Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 23, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-11693 | ||
Entity Registrant Name | SCIENTIFIC GAMES CORPORATION | ||
Entity Central Index Key | 0000750004 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 81-0422894 | ||
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 | Common Stock, $.001 par value | ||
Trading Symbol | SGMS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 877,187,305 | ||
Entity Common Stock, Shares Outstanding | 95,389,898 | ||
ICFR Auditor Attestation Flag | true |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenue: | ||||
Total revenue | $ 2,724 | $ 3,400 | $ 3,363 | |
Operating expenses: | ||||
Selling, general and administrative | 701 | 707 | 697 | |
Research and development | 166 | 188 | 202 | |
Depreciation, amortization and impairments | 554 | 647 | 690 | |
Goodwill, Impairment Loss | 54 | 0 | 0 | |
Restructuring and other | 67 | 28 | 253 | |
Operating income | 22 | 546 | 266 | |
Other (expense) income: | ||||
Interest expense | (503) | (589) | (597) | |
(Loss) earnings from equity investments | (6) | 24 | 25 | |
Loss on debt financing transactions | (1) | (100) | (93) | |
(Loss) gain on remeasurement of debt | (51) | 9 | 43 | |
Other (expense) income, net | (5) | 2 | 17 | |
Total other expense, net | (566) | (654) | (605) | |
Net (loss) income before income taxes | (544) | (108) | (339) | |
Income tax expense | (4) | (10) | (13) | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (548) | (118) | (352) | |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 21 | 12 | 0 | |
Net (loss) income attributable to SGC | $ (569) | $ (130) | $ (352) | |
Basic and diluted net loss attributable to SGC per share: | ||||
Basic (in dollars per share) | $ (6.02) | $ (1.40) | $ (3.87) | |
Earnings Per Share, Diluted | $ (6.02) | $ (1.40) | $ (3.87) | |
Weighted average number of shares used in per share calculations: | ||||
Basic shares (in shares) | 95 | 93 | 91 | |
Weighted Average Number of Shares Outstanding, Diluted | 95 | 93 | 91 | |
Services | ||||
Revenue: | ||||
Total revenue | $ 1,593 | $ 1,819 | $ 1,777 | |
Operating expenses: | ||||
Cost of revenues | 531 | [1] | 538 | 505 |
Product sales | ||||
Revenue: | ||||
Total revenue | 553 | 994 | 994 | |
Operating expenses: | ||||
Cost of revenues | 349 | [1] | 457 | 466 |
Instant products | ||||
Revenue: | ||||
Total revenue | 578 | 587 | 592 | |
Operating expenses: | ||||
Cost of revenues | $ 280 | [1] | $ 289 | $ 284 |
[1] | Exclusive of D&A. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (548) | $ (118) | $ (352) |
Foreign currency translation (loss) gain, net of tax | 85 | 26 | (99) |
Pension and post-retirement loss, net of tax | (5) | (7) | (1) |
Derivative financial instruments unrealized loss, net of tax | (6) | (11) | 0 |
Total other comprehensive gain (loss) | 74 | 8 | (100) |
Total comprehensive loss | (474) | (110) | (452) |
Less: comprehensive income attributable to noncontrolling interest | (21) | (12) | 0 |
Comprehensive (loss) income attributable to SGC | $ (495) | $ (122) | $ (452) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,016 | $ 313 |
Restricted cash | 117 | 51 |
Receivables, net of allowance for credit losses of $81 and $36, respectively | 616 | 755 |
Inventories | 191 | 244 |
Prepaid expenses, deposits and other current assets | 241 | 252 |
Total current assets | 2,181 | 1,615 |
Non-current assets: | ||
Restricted cash | 10 | 11 |
Receivables, net of allowance for credit losses of $5 and $-, respectively | 20 | 53 |
Property and equipment, net | 415 | 500 |
Operating Lease, Right-of-Use Asset | 94 | 105 |
Goodwill | 3,292 | 3,280 |
Intangible assets, net | 1,299 | 1,516 |
Software, net | 227 | 258 |
Equity investments | 262 | 273 |
Other assets | 184 | 198 |
Total assets | 7,984 | 7,809 |
Current liabilities: | ||
Current portion of long-term debt | 44 | 45 |
Accounts payable | 203 | 226 |
Accrued liabilities | 586 | 495 |
Total current liabilities | 833 | 766 |
Deferred income taxes | 79 | 91 |
Operating Lease, Liability, Noncurrent | 77 | 88 |
Other long-term liabilities | 260 | 292 |
Long-term debt, excluding current portion | 9,259 | 8,680 |
Total liabilities | 10,508 | 9,917 |
Commitments and Contingencies | ||
Stockholders’ deficit: | ||
Common stock, par value $0.001 per share: 199 shares authorized; 113 and 111 shares issued and 95 and 94 shares outstanding, respectively | 1 | 1 |
Additional paid-in capital | 1,268 | 1,208 |
Accumulated loss | (3,529) | (2,954) |
Treasury Stock, Value | (175) | (175) |
Accumulated other comprehensive loss | (218) | (292) |
Total SGC stockholders’ deficit | (2,653) | (2,212) |
Stockholders' Equity Attributable to Noncontrolling Interest | 129 | 104 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (2,524) | (2,108) |
Total liabilities and stockholders’ deficit | $ 7,984 | $ 7,809 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in dollars per share) | $ 0.001 | |
Common stock authorized (in shares) | 199 | |
Common stock issued (in shares) | 113 | 111 |
Common stock outstanding (in shares) | 95 | 94 |
Treasury stock at cost (in shares) | 17 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid in Capital | Accumulated Loss | Accumulated LossCumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Accumulated Other Comprehensive Loss | Noncontrolling Interest |
Beginning balance at Dec. 31, 2017 | $ (2,027) | $ (11) | $ 1 | $ 808 | $ (2,461) | $ (11) | $ (175) | $ (200) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net redemption of common stock in connection with stock options and RSUs | (16) | 16 | |||||||
Stock-based compensation | 43 | 43 | |||||||
Net loss | (352) | (352) | |||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (352) | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (100) | (100) | |||||||
Ending balance at Dec. 31, 2018 | $ (2,463) | 1 | 835 | (2,824) | (175) | (300) | 0 | ||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201905Member | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net redemption of common stock in connection with stock options and RSUs | $ 12 | 12 | |||||||
Gain (Loss) on Disposition of Stock in Subsidiary | 419 | ||||||||
Proceeds from Issuance Initial Public Offering | 328 | 91 | |||||||
Stock-based compensation | 34 | 33 | |||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 1 | ||||||||
Net loss | (130) | (130) | |||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 12 | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (118) | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 8 | 8 | |||||||
Ending balance at Dec. 31, 2019 | (2,108) | $ (6) | 1 | 1,208 | (2,954) | $ (6) | (175) | (292) | 104 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net redemption of common stock in connection with stock options and RSUs | 4 | 4 | |||||||
Stock-based compensation | 60 | 56 | 4 | ||||||
Net loss | (569) | (569) | |||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 21 | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (548) | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 74 | 74 | |||||||
Ending balance at Dec. 31, 2020 | $ (2,524) | $ 1 | $ 1,268 | $ (3,529) | $ (175) | $ (218) | $ 129 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Parenthetical) | Dec. 31, 2020$ / shares |
Statement of Stockholders' Equity [Abstract] | |
Common stock par value (in dollars per share) | $ 0.001 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Cash Flows [Abstract] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (548) | $ (118) | $ (352) |
Adjustments to reconcile net loss to cash provided by operating activities: | |||
Depreciation, amortization and impairments | 554 | 647 | 690 |
Change in deferred income taxes | (22) | (21) | (33) |
Stock-based compensation | 61 | 37 | 44 |
Noncash Interest Expense | 22 | 25 | 25 |
Earnings from equity investments, net | 6 | (24) | (25) |
Distributed earnings from equity investments | 22 | 26 | 33 |
Inventory Write-down | 110 | 15 | 29 |
Loss (gain) on sale of assets and other, net | 0 | 6 | (16) |
Loss on debt financing transactions | 1 | 100 | 93 |
Loss (gain) on remeasurement of debt | 51 | (9) | (43) |
Contingent acquisition consideration fair value adjustment | 0 | 2 | 29 |
Changes in assets and liabilities, net of effects of acquisitions: | |||
Receivables, net(1) | 121 | (61) | 23 |
Inventories(1) | 14 | (29) | 2 |
Other assets and liabilities | (35) | (31) | (27) |
Accounts payable and accrued liabilities(1) | 60 | (19) | (126) |
Net cash provided by operating activities | 471 | 546 | 346 |
Cash flows from investing activities: | |||
Payments to Acquire Other Productive Assets | 190 | 285 | |
Capital expenditures | (391) | ||
Acquisitions of businesses and assets, net of cash acquired | (13) | 0 | (297) |
Acquisitions and additions to equity method investments | (6) | (1) | (180) |
Distributions of capital from equity investments | 12 | 23 | 30 |
Proceeds from asset sales and other | 24 | 0 | 40 |
Net cash used in investing activities | (173) | (263) | (798) |
Cash flows from financing activities: | |||
Borrowings under SGI revolving credit facility | 530 | 270 | 560 |
Repayments under SGI revolving credit facility | (190) | (400) | (585) |
Proceeds from issuance of notes and term loans | 550 | 2,300 | 2,512 |
Repayment of assumed NYX and other acquisitions debt | 0 | 0 | (290) |
Payments on long-term debt | (42) | (44) | (39) |
Repayments of notes and term loans (including redemption premium) | (341) | (2,523) | (2,210) |
Payments of debt issuance and deferred financing costs | (10) | (35) | (38) |
Payments on license obligations | (36) | (40) | (45) |
Proceeds From Sale Of Finance Receivables, Financing Activities | 0 | 11 | 0 |
Net proceeds from the sale of SciPlay common stock | 0 | 342 | 0 |
Payments of deferred SciPlay common stock offering costs | 0 | (9) | 0 |
Net redemptions of common stock under stock-based compensation plans and other | 2 | (1) | (21) |
Net cash provided by (used in) financing activities | 463 | (129) | (156) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 7 | 1 | (6) |
Increase (decrease) in cash, cash equivalents and restricted cash | 768 | 155 | (614) |
Cash, cash equivalents and restricted cash, beginning of period | 375 | 220 | 834 |
Cash, cash equivalents and restricted cash, end of period | 1,143 | 375 | 220 |
Supplemental cash flow information: | |||
Cash paid for interest | 471 | 549 | 633 |
Income taxes paid | 22 | 41 | 33 |
Payment for Contingent Consideration Liability, Operating Activities | 4 | 26 | 0 |
Non-cash investing and financing transactions: | |||
Note Rollover | 0 | 0 | 3,275 |
Non-cash additions to intangible assets related to license agreements | 0 | 0 | 138 |
NYX non-cash consideration transferred (including 2017 acquisition of ordinary shares) | 0 | 0 | 93 |
