COVER PAGE
COVER PAGE - shares | 3 Months Ended | |
Mar. 31, 2022 | May 05, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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, $.001 par value | |
Trading Symbol | SCPL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Central Index Key | 0001760717 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 24,661,361 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 103,547,021 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Income Statement [Abstract] | |||
Revenue | $ 158 | $ 151.1 | |
Operating expenses: | |||
Cost of revenue | [1] | 48.2 | 47.1 |
Sales and marketing | [1] | 40 | 34.7 |
General and administrative | [1] | 16.7 | 15.7 |
Research and development | [1] | 11.5 | 9.5 |
Depreciation and amortization | 4.7 | 3.4 | |
Restructuring and other | 2.2 | 0.3 | |
Operating income | 34.7 | 40.4 | |
Other expense, net | (0.5) | (0.4) | |
Net income before income taxes | 34.2 | 40 | |
Income tax expense | 2.2 | 2.1 | |
Net income | 32 | 37.9 | |
Less: Net income attributable to the noncontrolling interest | 27.6 | 32.6 | |
Net income attributable to SciPlay | $ 4.4 | $ 5.3 | |
Basic and diluted net income attributable to SciPlay per share: | |||
Basic (in dollars per share) | $ 0.18 | $ 0.23 | |
Diluted (in dollars per share) | $ 0.18 | $ 0.21 | |
Weighted average number of shares of Class A common stock used in per share calculation: | |||
Basic shares (in shares) | 24.6 | 23.2 | |
Diluted shares (in shares) | 24.8 | 25.1 | |
[1] | (1) Excludes depreciation and amortization. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 32 | $ 37.9 |
Other comprehensive loss: | ||
Foreign currency translation loss, net of tax | (1.6) | (2.6) |
Total comprehensive income | 30.4 | 35.3 |
Less: comprehensive income attributable to the noncontrolling interest | 26.3 | 30.4 |
Comprehensive income attributable to SciPlay | $ 4.1 | $ 4.9 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 292 | $ 364.4 |
Accounts receivable, net | 42.8 | 39.6 |
Prepaid expenses and other current assets | 16.5 | 6.4 |
Total current assets | 351.3 | 410.4 |
Property and equipment, net | 3.3 | 3.5 |
Operating lease right-of-use assets | 6.2 | 6.8 |
Goodwill | 222.6 | 131.1 |
Intangible assets and software, net | 80.9 | 49.6 |
Deferred income taxes | 76.3 | 78.5 |
Other assets | 1.8 | 1.7 |
Total assets | 742.4 | 681.6 |
Current liabilities: | ||
Accounts payable | 20.6 | 20 |
Accrued liabilities | 53 | 50.2 |
Due to affiliate | 2.4 | 1.6 |
Total current liabilities | 76 | 71.8 |
Operating lease liabilities | 4.8 | 5.4 |
Liabilities under TRA | 64.7 | 64.7 |
Other long-term liabilities | 39.9 | 14.7 |
Total liabilities | 185.4 | 156.6 |
Commitments and contingencies (see Note 8) | ||
Stockholders’ equity: | ||
Additional paid-in capital | 45.6 | 45.2 |
Retained earnings | 56.6 | 52.2 |
Accumulated other comprehensive income | 0.8 | 1.1 |
Total SciPlay stockholders’ equity | 103.1 | 98.6 |
Noncontrolling interest | 453.9 | 426.4 |
Total stockholders’ equity | 557 | 525 |
Total liabilities and stockholders’ equity | 742.4 | 681.6 |
Common Class A | ||
Stockholders’ equity: | ||
Common stock | 0 | 0 |
Common Class B | ||
Stockholders’ equity: | ||
Common stock | $ 0.1 | $ 0.1 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Common Class A | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 625,000,000 | 625,000,000 |
Common stock, shares issued (in shares) | 24,700,000 | 24,500,000 |
Common stock, shares outstanding (in shares) | 24,700,000 | 24,500,000 |
Common Class B | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 130,000,000 | 130,000,000 |
Common stock, shares issued (in shares) | 103,500,000 | 103,500,000 |
Common stock, shares outstanding (in shares) | 103,500,000 | 103,500,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions | Total | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Noncontrolling interest | Common Class ACommon Stock | Common Class BCommon Stock | |
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2020 | 22.8 | 103.5 | ||||||
Stockholders' equity, beginning balance at Dec. 31, 2020 | $ 435.5 | $ 46.1 | $ 32.9 | $ 0.9 | $ 355.5 | $ 0 | $ 0.1 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 37.9 | 5.3 | 32.6 | |||||
Stock-based compensation | $ 1.8 | 0.4 | 1.4 | |||||
Vesting of RSUs, net of tax withholdings (in shares) | 1.6 | |||||||
Vesting of RSUs, net of tax withholdings and other | $ (12.3) | (2.3) | (10) | |||||
Distributions to Parent and affiliates, net | (0.3) | [1] | (0.3) | |||||
Currency translation | (2.6) | (0.4) | (2.2) | |||||
Stockholders' equity, ending balance (in shares) at Mar. 31, 2021 | 24.4 | 103.5 | ||||||
Stockholders' equity, ending balance at Mar. 31, 2021 | 460 | 44.2 | 38.2 | 0.5 | 377 | $ 0 | $ 0.1 | |
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2021 | 24.5 | 103.5 | ||||||
Stockholders' equity, beginning balance at Dec. 31, 2021 | 525 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 32 | 4.4 | 27.6 | |||||
Stock-based compensation | $ 1.9 | 0.4 | 1.5 | |||||
Vesting of RSUs, net of tax withholdings (in shares) | 0.2 | |||||||
Vesting of RSUs, net of tax withholdings and other | $ (0.1) | (0.1) | ||||||
Distributions to Parent and affiliates, net | (0.2) | [1] | (0.2) | |||||
Currency translation | (1.6) | (0.3) | (1.3) | |||||
Stockholders' equity, ending balance (in shares) at Mar. 31, 2022 | 24.7 | 103.5 | ||||||
Stockholders' equity, ending balance at Mar. 31, 2022 | $ 557 | $ 45.6 | $ 56.6 | $ 0.8 | $ 453.9 | $ 0 | $ 0.1 | |
[1] | (1) Under the terms of the Operating Agreement, SciPlay Corporation relies on distributions from SciPlay Parent LLC to pay its obligations under the TRA and any other tax obligations. All distributions must be on a pari-passu basis, thus initiating a pro-rata distribution to Parent and affiliates. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by operating activities | $ 36.6 | $ 19.6 |
