany loan proceeds. The Company has unsuccessfully contested the two issues in the Mexican court system receiving unfavorable decisions by the Mexican Supreme Court in June 2017 and October 2019, respectively. As of December 31, 2022, based on the unfavorable decisions received, the Company has recorded a liability of MXN 520 million (approximately $27 million], inclusive of additional interest, penalties, and inflationary adjustments, which is reported within other non-current liabilities in the consolidated balance sheet. Italy Tax Audits The Company’s Italian corporate income tax returns for the calendar years ended December 31, 2015 through December 31, 2019 are under examination. On October 19, 2020, the Italian tax authorities issued a final audit report for calendar year 2015. The Company filed a defense memorandum with the Italian Tax Authorities on May 29, 2021 rejecting all findings. On |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Jackpot Commitments Jackpot liabilities are recorded as current and non-current liabilities as follows: ($ in millions) December 31, 2022 Current liabilities 57 Non-current liabilities 114 170 Future jackpot liabilities as of December 31, 2022 are due as follows: ($ in millions) Previous Winners Future Winners Total 2023 22 35 57 2024 18 5 23 2025 15 1 16 2026 13 1 14 2027 11 1 12 Thereafter 66 11 77 Future jackpot payments due 146 52 198 Unamortized discounts (27) Total jackpot liabilities 170 Performance and other bonds Certain contracts require us to provide a surety bond as a guarantee of performance for the benefit of customers; bid and litigation bonds for the benefit of potential customers; and WAP bonds that are used to secure our financial liability when a player elects to have their WAP jackpot winnings paid over an extended period of time. These bonds give beneficiaries the right to obtain payment and/or performance from the issuer of the bond if certain specified events occur. In the case of performance bonds, which generally have a term of one year, such events include our failure to perform our obligations under the applicable contracts. In general, we would only be liable for these guarantees in the event of default in our performance of our obligations under each contract, the probability of which we believe is remote. Accordingly, no liability has been recorded as of December 31, 2022 and 2021 related to these bonds. Legal Proceedings From time to time, the Parent and/or one or more of its subsidiaries are party to legal, regulatory, or administrative proceedings regarding, among other matters, claims by and against us, and injunctions by third parties arising out of the ordinary course of busines s or its other business activities. Licenses are also subject to legal challenges by competitors seeking to annul awards made to the Company. The Parent and/or one or more of its subsidiaries are also, from time to time, subjects of, or parties to, ethics and compliance inquiries and investigations related to the Company’s ongoing operations. At December 31, 2022, provisions for all legal proceedings, including those discussed in detail below, was $225 million. With respect to legal proceedings where we have determined that an incremental loss is reasonably possible but we are unable to determ ine an estimate of that reasonably possible loss in excess of amounts already accrued, no additional amounts have been accrued, given the uncertainties of litigation and the inherent difficulty of predicting the outcome of legal proceedings. Adrienne Benson and Mary Simonson, individually and on behalf of all others similarly situated v. Double Down Interactive LLC, et al. On April 9, 2018, a plaintiff, Adrienne Benson, filed a putative class action against the Company’s wholly-owned subsidiary, International Game Technology, and Double Down Interactive LLC, a Washington limited liability company in the United States District Court for the Western District of Washington (the “Benson Matter”). On July 23, 2018, plaintiff filed a first amended complaint, adding named plaintiff Mary Simonson, and adding allegations to represent a putative class of all persons in the United States who purchased and allegedly lost virtual “chips” while playing games through an online gaming platform called Double Down Casino. On April 26, 2021, plaintiffs filed a second amended complaint naming IGT (“IGT U.S. Gaming OpCo”), a wholly-owned subsidiary of International Game Technology, as an additional defendant. Plaintiffs have asserted claims for alleged violations of Washington’s Recovery of Money Lost at Gambling Act, Washington’s Consumer Protection Act, and for unjust enrichment, and seeks unspecified money damages (including treble damages as appropriate), the award of reasonable attorneys’ fees and costs, pre- and post-judgment interest, and injunctive and/or declaratory relief. International Game Technology acquired Double Down Interactive LLC (“DDI”) in 2012 and, effective June 1, 2017, sold DDI to DoubleU Diamond LLC (“DoubleU”) pursuant to a purchase agreement (the “Purchase Agreement”). At all times relevant, DDI was the sole operator of the Double Down Casino, and International Game Technology asserts, among other defenses, that it has no liability for the actions of a bona fide subsidiary. On May 10, 2018, DDI and DoubleU sent a claim notice (the “DDI Claim Notice”) to International Game Technology seeking indemnification and reimbursement of defense costs for all claims against DoubleU and its affiliates (the “DoubleU Entities”) in the Benson Matter, pursuant to the Purchase Agreement. On June 7, 2018, International Game Technology responded to the DDI Claim Notice, rejecting any obligation to indemnify or pay defense costs of the DoubleU Entities, and sent a claim notice to DoubleU for indemnification and reimbursement of defense costs for all claims against International Game Technology in the Benson Matter pursuant to the terms of certain agreements with DoubleU. On June 17, 2021, IGT U.S. Gaming OpCo sent a claim notice to DoubleU for indemnification and reimbursement of defense costs for all claims against IGT U.S. Gaming OpCo in the Benson Matter pursuant to the terms of certain agreements with DoubleU. On August 29, 2022, the Company and DoubleDown Interactive Co., Ltd., parent company of DDI, announced an agreement in principle to settle the lawsuit and associated proceedings. Under the terms of the settlement, which would take effect only after final court approval of the proposed class settlement, a total of $415 million will be paid into a settlement fund, of which the Company’s subsidiaries will contribute $270 million and DDI will contribute $145 million. Subject to final court approval of the settlement in the Benson Matter, International Game Technology, IGT U.S. Gaming OpCo, and the DoubleU Entities have also resolved all indemnification and other claims between themselves and their respective subsidiaries and affiliates relating to the Benson Matter. On November 14, 2022, the court granted preliminary approval of the settlement. As a result of the settlement agreement, the Company accrued $270 million of other non-operating expense, net for the year ended December 31, 2022, respectively, related to the loss associated with the Benson Matter and related claims between the Company and the DoubleU Entities. In November, 2022, the Company placed $50 million in escrow, resulting in $220 million recorded as DDI / Benson Matter provision as of December 31, 2022 in the consolidated balance sheets. The cash flows relating to this payment are reported in operating activities in the consolidated statements of cash flows. The Company will continue to monitor these matters and may adjust its disclosure and accrual in accordance with its Process for Disclosure and Recording of Liabilities Related to Legal Proceedings as described in Note 2 - Summary of Significant Accounting Policies, herein. Texas Fun 5’s Instant Ticket Game IGT Global Solutions Corporation (formerly GTECH Corporation) is party to four lawsuits in Texas state court arising out of the Fun 5’s instant ticket game sold by the Texas Lottery Commission (“TLC”) from September 14, 2014 to October 21, 2014. Plaintiffs allege each ticket’s instruction for Game 5 provided a 5x win (five times the prize box amount) any time the “Money Bag” symbol was revealed in the “5X BOX”. However, TLC awarded a 5x win only when (1) the “Money Bag” symbol was revealed and (2) three symbols in a pattern were revealed. (a) Steele, James et al. v. GTECH Corp. , filed on December 9, 2014 in Travis County (No. D1GN145114). Through intervenor actions, over 1,200 plaintiffs claim damages in excess of $600 million, as alleged via discovery. GTECH Corporation’s plea to the jurisdiction for dismissal based on sovereign immunity was denied. GTECH Corporation appealed. The appellate court ordered that Plaintiffs’ sole remaining claim should be reconsidered. On April 27, 2018, this and a related matter were appealed to the Texas Supreme Court, which heard arguments on December 3, 2019. On June 12, 2020, the Texas Supreme Court ruled that Plaintiffs could proceed with their fraud allegations in the lower court; all other claims were dismissed. On March 26, 2021, October 29, 2021, and February 3, 2022 (two motions), GTECH Corporation filed motions for summary judgment. One such motion was denied on February 25, 2022, while the other three remain pending. The court has ordered the parties to mediation, which is scheduled to be held during the first quarter of 2023. Trial for the four bellwether plaintiffs is currently scheduled to begin in the second quarter of 2023. (b) Guerra, Esmeralda v. GTECH Corp. et al. , filed on June 10, 2016 in Hidalgo County (No. C277716B). Plaintiff claims damages in excess of $0.5 million. Trial is currently scheduled for July 10, 2023. (c) Wiggins, Mario & Kimberly v. IGT Global Solutions Corp. , filed on September 7, 2016 in Travis County (No. D1GN16004344). Plaintiffs claim damages in excess of $1 million. (d) Campos, Osvaldo Guadalupe et al. v. GTECH Corp. , filed on October 20, 2016 in Travis County (No. D1GN16005300). Plaintiffs claim damages in excess of $1 million. We dispute the claims made in each of these cases and continue to defend against these lawsuits. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Shares Authorized and Outstanding The Board of Directors of the Parent (the “Board”) may issue ordinary shares of the Parent upon shareholder approval. At the Parent’s 2022 annual general meeting, the shareholders authorized the issuance of up to 135.6 million additional ordinary shares (of which 67.8 million can be issued in connection with an offer by way of rights issue), with a par value of $0.10 per share, for a period expiring at the end of the 2023 annual general meeting, or, if sooner, on August 9, 2023, unless previously revoked, varied, or renewed. Ordinary shares outstanding were as follows: December 31, 2022 2021 2020 Balance at beginning of year 203,688,118 204,856,564 204,435,333 Shares issued under restricted stock plans 1 702,273 331,554 421,231 Shares issued upon exercise of stock options 61,714 — — Repurchases of common stock (5,373,196) (1,500,000) — Balance at end of year 199,078,909 203,688,118 204,856,564 (1) In January 2023, the Parent issued 605,026 shares related to RSUs that vested in December 2022. Refer to Note 23 - Stock-Based Compensation for further information. Share Repurchase Program On November 15, 2021, the Parent’s Board of Directors authorized a share repurchase program (the “Program”) pursuant to which the Company may repurchase up to $300 million of the Parent’s outstanding ordinary shares during a period of four years commencing on November 18, 2021. At the Parent’s 2022 annual general meeting, the Parent’s shareholders granted authority to repurchase, subject to a maximum repurchase price, up to 20,338,793 of the Parent’s ordinary shares. This authority remains valid until November 9, 2023, unless previously revoked, varied, or renewed at the Parent’s 2023 annual general meeting. The Parent repurchases ordinary shares under the Program at the market price on the trade date and the Parent cancels repurchased ordinary shares or holds them in treasury. If the Parent holds repurchased ordinary shares in treasury, all amounts paid to repurchase such shares have been recorded as treasury stock in our consolidated balance sheets until they are reissued or retired. Under the Program, the Parent repurchased 5.4 million ordinary shares for $114 million during 2022. Dividends We declared a $0.20 cash dividend per share in all four quarters of 2022, the fourth quarter of 2021, and the first quarter of 2020. Accumulated Other Comprehensive Income The following table details the changes in AOCI: Unrealized Gain (Loss) on: AOCI ($ in millions) Foreign Hedges Other Total Attributable Attributable to IGT PLC Balance at December 31, 2019 231 (8) 4 227 36 263 Change during period 128 (1) — 127 (59) 68 Reclassified to operations (1) (1) — — (1) — (1) Other comprehensive income (loss) 128 (1) — 127 (59) 67 Balance at December 31, 2020 358 (9) 4 353 (24) 330 Change during period 9 3 (1) 11 51 62 Reclassified to operations (1) 19 1 — 20 1 21 Tax effect — (1) — — — — Other comprehensive income (loss) 28 3 (1) 30 52 82 Balance at December 31, 2021 387 (6) 3 384 28 412 Change during period 55 2 1 57 27 84 Reclassified to operations (1) 36 (3) — 34 — 34 Other comprehensive income (loss) 90 (1) 1 91 27 117 Balance at December 31, 2022 477 (7) 4 474 55 529 (1) Foreign currency translation of approximately $19 million was reclassified into gain on sale of discontinued operations, net of tax on the consolidated statements of operations for the year ended December 31, 2021. Other foreign currency translation adjustments were reclassified into other non-operating expense, net on the consolidated statements of operations for subsidiaries sold for the year ended December 31, 2022 and foreign exchange loss (gain), net for subsidiaries liquidated for the years ended December 31, 2022 and 2020. Unrealized gain (loss) on hedges were reclassified into service revenue on the consolidated statements of operations for the years ended December 31, 2022 and 2021. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities We hold ownership interests in the following variable interest entities (“VIEs”): Name of subsidiary % Ownership held by the Company Lottoitalia S.r.l. (“Lottoitalia”) 61.50 % Lotterie Nazionali S.r.l. (“LN”) 64.00 % Northstar New Jersey Lottery Group, LLC (“Northstar NJ”) (1) 76.64 % (1) Northstar New Jersey Holding Company LLC, of which we are a 71.12% shareholder, holds the 76.64% ownership in Northstar NJ. Lottoitalia holds a license to operate the Lotto game in Italy through November 2025. LN holds a license to operate the Scratch & Win instant lottery game in Italy through September 2028. Northstar NJ manages a wide range of the lottery’s day-to-day operations in the State of New Jersey, as well as provides marketing and sales services under a license valid through June 2029. We are the principal operating partner fulfilling the requirements under the licenses held by the VIEs. As such, we have the power to direct the activities that significantly affect the VIEs’ economic performance, along with the right to receive benefits or the obligation to absorb losses that could potentially be significant to the VIEs. As a result, we concluded we are the primary beneficiary of the VIEs and they have been consolidated. Accordingly, the balance sheet and operating activity of the VIEs are included in our consolidated financial statements and we adjust the net income (loss) in our consolidated statement of operations to exclude the non-controlling interests’ proportionate share of results. We present the proportionate share of non-controlling interests as equity in the consolidated balance sheets. The carrying amounts and classification of these VIEs’ assets and liabilities in our consolidated balance sheets at December 31, 2022 and 2021 are as follows: December 31, ($ in millions) 2022 2021 Current assets 941 1,124 Non-current assets 936 1,217 Total assets 1,877 2,341 Total liabilities 521 615 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We report our financial performance based on three business segments: Global Lottery, Global Gaming, and PlayDigital, and analyze revenue by segment as well as operating income as the measure of segment profitability. Through our three business segments, we operate and provide an integrated portfolio of innovative gaming technology products and services including online and instant lottery systems, iLottery, instant ticket printing, lottery management services, gaming systems, electronic gaming machines, iGaming, and sports betting. The Global Lottery segment has full responsibility for the worldwide traditional lottery and iLottery business, including sales, operations, product development, technology, and support. The Global Gaming segment has full responsibility for the worldwide land-based gaming business, including sales, product management, studios, global manufacturing, operations, and technology. The PlayDigital segment has full responsibility for the worldwide iGaming and sports betting business, including sales, operations, studios, technology, and support. Our three business segments are supported by central corporate support functions, including finance, people and transformation, legal, marketing and communications, corporate public affairs, and strategy and corporate development. Certain support costs that are identifiable and that benefit our business segments are allocated to them. Each allocation is measured differently based on the specific facts and circumstances of the costs being allocated. Corporate support function expenses that are not allocated to the business segments, which are principally composed of selling, general and administrative expenses, are reported as Corporate and Other expenses, along with goodwill impairment and the depreciation and amortization of acquired tangible and intangible assets in connection with acquired companies. Segment assets are not reported to, or used by, the chief operating decision maker to allocate resources to, or assess performance of, the segments and therefore, total segment assets have not been disclosed. Global Lottery Our Global Lottery segment provides lottery products and services primarily to governmental organizations through operating contracts, FMCs, LMAs, and product sales contracts. As part of our lottery product and services, we provide instant and draw-based lottery products, point-of-sale machines, central processing systems, software, commercial services, instant ticket printing services, and other related equipment and support services. We categorize revenue from operating contracts, FMCs, and LMAs as “Operating and facilities management contracts” and revenue from commercial services, software hosting, software maintenance, and other services not included within operating contracts, FMCs, or LMAs as service revenue from “Systems, software, and other”. Revenue included within “Operating and facilities management contracts” include all services required by the contract, including iLottery and instant ticket printing. We categorize sales or sales-type leases of lottery terminals, lottery systems, fixed-fee software licenses, and instant tickets not part of “Operating and facilities management contracts” as product sales from “Lottery products”. Global Gaming Our Global Gaming segment provides gaming products and services including software and game content, casino gaming management systems, video lottery terminals (“VLTs”), VLT central systems, and other related equipment and support services to commercial and tribal casino operators. We categorize revenue from Wide Area Progressive services, and operating leases for VLTs and other gaming machines as service revenue from “Gaming terminal services”. We categorize sales or usage-based royalties promised in exchange for software intellectual property licenses, and systems as service revenue from “Systems, software, and other”. Revenue from the sale or sales-type lease of gaming machines, systems, component parts, and other miscellaneous equipment and services are categorized as product sales from “Gaming terminals” and revenue from systems, fixed-fee software licenses, casino gaming management systems, game content, and spare parts as product sales from “Other”. PlayDigital Our PlayDigital segment provides iGaming systems and digital platforms offering customers a remote game server solution, which is a fast gateway to extensive casino content, and digital gaming services that enhance player experiences and create marketing opportunities around either the Company’s games or third-party games via our aggregation capabilities. The segment also provides sports betting technology and services to commercial and tribal operators and lotteries in regulated markets, primarily in the U.S. We categorize revenue from iGaming and sports betting as service revenue from “PlayDigital services”. Segment information is as follows: For the year ended December 31, 2022 ($ in millions) Global Lottery Global Gaming PlayDigital Business Segments Total Corporate and Other Total IGT PLC Service revenue 2,436 714 209 3,359 — 3,359 Product sales 157 709 1 866 — 866 Total revenue 2,593 1,423 209 4,225 — 4,225 Operating income (loss) 909 242 50 1,201 (279) 922 Depreciation and amortization 196 119 17 333 160 492 Expenditures for long-lived assets (141) (140) (6) (287) (6) (293) For the year ended December 31, 2021 ($ in millions) Global Lottery Global Gaming PlayDigital Business Segments Total Corporate and Other Total IGT PLC Service revenue 2,690 630 163 3,483 — 3,483 Product sales 123 482 1 606 — 606 Total revenue 2,812 1,112 165 4,089 — 4,089 Operating income (loss) 1,088 43 33 1,164 (262) 902 Depreciation and amortization 225 126 15 366 160 526 Expenditures for long-lived assets (123) (67) (13) (203) (6) (208) For the year ended December 31, 2020 ($ in millions) Global Lottery Global Gaming PlayDigital Business Segments Total Corporate and Other Total IGT PLC Service revenue 2,043 483 114 2,640 — 2,640 Product sales 121 354 1 476 — 476 Total revenue 2,164 837 115 3,115 — 3,115 Operating income (loss) 642 (212) 6 436 (544) (107) Depreciation and amortization 231 146 15 392 175 566 Expenditures for long-lived assets (149) (64) (11) (224) (2) (226) Geographical Information Revenue from external customers, which is based on the geographical location of our customers, is as follows: For the year ended December 31, ($ in millions) 2022 2021 2020 United States 2,355 2,126 1,666 Italy 1,062 1,307 896 United Kingdom 67 72 64 Rest of Europe 254 217 209 All other 488 368 280 Total 4,225 4,089 3,115 Revenue from one customer in the Global Lottery segment represented approximately 18%, 23%, and 19% of consolidated revenue in 2022, 2021, and 2020, respectively. Long-lived assets, which are comprised of Systems & Equipment and PPE, are based on the geographical location of the assets as follows: December 31, ($ in millions) 2022 2021 United States 775 766 Italy 79 125 United Kingdom 6 9 Rest of Europe 92 93 All other 63 63 Total 1,016 1,056 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Incentive Awards Stock-based incentive awards are provided to directors and employees under the terms of our 2015 and 2021 Equity Incentive Plans (collectively, the “Plan”) as administered by the Board. Awards available under the Plan principally include stock options, performance share units, restricted share units or any combination thereof. The maximum number of new shares that may be granted under the Plan is 20.5 million shares. To the extent any award is forfeited, expires, lapses, or is settled for cash, the award is available for reissue under the Plan. We utilize authorized and unissued shares to satisfy all shares issued under the Plan. Stock Options Stock options are awards that allow the employee to purchase shares of our stock at a fixed price. Stock options are granted under the Plan at an exercise price not less than the fair market value of a share on the date of grant. In 2021, stock options were granted solely to our former Chief Executive Officer, which will vest in 2024 subject to certain performance and other criteria, and have a contractual term of approximately seven years. No stock options were granted in 2022 or 2020. Stock Awards Stock awards are principally made in the form of performance share units (“PSUs”) and restricted share units (“RSUs”). PSUs are stock awards where the number of shares ultimately received by the employee depends on the Company’s performance against specified targets, which may include Adjusted EBITDA, Adjusted Free Cash Flow, Total Shareholder Return (“TSR”) relative to the Russell Mid Cap Market Index, or share price. PSUs typically vest 50% over an approximate three-year period and 50% over an approximate four-year period (i.e. four years to vest both tranches). In 2021, a second round of PSUs was granted in lieu of there being no 2020 PSUs that vest 50% over an approximate two-year period and 50% over an approximate three-year period. Dividend equivalents are not paid under the Plan. The fair value of each PSU is determined on the grant date or modification date, based on the Company’s stock price, adjusted for the exclusion of dividend equivalents, and assumes that performance targets will be achieved. Over the performance period, the number of shares of stock that will be issued is adjusted based upon the probability of achievement of performance targets. The ultimate number of shares issued and the related compensation cost recognized as expense is based on a comparison of the final performance metrics to the specified targets, if applicable. RSUs are stock awards granted to directors that entitle the holder to shares of common stock as the award vests, typically over a one-year period, and have a contractual term of 10 years. Dividend equivalents are not paid under the Plan. In 2020, RSUs were also granted to employees, which vested in approximately one Stock Option Activity A summary of our stock option activity and related information is as follows: Weighted-Average Stock Exercise Price Per Share ($) Remaining Contractual Term (in years) Aggregate Intrinsic Value ($ in millions) Outstanding at January 1, 2022 422,500 17.51 Granted — — Forfeited — — Exercised (250,000) 15.53 Outstanding at December 31, 2022 172,500 20.37 5.36 At December 31, 2022: Vested and expected to vest 172,500 20.37 5.36 — Exercisable — — — — The total intrinsic value of stock options exercised was $3 million in 2022. There were no cash proceeds from stock options exercised in 2022 due to net share settlement. No stock options were exercised in 2021 and 2020. Fair Value of Stock Options Granted We estimate the fair value of stock options at the date of grant using a valuation model that incorporates key inputs and assumptions as detailed in the table below. The weighted-average grant date fair value of stock options granted during 2021 was $9.82 per share. 