Goodwill, Impairment Loss | $ 54 | $ 0 | $ 0 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Description of the Business and Summary of Significant Accounting Policies | Description of the Business and Summary of Significant Accounting Policies Description of the business We are a leading developer of technology-based products and services and associated content for the worldwide gaming, lottery, social and digital gaming industries. Our portfolio of revenue-generating activities primarily includes supplying gaming machines and game content, casino-management systems and table game products and services to licensed gaming entities; providing instant and draw-based lottery products, lottery systems and lottery content and services to lottery operators; providing social casino gaming solutions to retail consumers; and providing a comprehensive suite of digital RMG and sports wagering solutions, distribution platforms, content, products and services. We report our operations in four business segments—Gaming, Lottery, SciPlay, and Digital. Basis of presentation and principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP. The accompanying consolidated financial statements include the accounts of SGC, its wholly owned subsidiaries, and those subsidiaries in which we have a controlling financial interest. Investments in other entities in which we do not have a controlling financial interest but we exert significant influence are accounted for in our consolidated financial statements using the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Impact of COVID-19 In March 2020, the World Health Organization declared the rapidly spreading COVID-19 outbreak a pandemic. In response to the COVID-19 pandemic, governments across the world implemented a number of measures to prevent its spread, including but not limited to, the temporary closure of a substantial number of gaming operations establishments and disruptions to lottery operations, travel restrictions, and cancellation of sporting events, which are affecting our business segments in a number of ways. During the latter part of the second quarter of 2020 and through the remainder of the year, lifting of restrictions began, including the reopening of the majority of gaming establishments globally and the resumption of sporting events. During the fourth quarter of 2020 and in response to the second wave of the COVID-19 pandemic, certain jurisdictions implemented additional temporary closures, which were subsequently lifted. As gaming operations have yet to return to pre-COVID levels, limited international travel, social distancing measures (which in some cases has required our customers to substantially reduce maximum floor capacity in many jurisdictions), decreased operating capacities, high unemployment rates and potential changes in consumer behaviors continued to negatively impact our results of operations, cash flows and financial condition through 2020. Additionally, while most casinos have reopened, it is unknown when mitigation measures (such as capacity limitations) will be lifted, all contributing to continued uncertainty into 2021. Based on our current estimates regarding the magnitude and length of the disruptions to our business, we do not anticipate these disruptions will impact our ability to meet our obligations when due or our ability to maintain compliance with our financial covenants in our debt agreements for at least the next 12 months. However, the ultimate magnitude and length of time that the disruptions from COVID-19 will continue remains uncertain. This uncertainty will require us to continually assess the situation, including the impact of changes to government imposed restrictions, changes in customer behaviors, social distancing measures and decreased gaming establishments operating capacity jurisdiction by jurisdiction. Accordingly, our estimates regarding the magnitude and length of time that these disruptions will continue to impact our results of operations, cash flows and financial condition may change in the future and such changes could be material. On April 9, 2020, we borrowed $480 million under SGI’s revolving credit facility, which was substantially all of our remaining availability thereunder. On July 1, 2020, SGI issued $550 million in aggregate principal amount of 8.625% senior unsecured notes due 2025 in a private offering and on July 17, 2020, SGI redeemed all $341 million of our outstanding 2021 Notes. As of December 31, 2020, our total available liquidity (excluding our SciPlay business segment) was $850 million, which included $103 million of undrawn availability under SGI’s revolving credit facility due to a voluntary payment of $100 million made on October 9, 2020. In February of 2021, we made another voluntary payment of $100 million on SGI’s revolving credit facility. During the first half of 2020, we implemented a number of measures to reduce operating costs, conserve liquidity and navigate through this unprecedented situation including permanent reductions in workforce and temporary measures such as: reductions in salaries and workforce (salary reduction measures ceased as of July 31, 2020), unpaid employee furloughs, reductions in hours, temporary elimination of 401(k) matching among other compensation and benefits reductions, and deferral of certain operating and capital expenditures. We continue to actively manage our daily cash flows and continue to evaluate additional measures that will reduce operating costs and conserve cash. Refer to Note 15 for description of issuance of the 2025 Unsecured Notes on July 1, 2020 and the redemption of the 2021 Notes on July 17, 2020. Our only financial maintenance covenant (excluding SciPlay’s Revolver) is contained in SGI’s credit agreement. Prior to the Credit Agreement Amendment (as defined below) dated May 8, 2020, this covenant was tested at the end of each fiscal quarter and required us to not exceed a maximum consolidated net first lien leverage ratio of 5.00x Consolidated EBITDA (as defined in the credit agreement). Prior to the Credit Agreement Amendment, this ratio stepped down to 4.75x beginning with the fiscal quarter ended December 31, 2020 and to 4.50x beginning with the fiscal quarter ending December 31, 2021. These agreements also contain events of default customary for agreements of their type (with customary grace periods, as applicable). Failure to comply with any of the covenants in these agreements could result in a default under these agreements and under other agreements containing cross-default provisions. Such a default would permit lenders to accelerate the maturity of the debt under these agreements and other agreements containing cross-default provisions and, in the case of the credit agreement and the indentures governing the Secured Notes, to foreclose upon any collateral securing such debt. We amended the consolidated net first lien leverage ratio covenant in the credit agreement with the requisite lenders under SGI’s revolving credit facility on May 8, 2020 (the “Credit Agreement Amendment”) and subsequently extended the Credit Agreement Amendment on October 8, 2020 (the “Credit Agreement Extension Amendment”) to implement a financial covenant relief period, which extends the relief period through the first quarter of 2022. As a result, (a) SGI is not required to maintain compliance with the consolidated net first lien leverage ratio covenant during the Covenant Relief Period, (b) the step down of the consolidated net first lien leverage ratio covenant following the Covenant Relief Period was revised, (c) SGI must maintain liquidity (excluding SciPlay) of at least $275 million during the Covenant Relief Period, (d) SGI is restricted in its ability to further incur indebtedness and liens, make restricted payments and investments and prepay junior indebtedness during the Covenant Relief Period, subject to certain exceptions and further subject, in some instances, to maintaining minimum liquidity (excluding SciPlay) of at least $400 million and (e) a LIBOR floor of 0.500% was established on borrowings under the revolving credit facility during the Covenant Relief Period. The following table summarizes the revised consolidated net first lien leverage ratio and Consolidated EBITDA: Revised Consolidated Net First Lien Leverage Ratio Covenant Calculation Period ending Revised Consolidated Net First Lien Leverage Ratio Covenant Consolidated EBITDA multiplier 1 3/31/2022 6.00x 4x Q1-2022 6/30/2022 6.00x 2x YTD Q2-2022 9/30/2022 5.75x 1.33x YTD Q3-2022 12/31/2022 5.75x N/A - Calculated based on the previous 12 month period including the quarter being tested 3/31/2023 5.25x 6/30/2023 5.25x 9/30/2023 4.75x 12/31/2023 4.75x 3/31/2024 and thereafter 4.50x (1) Consolidated EBITDA is defined in the Credit Agreement Extension Amendment and is calculated as testing year-to-date period-end consolidated EBITDA times multiplier. Additionally, the SciPlay Revolver requires that SciPlay maintain a maximum total net leverage ratio not to exceed 2.50x and maintain a minimum fixed charge coverage ratio of no less than 4.00x. We had no amounts drawn on our SciPlay Revolver as of December 31, 2020. SciPlay Initial Public Offering and Noncontrolling Interest On May 7, 2019, SciPlay completed an initial public offering (“IPO”) for an 18.0% minority interest in our Social gaming business, after giving effect to the underwriters’ partial exercise of their over-allotment option on June 4, 2019. SciPlay has two classes of common stock - Class A common stock, which is traded on The NASDAQ Global Select Market under the symbol “SCPL,” and Class B common stock. On all matters submitted to a vote of SciPlay stockholders, Class B common stock entitles SGC to ten votes per share (for so long as the number of shares of SciPlay common stock beneficially owned by SGC represents at least 10% of SciPlay’s outstanding shares of common stock and, thereafter, one vote per share), and SciPlay Class A common stock entitles its owners to one vote per share. As of December 31, 2020, SGC owned all of the outstanding Class B common stock, which represents approximately 82.0% of SciPlay’s total outstanding shares of common stock and approximately 97.8% of the combined voting power of both classes of SciPlay’s outstanding common stock. Accordingly, SGC continues to control shares representing a majority of the combined voting power in SciPlay and continues to have a controlling financial interest in and consolidate SciPlay, subsequent to the IPO. The corporate structure of the above transaction is commonly referred to as an “Up‑C” structure, which allows us to continue to realize tax benefits associated with owning interests in an entity that is treated as a partnership, or “pass-through” entity, for income tax purposes following the IPO. In