Cash flows from investing activities: | ||
Capital expenditures | (2) | (2.1) |
Acquisition of business, net of cash acquired | (106.2) | 0 |
Net cash used in investing activities | (108.2) | (2.1) |
Cash flows from financing activities: | ||
Payments on license obligations | (0.4) | (1.6) |
Distributions to Light & Wonder and affiliates, net | (0.2) | (0.3) |
Taxes paid related to net share settlement of equity awards and other | (0.1) | (12.3) |
Net cash used in financing activities | (0.7) | (14.2) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (0.1) | (0.2) |
(Decrease) increase in cash, cash equivalents and restricted cash | (72.4) | 3.1 |
Cash, cash equivalents and restricted cash, beginning of period | 364.4 | 268.9 |
Cash, cash equivalents and restricted cash, end of period | (292) | (272) |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid for income taxes | 0.5 | 3.8 |
Supplemental non-cash transactions: | ||
Non-cash additions to intangible assets related to license agreements | $ 0 | $ 16.1 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
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, recently rebranded to Light & Wonder, Inc. (“Light & Wonder” and “Parent”), for the purposes 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”). The IPO was completed on May 7, 2019. 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 Jackpot Party® Casino, Quick Hit® Slots, Gold Fish® Casino, Hot Shot Casino®, Bingo Showdown®, MONOPOLY® Slots, 88 Fortunes® Slots, Solitaire Pets™ Adventure , and Backgammon Live as well as other games in the hyper-casual space through our recent acquisition of Alictus Yazilim Anonim Şirketi (“Alictus”), such as Candy Challenge 3D™ , Boss Life™ , and Deep Clean™. Our games are available in various formats. We have one operating segment with one business activity, developing and monetizing games. Basis of Presentation The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, we have made all adjustments necessary to present fairly our consolidated statements of income, consolidated statements of comprehensive income, condensed consolidated balance sheets, consolidated statements of changes in stockholders’ equity and condensed consolidated statements of cash flows for the periods presented. Such adjustments are of a normal, recurring nature. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related Notes included in our 2021 Form 10-K. Interim results of operations are not necessarily indicative of results of operations to be expected for a full year. 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 (the “Operating Agreement”), 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 do not hold majority voting rights but hold 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. Significant Accounting Policies There have been no changes to our significant accounting policies described within the Notes of our 2021 Form 10-K, except as noted below. New Accounting Guidance There have been no recent accounting pronouncements or changes in accounting pronouncements since those described within the Notes of our 2021 10-K that are expected to have a material impact on our consolidated financial statements. 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 third-party branded games. With the acquisition of Alictus, we also generate revenue from providing advertising platforms with access to our game software platform, which facilitates the placement of advertising inventory. Disaggregation of Revenue We believe disaggregation of our revenue on the basis of platform and monetization type as well as the geographical locations of our players is appropriate because the nature of revenue 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 platform type: Three Months Ended March 31, 2022 2021 Mobile in-app purchases $ 139.7 $ 132.8 Web in-app purchases and other (1) 18.3 18.3 Total revenue $ 158.0 $ 151.1 (1) Other primarily represents advertising revenue, which was not material in the periods presented. The following table presents our revenue disaggregated based on the geographical location of our players: Three Months Ended March 31, 2022 2021 North America (1) $ 144.9 $ 138.5 International 13.1 12.6 Total revenue $ 158.0 $ 151.1 (1) North America revenue includes revenue derived from the U.S., Canada and Mexico. Contract Assets, Contract Liabilities and Other Disclosures We receive customer payments based on the payment terms established in our contracts. For our in-app purchase revenue, 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) Beginning of period balance $ 39.6 $ 0.2 $ 0.5 Balance as of March 31, 2022 42.8 0.2 0.5 (1) Contract assets are included within Prepaid expenses and other current assets in our consolidated balance sheets. (2) Contract liabilities are included within Accrued liabilities in our consolidated balance sheets. During the three months ended March 31, 2022 and 2021, we recognized $0.3 million and $0.5 million, respectively, of revenue that was included in the opening contract liability balance. Substantially all of our unsatisfied performance obligations relate to contracts with an original expected length of one year or less. 