2021 Valuation model Monte Carlo Exercise price ($) 20.37 Expected option term (in years) 2.00 Expected volatility of the Company’s stock (%) 60.00 Risk-free interest rate (%) 0.80 Dividend yield (%) — The expected volatility assumes the historical volatility is indicative of future trends, which may not be the actual outcome. The expected option term is based on historical data and is not necessarily indicative of exercise patterns that may occur. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards, and subsequent events are not indicative of the reasonableness of our original estimates of fair value. Stock Award Activity A summary of our stock award activity and related information is as follows: PSUs Weighted- Average Grant Date Fair Value ($) RSUs Weighted- Average Grant Date Fair Value ($) Nonvested at January 1, 2022 5,300,825 21.50 1,059,472 10.05 Granted 1,714,667 25.37 95,357 20.46 Vested — — (1,034,846) 10.16 Forfeited (1,734,548) 12.08 (29,302) 9.08 Nonvested at December 31, 2022 5,280,944 25.85 90,681 20.07 At December 31, 2022: Unrecognized cost for nonvested awards ($ in millions) 64 — Weighted-average future recognition period (in years) 2.27 0.35 The total vest-date fair value of PSUs vested was $3 million in 2021 and 2020. No PSUs vested in 2022. The total vest-date fair value of RSUs vested was $23 million, $33 million, and $1 million for 2022, 2021, and 2020, respectively. Fair Value of Stock Awards Granted We estimated the fair value of PSUs at the date of grant using a Monte Carlo simulation valuation model, as the awards include a market condition. The market condition is based on the Company’s TSR relative to the Russell Midcap Market Index. During 2022, 2021, and 2020, we estimated the fair value of RSUs at the date of grant based on our stock price. Details of the grants are as follows: 2022 2021 2020 PSUs granted during the year 1,714,667 3,740,075 — Weighted-average grant date fair value ($) 25.37 26.10 — RSUs granted during the year 95,357 79,844 2,375,141 Weighted-average grant date fair value ($) 20.46 22.29 9.04 Stock-Based Compensation Expense Total compensation cost (recovery) for our stock-based compensation plans is recorded based on the employees’ respective functions as detailed below. For the year ended December 31, ($ in millions) 2022 2021 2020 Cost of services 2 2 (1) Selling, general and administrative 37 30 (4) Research and development 2 3 (1) Stock-based compensation expense before income taxes 41 35 (7) Income tax benefit (provision) 10 8 (2) Total stock-based compensation, net of tax 31 27 (5) The 2020 recovery results from the reversal of 2019 and 2018 expense due to certain PSUs that were no longer expected to vest. PlayDigital Synthetic Equity Award Program In 2021, the Company established a synthetic equity award program (the “PlayDigital Equity Award Program”) designed to align the incentives of certain employees of the Company’s PlayDigital segment with the growth in the valuation of such business. The amount of compensation paid to an employee will depend on the valuation of the PlayDigital segment on each applicable vesting date and requires the employee’s continued service through each vesting date. Awards under the PlayDigital Equity Award Program vest in three tranches, with certain specified percentages (the “Tranche Percentages”) of the award scheduled to vest three, four, and five years after the grant date. The first vesting date is subject to acceleration in the event of a separate public listing of the PlayDigital business, while the remaining two vesting dates shall not be affected. PlayDigital synthetic equity awards provide that on each applicable vesting date, the employee shall be entitled to an amount (payable in a combination of equity and cash) equal to a certain percentage (the “Synthetic SAR Percentage”) of the appreciation, if any, in the valuation of the PlayDigital business at each vesting date over the contractually agreed initial valuation. Additionally, the employee shall be entitled to an amount (payable in a combination of equity and cash) equal to a certain percentage (the “Synthetic RSU Percentage”) of the valuation of the PlayDigital business as of each vesting date. At December 31, 2022, $6 million of estimated unrecognized compensation expense attributable to PlayDigital synthetic equity awards will be recognized as compensation expense over a weighted average period of 3.3 years. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the computation of basic and diluted income (loss) per share of common stock: For the year ended December 31, ($ in millions and shares in thousands, except per share amounts) 2022 2021 2020 Numerator: Net income (loss) from continuing operations attributable to IGT PLC 275 65 (939) Net income from discontinued operations attributable to IGT PLC — 417 41 Net (loss) income attributable to IGT PLC 275 482 (898) Denominator: Weighted-average shares - basic 201,825 204,954 204,725 Incremental shares under stock based compensation plans 1,589 1,841 — Weighted-average shares - diluted 203,414 206,795 204,725 Net income (loss) from continuing operations attributable to IGT PLC per common share - basic 1.36 0.32 (4.59) Net income (loss) from continuing operations attributable to IGT PLC per common share - diluted 1.35 0.31 (4.59) Net income from discontinued operations attributable to IGT PLC per common share - basic — 2.03 0.20 Net income from discontinued operations attributable to IGT PLC per common share - diluted — 2.02 0.20 Net income (loss) attributable to IGT PLC per common share - basic 1.36 2.35 (4.39) Net income (loss) attributable to IGT PLC per common share - diluted 1.35 2.33 (4.39) Certain stock options to purchase common shares were outstanding, but were excluded from the computation of diluted earnings per share, because the exercise price of the options was greater than the average market price of the common shares for the full year, and therefore, the effect would have been antidilutive. During years when we are in a net loss position, certain outstanding stock options and unvested restricted stock awards are excluded from the computation of diluted earnings per share because including them would have had an antidilutive effect. For the year ended December 31, 2022, there were nominal stock options and unvested restricted stock awards shares excluded from the computation of diluted earnings per share because including them would have had an antidilutive effect. No shares were antidilutive for the year ended December 31, 2021. There were 1 million shares that would have had an antidilutive effect for the year ended December 31, 2020. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We engage in business transactions with certain related parties which include (i) De Agostini S.p.A. (“De Agostini”) or entities directly or indirectly controlled by De Agostini, (ii) other entities and individuals capable of exercising control, joint control, or significant influence over us, and (iii) our unconsolidated subsidiaries or joint ventures. Members of the Board, executives with authority for planning, directing, and controlling the activities of the Company and such Directors’ and executives’ close family members are also considered related parties. We may make investments in such entities, enter into transactions with such entities, or both. De Agostini Group De Agostini S.p.A. (“De Agostini”) has a controlling interest in IGT. As of December 31, 2022, De Agostini had an economic interest of approximately 47.4% (excluding treasury shares) and, due to its election to exercise the special voting shares associated with its ordinary shares pursuant to the Loyalty Plan, a voting interest of approximately 63.2% of the total voting rights (excluding treasury shares). Amounts receivable from De Agostini and subsidiaries of De Agostini (collectively, the “De Agostini Group”) are non-interest bearing. Transactions with the De Agostini Group include payments for support services provided and office space rented pursuant to a lease entered into prior to the formation of the Company. In addition, certain of our Italian subsidiaries had a corporate income tax unit agreement, and in some cases, a Group VAT agreement, with De Agostini pursuant to which De Agostini consolidates certain Italian subsidiaries of De Agostini for the collection and payment of taxes to the Italian tax authority. Related party amounts due to or from the De Agostini Group are as follows: December 31, ($ in millions) 2022 2021 Trade receivables 2 — Tax-related receivables — 4 Trade payables 1 1 Tax-related payables 3 3 PlayDigital Synthetic Equity Award Program On March 9, 2022, Enrico Drago, Chief Executive Officer, PlayDigital, an immediate family member of Marco Drago, a member of the Parent’s board of directors, was granted a synthetic equity award pursuant to the PlayDigital Equity Award Program with Tranche Percentages of 35%, 25%, and 40%, a Synthetic SAR Percentage of 1.275%, and a Synthetic RSU Percentage of 0.225%. At December 31, 2022, $4 million of estimated unrecognized compensation expense attributable to the synthetic equity award granted to Mr. Drago will be recognized as compensation expense over a weighted average period of 3.5 years. Unconsolidated Subsidiaries, Partnerships and Joint Ventures From time to time, we make strategic investments in publicly traded and privately held companies that develop software, hardware, and other technologies or provide services supporting its technologies. We may also purchase from or make sales to these organizations. Ringmaster S.r.l. We have a 50% interest in Ringmaster S.r.l. (“Ringmaster”), an Italian joint venture, that is accounted for using the equity method of accounting. Ringmaster provides software development services for our interactive gaming business pursuant to an agreement dated December 7, 2011. Our investment in Ringmaster was $1 million at December 31, 2022 and 2021. We incurred $9 million, $6 million, and $7 million in expenses to Ringmaster for the years ended December 31, 2022, 2021, and 2020, respectively. Connect Ventures One LP and Connect Ventures Two LP We hold investments in two venture capital funds, Connect Ventures One LP and Connect Ventures Two LP (the “Connect Ventures”), that are accounted for as equity method investments. De Agostini also holds investments in the Connect Ventures, and Nicola Drago, an immediate family member of Marco Drago, a member of the Parent’s board of directors, holds a 10% ownership interest in, and is a non-executive member of, Connect Ventures LLP, the fund that manages the Connect Ventures. Our investment in Connect Ventures One LP was $3 million at December 31, 2022 and 2021. Our investment in Connect Ventures Two LP was $5 million and $6 million at December 31, 2022 and 2021, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Preparation Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements are stated in millions of United States (“U.S.”) dollars (except share and per share data) unless otherwise indicated, and are computed based on the amounts in thousands. Certain amounts in columns and rows within tables may not foot due to rounding. Percentages and earnings per share amounts presented are calculated from the underlying unrounded amounts. On May 10, 2021 , the Company completed the sale of its Italian B2C gaming machine, sports betting, and digital gaming businesses (“Italian B2C businesses”), which met the criteria to be reported as a discontinued operation during the fourth quarter of 2020. As a result, the historical results of the Italian B2C businesses have been excluded from both continuing operations and segment results for all periods presented. Unless otherwise indicated, amounts and activity throughout these Consolidated Financial Statements are presented on a continuing operations basis. Refer to Note 3 - Business Acquisitions and Divestitures for further details. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Parent, our majority-owned or controlled subsidiaries, and any variable interest entities in which we are the primary beneficiary. Intercompany accounts and transactions have been eliminated in consolidation. Earnings or losses attributable to non-controlling interests in a subsidiary are included in net income (loss) in the consolidated statements of operations. Investments in which we have the ability to exercise significant influence, but do not control, and with respect to which we are not the primary beneficiary, are accounted for using the equity method of accounting. Equity investments in which we have no ability to exercise significant influence that do not have a readily determinable fair value and do not have a Net Asset Value per share are measured at cost, less impairment, plus or minus changes resulting from observable price changes. Equity method investments and equity investments in which we have no ability to exercise significant influence are included within other non-current assets in the consolidated balance sheets. |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements requires us to make estimates, judgments, and assumptions which affect the reported amounts of assets, liabilities, equity, revenues and expenses, and related disclosure of contingent liabilities. On an ongoing basis we evaluate our estimates, judgments, and methodologies. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities, and equity, and the amount of revenues and expenses. Accordingly, actual results and outcomes could differ from those estimates. |
Revenue | Revenue We account for a contract with a customer when: we have written approval; the parties are committed to perform their respective obligations; the rights of the parties, including payment terms, are identified; the contract has commercial substance; and collection of consideration is probable. Performance obligations are identified at contract inception. A performance obligation is a promise in a contract with a customer to transfer products or services that are distinct. If we enter into two or more contracts at or near the same time, the contracts may be combined and accounted for as one contract, in which case we determine whether the services or products in the combined contract are distinct. A service or product that is promised to a customer is distinct if both of the following criteria are met: the customer can benefit from the service or product either on its own or together with other resources that are readily available to the customer; and our promise to transfer the service or product to the customer is separately identifiable from other promises in the contract. Revenue is recognized when (or as) control of a promised service or product transfers to a customer, in an amount that reflects the consideration (which represents the transaction price) to which we expect to be entitled in exchange for transferring that service or product. If the consideration promised in a contract includes a variable amount, we estimate the amount to which we expect to be entitled using either the expected value or most likely amount method. Our contracts may include terms that could cause variability in the consideration, including, for example, rebates, volume discounts, service-level penalties, and performance bonuses or other forms of contingent revenue. Our standard payment terms dictate that payment is due upon receipt of invoice, payable within 30 days. Invoices are generally issued as control transfers and/or as services are rendered. Additionally, in determining the transaction price, we adjust the promised amount of consideration for the effects of the time value of money if the payment terms are not standard and the timing of payments agreed to by the parties to the contract provide the customer or the Company with a significant benefit of financing, in which case the contract contains a significant financing component. Most arrangements that contain a significant financing component include explicit financing terms. We may include subcontractor services or third-party vendor services or products in certain arrangements. In these arrangements, revenue from sales of third-party vendor services or products are recorded net of costs when we are acting as an agent between the customer and the vendor, and gross when we are the principal for the transaction. To determine whether we are an agent or principal, we consider whether we obtain control of the services or products before they are transferred to the customer. In making this evaluation, several factors are considered, most notably whether we have primary responsibility for fulfillment to the customer, as well as inventory risk and pricing discretion. Additional information on revenue recognition is included in Note 4.- Revenue Recognition. Arrangements with Multiple Performance Obligations We often enter into contracts that consist of a combination of services and products based on the needs of our customers, which may include post-contract support for the software and a contract for post-warranty maintenance service for the hardware. These contracts consist of multiple services and products, whereby the hardware and software may be delivered in one period and the software support and hardware maintenance services are delivered over time. To the extent that a service or product in an arrangement with multiple performance obligations is subject to other specific accounting guidance, that service or product is accounted for in accordance with such specific guidance. For all other distinct services and products in these arrangements, the arrangement transaction price is allocated to each performance obligation on a relative standalone selling price basis or another method that depicts the amount of consideration to which we expect to be entitled in exchange for transferring the promised services or products. If the services and products are not distinct, we determine an appropriate measure of progress based on the nature of our overall promise for the single performance obligation. To the extent we grant the customer the option to acquire additional services or products in one of these arrangements, we account for the option as a distinct performance obligation in the contract only if the option provides a material right to the customer that it would not receive without entering into the contract (i.e., a significant discount incremental to the range of discounts typically given for the service or product), in which case the customer in effect pays in advance for the option to purchase future services or products. We allocate a portion of the transaction price to the material right and recognize revenue when those future services or products are transferred or when the option expires. Standalone Selling Price We allocate the transaction price to each performance obligation on a relative standalone selling price (“SSP”) basis. The SSP is the price at which we would sell a promised service or product separately to a customer. In some instances, we are able to establish SSP based on the observable prices of services or products sold separately in comparable circumstances to a similar customer. We typically establish an SSP range for our services and products that are reassessed on a periodic basis or when facts and circumstances change. In other instances, we may not be able to establish an SSP range based on observable prices, and we estimate the SSP by considering multiple factors including, but not limited to, overall market conditions, including geographic or regional specific factors, competitive positioning, competitor actions, internal costs, profit objectives, and pricing practices. Estimating SSP is a formal process that includes review and approval by management. Contract Costs Certain eligible, non-recurring costs incurred in the initial phases of service contracts are capitalized and amortized ratably over the expected period of benefit, which includes anticipated contract renewals or extensions. Recurring operating costs in these contracts are recognized as incurred. Practical Expedients and Exemptions We report revenue net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions. We generally expense incremental costs of obtaining a contract (e.g., sales commissions) when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses in our consolidated statements of operations. For certain of our long-term contracts, recoverable costs are capitalized and amortized on a straight-line basis over the expected customer relationship period. We do not account for significant financing components if the period between when we transfer the promised service or product to the customer and when the customer pays for that service or product will be one year or less. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) performance obligations for which we recognize variable revenue at the amount that we have the right to invoice for services performed, (iii) contracts for which variable consideration is accounted for in accordance with sales-based or usage-based royalty guidance, and (iv) wholly unperformed contracts. Contract Assets and Liabilities |
Stock-Based Compensation | Stock-Based CompensationStock-based compensation represents the cost related to stock-based awards granted to directors and employees. Stock-based compensation cost is measured at the grant date or modification date, based on the estimated fair value of the award and recognized as expense, net of estimated forfeitures, over the vesting periods. For awards subject to cliff vesting, compensation cost is recognized by way of a straight-line method over the award’s expected vesting period. For awards subject to graded vesting, compensation cost is recognized by way of an accelerated attribution method over the entire awards’ expected vesting periods. |
Advertising | Advertising Advertising costs are expensed as incurred. Advertising expense was $28 million, $33 million, and $25 million for the years ended December 31, 2022, 2021, and 2020, respectively. |
Research and Development Costs | Research and Development CostsResearch and development costs (“R&D”), which principally include employee compensation costs, are expensed as incurred. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist primarily of highly liquid investments purchased with an original maturity of three months or less at the date of acquisition, such as bank deposits, money market funds, and interest bearing bank accounts with insignificant interest rate risk. The fair value of cash and cash equivalents approximates the carrying amount. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash EquivalentsWe are required by gaming regulations to maintain sufficient reserves in restricted cash accounts to be used for the purpose of funding payments to WAP jackpot winners. These restricted cash balances are based primarily on the jackpot meters displayed to slot players, or for previously won jackpots, and vary by jurisdiction. Under our Italian Lotto contract, we deposit wagers, net of prizes paid and retailer commissions retained by the retailer at point of sale, into bank accounts, the use of which is restricted based on the contract with our customer. Restricted cash is also maintained for interactive digital player deposits, collections on factored and serviced receivables not yet paid through to the third-party owner, and for customer funds received in relation to the provision of our commercial services. These amounts are restricted based on the contracts with our customers or local regulations. |