connection with the SciPlay IPO we also entered into the following transactions: • A tax receivable agreement (“TRA”), which provides for the payment by SciPlay to SGC of 85% of the amount of tax benefits, if any, that SciPlay actually realizes (or in some circumstances is deemed to realize) in connection with increases in the tax basis of assets of SciPlay Parent Company, LLC (“SciPlay Parent LLC”) in connection with the SciPlay IPO, redemption or exchanges of membership interest or certain distributions and other tax benefits related to SciPlay’s making of payments under the TRA. • An Intercompany Services Agreement, under which SGC provides to SciPlay certain corporate level general and administrative services, including but not limited to, finance, corporate development, human resources, legal (which could include liability related to litigation awards related to SciPlay), information technology and rental fees for shared assets. These expenses are charged to SciPlay and settled in cash. • An intellectual property license agreement (“IP License Agreement”), pursuant to which SciPlay acquired certain licenses from a restricted subsidiary of SGC for a one-time payment of $255 million. • SciPlay Holding Company, LLC (“SciPlay Holding”), a subsidiary of SciPlay, entered into a $150 million revolving credit agreement (the “SciPlay Revolver”) that matures in May 2024 (see Note 15). As a result of these transactions, in 2019 we received $312 million in net proceeds from the offering (net of $30 million used by SciPlay to pay the offering fees and balance retained by SciPlay for general corporate purposes), which has enabled us to make substantial payments to reduce our debt. The noncontrolling interest share of equity in SciPlay is reflected as a component of the noncontrolling interest in the accompanying consolidated balance sheets and was $129 million and $104 million as of December 31, 2020 and 2019, respectively. The legal entities that comprise SciPlay are unrestricted subsidiaries under our credit agreement and the indentures governing the Senior Notes. Significant Accounting Policies Additional accounting policy disclosures are provided within the applicable Notes. Cash and cash equivalents Cash and cash equivalents include all cash balances and highly liquid investments with an original maturity 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. Restricted cash We are required by gaming regulations to maintain sufficient reserves in restricted cash accounts to be used for the purpose of funding payments to WAP jackpot winners. These restricted cash balances are based primarily on the jackpot meters displayed to slot players or for previously won jackpots and vary by jurisdiction. Compliance with maintaining adequate restricted cash balances and complying with appropriate investment guidelines for jackpot funding is periodically reported to gaming authorities Additionally, restricted cash balances also include funds contractually held for iLottery player reimbursements. 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 business segments in building our strong brand presence across multiple channels of distributions. We account for the minimum guaranteed obligations within accrued 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 D&A. 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. Amortization expense related to these licenses and recorded in D&A for the years ended December 31, 2020, 2019 and 2018 was $73 million, $81 million and $61 million, respectively. The following are our total minimum guaranteed obligations for the periods presented: As of December 31, 2020 2019 Accrued liabilities $ 45 $ 39 Other long-term liabilities 133 172 Total minimum guarantee obligations $ 178 $ 211 Weighted average remaining term (in years) 4.4 4.7 The following are our remaining expected future payments of minimum guarantee obligations: Year Ending December 31, 2021 2022 2023 2024 2025 After 2025 Expected future payments $45 $44 $30 $30 $29 $— Other assets We capitalize debt issuance costs associated with long-term line-of-credit arrangements and amortize such amounts ratably over the term of the arrangement as an adjustment to interest expense. We assess the recoverability of our other long-term assets whenever events arise or circumstances change that indicate the carrying value of the asset may not be recoverable. Advertising costs The cost of advertising is expensed as incurred and totaled $124 million, $125 million and $102 million in 2020, 2019 and 2018, respectively. R&D R&D relates primarily to software product development costs and is expensed as incurred until technological feasibility has been established. Employee related costs associated with product development are included in R&D. Foreign currency translation We have significant operations where the local currency is the functional currency, including our operations in the U.K., Europe, Australia and Canada. 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 are accumulated as a separate component of accumulated other comprehensive loss in stockholders’ deficit. Gains or losses resulting from foreign currency transactions are included in Other (expense) income, net. Comprehensive loss We include and classify in comprehensive loss unrealized gains and losses from our foreign currency translation adjustments, certain gains or losses associated with pension or other post-retirement benefits, including prior service costs or credits and transition assets or obligations, the effective portion of derivative financial instruments designated as hedging instruments, and net investment non-derivative hedge of our investments in certain of our international subsidiaries. New Accounting Guidance - Recently Adopted The FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) in 2016. The new guidance replaces the incurred loss impairment approach in legacy U.S. GAAP with a methodology that reflects future credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans and other financial instruments, we are required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which reflects losses that are probable. We adopted ASC 326 as of January 1, 2020 using the modified retrospective method for all financial assets measured at amortized cost, which resulted in a $6 million cumulative-effect adjustment increase to accumulated loss. See Note 6 for our credit losses policy and the adoption impact of ASC 326 on our consolidated financial statements. The FASB issued ASU No. 2018-13, Fair Value Measurement , and several subsequent amendments (collectively, Topic 820) in 2018. The standard amends the required quantitative and qualitative disclosure requirements for recurring and nonrecurring fair value measurements. We adopted this standard effective January 1, 2020. The adoption of this standard did not have a material impact on our financial statement disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes , to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes, enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years with early adoption permitted. We adopted this standard effective January 1, 2020 on a prospective basis for all relevant adjustments. 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 are currently assessing the impact of these standards on our consolidated financial statements. We do not expect that any other recently issued accounting guidance will have a significant effect on our consolidated financial statements. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Year Ended December 31, 2019 Gaming Lottery SciPlay Digital Unallocated and Reconciling Items (1) Total Total revenue $ 1,748 $ 911 $ 466 $ 275 $ — $ 3,400 AEBITDA (2)(3) 865 404 122 63 (120) $ 1,334 Reconciling items to consolidated net loss before income taxes: D&A (437) (67) (7) (76) (60) (647) Restructuring and other (10) (1) (3) (9) (5) (28) EBITDA from equity investments (2) (67) (67) Earnings from equity investments 24 24 Interest expense (589) (589) Loss on debt financing transactions (100) (100) Gain on remeasurement of debt 9 9 Other expense, net (7) (7) Stock-based compensation (37) (37) Net loss before income taxes $ (108) Assets as of December 31, 2019 $ 4,932 $ 1,321 $ 379 $ 891 $ 286 $ 7,809 Capital expenditures for the year ended December 31, 2019 $ 167 $ 49 $ 9 $ 38 $ 22 $ 285 (1) Includes amounts not allocated to the business segments (including corporate costs) and reconciling items to reconcile the total business segments AEBITDA to our consolidated net loss before income taxes. (2) AEBITDA and EBITDA from equity investments are described in footnote (2) to the first table in this Note 2. (3) The year ended December 31, 2019 includes a charge of $10 million for intellectual property royalties paid by SciPlay to the Gaming business segment, which is no longer being paid as of May 7, 2019 in connection with the IP License Agreement described in Note 1. Year Ended December 31, 2018 Gaming Lottery SciPlay Digital Unallocated and Reconciling Items (1) Total Total revenue $ 1,831 $ 846 $ 416 $ 270 $ — $ 3,363 AEBITDA (2)(3) 920 391 94 54 (129) $ 1,330 Reconciling items to consolidated net loss before income taxes: D&A (493) (59) (17) (67) (54) (690) Restructuring and other (7) (2) (29) (20) (195) (253) EBITDA from equity investments (2) (67) (67) Earnings from equity investments 25 25 Interest expense (597) (597) Loss on debt financing transactions (93) (93) Gain on remeasurement of debt 43 43 Other income, net 7 7 Stock-based compensation (44) (44) Net loss before income taxes $ (339) Assets as of December 31, 2018 $ 5,094 $ 1,300 $ 183 $ 883 $ 258 $ 7,718 Capital expenditures for the year ended December 31, 2018 $ 249 $ 76 $ 3 $ 28 $ 35 $ 391 (1) Includes amounts not allocated to the business segments (including corporate costs) and reconciling items to reconcile the total business segments AEBITDA to our consolidated net loss before income taxes. (2) AEBITDA and EBITDA from equity investments are described in footnote (2) to the first table in this Note 2. (3) The year ended December 31, 2018 includes a charge of $26 million for intellectual property royalties paid by SciPlay to the Gaming business segment, which is no longer being paid as of May 7, 2019 in connection with the IP License Agreement described in Note 1. The following tables present revenue by customer location and property and equipment by geographic location: Year Ended December 31, 2020 2019 2018 Revenue: U.S. $ 1,819 $ 2,195 $ 2,190 Other 905 1,205 1,173 Total $ 2,724 $ 3,400 $ 3,363 As of December 31, 2020 2019 Property and equipment, net: U.S. $ 260 $ 299 Other 155 201 Total $ 415 $ 500 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The following table disaggregates our revenues by type within each of our business segments: Revenue recognized