Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 24, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38889 | ||
Entity Registrant Name | SciPlay Corporation | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 83-2692460 | ||
Entity Address, Address Line One | 6601 Bermuda Road | ||
Entity Address, City or Town | Las Vegas | ||
Entity Address, State or Province | NV | ||
Entity Address, Postal Zip Code | 89119 | ||
City Area Code | 702 | ||
Local Phone Number | 897-7150 | ||
Title of 12(b) Security | Class A Common Stock, $.001 par value | ||
Trading Symbol | SCPL | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 403,591,212 | ||
Documents Incorporated by Reference | Portions of the registrant’s proxy statement relating to the 2022 annual meeting of stockholders are incorporated by reference in Part III. The proxy statement will be filed with the Securities and Exchange Commission no later than 120 days after the conclusion of the registrant’s fiscal year ended December 31, 2021. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001760717 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Class A common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 24,561,301 | ||
Class B common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 103,547,021 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Las Vegas, Nevada |
Auditor Firm ID | 34 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income Statement [Abstract] | ||||
Revenue | $ 606.1 | $ 582.2 | $ 465.8 | |
Operating expenses: | ||||
Cost of revenue | [1] | 190 | 185.3 | 158.5 |
Sales and marketing | [1] | 135.3 | 130.7 | 129.7 |
General and administrative | [1] | 62.4 | 66.2 | 40.6 |
Research and development( | [1] | 39.7 | 33.3 | 23.6 |
Depreciation and amortization | 15.5 | 9.7 | 7 | |
Restructuring and other | [2] | 31.5 | 2 | 2.7 |
Operating income | 131.7 | 155 | 103.7 | |
Other expense: | ||||
Other expense, net | (1) | (0.6) | (1.5) | |
Total other expense, net | (1) | (0.6) | (1.5) | |
Net income before income taxes | 130.7 | 154.4 | 102.2 | |
Income tax expense | 5.7 | 8.4 | 8.7 | |
Net income | 125 | 146 | 93.5 | |
Less: Net income attributable to the noncontrolling interest | 105.7 | 125.1 | 61.1 | |
Net income attributable to SciPlay | $ 19.3 | $ 20.9 | $ 32.4 | |
Basic and diluted net income attributable to SciPlay per share | ||||
Basic (in dollars per share) | [3] | $ 0.80 | $ 0.92 | $ 0.53 |
Diluted (in dollars per share) | [3] | $ 0.77 | $ 0.86 | $ 0.53 |
Weighted average number of shares of Class A common stock used in per share calculation: | ||||
Basic shares | 24.2 | 22.8 | 22.7 | |
Diluted shares | 25 | 24.4 | 22.7 | |
[1] | (1) Excludes depreciation and amortization. | |||
[2] | (2) Includes $24.5 million legal settlement charge (see Note 11). | |||
[3] | (3) Basic and diluted EPS is calculated including only net income attributable to SciPlay generated from May 7, 2019, the period following our IPO in which we had outstanding Class A common stock. See Note 1 — Description of the Business and Summary of Significant Accounting Policies for further information regarding SciPlay Corporation’s IPO. See Note 8 — Earnings Per Share for further details regarding the computation of earnings per share. |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Millions | Nov. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Statement [Abstract] | ||||
Lawsuit settlement | $ 24.5 | $ 24.5 | $ 0 | $ 0 |
Less: Net income attributable to the noncontrolling interest | 105.7 | 125.1 | 61.1 | |
Net income | $ 19.3 | $ 20.9 | $ 32.4 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 125 | $ 146 | $ 93.5 |
Other comprehensive income: | |||
Foreign currency translation gain, net of tax | 1.2 | 3.1 | 3.4 |
Total comprehensive income | 126.2 | 149.1 | 96.9 |
Less: comprehensive income attributable to the noncontrolling interest | 106.7 | 127.6 | 62.4 |
Comprehensive income attributable to SciPlay | $ 19.5 | $ 21.5 | $ 34.5 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 364.4 | $ 268.9 |
Accounts receivable, net (allowance for doubtful accounts of $—) | 39.6 | 36.6 |
Prepaid expenses and other current assets | 6.4 | 5.9 |
Total current assets | 410.4 | 311.4 |
Non-current assets: | ||
Property and equipment, net | 3.5 | 4.4 |
Operating lease right-of-use assets | 6.8 | 8.5 |
Goodwill | 131.1 | 129.8 |
Intangible assets and software, net | 49.6 | 30.3 |
Deferred income taxes | 78.5 | 82.5 |
Other assets | 1.7 | 1.9 |
Total assets | 681.6 | 568.8 |
Current liabilities: | ||
Accounts payable | 20 | 23.2 |
Accrued liabilities | 50.2 | 22.9 |
Due to affiliate | 1.6 | 5.5 |
Total current liabilities | 71.8 | 51.6 |
Operating lease liabilities | 5.4 | 7.5 |
Liabilities under the TRA | 64.7 | 68.5 |
Other long‑term liabilities | 14.7 | 5.7 |
Total liabilities | 156.6 | 133.3 |
Commitments and contingencies (see Note 11) | ||
Stockholders’ equity: | ||
Additional paid-in capital | 45.2 | 46.1 |
Retained earnings | 52.2 | 32.9 |
Accumulated other comprehensive income | 1.1 | 0.9 |
Total SciPlay stockholders’ equity | 98.6 | 80 |
Noncontrolling interest | 426.4 | 355.5 |
Total stockholders’ equity | 525 | 435.5 |
Total liabilities and stockholders’ equity | 681.6 | 568.8 |
Class A common stock, par value $0.001 per share, 625.0 shares authorized, 24.5 and 22.8 shares issued and outstanding as of December 31, 2021 and 2020, respectively | ||
Stockholders’ equity: | ||
Common stock | $ 0 | $ 0 |
Common stock, outstanding (in shares) | 24.5 | 22.8 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Class B common stock, par value $0.001 per share, 130.0 shares authorized, 103.5 and 103.5 shares issued and outstanding as of December 31, 2021 and 2020, respectively | ||
Stockholders’ equity: | ||
Common stock | $ 0.1 | $ 0.1 |
Common stock, outstanding (in shares) | 103.5 | 103.5 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Allowance for doubtful accounts | $ 0 | $ 0 |
Class A common stock, par value $0.001 per share, 625.0 shares authorized, 24.5 and 22.8 shares issued and outstanding as of December 31, 2021 and 2020, respectively | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 625 | 625 |
Common stock, issued (in shares) | 24.5 | 22.8 |
Common stock, outstanding (in shares) | 24.5 | 22.8 |
Class B common stock, par value $0.001 per share, 130.0 shares authorized, 103.5 and 103.5 shares issued and outstanding as of December 31, 2021 and 2020, respectively | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 130 | 130 |
Common stock, issued (in shares) | 103.5 | 103.5 |
Common stock, outstanding (in shares) | 103.5 | 103.5 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY/ACCUMULATED NET PARENT INVESTMENT - USD ($) shares in Millions, $ in Millions | Total | Accumulated net parent investment | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Noncontrolling interest | Class A common stock | Class A common stockCommon Stock | Class A common stockAdditional paid-in capital | Class A common stockNoncontrolling interest | Class B common stock | Class B common stockCommon Stock |
Stockholders' equity, beginning balance at Dec. 31, 2018 | $ 138.6 | $ 140.8 | $ 0 | $ 0 | $ (2.2) | $ 0 | $ 0 | $ 0 | ||||
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2018 | 0 | 0 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 20.4 | 20.4 | ||||||||||
Transactions with Parent and affiliates, net | 9.2 | 9.2 | ||||||||||
Currency translation adjustment and other | 1.9 | 1.9 | ||||||||||
Stockholders' equity, ending balance at May. 07, 2019 | 170.1 | 170.4 | 0 | 0 | (0.3) | 0 | $ 0 | $ 0 | ||||
Stockholders' equity, ending balance (in shares) at May. 07, 2019 | 0 | 0 | ||||||||||
Stockholders' equity, beginning balance at Dec. 31, 2018 | 138.6 | 140.8 | 0 | 0 | (2.2) | 0 | $ 0 | $ 0 | ||||
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2018 | 0 | 0 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 93.5 | |||||||||||
Currency translation adjustment and other | 3.4 | |||||||||||
Stockholders' equity, ending balance at Dec. 31, 2019 | 277.5 | 0 | 41.7 | 12 | 0.3 | 223.4 | $ 0 | $ 0.1 | ||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2019 | 22.7 | 103.5 | ||||||||||
Stockholders' equity, beginning balance at May. 07, 2019 | 170.1 | 170.4 | 0 | 0 | (0.3) | 0 | $ 0 | $ 0 | ||||
Stockholders' equity, beginning balance (in shares) at May. 07, 2019 | 0 | 0 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 73.1 | 12 | 61.1 | |||||||||
Issuance of common stock (in shares) | 22.7 | 103.5 | ||||||||||
Issuance of common stock | $ 332.8 | $ 59.9 | $ 272.9 | $ 0.1 | $ 0.1 | |||||||
Allocation of SGC equity to noncontrolling interests | 0 | (170.4) | 30.7 | 0.2 | 139.5 | |||||||
Distributions to Parent and affiliates, net | (311.7) | (56.1) | (255.6) | |||||||||
Net effect of tax-related organization transactions and other | 5.6 | 5.6 | ||||||||||
Stock-based compensation | 6.2 | 1.5 | 4.7 | |||||||||
Currency translation adjustment and other | 1.3 | 0.1 | 0.4 | 0.8 | ||||||||
Stockholders' equity, ending balance at Dec. 31, 2019 | 277.5 | 0 | 41.7 | 12 | 0.3 | 223.4 | $ 0 | $ 0.1 | ||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2019 | 22.7 | 103.5 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 146 | 20.9 | 125.1 | |||||||||
Distributions to Parent and affiliates, net | (12.8) | (12.8) | ||||||||||
Stock-based compensation | 22 | 4.5 | 17.5 | |||||||||
Net issuance (redemption) of common stock in connection with RSUs and other (in shares) | 0.1 | |||||||||||
Net issuance (redemption) of common stock in connection with RSUs and other | (0.3) | (0.1) | (0.2) | |||||||||
Currency translation adjustment and other | 3.1 | 0.6 | 2.5 | |||||||||
Stockholders' equity, ending balance at Dec. 31, 2020 | 435.5 | 0 | 46.1 | 32.9 | 0.9 | 355.5 | $ 0 | $ 0.1 | ||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2020 | 22.8 | 103.5 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Additional paid-in capital | 46.1 | |||||||||||
Net income | 125 | 19.3 | 105.7 | |||||||||
Distributions to Parent and affiliates, net | (30) | (30) | ||||||||||
Stock-based compensation | 6.3 | 1.5 | 4.8 | |||||||||
Net issuance (redemption) of common stock in connection with RSUs and other (in shares) | 1.7 | |||||||||||
Net issuance (redemption) of common stock in connection with RSUs and other | (13) | (2.4) | (10.6) | |||||||||
Currency translation adjustment and other | 1.2 | 0.2 | 1 | |||||||||
Stockholders' equity, ending balance at Dec. 31, 2021 | 525 | $ 0 | $ 45.2 | $ 52.2 | $ 1.1 | $ 426.4 | $ 0 | $ 0.1 | ||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2021 | 24.5 | 103.5 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Additional paid-in capital | $ 45.2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flow from operating activities: | |||
Net income | $ 125 | $ 146 | $ 93.5 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 15.5 | 9.7 | 7 |
Contingent acquisition consideration fair value adjustment | (1.5) | 0 | 1.7 |
Legal reserve | 24.5 | 0 | 0 |
Deferred income taxes | 3.6 | 4.3 | (0.5) |
Stock-based compensation | 7.2 | 22 | 8.9 |
Operating expenses paid by Parent and affiliates | 0 | 0 | 7.2 |
Payments of contingent acquisition consideration | 0 | (4) | (25.2) |
Changes in assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | (2.9) | (3.9) | (0.4) |
Prepaid expenses, other current assets and other assets | 0 | (0.8) | 1.7 |
Accrued liabilities, accounts payable and other liabilities | (4.7) | 17.2 | (3.9) |
Due to affiliate and other, net | (2.9) | 2.9 | 3 |
Net cash provided by operating activities | 163.8 | 193.4 | 93 |
Cash flows from investing activities: | |||
Capital expenditures | (9.1) | (7.1) | (8.8) |
Business acquisitions, net of cash acquired | (5.7) | (12.6) | 0 |
Net cash used in investing activities | (14.8) | (19.7) | (8.8) |
Cash flows from financing activities: | |||
Distributions to Parent and affiliates, net | (30) | (12.4) | (311.7) |
Payments of deferred offering costs | 0 | 0 | (9.3) |
Payments of contingent acquisition consideration | (1) | (0.5) | (1.8) |
Payments under tax receivable agreement | (3.8) | (2.5) | 0 |
Payments on license obligations | (5.5) | (0.3) | (2) |
Taxes paid related to net share settlement of equity awards and other | (13.3) | (0.3) | 0 |
Payments of debt issuance costs | 0 | 0 | (1.1) |
Net cash (used in) provided by financing activities | (53.6) | (16) | 15.9 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.1 | 0.6 | 0.5 |
Increase in cash, cash equivalents and restricted cash | 95.5 | 158.3 | 100.6 |
Cash, cash equivalents and restricted cash, beginning of period | 268.9 | 110.6 | 10 |
Cash, cash equivalents and restricted cash, end of period | 364.4 | 268.9 | 110.6 |
Supplemental cash flow information: | |||
Cash paid for income taxes | 4.8 | 2 | 1.5 |
Payment for Scientific Games’ intellectual property license included in Distributions to Scientific Games and affiliates, net | 0 | 0 | 255 |
Non-cash investing and financing transactions: | |||
Non-cash additions to intangible assets related to license agreements | 14.1 | 1.8 | 0 |
Class A common stock | |||
Cash flows from financing activities: | |||
Net proceeds from issuance of common stock | 0 | 0 | 341.7 |
Class B common stock | |||
Cash flows from financing activities: | |||
Net proceeds from issuance of common stock | $ 0 | $ 0 | $ 0.1 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business and Summary of Significant Accounting Policies | Description of the Business and Summary of Significant Accounting Policies Background and Nature of Operations SciPlay Corporation was formed as a Nevada corporation on November 30, 2018 as a subsidiary of Scientific Games Corporation (“Scientific Games”, “SGC”, and “the Parent”) for the purpose of completing a public offering and related transactions (collectively referred to herein as the “IPO”) in order to carry on the business of SciPlay Parent LLC and its subsidiaries (collectively referred to as “SciPlay”, the “Company”, “we”, “us”, and “our”). As the managing member of SciPlay Parent LLC, SciPlay operates and controls all of the business affairs of SciPlay Parent LLC and its subsidiaries. We develop, market and operate a portfolio of games played on various mobile and web platforms, including social casino games Jackpot Party ® Casino , Gold Fish ® Casino , Quick Hit ® Slots , 88 Fortunes ® Slots, MONOPOLY ® Slots, and Hot Shot Casino ®, and casual games Bingo Showdown ® , and Solitaire Pets ™ Adventure . We have one operating segment with one business activity, developing and monetizing social games. Initial Public Offering We completed our initial public offering of 22,720,000 shares of Class A common stock in May 2019. After giving effect to the underwriters’ partial exercise of their over-allotment option, we received $341.7 million in proceeds, net of underwriting discount, but before offering expenses of $9.3 million. In connection with the IPO, we also issued shares of Class B common stock to the SG Members on a one-to-one basis with the number of LLC Interests owned by the SG Members following the IPO. In connection with the above, we consummated a series of organizational transactions, including amending and restating our articles of incorporation to provide for Class A common stock and Class B common stock, resulting in the use of net proceeds from the IPO and the underwriters’ exercise of the over-allotment option after deducting the underwriting discount, as follows: Amount Note To acquire 20,725,319 LLC Interests from SG Social Holding Company I, LLC (1) $ 311.7 (A) To acquire 1,994,681 newly issued LLC Interests from SciPlay Parent LLC 30.0 (B) Net proceeds after deducting underwriting discount $ 341.7 (A) SG Social Holding Company I, LLC subsequently used these proceeds as follows: Acquire IP License from Parent (“Upfront License Payment”) (2) $ 255.0 Distributed as a dividend to Parent 56.7 $ 311.7 (B) SciPlay Parent LLC subsequently used the proceeds as follows: Fees and expenses incurred in connection with the IPO $ 9.3 General corporate purposes, including a portion of contingent acquisition consideration 20.7 $ 30.0 (1) An unconsolidated intermediate holding company. (2) Such rights, duties, obligations and interest under the IP License Agreement were assigned to SciPlay. Our corporate structure is commonly referred to as an “Up-C” structure, which allows the