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 Concentration Three Months Ended March 31, 2022 March 31, 2021 Apple 47.9% 46.8% Google 34.6% 37.3% Facebook 12.1% 12.1% Accounts Receivable Concentration as of March 31, 2022 December 31, 2021 Apple 45.9% 49.8% Google 31.3% 33.9% Facebook 10.4% 12.1% Alictus Acquisition On March 1, 2022, we acquired 80% of all issued and outstanding share capital of privately-held Alictus, a Turkey-based hyper-casual gaming studio. The remaining 20% will be acquired ratably for potential additional consideration payable annually based upon the achievement of specified revenue and earnings 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 as if we acquired 100% of Alictus on the acquisition date. Any future payments associated with the acquisition of the remaining 20% will represent a redeemable non-controlling interest, 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 global game developer. The total purchase consideration was $133.5 million, which included $96.0 million in cash, $1.5 million cash holdback related to working capital adjustments, $15.0 million of cash that was deposited into an escrow account, and redeemable non-controlling interest valued at $21.0 million at the acquisition date. We accounted for this acquisition using the acquisition method of accounting, whereby the total purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on respective estimated fair values. The estimated fair values of the acquired assets and assumed liabilities and resulting goodwill are subject to adjustment as we finalize our purchase price accounting, and such adjustments could be material. We incurred $1.2 million of acquisition-related costs, which were recorded in Restructuring and other for the three months ended March 31, 2022. The following table summarizes the preliminary allocation of the Alictus purchase price expected to be finalized by the fourth quarter of 2022: March 1, 2022 Cash and cash equivalents $ 4.7 Accounts receivable 5.4 Prepaid expenses and other current assets (1) 7.1 Intangible assets: “Alictus” trade name, useful life of 5 years 4.4 Intellectual property (game content and related technology), useful life of 6 years 29.8 Goodwill 92.7 Total assets 144.1 Accounts payable and other current liabilities 3.6 Deferred tax liabilities 7.0 Total liabilities 10.6 Total consideration transferred $ 133.5 (1) Other current assets includes $6.1 million in Turkish lira-denominated time deposits, discussed in further detail within this note to the financial statements. Cash, cash equivalents, accounts receivable and other current assets and most liabilities (other than as primarily related to deferred income taxes) were valued at the existing carrying values which approximated the estimated fair values. The estimated preliminary fair value of deferred income taxes was determined by applying the applicable enacted statutory tax rate to the temporary differences that arose on the differences between the financial reporting value and tax basis of the acquired assets and assumed liabilities. Other current assets includes $6.1 million in Turkish lira-denominated time deposits, which include protection provided by the Turkish Ministry of Treasury and Finance against currency fluctuations as compared to the U.S. dollar. These time deposits have an original maturity term of six months, and are classified as short-term investments. They are measured at fair value under ASC 820 as Level 2 investments, and the change in fair value was not material between the acquisition date and March 31, 2022. The fair value of intangible assets that have been preliminarily identified was determined using the relief from royalty method using Level 3 inputs in the hierarchy as established by ASC 820. The discount rate used in the valuation analysis was 18%, and the royalty rate used was 1% for the valuation of the “Alictus” trade name and 21% for the valuation of the acquired game content and related technology. The fair value of the redeemable non-controlling interest was determined using a Monte Carlo simulation model, based on inputs that are classified as Level 3 under the ASC 820 fair value hierarchy using a discount rate ranging between 2% and 3%, and is primarily based on reaching certain revenue and earnings-based metrics, with a maximum payout of up to $200.0 million. We measure the fair value of redeemable non-controlling interest as of the acquisition date, and record such redeemable non-controlling interest as a liability on the Company’s consolidated balance sheet on the acquisition date. The fair value of the liability is remeasured when the contingency is resolved based on actual performance or settlement. The factors contributing to the recognition of goodwill are based on enhanced financial and operational scale, games diversification, expected synergies, assembled workforce, and other strategic benefits. None of the resultant goodwill is expected to be deductible for income tax purposes. The results of operations from Alictus have been included in our consolidated statement of income since the date of acquisition, and are not significant to our operations. |
Intangible Assets and Software,
Intangible Assets and Software, net and Goodwill | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Software, net and Goodwill | Intangible Assets and Software, net and Goodwill The following table presents certain information regarding our intangible assets and software: Gross Accumulated Net Balance as of March 31, 2022 Intellectual property $ 78.4 $ (40.8) $ 37.6 Customer relationships 30.5 (22.6) 7.9 Software 29.8 (18.9) 10.9 Licenses 23.6 (5.7) 17.9 Brand names and other 11.0 (4.4) 6.6 Total intangible assets and software $ 173.3 $ (92.4) $ 80.9 Balance as of December 31, 2021 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 6.7 (4.3) 2.4 Total intangible assets and software $ 138.7 $ (89.1) $ 49.6 The following reflects amortization expense related to intangible assets and software included within depreciation and amortization: Three Months Ended March 31, 2022 2021 Amortization expense $ 4.3 $ 3.0 The table below reconciles the changes in the carrying value of goodwill for the period from December 31, 2021 to March 31, 2022. Total Balance as of December 31, 2021 $ 131.1 Acquired goodwill 92.7 Foreign currency adjustments (1.2) Balance as of March 31, 2022 $ 222.6 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | LeasesOur operating leases primarily consist of real estate office leases. 