Allowance for Credit Losses | Allowance for Credit Losses We maintain an allowance for credit losses on receivables resulting from the expected failure or inability of our customers to make required payments. The allowance is regularly reviewed by considering factors such as the creditworthiness of our customers, historical experience, aging of receivables, and current market and economic conditions, as well as management’s expectations of future conditions when appropriate. The allowance is deducted from the amortized cost basis of the receivable to present the net amount expected to be collected. We estimate expected credit losses on receivables on a collective (pool) basis when similar risk characteristics exist. Trade and other receivables and customer financing receivables represent the initial pools which are segregated further by business segment, geography, internal risk rating, and aging. The risk of loss is assessed over the contractual life of the receivables and we adjust historical loss rates for current and future conditions based on qualitative considerations. The expected loss rate for each receivable pool is applied to the aggregate receivable balance to determine the allowance requirement. Receivables are written off against the allowance in the period they are determined to be uncollectible. We determine delinquency based on the contractual payment terms. An account may be considered delinquent if there are unpaid balances remaining on the account the day after the contractual due date. For amounts due from certain government customers in the Global Lottery business segment, we have not established an allowance as we have no expectation of loss based on a long history of no credit losses and the explicit guarantee of a sovereign entity. |
Inventories | Inventories Inventories are stated at the lower of cost (applying the first in, first out method) and net realizable value. Allowances are made for defective, obsolete, or excess inventory. |
Systems, Equipment and Other Assets Related to Contracts, Net and Property, Plant and Equipment, Net | Systems, Equipment and Other Assets Related to Contracts, Net and Property, Plant and Equipment, Net We have two categories of fixed assets: systems, equipment and other assets related to contracts (“Systems & Equipment”) and property, plant and equipment (“PPE”). Systems & Equipment are assets that primarily support our operating contracts, FMCs, and WAP systems (collectively, the “Contracts”) and are principally composed of lottery and gaming assets, including those that are accounted for as operating leases with our customers. PPE are assets we use internally, not associated with Contracts, primarily related to production and assembly, selling, general and administration, and R&D. Systems & Equipment and PPE are stated at cost, net of accumulated depreciation and accumulated impairment loss, if any. Costs incurred for Systems & Equipment and PPE not yet placed into service are classified as construction in progress and are not depreciated until placed in service. Depreciation is recognized on a straight-line basis over the estimated useful lives of the assets. Repair and maintenance costs are expensed as incurred, whereas major improvements that increase asset values and extend useful lives are capitalized. Systems & Equipment and PPE are tested for impairment whenever events or changes in circumstances indicate the carrying amount of those assets may not be recoverable. An impairment loss is recognized only if the carrying amount is not recoverable and exceeds its fair value. The carrying amount is not recoverable if it exceeds the sum of the undiscounted forecasted cash flows resulting from the use and eventual disposition of such asset. An impairment loss is measured as the amount by which the carrying amount exceeds its fair value. |
Intangible Assets | Intangible Assets Intangible assets, which include indefinite-lived and definite-lived intangible assets, are stated at cost, less accumulated amortization and accumulated impairment losses. Indefinite-lived intangible assets are composed of trademarks for which there is no foreseeable limit of the period over which they are expected to generate net cash inflows. Definite-lived intangible assets, which are primarily composed of customer relationships and computer software and game library, are capitalized and amortized on a straight-line basis over their estimated useful lives. Estimated useful lives are determined considering the period the assets are expected to contribute to future cash flows. Amortization of intangibles is included in cost of services, cost of product sales or selling, general and administrative expenses in the consolidated statement of operations depending on the use and nature of the asset. |
Capitalized Software Development Costs | Capitalized Software Development Costs Costs incurred in the development of our externally-sold software products are expensed as incurred, except certain software development costs eligible for capitalization. Software development costs incurred subsequent to establishing technological feasibility and through the general release of the software products are capitalized. Capitalized costs are amortized over the products’ estimated useful life to cost of product sales in the consolidated statements of operations. |
Capitalized Software Development Costs | Costs incurred during the application development phase of software for services provided to customers are capitalized as internal-use software and amortized over the useful life to cost of services in the consolidated statements of operations. Costs incurred during the application development of software for internal use, and not for use in services provided to customers, are capitalized and amortized over the useful life to selling, general and administrative expenses in the consolidated statements of operations. |
Upfront License Fees | Upfront License Fees We periodically make long-term investments in contracts with customers and obtain licenses to supply products and services to our customers. As consideration, we pay license fees, which are classified as other non-current assets in the consolidated balance sheets. We recognize the amortization of the license fees as a reduction of service revenue over the estimated economic life of the license term. This method reflects the pattern in which economic benefits are expected to be realized. The recoverability of each payment is subject to significant estimates about future revenues related to the contracts’ future cash flows. We evaluate these assets for impairment and update amortization rates on an agreement by agreement basis. The assets are reviewed for impairment whenever events or changes in circumstances indicate their carrying amount may not be recoverable. In periods in which payments are made to the customer, we classify the payment as a cash outflow from operating activities in the consolidated statements of cash flows. |
Goodwill | Goodwill The assets and liabilities of acquired businesses are recorded under the acquisition method of accounting at their estimated fair values at the date of acquisition. Goodwill represents costs in excess of fair values assigned to the underlying identifiable net assets of acquired businesses, and is stated at cost less accumulated impairment losses. |
WAP Jackpot Accounting | WAP Jackpot Accounting We incur costs to fund jackpots and accrue jackpot liabilities with every wager on devices connected to a WAP system. Jackpot liabilities are estimated based on the size of the jackpot, the number of WAP units in service, variations and volume of play, and interest rate movements. Jackpots are generally payable to winners immediately, in the case of instant wins, or in equal annual installments over 19 to 25 years. Winners may elect to receive a lump sum payment for the present value of the jackpot discounted at applicable interest rates in lieu of periodic annual installments. Jackpot liabilities are composed of payments due to previous winners, and amounts due to future winners of jackpots not yet won. Liabilities due to previous winners for periodic payments are carried at the accreted cost of a qualifying U.S. government or agency annuity investment for those in which purchases were made at the time of the jackpot win. All other periodic liabilities are discounted and accreted using the risk-free rate at the time of the jackpot win. |
Process for Disclosure and Recording of Liabilities Related to Legal Proceedings | Process for Disclosure and Recording of Liabilities Related to Legal Proceedings Many lawsuits and claims involve highly complex legal and related issues, including issues relating to causation, evidence, and alleged actual damages, all of which are otherwise subject to substantial uncertainties. Assessments of lawsuits and claims can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions. When making determinations about recording liabilities related to legal proceedings, the Company complies with the requirements of ASC 450, Contingencies , and related guidance, and records liabilities in those instances where it can reasonably estimate the amount of the loss and when the loss is probable. Where the reasonable estimate of the probable loss is a range, the Company records as an accrual in its financial statements the most likely estimate of the loss, or the low end of the range if there is no one best estimate. The Company either discloses the amount of a possible loss or range of loss in excess of established accruals if estimable, or states that such an estimate cannot be made. The Company discloses significant legal proceedings even where liability is not probable or the amount of the liability is not estimable, or both, if the Company believes there is at least a reasonable possibility that a loss may be incurred. All legal costs are expensed as incurred. Because legal proceedings are subject to inherent uncertainties, and unfavorable rulings or developments could occur, there can be no certainty that the Company may not ultimately incur charges in excess of presently recorded liabilities. Many of the matters described are at preliminary stages or seek an indeterminate amount of damages. It is not uncommon for claims to be resolved over many years. A future adverse ruling, settlement, unfavorable development, or increase in accruals for one or more of these matters could result in future charges that could have a material adverse effect on the Company’s results of operations or cash flows in the period in which they are recorded. Based on experience and developments, the Company reexamines its estimates of probable liabilities and associated expenses and receivables each period, and whether it is able to estimate a liability previously determined to be not estimable and/or not probable. Where appropriate, the Company makes additions to or |
Treasury Stock | Treasury Stock We account for treasury stock acquisitions using the cost method. We account for the retirement of treasury stock by deducting its par value from common stock and reflecting any excess of cost over par value as a deduction from additional paid-in capital in the consolidated balance sheets. |
Fair Value Measurements | Fair Value Measurements We account for certain financial assets and liabilities at fair value. Financial assets and liabilities are categorized, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the use of observable inputs and the lowest priority to the use of unobservable inputs. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. These levels are as follows: • Level 1 - inputs are based upon unadjusted quoted prices for identical instruments in active markets • Level 2 - inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the instruments |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative financial instruments for the management of foreign currency risks. We do not enter into derivatives for speculative purposes. Derivatives are recognized as either assets or liabilities in the consolidated balance sheet at fair value. All derivatives are recorded gross, except netting of foreign exchange contracts and counterparty netting of interest receivable and payable related to interest rate swaps, as applicable. The accounting for changes in the fair value of a derivative depends on the nature of the hedge and the hedge effectiveness. Derivative gains and losses are reported in the consolidated statements of cash flows consistent with the classification of the cash flows from the underlying hedged items. For derivative instruments designated as cash flow hedges, gains and losses are recorded in other comprehensive income (loss) and are subsequently reclassified when the hedged item affects earnings. At that time, the amount is reclassified from other comprehensive income (loss) to the same income statement line as the earnings effect of the hedged item. Derivative instruments not designated as hedges are recognized in the consolidated balance sheet at fair value with the changes in fair value recorded in foreign exchange loss (gain), net in the consolidated statements of operations. |
Leases | Leases We determine whether a contract is or contains a lease at inception. As a lessee, we recognize right-of-use (“ROU”) assets and lease liabilities on the lease commencement date based on the present value of lease payments over the lease term. ROU assets also include any upfront lease payments or initial direct costs and are adjusted for lease incentives received. We consider renewal and termination options, including whether they are reasonably certain to be exercised, in determining the lease term and establishing the ROU assets and lease liabilities. ROU assets and lease liabilities are calculated using our incremental borrowing rate, which is based on the lease currency and length of the lease, unless the implicit rate is determinable. Most of our lease contracts contain both lease and non-lease components. As a lessee, we combine lease and non-lease components into a single lease component for all classes of underlying assets except certain communication equipment. For certain communication equipment, we allocate the consideration between lease and non-lease components based on relative standalone price. Lease expense is recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred except for certain rent payments that depend on an index, which are included in lease payments using the index rate in effect as of the lease commencement date. Short-term leases, which are leases with an initial term of 12 months or less with no purchase options that are reasonably certain of exercise, are not recognized on the balance sheet. The rental payments are recognized as lease expense on a straight-line basis over the lease term. Certain of our long term lottery and commercial gaming service arrangements include leases for equipment installed at customer locations. As the lessor, we combine lease and non-lease components for all classes of underlying assets in arrangements that involve operating leases. The single combined component is accounted for under ASC 842, Leases , or ASC 606, Revenue from Contracts with Customers (“ASC 606”), depending on which component is the predominant component in the arrangement. If a component cannot be combined, the consideration is allocated between the lease component and the non-lease component based on relative standalone selling price. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the tax basis of assets and liabilities and their reported amounts using the enacted tax rates in effect for the year in which the differences are expected to reverse. Tax credits are generally recognized as reductions of income tax provisions in the year in which the credits arise. The measurement of deferred tax assets is reduced by a valuation allowance if, based upon available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The effect of a change in income tax rates is recognized as income or expense in the period that includes the enacted or substantively enacted date. Accounting for uncertainty in income taxes recognized in the consolidated financial statements is in accordance with accounting authoritative guidance, which prescribes a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more likely than not” to be sustained, the tax position is then assessed to determine the amount of the benefit to recognize in the consolidated financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50 percent likelihood of being realized upon ultimate settlement. We recognize interest and penalties related to unrecognized tax benefits in provision for income taxes in the consolidated statement of operations. Accrued interest and penalties are included within other non-current liabilities in the consolidated balance sheets. We use the period cost method for global intangible low-taxed income (“GILTI”) provisions and therefore have not recorded deferred taxes for basis differences expected to reverse in future periods. A provision for foreign withholding taxes has not been recorded on undistributed profits of the company’s subsidiaries that are determined to be indefinitely reinvested. If management intentions change in the future, there may be a significant impact on the provision for income taxes in the period the change occurs. |
Foreign Currency Translation and Foreign Currency Transactions | Foreign Currency Translation and Foreign Currency Transactions The financial statements of subsidiaries with functional currencies other than the U.S. dollar are translated into U.S. dollars, with the resulting translation adjustments recorded as a component of accumulated other comprehensive income (“AOCI”) within shareholders’ equity. Assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the balance sheet date, while income and expense items are translated using the average exchange rates during the period. Subsidiaries with monetary assets and liabilities denominated in a currency other than the functional currency of the subsidiary are subject to remeasurement, the impact of which is recorded in foreign exchange (gain) loss, net in the consolidated statement of operations. |
New Accounting Standards - Recently Adopted and Not Yet Adopted | New Accounting Standards - Recently Adopted There has not been any recently adopted accounting guidance for the year ended December 31, 2022 with a significant effect on the consolidated financial statements. New Accounting Standards - Not Yet Adopted In March 2022, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”). The amendments eliminate the troubled debt restructuring (“TDR”) recognition and measurement accounting model, and instead entities will evaluate the terms of a restructured financing agreement to determine whether it represents a new loan or a continuation of an existing loan. Although the TDR accounting model was eliminated, the financial difficulty criteria was retained to determine whether a restructuring should be disclosed under an expanded set of requirements about a creditor’s loan modification programs. In addition, the amendments will require entities to disclose current period gross write-offs by year of origination, also known as “vintage”. The TDR changes and vintage disclosure requirement would apply to the Company’s customer financing receivables. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, with early adoption permitted. We will adopt ASU 2022-02 upon the effective date and expect to apply all amendments prospectively. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). The amendments create an exception to the general recognition and measurement principal in ASC 805, Business Combinations to measure assets and liabilities acquired in a business combination at fair value. Instead, an acquirer in a business combination will be required to apply ASC 606 to recognize and measure contract assets and contract liabilities that result from contracts accounted for under ASC 606 on the acquisition date and will generally result in the acquirer recognizing amounts consistent with those recorded by the acquiree immediately before the acquisition date. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, with early adoption permitted. We will adopt ASU 2021-08 upon the effective date. We do not currently expect that any other recently issued accounting guidance will have a significant effect on the consolidated financial statements. |
Business Acquisitions and Div_2
Business Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The major classes of assets and liabilities to which the Company has allocated the purchase price based on information as of the acquisition date and available at December 31, 2022 were as follows: (€ millions) Notes July 1, 2022 Current assets 18 Intangible assets 14 59 Non-current assets 3 Total identifiable assets acquired 80 Current liabilities (10) Non-current liabilities (22) Total liabilities assumed (31) Net identifiable assets acquired 49 Goodwill 13 117 Total purchase price 166 |
Summary of Financial Information of Discontinued Operations and Assets Held for Sale | Summarized financial information for discontinued operations is shown below (there are no discontinued operations during 2022): For the year ended December 31, ($ in millions) 2021 2020 Total revenue 74 429 Operating income (1) 24 51 Income from discontinued operations before provision for (benefit from) income taxes 23 43 (Benefit from) provision for income taxes on discontinued operations (1) 7 Gain on sale of discontinued operations before provision for income taxes 396 — Provision for income taxes on sale of discontinued operations 5 — Gain on sale of discontinued operations, net of tax 391 — Income from discontinued operations 415 37 Less: Net loss attributable to non-controlling interests from discontinued operations (2) (5) Income from discontinued operations attributable to IGT PLC 417 41 (1) There was no depreciation and amortization in 2021. Includes depreciation and amortization of $95 million for the year ended 2020. The Company has continuing involvement with the businesses via a TSA. As part of the TSA, the Company provides various telecommunications and information technology for which the Company receives compensation. These services generally expire after one year. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables summarize revenue disaggregated by business segment and the source of the revenue for the years ended December 31, 2022, 2021, and 2020: For the year ended December 31, 2022 ($ in millions) Global Lottery Global Gaming PlayDigital Total Operating and facilities management contracts 2,181 — — 2,181 Gaming terminal services — 483 — 483 PlayDigital services — — 209 209 Systems, software, and other 255 232 — 487 Service revenue 2,436 714 209 3,359 Lottery products 157 — — 157 Gaming terminals — 501 — 501 Other — 208 1 209 Product sales 157 709 1 866 Total revenue 2,593 1,423 209 4,225 For the year ended December 31, 2021 ($ in millions) Global Lottery Global Gaming PlayDigital Total Operating and facilities management contracts 2,363 — — 2,363 Gaming terminal services — 424 — 424 PlayDigital services — — 163 163 Systems, software, and other 327 206 — 534 Service revenue 2,690 630 163 3,483 Lottery products 123 — — 123 Gaming terminals — 339 — 339 Other — 143 1 144 Product sales 123 482 1 606 Total revenue 2,812 1,112 165 4,089 For the year ended December 31, 2020 ($ in millions) Global Lottery Global Gaming PlayDigital Total Operating and facilities management contracts 1,744 — — 1,744 Gaming terminal services — 298 — 298 PlayDigital services — — 114 114 Systems, software, and other 299 186 — 484 Service revenue 2,043 483 114 2,640 Lottery products 121 — — 121 Gaming terminals — 205 — 205 Other — 148 1 149 Product sales 121 354 1 476 Total revenue 2,164 837 115 3,115 |
Contract with Customer, Asset and Liability | Information about contract assets and contract liabilities is as follows: ($ in millions) December 31, 2022 December 31, 2021 Balance Sheet Classification Contract assets: Current 69 49 Other current assets Non-current 81 69 Other non-current assets 150 118 Contract liabilities: Current (91) (104) Other current liabilities Non-current (49) (47) Other non-current liabilities (139) (151) |
Trade and Other Receivables, _2
Trade and Other Receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Trade and Other Receivables, Net | December 31, ($ in millions) 2022 2021 Trade and other receivables, gross 680 917 Allowance for credit losses (11) (15) Trade and other receivables, net 670 903 |
Schedule of Activity of Allowance for Credit Losses Related to Trade and Other Receivables | The following table presents the activity in the allowance for credit losses: December 31, ($ in millions) 2022 2021 2020 Balance at beginning of year (15) (16) (22) (Provisions) recoveries, net — (2) (6) Amounts written off as uncollectible 3 2 10 Other (1) — — 3 Balance at end of year (11) (15) (16) (1) Includes the effect of the adoption of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments (“ASC 326”) in 2020. |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | December 31, ($ in millions) 2022 2021 Raw materials 165 107 Work in progress 24 25 Finished goods 87 78 Inventories, gross 276 211 Obsolescence reserve (22) (28) Inventories, net 254 183 |
Schedule of Restructuring Reserve by Type of Cost | The following table presents the activity in the obsolescence reserve: December 31, ($ in millions) 2022 2021 2020 Balance at beginning of year (28) (43) (34) Provisions, net (2) (1) (34) Amounts written off 7 11 24 Other 1 4 1 Balance at end of year (22) (28) (43) The following table presents the activity in the restructuring liabilities for the above plans for the years ended December 31, 2022 and December 31, 2021: ($ in millions) Severance and Related Employee Costs Other Total Balance at December 31, 2020 23 1 24 2021 Italian workforce redundancies plan expense, net 11 — 11 Cash paid for all plans (17) — (17) Reversals of expense and other (5) (1) (6) Balance at December 31, 2021 12 1 13 2021 Italian workforce redundancies plan expense, net 7 — 7 Cash paid for all plans (4) (1) (4) Reversals of expense and other (2) — (2) Balance at December 31, 2022 14 — 14 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Schedule of Other Current Assets | December 31, ($ in millions) Notes 2022 2021 Customer financing receivables, net 143 170 Income taxes receivable 98 64 Contract assets 4 69 49 Prepaid expenses 44 54 Other tax receivables 28 17 Value-added tax receivable 25 28 Deferred costs 23 28 Other receivables 5 158 Other 32 25 467 593 |