SG Members to continue to realize tax benefits associated with owning interests in an entity that is treated as a partnership, or “passthrough” entity, for U.S. income tax purposes. One of these benefits is that future taxable income of SciPlay Parent LLC that is allocated to the SG Members will be taxed on a flow-through basis and therefore will not be subject to corporate taxes at the SciPlay Parent LLC entity level. Additionally, because the SG Members may exchange or redeem their LLC Interests for newly issued shares of our Class A common stock on a one-for-one basis or, at our option, for cash, the Up-C structure also provides the SG Members with potential liquidity that holders of non-publicly traded limited liability companies are not typically afforded. We also receive the same benefits as the SG Members on account of our ownership of LLC Interests in an entity treated as a partnership, or “passthrough” entity, for U.S. income tax purposes. As the SG Members redeem or exchange their LLC Interests, we will obtain a step-up in tax basis in our share of SciPlay Parent LLC assets. This step-up in tax basis will provide us with certain tax benefits, such as future depreciation and amortization deductions that can reduce the taxable income allocable to us. The TRA provides for the payment by us to the SG Members of 85% of the amount of tax benefits, if any, that we actually realize (or in some cases are deemed to realize) as a result of (i) increases in the tax basis of assets of SciPlay Parent LLC (a) in connection with the IPO, (b) resulting from any redemptions or exchanges of LLC Interests pursuant to the Operating Agreement or (c) resulting from certain distributions (or deemed distributions) by SciPlay Parent LLC and (ii) certain other tax benefits related to our making of payments under the TRA. Variable Interest Entities (“VIE”) and Consolidation Subsequent to the IPO, our sole material asset is our member’s interest in SciPlay Parent LLC. In accordance with the Operating Agreement of SciPlay Parent LLC, we have all management powers over the business and affairs of SciPlay Parent LLC and to conduct, direct and exercise full control over the activities of SciPlay Parent LLC. Class A common stock issued in the IPO does not hold majority voting rights but holds 100% of the economic interest in the Company, which results in SciPlay Parent LLC being considered a VIE. Due to our power to control the activities most directly affecting the results of SciPlay Parent LLC, we are considered the primary beneficiary of the VIE. Accordingly, beginning with the IPO, we consolidate the financial results of SciPlay Parent LLC and its subsidiaries. Basis of Presentation The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”). SG Social Holding Company II, LLC is SciPlay’s predecessor for financial reporting purposes, and accordingly, for all periods presented prior to May 7, 2019, the financial statements represent the financial statements of the predecessor. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in our financial statements and the accompanying notes. Actual results may differ materially from our estimates. Cash and Cash Equivalents Cash and cash equivalents include all cash balances and highly liquid investments with original maturities of three months or less. We place our temporary cash investments with high credit quality financial institutions. At times, such investments in U.S. accounts may be in excess of the Federal Deposit Insurance Corporation insurance limit. We had $7.3 million and $5.6 million held in foreign currency and foreign bank accounts as of December 31, 2021 and December 31, 2020, respectively. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any estimated uncollectible amounts. We review accounts receivable regularly and make estimates for the allowance for doubtful accounts when there is doubt as to our ability to collect individual balances. In evaluating our ability to collect outstanding receivable balances, we consider many factors, including the age of the balance, the platform provider's payment history and current creditworthiness, and current economic trends. Bad debts are written off after all collection efforts have ceased. We do not require collateral from our platform providers. We had no allowance for doubtful accounts as of December 31, 2021 and December 31, 2020 and had no significant write-offs or recoveries during the last three years. Long-Lived Assets and Finite-Lived Intangible Assets We assess the recoverability of our other long-term assets (including intangibles) with finite lives whenever events arise or circumstances change that indicate the carrying value of the asset may not be recoverable. Recoverability of long-lived assets (or asset groups) to be held and used is measured by a comparison of the carrying amount of the asset (or asset group) to the expected net future undiscounted cash flows to be generated by that asset (or asset group). The amount of impairment of other long-lived assets and intangible assets with finite lives is measured by the amount by which the carrying amount of the asset exceeds the fair market value of the asset. Revenue Recognition We generate revenue from the sale of coins, chips and cards, which players can use to play casino-style slot games, table games and bingo games (i.e., spin in the case of slot games, bet in the case of table games and use of bingo cards in the case of bingo games). We distribute our games through various global social web and mobile platforms such as Facebook, Apple, Google, Amazon, and Microsoft. The games we offer are internally branded franchises, original content and/or third-party branded games. Disaggregation of Revenue We believe disaggregation of our revenue on the basis of platform and geographical locations of our players is appropriate because the nature and the number of players generating revenue could vary on such basis, which represent different economic risk profiles. The following table presents our revenue disaggregated by type of platform: Years Ended December 31, 2021 2020 2019 Mobile $ 537.3 $ 505.9 $ 391.0 Web and other 68.8 76.3 74.8 Total revenue $ 606.1 $ 582.2 $ 465.8 The following table presents our revenue disaggregated based on the geographical location of our players: Years Ended December 31, 2021 2020 2019 North America (1) $ 555.5 $ 533.3 $ 422.4 International 50.6 48.9 43.4 Total revenue $ 606.1 $ 582.2 $ 465.8 (1) North America revenue includes revenue derived from the U.S., Canada, and Mexico. For the years ended December 31, 2021, 2020, and 2019, U.S. revenue was $515.8 million, $496.0 million, and $395.3 million, respectively. General Our social and mobile games operate on a free-to-play model, whereby game players may collect coins, chips or cards free of charge through the passage of time or through targeted marketing promotions. If a game player wishes to obtain coins, chips or cards above and beyond the level of free coins, chips or cards available to that player, the player may purchase additional coins, chips or cards. Once a purchase is completed, the coins, chips or cards are deposited into the player's account and are not separately identifiable from previously purchased coins, chips or cards or coins, chips and cards obtained by the game player for free. Once obtained, coins, chips or cards (either free or purchased) cannot be redeemed for cash nor exchanged for anything other than game play within our apps. When coins, chips or cards are played in the games, the game player could "win" and would be awarded additional coins, chips or cards, or could "lose" and lose the future use of those coins, chips or cards. We have concluded that coins, chips and cards represent consumable goods, because the game player does not receive any additional benefit from the games and is not entitled to any additional rights once the coins, chips or cards are substantially consumed. We estimate the amount of outstanding purchased coins, chips and cards at period end based on customer behavior, because we are unable to distinguish between the consumption of purchased or free coins, chips and cards. Based on an analysis of the customers' historical play behavior, the timing difference between when coins, chips or cards are purchased by a customer and when those coins, chips or cards are consumed in game play is relatively short. We continuously gather and analyze detailed customer play behavior and assess this data in relation to our judgments used for revenue recognition. Contract Assets, Contract Liabilities and Other Disclosures We receive customer payments based on the payment terms established in our contracts. Payment for the purchase of coins, chips and cards is made at purchase, and such payments are non-refundable in accordance with our standard terms of service. Such payments are initially recorded as a contract liability, and revenue is subsequently recognized as we satisfy our performance obligations. The following table summarizes our opening and closing balances in contract assets, contract liabilities and accounts receivable: Accounts Receivable Contract Assets (1) Contract Liabilities (2) Balance as of January 1, 2021 $ 36.6 $ 0.2 $ 0.6 Balance as of December 31, 2021 39.6 0.2 0.5 (1) Contract assets are included within Prepaid expenses and other current assets in our consolidated balance sheets. During the years ended December 31, 2021 and 2020, we recognized $0.6 million and $0.6 million, respectively, of revenue that was included in the respective period beginning contract liability balance. Substantially all of our unsatisfied performance obligations relate to contracts with an original expected length of one year or less. Principal-Agent Considerations Our games are played on various third-party platforms for which the platform providers collect proceeds from our customers and pay us an amount after deducting a platform fee. Because we have control over the content and functionality of games before they are accessed by the end user, we have determined we are the principal and, as a result, revenues are recorded on a gross basis. Payment processing fees paid to platform providers (such as Facebook, Apple, Amazon, Google and Microsoft) are recorded within cost of revenue. Concentration of Credit Risk Our revenue and accounts receivable are generated via certain platform providers, which subject us to a concentration of credit risk. The following tables summarize the percentage of revenues and accounts receivable generated via our platform providers in excess of 10% of our total revenues and total accounts receivable: Revenue Accounts Years Ended December 31, As of December 31, 2021 2020 2019 2021 2020 Apple 47.1 % 46.3 % 44.8 % 49.8 % 49.2 % Google 36.7 % 37.1 % 35.9 % 33.9 % 35.4 % Facebook 12.4 % 13.1 % 16.7 % 12.1 % 11.5 % Cost of Revenue Amounts recorded as cost of revenue relate to direct expenses incurred in order to generate social gaming revenue. Such costs are recorded as incurred, and primarily consist of fees withheld by our platform providers from the player proceeds received by the platform providers on our behalf and licensing fees. Depreciation and amortization expense is excluded from cost of revenue and other operating expenses and is separately presented on the consolidated statements of income. Advertising Cost The cost of advertising is expensed as incurred and totaled $123.1 million, $123.0 million and $123.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. Advertising costs primarily consist of marketing and player acquisition and retention costs and are included in Sales and marketing expenses. Research and Development (R&D) R&D costs relate primarily to employee costs associated with game development and enhancement costs that do not meet internal-use software capitalization criteria. Such costs are expensed as incurred. Restructuring and Other Restructuring and other includes charges or expenses attributable to: (a) employee severance; (b) management changes; (c) restructuring and integration; (d) M&A and other, which includes (i) M&A transaction costs; (ii) purchase accounting adjustments (including contingent acquisition consideration); (iii) unusual items (including legal settlements related to major litigation); and (iv) other non-cash items; and (e) cost-savings initiatives. Restructuring and other expense for the years ended December 31, 2021, 2020 and 2019 primarily related to items (a), (c), and (d) set forth above, which included a $24.5 million legal settlement charge for the year ended December 31, 2021 (see Note 11). Contingent Acquisition Consideration Our contingent consideration liability is recorded at fair value on the acquisition date as part of the consideration transferred and is remeasured each reporting period. The changes in fair value of contingent acquisition consideration as a result of remeasurement are included in Restructuring and other expenses. The inputs used to measure the fair value of the Contingent acquisition consideration liability primarily consist of projected earnings‑based measures and probability of achievement (categorized as Level 3 in the fair value hierarchy as established by ASC 820). During the second quarter of 2019, we agreed with the SpiceRack selling shareholders to pay them $31.0 million in total contingent acquisition consideration. We paid $4.0 million and $27.0 million during the years ended December 31, 2020 and 2019, respectively. During the second quarter of 2020, we acquired Come2Play for a total purchase consideration of $17.8 million which includes $3.7 million in estimated contingent acquisition consideration. During 2021, we remeasured the Come2Play contingent acquisition consideration resulting in a $1.5 million reduction, which is included in Restructuring and other. We paid $0.5 million and $1.0 million during the years ended December 31, 2020 and 2021, respectively. The following table summarizes our contingent acquisition consideration liabilities: As of December 31, 2021 2020 Contingent acquisition consideration included in accrued liabilities $ 1.0 $ 1.0 Contingent acquisition consideration included in other long-term liabilities — 2.4 The maximum remaining payout for contingent acquisition consideration was $6.0 million, as of December 31, 2021. Foreign Currency Translation We have operations in Israel and Finland where the local currency is the functional currency. Assets and liabilities of foreign operations are translated at period-end rates of exchange, and results of operations are translated at the average rates of exchange for the period. Gains or losses resulting from translating the foreign currency financial statements were accumulated as a separate component of Accumulated other comprehensive income (loss) in Stockholders’ Equity/Accumulated Net Parent Investment. Gains or losses resulting from foreign currency transactions are included in Other income (expense), net. Acquisitions We account for business combinations in accordance with ASC 805. This standard requires the acquiring entity in a business combination to recognize all (and only) the assets acquired and liabilities assumed in the transaction and establishes the acquisition-date fair value as the measurement objective for all assets acquired and liabilities assumed in a business combination. Certain provisions of this standard prescribe, among other things, the determination of acquisition-date fair value of consideration paid in a business combination (including contingent consideration) and the exclusion of transaction and acquisition related restructuring costs, which are expensed as incurred, from acquisition accounting. If the Company determines the assets acquired do not meet the definition of a business under the acquisition method of accounting, the transaction is accounted for as an acquisition of assets rather than a business combination. In an asset acquisition, the acquiring entity is required to allocate the cost of the group of assets acquired to the individual assets acquired or liabilities assumed based on the relative fair values of net identifiable assets acquired other than non-qualifying assets (for example cash) and does not record goodwill. In July 2021, we acquired privately held Koukoi Games Oy, a Finnish-based developer and operator of casual mobile games, for $5.4 million cash consideration, net of cash acquired, that allows us to expand our casual games portfolio. The transaction was accounted for as an asset acquisition, with substantially all of the cash consideration transferred allocated to intellectual property, which was assigned a 5-year useful life. In June 2020, we completed the acquisition of all of the issued and outstanding capital stock of privately held mobile and social game company Come2Play, which expands our existing portfolio of social games. Come2Play offers a solitaire social game targeted towards casual game players on the same platforms in which we currently offer our existing games. The total purchase consideration was $17.8 million including $3.7 million in contingent acquisition consideration. Our allocation of the purchase price resulted in $12.7 million allocated to acquired intangible assets, which included $6.8 million in customer relationships, $4.1 million in intellectual property, and $1.8 million in brand names, which have useful lives of seven five The results of operations from the above acquisitions have been included in our consolidated statement of income since the date of acquisition, which results were not material for the periods presented nor any historical periods. The fair value of intangible assets was determined using a combination of the royalty savings method and excess earnings method, and considered the Level 3 hierarchy as established by ASC 820. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We estimate the fair value of our assets and liabilities, when necessary, using an established three-level hierarchy in accordance with ASC 820. The fair value of our financial assets and liabilities is determined by reference to market data and other valuation techniques as appropriate. We believe the fair value of our financial instruments, which are principally cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities, approximates their recorded values due to the short-term nature of these instruments. Additionally, the inputs used to measure the fair value of contingent consideration liability are categorized as Level 3 in the fair value hierarchy. Refer to Contingent Acquisition Consideration section above for additional disclosures. As of December 31, 2021 and 2020 we did not have other assets and liabilities recorded at fair value on a recurring or nonrecurring basis other than those described above. Minimum guarantees under licensing agreements We enter into long-term license agreements with third parties in which we are obligated to pay a minimum guaranteed amount of royalties, typically periodically over the life of the contract. These license agreements provide us with access to a portfolio of major brands to be used across our games. We account for the minimum guaranteed obligations within Current liabilities and Other long-term liabilities at the onset of the license arrangement and record a corresponding licensed asset within intangible assets, net. The licensed intangible assets related to the minimum guaranteed obligations are amortized over the term of the license agreement with the amortization expense recorded in Depreciation and amortization. The long-term liability related to the minimum guaranteed obligations is reduced as royalty payments are made as required under the license agreement. We assess the recoverability of license agreements whenever events arise or circumstances change that indicate the carrying value of the licensed asset may not be recoverable. Recoverability of the licensed asset and the amount of impairment, if any, are determined using our policy for intangible assets with finite useful lives. The following reflects amortization expense related to these licenses and recorded in depreciation and amortization: Years Ended December 31, 2021 2020 2019 Amortization expense $ 4.6 $ 1.2 $ 0.8 The following are our total minimum guaranteed obligations for the periods presented: As of December 31, 2021 2020 Current liabilities $ 3.7 $ 2.6 Other long-term liabilities 11.2 0.3 Total minimum guarantee obligation $ 14.9 $ 2.9 Weighted average remaining term (in years) 3.9 2.4 Revolving Credit Facility SciPlay Holding, a wholly owned subsidiary of SciPlay Parent LLC, as the borrower, SciPlay Parent LLC, as a guarantor, the subsidiary guarantors party thereto, the lenders party thereto and Bank of America, N.A., as administrative agent and collateral agent, entered into a $150.0 million revolving credit agreement that matures in May 2024. The interest rate is either Adjusted LIBOR (as defined in the Revolver) plus 2.250% (with one 0.250% leverage-based step-down to the margin and one 0.250% leverage-based step-up to the margin) or ABR (as defined in the Revolver) plus 1.250% (with one 0.250% leverage-based step-down to the margin and one 0.250% leverage-based step-up to the margin) at our option. We are required to pay to the lenders a commitment fee of 0.500% per annum on the average daily unused portion of the revolving commitments through maturity, which will be the five-year anniversary of the closing date of the Revolver, which fee varies based on the total net leverage ratio and is subject to a floor of 0.375%. As of December 31, 2021, the commitment fee was 0.375% per annum. The Revolver provides for up to $15.0 million in letter of credit issuances, which requires customary issuance and administration fees, and a fronting fee of 0.125%. On May 27, 2021, we entered into Amendment No. 1 to the Revolver, by and among SciPlay Holding, SciPlay Parent LLC, the several banks and other financial institutions or entities from time to time party thereto and Bank of America, N.A., as administrative agent, collateral agent and issuing lender (such amendment, “Amendment No. 1”). Amendment No. 1 amended, among other things, certain negative covenants in the Revolver to permit SciPlay Holding to merge or consolidate with and into its direct subsidiary, Phantom EFX, LLC, which was renamed SciPlay Games, LLC (“SciPlay Games”) immediately following such merger. Substantially simultaneously with the merger, SciPlay Games expressly assumed all obligations of SciPlay Holding as the successor borrower under the Revolver. The Revolver contains covenants that, among other things, restrict our ability to incur additional indebtedness; incur liens; sell, transfer or dispose of property and assets; invest; make dividends or distributions or other restricted payments; and engage in affiliate transactions, with the exception of certain payments under the TRA and payments in respect of certain tax distributions under the Operating Agreement. In addition, the Revolver requires us to maintain a maximum total net leverage ratio not to exceed 2.50:1.00 and to maintain a minimum fixed charge coverage ratio of no less than 4.00:1.00. Such covenants are tested quarterly at the end of each fiscal quarter. As of December 31, 2021, there were no borrowings outstanding, and we were in compliance with the financial covenants under the Revolver. The Revolver is secured by a (i) first priority pledge of the equity securities of SciPlay Holding, SciPlay Parent LLC’s restricted subsidiaries and each subsidiary guarantor party thereto and (ii) first priority security interests in, and mortgages on, substantially all tangible and intangible personal property and material fee-owned real property of SciPlay Parent LLC, SciPlay Holding and each subsidiary guarantor party thereto, in each case, subject to customary exceptions. We capitalized $1.1 million in debt issuance costs associated with the Revolver as of May 7, 2019, which are presented in Other assets and amortized over the term of the arrangement and reflected in Other income (expense). We have incurred $0.6 million in unused revolver commitment fees during the year ended December 31, 2021, which are reflected in Other income (expense). New Accounting Guidance‑ Recently Adopted The FASB issued ASU No. 2021-05, Leases (Topic 842): Lessors – Certain Leases with Variable Lease Payments, on July 19, 2021. The new guidance requires the lessor to classify a lease with variable lease payments that do not depend on an index or a rate as an operating lease at lease commencement if classifying the lease as a sales-type lease or direct financing lease would result in the recognition of a selling loss. We adopted this standard during the third quarter of 2021 on a prospective basis. The adoption of this guidance did not have a material effect on our consolidated financial statements. New Accounting Guidance‑ Not Yet Adopted The FASB issued ASU No. 2020-04 and subsequently ASU No. 2021-01, Reference Rate Reform (Topic 848) in March 2020 and January 2021, respectively. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contract modifications and hedging relationships, including derivative instruments impacted by changes in the interest rates used for discounting cash flows for computing variable margin settlements, subject to meeting certain criteria, that reference LIBOR or other reference rates expected to be discontinued, in 2022 or potentially 2023 (pending possible extension). The ASUs establish certain contract modification principles that entities can apply in other areas that may be affected by reference rate reform and certain elective hedge accounting expedients and exceptions. The ASUs may be applied prospectively. We do not expect a material impact on our consolidated financial statements from the adoption of this guidance. We do not expect that any other recently issued accounting guidance will have a significant effect on our consolidated financial statements. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: . As of December 31, 2021 2020 Prepaid expenses and other $ 4.6 $ 4.1 Income tax receivable 1.6 1.6 Contract assets 0.2 0.2 $ 6.4 $ 5.9 |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Property and equipment, net Property and equipment, net are stated at cost, and when placed in service, are depreciated using the straight-line method over the estimated useful lives of the assets as follows: Item Estimated Life in Years Computer equipment 3 - 5 Furniture and fixtures 5 - 10 Leasehold improvements Shorter of the estimated useful life or remaining lease term Property and equipment, net consisted of the following: As of December 31, 2021 2020 Computer equipment $ 5.7 $ 5.0 Furniture and fixtures 2.1 2.1 Leasehold improvements and other 3.1 2.9 Less: accumulated depreciation and amortization (7.4) (5.6) Total property and equipment, net $ 3.5 $ 4.4 The following reflects depreciation and amortization expense related to property and equipment included within depreciation and amortization: Years Ended December 31, 2021 2020 2019 Depreciation and amortization expense $ 1.8 $ 1.7 $ 0.9 |
Goodwill, Intangible Assets and
Goodwill, Intangible Assets and Software, net | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Intangible Assets and Software, net | Goodwill, Intangible Assets and Software, net Goodwill $120.7 million of goodwill reflected in these financial statements was allocated based on an estimate of the relative fair value that existed at the time of origination of goodwill in connection with the Parent’s legacy acquisitions and our acquisition of SpiceRack. The carrying value of goodwill increased by $6.9 million, as a result of the Come2Play acquisition in 2020. We have identified a single reporting unit based on our management structure. Goodwill is tested for impairment annually as of October 1 of each fiscal year, or whenever events or circumstances make it more likely than not that impairment may have occurred since completion of the last annual test. We test our goodwill using the qualitative assessment to determine whether the fair value is “more likely than not” less than its carrying value. When qualitative factors indicate that the fair value is more likely than not less than its carrying value, a quantitative assessment is performed and an impairment charge is recognized for the amount by which the carrying value exceeds the fair value determined based on a quantitative test, not to exceed the total amount of goodwill. Our annual goodwill impairment test as of October 1, 2021 indicated estimated fair value is in excess of its carrying value. The table below reconciles the changes in the carrying value of goodwill for the period from December 31, 2019 to December 31, 2021. Total Balance as of December 31, 2019 $ 120.7 Acquired Goodwill 6.9 Foreign currency adjustments 2.2 Balance as of December 31, 2020 129.8 Foreign currency adjustments 1.3 Balance as of December 31, 2021 $ 131.1 Intangible Assets and Software, net Intangible assets reflected in these financial statements were allocated based on an estimate of the relative fair value that existed at the time of origination of intangible assets in connection with the acquisitions. Intangible assets increased during the year ended December 31, 2021 as a result of the Koukoi acquisition and new minimum guarantee licenses that have been entered into. Identified intangible assets are amortized over three The following table presents certain information regarding our intangible assets: Gross Accumulated Net Balance as of December 31, 2021 Amortizable intangible assets: Intellectual property $ 49.6 $ (40.4) $ 9.2 Customer relationships 30.7 (22.1) 8.6 Software 28.1 (17.8) 10.3 Licenses 23.6 (4.5) 19.1 Brand names and other 6.7 (4.3) 2.4 $ 138.7 $ (89.1) $ 49.6 Balance as of December 31, 2020 Amortizable intangible assets: Intellectual property $ 42.2 $ (37.2) $ 5.0 Customer relationships 30.5 (19.8) 10.7 Software 21.9 (13.8) 8.1 Licenses 7.7 (3.5) 4.2 Brand names 6.1 (3.8) 2.3 $ 108.4 $ (78.1) $ 30.3 . The following reflects amortization expense related to intangible assets included within depreciation and amortization: Years Ended December 31, 2021 2020 2019 Amortization expense $ 13.7 $ 8.0 $ 6.1 Estimated amortization expense for the years ending December 31, 2022 through 2026 and thereafter is as follows: Year Expense 2022 $ 14.9 2023 12.9 2024 9.9 2025 7.3 2026 2.6 Thereafter 2.0 $ 49.6 |
Accrued liabilities
Accrued liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued liabilities | Accrued liabilities Accrued liabilities consisted of the following: As of December 31, 2021 2020 Legal contingencies (see Note 11) $ 24.5 $ — Compensation and benefits 11.7 10.8 Liabilities under the TRA 4.1 4.0 License minimum guarantees 3.7 — Operating lease liabilities 2.2 2.0 Contingent acquisition consideration 1.0 1.0 Income and other taxes 0.4 3.1 Other 2.6 2.0 $ 50.2 $ 22.9 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | LeasesOur operating leases primarily consist of real estate leases such as offices. Our leases have remaining terms of approximately 3 years. We do not have any finance leases. Our total variable and short term lease payments and operating lease expenses were immaterial for all periods presented. Supplemental balance sheet and cash flow information related to operating leases is as follows: December 31, 2021 December 31, 2020 Operating lease right-of-use assets (1) $ 6.8 $ 8.5 Accrued liabilities 2.2 2.0 Operating lease liabilities 5.4 7.5 Total operating lease liabilities $ 7.6 $ 9.5 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2.4 $ 2.4 Weighted average remaining lease term, years 3.27 4.26 Weighted average discount rate 5.0 % 5.0 % (1) Right-of-use assets obtained in exchange for lease obligations for the year ended December 31, 2021 were immaterial. Lease liability maturities: Operating Leases 2022 $ 2.5 2023 2.6 2024 2.4 2025 0.7 Less: Imputed Interest (0.6) Total $ 7.6 As of December 31, 2021, we did not have material additional operating leases that have not yet commenced. |
Stockholders_ Equity and Noncon