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: March 31, December 31, 2022 2021 Operating lease right-of-use assets $ 6.2 $ 6.8 Accrued liabilities 2.2 2.2 Operating lease liabilities 4.8 5.4 Total operating lease liabilities $ 7.0 $ 7.6 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases for the three months ended March 31, 2022 and 2021, respectively $ 0.6 $ 0.6 Weighted average remaining lease term, years 3.0 3.3 Weighted average discount rate 5.0 % 5.0 % Lease liability maturities: Operating Leases Remainder of 2022 $ 1.9 2023 2.5 2024 2.4 2025 0.7 Less: Imputed Interest (0.5) Total $ 7.0 As of March 31, 2022, we did not have material additional operating leases that have not yet commenced. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We hold an economic interest of 19.2% in SciPlay Parent LLC. The 80.8% economic interest 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 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 effective income tax rates for the three months ended March 31, 2022 and 2021were 6.4% and 5.3%, respectively. The effective income tax rates were determined using an estimated annual effective tax rate after considering any discrete items for such periods. Our effective tax rate differs from the U.S. statutory rate of 21% primarily because we generally do not record income taxes for the noncontrolling interest portion of U.S. pre-tax income. TRA During the three months ended March 31, 2022 and 2021, there were no payments made to Light & Wonder pursuant to the TRA. As of March 31, 2022 and December 31, 2021, the total TRA liability was $68.8 million, of which $4.1 million was included in Accrued liabilities in both periods. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The following is the summary o f expenses paid to Light & Wonder and settled in cash: Three Months Ended March 31, 2022 2021 Financial Statement Line Item Royalties to Light & Wonder for third-party IP $ 0.3 $ 0.7 Cost of revenue Parent services 1.4 1.5 General and administrative Distributions to Light & Wonder and affiliates, net (1) 0.2 0.3 Noncontrolling interest (1) Under the terms of the Operating Agreement, SciPlay Corporation relies on distributions from SciPlay Parent LLC to pay its obligations under the TRA and any other tax obligations. All distributions must be on a pari-passu basis, thus initiating a pro-rata distribution to Parent and affiliates. The following is the summary of balances due to affiliates: March 31, 2022 December 31, 2021 Royalties to Light & Wonder for third-party IP $ 0.2 $ 0.3 Parent services 1.4 0.9 Reimbursable expenses to Light & Wonder and its subsidiaries 0.8 0.4 $ 2.4 $ 1.6 Parent Equity Awards See Note 6 for disclosures related to Parent’s equity awards. IP Royalties As more fully described in Note 10 of our 2021 Form 10-K, we entered into the IP License Agreement from which we obtained an exclusive (subject to certain limited exceptions), perpetual, non-royalty-bearing license from a subsidiary of the Parent (“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. Under the terms of the IP License Agreement, some rights would have changed from exclusive to non-exclusive for newly created intellectual property and other rights would not have extended to newly created intellectual property as of May 6, 2022. On May 6, 2022, we entered into an amendment to extend our rights under the IP License Agreement through the earlier of the date we enter into a Second Amendment or July 7, 2022 and are in the process of negotiating terms with the Parent for a further extension of the agreement to ensure continuity of our rights thereunder. |
Stockholders_ Equity and Noncon
Stockholders’ Equity and Noncontrolling Interest | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity and Noncontrolling Interest | Stockholders’ Equity and Noncontrolling Interest Noncontrolling Interest We are a holding company, and our sole material assets are SciPlay Parent LLC Interests (“LLC Interests”) that we purchased from SciPlay Parent LLC and SG Social Holding Company I, LLC, 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 Light & Wonder, through the ownership of LLC Interests by the indirect wholly owned subsidiaries of Light & Wonder. Stock-Based Compensation The following table summarizes stock-based compensation expense that is included in general and administrative expenses: Three Months Ended March 31, 2022 2021 SciPlay awards $ 2.5 $ 1.7 Parent awards 0.1 0.1 Total $ 2.6 $ 1.8 As of March 31, 2022, we had $14.7 million in unrecognized stock-based compensation expense that is expected to be recognized over a weighted-average expected vesting period of 1.5 years, of which $3.9 million relates to performance-based restricted stock units. Share Repurchase Program |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2022 | |
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 outstanding during the period. 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. No material number of restricted stock units was excluded from the calculation of diluted weighted-average common shares outstanding for the three-month period ended March 31, 2022 and 2021. We excluded Class B common stock from the computation of basic and diluted EPS, as holders of Class B common stock do not have economic interest in us, and, therefore, a separate presentation of EPS of Class B common stock under the two-class method has not been presented. Three Months Ended March 31, 2022 March 31, 2021 Numerator: Net income $ 32.0 $ 37.9 Less: net income attributable to the noncontrolling interest 27.6 32.6 Net income attributable to SciPlay $ 4.4 $ 5.3 Denominator: Weighted average shares of Class A common stock for basic EPS 24.6 23.2 Effect of dilutive securities: Stock-based compensation grants 0.2 1.9 Weighted average shares of Class A common stock for diluted EPS 24.8 25.1 Basic and diluted net income attributable to SciPlay per share: Basic $ 0.18 $ 0.23 Diluted $ 0.18 $ 0.21 |