for Year Ended December 31, Revenue category 2020 2019 2018 Gaming Gaming operations $ 332 $ 597 $ 632 Gaming machine sales 312 609 646 Gaming systems 171 295 320 Table products 111 247 233 Total $ 926 $ 1,748 $ 1,831 Lottery Instant products $ 579 $ 588 $ 592 Lottery systems 339 323 254 Total $ 918 $ 911 $ 846 SciPlay Mobile $ 506 $ 391 $ 323 Web and other 76 75 93 Total $ 582 $ 466 $ 416 Digital Sports and platform $ 127 $ 119 $ 101 Gaming and other 171 156 169 Total $ 298 $ 275 $ 270 General We evaluate the recognition of revenue and rental income based on the criteria set forth in ASC 606 or ASC 842 (ASC 840 prior to adoption of ASC 842), as appropriate. Revenue is recognized net of incentive rebates and discounts when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Sales taxes and all other items of a similar nature are excluded from the measurement of the transaction price and shipping and handling activities are treated as a fulfillment of our promise to transfer the goods, hence, included in cost of sales. Our credit terms are predominately short term in nature. We also grant extended payment terms under certain Gaming contracts, with financing terms of more than 12 months, primarily where the sale is secured by the related equipment sold. For these contracts with customers for which the financing component is determined to be significant to the contract, and have financing terms of more than 12 months, the contract transaction price is adjusted for the effect of a financing component (time value of money). Any sales commissions associated with the sale or placement of our products and services are expensed as incurred as contracts associated with sales commissions are generally completed within a one-year period. Contracts with Customers with Multiple Promised Goods and Services We enter into contracts with customers that include multiple promises (such as gaming machines, gaming systems hardware and software, installation, service and maintenance, warranties, product support or lottery systems and hardware, installation and maintenance bundled promises). For such contracts, the transaction price is allocated to each distinct performance obligation using an estimate of stand-alone selling price, which is generally based on observable prices or a cost plus margin approach. The establishment of stand-alone selling price requires judgment as to whether there is a sufficient quantity of items sold or substantively renewed on a stand-alone basis and those prices demonstrate an appropriate level of concentration to conclude that a stand-alone selling price exists. The guidance in ASC 606 requires that we apply judgments or estimates to determine both the performance obligations and the stand-alone selling prices of identified performance obligations. Contracts with multiple promised goods and services described above will often involve significant judgment in determining whether each promise is distinct or should be combined with other promises in such contracts in concluding on the distinct performance obligations for such contracts. Such judgment generally requires an assessment of the level of integration and interdependency between individual components particularly in our gaming systems and certain digital contracts with customers. Associated with these same contracts, we also apply significant judgment to determine the stand-alone selling prices of the identified performance obligations. In certain contracts with customers, we bundle the selling price for multiple promised goods or services or we may license systems for which the solutions we provide are highly customized and therefore the prices we charge are either uncertain, highly variable, or both. Gaming Operations Gaming operations revenues are generated by providing customers access to proprietary land-based gaming equipment and content, table game products and VLTs under a variety of recurring operating, service, or rental contracts, for which consideration is based upon a percentage of Coin-in, a percentage of Net win, or a fixed daily/monthly fee, with variability generally resolved in the reporting period. For these contracts with customers, we generally transfer control and recognize revenue or rental income over time based on the amount we expect to receive as described and classify such revenue or rental income as services revenue. Payments from customers under these contracts are typically due on a monthly basis. Jackpot expense for our WAP services is recorded as a reduction to revenue, which decreased revenue and cost of services by $16 million, $20 million, and $22 million for the years ended December 31, 2020, 2019, and 2018 respectively. The amount of rental income revenue that is outside the scope of ASC 606 was $209 million, $373 million, and $265 million for the years ended December 31, 2020, 2019, and 2018, respectively. Gaming Machine Sales These contracts with customers include the sale of gaming machines, including game content, electronic table game products and parts (including game themes and conversion kits). We transfer control and recognize revenue from the sale of gaming machines at a point in time upon delivery of gaming machines to our customers or distributors pursuant to the terms of the contract. Gaming Systems Gaming systems contracts with customers can include a comprehensive suite of technology solutions provided to gaming operators, including perpetual licenses to core system solutions and non-core system solutions and other applications and tools. Gaming systems products also include the iVIEW touch screen display, which facilitates the player experience, bonus features, customer service, and employee functions and ongoing hardware and software maintenance services and upgrades. Determination of performance obligations and timing of the transfer of control varies by contract. Generally, these contracts contain multiple promised goods and services, including the following: (i) core system software license; (ii) non-core system software license(s); (iii) professional services; (iv) system-based hardware; (v) in-game hardware products; and (vi) software and hardware maintenance and product support. Control transfers and we recognize revenue from the sale of perpetual gaming systems licenses and various hardware products at a point in time when the gaming system is available for use by a customer which is no earlier than the commencement of the license term, and for the hardware products upon delivery. For contracts that include new core gaming system installations, control is not considered transferred until control of the core gaming system license is transferred as the additional promises are generally highly dependent on the core gaming system. Software and hardware maintenance and product support services are considered stand-ready obligations, therefore control transfers and revenue is recognized over time over the term of the maintenance and support period. Table Products Table products revenue is generated from supplying and maintaining or selling table game products, primarily including automatic card shufflers, deck checkers, table roulette chip sorters and other land-based table gaming equipment. We transfer control and recognize revenue from the sale of table products at a point in time upon delivery to our customers or distributors pursuant to the terms of the contract. For supply and maintenance contracts, for which consideration is primarily based on a fixed monthly fee, we generally transfer control and recognize rental income over the term of the supply period and classify such rental income as service revenue. Such contracts are generally short-term in nature. We also license our proprietary table games content, for which revenue is recognized at a point in time under the licensing of intellectual property guidance as such licenses are functional licenses. Lottery Instant Products Our instant products revenue is primarily generated under long-term contracts to supply instant products and provide related services to our Lottery customers. For instant products that are sold on a PPU and POS basis, we generally have a single performance obligation of a promise to supply the instant products. Control transfers and we recognize revenue from the sale of such instant products when the lotteries have taken delivery of shipments of instant products pursuant to the terms of the contract. For instant products that are sold on a POS basis, we are compensated based on retail sales, therefore the timing difference between the recognition of revenue, the billing of our customers and the receipt of payments depends on retail sales. For our SGEP contracts, revenue is recognized when a lottery retailer activates associated instant tickets, which timing corresponds with how we satisfy our performance obligation. The guidance in ASC 606 requires that we apply judgment to determine the timing of control transfer of performance obligations in our Lottery instant products contracts. For instant products that are sold under POS contracts, we generally have a single performance obligation of a promise to supply the instant products. The determination of when control transfers requires significant judgment because lotteries take delivery of shipments of instant products, but we retain the risk of such inventory until retail sales of such tickets takes place. We have determined control transfers upon delivery to a lottery-controlled warehouse, because we do not have the ability to direct the use of such instant products subsequent to delivery. Lottery Systems Our Lottery business segment offers our customers a number of related, value-added services as part of an integrated product offering. These services include lottery systems, including point-of-sale terminals and other equipment, software, data communication services and support and instant game validation systems, and software, hardware and related services for sports wagering and keno systems. For our integrated lottery systems service contracts (described above), our single performance obligation is a promise to perform a series of stand-ready services to operate a fully-functional draw lottery. Revenue is recognized over time in an amount generally based on a percentage of sales of the related games, which represents our measure of progress toward satisfying our performance obligation. For our perpetual licensing of customized lottery software contracts, we generally recognize revenue over time using costs incurred to date relative to total estimated completion costs to measure progress toward satisfying our performance obligations, which we believe best depicts the transfer of control to the customer. Maintenance on lottery software and lottery terminals is considered a stand-ready obligation, with control transferring