Stockholders’ Equity and Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders’ Equity and Noncontrolling Interest | Stockholders’ Equity and Noncontrolling Interest Stockholders’ Equity Holders of our Class A common stock and Class B common stock vote together as a single class, except where separate class voting is required by Nevada law. Each share of Class A common stock entitles its holder to one vote on all matters presented to our stockholders generally. Each share of Class B common stock entitles its holder to ten votes on all matters presented to our stockholders generally, for so long as the number of shares of our common stock beneficially owned by the SG Members and their affiliates represents at least 10% of our outstanding shares of common stock and, thereafter, one vote per share. As of December 31, 2021, Scientific Games owned all of the outstanding Class B common stock. Accordingly, Scientific Games continues to control shares representing 97.7% of the voting power in us and continues to have a controlling financial interest in and consolidate us. Noncontrolling Interest We are a holding company, and our sole material assets are LLC Interests that we purchased from SciPlay Parent LLC and SG Holding I, representing an aggregate 19.2% economic interest in SciPlay Parent LLC. The remaining 80.8% economic interest in SciPlay Parent LLC is owned indirectly by Scientific Games, through the ownership of LLC Interests by the indirect wholly owned subsidiaries of Scientific Games, the SG Members. The organizational transactions (including the IP License Agreement), consummated in connection with the completion of the IPO, as described in Note 1, were executed concurrently with a single economic objective; therefore, the net effect of these transactions along with accumulated net parent investment balance as of the IPO date was allocated on a pro rata basis between additional paid-in capital and noncontrolling interest. Stock-Based Compensation Our Long-Term Incentive Plan authorizes the issuance of up to 6.5 million shares of our Class A common stock to be granted in connection with awards of incentive and nonqualified stock options, restricted stock and stock units, stock appreciation rights and performance-based awards. At our 2020 annual meeting of stockholders, our stockholders approved the adoption of the 2020 Employee Stock Purchase Plan (the “ESPP”), which authorizes the issuance of up to 250,000 shares of our Class A common stock. The first offering period under the ESPP commenced on January 1, 2021. During 2021, we issued 28,639 shares under the ESPP at an average issue price of $12.73. The Parent maintains an equity incentive awards plan under which the Parent may issue, among other awards, time‑based and performance‑based stock options and restricted stock units to our employees. Although awards under such plan result in the issuance of shares of the Parent, the amounts are a component of the total compensation for our employees and are included in our stock‑based compensation expense, which is accounted for as a component of Stockholders’ equity. The following table summarizes stock‑based compensation expense that is included in general and administrative expenses: Years Ended December 31, 2021 2020 2019 Related to SciPlay equity awards $ 6.8 $ 21.4 $ 5.7 Related to the Parent’s equity awards 0.4 0.6 3.2 Total $ 7.2 $ 22.0 $ 8.9 Restricted Stock Units (RSUs) A summary of changes in unvested RSUs under our equity-based compensation plans during 2021 is presented below: Number of Shares Weighted Average Grant Date Fair Value Unvested RSU as of December 31, 2020 588,461 $ 12.24 Granted 434,262 $ 18.40 Vested (262,668) $ 11.19 Cancelled (82,894) $ 13.17 Unvested RSU as of December 31, 2021 677,161 $ 14.74 The weighted-average grant date fair value of RSUs granted during 2021, 2020, and 2019, was $18.40, $12.66, and $12.21, respectively. The fair value of each RSU grant is based on the market value of our common stock at the time of grant. As of December 31, 2021, we had $9.1 million of unrecognized stock-based compensation expense relating to unvested RSUs that will be amortized on a straight-line basis over a weighted-average remaining term of approximately 1.4 years. The fair value at vesting date of RSU’s vested during the years ended December 31, 2021, 2020, and 2019, was $4.6 million, $1.7 million, and $— respectively. Performance-Based Restricted Stock Units (PRSUs) Starting with the second quarter of 2019, SciPlay employees including our senior executives are granted PRSUs with respect to our Class A common stock. The performance criteria for vesting of such PRSUs granted is generally based on revenue and/or Adjusted EBITDA metrics. Recipients of these awards generally must be actively employed by and providing services to the Company on the day the granted PRSUs vest in order to receive an award payout. In certain cases, upon death, disability or a qualifying termination, all or a pro-rata portion of the PRSUs will remain eligible to vest at the end of the performance period. The fair value of the PRSUs granted was based on the average high-low price of our Class A common stock for the day prior to the date of each grant. Stock-based compensation expense associated with these awards is recognized over the service period based on our projection as to the probable outcome of the above specified performance conditions. We reassess the probability of meeting the above specified performance conditions at each reporting period using our current management forecast and adjust stock-based compensation expense to reflect current expected results, as necessary. The following is a summary of changes in unvested PRSUs during 2021: Number of Shares Weighted Average Grant Date Fair Value Unvested PRSU as of December 31, 2020 3,533,566 $ 15.77 Granted 1,169,435 $ 17.22 Vested (2,157,264) $ 15.81 Cancelled (1,094,194) $ 16.08 Unvested PRSU as of December 31, 2021 1,451,543 $ 17.13 The weighted-average grant date fair value of PRSUs granted during 2021, 2020, and 2019 was $17.22, $14.94, and $15.76, respectively. All of the PRSUs granted during 2021 remained unvested as of December 31, 2021. As of December 31, 2021, we had $4.1 million of unrecognized stock-based compensation expense relating to unvested PRSUs that will be amortized on a straight-line basis over a weighted-average remaining term of approximately 1.0 year. The fair value at vesting date of PRSU’s vested during the years ended December 31, 2021, 2020, and 2019, was $38.1 million, $0.5 million, and $—, respectively. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The table below sets forth a calculation of basic earnings per share ("EPS") based on net income attributable to SciPlay divided by the basic weighted average number of Class A common stock. Diluted EPS of Class A common stock is computed by dividing net income attributable to SciPlay by the weighted average number of shares of Class A common stock outstanding adjusted to give effect to all potentially dilutive securities, using the treasury stock method. Basic and diluted EPS is calculated including only net income attributable to SciPlay generated from May 7, 2019, the period following our IPO in which we had outstanding Class A common stock. We excluded Class B common stock from the computation of basic and diluted EPS, as holders of Class B common stock do not have an economic interest in us and therefore a separate presentation of EPS of Class B common stock under the two-class method has not been provided. Years Ended December 31, 2021 2020 2019 Numerator: Net income $ 125.0 $ 146.0 $ 93.5 Less: net income attributable to SG Social Holding Company II, LLC prior to IPO — — 20.4 Less: net income attributable to the noncontrolling interest 105.7 125.1 61.1 Net income attributable to SciPlay $ 19.3 $ 20.9 $ 12.0 Denominator: Weighted average shares of Class A common stock for basic EPS 24.2 22.8 22.7 Effect of dilutive securities: Stock-based compensation grants 0.8 1.6 — Weighted average shares of Class A common stock for diluted EPS 25.0 24.4 22.7 Basic and diluted net income attributable to SciPlay per share: Basic $ 0.80 $ 0.92 $ 0.53 Diluted $ 0.77 $ 0.86 $ 0.53 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes are determined using the liability method of accounting for income taxes, under which deferred tax assets ("DTAs") and deferred tax liabilities ("DTLs") are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. Deferred income tax balances are reported using currently enacted tax rates and are adjusted for changes in such rates in the period of change. We hold an economic interest of 19.2% in SciPlay Parent LLC. The 80.8% that we do not own represents a noncontrolling interest for financial reporting purposes. SciPlay Parent LLC is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As such, SciPlay Parent LLC is not subject to income tax in most U.S. jurisdictions, and SciPlay Parent LLC’s members, of which we are one, are liable for income taxes based on their allocable share of SciPlay Parent LLC’s taxable income. The components of Net income before income taxes are as follows: Years Ended December 31, 2021 2020 2019 United States $ 128.6 $ 155.0 $ 101.1 Foreign 2.1 (0.6) 1.1 Net income before income taxes $ 130.7 $ 154.4 $ 102.2 The components of income tax expense are as follows: Years Ended December 31, 2021 2020 2019 Current U.S. Federal $ 0.4 $ 1.7 $ 5.4 U.S. State 0.4 1.3 1.5 Foreign 1.2 1.0 0.9 Total $ 2.0 $ 4.0 $ 7.8 Deferred U.S. Federal 4.4 3.6 0.6 U.S. State 0.2 0.9 0.5 Foreign (0.9) (0.1) (0.2) Total 3.7 4.4 0.9 Total income tax expense $ 5.7 $ 8.4 $ 8.7 The reconciliation of the U.S. federal statutory tax rate to the actual tax rate is as follows: Years Ended December 31, 2021 2020 2019 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % U.S. state income taxes, net of federal benefit 0.5 % 1.3 % 1.7 % Noncontrolling interest (16.7) % (17.3) % (12.2) % Other (0.4) % 0.4 % (2.0) % Effective income tax rate 4.4 % 5.4 % 8.5 % Our effective tax rate for the years ended December 31, 2021, 2020, and 2019 differ from the statutory rate of 21.0% primarily because we do not record income taxes for the noncontrolling interest portion of U.S. pre-tax income. Additionally, the periods prior to the IPO are presented using historical results of operations and cost basis of the assets and liabilities as if we operated on a standalone basis during those periods, and the tax provision is calculated as if we completed separate tax returns apart from our Parent (“Separate-return Method’’). Certain legal entities that are included in these financial statements under the Separate-return Method were included in tax filings of affiliated entities that are not part of these financial statements. The tax effects of significant temporary differences representing net deferred tax assets and liabilities consisted of the following: As of December 31, 2021 2020 Deferred tax assets: Investment in LLC $ 73.1 $ 74.3 TRA liability 16.7 17.5 Other 1.5 0.7 Valuation allowance (12.1) (9.6) Realizable deferred tax assets 79.2 82.9 Deferred tax liabilities: Difference in financial reporting and tax basis for: Identifiable intangible assets (3.5) (2.9) Other (0.7) — Total deferred tax liabilities (4.2) (2.9) Net deferred tax assets on balance sheet $ 75.0 $ 80.0 As a result of the IPO, we recorded a deferred tax asset for the difference between the financial reporting value and the tax basis of our investment in SciPlay Parent LLC. We also recorded a deferred tax asset for the tax basis increases that will be generated from future payments under the Tax Receivable Agreement. The TRA liability represents 85% of the tax savings we expect to receive from the amortization deductions associated with the step-up in basis of depreciable assets under Internal Revenue Code Section 754. This DTA will be realized as cash payments are made to the TRA participants. As of December 31, 2021, we did not have any material NOL or credit carryforwards. The following table summarizes our valuation allowances: As of December 31, 2021 2020 Federal $ (10.5) $ (8.4) State (1.6) (1.2) Foreign — — $ (12.1) $ (9.6) At each reporting period, we analyze the likelihood of our deferred taxes assets to be realized. If, based upon all available evidence, both positive and negative, it is more likely than not that such deferred tax assets will not be realized, a valuation allowance is recorded. As a result of this analysis, we determined that a portion of the DTA related to our investment in SciPlay Parent LLC is not expected to be realized; therefore, we recorded a valuation allowance on this portion of the outside basis difference in our investment. We apply a recognition threshold and measurement attribute related to uncertain tax positions taken or expected to be taken on our tax returns. We recognize a tax benefit for financial reporting of an uncertain income tax position when it has a greater than 50% likelihood of being sustained upon examination by the taxing authorities. We measure the tax benefit of an uncertain tax position based on the largest benefit that has a greater than 50% likelihood of being ultimately realized including evaluation of settlements. For the years ended December 31, 2021 and 2020, we had no unrecognized tax benefits. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The following is the summary of expenses paid to Scientific Games and settled in cash: Years Ended December 31, 2021 2020 2019 Financial Statement Line Item Royalties for Scientific Games IP (1) $ — $ — $ 10.2 Cost of revenue Royalties to Scientific Games for third-party IP 2.6 7.0 6.9 Cost of revenue Parent services 5.8 5.9 5.0 General and administrative TRA payments (2) 3.8 2.5 — Accrued liabilities Distributions to Parent and affiliates, net (2) 30.0 12.8 — Noncontrolling interest (1) In accordance with the IP License Agreement, we did not incur any additional royalty expense related to Scientific Games IP after the effective date of the IP License Agreement. The following is the summary of balances due to affiliates: As of December 31, 2021 2020 Royalties to Scientific Games for third-party IP $ 0.3 $ 2.5 Parent services 0.9 0.8 Reimbursable expenses to (from) Scientific Games and its subsidiaries 0.4 2.2 $ 1.6 $ 5.5 IP Royalties In connection with the IPO, we entered into the IP License Agreement from which we obtained an exclusive (subject to certain limited exceptions), perpetual, non-royalty-bearing license from SG Gaming, Inc. (formerly known as Bally Gaming, Inc.) (“SG Gaming”) for intellectual property created or acquired by SG Gaming or its affiliates on or before the third anniversary of the date of the IP License Agreement in any of our currently available or future social games that are developed for mobile platforms, social media platforms, internet platforms or other interactive platforms and distributed solely via digital delivery, and a non-exclusive, perpetual, non-royalty-bearing license for intellectual property created or acquired by SG Gaming or its affiliates after such third anniversary, for use in our currently available games. So long as the IP License Agreement remains in effect, we do not expect to pay any future royalties or fees for our use of intellectual property owned by SG Gaming or its affiliates in our currently available games. The purchase price of the license was $255.0 million, which was determined based on the appropriate valuation methodology performed by a third-party valuation specialist. This transaction was treated as a deemed distribution to the Parent as it constitutes a transaction between entities under common control. The Parent frequently licenses intellectual property (“IP”) from third parties, which we use in developing our games pursuant to the IP License Agreement. Royalties allocated for use of third‑party IP are charged to us and are typically based upon net social gaming revenues and the royalty rates defined and stipulated in the third‑party agreements. Parent Services On September 5, 2016, we entered into a Services Agreement with the Parent pursuant to which the Parent and its subsidiaries provide us various corporate services. In connection with the IPO described above, we entered into a new Services Agreement under which the Parent and its subsidiaries will continue to provide us the below services on substantially the same terms. Parent services represent charges of corporate level general and administrative expenses that pay for services related to, but not limited to, finance, corporate development, human resources, legal, information technology, and rental fees for shared assets. These expenses have been charged to us on the basis of direct usage and costs when identifiable, with the remainder charged on the basis of revenues, operating expenses, headcount or other relevant measures, which we believe to be the most meaningful methodologies. TRA As described in Note 1 and in connection with the IPO, we entered into the TRA with the SG Members. The annual tax benefits are computed by comparing the income taxes due including such tax benefits and the income taxes due without such benefits. The amount of aggregate payments due under the TRA may vary based on a number of factors, including the amount and timing of the taxable income SciPlay Parent LLC generates each year and applicable tax rates, with payments generally due within a specified period of time following the filing of our tax return for the taxable year with respect to which the payment obligation arises. The TRA will remain in effect until all such tax benefits have been utilized or expired unless we exercise our right to terminate the TRA. The TRA will also terminate if we breach our obligations under the TRA or upon certain change of control events specified in the agreement. If the TRA is terminated in accordance with its terms, our payment obligations would be accelerated based upon certain assumptions, including the assumption that we would have sufficient future taxable income to utilize such tax benefits. During the years ended December 31, 2021 and 2020 payments totaling $3.8 million and $2.5 million, respectively were made to Scientific Games pursuant to the TRA. As of December 31, 2021 and 2020 the total TRA liability was $68.8 million and $72.5 million, respectively, of which $4.1 million and $4.0 million, respectively, was included in Accrued liabilities. Parent Equity Awards See Note 7 for disclosures related to Parent’s equity awards. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Benefit plans We have a 401(k) plan for U.S.-based employees and equivalent foreign plans for our international employees. Those employees who participate in our 401(k) plan are eligible to receive matching contributions from us for the first 6% of participant contributions (as defined in the plan document). Contribution expense for the years ended December 31, 2021, 2020 and 2019 amounted to $2.3 million, $1.8 million and $1.5 million, respectively. Litigation From time to time, we are subject to various claims, complaints and legal actions in the normal course of business. In addition, we may receive notifications alleging infringement of patent or other IP rights. Washington State Matter On April 17, 2018, a plaintiff, Sheryl Fife, filed a putative class action complaint, Fife v. Scientific Games Corporation , against our Parent, in the United States District Court for the Western District of Washington. The plaintiff seeks to represent a putative class of all persons in the State of Washington who purchased and allegedly lost virtual coins playing our Parent’s online social casino games, including but not limited to Jackpot Party® Casino and Gold Fish® Casino . The complaint asserts claims for alleged violations of Washington’s Recovery of Money Lost at Gambling Act, Washington’s consumer protection statute, 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. On July 2, 2018, our Parent filed a motion to dismiss the plaintiff’s complaint with prejudice, which the trial court denied on December 18, 2018. Our Parent filed its answer to the putative class action complaint on January 18, 2019. On August 24, 2020, the trial court granted plaintiff’s motion for leave to amend her complaint and to substitute a new plaintiff, Donna Reed, for the initial plaintiff, and re-captioned the matter Reed v. Scientific Games Corporation. On August 25, 2020, the plaintiff filed a first amended complaint against our Parent, asserting the same claims, and seeking the same relief, as the complaint filed by Sheryl Fife. On September 8, 2020, our Parent filed a motion to compel arbitration of plaintiff’s claims and to dismiss the action, or, in the alternative, to transfer the action to the United States District Court for the District of Nevada. On June 17, 2021, the district court denied that motion, and on June 23, 2021, SGC filed a notice of appeal from the district court’s denial of that motion, and also filed a motion to stay all district court proceedings, pending the appeals court’s ruling on the Company’s arbitration appeal. On November 23, 2021, Scientific Games entered into an agreement in principle to settle the lawsuit for the amount of $24.5 million. On December 3, 2021, the district court granted a joint motion to stay appellate proceedings until final approval by the district court of the parties’ settlement. On January 18, 2022, the parties executed a settlement agreement, and plaintiff filed an unopposed motion for preliminary approval of the parties’ proposed settlement agreement. On January 19, 2022, the district court granted preliminary approval to the parties’ proposed settlement, and a hearing for final approval of the settlement is scheduled for August 12, 2022 . Although the case was brought against Scientific Games, pursuant to the Intercompany Services Agreement, we expect to cover the settlement amount due to the matter arising as a result of our business. SciPlay IPO Matter (New York) On or about October 14, 2019, the Police Retirement System of St. Louis filed a putative class action complaint in New York state court against SciPlay, certain of its executives and directors, and SciPlay’s underwriters with respect to its IPO (the “PRS Action”). The complaint was amended on November 18, 2019. The plaintiff seeks to represent a class of all persons or entities who acquired Class A common stock of SciPlay pursuant and/or traceable to the Registration Statement filed and issued in connection with the SciPlay IPO which commenced on or about May 3, 2019. The complaint asserts claims for alleged violations of Sections 11 and 15 of the Securities Act, 15 U.S.C. § 77, and seeks certification of the putative class; compensatory damages of at least $146.0 million, and the award of the plaintiff’s and the class’s reasonable costs and expenses incurred in the action. On or about December 9, 2019, Hongwei Li filed a putative class action complaint in New York state court asserting substantively similar causes of action under the Securities Act of 1933 and substantially similar factual allegations as those alleged in the PRS Action (the “Li Action”). On December 18, 2019, the New York state court entered a stipulated order consolidating the PRS Action and the Li Action into a single lawsuit. On December 23, 2019, the defendants moved to dismiss the consolidated action. On August 28, 2020, the court issued an oral ruling granting in part and denying in part the defendants’ motion to dismiss. On December 14, 2020, plaintiffs in the consolidated action filed a motion to certify the putative class. On May 12, 2021, the parties in the consolidated action reached an agreement in principle to settle the consolidated action. On July 27, 2021, the parties in the consolidated action entered into a settlement agreement to settle the consolidated action. On August 11, 2021, the New York court granted preliminary approval to the parties’ proposed settlement, stayed non-settlement related proceedings in the consolidated action pending final approval of the settlement and scheduled a hearing for final approval of the settlement on November 15, 2021. On November 16, 2021, the New York court entered an order fully and finally approving the settlement agreement and dismissing the complaint in the consolidated action in its entirety. The loss from the settlement of $8.275 million was recovered and settled under our insurance policy. SciPlay IPO Matter (Nevada) On or about November 4, 2019, plaintiff John Good filed a putative class action complaint in Nevada state court against SciPlay, certain of its executives and directors, SGC, and SciPlay’s underwriters with respect to the SciPlay IPO. The plaintiff seeks to represent a class of all persons who purchased Class A common stock of SciPlay in or traceable to the SciPlay IPO that it completed on or about May 7, 2019. The complaint asserts claims for alleged violations of Sections 11 and 15 of the Securities Act, 15 U.S.C. § 77, and seeks certification of the putative class; compensatory damages, and the award of the plaintiff’s and the class’s reasonable costs and expenses incurred in the action. On February 27, 2020, the trial court entered a stipulated order that, among other things, stayed the lawsuit pending entry of an order resolving the motion to dismiss that was pending in the SciPlay IPO matter in New York state court. On September 29, 2020, the trial court entered a stipulated order that extended the stay pending a ruling on class certification in the SciPlay IPO matter in New York state court. On May 12, 2021, the parties in the Nevada lawsuit reached an agreement in principle to settle the lawsuit and so informed the Nevada court, which vacated non-settlement related proceedings in the lawsuit, pending final approval of the settlement agreement by the New York court. On December 3, 2021, the Nevada court ordered the dismissal of the Nevada lawsuit with prejudice. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 28, 2022, we entered into Amendment No. 2 to the Revolver, by and among SciPlay Holding, SciPlay Parent Company, LLC, the several banks and other financial institutions or entities from time to time party thereto and Bank of America, N.A., as administrative agent, collateral agent and issuing lender (such amendment, “Amendment No. 2”). Amendment No. 2, among other things, (i) amends certain interest rate provisions related to Sterling-denominated revolving loans, (ii) increases SciPlay Games’ and its subsidiaries capacity to acquire non-loan parties and (iii) allows for the acquisition of Alictus. On March 1, 2022, we acquired 80% of all issued and outstanding share capital of privately held Alictus, a Turkey-based hyper-casual game studio for approximately $101.6 million cash consideration, net of cash acquired. The remaining 20% will be acquired ratably for potential additional consideration payable annually based upon the achievement of specified revenue and EBITDA targets by Alictus during each of the five years following the acquisition date. The equity rights and privileges of the remaining Alictus shareholders lack the traditional rights and privileges associated with equity ownership and accordingly, the transaction will be accounted for as if we acquired 100% of Alictus on the acquisition date. Any future payments associated with our required acquisition of the remaining 20% will represent a contingent consideration obligation, with a payout ranging from a minimum of $— to a maximum payout of $200.0 million. The Alictus acquisition allows us to expand our business into the casual gaming market, growing our game pipeline and diversifying our revenue streams as we advance our strategy to be a diversified game global game developer. We are in the process of completing the preliminary purchase price accounting and expect that a substantial amount of the purchase price will be allocated to goodwill and intangible assets. The revenue, earnings and assets associated with the Alictus acquisition are not significant to our historical consolidated financial statements. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Tax related valuation allowance Balance at beginning of period Additions/(deductions) Balance at end of period Year Ended December 31, 2019 $ — 7.7 $ 7.7 Year Ended December 31, 2020 $ 7.7 1.9 $ 9.6 Year Ended December 31, 2021 $ 9.6 2.5 $ 12.1 |
Description of the Business a_2
Description of the Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities (“VIE”) and Consolidation | Variable Interest Entities (“VIE”) and Consolidation Subsequent to the IPO, our sole material asset is our member’s interest in SciPlay Parent LLC. In accordance with the Operating Agreement of SciPlay Parent LLC, we have all management powers over the business and affairs of SciPlay Parent LLC and to conduct, direct and exercise full control over the activities of SciPlay Parent LLC. Class A common stock issued in the IPO does not hold majority voting rights but holds 100% of the economic interest in the Company, which results in SciPlay Parent LLC being considered a VIE. Due to our power to control the activities most directly affecting the results of SciPlay Parent LLC, we are considered the primary beneficiary of the VIE. Accordingly, beginning with the IPO, we consolidate the financial results of SciPlay Parent LLC and its subsidiaries. |
Basis of Presentation | Basis of Presentation The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”). SG Social Holding Company II, LLC is SciPlay’s predecessor for financial reporting purposes, and accordingly, for all periods presented prior to May 7, 2019, the financial statements represent the financial statements of the predecessor. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in our financial statements and the accompanying notes. Actual results may differ materially from our estimates. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents include all cash balances and highly liquid investments with original maturities of three months or less. We place our temporary cash investments with high credit quality financial institutions. At times, such investments in U.S. accounts may be in excess of the Federal Deposit Insurance Corporation insurance limit. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any estimated uncollectible amounts. We review accounts receivable regularly and make estimates for the allowance for doubtful accounts when there is doubt as to our ability to collect individual balances. In evaluating our ability to collect outstanding receivable balances, we consider many factors, including the age of the balance, the platform provider's payment history and current creditworthiness, and current economic trends. Bad debts are written off after all collection efforts have ceased. We do not require collateral from our platform providers. |
Long-Lived Assets and Finite-Lived Intangible Assets | Long-Lived Assets and Finite-Lived Intangible Assets We assess the recoverability of our other long-term assets (including intangibles) with finite lives whenever events arise or circumstances change that indicate the carrying value of the asset may not be recoverable. Recoverability of long-lived assets (or asset groups) to be held and used is measured by a comparison of the carrying amount of the asset (or asset group) to the expected net future undiscounted cash flows to be generated by that asset (or asset group). The amount of impairment of other long-lived assets and intangible assets with finite lives is measured by the amount by which the carrying amount of the asset exceeds the fair market value of the asset. |