Litigation
Litigation | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | LitigationFrom time to time, we are subject to various claims, complaints and legal actions in the normal course of business. There have been no material changes to these legal matters since our 2021 Form 10-K was filed with the SEC. In addition, we may receive notifications alleging infringement of patent or other intellectual property rights. |
Description of the Business a_2
Description of the Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). All intercompany balances and transactions have been eliminated in consolidation. |
Principles of Consolidation | In the opinion of management, we have made all adjustments necessary to present fairly our consolidated statements of income, consolidated statements of comprehensive income, condensed consolidated balance sheets, consolidated statements of changes in stockholders’ equity and condensed consolidated statements of cash flows for the periods presented. Such adjustments are of a normal, recurring nature. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related Notes included in our 2021 Form 10-K. Interim results of operations are not necessarily indicative of results of operations to be expected for a full year. |
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 (the “Operating Agreement”), 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 do not hold majority voting rights but hold 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. |
New Accounting Guidance - Not Yet Adopted | New Accounting Guidance There have been no recent accounting pronouncements or changes in accounting pronouncements since those described within the Notes of our 2021 10-K that are expected to have a material impact on our consolidated financial statements. |
Revenue Recognition and Contract Assets, Contract Liabilities and Other Disclosures | 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 third-party branded games. With the acquisition of Alictus, we also generate revenue from providing advertising platforms with access to our game software platform, which facilitates the placement of advertising inventory. Disaggregation of Revenue We believe disaggregation of our revenue on the basis of platform and monetization type as well as the geographical locations of our players is appropriate because the nature of revenue and the number of players generating revenue could vary on such basis, which represent different economic risk profiles. |
Concentration of Credit Risk | Concentration of Credit Risk Our revenue and accounts receivable are generated via certain platform providers, which subject us to a concentration of credit risk. |
Description of the Business a_3
Description of the Business and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Amortization Expense | The following reflects amortization expense related to intangible assets and software included within depreciation and amortization: Three Months Ended March 31, 2022 2021 Amortization expense $ 4.3 $ 3.0 |
Disaggregation of Revenue | The following table presents our revenue disaggregated by platform type: Three Months Ended March 31, 2022 2021 Mobile in-app purchases $ 139.7 $ 132.8 Web in-app purchases and other (1) 18.3 18.3 Total revenue $ 158.0 $ 151.1 (1) Other primarily represents advertising revenue, which was not material in the periods presented. The following table presents our revenue disaggregated based on the geographical location of our players: Three Months Ended March 31, 2022 2021 North America (1) $ 144.9 $ 138.5 International 13.1 12.6 Total revenue $ 158.0 $ 151.1 (1) North America revenue includes revenue derived from the U.S., Canada and Mexico. |
Summary 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) Beginning of period balance $ 39.6 $ 0.2 $ 0.5 Balance as of March 31, 2022 42.8 0.2 0.5 (1) Contract assets are included within Prepaid expenses and other current assets in our consolidated balance sheets. (2) Contract liabilities are included within Accrued liabilities 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 Concentration Three Months Ended March 31, 2022 March 31, 2021 Apple 47.9% 46.8% Google 34.6% 37.3% Facebook 12.1% 12.1% Accounts Receivable Concentration as of March 31, 2022 December 31, 2021 Apple 45.9% 49.8% Google 31.3% 33.9% Facebook 10.4% 12.1% |
Schedule of Preliminary Allocation of Business Combination Purchase Price | The following table summarizes the preliminary allocation of the Alictus purchase price expected to be finalized by the fourth quarter of 2022: March 1, 2022 Cash and cash equivalents $ 4.7 Accounts receivable 5.4 Prepaid expenses and other current assets (1) 7.1 Intangible assets: “Alictus” trade name, useful life of 5 years 4.4 Intellectual property (game content and related technology), useful life of 6 years 29.8 Goodwill 92.7 Total assets 144.1 Accounts payable and other current liabilities 3.6 Deferred tax liabilities 7.0 Total liabilities 10.6 Total consideration transferred $ 133.5 (1) Other current assets includes $6.1 million in Turkish lira-denominated time deposits, discussed in further detail within this note to the financial statements. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Information Regarding Intangible Assets | The following table presents certain information regarding our intangible assets and software: Gross Accumulated Net Balance as of March 31, 2022 Intellectual property $ 78.4 $ (40.8) $ 37.6 Customer relationships 30.5 (22.6) 7.9 Software 29.8 (18.9) 10.9 Licenses 23.6 (5.7) 17.9 Brand names and other 11.0 (4.4) 6.6 Total intangible assets and software $ 173.3 $ (92.4) $ 80.9 Balance as of December 31, 2021 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 6.7 (4.3) 2.4 Total intangible assets and software $ 138.7 $ (89.1) $ 49.6 |