and revenue being recognized over time ratably over the maintenance and support period. SciPlay SciPlay revenues are generated from the sale of virtual coins, chips and bingo cards (“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). SciPlay distributes its games through various global social web and mobile platforms such as Facebook , Apple , Google and Amazon , with some of the games available on Microsoft and other web and mobile platforms. Control transfers and SciPlay recognizes revenues from player purchases of coins, chips and cards as the coins, chips and cards are consumed for game play and cannot be redeemed nor exchanged for cash. SciPlay determined through a review of play behavior that game players generally do not purchase additional coins, chips and cards until their existing coins, chips and cards balances have been substantially consumed. As SciPlay is able to track the duration between purchases of coins, chips and cards for individual game players for specific games, SciPlay is able to reliably estimate the period of time over which coins, chips and cards are consumed. Accordingly, for most games, SciPlay recognizes revenue using an item-based revenue model. Because SciPlay has control over the content and functionality of games before they are accessed by the end user, SciPlay has determined it is 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 services. All SciPlay revenue is classified as services revenue. Digital Digital revenue is generated from professional services related to highly customized software design, development, licensing, maintenance and support services associated with a comprehensive suite of technology solutions, including sports books and betting markets across both fixed-odds and parimutuel betting styles. Additionally, through our integrated suite of various platform and technology solutions, we provide gaming operators optional portals for reporting and administrative functions, and access to a wide portfolio of content, including casino, lottery and bingo style games. Determination of performance obligations and timing of the transfer of control vary based on the nature of the contract. Generally, these contracts contain multiple promises, including the following: (i) implementation of customized software solution and the associated software license; (ii) support services and unspecified software updates; (iii) professional development services; and (iv) access to the game content. For new customers and initial implementations, control generally transfers and we recognize revenue from the implementation of a customized software solution and the associated software license over time using costs incurred to date relative to total estimated completion costs to measure progress toward satisfying our performance obligations, which we believe best depicts the transfer of control to the customer. For license renewals, revenue is recognized at a point in time under the licensing of intellectual property guidance as such licenses are functional licenses. Support services and unspecified software updates are considered stand-ready obligations, therefore control transfers and revenue is recognized over time ratably over the term of the support period. Professional development services generally relate to post-go live development, and control transfers and revenue is recognized over time as services are rendered. We also generate revenue from various content aggregation platforms, remote gaming servers, and various other platforms, which deliver a wide spectrum of internally developed and branded games and popular third-party provided games to gaming operators. We provide daily access to these platforms and are typically compensated based on variable consideration, such as a percentage of net gaming revenue with variability generally resolved in the reporting period. Substantially all Digital revenue is classified as services revenue. Contract Liabilities and Other Disclosures The following table summarizes the activity in our contract liabilities for the reporting period: Year Ended December 31, 2020 Contract liability balance, beginning of period (1) $ 109 Liabilities recognized during the period 56 Amounts recognized in revenue from beginning balance (76) Contract liability balance, end of period (1) $ 89 (1) Contract liabilities are included within Accrued liabilities and Other long-term liabilities in our consolidated balance sheets. The timing of revenue recognition, billings and cash collections results in billed receivables, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on our consolidated balance sheets. Other than contracts with customers with financing arrangements exceeding 12 months, revenue recognition is generally proximal to conversion to cash, except for Lottery instant products sold under percentage of retail sales contracts. Revenue is recognized for such contracts upon delivery to our customers, while conversion to cash is based on the retail sale of the underlying tickets to end consumers. As a result, revenue recognition under ASC 606 does not approximate conversion to cash for such contracts in any periods presented. Total revenue recognized under such contracts was $93 million, $95 million and $103 million for the years ended December 31, 2020, 2019, and 2018 respectively. The following table summarizes our opening and closing balances in these accounts (other than contract liabilities disclosed above): Receivables Contract Assets (1) End of period balance, December 31, 2019 $ 808 $ 121 End of period balance, December 31, 2020 636 127 (1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets. |
Restructuring and other
Restructuring and other | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and other | Restructuring and other Restructuring and other includes charges or expenses attributable to: (i) employee severance; (ii) management restructuring and related costs; (iii) restructuring and integration; (iv) cost savings initiatives; (v) major litigation; and (vi) acquisition related and other unusual items. The following table summarizes pre-tax restructuring and other costs for the periods presented: Year Ended December 31, 2020 2019 2018 Employee severance and related (1) $ 41 $ 9 $ 37 Acquisition-related costs (2) — — 8 Contingent acquisition consideration (3) — 2 29 Legal and related (4) — — 152 Restructuring, integration and other 26 17 27 Total $ 67 $ 28 $ 253 (1) The year ended December 31, 2020 includes $32 million in severance and other benefits granted to employees as a result of COVID-19 related austerity measures. (2) The year ended December 31, 2018, includes $8 million related to NYX acquisition. (3) Represents contingent consideration fair value adjustment (see Note 16). (4) In the fourth quarter of 2018 we settled our previous litigation with ShuffleTech for $152 million. |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Loss Per Share | Basic and Diluted Net Loss Per ShareBasic and diluted net loss attributable to SGC per share were the same, as any additional common stock equivalents would be anti-dilutive. We excluded 2 million, 1 million and 2 million stock options from the calculation of diluted weighted-average net loss attributable to SGC per share for the years ended December 31, 2020, 2019 and 2018, respectively, which would be anti-dilutive due to the net loss attributable to SGC in those periods. In addition, we excluded 3 million RSUs from the calculation of diluted weighted-average net loss attributable to SGC per share for each of the years ended December 31, 2020, 2019 and 2018, which would be anti-dilutive due to the net loss attributable to SGC in those periods. |
Accounts Receivable and Notes R
Accounts Receivable and Notes Receivable and Credit Quality of Receivables | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable and Notes Receivable and Credit Quality of Receivables | Receivables, Allowance for Credit Losses and Credit Quality of Receivables Receivables Receivables are recorded at the invoiced amount less allowance for credit losses and imputed interest, if any. For a portion of our receivables, we have provided extended payment terms with installment payment terms greater than 12 months and in certain international jurisdictions up to 36 months. We have a total of $134 million in gross receivables with extended payment terms as of December 31, 2020. Interest income, if any, is recognized ratably over the life of the receivable, and any related fees or costs to establish the receivables are charged to selling, general and administrative expense as incurred, as they are immaterial. Actual or imputed interest, if any, is determined based on current market rates at the time the receivables with extended payment terms originated and is recorded ratably over the payment period, which approximates the effective interest method. We generally impute interest income on all receivables with payment terms greater than one year that do not contain a stated interest rate. Our general policy is to recognize interest on receivables until a receivable is deemed non-performing, which we define as payments being overdue by 180 days beyond the agreed-upon terms. When a receivable is deemed to be non-performing, the item is placed on non-accrual status and interest income is recognized on a cash basis. Accrued interest, non-performing receivables and interest income were immaterial for all periods presented. Effective January 1, 2020, we changed our receivables presentation and combined accounts receivable and notes receivable into a single line item on our balance sheets due to their similar characteristics and have reclassified the prior period balances to conform to the current year presentation. The following table summarizes the components of current and long-term receivables, net: As of December 31, 2020 2019 Current: Receivables $ 697 $ 791 Allowance for credit losses (81) (36) Current receivables, net 616 755 Long-term: Receivables 25 53 Allowance for credit losses (5) — Long-term receivables, net 20 53 Total receivables, net $ 636 $ 808 Allowance for Credit Losses As described in Note 1, results for reporting periods effective January 1, 2020 are presented in accordance with ASC 326 while prior period amounts continue to be reported in accordance with previously applicable U.S. GAAP. We recorded a net increase to accumulated loss of $6 million for the cumulative effect of adopting ASC 326, which was primarily related to incremental allowance for credit losses associated with our current receivables and contract assets that were not required under previously applicable U.S. GAAP. The receivables allowance for credit losses is our best estimate of the amount of expected credit losses in our existing receivables over the contractual term. We evaluate our