Schedule of Other Non-Current Assets | December 31, ($ in millions) Notes 2022 2021 Upfront license fees, net: Italian Scratch & Win 545 680 Italian Lotto 266 380 New Jersey 57 66 Rhode Island 27 — Indiana 8 9 903 1,134 Contract assets 4 81 69 Customer financing receivables, net 76 92 Deferred income taxes 18 38 39 Finance lease right-of-use assets 11 23 29 Other 52 66 1,174 1,429 |
Capitalized Contract Cost | The upfront license fees are being amortized on a straight-line basis as follows: Upfront License Fee License Term Amortization Start Date Rhode Island 20 years, 6 months January 2023 Italian Scratch & Win 9 years October 2019 Italian Lotto 9 years December 2016 New Jersey 15 years, 9 months October 2013 Indiana 15 years July 2013 |
Schedule of Customer Financing Receivables, Net and Activity in the Allowance for Credit Losses | Customer financing receivables are recorded at amortized cost, net of any allowance for credit losses, and are classified in the consolidated balance sheets as follows: December 31, 2022 ($ in millions) Current Assets Non-Current Assets Total Customer financing receivables, gross 184 87 271 Allowance for credit losses (42) (11) (52) Customer financing receivables, net 143 76 219 December 31, 2021 ($ in millions) Current Assets Non-Current Assets Total Customer financing receivables, gross 220 111 332 Allowance for credit losses (51) (20) (71) Customer financing receivables, net 170 92 261 The following table presents the activity in the allowance for credit losses: December 31, ($ in millions) 2022 2021 2020 Balance at beginning of year (71) (50) (32) Provisions, net 8 (29) (37) Amounts written off as uncollectible 10 8 24 Other (1) — — (5) Balance at end of year (52) (71) (50) (1) Includes the effect of the adoption of ASC 326 in 2020. |
Financing Receivable Credit Quality Indicators | The customer financing receivables at amortized cost by year of origination and the geography credit quality indicator at December 31, 2022 are as follows: Year of Origination ($ in millions) 2022 2021 2020 2019 Prior Total North America 39 10 12 5 — 66 EMEA & APAC 35 18 7 9 2 72 LAC 28 16 6 61 22 133 102 44 26 75 24 271 The past due balance, which represents installments that are one day or more past their contractual due date, of customer financing receivables at amortized cost and the geography credit quality indicator at December 31, 2022 is as follows: ($ in millions) North America LAC EMEA & APAC Total Past due 2 45 15 62 Short-term portion not yet due 38 54 30 123 Long-term portion not yet due 26 33 27 87 66 133 72 271 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy for Financial Assets and Liabilities not Measured at Fair Value | The carrying amounts and fair value hierarchy classification of our significant financial assets and liabilities not carried at fair value as of December 31, 2022 and 2021 are as follows: December 31, 2022 ($ in millions) Carrying Level 1 Level 2 Level 3 Total Fair Value Assets: Customer financing receivables, net 219 — — 211 211 Equity investments 9 — — 9 9 Liabilities: Jackpot liabilities 170 — — 135 135 Debt (1) 5,750 — 5,576 — 5,576 December 31, 2021 ($ in millions) Carrying Level 1 Level 2 Level 3 Total Fair Value Assets: Customer financing receivables, net 261 — — 245 245 Equity investments 11 — — 11 11 Liabilities: Jackpot liabilities 196 — — 184 184 Debt (1) 6,477 — 6,792 — 6,792 (1) Excludes short-term borrowings and swap adjustments. |
Systems, Equipment and Other _2
Systems, Equipment and Other Assets Related to Contracts, net and Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |
Schedule of Systems & Equipment and PPE, net | Systems & Equipment and PPE, net consist of the following: Systems & Equipment, net PPE, net December 31, December 31, ($ in millions) 2022 2021 2022 2021 Land — — 1 1 Buildings — — 60 58 Terminals and systems 2,720 2,479 — — Furniture and equipment 127 138 315 255 Construction in progress 97 75 21 10 2,944 2,691 398 324 Accumulated depreciation (2,045) (1,754) (281) (205) 899 937 118 119 |
Schedule of Useful Lives of Assets | The estimated useful lives of assets are as follows: Asset Estimated life in years Systems & Equipment Terminals and systems - lottery Generally do not exceed 10 years Terminals and systems - gaming 3-5 Furniture and equipment Generally do not exceed 10 years PPE Buildings 40 Furniture and equipment 5-10 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee | The classification of our operating and finance leases in the consolidated balance sheets is as follows: December 31, ($ in millions) Balance Sheet Classification 2022 2021 Assets: Operating ROU asset Operating lease right-of-use assets 254 283 Finance ROU asset, net (1) Other non-current assets 23 29 Total lease assets 277 312 Liabilities: Operating lease liability, current Other current liabilities 37 39 Finance lease liability, current Other current liabilities 8 10 Operating lease liability, non-current Operating lease liabilities 239 269 Finance lease liability, non-current Other non-current liabilities 22 27 Total lease liabilities 307 344 (1) Finance ROU assets are recorded net of accumulated amortization of $15 million and $24 million at December 31, 2022 and 2021, respectively. |
Lease, Cost | Weighted-average lease terms and discount rates are as follows: December 31, 2022 2021 2020 Weighted-Average Remaining Lease Term (in years) Operating leases 7.72 8.47 8.32 Finance leases 4.31 4.73 5.13 Weighted-Average Discount Rate Operating leases 6.88 % 6.71 % 7.01 % Finance leases 5.12 % 4.98 % 5.16 % Components of lease expense are as follows: For the year ended December 31, ($ in millions) 2022 2021 2020 Operating lease costs 62 71 72 Finance lease costs (1) 11 13 11 Short-term lease costs 13 1 1 Variable lease costs (2) 23 23 23 (1) Includes amortization of ROU assets of $10 million, $11 million, and $9 million for the years ended December 31, 2022, 2021, and 2020, respectively and interest on lease liabilities of $2 million, $2 million, and $2 million, f or the years ended December 31, 2022, 2021, and 2020, respectively. (2) Includes immaterial amounts related to sublease income. |
Lessee, Operating Lease, Liability, Maturity | Maturities of operating and finance lease liabilities at December 31, 2022 are as follows ($ in millions): Year Operating Leases Finance Leases Total (1) 2023 55 10 64 2024 51 7 59 2025 47 6 54 2026 41 6 47 2027 36 3 39 Thereafter 133 1 135 Total lease payments 364 34 398 Less: Imputed interest (87) (3) (91) Present value of lease liabilities 277 30 307 |
Finance Lease, Liability, Maturity | Maturities of operating and finance lease liabilities at December 31, 2022 are as follows ($ in millions): Year Operating Leases Finance Leases Total (1) 2023 55 10 64 2024 51 7 59 2025 47 6 54 2026 41 6 47 2027 36 3 39 Thereafter 133 1 135 Total lease payments 364 34 398 Less: Imputed interest (87) (3) (91) Present value of lease liabilities 277 30 307 |
Cash Flow and Non-Cash Activity, Leases | Cash flow information and non-cash activity related to leases is as follows: For the year ended December 31, ($ in millions) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating and finance leases 60 67 68 Finance cash flows from finance leases 10 13 10 Non-cash activity: ROU assets obtained in exchange for lease obligations (net of early terminations) Operating leases 19 5 34 Finance leases 4 7 6 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table presents the activity in the obsolescence reserve: December 31, ($ in millions) 2022 2021 2020 Balance at beginning of year (28) (43) (34) Provisions, net (2) (1) (34) Amounts written off 7 11 24 Other 1 4 1 Balance at end of year (22) (28) (43) The following table presents the activity in the restructuring liabilities for the above plans for the years ended December 31, 2022 and December 31, 2021: ($ in millions) Severance and Related Employee Costs Other Total Balance at December 31, 2020 23 1 24 2021 Italian workforce redundancies plan expense, net 11 — 11 Cash paid for all plans (17) — (17) Reversals of expense and other (5) (1) (6) Balance at December 31, 2021 12 1 13 2021 Italian workforce redundancies plan expense, net 7 — 7 Cash paid for all plans (4) (1) (4) Reversals of expense and other (2) — (2) Balance at December 31, 2022 14 — 14 |
Schedule of Restructuring Expense by Segment and Type of Cost | The following table summarizes consolidated restructuring expense by segment and type of cost: For the year ended December 31, 2022 ($ in millions) Severance and Related Employee Costs Other Total Global Lottery 6 — 6 Global Gaming (1) — (1) PlayDigital — — — Corporate and Other 1 — 1 Total 6 — 6 For the year ended December 31, 2021 ($ in millions) Severance and Related Employee Costs Other Total Global Lottery 8 — 8 Global Gaming (3) (1) (4) PlayDigital (1) — (1) Corporate and Other 2 — 2 Total 6 (1) 6 For the year ended December 31, 2020 ($ in millions) Severance and Related Employee Costs Other Total Global Lottery 5 — 5 Global Gaming 28 4 32 PlayDigital 2 — 2 Corporate and Other 6 — 6 Total 41 4 45 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill, net | |
Schedule of Changes in Carrying Amount of Goodwill, net | Changes in the carrying amount of goodwill consist of the following: ($ in millions) Global Lottery Global Gaming PlayDigital Total Balance at December 31, 2020 2,997 1,716 — 4,713 Segment realignment (1) — (265) 265 — Foreign currency translation (49) (5) (3) (58) Balance at December 31, 2021 2,948 1,446 261 4,656 Acquisitions — — 121 121 Divestitures (250) — — (250) Foreign currency translation (36) (2) (6) (44) Balance at December 31, 2022 2,662 1,444 376 4,482 (1) From July 1, 2020 to August 31, 2021, we operated under only two business segments: Global Lottery and Global Gaming. |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Intangible Assets | Intangible assets at December 31, 2022 and 2021 are summarized as follows: December 31, 2022 December 31, 2021 ($ in millions) Estimated Life (Years) Weighted- Average Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Amortized: Customer relationships 2-20 15.5 2,303 1,464 838 2,298 1,349 949 Computer software and game library 3-14 6.3 887 809 78 918 809 109 Trademarks 1-20 14.2 184 119 65 185 106 80 Developed technologies 2-15 6.1 283 222 61 233 216 17 Licenses 3-23 3.7 133 55 78 65 58 6 Other 2-17 7.9 40 31 9 35 28 7 3,830 2,700 1,130 3,734 2,566 1,168 Unamortized: Trademarks 245 245 245 — 245 4,075 2,700 1,375 3,979 2,566 1,413 |
Schedule of Intangible Assets, not Subject to Amortization | Intangible assets at December 31, 2022 and 2021 are summarized as follows: December 31, 2022 December 31, 2021 ($ in millions) Estimated Life (Years) Weighted- Average Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Amortized: Customer relationships 2-20 15.5 2,303 1,464 838 2,298 1,349 949 Computer software and game library 3-14 6.3 887 809 78 918 809 109 Trademarks 1-20 14.2 184 119 65 185 106 80 Developed technologies 2-15 6.1 283 222 61 233 216 17 Licenses 3-23 3.7 133 55 78 65 58 6 Other 2-17 7.9 40 31 9 35 28 7 3,830 2,700 1,130 3,734 2,566 1,168 Unamortized: Trademarks 245 245 245 — 245 4,075 2,700 1,375 3,979 2,566 1,413 |
Schedule of Expected Amortization Expense on Intangible Assets | Amortization expense on intangible assets for the next five years is expected to be as follows ($ in millions): Year Amount 2023 199 2024 182 2025 158 2026 119 2027 112 769 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Reconciliation of Principal Balances of Debt Obligations to the Balance Sheet | The Company’s long-term debt obligations consist of the following: December 31, 2022 ($ in millions) Principal Debt issuance Total 3.500% Senior Secured Euro Notes due July 2024 320 (1) 319 6.500% Senior Secured U.S. Dollar Notes due February 2025 700 (3) 697 4.125% Senior Secured U.S. Dollar Notes due April 2026 750 (5) 745 3.500% Senior Secured Euro Notes due June 2026 800 (4) 796 6.250% Senior Secured U.S. Dollar Notes due January 2027 750 (4) 746 2.375% Senior Secured Euro Notes due April 2028 533 (3) 530 5.250% Senior Secured U.S. Dollar Notes due January 2029 750 (5) 745 Senior Secured Notes 4,603 (26) 4,578 Euro Term Loan Facilities due January 2027 1,067 (9) 1,058 U.S. Dollar Revolving Credit Facility A due July 2027 65 (10) 55 Long-term debt, less current portion 5,735 (45) 5,690 5.350% Senior Secured U.S. Dollar Notes due October 2023 61 — 61 Current portion of long-term debt 61 — 61 Total debt 5,795 (45) 5,750 December 31, 2021 ($ in millions) Principal Debt issuance Total 5.350% Senior Secured U.S. Dollar Notes due October 2023 61 — 61 3.500% Senior Secured Euro Notes due July 2024 566 (3) 564 6.500% Senior Secured U.S. Dollar Notes due February 2025 1,100 (7) 1,093 4.125% Senior Secured U.S. Dollar Notes due April 2026 750 (6) 744 3.500% Senior Secured Euro Notes due June 2026 849 (5) 844 6.250% Senior Secured U.S. Dollar Notes due January 2027 750 (5) 745 2.375% Senior Secured Euro Notes due April 2028 566 (4) 562 5.250% Senior Secured U.S. Dollar Notes due January 2029 750 (6) 744 Senior Secured Notes 5,393 (36) 5,357 Euro Term Loan Facilities due January 2027 1,133 (12) 1,121 Long-term debt, less current portion 6,525 (48) 6,477 Short-term borrowings 52 — 52 Total debt 6,577 (48) 6,529 At December 31, 2022 and December 31, 2021, $9 million and $17 million, respectively, of debt issuance costs, net for the Revolving Credit Facilities with no outstanding borrowings, are recorded as other non-current assets in the consolidated balance sheets. |
Summary of Payments due under Significant Contractual Commitments | The principal amount of long-term debt maturing over the next five years and thereafter as of December 31, 2022 is as follows ($ in millions): Year U.S. Dollar Denominated Euro Denominated Total 2023 61 — 61 2024 — 533 533 2025 700 213 913 2026 750 1,013 1,763 2027 815 427 1,242 2028 and thereafter 750 533 1,283 Total principal payments 3,076 2,720 5,795 Due Date Amount January 25, 2024 200 January 25, 2025 200 January 25, 2026 200 January 25, 2027 400 |
Schedule of Senior Secured Notes | The key terms of our senior secured notes (the “Notes”), which were rated Ba2 and BB+ by Moody’s Investor Service (“Moody’s”) and Standard & Poor’s Ratings Services (“S&P”), respectively, at December 31, 2022, are as follows: Description Principal Effective Interest Rate Issuer Guarantors Collateral Redemption Interest payments 5.350% Senior Secured U.S. Dollar Notes due October 2023 $61 5.47% International Game Technology ** †† + Semi-annually in arrears 3.500% Senior Secured Euro Notes due July 2024 €300 3.68% Parent * † ++ Semi-annually in arrears 6.500% Senior Secured U.S. Dollar Notes due February 2025 $700 6.71% Parent * † ++ Semi-annually in arrears 4.125% Senior Secured U.S. Dollar Notes due April 2026 $750 4.34% Parent * † +++ Semi-annually in arrears 3.500% Senior Secured Euro Notes due June 2026 €750 3.65% Parent * † +++ Semi-annually in arrears 6.250% Senior Secured U.S. Dollar Notes due January 2027 $750 6.41% Parent * † ++ Semi-annually in arrears 2.375% Senior Secured Euro Notes due April 2028 €500 2.50% Parent * † +++ Semi-annually in arrears 5.250% Senior Secured U.S. Dollar Notes due January 2029 $750 5.39% Parent * † +++ Semi-annually in arrears * Certain subsidiaries of the Parent. ** The Parent and certain subsidiaries of the Parent. † Ownership interests in certain subsidiaries of the Parent, certain intercompany loans with principal balances in excess of $10 million and certain accounts receivable. †† Certain intercompany loans with principal balances in excess of $10 million and certain accounts receivable. + International Game Technology may redeem in whole or in part at any time prior to maturity at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. International Game Technology may also redeem in whole or in part at 100% of the principal amount together with accrued and unpaid interest in connection with certain gaming regulatory events. Upon the occurrence of certain events, International Game Technology will be required to offer to repurchase all of the applicable Notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. ++ The Parent may redeem in whole or in part at any time prior to the date which is six months prior to maturity at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. After such date, the Parent may redeem in whole or in part at 100% of the principal amount together with accrued and unpaid interest. The Parent may also redeem in whole but not in part at 100% of the principal amount together with accrued and unpaid interest in connection with certain tax events. Upon the occurrence of certain events, the Parent will be required to offer to repurchase all of the applicable Notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. +++ The Parent may redeem in whole or in part at any time prior to the first date set forth in the redemption price schedule at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. After such date, the Parent may redeem in whole or in part at a redemption price set forth in the redemption price schedule in the indenture governing the applicable Notes, together with accrued and unpaid interest. The Parent may also redeem in whole but not in part at 100% of the principal amount together with accrued and unpaid interest in connection with certain tax events. Upon the occurrence of certain events, the Parent will be required to offer to repurchase all of the applicable Notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. |
Schedule of Revolving Credit Facilities | The Parent and certain of its subsidiaries are party to an Amended and Restated Senior Facilities Agreement dated July 27, 2022 (the “RCF Agreement”), which provides for the following senior secured multi-currency revolving credit facilities (the “Revolving Credit Facilities”) maturing on July 31, 2027: Facility (1) Maximum Amount Revolving Credit Facility A $820 Revolving Credit Facility B €1,000 (1) The Parent, IGT Global Solutions Corporation, IGT Lottery Holdings B.V., IGT Lottery S.p.A, and International Game Technology are all borrowers under the Revolving Credit Facilities. |
Summary of Letters of Credit Outstanding and Weighted Average Annual Cost of Letters of Credit | The following table summarizes the letters of credit outstanding at December 31, 2022 and 2021 and the weighted-average annual cost of such letters of credit: ($ in millions) Letters of Credit Outstanding (1) Weighted-Average December 31, 2022 118 1.26 % December 31, 2021 335 1.08 % (1) Represents letters of credit outstanding not under the Revolving Credit Facilities. |
Schedule of Interest Expense | For the year ended December 31, ($ in millions) 2022 2021 2020 Senior Secured Notes 249 292 344 Term Loan Facilities 24 30 37 Revolving Credit Facilities 21 29 31 Other 8 4 1 Interest expense 302 354 413 Interest income (13) (13) (15) Interest expense, net 289 341 398 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | December 31, ($ in millions) Notes 2022 2021 Employee compensation 173 171 Current financial liabilities 145 61 Contract liabilities 4 91 104 Accrued interest payable 85 100 Accrued expenses 75 75 Taxes other than income taxes 68 72 Jackpot liabilities 19 57 66 Royalties payable 38 14 Operating lease liabilities 11 37 39 Income taxes payable 32 104 Other 36 21 837 828 |
Schedule of Other Non-Current Liabilities | December 31, ($ in millions) Notes 2022 2021 Jackpot liabilities 19 114 130 Royalties payable 61 13 Contract liabilities 4 49 47 Reserves for uncertain tax positions 52 47 Finance lease liabilities 11 22 27 Other 75 59 372 323 |
Other Non-Operating Expense, _2
Other Non-Operating Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | ($ in millions) Notes For the year ended December 31, 2022 2021 2020 Gain on sale of business 3 (278) — — DDI / Benson Matter provision 19 270 — — Loss on extinguishment of debt 15 13 92 28 Other expense, net 2 6 5 Total other non-operating expense, net 7 98 33 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) before the Provision for Income Taxes by Jurisdiction | The components of income (loss) from continuing operations before provision for income taxes, determined by tax jurisdiction, are as follows: For the year ended December 31, ($ in millions) 2022 2021 2020 United Kingdom 40 40 (355) United States (179) (20) (776) Italy 612 438 229 Other 116 70 55 589 529 (848) |
Provision (Benefit) for Income Taxes | The provision for income taxes consists of: For the year ended December 31, ($ in millions) 2022 2021 2020 Current: United Kingdom 3 — (1) United States 75 41 10 Italy 116 155 66 Other 57 40 31 252 236 106 Deferred: United States (66) 76 (62) Italy — (22) (1) Other (11) (16) (16) (77) 38 (78) 175 274 28 |
Reconciliation of the Provision for Income Taxes, With the Amount Computed by Applying United Kingdom Statutory Main Corporation Tax Rates | A reconciliation of the provision for income taxes, from the amount computed by applying the U.K. statutory main corporation tax rates enacted in each of the Parent’s calendar year reporting periods to income (loss) from continuing operations before provision for income taxes is as follows: For the year ended December 31, ($ in millions) 2022 2021 2020 Income (loss) from continuing operations before provision for income taxes 589 529 (848) United Kingdom statutory tax rate 19.0 % 19.0 % 19.0 % Statutory tax expense (benefit) 112 100 (161) Change in valuation allowances 22 125 128 Italy regional tax (“IRAP”) and state taxes 33 41 9 Non-deductible expenses 17 25 2 Base erosion and anti-abuse (“BEAT”) tax — 17 13 Foreign tax and statutory rate differential (1) 42 17 (14) Foreign tax expense, net of U.S. federal benefit 18 11 10 Provision to return adjustment (9) 6 — GILTI tax 9 5 3 Non-deductible goodwill impairment — — 56 Non-taxable gain on sale of business (79) — — Non-taxable foreign exchange loss (gain) 2 (11) — Italian patent box tax benefit — (27) — Tax law changes 6 (38) (20) Other 2 2 2 175 274 28 Effective tax rate 29.7 % 51.8 % (3.3) % (1) Includes the effects of foreign subsidiaries’ earnings taxed at rates other than the U.K. statutory rate |
Components of Deferred Tax Assets and Liabilities, and Net Deferred Income Taxes Recorded in the Consolidated Balance Sheet | The components of deferred tax assets and liabilities are as follows: December 31, ($ in millions) 2022 2021 Deferred tax assets: Net operating losses 238 286 Section 163(j) interest limitation 200 190 Italian goodwill tax step-up 109 119 Provisions not currently deductible for tax purposes 150 85 Lease liabilities 63 66 Jackpot timing differences 30 30 Depreciation and amortization 63 29 Inventory reserves 5 10 Other 73 63 Gross deferred tax assets 930 878 Valuation allowance (430) (412) Deferred tax assets, net of valuation allowance 500 466 Deferred tax liabilities: Acquired intangible assets 446 462 Depreciation and amortization 156 163 Italian goodwill equity reserve liability 99 105 Lease right-of-use assets 57 60 Other 8 6 Total deferred tax liabilities 767 795 Net deferred income tax liability (267) (329) Our net deferred income taxes are recorded in the consolidated balance sheets as follows: December 31, ($ in millions) 2022 2021 Deferred income taxes - non-current asset 38 39 Deferred income taxes - non-current liability (305) (368) (267) (329) |
Reconciliation of the Beginning and Ending Amount of Valuation Allowance | A reconciliation of the valuation allowance is as follows: December 31, ($ in millions) 2022 2021 2020 Balance at beginning of year 412 284 156 Net charges to expense 22 86 120 Tax rate change — 39 8 Provision to return adjustment (3) 3 — Balance at end of year 430 412 284 |
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the unrecognized tax benefits is as follows: December 31, ($ in millions) 2022 2021 2020 Balance at beginning of year 27 27 29 Additions to tax positions - current year 1 1 — Reductions to tax positions - prior years — (1) (2) Lapses in statutes of limitations — — (1) Balance at end of year 27 27 27 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Jackpot Liabilities Recorded as Current and Non-current Liabilities | Jackpot liabilities are recorded as current and non-current liabilities as follows: ($ in millions) December 31, 2022 Current liabilities 57 Non-current liabilities 114 170 |