Schedule of Amortization Expense | The following reflects amortization expense related to intangible assets and software included within depreciation and amortization: Three Months Ended March 31, 2022 2021 Amortization expense $ 4.3 $ 3.0 |
Schedule of Goodwill | The table below reconciles the changes in the carrying value of goodwill for the period from December 31, 2021 to March 31, 2022. Total Balance as of December 31, 2021 $ 131.1 Acquired goodwill 92.7 Foreign currency adjustments (1.2) Balance as of March 31, 2022 $ 222.6 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Operating Lease Information | Supplemental balance sheet and cash flow information related to operating leases is as follows: March 31, December 31, 2022 2021 Operating lease right-of-use assets $ 6.2 $ 6.8 Accrued liabilities 2.2 2.2 Operating lease liabilities 4.8 5.4 Total operating lease liabilities $ 7.0 $ 7.6 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases for the three months ended March 31, 2022 and 2021, respectively $ 0.6 $ 0.6 Weighted average remaining lease term, years 3.0 3.3 Weighted average discount rate 5.0 % 5.0 % |
Maturities of Lease Liabilities | Lease liability maturities: Operating Leases Remainder of 2022 $ 1.9 2023 2.5 2024 2.4 2025 0.7 Less: Imputed Interest (0.5) Total $ 7.0 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following is the summary o f expenses paid to Light & Wonder and settled in cash: Three Months Ended March 31, 2022 2021 Financial Statement Line Item Royalties to Light & Wonder for third-party IP $ 0.3 $ 0.7 Cost of revenue Parent services 1.4 1.5 General and administrative Distributions to Light & Wonder and affiliates, net (1) 0.2 0.3 Noncontrolling interest (1) Under the terms of the Operating Agreement, SciPlay Corporation relies on distributions from SciPlay Parent LLC to pay its obligations under the TRA and any other tax obligations. All distributions must be on a pari-passu basis, thus initiating a pro-rata distribution to Parent and affiliates. The following is the summary of balances due to affiliates: March 31, 2022 December 31, 2021 Royalties to Light & Wonder for third-party IP $ 0.2 $ 0.3 Parent services 1.4 0.9 Reimbursable expenses to Light & Wonder and its subsidiaries 0.8 0.4 $ 2.4 $ 1.6 |
Stockholders_ Equity and Nonc_2
Stockholders’ Equity and Noncontrolling Interest (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Summary of Stock-based Compensation Expense | The following table summarizes stock-based compensation expense that is included in general and administrative expenses: Three Months Ended March 31, 2022 2021 SciPlay awards $ 2.5 $ 1.7 Parent awards 0.1 0.1 Total $ 2.6 $ 1.8 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three Months Ended March 31, 2022 March 31, 2021 Numerator: Net income $ 32.0 $ 37.9 Less: net income attributable to the noncontrolling interest 27.6 32.6 Net income attributable to SciPlay $ 4.4 $ 5.3 Denominator: Weighted average shares of Class A common stock for basic EPS 24.6 23.2 Effect of dilutive securities: Stock-based compensation grants 0.2 1.9 Weighted average shares of Class A common stock for diluted EPS 24.8 25.1 Basic and diluted net income attributable to SciPlay per share: Basic $ 0.18 $ 0.23 Diluted $ 0.18 $ 0.21 |
Description of the Business a_4
Description of the Business and Summary of Significant Accounting Policies - Narrative (Details) | Mar. 01, 2022USD ($) | May 07, 2019 | Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | |
Subsidiary, Sale of Stock [Line Items] | |||||
Number of operating segments | segment | 1 | ||||
Economic interests called by common stock units | 19.20% | ||||
Revenue recognized | $ 300,000 | $ 500,000 | |||
Alictus | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Voting interests acquired | 80.00% | 100.00% | |||
Percentage of potential consideration acquired | 20.00% | ||||
Contingent consideration, range of outcomes, low | $ 0 | ||||
Contingent consideration, range of outcomes, high | 200,000,000 | ||||
Payments to acquire businesses, gross | 96,000,000 | ||||
Business combination, liability | 21,000,000 | ||||
Acquisition related costs | $ 1,200,000 | ||||
Prepaid expenses and other current assets | [1] | 7,100,000 | |||
Alictus | Investments | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Prepaid expenses and other current assets | 6,100,000 | ||||
Alictus | Holdback | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Payments to acquire businesses, gross | 1,500,000 | ||||
Alictus | Escrow | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Consideration transferred | $ 15,000,000 | ||||
Alictus | Fair Value, Inputs, Level 3 | Measurement Input, Discount Rate | Valuation Technique, Relief from Royalty Method | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Business combination, finite-lived intangibles, measurement Input | 0.18 | ||||
Alictus | Fair Value, Inputs, Level 3 | Measurement Input, Discount Rate | Valuation Technique, Monte Carlo Simulation Model | Minimum | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Business combination, liability, measurement input | 0.02 | ||||
Alictus | Fair Value, Inputs, Level 3 | Measurement Input, Discount Rate | Valuation Technique, Monte Carlo Simulation Model | Maximum | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Business combination, liability, measurement input | 0.03 | ||||