exposure to credit loss on both a collective and individual basis. We evaluate such receivables on a geographic basis and take into account any relevant available information, which begins with historical credit loss experience and consideration of current and expected conditions and market trends (such as general economic conditions, other microeconomic and macroeconomic considerations, etc.) and reasonable and supportable forecasts that could impact the collectability of such receivables over the contractual term individually or in the aggregate. Changes in circumstances relating to these factors may result in the need to increase or decrease our allowance for credit losses in the future. We manage our receivable portfolios using both geography and delinquency as key credit quality indicators. The following table summarizes geographical delinquencies of total receivables, net: As of December 31, 2020 Balances over 90 days past due December 31, 2019 Balances over 90 days past due Receivables: U.S. and Canada $ 443 $ 88 $ 534 $ 65 International 279 52 310 55 Total receivables 722 140 844 120 Receivables allowance U.S. and Canada (43) (26) (13) (8) International (43) (24) (23) (23) Total receivables allowance (86) (50) (36) (31) Receivables, net $ 636 $ 90 $ 808 $ 89 Account balances are charged against the allowances after all internal and external collection efforts have been exhausted and the potential for recovery is considered remote. The activity in our allowance for receivable credit losses for each of the years ended December 31, 2020 and 2019 is as follows: 2020 2019 Total U.S and Canada International Total Beginning allowance for credit losses (1) $ (42) $ (14) $ (28) $ (40) Provision (56) (31) (25) (9) Charge-offs and recoveries 12 2 10 13 Allowance for credit losses as of December 31 $ (86) $ (43) $ (43) $ (36) (1) Reflects $6 million related to implementation of ASC 326 for the 2020 beginning balance At December 31, 2020, 14% of our total receivables, net, were past due by over 90 days compared to 11% at December 31, 2019. Credit Quality of Receivables In our Gaming machine sales business, we file UCC-1 financing statements domestically in order to retain a security interest in the gaming machines that underlie a significant portion of our domestic receivables until the receivable balance is fully paid. However, the value of the gaming machines, if repossessed, may be less than the balance of the outstanding receivable. For international customers, depending on the country and our historic collection experience with the customer, we may obtain pledge agreements, bills of exchange, guarantees, post-dated checks or other forms of security agreements designed to enhance our ability to collect the receivables, although a majority of our international receivables do not have these features. In our Gaming operations business, because we own the Participation gaming machines that are leased or otherwise provided to the customer, in a bankruptcy the customer has to generally either accept or reject the lease or other agreement and, if rejected, our gaming machines are returned to us. Our receivables related to revenue earned on Participation gaming machines and all other revenue sources are typically unsecured claims. Due to the significance of our gaming machines to the ongoing operations of our casino customers, we may be designated as a key vendor in any bankruptcy filing by a casino customer, which can enhance our position above other creditors in the bankruptcy. Due to our successful collection experience and our continuing relationship with casino customers and their businesses, it is infrequent that we repossess gaming machines from a customer in partial settlement of outstanding receivable balances. In those unusual instances where repossession occurs to mitigate our exposure on the related receivable, the repossessed gaming machines are subsequently resold in the used gaming machine market; however, we may not fully recover the receivable from this re-sale. We have certain concentrations of outstanding receivables in international locations that impact our assessment of the credit quality of our receivables. We monitor the macroeconomic and political environment in each of these locations in our assessment of the credit quality of our receivables. The international customers with significant concentrations (generally deemed to be exceeding 10%) of our receivables with terms longer than one year are in the Latin America region (“LATAM”) and are primarily comprised of Mexico, Peru and Argentina. The following table summarizes our LATAM receivables: As of December 31, 2020 Current or Not Yet Due Balances Over 90 days Past Due Receivables $ 107 $ 49 $ 58 Allowance for credit losses (53) (14) (39) Receivables, net $ 54 $ 35 $ 19 We increased our allowance for credit losses by $56 million for the year ended December 31, 2020. The increase during 2020 was primarily related to certain Gaming customers in LATAM (which transact with both domestic and international subsidiaries) as those customers were particularly affected by macroeconomic factors exacerbated by COVID-19 and extended COVID-19 closures of gaming operations establishments with COVID-related closures lasting longer than in other geographic regions and a high percentage remain closed today. As noted above, we have concentrations of receivables in LATAM, where customers generally take longer to pay us than those from other geographies and late payments have continued to persist through 2020, in which we collected substantially less compared to historical quarterly collections primarily due to factors noted above. In addition, customers in this region expect and have often been granted extended payment terms, as described above, which increases our risk of collections. Our customers in LATAM have been and are expected to continue to be negatively affected by the factors noted above. Our policy is to continuously review receivables and as information concerning credit quality arises, we reassess our expectations of future losses. If such losses exceed our existing allowance for credit losses we record an incremental reserve at that time. Our current allowance for credit losses represents our current expectation of credit losses; however future expectations could change as the ultimate impact of the COVID-19 disruption remains uncertain, particularly as to the financial stability of our customers during and after the COVID-19 disruption period. The fair value of receivables is estimated by discounting expected future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings and remaining maturities. As of December 31, 2020 and December 31, 2019, the fair value of receivables, net, approximated the carrying value due to contractual terms of receivables generally being less than 24 months. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined on the first-in, first-out or weighted moving average method. Our inventory primarily consists of gaming machines and table products for sale and related parts, instant products for our Participation and PPU arrangements and our licensed brand merchandise. We determine the lower of cost or net realizable value of our inventory based on estimates of potentially excess and obsolete inventories after considering historical and forecasted demand and average selling prices. Our policy is to continuously review and assess the value of our inventory, especially during the COVID-19 disruption period which has led to a significant decline in demand for our gaming units due to customers delaying or reducing their capital expenditures. We continuously monitor demand, assess our internal outlook and rationalize our product roadmap, all of which could result in recording adjustments to the valuation of inventory. Inventories consisted of the following: As of December 31, 2020 2019 Parts and work-in-process $ 122 $ 153 Finished goods 69 91 Total inventories $ 191 $ 244 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment are stated at cost, and when placed into service, are depreciated using the straight-line method over the estimated useful lives of the assets as follows: Item Estimated Life in Years Lottery and other machinery and equipment 3 - 15 Gaming equipment 1 - 5 Transportation equipment 3 - 8 Furniture and fixtures 5 - 10 Buildings and improvements 15 - 40 Costs incurred for equipment associated with specific Gaming, Lottery and Digital contracts not yet placed into service are classified as construction in progress and are not depreciated until placed into service. Leasehold improvements are amortized over the lesser of the term of the corresponding lease or their useful life. We periodically review the estimated useful lives of our fixed assets and assess the recoverability of long-lived assets (or asset groups) whenever events or changes in circumstances indicate that the carrying value of such an asset (or asset groups) may not be recoverable. Property and equipment, net consisted of the following: As of December 31, 2020 2019 Land $ 15 $ 15 Buildings and leasehold improvements 132 129 Gaming and lottery machinery and equipment 1,026 1,028 Furniture and fixtures 32 31 Construction in progress 43 30 Other property and equipment 277 263 Less: accumulated depreciation (1,110) (996) Total property and equipment, net $ 415 $ 500 Depreciation expense is excluded from Cost of services, Cost of product sales, Cost of instant products and Other operating expenses and is separately presented within D&A. Year Ended December 31, 2020 2019 (1) 2018 (2) Depreciation expense $ 180 $ 217 $ 232 (1) Includes assets held for sale impairment charges of $9 million. (2) Includes assets held for sale impairment charges of $19 million. Capitalized installation costs Certain Participation contracts require us to perform installation activities. Direct installation activities, which include costs for installing gaming machines, terminals, facilities wiring, computers, internal labor and travel, are performed at the inception of the contract to enable us to perform under the terms of the contract. Such activities do not represent a separate earnings process and, therefore, the installation costs are capitalized and amortized over the estimated contract term in the case of lottery-related contracts and typically over the life of the equipment when no long-term contract exists, as is often the case within our Participation gaming business. We had $14 million and $20 million of capitalized installation costs, net of accumulated depreciation, included within lottery machinery and equipment included within property and equipment, net as of December 31, 2020 and 2019, respectively. There were no capitalized installation costs recorded related to gaming activities as of December 31, 2020 and 2019. Assets Held for Sale We had $25 million in assets held for sale as of December 31, 2019 that related to our Gaming business segment and consisted of certain properties in Chicago. These assets are included within Prepaid expenses, deposits and other current assets and were reported at the lower of the carrying value or fair market value, less expected costs to sell. We measured the fair value of assets held for sale under a market approach and have categorized such measurements as Level 3 in the fair value hierarchy, which resulted in the impairment charges noted in the table above. These assets were sold during the first quarter of 2020 for which we received total net proceeds of $22 million. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | AcquisitionsWe account for business combinations in accordance with ASC 805, which requires us 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 from acquisition accounting. 2020 Acquisitions On June 22, 2020, SciPlay completed the acquisition of all of the issued and outstanding capital stock of privately held mobile and social game company Come2Play, Ltd. (“Come2Play”), which expands SciPlay’s existing portfolio of social games. Come2Play offers a solitaire social game targeted towards casual game players on the same platform in which SciPlay currently offers its existing games. The total purchase consideration was $18 million, which includes our estimate of contingent acquisition consideration. Our allocation of the purchase price resulted in $13 million intangible assets primarily allocated to customer relationships and acquired technology and $7 million in excess purchase price allocated to goodwill. 2018 Acquisitions NYX Gaming Group Limited On January 5, 2018, we completed the acquisition of all outstanding ordinary shares of NYX, creating a leading digital provider of sports wagering, iGaming and iLottery technologies, platforms, content, products and services. We paid $666 million in cash to acquire ordinary shares and other securities and to redeem NYX’s outstanding debt (including $92 million paid during the fourth quarter of 2017 to acquire NYX ordinary shares and other securities). The fair value of our NYX non-controlling equity interest held immediately before the acquisition date was $90 million. We incurred $8 million and $15 million of NYX acquisition-related costs which were recorded in Restructuring and other for the years ended December 31, 2018 and 2017, respectively. The following table summarizes the allocation of the purchase price, which reflects an $8 million adjustment from the preliminary allocation during the first quarter of 2018 and primarily related to the provisional amounts recognized for certain receivables and liabilities for which we have subsequently obtained and evaluated more detailed information than existed at the measurement date: January 5, 2018 Cash, cash equivalents and restricted cash $ 23 Accounts receivable and other current assets (1) 56 Property and equipment and other non-current assets (1) 22 Goodwill 368 Intangible assets 350 Total assets $ 819 Current liabilities (2) $ 74 Deferred income taxes 66 Assumed debt and other liabilities 300 Total liabilities $ 440 Total consideration transferred $ 379 (1) Including $41 million and $13 million of receivables and contract assets, respectively. (2) Including $16 million of contract liabilities. Cash, cash equivalents and restricted cash, 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 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. The fair value of intangible assets was determined using a combination of the relief from royalty method and the excess earnings method using Level 3 inputs in the hierarchy as established by ASC 820. The discount rates used in the valuation analysis ranged between 10% and 14%, and the royalty rate used was 0.5%. The following table details the intangible assets that have been identified: Fair Value Weighted Average Useful Life (Years) Customer relationships $ 214 7 Intellectual property (1) 127 7 Trade names 10 7 (1) Primarily consists of core technology and content. The factors contributing to the recognition of acquisition goodwill are based on enhanced financial and operational scale, market diversification, expected cost and operational synergies, assembled workforce and other strategic benefits. None of the resultant goodwill is expected to be deductible for income tax purposes. NYX revenue and net loss since the acquisition date included in our consolidated results were as follows: Year Ended December 31, 2018 Revenue $ 198 Net loss 41 The acquired NYX business was integrated into our Digital business segment. The following unaudited pro forma financial information for the years ended December 31, 2018 and 2017 give effect to the NYX acquisition as if it had been completed on January 1, 2017: Year Ended December 31, 2018 2017 Revenue $ 3,363 $ 3,265 Net loss 345 308 The unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of what the operating results actually would have been if the NYX acquisition had taken place on January 1, 2017, nor is it indicative of future operating results. The pro forma amounts include the historical operating results of SGC and NYX prior to the acquisition, with adjustments factually supportable and directly attributable to the NYX acquisition, primarily related to the effect of fair value adjustments and related depreciation and amortization, acquisition-related fees and expenses, interest expense related to additional borrowings used to complete the acquisition and the effect of repayments of NYX historical debt as a result of the acquisition. Don Best and other On November 1, 2018, we completed the acquisition of Don Best, a leading global supplier of real-time betting data and pricing for North American sporting events. Don Best was integrated into our Digital business segment. The total purchase considerations of these acquisitions was $46 million, which includes contingent acquisition consideration of $9 million. Our allocation of the purchase price resulted in $42 million intangible assets allocated to customer relationship and acquired technology and $11 million in excess purchase price allocated to goodwill, and the factors contributing to the recognition of goodwill are based on expected synergies resulting from these acquisitions, including the expansion of the customer base and new markets. Goodwill is not deductible for income tax purposes. Contingent acquisition consideration value is primarily based on reaching certain earnings-based metrics, with a maximum payout of up to $17 million as of December 31, 2020. |
Intangible Assets, net and Good
Intangible Assets, net and Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net and Goodwill | Intangible Assets, net and Goodwill Intangible Assets, net The following tables present certain information regarding our intangible assets as of December 31, 2020 and December 31, 2019. Amortizable intangible assets are being amortized on a straight-line basis over their estimated useful lives with no estimated residual values, which materially approximates the expected pattern of use. As of December 31, 2020 December 31, 2019 Gross Carrying Accumulated Net Balance Gross Carrying Accumulated Net Balance Amortizable intangible assets: Customer relationships $ 1,108 $ (478) $ 630 $ 1,086 $ (383) $ 703 Intellectual property 958 (648) 310 931 (563) 368 Licenses 558 (405) 153 548 (329) 219 Brand names 128 (86) 42 123 (72) 51 Trade names 117 (42) 75 116 (31) 85 Patents and other 24 (16) 8 24 (15) 9 2,893 (1,675) 1,218 2,828 (1,393) 1,435 Non-amortizable intangible assets: Trade names 83 (2) 81 83 (2) 81 Total intangible assets $ 2,976 $ (1,677) $ 1,299 $ 2,911 $ (1,395) $ 1,516 The following reflects intangible amortization expense included within D&A: Year Ended December 31, 2020 2019 2018 Amortization expense $ 255 $ 306 $ 297 Estimated intangible asset amortization expense for the year ending December 31, 2021 and each of the subsequent four years: Year Ending December 31, 2021 2022 2023 2024 2025 Amortization expense $ 223 $ 215 $ 187 $ 171 $ 107 Goodwill The table below reconciles the change in the carrying value of goodwill, by business segment, for the period from December 31, 2018 to December 31, 2020. Gaming (1) Lottery (2) SciPlay Digital Totals Balance as of December 31, 2018 $ 2,449 $ 352 $ 115 $ 364 $ 3,280 Foreign currency adjustments — (3) — 3 — Balance as of December 31, 2019 2,449 349 115 367 3,280 Impairment (54) — — — (54) Acquired goodwill — — 7 — 7 Foreign currency adjustments 30 4 2 23 59 Balance as of December 31, 2020 $ 2,425 $ 353 $ 124 $ 390 $ 3,292 (1) Accumulated goodwill impairment charges for the Gaming segment as of December 31, 2020 were $989 million. (2) Accumulated goodwill impairment charges for the Lottery segment as of December 31, 2020 were $137 million. Goodwill and intangible assets with indefinite useful lives Goodwill represents the excess of the purchase price over the fair value of the assets acquired and liabilities assumed of acquired companies. We test goodwill for impairment annually as of October 1 of each fiscal year or more frequently if events arise or circumstances change that indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value. We evaluate goodwill at the reporting unit level by comparing the carrying value of each reporting unit to its fair value using a quantitative impairment test or qualitative assessment, as deemed appropriate. Under the qualitative assessment option, we first assess qualitative factors to determine whether the fair value of a reporting unit is not “more than likely” less than its carrying value, which is commonly referred to as “Step 0”. If the fair value of the reporting unit is greater or if it is more likely than not that the fair value of the reporting unit is greater than its carrying value, goodwill is not considered impaired. For reporting units where we perform the quantitative process, we are required to compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows and a market approach, to the respective carrying value, which includes goodwill. If the fair value of the reporting unit is less than its carrying value, an impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit’s fair value determined based on a quantitative test, not to exceed the total amount of goodwill allocated to that reporting unit. Our annual goodwill impairment tests as of October 1, 2020 indicated estimated fair values were in excess of their carrying values for each of our reporting units that have goodwill balances. We conduct impairment tests of our indefinite-lived assets annually in the fourth quarter of each fiscal year, or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of an indefinite-lived asset is less than its carrying value or when