Revenue | Revenue Recognition We generate revenue from the sale of coins, chips and cards, which players can use to play casino-style slot games, table games and bingo games (i.e., spin in the case of slot games, bet in the case of table games and use of bingo cards in the case of bingo games). We distribute our games through various global social web and mobile platforms such as Facebook, Apple, Google, Amazon, and Microsoft. The games we offer are internally branded franchises, original content and/or third-party branded games. Disaggregation of Revenue We believe disaggregation of our revenue on the basis of platform and geographical locations of our players is appropriate because the nature and the number of players generating revenue could vary on such basis, which represent different economic risk profiles. General Our social and mobile games operate on a free-to-play model, whereby game players may collect coins, chips or cards free of charge through the passage of time or through targeted marketing promotions. If a game player wishes to obtain coins, chips or cards above and beyond the level of free coins, chips or cards available to that player, the player may purchase additional coins, chips or cards. Once a purchase is completed, the coins, chips or cards are deposited into the player's account and are not separately identifiable from previously purchased coins, chips or cards or coins, chips and cards obtained by the game player for free. Once obtained, coins, chips or cards (either free or purchased) cannot be redeemed for cash nor exchanged for anything other than game play within our apps. When coins, chips or cards are played in the games, the game player could "win" and would be awarded additional coins, chips or cards, or could "lose" and lose the future use of those coins, chips or cards. We have concluded that coins, chips and cards represent consumable goods, because the game player does not receive any additional benefit from the games and is not entitled to any additional rights once the coins, chips or cards are substantially consumed. We estimate the amount of outstanding purchased coins, chips and cards at period end based on customer behavior, because we are unable to distinguish between the consumption of purchased or free coins, chips and cards. Based on an analysis of the customers' historical play behavior, the timing difference between when coins, chips or cards are purchased by a customer and when those coins, chips or cards are consumed in game play is relatively short. We continuously gather and analyze detailed customer play behavior and assess this data in relation to our judgments used for revenue recognition. Contract Assets, Contract Liabilities and Other Disclosures We receive customer payments based on the payment terms established in our contracts. Payment for the purchase of coins, chips and cards is made at purchase, and such payments are non-refundable in accordance with our standard terms of service. Such payments are initially recorded as a contract liability, and revenue is subsequently recognized as we satisfy our performance obligations. Principal-Agent Considerations Our games are played on various third-party platforms for which the platform providers collect proceeds from our customers and pay us an amount after deducting a platform fee. Because we have control over the content and functionality of games before they are accessed by the end user, we have determined we are the principal and, as a result, revenues are recorded on a gross basis. Payment processing fees paid to platform providers (such as Facebook, Apple, Amazon, Google and Microsoft) are recorded within cost of revenue. |
Concentration of Credit Risk | Concentration of Credit RiskOur revenue and accounts receivable are generated via certain platform providers, which subject us to a concentration of credit risk. |
Cost of Revenue | Cost of Revenue Amounts recorded as cost of revenue relate to direct expenses incurred in order to generate social gaming revenue. Such costs are recorded as incurred, and primarily consist of fees withheld by our platform providers from the player proceeds received by the platform providers on our behalf and licensing fees. Depreciation and amortization expense is excluded from cost of revenue and other operating expenses and is separately presented on the consolidated statements of income. |
Advertising Cost | Advertising Cost The cost of advertising is expensed as incurred and totaled $123.1 million, $123.0 million and $123.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. Advertising costs primarily consist of marketing and player acquisition and retention costs and are included in Sales and marketing expenses. |
Research and Development (R&D) | Research and Development (R&D) R&D costs relate primarily to employee costs associated with game development and enhancement costs that do not meet internal-use software capitalization criteria. Such costs are expensed as incurred. |
Restructuring and Other | Restructuring and Other Restructuring and other includes charges or expenses attributable to: (a) employee severance; (b) management changes; (c) restructuring and integration; (d) M&A and other, which includes (i) M&A transaction costs; (ii) purchase accounting adjustments (including contingent acquisition consideration); (iii) unusual items (including legal settlements related to major litigation); and (iv) other non-cash items; and (e) cost-savings initiatives. |
Contingent Acquisition Consideration and Acquisitions | Contingent Acquisition Consideration Our contingent consideration liability is recorded at fair value on the acquisition date as part of the consideration transferred and is remeasured each reporting period. The changes in fair value of contingent acquisition consideration as a result of remeasurement are included in Restructuring and other expenses. The inputs used to measure the fair value of the Contingent acquisition consideration liability primarily consist of projected earnings‑based measures and probability of achievement (categorized as Level 3 in the fair value hierarchy as established by ASC 820). Acquisitions We account for business combinations in accordance with ASC 805. This standard requires the acquiring entity in a business combination to recognize all (and only) the assets acquired and liabilities assumed in the transaction and establishes the acquisition-date fair value as the measurement objective for all assets acquired and liabilities assumed in a business combination. Certain provisions of this standard prescribe, among other things, the determination of acquisition-date fair value of consideration paid in a business combination (including contingent consideration) and the exclusion of transaction and acquisition related restructuring costs, which are expensed as incurred, from acquisition accounting. If the Company determines the assets acquired do not meet the definition of a business under the acquisition method of accounting, the transaction is accounted for as an acquisition of assets rather than a business combination. In an asset acquisition, the acquiring entity is required to allocate the cost of the group of assets acquired to the individual assets acquired or liabilities assumed based on the relative fair values of net identifiable assets acquired other than non-qualifying assets (for example cash) and does not record goodwill. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We estimate the fair value of our assets and liabilities, when necessary, using an established three-level hierarchy in accordance with ASC 820. The fair value of our financial assets and liabilities is determined by reference to market data and other valuation techniques as appropriate. We believe the fair value of our financial instruments, which are principally cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities, approximates their recorded values due to the short-term nature of these instruments. Additionally, the inputs used to measure the fair value of contingent consideration liability are categorized as Level 3 in the fair value hierarchy. Refer to Contingent Acquisition Consideration section above for additional disclosures. |
Minimum guarantees under licensing agreements | Minimum guarantees under licensing agreements We enter into long-term license agreements with third parties in which we are obligated to pay a minimum guaranteed amount of royalties, typically periodically over the life of the contract. These license agreements provide us with access to a portfolio of major brands to be used across our games. We account for the minimum guaranteed obligations within Current liabilities and Other long-term liabilities at the onset of the license arrangement and record a corresponding licensed asset within intangible assets, net. The licensed intangible assets related to the minimum guaranteed obligations are amortized over the term of the license agreement with the amortization expense recorded in Depreciation and amortization. The long-term liability related to the minimum guaranteed obligations is reduced as royalty payments are made as required under the license agreement. We assess the recoverability of license agreements whenever events arise or circumstances change that indicate the carrying value of the licensed asset may not be recoverable. Recoverability of the licensed asset and the amount of impairment, if any, are determined using our policy for intangible assets with finite useful lives. |
Foreign Currency Translation | Foreign Currency Translation We have operations in Israel and Finland where the local currency is the functional currency. Assets and liabilities of foreign operations are translated at period-end rates of exchange, and results of operations are translated at the average rates of exchange for the period. Gains or losses resulting from translating the foreign currency financial statements were accumulated as a separate component of Accumulated other comprehensive income (loss) in Stockholders’ Equity/Accumulated Net Parent Investment. Gains or losses resulting from foreign currency transactions are included in Other income (expense), net. |
New Accounting Guidance‑ Recently Adopted and Not Yet Adopted | New Accounting Guidance‑ Recently Adopted The FASB issued ASU No. 2021-05, Leases (Topic 842): Lessors – Certain Leases with Variable Lease Payments, on July 19, 2021. The new guidance requires the lessor to classify a lease with variable lease payments that do not depend on an index or a rate as an operating lease at lease commencement if classifying the lease as a sales-type lease or direct financing lease would result in the recognition of a selling loss. We adopted this standard during the third quarter of 2021 on a prospective basis. The adoption of this guidance did not have a material effect on our consolidated financial statements. New Accounting Guidance‑ Not Yet Adopted The FASB issued ASU No. 2020-04 and subsequently ASU No. 2021-01, Reference Rate Reform (Topic 848) in March 2020 and January 2021, respectively. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contract modifications and hedging relationships, including derivative instruments impacted by changes in the interest rates used for discounting cash flows for computing variable margin settlements, subject to meeting certain criteria, that reference LIBOR or other reference rates expected to be discontinued, in 2022 or potentially 2023 (pending possible extension). The ASUs establish certain contract modification principles that entities can apply in other areas that may be affected by reference rate reform and certain elective hedge accounting expedients and exceptions. The ASUs may be applied prospectively. We do not expect a material impact on our consolidated financial statements from the adoption of this guidance. We do not expect that any other recently issued accounting guidance will have a significant effect on our consolidated financial statements. |
Description of the Business a_3
Description of the Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of the Use of Proceeds From Offering | In connection with the above, we consummated a series of organizational transactions, including amending and restating our articles of incorporation to provide for Class A common stock and Class B common stock, resulting in the use of net proceeds from the IPO and the underwriters’ exercise of the over-allotment option after deducting the underwriting discount, as follows: Amount Note To acquire 20,725,319 LLC Interests from SG Social Holding Company I, LLC (1) $ 311.7 (A) To acquire 1,994,681 newly issued LLC Interests from SciPlay Parent LLC 30.0 (B) Net proceeds after deducting underwriting discount $ 341.7 (A) SG Social Holding Company I, LLC subsequently used these proceeds as follows: Acquire IP License from Parent (“Upfront License Payment”) (2) $ 255.0 Distributed as a dividend to Parent 56.7 $ 311.7 (B) SciPlay Parent LLC subsequently used the proceeds as follows: Fees and expenses incurred in connection with the IPO $ 9.3 General corporate purposes, including a portion of contingent acquisition consideration 20.7 $ 30.0 (1) An unconsolidated intermediate holding company. (2) Such rights, duties, obligations and interest under the IP License Agreement were assigned to SciPlay. |
Schedule of Disaggregation of Revenue | The following table presents our revenue disaggregated by type of platform: Years Ended December 31, 2021 2020 2019 Mobile $ 537.3 $ 505.9 $ 391.0 Web and other 68.8 76.3 74.8 Total revenue $ 606.1 $ 582.2 $ 465.8 The following table presents our revenue disaggregated based on the geographical location of our players: Years Ended December 31, 2021 2020 2019 North America (1) $ 555.5 $ 533.3 $ 422.4 International 50.6 48.9 43.4 Total revenue $ 606.1 $ 582.2 $ 465.8 (1) North America revenue includes revenue derived from the U.S., Canada, and Mexico. For the years ended December 31, 2021, 2020, and 2019, U.S. revenue was $515.8 million, $496.0 million, and $395.3 million, respectively. |
Schedule of Balances in Receivables and Contract Asset and Liability Accounts | The following table summarizes our opening and closing balances in contract assets, contract liabilities and accounts receivable: Accounts Receivable Contract Assets (1) Contract Liabilities (2) Balance as of January 1, 2021 $ 36.6 $ 0.2 $ 0.6 Balance as of December 31, 2021 39.6 0.2 0.5 (1) Contract assets are included within Prepaid expenses and other current assets in our consolidated balance sheets. |
Schedules of Concentration of Risk | The following tables summarize the percentage of revenues and accounts receivable generated via our platform providers in excess of 10% of our total revenues and total accounts receivable: Revenue Accounts Years Ended December 31, As of December 31, 2021 2020 2019 2021 2020 Apple 47.1 % 46.3 % 44.8 % 49.8 % 49.2 % Google 36.7 % 37.1 % 35.9 % 33.9 % 35.4 % Facebook 12.4 % 13.1 % 16.7 % 12.1 % 11.5 % |
Schedule of Contingent Consideration Classification | The following table summarizes our contingent acquisition consideration liabilities: As of December 31, 2021 2020 Contingent acquisition consideration included in accrued liabilities $ 1.0 $ 1.0 Contingent acquisition consideration included in other long-term liabilities — 2.4 |
Schedule of Amortization Expense | The following reflects amortization expense related to these licenses and recorded in depreciation and amortization: Years Ended December 31, 2021 2020 2019 Amortization expense $ 4.6 $ 1.2 $ 0.8 The following reflects amortization expense related to intangible assets included within depreciation and amortization: Years Ended December 31, 2021 2020 2019 Amortization expense $ 13.7 $ 8.0 $ 6.1 |
Schedule of Total Minimum Guaranteed Obligations | The following are our total minimum guaranteed obligations for the periods presented: As of December 31, 2021 2020 Current liabilities $ 3.7 $ 2.6 Other long-term liabilities 11.2 0.3 Total minimum guarantee obligation $ 14.9 $ 2.9 Weighted average remaining term (in years) 3.9 2.4 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: . As of December 31, 2021 2020 Prepaid expenses and other $ 4.6 $ 4.1 Income tax receivable 1.6 1.6 Contract assets 0.2 0.2 $ 6.4 $ 5.9 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Property and equipment, net are stated at cost, and when placed in service, are depreciated using the straight-line method over the estimated useful lives of the assets as follows: Item Estimated Life in Years Computer equipment 3 - 5 Furniture and fixtures 5 - 10 Leasehold improvements Shorter of the estimated useful life or remaining lease term Property and equipment, net consisted of the following: As of December 31, 2021 2020 Computer equipment $ 5.7 $ 5.0 Furniture and fixtures 2.1 2.1 Leasehold improvements and other 3.1 2.9 Less: accumulated depreciation and amortization (7.4) (5.6) Total property and equipment, net $ 3.5 $ 4.4 The following reflects depreciation and amortization expense related to property and equipment included within depreciation and amortization: Years Ended December 31, 2021 2020 2019 Depreciation and amortization expense $ 1.8 $ 1.7 $ 0.9 |
Goodwill, Intangible Assets a_2
Goodwill, Intangible Assets and Software, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The table below reconciles the changes in the carrying value of goodwill for the period from December 31, 2019 to December 31, 2021. Total Balance as of December 31, 2019 $ 120.7 Acquired Goodwill 6.9 Foreign currency adjustments 2.2 Balance as of December 31, 2020 129.8 Foreign currency adjustments 1.3 Balance as of December 31, 2021 $ 131.1 |
Schedule of Intangible Assets | The following table presents certain information regarding our intangible assets: Gross Accumulated Net Balance as of December 31, 2021 Amortizable intangible assets: Intellectual property $ 49.6 $ (40.4) $ 9.2 Customer relationships 30.7 (22.1) 8.6 Software 28.1 (17.8) 10.3 Licenses 23.6 (4.5) 19.1 Brand names and other 6.7 (4.3) 2.4 $ 138.7 $ (89.1) $ 49.6 Balance as of December 31, 2020 Amortizable intangible assets: Intellectual property $ 42.2 $ (37.2) $ 5.0 Customer relationships 30.5 (19.8) 10.7 Software 21.9 (13.8) 8.1 Licenses 7.7 (3.5) 4.2 Brand names 6.1 (3.8) 2.3 $ 108.4 $ (78.1) $ 30.3 . |