Alictus | Fair Value, Inputs, Level 3 | Measurement Input, Royalty Rate | Valuation Technique, Relief from Royalty Method | Trade Names [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Business combination, finite-lived intangibles, measurement Input | 0.01 | ||||
Alictus | Fair Value, Inputs, Level 3 | Measurement Input, Royalty Rate | Valuation Technique, Relief from Royalty Method | Intellectual property | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Business combination, finite-lived intangibles, measurement Input | 0.21 | ||||
IPO | Common Class A | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Economic interests called by common stock units | 100.00% | ||||
[1] | (1) Other current assets includes $6.1 million in Turkish lira-denominated time deposits, discussed in further detail within this note to the financial statements. |
Description of the Business a_5
Description of the Business and Summary of Significant Accounting Policies - Schedule of Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Amortization expense | $ 4.3 | $ 3 |
Description of the Business a_6
Description of the Business and Summary of Significant Accounting Policies - Disaggregation of Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 158 | $ 151.1 | |
Mobile in-app purchases | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 139.7 | 132.8 | |
Advertising and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | [1] | 18.3 | 18.3 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | [2] | 144.9 | 138.5 |
International | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 13.1 | $ 12.6 | |
[1] | (1) Other primarily represents advertising revenue, which was not material in the periods presented. | ||
[2] | (1) North America revenue includes revenue derived from the U.S., Canada and Mexico. |
Description of the Business a_7
Description of the Business and Summary of Significant Accounting Policies - Balances in Receivables and Contract Asset and Liability Accounts (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accounts Receivable | $ 42.8 | $ 39.6 | |
Contract Assets | [1] | 0.2 | 0.2 |
Contract Liabilities | [2] | $ 0.5 | $ 0.5 |
[1] | (1) Contract assets are included within Prepaid expenses and other current assets in our consolidated balance sheets. (2) Contract liabilities are included within Accrued liabilities in our consolidated balance sheets. | ||
[2] | (1) Contract assets are included within Prepaid expenses and other current assets in our consolidated balance sheets. (2) Contract liabilities are included within Accrued liabilities in our consolidated balance sheets. |
Description of the Business a_8
Description of the Business and Summary of Significant Accounting Policies - Schedule of Concentration Risk (Details) - Customer Concentration Risk | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Apple | Revenue Concentration | ||
Concentration Risk [Line Items] | ||
Concentration risk | 47.90% | 46.80% |
Apple | Accounts Receivable Concentration | ||
Concentration Risk [Line Items] | ||
Concentration risk | 45.90% | 49.80% |
Google | Revenue Concentration | ||
Concentration Risk [Line Items] | ||
Concentration risk | 34.60% | 37.30% |
Google | Accounts Receivable Concentration | ||
Concentration Risk [Line Items] | ||
Concentration risk | 31.30% | 33.90% |
Facebook | Revenue Concentration | ||
Concentration Risk [Line Items] | ||
Concentration risk | 12.10% | 12.10% |
Facebook | Accounts Receivable Concentration | ||
Concentration Risk [Line Items] | ||
Concentration risk | 10.40% | 12.10% |
Description of the Business a_9
Description of the Business and Summary of Significant Accounting Policies - Preliminary Allocation of Business Combination Purchase Price (Details) - USD ($) | Mar. 01, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 222,600,000 | $ 131,100,000 | ||
Alictus | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 4,700,000 | |||
Accounts receivable | 5,400,000 | |||
Prepaid expenses and other current assets | [1] | 7,100,000 | ||
Goodwill | 92,700,000 | |||
Total assets | 144,100,000 | |||
Accounts payable and other current liabilities | 3,600,000 | |||
Deferred tax liabilities | 7,000,000 | |||
Total liabilities | 10,600,000 | |||
Total consideration transferred | $ 133,500,000 | |||
Alictus | Trade Names [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible asset, useful life | 5 years | |||
Intangible assets | $ 4,400,000 | |||
Alictus | Intellectual property | ||||
Business Acquisition [Line Items] | ||||
Intangible asset, useful life | 6 years | |||
Intangible assets | $ 29,800,000 | |||
Alictus | Investments | ||||
Business Acquisition [Line Items] | ||||
Prepaid expenses and other current assets | $ 6,100,000 | |||
[1] | (1) Other current assets includes $6.1 million in Turkish lira-denominated time deposits, discussed in further detail within this note to the financial statements. |
Intangible Assets and Softwar_2
Intangible Assets and Software, net and Goodwill - Schedule of Information Regarding Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Amortizable intangible assets, gross carrying amount | $ 173.3 | $ 138.7 |
Amortizable intangible assets, accumulated amortization | (92.4) | (89.1) |
Amortizable intangible assets, net balance | 80.9 | 49.6 |
Intellectual property | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Amortizable intangible assets, gross carrying amount | 78.4 | 49.6 |
Amortizable intangible assets, accumulated amortization | (40.8) | (40.4) |
Amortizable intangible assets, net balance | 37.6 | 9.2 |
Customer relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Amortizable intangible assets, gross carrying amount | 30.5 | 30.7 |
Amortizable intangible assets, accumulated amortization | (22.6) | (22.1) |