Schedule of Future Jackpot Payments | Future jackpot liabilities as of December 31, 2022 are due as follows: ($ in millions) Previous Winners Future Winners Total 2023 22 35 57 2024 18 5 23 2025 15 1 16 2026 13 1 14 2027 11 1 12 Thereafter 66 11 77 Future jackpot payments due 146 52 198 Unamortized discounts (27) Total jackpot liabilities 170 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Shares of Common Stock Outstanding | Ordinary shares outstanding were as follows: December 31, 2022 2021 2020 Balance at beginning of year 203,688,118 204,856,564 204,435,333 Shares issued under restricted stock plans 1 702,273 331,554 421,231 Shares issued upon exercise of stock options 61,714 — — Repurchases of common stock (5,373,196) (1,500,000) — Balance at end of year 199,078,909 203,688,118 204,856,564 (1) In January 2023, the Parent issued 605,026 shares related to RSUs that vested in December 2022. Refer to Note 23 - Stock-Based Compensation for further information. |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following table details the changes in AOCI: Unrealized Gain (Loss) on: AOCI ($ in millions) Foreign Hedges Other Total Attributable Attributable to IGT PLC Balance at December 31, 2019 231 (8) 4 227 36 263 Change during period 128 (1) — 127 (59) 68 Reclassified to operations (1) (1) — — (1) — (1) Other comprehensive income (loss) 128 (1) — 127 (59) 67 Balance at December 31, 2020 358 (9) 4 353 (24) 330 Change during period 9 3 (1) 11 51 62 Reclassified to operations (1) 19 1 — 20 1 21 Tax effect — (1) — — — — Other comprehensive income (loss) 28 3 (1) 30 52 82 Balance at December 31, 2021 387 (6) 3 384 28 412 Change during period 55 2 1 57 27 84 Reclassified to operations (1) 36 (3) — 34 — 34 Other comprehensive income (loss) 90 (1) 1 91 27 117 Balance at December 31, 2022 477 (7) 4 474 55 529 (1) Foreign currency translation of approximately $19 million was reclassified into gain on sale of discontinued operations, net of tax on the consolidated statements of operations for the year ended December 31, 2021. Other foreign currency translation adjustments were reclassified into other non-operating expense, net on the consolidated statements of operations for subsidiaries sold for the year ended December 31, 2022 and foreign exchange loss (gain), net for subsidiaries liquidated for the years ended December 31, 2022 and 2020. Unrealized gain (loss) on hedges were reclassified into service revenue on the consolidated statements of operations for the years ended December 31, 2022 and 2021. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of VIE's Assets an Liabilities | We hold ownership interests in the following variable interest entities (“VIEs”): Name of subsidiary % Ownership held by the Company Lottoitalia S.r.l. (“Lottoitalia”) 61.50 % Lotterie Nazionali S.r.l. (“LN”) 64.00 % Northstar New Jersey Lottery Group, LLC (“Northstar NJ”) (1) 76.64 % (1) Northstar New Jersey Holding Company LLC, of which we are a 71.12% shareholder, holds the 76.64% ownership in Northstar NJ. The carrying amounts and classification of these VIEs’ assets and liabilities in our consolidated balance sheets at December 31, 2022 and 2021 are as follows: December 31, ($ in millions) 2022 2021 Current assets 941 1,124 Non-current assets 936 1,217 Total assets 1,877 2,341 Total liabilities 521 615 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Segment information is as follows: For the year ended December 31, 2022 ($ in millions) Global Lottery Global Gaming PlayDigital Business Segments Total Corporate and Other Total IGT PLC Service revenue 2,436 714 209 3,359 — 3,359 Product sales 157 709 1 866 — 866 Total revenue 2,593 1,423 209 4,225 — 4,225 Operating income (loss) 909 242 50 1,201 (279) 922 Depreciation and amortization 196 119 17 333 160 492 Expenditures for long-lived assets (141) (140) (6) (287) (6) (293) For the year ended December 31, 2021 ($ in millions) Global Lottery Global Gaming PlayDigital Business Segments Total Corporate and Other Total IGT PLC Service revenue 2,690 630 163 3,483 — 3,483 Product sales 123 482 1 606 — 606 Total revenue 2,812 1,112 165 4,089 — 4,089 Operating income (loss) 1,088 43 33 1,164 (262) 902 Depreciation and amortization 225 126 15 366 160 526 Expenditures for long-lived assets (123) (67) (13) (203) (6) (208) For the year ended December 31, 2020 ($ in millions) Global Lottery Global Gaming PlayDigital Business Segments Total Corporate and Other Total IGT PLC Service revenue 2,043 483 114 2,640 — 2,640 Product sales 121 354 1 476 — 476 Total revenue 2,164 837 115 3,115 — 3,115 Operating income (loss) 642 (212) 6 436 (544) (107) Depreciation and amortization 231 146 15 392 175 566 Expenditures for long-lived assets (149) (64) (11) (224) (2) (226) |
Schedule of Revenue from External Customers Based on Geographical Location | Revenue from external customers, which is based on the geographical location of our customers, is as follows: For the year ended December 31, ($ in millions) 2022 2021 2020 United States 2,355 2,126 1,666 Italy 1,062 1,307 896 United Kingdom 67 72 64 Rest of Europe 254 217 209 All other 488 368 280 Total 4,225 4,089 3,115 |
Schedule of Long-Lived Assets Based on Geographical Location | Long-lived assets, which are comprised of Systems & Equipment and PPE, are based on the geographical location of the assets as follows: December 31, ($ in millions) 2022 2021 United States 775 766 Italy 79 125 United Kingdom 6 9 Rest of Europe 92 93 All other 63 63 Total 1,016 1,056 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity and Related Information | A summary of our stock option activity and related information is as follows: Weighted-Average Stock Exercise Price Per Share ($) Remaining Contractual Term (in years) Aggregate Intrinsic Value ($ in millions) Outstanding at January 1, 2022 422,500 17.51 Granted — — Forfeited — — Exercised (250,000) 15.53 Outstanding at December 31, 2022 172,500 20.37 5.36 At December 31, 2022: Vested and expected to vest 172,500 20.37 5.36 — Exercisable — — — — |
Schedule of Key Inputs and Assumptions in Stock Option Valuation Models | The weighted-average grant date fair value of stock options granted during 2021 was $9.82 per share. 2021 Valuation model Monte Carlo Exercise price ($) 20.37 Expected option term (in years) 2.00 Expected volatility of the Company’s stock (%) 60.00 Risk-free interest rate (%) 0.80 Dividend yield (%) — |
Summary of Stock Award Activity and Related Information | A summary of our stock award activity and related information is as follows: PSUs Weighted- Average Grant Date Fair Value ($) RSUs Weighted- Average Grant Date Fair Value ($) Nonvested at January 1, 2022 5,300,825 21.50 1,059,472 10.05 Granted 1,714,667 25.37 95,357 20.46 Vested — — (1,034,846) 10.16 Forfeited (1,734,548) 12.08 (29,302) 9.08 Nonvested at December 31, 2022 5,280,944 25.85 90,681 20.07 At December 31, 2022: Unrecognized cost for nonvested awards ($ in millions) 64 — Weighted-average future recognition period (in years) 2.27 0.35 |
Schedule of Fair Value of Stock Awards Granted Including Weighted Average Grant Date Fair Value | Details of the grants are as follows: 2022 2021 2020 PSUs granted during the year 1,714,667 3,740,075 — Weighted-average grant date fair value ($) 25.37 26.10 — RSUs granted during the year 95,357 79,844 2,375,141 Weighted-average grant date fair value ($) 20.46 22.29 9.04 |
Schedule of Stock-Based Compensation Expense | Total compensation cost (recovery) for our stock-based compensation plans is recorded based on the employees’ respective functions as detailed below. For the year ended December 31, ($ in millions) 2022 2021 2020 Cost of services 2 2 (1) Selling, general and administrative 37 30 (4) Research and development 2 3 (1) Stock-based compensation expense before income taxes 41 35 (7) Income tax benefit (provision) 10 8 (2) Total stock-based compensation, net of tax 31 27 (5) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share of Common Stock | The following table presents the computation of basic and diluted income (loss) per share of common stock: For the year ended December 31, ($ in millions and shares in thousands, except per share amounts) 2022 2021 2020 Numerator: Net income (loss) from continuing operations attributable to IGT PLC 275 65 (939) Net income from discontinued operations attributable to IGT PLC — 417 41 Net (loss) income attributable to IGT PLC 275 482 (898) Denominator: Weighted-average shares - basic 201,825 204,954 204,725 Incremental shares under stock based compensation plans 1,589 1,841 — Weighted-average shares - diluted 203,414 206,795 204,725 Net income (loss) from continuing operations attributable to IGT PLC per common share - basic 1.36 0.32 (4.59) Net income (loss) from continuing operations attributable to IGT PLC per common share - diluted 1.35 0.31 (4.59) Net income from discontinued operations attributable to IGT PLC per common share - basic — 2.03 0.20 Net income from discontinued operations attributable to IGT PLC per common share - diluted — 2.02 0.20 Net income (loss) attributable to IGT PLC per common share - basic 1.36 2.35 (4.39) Net income (loss) attributable to IGT PLC per common share - diluted 1.35 2.33 (4.39) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Transactions with Related Parties | Related party amounts due to or from the De Agostini Group are as follows: December 31, ($ in millions) 2022 2021 Trade receivables 2 — Tax-related receivables — 4 Trade payables 1 1 Tax-related payables 3 3 |
Description of Business (Detail
Description of Business (Details) - segment | 6 Months Ended | 14 Months Ended | 16 Months Ended |
Dec. 31, 2021 | Aug. 31, 2021 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Number of business segments | 3 | 2 | |
Segment Reorganization | |||
Segment Reporting Information [Line Items] | |||
Number of business segments | 3 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 4 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 reporting_unit | Dec. 31, 2022 USD ($) fixed_asset | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Accounting Policies [Abstract] | ||||
Advertising expense | $ | $ 28 | $ 33 | $ 25 | |
Number of principle types of fixed assets | fixed_asset | 2 | |||
Number of reporting units | reporting_unit | 3 | |||
Period of annual installments for jackpot liabilities, low end of range | 19 years | |||
Period of annual installments for jackpot liabilities, high end of range | 25 years | |||
Historical lump sum payout election rate (as a percent) | 90% |
Business Acquisitions and Div_3
Business Acquisitions and Divestitures - Business Acquisitions (Details) - iSoftBet € in Millions | Jul. 01, 2022 EUR (€) |
Business Acquisition [Line Items] | |
Percentage of equity interest acquired | 100% |
Cash consideration in business acquisition | € 162 |
Escrow deposit | 20 |
Business combination, contingent consideration | € 4 |
Business Acquisitions and Div_4
Business Acquisitions and Divestitures - Schedule of Recognized Identifies Assets Acquired and Liabilities Assumed (Details) € in Millions, $ in Millions | Dec. 31, 2022 USD ($) | Jul. 01, 2022 USD ($) | Jul. 01, 2022 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ | $ 4,482 | $ 4,656 | $ 4,713 | ||
iSoftBet | |||||
Business Acquisition [Line Items] | |||||
Current assets | € 18 | ||||
Intangible assets | $ 58 | 59 | |||
Non-current assets | 3 | ||||
Total identifiable assets acquired | 80 | ||||
Current liabilities | (10) | ||||
Non-current liabilities | (22) | ||||
Total liabilities assumed | (31) | ||||
Net identifiable assets acquired | 49 | ||||
Goodwill | 117 | ||||
Total purchase price | € 166 |
Business Acquisitions and Div_5
Business Acquisitions and Divestitures - Divestitures (Details) € in Millions, $ in Millions | 12 Months Ended | |||||
Sep. 14, 2022 USD ($) | Sep. 14, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale of business | $ | $ 278 | $ 0 | $ 0 | |||
3.500% Senior Secured Euro Notes due July 2024 | Senior Notes | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Stated interest rate on debt (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | ||
Senior Secured Notes 6.500 Percent Due In February 2005 | Senior Notes | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Stated interest rate on debt (as a percent) | 6.50% | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Lis Holding S.p.A., | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Percentage of share capital sold | 100% | 100% | ||||
Sale price | € 700 | |||||
Consideration received | 479 | |||||
Disposal group, cash and restricted cash | 198 | |||||
Disposal group, selling costs | € 23 | |||||
Gain on sale of business | $ | $ 278 | |||||
Gain on sale of business, net of tax | $ | $ 276 |
Business Acquisitions and Div_6
Business Acquisitions and Divestitures - Discontinued Operations (Details) € in Millions, $ in Millions | 12 Months Ended | |||||||||
Jul. 13, 2022 EUR (€) | Aug. 05, 2021 EUR (€) | May 10, 2021 USD ($) | May 10, 2021 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | May 31, 2021 | May 20, 2021 | May 10, 2021 EUR (€) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Gain on sale of discontinued operations, net of tax | $ 0 | $ 391 | $ 0 | |||||||
4.750% Senior Secured Euro Notes due February 2023 | Senior Notes | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Stated interest rate on debt (as a percent) | 4.75% | 4.75% | 4.75% | 4.75% | ||||||
Discontinued Operations, Disposed of by Sale | Italian B2C Gaming Machine | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Sale price | $ 1,000 | € 950 | ||||||||
Cash consideration | € | € 125 | € 100 | € 725 | |||||||
Disposal group, cash and restricted cash | 139 | |||||||||
Gain on sale of discontinued operations before provision for income taxes | 396 | $ 396 | $ 0 | |||||||
Gain on sale of discontinued operations, net of tax | $ 391 |
Business Acquisitions and Div_7
Business Acquisitions and Divestitures - Summarized Financial Information for Discontinued Operations (Details) - USD ($) | 12 Months Ended | |||
May 10, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on sale of discontinued operations, net of tax | $ 0 | $ 391,000,000 | $ 0 | |
Income from discontinued operations | 0 | 415,000,000 | 37,000,000 | |
Less: Net loss attributable to non-controlling interests from discontinued operations | 0 | (2,000,000) | (5,000,000) | |
Income from discontinued operations attributable to IGT PLC | $ 0 | 417,000,000 | 41,000,000 | |
Discontinued Operations, Disposed of by Sale | Italian B2C Gaming Machine | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total revenue | 74,000,000 | 429,000,000 | ||
Operating income | 24,000,000 | 51,000,000 | ||
Income from discontinued operations before provision for (benefit from) income taxes | 23,000,000 | 43,000,000 | ||
(Benefit from) provision for income taxes on discontinued operations | (1,000,000) | 7,000,000 | ||
Gain on sale of discontinued operations before provision for income taxes | $ 396,000,000 | 396,000,000 | 0 | |
Provision for income taxes on sale of discontinued operations | 5,000,000 | 0 | ||
Gain on sale of discontinued operations, net of tax | $ 391,000,000 | |||
Income from discontinued operations | 415,000,000 | 37,000,000 | ||
Less: Net loss attributable to non-controlling interests from discontinued operations | (2,000,000) | (5,000,000) | ||
Income from discontinued operations attributable to IGT PLC | 417,000,000 | 41,000,000 | ||
Depreciation and amortization | $ 0 | $ 95,000,000 | ||
Discontinued Operations, Disposed of by Sale | Italian B2C Gaming Machine | Maximum | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Period of continuing involvement | 1 year |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 4,225 | $ 4,089 | $ 3,115 |
Service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,359 | 3,483 | 2,640 |
Operating and facilities management contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,181 | 2,363 | 1,744 |
Gaming terminal services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 483 | 424 | 298 |
PlayDigital services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 209 | 163 | 114 |
Systems, software, and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 487 | 534 | 484 |
Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 866 | 606 | 476 |
Lottery products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 157 | 123 | 121 |
Gaming terminals | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 501 | 339 | 205 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 209 | 144 | 149 |
Global Lottery | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,593 | 2,812 | 2,164 |
Global Lottery | Service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,436 | 2,690 | 2,043 |
Global Lottery | Operating and facilities management contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,181 | 2,363 | 1,744 |
Global Lottery | Gaming terminal services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Lottery | PlayDigital services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Lottery | Systems, software, and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 255 | 327 | 299 |
Global Lottery | Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 157 | 123 | 121 |
Global Lottery | Lottery products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 157 | 123 | 121 |
Global Lottery | Gaming terminals | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Lottery | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Gaming | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,423 | 1,112 | 837 |
Global Gaming | Service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 714 | 630 | 483 |
Global Gaming | Operating and facilities management contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Gaming | Gaming terminal services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 483 | 424 | 298 |
Global Gaming | PlayDigital services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Gaming | Systems, software, and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 232 | 206 | 186 |
Global Gaming | Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 709 | 482 | 354 |
Global Gaming | Lottery products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Gaming | Gaming terminals | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 501 | 339 | 205 |
Global Gaming | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 208 | 143 | 148 |
PlayDigital | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 209 | 165 | 115 |
PlayDigital | Service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 209 | 163 | 114 |
PlayDigital | Operating and facilities management contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
PlayDigital | Gaming terminal services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
PlayDigital | PlayDigital services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 209 | 163 | 114 |
PlayDigital | Systems, software, and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
PlayDigital | Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1 | 1 | 1 |
PlayDigital | Lottery products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
PlayDigital | Gaming terminals | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
PlayDigital | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1 | $ 1 | $ 1 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Contract assets: | ||
Current | $ 69,000 | $ 49,000 |
Non-current | 81,000 | 69,000 |
Contract with customer, asset, net | 150,000 | 118,000 |
Contract liabilities: | ||
Current | (91,000) | (104,000) |
Non-current | (49,000) | (47,000) |
Contract with customer, liability | $ (139,000) | $ (151,000) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Contract with customer, liability, revenue recognized | $ 98 | $ 107 | $ 56 |
Revenue, remaining performance obligation | $ 972 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |||
Disaggregation of Revenue [Line Items] | |||
Revenue remaining performance obligation percentage | 30% | ||
Expected timing of satisfaction, period | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||
Disaggregation of Revenue [Line Items] | |||
Revenue remaining performance obligation percentage | 37% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Expected timing of satisfaction, period | 13 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Expected timing of satisfaction, period | 36 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |||
Disaggregation of Revenue [Line Items] | |||
Revenue remaining performance obligation percentage | 16% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Expected timing of satisfaction, period | 37 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Expected timing of satisfaction, period | 60 months |
Trade and Other Receivables, _3
Trade and Other Receivables, net - Schedule of Trade and Other Receivables, Net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||||
Trade and other receivables, gross | $ 680 | $ 917 | ||
Allowance for credit losses | (11) | (15) | $ (16) | $ (22) |
Trade and other receivables, net | $ 670 | $ 903 |
Trade and Other Receivables, _4
Trade and Other Receivables, net - Schedule of Activity of Allowance for Credit Losses Related to Trade and Other Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Activity of allowance for credit losses related to trade and other receivables | |||
Balance at beginning of year | $ (15) | $ (16) | $ (22) |
(Provisions) recoveries, net | 0 | (2) | (6) |
Amounts written off as uncollectible | 3 | 2 | 10 |
Other | 0 | 0 | 3 |
Balance at end of year | $ (11) | $ (15) | $ (16) |
Trade and Other Receivables, _5
Trade and Other Receivables, net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||
Account receivables sold during the period, net | $ 266 | $ 325 |
Account receivables sold during the period, gross | 1,400 | 1,100 |
Factoring agreements, amounts collected on behalf of others | $ 126 | $ 57 |
Inventories, net - Schedule of
Inventories, net - Schedule of Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||||
Raw materials | $ 165 | $ 107 | ||
Work in progress | 24 | 25 | ||
Finished goods | 87 | 78 | ||
Inventories, gross | 276 | 211 | ||
Obsolescence reserve | (22) | (28) | $ (43) | $ (34) |
Inventories, net | $ 254 | $ 183 |
Inventories, net - Restructurin
Inventories, net - Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Inventory Valuation Reserve [Roll Forward] | |||
Balance at beginning of year | $ (28) | $ (43) | $ (34) |
Provisions, net | (2) | (1) | (34) |
Amounts written off | 7 | 11 | 24 |
Other | 1 | 4 | 1 |
Balance at end of year | $ (22) | $ (28) | $ (43) |
Other Assets - Other Current As
Other Assets - Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other current assets | ||
Customer financing receivables, net | $ 143,000 | $ 170,000 |
Income taxes receivable | 98,000 | 64,000 |
Contract assets | 69,000 | 49,000 |
Prepaid expenses | 44,000 | 54,000 |
Other tax receivables | 28,000 | 17,000 |
Value-added tax receivable | 25,000 | 28,000 |
Deferred costs | 23,000 | 28,000 |
Other receivables | 5,000 | 158,000 |
Other | 32,000 | 25,000 |
Total other current assets | $ 467,000 | $ 593,000 |
Other Assets - Non-Current Asse
Other Assets - Non-Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other non-current assets | ||
Upfront license fees, net | $ 903,000 | $ 1,134,000 |
Contract assets | 81,000 | 69,000 |
Customer financing receivables, net | 76,000 | 92,000 |
Deferred income taxes | 38,000 | 39,000 |
Finance lease right-of-use assets | 23,000 | 29,000 |
Other | 52,000 | 66,000 |
Total other non-current assets | 1,174,000 | 1,429,000 |
Italian Scratch & Win | ||
Other non-current assets | ||
Upfront license fees, net | 545,000 | 680,000 |
Italian Lotto | ||
Other non-current assets | ||
Upfront license fees, net | 266,000 | 380,000 |
New Jersey | ||
Other non-current assets | ||
Upfront license fees, net | 57,000 | 66,000 |
Indiana | ||
Other non-current assets | ||
Upfront license fees, net | 8,000 | 9,000 |
Rhode Island | ||
Other non-current assets | ||
Upfront license fees, net | $ 27,000 | $ 0 |
Other Assets - Schedule of Capi
Other Assets - Schedule of Capitalized Contract Costs (Details) | Dec. 31, 2022 |
Rhode Island | |
Capitalized Contract Cost [Line Items] | |
Capitalized contract cost, amortization period | 20 years 6 months |
Italian Scratch & Win | |
Capitalized Contract Cost [Line Items] | |
Capitalized contract cost, amortization period | 9 years |
Italian Lotto | |
Capitalized Contract Cost [Line Items] | |
Capitalized contract cost, amortization period | 9 years |
New Jersey | |
Capitalized Contract Cost [Line Items] | |
Capitalized contract cost, amortization period | 15 years 9 months |
Indiana | |
Capitalized Contract Cost [Line Items] | |
Capitalized contract cost, amortization period | 15 years |
Other Assets - Customer Financi
Other Assets - Customer Financing Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets | ||||
Customer financing receivables, net | $ 143 | $ 170 | ||
Non-Current Assets | ||||
Customer financing receivables, net | 76 | 92 | ||
Total | ||||
Customer financing receivables, gross | 271 | |||
Customer portfolio segment | ||||
Current Assets | ||||
Customer financing receivables, gross | 184 | 220 | ||
Allowance for credit losses | (42) | (51) | ||
Customer financing receivables, net | 143 | 170 | ||
Non-Current Assets | ||||
Customer financing receivables, gross | 87 | 111 | ||
Allowance for credit losses | (11) | (20) | ||
Customer financing receivables, net | 76 | 92 | ||
Total | ||||
Customer financing receivables, gross | 271 | 332 | ||
Allowance for credit losses | (52) | (71) | $ (50) | $ (32) |
Customer financing receivables, net | $ 219 | $ 261 |
Other Assets - Activity in Allo
Other Assets - Activity in Allowance for Credit Losses (Details) - Customer portfolio segment - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Activity in allowance for credit losses related to customer financing receivables, net | |||
Balance at beginning of year | $ (71) | $ (50) | $ (32) |
Provisions, net | 8 | (29) | (37) |
Amounts written off as uncollectible | 10 | 8 | 24 |
Other | 0 | 0 | (5) |
Balance at end of year | $ (52) | $ (71) | $ (50) |
Other Assets - Customer Finan_2
Other Assets - Customer Financing Receivables at Amortized Cost by Year of Origination (Details) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, year one | $ 102 | ||||
Financing receivable, year two | $ 44 | ||||
Financing receivable, year three | $ 26 | ||||
Financing receivable, year four | $ 75 | ||||
Financing receivable, year five and prior | $ 24 | ||||