Schedule of Amortization Expense | The following reflects amortization expense related to these licenses and recorded in depreciation and amortization: Years Ended December 31, 2021 2020 2019 Amortization expense $ 4.6 $ 1.2 $ 0.8 The following reflects amortization expense related to intangible assets included within depreciation and amortization: Years Ended December 31, 2021 2020 2019 Amortization expense $ 13.7 $ 8.0 $ 6.1 |
Schedule of Estimated Future Amortization Expense | Estimated amortization expense for the years ending December 31, 2022 through 2026 and thereafter is as follows: Year Expense 2022 $ 14.9 2023 12.9 2024 9.9 2025 7.3 2026 2.6 Thereafter 2.0 $ 49.6 |
Accrued liabilities (Tables)
Accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: As of December 31, 2021 2020 Legal contingencies (see Note 11) $ 24.5 $ — Compensation and benefits 11.7 10.8 Liabilities under the TRA 4.1 4.0 License minimum guarantees 3.7 — Operating lease liabilities 2.2 2.0 Contingent acquisition consideration 1.0 1.0 Income and other taxes 0.4 3.1 Other 2.6 2.0 $ 50.2 $ 22.9 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Supplemental Operating Lease Information | Supplemental balance sheet and cash flow information related to operating leases is as follows: December 31, 2021 December 31, 2020 Operating lease right-of-use assets (1) $ 6.8 $ 8.5 Accrued liabilities 2.2 2.0 Operating lease liabilities 5.4 7.5 Total operating lease liabilities $ 7.6 $ 9.5 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2.4 $ 2.4 Weighted average remaining lease term, years 3.27 4.26 Weighted average discount rate 5.0 % 5.0 % (1) Right-of-use assets obtained in exchange for lease obligations for the year ended December 31, 2021 were immaterial. |
Schedule of Maturities of Lease Liabilities | Lease liability maturities: Operating Leases 2022 $ 2.5 2023 2.6 2024 2.4 2025 0.7 Less: Imputed Interest (0.6) Total $ 7.6 |
Stockholders_ Equity and Nonc_2
Stockholders’ Equity and Noncontrolling Interest (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Summary of Stock-based Compensation Expense | The following table summarizes stock‑based compensation expense that is included in general and administrative expenses: Years Ended December 31, 2021 2020 2019 Related to SciPlay equity awards $ 6.8 $ 21.4 $ 5.7 Related to the Parent’s equity awards 0.4 0.6 3.2 Total $ 7.2 $ 22.0 $ 8.9 |
Schedule of Unvested RSUs | A summary of changes in unvested RSUs under our equity-based compensation plans during 2021 is presented below: Number of Shares Weighted Average Grant Date Fair Value Unvested RSU as of December 31, 2020 588,461 $ 12.24 Granted 434,262 $ 18.40 Vested (262,668) $ 11.19 Cancelled (82,894) $ 13.17 Unvested RSU as of December 31, 2021 677,161 $ 14.74 |
Schedule of Unvested PRSUs | The following is a summary of changes in unvested PRSUs during 2021: Number of Shares Weighted Average Grant Date Fair Value Unvested PRSU as of December 31, 2020 3,533,566 $ 15.77 Granted 1,169,435 $ 17.22 Vested (2,157,264) $ 15.81 Cancelled (1,094,194) $ 16.08 Unvested PRSU as of December 31, 2021 1,451,543 $ 17.13 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Years Ended December 31, 2021 2020 2019 Numerator: Net income $ 125.0 $ 146.0 $ 93.5 Less: net income attributable to SG Social Holding Company II, LLC prior to IPO — — 20.4 Less: net income attributable to the noncontrolling interest 105.7 125.1 61.1 Net income attributable to SciPlay $ 19.3 $ 20.9 $ 12.0 Denominator: Weighted average shares of Class A common stock for basic EPS 24.2 22.8 22.7 Effect of dilutive securities: Stock-based compensation grants 0.8 1.6 — Weighted average shares of Class A common stock for diluted EPS 25.0 24.4 22.7 Basic and diluted net income attributable to SciPlay per share: Basic $ 0.80 $ 0.92 $ 0.53 Diluted $ 0.77 $ 0.86 $ 0.53 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Net Income before Income Taxes | The components of Net income before income taxes are as follows: Years Ended December 31, 2021 2020 2019 United States $ 128.6 $ 155.0 $ 101.1 Foreign 2.1 (0.6) 1.1 Net income before income taxes $ 130.7 $ 154.4 $ 102.2 |
Schedule of Components of Income Tax Expense | The components of income tax expense are as follows: Years Ended December 31, 2021 2020 2019 Current U.S. Federal $ 0.4 $ 1.7 $ 5.4 U.S. State 0.4 1.3 1.5 Foreign 1.2 1.0 0.9 Total $ 2.0 $ 4.0 $ 7.8 Deferred U.S. Federal 4.4 3.6 0.6 U.S. State 0.2 0.9 0.5 Foreign (0.9) (0.1) (0.2) Total 3.7 4.4 0.9 Total income tax expense $ 5.7 $ 8.4 $ 8.7 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of the U.S. federal statutory tax rate to the actual tax rate is as follows: Years Ended December 31, 2021 2020 2019 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % U.S. state income taxes, net of federal benefit 0.5 % 1.3 % 1.7 % Noncontrolling interest (16.7) % (17.3) % (12.2) % Other (0.4) % 0.4 % (2.0) % Effective income tax rate 4.4 % 5.4 % 8.5 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of significant temporary differences representing net deferred tax assets and liabilities consisted of the following: As of December 31, 2021 2020 Deferred tax assets: Investment in LLC $ 73.1 $ 74.3 TRA liability 16.7 17.5 Other 1.5 0.7 Valuation allowance (12.1) (9.6) Realizable deferred tax assets 79.2 82.9 Deferred tax liabilities: Difference in financial reporting and tax basis for: Identifiable intangible assets (3.5) (2.9) Other (0.7) — Total deferred tax liabilities (4.2) (2.9) Net deferred tax assets on balance sheet $ 75.0 $ 80.0 |
Schedule of Valuation Allowance [Table Text Block] | The following table summarizes our valuation allowances: As of December 31, 2021 2020 Federal $ (10.5) $ (8.4) State (1.6) (1.2) Foreign — — $ (12.1) $ (9.6) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following is the summary of expenses paid to Scientific Games and settled in cash: Years Ended December 31, 2021 2020 2019 Financial Statement Line Item Royalties for Scientific Games IP (1) $ — $ — $ 10.2 Cost of revenue Royalties to Scientific Games for third-party IP 2.6 7.0 6.9 Cost of revenue Parent services 5.8 5.9 5.0 General and administrative TRA payments (2) 3.8 2.5 — Accrued liabilities Distributions to Parent and affiliates, net (2) 30.0 12.8 — Noncontrolling interest (1) In accordance with the IP License Agreement, we did not incur any additional royalty expense related to Scientific Games IP after the effective date of the IP License Agreement. The following is the summary of balances due to affiliates: As of December 31, 2021 2020 Royalties to Scientific Games for third-party IP $ 0.3 $ 2.5 Parent services 0.9 0.8 Reimbursable expenses to (from) Scientific Games and its subsidiaries 0.4 2.2 $ 1.6 $ 5.5 |
Description of the Business a_4
Description of the Business and Summary of Significant Accounting Policies - Narrative (Details) | Nov. 23, 2021USD ($) | May 07, 2019USD ($) | Jul. 31, 2021USD ($) | Jun. 30, 2020USD ($) | May 31, 2019USD ($)shares | Jun. 30, 2020USD ($) | Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Number of operating segments | segment | 1 | ||||||||||
Conversion ratio | 100.00% | ||||||||||
Offering expenses | $ 9,300,000 | $ 0 | $ 0 | $ 9,300,000 | |||||||
Economic interests called by common stock units | 19.20% | ||||||||||
Cash and cash equivalents | $ 364,400,000 | 268,900,000 | 110,600,000 | $ 10,000,000 | |||||||
Allowance for doubtful accounts | 0 | 0 | |||||||||
Allowance for doubtful accounts, writeoff | 0 | 0 | 0 | ||||||||
Allowance for doubtful accounts, recovery | 0 | 0 | 0 | ||||||||
Revenue recognized | 600,000 | 600,000 | |||||||||
Advertising costs | 123,100,000 | 123,000,000 | 123,600,000 | ||||||||
Lawsuit settlement | $ 24,500,000 | 24,500,000 | 0 | 0 | |||||||
Contingent acquisition consideration fair value adjustment | 1,500,000 | 0 | (1,700,000) | ||||||||
Cash paid, net of cash acquired | 5,700,000 | 12,600,000 | 0 | ||||||||
Goodwill acquired | 6,900,000 | ||||||||||
Capitalized debt issuance costs | $ 1,100,000 | ||||||||||
Koukoi Games Oy | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Cash consideration for assets | $ 5,400,000 | ||||||||||
Intellectual property | Koukoi Games Oy | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Useful lives | 5 years | ||||||||||
IPO | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Shares offered in public offering (in shares) | shares | 22,720,000 | ||||||||||
Proceeds from public offering | $ 341,700,000 | ||||||||||
Conversion ratio | 100.00% | ||||||||||
Offering expenses | $ 9,300,000 | ||||||||||
Percentage of tax benefits | 85.00% | ||||||||||
IPO | Class A common stock | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Economic interests called by common stock units | 100.00% | ||||||||||
Spicerack Media and Come2Play | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Contingent consideration maximum payout | 6,000,000 | ||||||||||
Spicerack Media | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Contingent consideration | $ 31,000,000 | ||||||||||
Contingent consideration paid | 4,000,000 | $ 27,000,000 | |||||||||
Come2Play | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Contingent consideration | $ 3,700,000 | $ 3,700,000 | |||||||||
Consideration transferred | 17,800,000 | 17,800,000 | |||||||||
Contingent acquisition consideration fair value adjustment | 1,500,000 | ||||||||||
Contingent consideration paid | 1,000,000 | $ 500,000 | |||||||||
Acquired intangible assets | 12,700,000 | 12,700,000 | |||||||||
Goodwill acquired | 6,900,000 | ||||||||||
Goodwill expected to be tax deductible | $ 0 | 0 | |||||||||
Come2Play | Customer relationships | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Useful lives | 7 years | ||||||||||
Acquired intangible assets | $ 6,800,000 | 6,800,000 | |||||||||
Come2Play | Intellectual property | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Useful lives | 5 years | ||||||||||
Acquired intangible assets | $ 4,100,000 | 4,100,000 | |||||||||
Come2Play | Brand names and other | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Useful lives | 7 years | ||||||||||
Acquired intangible assets | $ 1,800,000 | $ 1,800,000 | |||||||||
SciPlay Revolver, Maturing 2024 | Revolving Credit Facility | IPO | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Principal debt amount | $ 150,000,000 | ||||||||||
Commitment fee | 0.375% | 0.50% | |||||||||
Maturity of debt | 5 years | ||||||||||
Leverage ratio | 0.375% | ||||||||||
Fronting fee | 0.125% | ||||||||||
Net leverage ratio | 2.50 | ||||||||||
Fixed charge coverage ratio (no less than) | 4 | ||||||||||
Debt outstanding | $ 0 | ||||||||||
Unused commitment fees | 600,000 | ||||||||||
SciPlay Revolver, Maturing 2024 | Letter of Credit | IPO | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Letter of credit issuances available | $ 15,000,000 | ||||||||||
LIBOR | SciPlay Revolver, Maturing 2024 | Revolving Credit Facility | IPO | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Basis spread on variable rate | 2.25% | ||||||||||
LIBOR, Leveraged Base Step Down | SciPlay Revolver, Maturing 2024 | Revolving Credit Facility | IPO | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Basis spread on variable rate | 0.25% | ||||||||||
Base Rate | SciPlay Revolver, Maturing 2024 | Revolving Credit Facility | IPO | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Basis spread on variable rate | 1.25% | ||||||||||
Foreign Countries, Outside of United States | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Cash and cash equivalents | $ 7,300,000 | $ 5,600,000 |
Description of the Business a_5
Description of the Business and Summary of Significant Accounting Policies - Schedule of the Use of Proceeds From Offering (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
May 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Subsidiary, Sale of Stock [Line Items] | ||||
Fees and expenses incurred in connection with the IPO | $ 9.3 | $ 0 | $ 0 | $ 9.3 |
SG Social Holding Company I, LLC | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares acquired (in shares) | 20,725,319 | |||
SciPlay Parent LLC | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares acquired (in shares) | 1,994,681 | |||
IPO | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Proceeds from public offering | $ 341.7 | |||
Fees and expenses incurred in connection with the IPO | 9.3 | |||
IPO | SG Social Holding Company I, LLC | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Proceeds from public offering | 311.7 | |||
IPO | SciPlay Parent LLC | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Proceeds from public offering | 30 | |||
SG Social Holding Company I, LLC | IPO | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Proceeds from public offering | 311.7 | |||
SciPlay Parent LLC | IPO | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Proceeds from public offering | 30 | |||
General Corporate Purposes | SciPlay Parent LLC | IPO | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Proceeds from public offering | 20.7 | |||
Dividend Paid | SG Social Holding Company I, LLC | IPO | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Proceeds from public offering | 56.7 | |||
Intellectual property | SG Social Holding Company I, LLC | IPO | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Proceeds from public offering | $ 255 |
Description of the Business a_6
Description of the Business and Summary of Significant Accounting Policies - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 606.1 | $ 582.2 | $ 465.8 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 555.5 | 533.3 | 422.4 |
International | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 50.6 | 48.9 | 43.4 |
UNITED STATES | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 515.8 | 496 | 395.3 |
Mobile | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 537.3 | 505.9 | 391 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 68.8 | $ 76.3 | $ 74.8 |
Description of the Business a_7
Description of the Business and Summary of Significant Accounting Policies - Schedule of Balances in Receivables and Contract Asset and Liability Accounts (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts Receivable | $ 39.6 | $ 36.6 |
Contract Assets | 0.2 | 0.2 |
Contract Liabilities | $ 0.5 | $ 0.6 |
Description of the Business a_8
Description of the Business and Summary of Significant Accounting Policies - Schedule of Concentration Risk (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Apple | Revenue Concentration | |||
Concentration Risk [Line Items] | |||
Concentration risk | 47.10% | 46.30% | 44.80% |
Apple | Accounts Receivable Concentration | |||
Concentration Risk [Line Items] | |||
Concentration risk | 49.80% | 49.20% | |
Google | Revenue Concentration | |||
Concentration Risk [Line Items] | |||
Concentration risk | 36.70% | 37.10% | 35.90% |
Google | Accounts Receivable Concentration | |||
Concentration Risk [Line Items] | |||
Concentration risk | 33.90% | 35.40% | |
Facebook | Revenue Concentration | |||
Concentration Risk [Line Items] | |||
Concentration risk | 12.40% | 13.10% | 16.70% |
Facebook | Accounts Receivable Concentration | |||
Concentration Risk [Line Items] | |||
Concentration risk | 12.10% | 11.50% |
Description of the Business a_9
Description of the Business and Summary of Significant Accounting Policies - Schedule of Contingent Consideration Classification (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Contingent acquisition consideration included in accrued liabilities | $ 1 | $ 1 |
Contingent acquisition consideration included in other long-term liabilities | $ 0 | $ 2.4 |
Description of the Business _10
Description of the Business and Summary of Significant Accounting Policies - Schedule of Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 13.7 | $ 8 | $ 6.1 |
Licenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 4.6 | $ 1.2 | $ 0.8 |
Description of the Business _11
Description of the Business and Summary of Significant Accounting Policies - Schedule of Total Minimum Guaranteed Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Current liabilities | $ 3.7 | $ 2.6 |