Amortizable intangible assets, net balance | 7.9 | 8.6 |
Software | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Amortizable intangible assets, gross carrying amount | 29.8 | 28.1 |
Amortizable intangible assets, accumulated amortization | (18.9) | (17.8) |
Amortizable intangible assets, net balance | 10.9 | 10.3 |
Licenses | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Amortizable intangible assets, gross carrying amount | 23.6 | 23.6 |
Amortizable intangible assets, accumulated amortization | (5.7) | (4.5) |
Amortizable intangible assets, net balance | 17.9 | 19.1 |
Brand names and other | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Amortizable intangible assets, gross carrying amount | 11 | 6.7 |
Amortizable intangible assets, accumulated amortization | (4.4) | (4.3) |
Amortizable intangible assets, net balance | $ 6.6 | $ 2.4 |
Intangible Assets and Softwar_3
Intangible Assets and Software, net and Goodwill - Intangible Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 4.3 | $ 3 |
Intangible Assets and Softwar_4
Intangible Assets and Software, net and Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Millions | Mar. 01, 2022 | Mar. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance as of December 31, 2021 | $ 131.1 | |
Acquired goodwill | (1.2) | |
Balance as of March 31, 2022 | $ 222.6 | |
Goodwill, Acquired During Period | $ 92.7 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 31, 2022 |
Minimum | |
Range [Line Items] | |
Remaining lease terms | 3 years |
Leases - Supplemental Operating
Leases - Supplemental Operating Lease Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 6.2 | $ 6.8 | |
Accrued liabilities | 2.2 | 2.2 | |
Operating lease liabilities | 4.8 | 5.4 | |
Total operating lease liabilities | 7 | $ 7.6 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for operating leases for the three months ended March 31, 2022 and 2021, respectively | $ 0.6 | $ 0.6 | |
Weighted average remaining lease term, years | 3 years | 3 years 3 months 18 days | |
Weighted average discount rate | 5.00% | 5.00% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
Remainder of 2022 | $ 1.9 |
2023 | 2.5 |
2024 | 2.4 |
2025 | 0.7 |
Less: Imputed Interest | (0.5) |
Total | $ 7 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | May 07, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Income Tax Disclosure [Line Items] | ||||
Economic interests called by common stock units | 19.20% | |||
Effective tax rates | 6.40% | 5.30% | ||
Total tax receivable agreement liability | $ 68.8 | $ 68.8 | ||
Tax receivable agreement liability, current | $ 4.1 | $ 4.1 | ||
Scientific Games Corporation | ||||
Income Tax Disclosure [Line Items] | ||||
Economic interests called by common stock units | 80.80% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | ||
Related Party Transaction [Line Items] | ||||
Parent services | $ 1.4 | $ 1.5 | ||
Distributions to Scientific Games and affiliates, net | [1] | 0.2 | 0.3 | |
Total due to (from) related parties | 2.4 | $ 1.6 | ||
Royalties to Light & Wonder for third-party IP | ||||
Related Party Transaction [Line Items] | ||||
Total due to (from) related parties | (0.2) | (0.3) | ||
Parent services | ||||
Related Party Transaction [Line Items] | ||||
Total due to (from) related parties | (1.4) | (0.9) | ||
Reimbursable expenses to Light & Wonder and its subsidiaries | ||||
Related Party Transaction [Line Items] | ||||
Total due to (from) related parties | (0.8) | $ (0.4) | ||
Intellectual property, Third-party | ||||
Related Party Transaction [Line Items] | ||||
Royalties to Light & Wonder for third-party IP | $ 0.3 | $ 0.7 | ||
[1] | (1) Under the terms of the Operating Agreement, SciPlay Corporation relies on distributions from SciPlay Parent LLC to pay its obligations under the TRA and any other tax obligations. All distributions must be on a pari-passu basis, thus initiating a pro-rata distribution to Parent and affiliates. |
Stockholders_ Equity and Nonc_3
Stockholders’ Equity and Noncontrolling Interest (Details) - USD ($) $ in Millions | May 07, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | May 09, 2022 |
Class of Stock [Line Items] | ||||
Economic interests called by common stock units | 19.20% | |||
Total compensation expense | $ 2.6 | $ 1.8 | ||
Unrecognized stock-based compensation expense | $ 14.7 | |||
Period expected to be recognized | 1 year 6 months | |||
Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 60 | |||
Scientific Games Corporation | ||||
Class of Stock [Line Items] | ||||
Economic interests called by common stock units | 80.80% | |||
LTIP | ||||
Class of Stock [Line Items] | ||||
Total compensation expense | $ 2.5 | 1.7 | ||
Equity Incentive Award Plan, Parent | ||||
Class of Stock [Line Items] | ||||
Total compensation expense | 0.1 | $ 0.1 | ||
Performance-Based Restricted Stock Units (PRSUs) | ||||
Class of Stock [Line Items] | ||||
Unrecognized stock-based compensation expense | $ 3.9 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $ 32 | $ 37.9 |
Less: Net income attributable to the noncontrolling interest | 27.6 | 32.6 |
Net income attributable to SciPlay | $ 4.4 | $ 5.3 |
Denominator: | ||
Weighted average shares of Class A common stock for basic EPS (in shares) | 24.6 | 23.2 |
Effect of dilutive securities: | ||
Stock-based compensation grants (in shares) | 0.2 | 1.9 |
Weighted average shares of Class A common stock for diluted EPS (in shares) | 24.8 | 25.1 |
Net income attributable to SciPlay per share of Class A common stock - basic (in dollars per share) | $ 0.18 | $ 0.23 |
Net income attributable to SciPlay per share of Class A common stock - diluted (in dollars per share) | $ 0.18 | $ 0.21 |
Noncontrolling interest | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $ 27.6 | $ 32.6 |