Customer financing receivables, gross | 271 | ||||
Short-term portion not yet due | 123 | ||||
Long-term portion not yet due | 87 | ||||
Financial Asset, Past Due | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Customer financing receivables, gross | 62 | ||||
North America | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, year one | 39 | ||||
Financing receivable, year two | 10 | ||||
Financing receivable, year three | 12 | ||||
Financing receivable, year four | 5 | ||||
Financing receivable, year five and prior | 0 | ||||
Customer financing receivables, gross | 66 | ||||
Short-term portion not yet due | 38 | ||||
Long-term portion not yet due | 26 | ||||
North America | Financial Asset, Past Due | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Customer financing receivables, gross | 2 | ||||
EMEA & APAC | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, year one | 35 | ||||
Financing receivable, year two | 18 | ||||
Financing receivable, year three | 7 | ||||
Financing receivable, year four | 9 | ||||
Financing receivable, year five and prior | 2 | ||||
Customer financing receivables, gross | 72 | ||||
Short-term portion not yet due | 30 | ||||
Long-term portion not yet due | 27 | ||||
EMEA & APAC | Financial Asset, Past Due | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Customer financing receivables, gross | 15 | ||||
LAC | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, year one | 28 | ||||
Financing receivable, year two | $ 16 | ||||
Financing receivable, year three | $ 6 | ||||
Financing receivable, year four | $ 61 | ||||
Financing receivable, year five and prior | $ 22 | ||||
Customer financing receivables, gross | 133 | ||||
Short-term portion not yet due | 54 | ||||
Long-term portion not yet due | 33 | ||||
LAC | Financial Asset, Past Due | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Customer financing receivables, gross | $ 45 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - Measured at fair value on a recurring basis - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative assets | $ 1 | $ 3 |
Derivative liabilities | 3 | 2 |
Contingent consideration | 4 | |
Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments | $ 6 | $ 6 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Hierarchy for Financial Assets and Liabilities not Measured at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investments | $ 9 | $ 11 |
Jackpot liabilities | 170 | 196 |
Debt | 5,750 | 6,477 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investments | 9 | 11 |
Jackpot liabilities | 135 | 184 |
Debt | 5,576 | 6,792 |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investments | 0 | 0 |
Jackpot liabilities | 0 | 0 |
Debt | 0 | 0 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investments | 0 | 0 |
Jackpot liabilities | 0 | 0 |
Debt | 5,576 | 6,792 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investments | 9 | 11 |
Jackpot liabilities | 135 | 184 |
Debt | 0 | 0 |
Customer portfolio segment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | 219 | 261 |
Customer portfolio segment | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | 219 | 261 |
Customer portfolio segment | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | 211 | 245 |
Customer portfolio segment | Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | 0 | 0 |
Customer portfolio segment | Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | 0 | 0 |
Customer portfolio segment | Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | $ 211 | $ 245 |
Derivative Financial Instrume_2
Derivative Financial Instruments - Narrative (Details) - Foreign Currency Forward Contracts - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Non-designated Hedges | ||
Derivative [Line Items] | ||
Notional amount | $ 212 | $ 283 |
Hedges | Designated Hedges | ||
Derivative [Line Items] | ||
Notional amount | $ 94 | $ 42 |
Systems, Equipment and Other _3
Systems, Equipment and Other Assets Related to Contracts, net and Property, Plant and Equipment, net - Systems & Equipment and PPE (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fixed assets | ||
Systems, equipment and other assets related to contracts, net | $ 899 | $ 937 |
Property, plant and equipment - net | 118 | 119 |
Systems & Equipment, net | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 2,944 | 2,691 |
Accumulated depreciation | (2,045) | (1,754) |
Systems, equipment and other assets related to contracts, net | 899 | 937 |
Systems & Equipment, net | Land | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 0 | 0 |
Systems & Equipment, net | Buildings | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 0 | 0 |
Systems & Equipment, net | Terminals and systems | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 2,720 | 2,479 |
Systems & Equipment, net | Furniture and equipment | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 127 | 138 |
Systems & Equipment, net | Construction in progress | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 97 | 75 |
PPE, net | ||
Fixed assets | ||
Property, plant and equipment, gross | 398 | 324 |
Accumulated depreciation | (281) | (205) |
Property, plant and equipment - net | 118 | 119 |
PPE, net | Land | ||
Fixed assets | ||
Property, plant and equipment, gross | 1 | 1 |
PPE, net | Buildings | ||
Fixed assets | ||
Property, plant and equipment, gross | 60 | 58 |
PPE, net | Terminals and systems | ||
Fixed assets | ||
Property, plant and equipment, gross | 0 | 0 |
PPE, net | Furniture and equipment | ||
Fixed assets | ||
Property, plant and equipment, gross | 315 | 255 |
PPE, net | Construction in progress | ||
Fixed assets | ||
Property, plant and equipment, gross | $ 21 | $ 10 |
Systems, Equipment and Other _4
Systems, Equipment and Other Assets Related to Contracts, net and Property, Plant and Equipment, net - Schedule of Useful Lives Of Assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Terminals and systems - lottery | Systems & Equipment | |
Fixed assets | |
Useful life | 10 years |
Terminals and systems - gaming | Minimum | Systems & Equipment | |
Fixed assets | |
Useful life | 3 years |
Terminals and systems - gaming | Maximum | Systems & Equipment | |
Fixed assets | |
Useful life | 5 years |
Buildings | PPE | |
Fixed assets | |
Useful life | 40 years |
Furniture and equipment | Systems & Equipment | |
Fixed assets | |
Useful life | 10 years |
Furniture and equipment | Minimum | PPE | |
Fixed assets | |
Useful life | 5 years |
Furniture and equipment | Maximum | PPE | |
Fixed assets | |
Useful life | 10 years |
Leases - Leased Assets and Liab
Leases - Leased Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Operating ROU asset | $ 254 | $ 283 |
Finance lease right-of-use assets | 23 | 29 |
Total lease assets | 277 | 312 |
Liabilities: | ||
Operating lease liability, current | 37 | 39 |
Finance lease liability, current | 8 | 10 |
Operating lease liability, non-current | 239 | 269 |
Finance lease liability, non-current | 22 | 27 |
Present value of lease liabilities | $ 307 | $ 344 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other non-current assets | Other non-current assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities |
Finance lease, right-of-use asset, accumulated amortization | $ 15 | $ 24 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted-Average Remaining Lease Term (in years) | |||
Operating leases | 7 years 8 months 19 days | 8 years 5 months 19 days | 8 years 3 months 25 days |
Finance leases | 4 years 3 months 21 days | 4 years 8 months 23 days | 5 years 1 month 17 days |
Weighted-Average Discount Rate | |||
Operating leases | 6.88% | 6.71% | 7.01% |
Finance leases | 5.12% | 4.98% | 5.16% |
Operating lease costs | $ 62 | $ 71 | $ 72 |
Finance lease costs | 11 | 13 | 11 |
Short-term lease costs | 13 | 1 | 1 |
Variable lease costs | 23 | 23 | 23 |
Finance lease, ROU asset, amortization | 10 | 11 | 9 |
Finance lease, interest expense | $ 2 | $ 2 | $ 2 |
Leases - Maturity Schedule (Det
Leases - Maturity Schedule (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Lease | ||
2023 | $ 55 | |
2024 | 51 | |
2025 | 47 | |
2026 | 41 | |
2027 | 36 | |
Thereafter | 133 | |
Total lease payments | 364 | |
Less: Imputed interest | (87) | |
Present value of lease liabilities | 277 | |
Finance Lease | ||
2023 | 10 | |
2024 | 7 | |
2025 | 6 | |
2026 | 6 | |
2027 | 3 | |
Thereafter | 1 | |
Total lease payments | 34 | |
Less: Imputed interest | (3) | |
Present value of lease liabilities | 30 | |
Lease Liabilities Payments Due [Abstract] | ||
2023 | 64 | |
2024 | 59 | |
2025 | 54 | |
2026 | 47 | |
2027 | 39 | |
Thereafter | 135 | |
Total lease payments | 398 | |
Less: Imputed interest | (91) | |
Present value of lease liabilities | $ 307 | $ 344 |
Leases - Cash Flow (Details)
Leases - Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of liabilities | |||
Operating cash flows from operating and finance leases | $ 60 | $ 67 | $ 68 |
Finance cash flows from finance leases | 10 | 13 | 10 |
ROU assets obtained in exchange for lease obligations (net of early terminations) | |||
Operating leases | 19 | 5 | 34 |
Finance leases | $ 4 | $ 7 | $ 6 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessor, Lease, Description [Line Items] | |||
Operating lease income as a percentage of revenues | 6% | 6% | 6% |
Sales-type lease income as a percentage of revenues | 1% | 1% | 1% |
Minimum | |||
Lessor, Lease, Description [Line Items] | |||
Lessor, operating lease, term | 1 month | ||
Lessor, sales-type lease, term | 1 year | ||
Maximum | |||
Lessor, Lease, Description [Line Items] | |||
Lessor, operating lease, term | 4 years | ||
Lessor, sales-type lease, term | 10 years |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
2021 Italian workforce redundancies plan expense, net | $ 6 | $ 6 | $ 45 | |
Reversals of expense and other | (2) | (6) | ||
Italian Workforce Redundancies | ||||
Restructuring Cost and Reserve [Line Items] | ||||
2021 Italian workforce redundancies plan expense, net | $ 7 | 11 | ||
Italian Workforce Redundancies | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Period of continuing involvement | 1 year | |||
Italian Workforce Redundancies | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Period of continuing involvement | 3 years | |||
Segment Reorganization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost incurred to date | 16 | |||
Global Supply Chain Optimization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost incurred to date | 8 | |||
Technology Organization Consolidation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost incurred to date | $ 17 | |||
Severance and Related Employee Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reversals of expense and other | $ (2) | (5) | ||
Severance and Related Employee Costs | Italian Workforce Redundancies | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 35 | |||
2021 Italian workforce redundancies plan expense, net | 7 | 11 | ||
Restructuring cost incurred to date | 18 | |||
Severance and Related Employee Costs | Segment Reorganization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost incurred to date | $ 15 | |||
Reversals of expense and other | 1 | 1 | ||
Severance and Related Employee Costs | Global Supply Chain Optimization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost incurred to date | $ 7 | |||
Reversals of expense and other | 1 | 1 | ||
Severance and Related Employee Costs | Technology Organization Consolidation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost incurred to date | 13 | |||
Reversals of expense and other | $ 4 | $ 4 |
Restructuring - Schedule of Act
Restructuring - Schedule of Activity in the Restructuring Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 13 | $ 24 | |
2021 Italian workforce redundancies plan expense, net | 6 | 6 | $ 45 |
Cash paid for all plans | (4) | (17) | |
Reversals of expense and other | (2) | (6) | |
Restructuring reserve, ending balance | 14 | 13 | 24 |
Italian Workforce Redundancies | |||
Restructuring Reserve [Roll Forward] | |||
2021 Italian workforce redundancies plan expense, net | 7 | 11 | |
Severance and Related Employee Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 12 | 23 | |
Cash paid for all plans | (4) | (17) | |
Reversals of expense and other | (2) | (5) | |
Restructuring reserve, ending balance | 14 | 12 | 23 |
Severance and Related Employee Costs | Italian Workforce Redundancies | |||
Restructuring Reserve [Roll Forward] | |||
2021 Italian workforce redundancies plan expense, net | 7 | 11 | |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 1 | 1 | |
Cash paid for all plans | (1) | 0 | |
Reversals of expense and other | 0 | (1) | |
Restructuring reserve, ending balance | 0 | 1 | $ 1 |
Other | Italian Workforce Redundancies | |||
Restructuring Reserve [Roll Forward] | |||
2021 Italian workforce redundancies plan expense, net | $ 0 | $ 0 |
Restructuring - Restructuring E
Restructuring - Restructuring Expense by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 6 | $ 6 | $ 45 |
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | 2021 Italian workforce redundancies plan expense, net | 2021 Italian workforce redundancies plan expense, net | 2021 Italian workforce redundancies plan expense, net |
Severance and Related Employee Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 6 | $ 6 | $ 41 |
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0 | (1) | 4 |
Global Lottery | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 6 | 8 | 5 |
Global Lottery | Severance and Related Employee Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 6 | 8 | 5 |
Global Lottery | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0 | 0 | 0 |
Global Gaming | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (1) | (4) | 32 |
Global Gaming | Severance and Related Employee Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (1) | (3) | 28 |
Global Gaming | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0 | (1) | 4 |
PlayDigital | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0 | (1) | 2 |
PlayDigital | Severance and Related Employee Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0 | (1) | 2 |
PlayDigital | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0 | 0 | 0 |
Corporate and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 1 | 2 | 6 |
Corporate and Other | Severance and Related Employee Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 1 | 2 | 6 |
Corporate and Other | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 0 | $ 0 | $ 0 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Sep. 01, 2021 USD ($) | Mar. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jul. 01, 2022 USD ($) | Jul. 01, 2022 EUR (€) | |
Goodwill [Line Items] | |||||||
Goodwill allocated to reporting unit | $ 0 | ||||||
Goodwill | $ 4,482 | 4,656 | $ 4,713 | ||||
Goodwill, reduction | 250 | ||||||
Accumulated impairment losses | 1,300 | 1,300 | 1,300 | ||||
Goodwill impairment | $ 296 | 0 | 0 | 296 | |||
iSoftBet | |||||||
Goodwill [Line Items] | |||||||
Goodwill | € | € 117 | ||||||
Global Gaming | |||||||
Goodwill [Line Items] | |||||||
Goodwill allocated to reporting unit | $ 1,400 | (265) | |||||
Goodwill | 1,444 | 1,446 | 1,716 | ||||
Goodwill, reduction | 0 | ||||||
PlayDigital | |||||||
Goodwill [Line Items] | |||||||
Goodwill allocated to reporting unit | $ 265 | 265 | |||||
Goodwill | 376 | 261 | 0 | ||||
Goodwill, reduction | 0 | ||||||
PlayDigital | iSoftBet | |||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 121 | € 117 | |||||
Global Lottery | |||||||
Goodwill [Line Items] | |||||||
Goodwill allocated to reporting unit | 0 | ||||||
Goodwill | 2,662 | $ 2,948 | $ 2,997 | ||||
Goodwill, reduction | $ 250 | ||||||
International | |||||||
Goodwill [Line Items] | |||||||
Goodwill impairment | 193 | ||||||
North America Gaming And Interactive | |||||||
Goodwill [Line Items] | |||||||
Goodwill impairment | $ 103 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill, net (Details) $ in Millions | 6 Months Ended | 12 Months Ended | 14 Months Ended | ||
Sep. 01, 2021 USD ($) | Dec. 31, 2021 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Aug. 31, 2021 segment | |
Changes in the carrying amount of goodwill, net | |||||
Balance at the beginning of the period | $ 4,656 | $ 4,713 | |||
Segment realignment | 0 | ||||
Foreign currency translation | (44) | (58) | |||
Acquisitions | 121 | ||||
Divestitures | (250) | ||||
Balance at the end of the period | $ 4,656 | 4,482 | 4,656 | ||
Number of business segments | segment | 3 | 2 | |||
Global Lottery | |||||
Changes in the carrying amount of goodwill, net | |||||
Balance at the beginning of the period | 2,948 | 2,997 | |||
Segment realignment | 0 | ||||
Foreign currency translation | (36) | (49) | |||
Acquisitions | 0 | ||||
Divestitures | (250) | ||||
Balance at the end of the period | $ 2,948 | 2,662 | 2,948 | ||
Global Gaming | |||||
Changes in the carrying amount of goodwill, net | |||||
Balance at the beginning of the period | 1,446 | 1,716 | |||
Segment realignment | $ 1,400 | (265) | |||
Foreign currency translation | (2) | (5) | |||
Acquisitions | 0 | ||||
Divestitures | 0 | ||||
Balance at the end of the period | 1,446 | 1,444 | 1,446 | ||
PlayDigital | |||||
Changes in the carrying amount of goodwill, net | |||||
Balance at the beginning of the period | 261 | 0 | |||
Segment realignment | $ 265 | 265 | |||
Foreign currency translation | (6) | (3) | |||
Acquisitions | 121 | ||||
Divestitures | 0 | ||||
Balance at the end of the period | $ 261 | $ 376 | $ 261 |
Intangible Assets, net - Compon
Intangible Assets, net - Components (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 9 years 2 months 12 days | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 3,830 | $ 3,734 |
Total Gross Carrying Amount | 4,075 | 3,979 |
Amortization | ||
Accumulated Amortization | 2,700 | 2,566 |
Intangible assets, net | ||
Net Carrying Amount | 1,130 | 1,168 |
Total Net Book Value | $ 1,375 | 1,413 |
Minimum | ||
Intangible assets, net | ||
Estimated Life (Years) | 6 years | |
Maximum | ||
Intangible assets, net | ||
Estimated Life (Years) | 15 years | |
Trademarks | ||
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount, Unamortized | $ 245 | 245 |
Customer relationships | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 15 years 6 months | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 2,303 | 2,298 |
Amortization | ||
Accumulated Amortization | 1,464 | 1,349 |
Intangible assets, net | ||
Net Carrying Amount | $ 838 | 949 |
Customer relationships | Minimum | ||
Intangible assets, net | ||
Estimated Life (Years) | 2 years | |
Customer relationships | Maximum | ||
Intangible assets, net | ||
Estimated Life (Years) | 20 years | |
Computer software and game library | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 6 years 3 months 18 days | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 887 | 918 |
Amortization | ||
Accumulated Amortization | 809 | 809 |
Intangible assets, net | ||
Net Carrying Amount | $ 78 | 109 |
Computer software and game library | Minimum | ||
Intangible assets, net | ||
Estimated Life (Years) | 3 years | |
Computer software and game library | Maximum | ||
Intangible assets, net | ||
Estimated Life (Years) | 14 years | |
Trademarks | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 14 years 2 months 12 days | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 184 | 185 |
Amortization | ||
Accumulated Amortization | 119 | 106 |
Intangible assets, net | ||
Net Carrying Amount | $ 65 | 80 |
Trademarks | Minimum | ||
Intangible assets, net | ||
Estimated Life (Years) | 1 year | |
Trademarks | Maximum | ||
Intangible assets, net | ||
Estimated Life (Years) | 20 years | |
Developed technologies | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 6 years 1 month 6 days | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 283 | 233 |
Amortization | ||
Accumulated Amortization | 222 | 216 |
Intangible assets, net | ||
Net Carrying Amount | $ 61 | 17 |
Developed technologies | Minimum | ||
Intangible assets, net | ||
Estimated Life (Years) | 2 years | |
Developed technologies | Maximum | ||
Intangible assets, net | ||
Estimated Life (Years) | 15 years | |
Licenses | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 3 years 8 months 12 days | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 133 | 65 |
Amortization | ||
Accumulated Amortization | 55 | 58 |
Intangible assets, net | ||
Net Carrying Amount | $ 78 | 6 |
Licenses | Minimum | ||
Intangible assets, net | ||
Estimated Life (Years) | 3 years | |
Licenses | Maximum | ||
Intangible assets, net | ||
Estimated Life (Years) | 23 years | |
Other | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 7 years 10 months 24 days | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 40 | 35 |
Amortization | ||
Accumulated Amortization | 31 | 28 |
Intangible assets, net | ||
Net Carrying Amount | $ 9 | $ 7 |
Other | Minimum | ||
Intangible assets, net | ||
Estimated Life (Years) | 2 years | |
Other | Maximum | ||
Intangible assets, net | ||
Estimated Life (Years) | 17 years |
Intangible Assets, net - Narrat
Intangible Assets, net - Narrative (Details) € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 14, 2022 EUR (€) | Jul. 01, 2022 USD ($) | Jul. 01, 2022 EUR (€) | |
Indefinite-lived Intangible Assets [Line Items] | ||||||
Amortization of intangible assets | $ | $ 182 | $ 190 | $ 203 | |||
Weighted average amortization period | 9 years 2 months 12 days | |||||
Discontinued Operations, Disposed of by Sale | Lis Holding S.p.A., | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Reduction in net book value of intangible assets | € | € 12 | |||||
Minimum | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible asset, useful life | 6 years | |||||
Maximum | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible asset, useful life | 15 years | |||||
iSoftBet | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Intangible assets | $ 58 | € 59 | ||||
Computer software | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Amortization of intangible assets | $ | $ 22 | $ 23 | $ 26 | |||
Developed technologies | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Weighted average amortization period | 6 years 1 month 6 days | |||||
Developed technologies | Minimum | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible asset, useful life | 2 years | |||||
Developed technologies | Maximum | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible asset, useful life | 15 years | |||||
Developed technologies | iSoftBet | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Intangible assets | € | 51 | |||||
Customer relationships | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Weighted average amortization period | 15 years 6 months | |||||
Customer relationships | Minimum | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible asset, useful life | 2 years | |||||
Customer relationships | Maximum | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible asset, useful life | 20 years | |||||
Customer relationships | iSoftBet | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Intangible assets | € | € 8 | |||||
Intellectual Property | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Indefinite-Lived License Agreements | $ | $ 75 |
Intangible Assets, net - Amorti
Intangible Assets, net - Amortization and Impairment (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Expected amortization expense for next five years | |
2023 | $ 199 |
2024 | 182 |
2025 | 158 |
2026 | 119 |
2027 | 112 |
Finite lived intangible assets amortization expense, years one through five | $ 769 |
Debt - Reconciliation to Consol
Debt - Reconciliation to Consolidated Balance Sheets (Details) € in Millions, $ in Millions | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 EUR (€) | Sep. 14, 2022 | Dec. 31, 2021 USD ($) |
Debt Instrument [Line Items] | ||||||
Debt issuance cost, net | $ (45) | $ (48) | ||||
Total | 5,750 | 6,529 | ||||
Short-term borrowings | 0 | 52 | ||||
Total debt | 5,795 | 6,577 | ||||
Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 61 | |||||
Debt issuance cost, net | 0 | |||||
Short-term borrowings | 61 | |||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 4,603 | 5,393 | ||||
Debt issuance cost, net | (26) | (36) | ||||
Total | 4,578 | 5,357 | ||||
Senior Notes | 3.500% Senior Secured Euro Notes due July 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 320 | € 300 | $ 197 | € 200 | 566 | |
Debt issuance cost, net | (1) | (3) | ||||
Total | $ 319 | $ 564 | ||||
Stated interest rate on debt (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% |
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 700 | $ 400 | $ 1,100 | |||
Debt issuance cost, net | (3) | (7) | ||||
Total | $ 697 | $ 1,093 | ||||
Stated interest rate on debt (as a percent) | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | |
Senior Notes | 4.125% Senior Secured U.S. Dollar Notes due April 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 750 | $ 750 | ||||
Debt issuance cost, net | (5) | (6) | ||||
Total | $ 745 | $ 744 | ||||
Stated interest rate on debt (as a percent) | 4.125% | 4.125% | 4.125% | |||
Senior Notes | 3.500% Senior Secured Euro Notes due June 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 800 | € 750 | $ 849 | |||
Debt issuance cost, net | (4) | (5) | ||||
Total | $ 796 | $ 844 | ||||
Stated interest rate on debt (as a percent) | 3.50% | 3.50% | 3.50% | |||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 750 | $ 750 | ||||
Debt issuance cost, net | (4) | (5) | ||||
Total | $ 746 | $ 745 | ||||
Stated interest rate on debt (as a percent) | 6.25% | 6.25% | 6.25% | |||
Senior Notes | 2.375% Senior Secured Euro Notes due April 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 533 | € 500 | $ 566 | |||