Other long-term liabilities | 11.2 | 0.3 |
Total minimum guarantee obligation | $ 14.9 | $ 2.9 |
Weighted average remaining term (in years) | 3 years 10 months 24 days | 2 years 4 months 24 days |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses and other | $ 4.6 | $ 4.1 |
Income tax receivable | 1.6 | 1.6 |
Contract assets | 0.2 | 0.2 |
Prepaid expenses and other current assets | $ 6.4 | $ 5.9 |
Property and equipment, net - E
Property and equipment, net - Estimated Lives of Assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated life in years | 3 years |
Minimum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated life in years | 5 years |
Maximum | Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated life in years | 5 years |
Maximum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated life in years | 10 years |
Property and equipment, net - S
Property and equipment, net - Schedule of Property and equipment, net (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation and amortization | $ (7.4) | $ (5.6) |
Property and equipment, net | 3.5 | 4.4 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5.7 | 5 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2.1 | 2.1 |
Leasehold improvements and other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3.1 | $ 2.9 |
Property and equipment, net - D
Property and equipment, net - Depreciation and Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 15.5 | $ 9.7 | $ 7 |
Depreciation and amortization expense | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 1.8 | $ 1.7 | $ 0.9 |
Goodwill, Intangible Assets a_3
Goodwill, Intangible Assets and Software, net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Finite-Lived And Indefinite-Lived Intangible Assets By Major Class [Line Items] | |||
Goodwill | $ 131.1 | $ 129.8 | $ 120.7 |
Goodwill acquired | $ 6.9 | ||
Minimum | Koukoi Games Oy | |||
Schedule Of Finite-Lived And Indefinite-Lived Intangible Assets By Major Class [Line Items] | |||
Useful lives | 3 years | ||
Maximum | Koukoi Games Oy | |||
Schedule Of Finite-Lived And Indefinite-Lived Intangible Assets By Major Class [Line Items] | |||
Useful lives | 10 years |
Goodwill, Intangible Assets a_4
Goodwill, Intangible Assets and Software, net - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 129.8 | $ 120.7 |
Acquired Goodwill | 6.9 | |
Foreign currency adjustments | 1.3 | 2.2 |
Goodwill, ending balance | $ 131.1 | $ 129.8 |
Goodwill, Intangible Assets a_5
Goodwill, Intangible Assets and Software, net - Schedule of Information Regarding Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | $ 138.7 | $ 108.4 |
Amortizable intangible assets, accumulated amortization | (89.1) | (78.1) |
Amortizable intangible assets, net balance | 49.6 | 30.3 |
Intellectual property | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | 49.6 | 42.2 |
Amortizable intangible assets, accumulated amortization | (40.4) | (37.2) |
Amortizable intangible assets, net balance | 9.2 | 5 |
Customer relationships | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | 30.7 | 30.5 |
Amortizable intangible assets, accumulated amortization | (22.1) | (19.8) |
Amortizable intangible assets, net balance | 8.6 | 10.7 |
Software | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | 28.1 | 21.9 |
Amortizable intangible assets, accumulated amortization | (17.8) | (13.8) |
Amortizable intangible assets, net balance | 10.3 | 8.1 |
Licenses | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | 23.6 | 7.7 |
Amortizable intangible assets, accumulated amortization | (4.5) | (3.5) |
Amortizable intangible assets, net balance | 19.1 | 4.2 |
Brand names and other | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | 6.7 | 6.1 |
Amortizable intangible assets, accumulated amortization | (4.3) | (3.8) |
Amortizable intangible assets, net balance | $ 2.4 | $ 2.3 |
Goodwill, Intangible Assets a_6
Goodwill, Intangible Assets and Software, net - Schedule of Intangible Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 13.7 | $ 8 | $ 6.1 |
Goodwill, Intangible Assets a_7
Goodwill, Intangible Assets and Software, net - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 14.9 | |
2023 | 12.9 | |
2024 | 9.9 | |
2025 | 7.3 | |
2026 | 2.6 | |
Thereafter | 2 | |
Amortizable intangible assets, net balance | $ 49.6 | $ 30.3 |
Accrued liabilities (Details)
Accrued liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Legal contingencies | $ 24.5 | $ 0 |
Compensation and benefits | 11.7 | 10.8 |
Liabilities under the TRA | 4.1 | 4 |
License minimum guarantees | 3.7 | 0 |
Operating lease liabilities | $ 2.2 | $ 2 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Contingent acquisition consideration | $ 1 | $ 1 |
Income and other taxes | 0.4 | 3.1 |
Other | 2.6 | 2 |
Accrued liabilities | $ 50.2 | $ 22.9 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2021 |
Leases [Abstract] | |
Operating ease, remaining lease term | 3 years |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Operating Lease Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 6.8 | $ 8.5 | |
Accrued liabilities | $ 2.2 | $ 2 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities | |
Operating lease liabilities | $ 5.4 | $ 7.5 | |
Total operating lease liabilities | 9.5 | $ 7.6 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for operating leases | $ 2.4 | $ 2.4 | |
Weighted average remaining lease term, years | 3 years 3 months 7 days | 4 years 3 months 3 days | |
Weighted average discount rate | 5.00% | 5.00% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Millions | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 2.5 |
2023 | 2.6 |
2024 | 2.4 |
2025 | 0.7 |
Less: Imputed Interest | (0.6) |
Total | $ 7.6 |
Stockholders_ Equity and Nonc_3
Stockholders’ Equity and Noncontrolling Interest - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)vote$ / sharesshares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | |
Class of Stock [Line Items] | |||
Number of votes per common stock | vote | 1 | ||
Ownership percentage threshold | 10.00% | ||
Economic interests called by common stock units | 19.20% | ||
Scientific Games Corporation | SciPlay Corporation | |||
Class of Stock [Line Items] | |||
Ownership interest | 97.70% | ||
Restricted Stock | |||
Class of Stock [Line Items] | |||
Granted (in dollars per in share) | $ / shares | $ 18.40 | $ 12.66 | $ 12.21 |
Unrecognized stock-based compensation expense, other than options | $ 9.1 | ||
Unrecognized stock-based compensation expense, other than options, period expected to be recognized | 1 year 4 months 24 days | ||
Fair value at vesting date | $ 4.6 | $ 1.7 | $ 0 |
Performance Shares | |||
Class of Stock [Line Items] | |||
Granted (in dollars per in share) | $ / shares | $ 17.22 | $ 14.94 | $ 15.76 |
Unrecognized stock-based compensation expense, other than options | $ 4.1 | ||
Unrecognized stock-based compensation expense, other than options, period expected to be recognized | 1 year | ||
Fair value at vesting date | $ 38.1 | $ 0.5 | $ 0 |
Class A common stock | |||
Class of Stock [Line Items] | |||
Number of votes per common stock | vote | 1 | ||
Class B common stock | |||
Class of Stock [Line Items] | |||
Number of votes per common stock | vote | 10 | ||
Affiliated Entity | |||
Class of Stock [Line Items] | |||
Economic interests called by common stock units | 80.80% | ||
LTIP | Class A common stock | |||
Class of Stock [Line Items] | |||
Number of incentive shares authorized (in shares) | shares | 6,500,000 | ||
Employee Stock Purchase Plan | |||
Class of Stock [Line Items] | |||
Number of incentive shares authorized (in shares) | shares | 250,000 | ||
Number of shares issued | shares | 28,639 | ||
Average issue price ( in dollars per share) | $ / shares | $ 12.73 |
Stockholders_ Equity and Nonc_4
Stockholders’ Equity and Noncontrolling Interest - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 7.2 | $ 22 | $ 8.9 |
LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 6.8 | 21.4 | 5.7 |
Equity Incentive Award Plan, Parent | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 0.4 | $ 0.6 | $ 3.2 |
Stockholders_ Equity and Nonc_5
Stockholders’ Equity and Noncontrolling Interest - Schedule of Unvested RSUs (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | |||
Unvested, beginning balance (in shares) | 588,461 | ||
Granted (in shares) | 434,262 | ||
Vested (in shares) | (262,668) | ||
Cancelled (in shares) | (82,894) | ||
Unvested, ending balance (in shares) | 677,161 | 588,461 | |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning balance (in dollars per share) | $ 12.24 | ||
Granted (in dollars per in share) | 18.40 | $ 12.66 | $ 12.21 |
Vested (in dollars per in share) | 11.19 | ||
Cancelled (in dollars per share) | 13.17 | ||
Unvested, ending balance (in dollars per share) | $ 14.74 | $ 12.24 |
Stockholders_ Equity and Nonc_6
Stockholders’ Equity and Noncontrolling Interest - Schedule of Unvested PRSUs (Details) - Performance Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | |||
Unvested, beginning balance (in shares) | 3,533,566 | ||
Granted (in shares) | 1,169,435 | ||
Vested (in shares) | (2,157,264) | ||
Cancelled (in shares) | (1,094,194) | ||
Unvested, ending balance (in shares) | 1,451,543 | 3,533,566 | |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning balance (in dollars per share) | $ 15.77 | ||
Granted (in dollars per in share) | 17.22 | $ 14.94 | $ 15.76 |
Vested (in dollars per in share) | 15.81 | ||
Cancelled (in dollars per share) | 16.08 | ||
Unvested, ending balance (in dollars per share) | $ 17.13 | $ 15.77 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |||
May 07, 2019 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Earnings Per Share [Abstract] | ||||||
Net income | $ 20.4 | $ 73.1 | $ 125 | $ 146 | $ 93.5 | |
Less: net income attributable to SG Social Holding Company II, LLC prior to IPO | 0 | 0 | 20.4 | |||
Less: Net income attributable to the noncontrolling interest | 105.7 | 125.1 | 61.1 | |||
Net income attributable to SciPlay, basic | 19.3 | 20.9 | 12 | |||
Net income attributable to SciPlay, diluted | $ 19.3 | $ 20.9 | $ 12 | |||
Denominator: | ||||||
Weighted average shares of Class A common stock for basic EPS (in shares) | 24.2 | 22.8 | 22.7 | |||
Effect of dilutive securities: | ||||||
Stock-based compensation grants (in shares) | 0.8 | 1.6 | 0 | |||
Weighted average shares of Class A common stock for diluted EPS | 25 | 24.4 | 22.7 | |||
Basic and diluted net income attributable to SciPlay per share: | ||||||
Basic (in dollars per share) | [1] | $ 0.80 | $ 0.92 | $ 0.53 | ||
Diluted (in dollars per share) | [1] | $ 0.77 | $ 0.86 | $ 0.53 | ||
[1] | (3) Basic and diluted EPS is calculated including only net income attributable to SciPlay generated from May 7, 2019, the period following our IPO in which we had outstanding Class A common stock. See Note 1 — Description of the Business and Summary of Significant Accounting Policies for further information regarding SciPlay Corporation’s IPO. See Note 8 — Earnings Per Share for further details regarding the computation of earnings per share. |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Line Items] | |||
Economic interests called by common stock units | 19.20% | ||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 21.00% |
Tax receivable liability, percentage of total tax savings associated with the step-up in basis of depreciable asset | 85.00% | ||
Unrecognized tax benefits | $ 0 | $ 0 | |
Affiliated Entity | |||
Income Tax Disclosure [Line Items] | |||
Economic interests called by common stock units | 80.80% | ||
SciPlay Parent LLC | |||
Income Tax Disclosure [Line Items] | |||
Economic interests called by common stock units | 19.20% | ||
SciPlay Parent LLC | Affiliated Entity | |||
Income Tax Disclosure [Line Items] | |||
Economic interests called by common stock units | 80.80% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Net Income before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 128.6 | $ 155 | $ 101.1 |
Foreign | 2.1 | (0.6) | 1.1 |
Net income before income taxes | $ 130.7 | $ 154.4 | $ 102.2 |
Income Taxes - Schedule of Co_2
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | |||
U.S. Federal | $ 0.4 | $ 1.7 | $ 5.4 |
U.S. State | 0.4 | 1.3 | 1.5 |
Foreign | 1.2 | 1 | 0.9 |
Total | 2 | 4 | 7.8 |
Deferred | |||
U.S. Federal | 4.4 | 3.6 | 0.6 |
U.S. State | 0.2 | 0.9 | 0.5 |
Foreign | (0.9) | (0.1) | (0.2) |
Total | 3.7 | 4.4 | 0.9 |
Income tax expense | $ 5.7 | $ 8.4 | $ 8.7 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 21.00% |
U.S. state income taxes, net of federal benefit | 0.50% | 1.30% | 1.70% |
Noncontrolling interest | (16.70%) | (17.30%) | (12.20%) |
Other | (0.40%) | 0.40% | (2.00%) |
Effective income tax rate | 4.40% | 5.40% | 8.50% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Investment in LLC | $ 73.1 | $ 74.3 |
TRA liability | 16.7 | 17.5 |
Other | 1.5 | 0.7 |
Valuation allowance | (12.1) | (9.6) |
Realizable deferred tax assets | 79.2 | 82.9 |
Deferred tax liabilities: | ||
Identifiable intangible assets | (3.5) | (2.9) |
Other | (0.7) | 0 |
Total deferred tax liabilities | (4.2) | (2.9) |
Net deferred tax assets on balance sheet | $ 75 | $ 80 |
Income Taxes - Schedule of Valu
Income Taxes - Schedule of Valuation Allowance (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ (12.1) | $ (9.6) |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | (10.5) | (8.4) |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | (1.6) | (1.2) |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 0 | $ 0 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Parent services | $ 5.8 | $ 5.9 | $ 5 |
Distributions to Parent and affiliates, net | 30 | 12.8 | 0 |
Total due to (from) related parties | 1.6 | 5.5 | |
Tax Receivable Agreement | SG Holding I | |||
Related Party Transaction [Line Items] | |||
TRA Payments | 3.8 | 2.5 | 0 |
Royalties to Scientific Games for third-party IP | |||
Related Party Transaction [Line Items] | |||
Total due to (from) related parties | 0.3 | 2.5 | |
Parent services | |||
Related Party Transaction [Line Items] | |||
Total due to (from) related parties | 0.9 | 0.8 | |
Reimbursable expenses to (from) Scientific Games and its subsidiaries | |||
Related Party Transaction [Line Items] | |||
Total due to (from) related parties | 0.4 | 2.2 | |
Intellectual property | |||
Related Party Transaction [Line Items] | |||
Royalties for IP | 0 | 0 | 10.2 |
Intellectual property, Third-party | |||
Related Party Transaction [Line Items] | |||
Royalties for IP | $ 2.6 | $ 7 | $ 6.9 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Liabilities under the tax receivable agreement | $ 4.1 | $ 4 | |
Tax Receivable Agreement | SG Holding I | |||
Related Party Transaction [Line Items] | |||
Expenses paid | 3.8 | 2.5 | $ 0 |
TRA Payments | |||
Related Party Transaction [Line Items] | |||
Payments made pursuant to tax receivable agreement | 68.8 | $ 72.5 | |
IPO | Intellectual property | Social Business Segment | |||
Related Party Transaction [Line Items] | |||
Purchase price of license | $ 255 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Nov. 23, 2021 | Nov. 16, 2021 | Oct. 14, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | ||||||
Employer matching contribution, percent of match | 6.00% | |||||
Contribution expense | $ 2,300 | $ 1,800 | $ 1,500 | |||
Lawsuit settlement | $ 24,500 | $ 24,500 | $ 0 | $ 0 | ||
Insurance recoveries | $ 8,275 | |||||
SciPlay IPO Matter | ||||||
Subsequent Event [Line Items] | ||||||
Damages sought | $ 146,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Mar. 01, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 02, 2022 |
Subsequent Event [Line Items] | |||||
Cash paid, net of cash acquired | $ 5,700,000 | $ 12,600,000 | $ 0 | ||
Subsequent Event | Alictus | |||||
Subsequent Event [Line Items] | |||||
Voting interests acquired | 80.00% | ||||
Cash paid, net of cash acquired | $ 101,600,000 | ||||
Voting interests, contingent consideration | 20.00% | ||||
Voting interests, contingent consideration, period | 5 years | ||||
Voting interests acquired, recorded | 100.00% | ||||
Contingent consideration minimum payout | $ 0 | ||||
Contingent consideration maximum payout | $ 200,000,000 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 9.6 | $ 7.7 | $ 0 |
Additions/(deductions) | 2.5 | 1.9 | 7.7 |
Balance at end of period | $ 12.1 | $ 9.6 | $ 7.7 |