Debt issuance cost, net | (3) | (4) | ||||
Total | $ 530 | $ 562 | ||||
Stated interest rate on debt (as a percent) | 2.375% | 2.375% | 2.375% | |||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 750 | € 750 | $ 750 | |||
Debt issuance cost, net | (5) | (6) | ||||
Total | $ 745 | $ 744 | ||||
Stated interest rate on debt (as a percent) | 5.25% | 5.25% | 5.25% | |||
Senior Notes | 5.350% Senior Secured U.S. Dollar Notes due October 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 61 | $ 61 | ||||
Debt issuance cost, net | 0 | 0 | ||||
Total | $ 61 | $ 61 | ||||
Stated interest rate on debt (as a percent) | 5.35% | 5.35% | 5.35% | |||
Term loan | Euro Term Loan Facilities due January 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 1,067 | $ 1,133 | ||||
Debt issuance cost, net | (9) | (12) | ||||
Long-term debt, Total | 1,058 | 1,121 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 5,735 | 6,525 | ||||
Debt issuance cost, net | (45) | (48) | ||||
Long-term debt, Total | 5,690 | 6,477 | ||||
Revolving Credit Facility | Other non-current assets | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance cost, net | (9) | $ (17) | ||||
Revolving Credit Facility | U.S. Dollar Revolving Credit Facility A due July 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 65 | |||||
Debt issuance cost, net | (10) | |||||
Long-term debt, Total | $ 55 |
Debt - Schedule of Principal pa
Debt - Schedule of Principal payments for each debt obligation, excluding short-term borrowings (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
2023 | $ 61 |
2024 | 533 |
2025 | 913 |
2026 | 1,763 |
2027 | 1,242 |
2028 and thereafter | 1,283 |
Total principal payments | 5,795 |
U.S. Dollar Denominated | |
Debt Instrument [Line Items] | |
2023 | 61 |
2024 | 0 |
2025 | 700 |
2026 | 750 |
2027 | 815 |
2028 and thereafter | 750 |
Total principal payments | 3,076 |
Euro Denominated | |
Debt Instrument [Line Items] | |
2023 | 0 |
2024 | 533 |
2025 | 213 |
2026 | 1,013 |
2027 | 427 |
2028 and thereafter | 533 |
Total principal payments | $ 2,720 |
Debt - Schedule of Senior Secur
Debt - Schedule of Senior Secured Notes (Details) € in Millions | 12 Months Ended | |||||
Feb. 28, 2023 | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 EUR (€) | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||
Minimum principal balance of intercompany loans securing the debt | $ 10,000,000 | |||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 4,603,000,000 | $ 5,393,000,000 | ||||
Senior Notes | 5.350% Senior Secured U.S. Dollar Notes due October 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 61,000,000 | 61,000,000 | ||||
Effective interest rate (as a percent) | 5.47% | 5.47% | ||||
Senior Notes | 5.350% Senior Secured U.S. Dollar Notes due October 2023 | Debt Instrument, Redemption, Period 5 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 5.350% Senior Secured U.S. Dollar Notes due October 2023 | Debt Instrument, Redemption, Period 7 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 5.350% Senior Secured U.S. Dollar Notes due October 2023 | Debt Instrument, Redemption, Period 8 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 101% | |||||
Senior Notes | 3.500% Senior Secured Euro Notes due July 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 320,000,000 | € 300 | $ 197,000,000 | € 200 | 566,000,000 | |
Effective interest rate (as a percent) | 3.68% | 3.68% | ||||
Senior Notes | 3.500% Senior Secured Euro Notes due July 2024 | Subsequent event | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 3.500% Senior Secured Euro Notes due July 2024 | Debt Instrument, Redemption, Period 5 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 101% | |||||
Senior Notes | 3.500% Senior Secured Euro Notes due July 2024 | Debt Instrument, Redemption, Period 2 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 3.500% Senior Secured Euro Notes due July 2024 | Debt Instrument, Redemption, Period 3 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 3.500% Senior Secured Euro Notes due July 2024 | Debt Instrument, Redemption, Period 4 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 700,000,000 | $ 400,000,000 | 1,100,000,000 | |||
Effective interest rate (as a percent) | 6.71% | 6.71% | ||||
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | Debt Instrument, Redemption, Period 5 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 101% | |||||
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | Debt Instrument, Redemption, Period 2 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | Debt Instrument, Redemption, Period 3 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | Debt Instrument, Redemption, Period 4 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 4.125% Senior Secured U.S. Dollar Notes due April 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 750,000,000 | 750,000,000 | ||||
Effective interest rate (as a percent) | 4.34% | 4.34% | ||||
Senior Notes | 4.125% Senior Secured U.S. Dollar Notes due April 2026 | Debt Instrument, Redemption, Period 5 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 101% | |||||
Senior Notes | 4.125% Senior Secured U.S. Dollar Notes due April 2026 | Debt Instrument, Redemption, Period 2 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 4.125% Senior Secured U.S. Dollar Notes due April 2026 | Debt Instrument, Redemption, Period 4 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 3.500% Senior Secured Euro Notes due June 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 800,000,000 | € 750 | 849,000,000 | |||
Effective interest rate (as a percent) | 3.65% | 3.65% | ||||
Senior Notes | 3.500% Senior Secured Euro Notes due June 2026 | Debt Instrument, Redemption, Period 5 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 101% | |||||
Senior Notes | 3.500% Senior Secured Euro Notes due June 2026 | Debt Instrument, Redemption, Period 2 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 3.500% Senior Secured Euro Notes due June 2026 | Debt Instrument, Redemption, Period 4 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 750,000,000 | 750,000,000 | ||||
Effective interest rate (as a percent) | 6.41% | 6.41% | ||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | Debt Instrument, Redemption, Period 5 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 101% | |||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | Debt Instrument, Redemption, Period 2 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | Debt Instrument, Redemption, Period 3 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | Debt Instrument, Redemption, Period 4 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 2.375% Senior Secured Euro Notes due April 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 533,000,000 | € 500 | 566,000,000 | |||
Effective interest rate (as a percent) | 2.50% | 2.50% | ||||
Senior Notes | 2.375% Senior Secured Euro Notes due April 2028 | Debt Instrument, Redemption, Period 5 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 101% | |||||
Senior Notes | 2.375% Senior Secured Euro Notes due April 2028 | Debt Instrument, Redemption, Period 2 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 2.375% Senior Secured Euro Notes due April 2028 | Debt Instrument, Redemption, Period 4 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 750,000,000 | € 750 | $ 750,000,000 | |||
Effective interest rate (as a percent) | 5.39% | 5.39% | ||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | Debt Instrument, Redemption, Period 5 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 101% | |||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | Debt Instrument, Redemption, Period 2 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | Debt Instrument, Redemption, Period 4 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% |
Debt - Senior Secured Notes - N
Debt - Senior Secured Notes - Narrative (Details) € in Millions | 12 Months Ended | ||||||||||||||
Feb. 28, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Feb. 28, 2023 EUR (€) | Jan. 31, 2023 USD ($) | Dec. 31, 2022 EUR (€) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 EUR (€) | Sep. 14, 2022 | May 31, 2021 USD ($) | May 31, 2021 EUR (€) | May 20, 2021 | Mar. 31, 2021 USD ($) | Jun. 19, 2020 USD ($) | |
Debt Instrument [Line Items] | |||||||||||||||
Gain (loss) on extinguishment of debt | $ (13,000,000) | $ (92,000,000) | $ (28,000,000) | ||||||||||||
Debt issuance costs, net | 45,000,000 | 48,000,000 | |||||||||||||
Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal | 4,603,000,000 | 5,393,000,000 | |||||||||||||
Debt issuance costs, net | 26,000,000 | 36,000,000 | |||||||||||||
5.350% Senior Secured U.S. Dollar Notes due October 2023 | Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal | $ 61,000,000 | $ 61,000,000 | |||||||||||||
Stated interest rate on debt (as a percent) | 5.35% | 5.35% | 5.35% | ||||||||||||
Debt issuance costs, net | $ 0 | $ 0 | |||||||||||||
5.350% Senior Secured U.S. Dollar Notes due October 2023 | Senior Notes | Subsequent event | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Consideration paid, excluding interest | $ 61,000,000 | ||||||||||||||
6.500% Senior Secured U.S. Dollar Notes due February 2025 | Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Consideration paid, excluding interest | $ 406,000,000 | ||||||||||||||
Principal | $ 700,000,000 | $ 1,100,000,000 | $ 400,000,000 | ||||||||||||
Stated interest rate on debt (as a percent) | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | ||||||||||
Gain (loss) on extinguishment of debt | $ (9,000,000) | ||||||||||||||
Debt issuance costs, net | 3,000,000 | $ 7,000,000 | |||||||||||||
6.500% Senior Secured U.S. Dollar Notes due February 2025 | Senior Notes | Subsequent event | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repurchase amount | $ 200,000,000 | ||||||||||||||
Redemption price, per principal amount redeemed | $ 1,012.54 | ||||||||||||||
3.500% Senior Secured Euro Notes due July 2024 | Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Consideration paid, excluding interest | $ 198,000,000 | € 201 | |||||||||||||
Principal | $ 320,000,000 | $ 566,000,000 | € 300 | $ 197,000,000 | € 200 | ||||||||||
Stated interest rate on debt (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | |||||||||
Gain (loss) on extinguishment of debt | $ (2,000,000) | ||||||||||||||
Debt issuance costs, net | $ 1,000,000 | $ 3,000,000 | |||||||||||||
3.500% Senior Secured Euro Notes due July 2024 | Senior Notes | Subsequent event | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repurchase amount | € | € 188 | ||||||||||||||
4.750% Senior Secured Euro Notes due February 2023 | Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repurchase amount | $ 1,000,000,000 | € 850 | |||||||||||||
Consideration paid, excluding interest | $ 1,100,000,000 | ||||||||||||||
Stated interest rate on debt (as a percent) | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | |||||||||
Gain (loss) on extinguishment of debt | $ (67,000,000) | ||||||||||||||
4.125% Senior Secured U.S. Dollar Notes due April 2026 | Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal | $ 750,000,000 | $ 750,000,000 | |||||||||||||
Stated interest rate on debt (as a percent) | 4.125% | 4.125% | 4.125% | ||||||||||||
Debt issuance costs, net | $ 5,000,000 | $ 6,000,000 | |||||||||||||
6.250% Senior Secured U.S. Dollar Notes due February 2022 | Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repurchase amount | $ 1,000,000,000 | $ 500,000,000 | |||||||||||||
Consideration paid, excluding interest | $ 1,000,000,000 | $ 525,000,000 | |||||||||||||
Stated interest rate on debt (as a percent) | 6.25% | 6.25% | 6.25% | ||||||||||||
Gain (loss) on extinguishment of debt | $ (18,000,000) | (23,000,000) | |||||||||||||
6.250% Senior Secured U.S. Dollar Notes due February 2022 | Interest Expense | Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Gain (loss) on extinguishment of debt | 6,000,000 | 5,000,000 | |||||||||||||
6.250% Senior Secured U.S. Dollar Notes due February 2022 | Other Expense | Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Gain (loss) on extinguishment of debt | (24,000,000) | $ (28,000,000) | |||||||||||||
5.250% Senior Secured U.S. Dollar Notes due January 2029 | Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal | $ 750,000,000 | $ 750,000,000 | € 750 | ||||||||||||
Stated interest rate on debt (as a percent) | 5.25% | 5.25% | 5.25% | ||||||||||||
Debt issuance costs, net | $ 5,000,000 | $ 6,000,000 |
Debt - Euro Term Loans - Narrat
Debt - Euro Term Loans - Narrative (Details) € in Millions | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 USD ($) | Jul. 31, 2022 USD ($) | Jul. 31, 2021 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jul. 21, 2021 EUR (€) facility | |
Debt Instrument [Line Items] | ||||||
Minimum principal balance of intercompany loans securing the debt | $ 10,000,000 | |||||
Term Loan Facilities Due In 2023 | Term loan | ||||||
Debt Instrument [Line Items] | ||||||
Principal | € | € 860 | |||||
Amended Term Loan Facilities Due In 2027 | Term loan | ||||||
Debt Instrument [Line Items] | ||||||
Number of term loan facilities | facility | 2 | |||||
Principal | € | € 1,000 | € 500 | ||||
Interest rate increase (as a percent) | 0.35% | |||||
Interest rate maximum increase (as a percent) | 0.075% | |||||
Interest rate maximum decrease (as a percent) | 0.075% | |||||
Long-term debt current maturities transferred to long-term debt | € | € 320 | |||||
Amended Term Loan Facilities Due In 2027 | Term loan | International Game Technology PLC | ||||||
Debt Instrument [Line Items] | ||||||
Principal | € | 500 | |||||
Amended Term Loan Facilities Due In 2027 | Term loan | IGT Lottery Holdings B.V. | ||||||
Debt Instrument [Line Items] | ||||||
Principal | € | € 500 | |||||
Euro Term Loan Facilities due January 2027 | Term loan | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 1,067,000,000 | $ 1,133,000,000 | ||||
Effective interest rate (as a percent) | 2.15% | 2.11% | ||||
Annual permitted acquisition limit (as a percent) | 10% | |||||
Lifetime permitted acquisition limit | $ 2,250,000,000 | |||||
Euro Term Loan Facilities due January 2027 | Term loan | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, term of payment in arrears | 1 month | |||||
Maximum aggregate dividends and repurchases in each calendar year, per debt agreement terms | $ 300,000,000 | 400,000,000 | ||||
Euro Term Loan Facilities due January 2027 | Term loan | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, term of payment in arrears | 6 months | |||||
Maximum aggregate dividends and repurchases in each calendar year, per debt agreement terms | $ 550,000,000 | |||||
Annual permitted acquisition limit (as a percent) | 15% | |||||
Lifetime permitted acquisition limit | $ 2,500,000,000 |
Debt - Schedule of Installments
Debt - Schedule of Installments (Details) - Dec. 31, 2022 € in Millions, $ in Millions | USD ($) | EUR (€) |
Debt Instrument, Redemption [Line Items] | ||
January 25, 2024 | $ | $ 533 | |
January 25, 2025 | $ | 913 | |
January 25, 2026 | $ | 1,763 | |
January 25, 2027 | $ | $ 1,242 | |
Term loan | Amended Term Loan Facilities Due In 2027 | ||
Debt Instrument, Redemption [Line Items] | ||
January 25, 2024 | € | € 200 | |
January 25, 2025 | € | 200 | |
January 25, 2026 | € | 200 | |
January 25, 2027 | € | € 400 |
Debt - Schedule of Revolving Cr
Debt - Schedule of Revolving Credit Facilities (Details) - Dec. 31, 2022 - Revolving Credit Facility € in Millions, $ in Millions | USD ($) | EUR (€) |
Revolving Credit Facility A | ||
Debt Instrument [Line Items] | ||
Maximum amount | $ | $ 820 | |
Revolving Credit Facility B | ||
Debt Instrument [Line Items] | ||
Maximum amount | € | € 1,000 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facilities and Other Credit Facilities - Narrative (Details) € in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2022 USD ($) | Jul. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 EUR (€) | Jul. 31, 2022 EUR (€) | Jun. 30, 2022 EUR (€) | |
Line of Credit Facility [Line Items] | ||||||||
Minimum principal balance of intercompany loans securing the debt | $ 10,000,000 | |||||||
Loss on extinguishment of debt | 13,000,000 | $ 92,000,000 | $ 28,000,000 | |||||
Revolving Credit Facility A | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum amount | 755,000,000 | |||||||
Revolving Credit Facility B | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum amount | $ 1,100,000,000 | € 1,000 | ||||||
Amended Senior Facilities Agreement | Loans | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Effective interest rate (as a percent) | 3.25% | 3.25% | ||||||
Short-term borrowings | $ 21,000,000 | |||||||
Amended Senior Facilities Agreement | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Effective interest rate (as a percent) | 6.04% | 6.04% | ||||||
Commitment fees (as a percent) | 0.35% | |||||||
Utilization fees (as a percent) | 0.10% | |||||||
Minimum principal balance of intercompany loans securing the debt | $ 10,000,000 | |||||||
Margins (decrease) | (0.40%) | |||||||
Annual permitted acquisition limit (as a percent) | 10% | 10% | ||||||
Lifetime permitted acquisition limit | $ 2,250,000,000 | |||||||
Amended Senior Facilities Agreement | Revolving Credit Facility | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, term of payment in arrears | 1 month | |||||||
Utilization fees (as a percent) | 0.10% | |||||||
Maximum aggregate dividends and repurchases in each calendar year, per debt agreement terms | $ 300,000,000 | $ 400,000,000 | ||||||
Margins (decrease) | (0.25%) | |||||||
Amended Senior Facilities Agreement | Revolving Credit Facility | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, term of payment in arrears | 6 months | |||||||
Utilization fees (as a percent) | 0.60% | |||||||
Maximum aggregate dividends and repurchases in each calendar year, per debt agreement terms | $ 550,000,000 | |||||||
Margins (decrease) | (0.075%) | |||||||
Margins increase | 0.075% | |||||||
Annual permitted acquisition limit (as a percent) | 15% | 15% | ||||||
Lifetime permitted acquisition limit | $ 2,500,000,000 | |||||||
Amended Senior Facilities Agreement | Revolving Credit Facility A | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Commitment from lenders | $ 1,050,000,000 | $ 820,000,000 | ||||||
Amended Senior Facilities Agreement | Revolving Credit Facility B | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Commitment from lenders | € | € 1,000 | € 625 | ||||||
Letters of Credit Outstanding | Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Effective interest rate (as a percent) | 1.63% | |||||||
Short-term borrowings | $ 30,000,000 |
Debt - Summary of Letters of Cr
Debt - Summary of Letters of Credit Outstanding and Weighted Average Annual Cost of Letters of Credit (Details) - Letters of Credit - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Weighted Average Annual Cost (as a percent) | 1.26% | 1.08% |
Letters of Credit Outstanding | ||
Debt Instrument [Line Items] | ||
Letters of Credit Outstanding | $ 118 | $ 335 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Interest expense | $ 302 | $ 354 | $ 413 |
Interest income | (13) | (13) | (15) |
Interest expense, net | 289 | 341 | 398 |
Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Interest expense | 249 | 292 | 344 |
Term Loan Facilities | |||
Debt Instrument [Line Items] | |||
Interest expense | 24 | 30 | 37 |
Revolving Credit Facilities | |||
Debt Instrument [Line Items] | |||
Interest expense | 21 | 29 | 31 |
Other | |||
Debt Instrument [Line Items] | |||
Interest expense | $ 8 | $ 4 | $ 1 |
Other Liabilities - Current Lia
Other Liabilities - Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other current liabilities | ||
Employee compensation | $ 173,000 | $ 171,000 |
Current financial liabilities | 145,000 | 61,000 |
Contract liabilities | 91,000 | 104,000 |
Accrued interest payable | 85,000 | 100,000 |
Accrued expenses | 75,000 | 75,000 |
Taxes other than income taxes | 68,000 | 72,000 |
Jackpot liabilities | 57,000 | 66,000 |
Royalties payable | 38,000 | 14,000 |
Operating lease liabilities | 37,000 | 39,000 |
Income taxes payable | 32,000 | 104,000 |
Other | 36,000 | 21,000 |
Total other current liabilities | $ 837,000 | $ 828,000 |
Other Liabilities - Non-Current
Other Liabilities - Non-Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other non-current liabilities | ||
Jackpot liabilities | $ 114,000 | $ 130,000 |
Royalties payable | 61,000 | 13,000 |
Contract liabilities | 49,000 | 47,000 |
Reserves for uncertain tax positions | 52,000 | 47,000 |
Finance lease liabilities | 22,000 | 27,000 |
Other | 75,000 | 59,000 |
Total other non-current liabilities | $ 372,000 | $ 323,000 |
Other Non-Operating Expense, _3
Other Non-Operating Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |||
Gain on sale of business | $ (278) | $ 0 | $ 0 |
DDI / Benson Matter provision | 270 | 0 | 0 |
Loss on extinguishment of debt | 13 | 92 | 28 |
Other expense, net | 2 | 6 | 5 |
Total other non-operating expense, net | $ 7 | $ 98 | $ 33 |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) before the Provision for Income Taxes by Jurisdiction (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||
Income (loss) from continuing operations before provision for income taxes | $ 589 | $ 529 | $ (848) |
United Kingdom | |||
Income Tax Contingency [Line Items] | |||
United Kingdom | 40 | 40 | (355) |
United States | |||
Income Tax Contingency [Line Items] | |||
Foreign | (179) | (20) | (776) |
Italy | |||
Income Tax Contingency [Line Items] | |||
Foreign | 612 | 438 | 229 |
Other | |||
Income Tax Contingency [Line Items] | |||
Foreign | $ 116 | $ 70 | $ 55 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Total Current | $ 252 | $ 236 | $ 106 |
Deferred: | |||
Total Deferred | (77) | 38 | (78) |
Provision for income taxes | 175 | 274 | 28 |
United Kingdom | |||
Current: | |||
Domestic | 3 | 0 | (1) |
United States | |||
Current: | |||
Foreign | 75 | 41 | 10 |
Deferred: | |||
Foreign | (66) | 76 | (62) |
Italy | |||
Current: | |||
Foreign | 116 | 155 | 66 |
Deferred: | |||
Foreign | 0 | (22) | (1) |
Other | |||
Current: | |||
Foreign | 57 | 40 | 31 |
Deferred: | |||
Foreign | $ (11) | $ (16) | $ (16) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) € in Millions, $ in Millions, $ in Millions | 12 Months Ended | 29 Months Ended | ||||||
Feb. 09, 2022 | Dec. 09, 2021 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2006 MXN ($) | Oct. 31, 2019 issue | Dec. 31, 2022 MXN ($) | |
Income Tax [Line Items] | ||||||||
Income taxes paid (net of refunds) | $ 335 | $ 188 | $ 89 | |||||
Undistributed profits of subsidiaries | 600 | |||||||
Foreign withholding tax on undistributed earnings | 37 | |||||||
Gross tax operating loss carryforwards | 910,000 | |||||||
Net operating loss carryforward, valuation allowance | 854 | |||||||
Unrecognized tax benefits that, if recognized, would impact effective tax rates | 27 | 27 | $ 27 | |||||
Accrued interest on unrecognized tax benefits as of end of year | 25 | $ 21 | ||||||
Number of unsuccessfully contested issues | issue | 2 | |||||||
Income tax examination, voluntary settlement extension period | 90 days | |||||||
Foreign Tax Authority | ||||||||
Income Tax [Line Items] | ||||||||
Gross tax operating loss carryforwards | 289 | |||||||
State | ||||||||
Income Tax [Line Items] | ||||||||
Gross tax operating loss carryforwards | 7 | |||||||
United Kingdom | Domestic Tax Authority | ||||||||
Income Tax [Line Items] | ||||||||
Gross tax operating loss carryforwards | 621 | |||||||
Mexico | ||||||||
Income Tax [Line Items] | ||||||||
Alleged taxes, penalties and adjustments | $ 425 | |||||||
Income tax examination, liability from settlement | $ 27 | $ 520 | ||||||
Italy | Tax Years 2014 through 2015 | ||||||||
Income Tax [Line Items] | ||||||||
Alleged taxes, penalties and adjustments | € | € 15 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Provision for Income Taxes, With the Amount Computed by Applying United Kingdom Statutory Main Corporation Tax Rates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) from continuing operations before provision for income taxes | $ 589 | $ 529 | $ (848) |
United Kingdom statutory tax rate (as a percent) | 19% | 19% | 19% |
Statutory tax expense (benefit) | $ 112 | $ 100 | $ (161) |
Change in valuation allowances | 22 | 125 | 128 |
Italy regional tax (“IRAP”) and state taxes | 33 | 41 | 9 |
Non-deductible expenses | 17 | 25 | 2 |
Base erosion and anti-abuse (“BEAT”) tax | 0 | 17 | 13 |
Foreign tax and statutory rate differential | 42 | 17 | (14) |
Foreign tax expense, net of U.S. federal benefit | 18 | 11 | 10 |
Provision to return adjustment | (9) | 6 | 0 |
GILTI tax | 9 | 5 | 3 |
Non-deductible goodwill impairment | 0 | 0 | 56 |
Non-taxable gain on sale of business | (79) | 0 | 0 |
Non-taxable foreign exchange loss (gain) | 2 | (11) | 0 |
Italian patent box tax benefit | 0 | (27) | 0 |
Tax law changes | 6 | (38) | (20) |
Other | 2 | 2 | 2 |
Provision for income taxes | $ 175 | $ 274 | $ 28 |
Effective tax rate (as a percent) | 29.70% | 51.80% | (3.30%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities, and Net Deferred Income Taxes Recorded in the Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||||
Net operating losses | $ 238 | $ 286 | ||
Section 163(j) interest limitation | 200 | 190 | ||
Italian goodwill tax step-up | 109 | 119 | ||
Provisions not currently deductible for tax purposes | 150 | 85 | ||
Lease liabilities | 63 | 66 | ||
Jackpot timing differences | 30 | 30 | ||
Depreciation and amortization | 63 | 29 | ||
Inventory reserves | 5 | 10 | ||
Other | 73 | 63 | ||
Gross deferred tax assets | 930 | 878 | ||
Valuation allowance | (430) | (412) | $ (284) | $ (156) |
Deferred tax assets, net of valuation allowance | 500 | 466 | ||
Deferred tax liabilities: | ||||
Acquired intangible assets | 446 | 462 | ||
Depreciation and amortization | 156 | 163 | ||
Italian goodwill equity reserve liability | 99 | 105 | ||
Lease right-of-use assets | 57 | 60 | ||
Other | 8 | 6 | ||
Total deferred tax liabilities | 767 | 795 | ||
Net deferred income tax liability | (267) | (329) | ||
Deferred income taxes - non-current asset | 38 | 39 | ||
Deferred income taxes - non-current liability | $ (305) | $ (368) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of the Beginning and Ending Amount of Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 412 | $ 284 | $ 156 |
Net charges to expense | 22 | 86 | 120 |
Tax rate change | 0 | 39 | 8 |
Provision to return adjustment | (3) | 3 | 0 |
Balance at end of year | $ 430 | $ 412 | $ 284 |
Income Taxes - Reconciliation_3
Income Taxes - Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 27 | $ 27 | $ 29 |
Additions to tax positions - current year | 1 | 1 | 0 |
Reductions to tax positions - prior years | 0 | (1) | (2) |
Lapses in statutes of limitations | 0 | 0 | (1) |
Balance at end of year | $ 27 | $ 27 | $ 27 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Jackpot Liabilities Recorded as Current and Non-current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Current liabilities | $ 57 | $ 66 |
Non-current liabilities | 114 | $ 130 |
Total jackpot liabilities | $ 170 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Jackpot Payments (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Previous Winners | |
Loss Contingencies [Line Items] | |
2023 | $ 22 |
2024 | 18 |
2025 | 15 |
2026 | 13 |
2027 | 11 |
Thereafter | 66 |
Future jackpot payments due | 146 |
Future Winners | |
Loss Contingencies [Line Items] | |
2023 | 35 |
2024 | 5 |
2025 | 1 |
2026 | 1 |
2027 | 1 |
Thereafter | 11 |
Future jackpot payments due | 52 |
Total | |
Loss Contingencies [Line Items] | |
2023 | 57 |
2024 | 23 |
2025 | 16 |
2026 | 14 |
2027 | 12 |
Thereafter | 77 |
Future jackpot payments due | 198 |
Unamortized discounts | (27) |
Total jackpot liabilities | $ 170 |
Commitments and Contingencies_3
Commitments and Contingencies - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||
Feb. 28, 2023 motion | Aug. 29, 2022 USD ($) | Feb. 25, 2022 motion | Feb. 03, 2022 motion | Oct. 29, 2021 motion | Mar. 26, 2021 motion | Oct. 20, 2016 USD ($) | Sep. 07, 2016 USD ($) | Jun. 10, 2016 USD ($) | Dec. 09, 2014 USD ($) plaintiff | Nov. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) symbol prize_box_amount_multiplier lawsuit | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Loss Contingencies [Line Items] | ||||||||||||||
Provisions for litigation matters | $ 225,000,000 | |||||||||||||
DDI / Benson Matter provision | $ 50,000,000 | (50,000,000) | $ 0 | $ 0 | ||||||||||
DDI / Benson Matter provision | $ 220,000,000 | 0 | ||||||||||||
Number of times the prize to be received | prize_box_amount_multiplier | 5 | |||||||||||||
Number of symbols in a pattern revealed to obtain prize | symbol | 3 | |||||||||||||
Adrienne Benson and Mary Simonson | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Litigation settlement, expense | $ 415,000,000 | |||||||||||||
Nonoperating expense | $ 270,000,000 | |||||||||||||
Adrienne Benson and Mary Simonson | Company Subsidiaries | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Litigation settlement, expense | 270,000,000 | |||||||||||||
Adrienne Benson and Mary Simonson | Double Down Interactive | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Litigation settlement, expense | $ 145,000,000 | |||||||||||||
Texas Fun 5’s Instant Ticket Game | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Number of lawsuits | lawsuit | 4 | |||||||||||||
Steele, et al. v. GTECH Corporation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Number of individuals claiming damages | plaintiff | 1,200 | |||||||||||||
Number of motions | motion | 2 | 2 | 2 | |||||||||||
Number of denied motions | motion | 1 | |||||||||||||
Steele, et al. v. GTECH Corporation | Subsequent event | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Number of motions | motion | 3 | |||||||||||||
Steele, et al. v. GTECH Corporation | Minimum | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Damages claimed | $ 600,000,000 | |||||||||||||
Guerra v. GTECH Corporation | Minimum | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Damages claimed | $ 500,000 | |||||||||||||
Wiggins v. IGT Global Solutions Corp. | Minimum | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Damages claimed | $ 1,000,000 | |||||||||||||
Campos et al. v. GTECH Corporation | Minimum | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Damages claimed | $ 1,000,000 | |||||||||||||
Performance Bonds | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Term of bonds | 1 year | |||||||||||||
Performance bonds, liability | $ 0 | $ 0 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Nov. 15, 2021 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Common stock authorized for additional issue (in shares) | 135,600,000 | |||||||||
Common stock authorized for additional issue that can be issued in connection with an offer by way of rights issue (in shares) | 67,800,000 | |||||||||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | ||||||
Stock repurchase program, authorized amount | $ 300 | |||||||||
Stock repurchase program, period in force | 4 years | |||||||||
Number of shares authorized to be repurchased (in shares) | 20,338,793 | 20,338,793 | ||||||||
Repurchases of common stock (in shares) | 5,373,196 | 1,500,000 | 0 | |||||||
Repurchases of common stock | $ 114 | |||||||||
Cash dividends declared per share (in USD per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Shares of Common Stock Outstanding (Details) - shares | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares of common stock outstanding | ||||
Beginning balance (in shares) | 199,078,909 | 203,688,118 | 204,856,564 | 204,435,333 |
Shares issued under restricted stock award plans (in shares) | 702,273 | 331,554 | 421,231 | |
Shares issued upon exercise of stock options (in shares) | 61,714 | 0 | 0 | |
Repurchases of common stock (in shares) | (5,373,196) | (1,500,000) | 0 | |
Ending balance (in shares) | 199,078,909 | 203,688,118 | 204,856,564 | |
Restricted Stock Units (RSUs) | Subsequent event | ||||
Shares of common stock outstanding | ||||
Stock issued (in shares) | 605,026 |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | $ 1,971,000 | $ 1,561,000 | $ 2,485,000 |
Change during period | 57,000 | 11,000 | 127,000 |
Reclassified to operations | 34,000 | 20,000 | (1,000) |
Tax effect | 0 | ||
Other comprehensive income (loss), net of tax | 91,000 | 30,000 | 127,000 |
Balance, end of period | 1,979,000 | 1,971,000 | 1,561,000 |
Foreign Currency Translation | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 387,000 | 358,000 | 231,000 |
Change during period | 55,000 | 9,000 | 128,000 |
Reclassified to operations | 36,000 | 19,000 | (1,000) |
Tax effect | 0 | ||
Other comprehensive income (loss), net of tax | 90,000 | 28,000 | 128,000 |
Balance, end of period | 477,000 | 387,000 | 358,000 |
Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (6,000) | (9,000) | (8,000) |
Change during period | 2,000 | 3,000 | (1,000) |
Reclassified to operations | (3,000) | 1,000 | 0 |
Tax effect | (1,000) | ||
Other comprehensive income (loss), net of tax | (1,000) | 3,000 | (1,000) |
Balance, end of period | (7,000) | (6,000) | (9,000) |
Other | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 3,000 | 4,000 | 4,000 |
Change during period | 1,000 | (1,000) | 0 |
Reclassified to operations | 0 | 0 | 0 |
Tax effect | 0 | ||
Other comprehensive income (loss), net of tax | 1,000 | (1,000) | 0 |
Balance, end of period | 4,000 | 3,000 | 4,000 |
AOCI Including Portion Attributable to Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 384,000 | 353,000 | 227,000 |
Balance, end of period | 474,000 | 384,000 | 353,000 |
Attributable to non-controlling interests | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 28,000 | (24,000) | 36,000 |
Change during period | 27,000 | 51,000 | (59,000) |
Reclassified to operations | 0 | 1,000 | 0 |
Tax effect | 0 | ||
Other comprehensive income (loss), net of tax | 27,000 | 52,000 | (59,000) |
Balance, end of period | 55,000 | 28,000 | (24,000) |
Attributable to IGT PLC | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 412,000 | 330,000 | 263,000 |
Change during period | 84,000 | 62,000 | 68,000 |
Reclassified to operations | 34,000 | 21,000 | (1,000) |
Tax effect | 0 | ||
Other comprehensive income (loss), net of tax | 117,000 | 82,000 | 67,000 |
Balance, end of period | $ 529,000 | $ 412,000 | $ 330,000 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Ownership (Details) | Dec. 31, 2022 |
Lottoitalia S.r.l. | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 61.50% |
Lotterie Nazionali S.r.l. (LN) | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 64% |
Northstar New Jersey Lottery Group, LLC (Northstar NJ) | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 76.64% |
Northstar New Jersey Lottery Group, LLC (Northstar NJ) | New Jersey Holding Company LLC | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 76.64% |
New Jersey Holding Company LLC | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 71.12% |
Variable Interest Entities - _2
Variable Interest Entities - Summary of VIE's assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 2,131 | $ 2,487 |
Non-current assets | 8,302 | 8,836 |
Total assets | 10,433 | 11,322 |
Total liabilities | 8,454 | 9,351 |
VIE, primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Current assets | 941 | 1,124 |
Non-current assets | 936 | 1,217 |
Total assets | 1,877 | 2,341 |
Total liabilities | $ 521 | $ 615 |
Segment Information - Narrative
Segment Information - Narrative (Details) - segment | 6 Months Ended | 12 Months Ended | 14 Months Ended | 16 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 31, 2021 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||||||
Number of business segments | 3 | 2 | ||||
Segment Reorganization | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of business segments | 3 | |||||
ADM | Customer Concentration Risk | Revenue | ||||||
Segment Reporting Information [Line Items] | ||||||
Percentage of exclusive and non-exclusive concession revenue | 18% | 23% | 19% |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 4,225 | $ 4,089 | $ 3,115 |
Operating income (loss) | 922 | 902 | (107) |
Depreciation and amortization | 492 | 526 | 566 |
Expenditures for long-lived assets | (293) | (208) | (226) |
Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,593 | 2,812 | 2,164 |
Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,423 | 1,112 | 837 |
PlayDigital | |||
Segment Reporting Information [Line Items] | |||
Revenue | 209 | 165 | 115 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 4,225 | 4,089 | 3,115 |
Operating income (loss) | 1,201 | 1,164 | 436 |
Depreciation and amortization | 333 | 366 | 392 |
Expenditures for long-lived assets | (287) | (203) | (224) |
Operating Segments | Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,593 | 2,812 | 2,164 |
Operating income (loss) | 909 | 1,088 | 642 |
Depreciation and amortization | 196 | 225 | 231 |
Expenditures for long-lived assets | (141) | (123) | (149) |
Operating Segments | Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,423 | 1,112 | 837 |
Operating income (loss) | 242 | 43 | (212) |
Depreciation and amortization | 119 | 126 | 146 |
Expenditures for long-lived assets | (140) | (67) | (64) |
Operating Segments | PlayDigital | |||
Segment Reporting Information [Line Items] | |||
Revenue | 209 | 165 | 115 |
Operating income (loss) | 50 | 33 | 6 |
Depreciation and amortization | 17 | 15 | 15 |
Expenditures for long-lived assets | (6) | (13) | (11) |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 0 | 0 |
Operating income (loss) | (279) | (262) | (544) |
Depreciation and amortization | 160 | 160 | 175 |
Expenditures for long-lived assets | (6) | (6) | (2) |
Service | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,359 | 3,483 | 2,640 |
Service | Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,436 | 2,690 | 2,043 |
Service | Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | 714 | 630 | 483 |
Service | PlayDigital | |||
Segment Reporting Information [Line Items] | |||
Revenue | 209 | 163 | 114 |
Service | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,359 | 3,483 | 2,640 |
Service | Operating Segments | Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,436 | 2,690 | 2,043 |
Service | Operating Segments | Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | 714 | 630 | 483 |
Service | Operating Segments | PlayDigital | |||
Segment Reporting Information [Line Items] | |||
Revenue | 209 | 163 | 114 |
Service | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 0 | 0 |
Product | |||
Segment Reporting Information [Line Items] | |||
Revenue | 866 | 606 | 476 |
Product | Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 157 | 123 | 121 |
Product | Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | 709 | 482 | 354 |
Product | PlayDigital | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1 | 1 | 1 |
Product | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 866 | 606 | 476 |
Product | Operating Segments | Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 157 | 123 | 121 |
Product | Operating Segments | Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | 709 | 482 | 354 |
Product | Operating Segments | PlayDigital | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1 | 1 | 1 |
Product | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 0 | $ 0 | $ 0 |
Segment Information - Schedul_2
Segment Information - Schedule of Revenue from External Customers Based on Geographical Location (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 4,225 | $ 4,089 | $ 3,115 |
United States | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 2,355 | 2,126 | 1,666 |
Italy | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 1,062 | 1,307 | 896 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 67 | 72 | 64 |
Rest of Europe | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 254 | 217 | 209 |
All other | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 488 | $ 368 | $ 280 |
Segment Information - Schedul_3
Segment Information - Schedule of Long-Lived Assets Based on Geographical Location (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 1,016 | $ 1,056 |
United States | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 775 | 766 |
Italy | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 79 | 125 |
United Kingdom | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 6 | 9 |
Rest of Europe | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 92 | 93 |
All other | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 63 | $ 63 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock-Based Compensation | |||
Options granted (in shares) | 0 | 0 | |
Weighted average grant date fair value of stock options granted (in dollars per share) | $ 9.82 | ||
2015 Equity Incentive Plan | |||
Stock-Based Compensation | |||
Maximum number of shares that may be granted under the Plan (in shares) | 20,500,000 | ||
Stock options | |||
Stock-Based Compensation | |||
Contractual term (in years) | 7 years | ||
Performance share units (PSUs) | |||
Stock-Based Compensation | |||
Total vest-date fair value of stock awards vested (in dollars) | $ 0 | $ 3 | $ 3 |
Performance share units (PSUs) | Tranche one | |||
Stock-Based Compensation | |||
Vesting percentage (as a percent) | 50% | ||
Vesting period (in years) | 3 years | ||
Performance share units (PSUs) | Tranche two | |||
Stock-Based Compensation | |||
Vesting percentage (as a percent) | 50% | ||
Vesting period (in years) | 4 years | ||
Performance share units (PSUs) | Tranche three | |||
Stock-Based Compensation | |||
Vesting percentage (as a percent) | 50% | ||
Vesting period (in years) | 2 years | ||
Performance share units (PSUs) | Tranche four | |||
Stock-Based Compensation | |||
Vesting percentage (as a percent) | 50% | ||
Vesting period (in years) | 3 years | ||
Restricted Stock Units (RSUs) | |||
Stock-Based Compensation | |||
Total vest-date fair value of stock awards vested (in dollars) | $ 23 | $ 33 | $ 1 |
Restricted Stock Units (RSUs) | Director | |||
Stock-Based Compensation | |||
Contractual term (in years) | 10 years | ||
Vesting period (in years) | 1 year | ||
Synthetic Equity Awards | |||
Stock-Based Compensation | |||
Unrecognized compensation expense | $ 6 | ||
Weighted-average period, compensation expense recognized (in years) | 3 years 3 months 18 days | ||
Minimum | Restricted Stock Units (RSUs) | |||
Stock-Based Compensation | |||
Vesting period (in years) | 1 year | ||
Maximum | Restricted Stock Units (RSUs) | |||
Stock-Based Compensation | |||
Vesting period (in years) | 2 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity and Related Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | |
Stock Options | |||
Beginning balance (in shares) | 422,500 | ||
Granted (in shares) | 0 | 0 | |
Forfeited (in shares) | 0 | ||
Exercised (in shares) | (250,000) | ||
Ending balance (in shares) | 172,500 | ||
Vested and expected to vest (in shares) | 172,500 | ||
Exercisable (in shares) | 0 | 0 | 0 |
Weighted Average Exercise Price Per Share | |||
Beginning balance (in dollars per share) | $ 17.51 | ||
Granted (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 15.53 | ||
Ending balance (in dollars per share) | 20.37 | ||
Vested and expected to vest (in dollars per share) | 20.37 | ||
Exercisable (in dollars per share) | $ 0 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding at end of period | 5 years 4 months 9 days | ||
Vested and expected to vest | 5 years 4 months 9 days | ||
Aggregate Intrinsic Value | |||
Vested and expected to vest | $ 0 | ||
Exercisable | 0 | ||
Intrinsic value of stock options exercised | $ 3 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Key Inputs and Assumptions in Stock Option Valuation Models (Details) - Stock options | 12 Months Ended |
Dec. 31, 2021 $ / shares | |
Stock-Based Compensation | |
Exercise price (in dollars per share) | $ 20.37 |
Expected option term (in years) | 2 years |
Expected volatility of the Company's stock (as a percent) | 60% |
Risk-free interest rate (as a percent) | 0.80% |
Dividend yield (as a percent) | 0% |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Award Activity and Related Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock awards, related information | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 20.37 | $ 17.51 | |
Granted (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | $ 0 | ||
Performance share units (PSUs) | |||
Stock Award Activity | |||
Beginning balance (in shares) | 5,300,825 | ||
Granted (in shares) | 1,714,667 | 3,740,075 | 0 |
Vested (in shares) | 0 | ||
Forfeited (in shares) | (1,734,548) | ||
Ending balance (in shares) | 5,280,944 | 5,300,825 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 21.50 | ||
Granted (in dollars per share) | 25.37 | $ 26.10 | $ 0 |
Vested (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 12.08 | ||
Ending balance (in dollars per share) | $ 25.85 | $ 21.50 | |
Stock awards, related information | |||
Unrecognized cost for nonvested awards (in dollars) | $ 64 | ||
Weighted average future recognition period (in years) | 2 years 3 months 7 days | ||
Restricted Stock Units (RSUs) | |||
Stock Award Activity | |||
Beginning balance (in shares) | 1,059,472 | ||
Granted (in shares) | 95,357 | 79,844 | 2,375,141 |
Vested (in shares) | (1,034,846) | ||
Forfeited (in shares) | (29,302) | ||
Ending balance (in shares) | 90,681 | 1,059,472 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 10.05 | ||
Granted (in dollars per share) | 20.46 | $ 22.29 | $ 9.04 |
Vested (in dollars per share) | 10.16 | ||
Forfeited (in dollars per share) | 9.08 | ||
Ending balance (in dollars per share) | $ 20.07 | $ 10.05 | |
Stock awards, related information | |||
Unrecognized cost for nonvested awards (in dollars) | $ 0 | ||
Weighted average future recognition period (in years) | 4 months 6 days |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Fair Value of Stock Awards Granted Including Weighted Average Grant Date Fair Value (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Performance share units (PSUs) | |||
Stock-Based Compensation | |||
Granted (in shares) | 1,714,667 | 3,740,075 | 0 |
Granted (in dollars per share) | $ 25.37 | $ 26.10 | $ 0 |
Restricted Stock Units (RSUs) | |||
Stock-Based Compensation | |||
Granted (in shares) | 95,357 | 79,844 | 2,375,141 |
Granted (in dollars per share) | $ 20.46 | $ 22.29 | $ 9.04 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | $ 41 | $ 35 | $ (7) |
Income tax benefit (provision) | 10 | 8 | (2) |
Total stock-based compensation, net of tax | 31 | 27 | (5) |
Cost of services | |||
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | 2 | 2 | (1) |
Selling, general and administrative | |||
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | 37 | 30 | (4) |
Research and development | |||
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | $ 2 | $ 3 | $ (1) |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net income (loss) from continuing operations attributable to IGT PLC | $ 275 | $ 65 | $ (939) |
Income from discontinued operations attributable to IGT PLC | 0 | 417 | 41 |
Net income (loss) attributable to IGT PLC | $ 275 | $ 482 | $ (898) |
Denominator: | |||
Weighted average shares, basic (in shares) | 201,825 | 204,954 | 204,725 |
Incremental shares under stock based compensation plans (in shares) | 1,589 | 1,841 | 0 |
Weighted average shares, diluted (in shares) | 203,414 | 206,795 | 204,725 |
Net income (loss) from continuing operations attributable to IGT PLC per common share - basic (in dollars per share) | $ 1.36 | $ 0.32 | $ (4.59) |
Net income (loss) from continuing operations attributable to IGT PLC per common share - diluted (in dollars per share) | 1.35 | 0.31 | (4.59) |
Net income from discontinued operations attributable to IGT PLC per common share - basic (in dollars per share) | 0 | 2.03 | 0.20 |
Net income from discontinued operations attributable to IGT PLC per common share - diluted (in dollars per share) | 0 | 2.02 | 0.20 |
Net income (loss) attributable to IGT PLC per common share - basic (in dollars per share) | 1.36 | 2.35 | (4.39) |
Net income (loss) attributable to IGT PLC per common share - diluted (in dollars per share) | $ 1.35 | $ 2.33 | $ (4.39) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Stock options and unvested awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities not included in the computation of diluted earnings per share (in shares) | 0 | 1 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Amounts Receivable from and Payable to Related Parties (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Trade receivables | $ 2,000 | $ 0 |
Majority Shareholder | ||
Related Party Transaction [Line Items] | ||
Tax-related receivables | 0 | 4,000 |
Trade payables | 1,000 | 1,000 |
Tax-related payables | $ 3,000 | $ 3,000 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Millions | 12 Months Ended | |||
Mar. 09, 2022 | Dec. 31, 2022 USD ($) venture_capital_fund | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Related Party Transaction [Line Items] | ||||
Number of investments in venture capital funds | venture_capital_fund | 2 | |||
De Agostini S.p.A. | ||||
Related Party Transaction [Line Items] | ||||
Economic interest, excluding treasury shares (as a percent) | 47.40% | |||
Voting interest, excluding treasury shares (as a percent) | 63.20% | |||
Son of director | Drago Synthetic Equity Awards | ||||
Related Party Transaction [Line Items] | ||||
Unrecognized compensation expense | $ 4 | |||
Weighted-average period, compensation expense recognized (in years) | 3 years 6 months | |||
Son of director | Drago Synthetic Equity Awards | Tranche one | ||||
Related Party Transaction [Line Items] | ||||
Vesting percentage (as a percent) | 35% | |||
Son of director | Drago Synthetic Equity Awards | Tranche two | ||||
Related Party Transaction [Line Items] | ||||
Vesting percentage (as a percent) | 25% | |||
Son of director | Drago Synthetic Equity Awards | Tranche three | ||||
Related Party Transaction [Line Items] | ||||
Vesting percentage (as a percent) | 40% | |||
Son of director | Stock Appreciation Rights (SARs) | ||||
Related Party Transaction [Line Items] | ||||
Vesting percentage (as a percent) | 1.275% | |||
Son of director | Restricted Stock Units (RSUs) | ||||
Related Party Transaction [Line Items] | ||||
Vesting percentage (as a percent) | 0.225% | |||
Ringmaster S.r.l. | Joint venture | ||||
Related Party Transaction [Line Items] | ||||
Equity method ownership interest (as a percent) | 50% | |||
Investments | $ 1 | |||
Expenses | $ 9 | $ 6 | $ 7 | |
Connect Ventures One LP | Son of director | ||||
Related Party Transaction [Line Items] | ||||
Ownership interest accounted for at fair value (as a percent) | 10% | |||
Connect Ventures One LP | Entity with common director or management figure | ||||
Related Party Transaction [Line Items] | ||||
Amount of investment | $ 3 | |||
Connect Ventures Two LP | Entity with common director or management figure | ||||
Related Party Transaction [Line Items] | ||||
Amount of investment | $ 5 | $ 6 |