circumstances no longer continue to support an indefinite useful life. Our annual impairment tests as of October 1, 2020 indicated estimated fair values were more likely than not in excess of the carrying values for all of our remaining indefinite-lived intangible assets. Q1 2020 Legacy U.K. Gaming Impairment Charge A substantial portion of our legacy U.K. Gaming reporting unit revenue comes from Ladbrokes Coral Group (acquired by Entain (formerly GVC Holdings PLC) in March 2018), which operates LBOs in the U.K. On April 1, 2019 the maximum stakes limit on fixed odds betting terminals was reduced from £100 to £2. As a result of this change, LBO operators began to rationalize their retail operations, which among other measures has included closure of certain LBO shops. Consequently, as of October 1, 2019, we concluded that an elevated risk of goodwill impairment existed for our legacy U.K. Gaming reporting unit as adverse changes in projections for future operating results or other key assumptions, such as projected revenue, profit margin, capital expenditures or cash flows associated with investments included in that reporting unit could lead to future goodwill impairments. During the first quarter of 2020, the COVID-19 disruptions resulted in the widespread closures of LBO shops across the U.K., which, along with global economic uncertainty, contributed to further deterioration in business conditions from our 2019 annual goodwill test date. This had an adverse effect on our legacy U.K. Gaming reporting unit (part of our Gaming business segment), which necessitated performing a quantitative goodwill impairment test during the first quarter of 2020. We performed this quantitative impairment test by comparing the fair value of our legacy U.K. Gaming reporting unit to its carrying value, including goodwill. The fair value of our legacy U.K. Gaming reporting unit was determined using a combination of both an income approach, based on the present value of discounted cash flows, and a market approach. Due to market volatility and limited market data points specific to the nature of our legacy U.K. Gaming reporting unit operations, we placed greater weight on the income approach than on the market approach. As a result of this analysis, during the first quarter of 2020 we recognized a partial impairment charge totaling $54 million, which is the amount by which the carrying value exceeded the estimated fair value. This impairment charge resulted in no tax benefit. We used projections of revenues, profit margin, operating costs, capital expenditures and cash flows that primarily considered general economic and market conditions and estimated future results including the estimated impact of the COVID-19 disruptions. We used a range of different scenarios and derived estimated fair value based on an equal weighting of these scenarios to reflect the economic uncertainty resulting from the COVID-19 disruptions and the timing and magnitude of the economic recovery following the COVID-19 disruptions coupled with the impact of the regulatory change. The following ranges of the key estimates and assumptions were used in the discounted cash flow analysis: • Revenue growth for FY 2021 between negative 9% and negative 20%, an average revenue growth for FY 2022 to FY 2027 between positive 3% and positive 5%, and terminal revenue growth rate of positive 2.0%; • An average profit margin ranging from 13% to 23%; • Assumptions regarding future capital expenditures reflective of maintaining our current customer contracts; and • An overall discount rate ranging from 8.5% to 10.0%. In our market comparable analysis, we considered revenue and EBITDA multiples ranging from 2.1x to 2.7x and 5.7x to 7.5x, respectively, and ultimately selected multiples at the low end of the range. Other long-lived assets and intangible assets with finite useful lives Intangible assets with finite useful lives are amortized over two to fifteen years using the straight-line method, which materially approximates the pattern of the assets’ use. Factors considered when assigning useful lives include legal, regulatory and contractual provisions, product obsolescence, demand, competition and other economic factors. We assess the recoverability of long-lived assets and intangible assets with finite useful lives whenever events arise or circumstances change that indicate the carrying value of an 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 value 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 value of the asset exceeds the fair market value of the asset. |
Software, net
Software, net | 12 Months Ended |
Dec. 31, 2020 | |
Research and Development [Abstract] | |
Software, net | Software, net We capitalize direct costs used in the development of internal-use software. Amounts capitalized are amortized over a period of two We purchase, license and incur costs to develop external use software to be used in the products we sell, lease or market to customers. Costs incurred in creating software are expensed when incurred as R&D until technological feasibility has been established, after which costs are capitalized up to the date the software is available for general release to customers. Generally, the software we develop reaches technological feasibility when a working model of the software is available. We capitalize the payments made for software that we purchase or license for use in our products that has previously met the technological feasibility criteria prior to our purchase or license. Amortization of capitalized software costs is recorded over the estimated economic life, which is typically eight For our game themes, we have determined that such products reach technological feasibility when internal testing is complete and the product is ready to be submitted to gaming regulators for approval. We incur and capitalize regulatory approval costs for our game themes after technological feasibility is achieved. Amortization of regulatory approval costs is recorded over the estimated economic life, which is typically two Software, net consisted of the following: As of December 31, 2020 2019 Software $ 1,197 $ 1,173 Accumulated amortization (970) (915) Software, net $ 227 $ 258 In the years ended December 31, 2020 and 2019, we capitalized $85 million and $101 million, respectively, of development expenditures. The following reflects amortization of software included within D&A: Year Ended December 31, 2020 2019 2018 Amortization expense $ 119 $ 124 $ 161 |
Equity Investments
Equity Investments | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments | Equity Investments We account for our equity investments where we own a non-controlling interest, but exercise significant influence, under the equity method of accounting. Under the equity method of accounting, our original cost of the investment is adjusted for our share of equity in the earnings of the equity investee and reduced by dividends and distributions of capital received. We evaluate our investments in unconsolidated affiliates, for impairment whenever events or changes in circumstances indicate that the carrying value of the investment may have experienced an “other-than-temporary” decline in value. If such conditions exist, we compare the estimated fair value of the investment to its carrying value to determine if an impairment is indicated and determine whether the impairment is “other-than-temporary” based on an assessment of all relevant factors, including consideration of our intent and ability to retain our investment until the recovery of the unrealized loss. We estimate fair value using a discounted cash flow analysis based on estimated future results of, or cash distributions from, the investee. Impairment charges, if any, are recorded in Earnings (loss) from equity investment. At December 31, 2020, we had investments in a number of entities (principally in our Lottery business segment) which are accounted for under the equity method of accounting because we do not have a controlling financial interest but we have the ability to exercise significant influence. For these investments, equity method income (loss) is recorded in “Earnings (loss) from equity investments”, with our investment recorded in “Equity investments.” See the tables below for details of our equity investments: Equity Investment Purpose Concession and/or Supplier Agreement Term Ownership Interest Segment LNS (1) Exclusive operator of Italian instant game lottery Initial term of nine years beginning October 2010, which was subsequently extended for up to nine years (September 2028) 20% Lottery Northstar NJ (2) Provision of marketing and sales services to New Jersey Lottery October 1, 2013 through 2029 18% Lottery Northstar SupplyCo New Jersey LLC (NJ SupplyCo) (3) Separate agreement under which we provide instant games to Northstar NJ October 1, 2013 through 2029 30% Lottery (1) Other members of consortium are Lottomatica Holdings, S.r.l. and Arianna 2001. LNS succeeded Consorzio Lotterie Nazionali, a consortium comprised of essentially the same group that owns LNS, as holder of the concession as the exclusive operator of the Italian Gratta e Vinci instant game lottery. (2) Other members are IGT Global Solutions Corporation and a subsidiary of the administrator of the Ontario Municipal Employees Retirement System, this agreement provides us substantive participating rights. (3) Other members are Gtech Corporation (now known as IGT) and OSI LTT NJ Holdings Inc., a wholly owned subsidiary of OMERS Administration Corporation. Equity investment Balance as of Equity earnings (loss) recognized Cash distributions and dividends received Equity Investment 2020 2019 2020 2019 2018 2020 2019 2018 LNS $ 202 $ 201 $ 10 $ 16 $ 17 $ 27 $ 33 $ 38 GLB and CSG 26 26 (2) 3 1 — — 11 Greece 18 20 (4) 1 1 — 2 6 Northstar NJ and NJ Supply Co 14 21 (11) — 3 3 5 — Other 2 5 1 4 3 4 9 8 Total under equity method $ 262 $ 273 $ (6) $ 24 $ 25 $ 34 $ 49 $ 63 Revenue recognized from sales to investee for the Year Ended December 31, Equity Investment 2020 2019 2018 LNS $ 39 $ 46 $ 40 Northstar NJ and NJ Supply Co 24 24 23 Other 3 6 7 Total $ 66 $ 76 $ 70 LNS On December 4, 2017, we announced that LNS had accepted a contract extension of up to nine years for the Italian Scratch and Win concession. As a part of the contract extension, LNS was required to pay an upfront fee of €800 million in three installments. The first installment of €50 million was paid as of December 31, 2017; payments of the second installment of €300 million and third installment of €450 million were made in April 2018 and October 2018, respectively. Our pro-rata concession funding payments to LNS were €10 million ($12 million), €60 million ($74 million) and €90 million ($104 million), respectively, and were treated as contributions to our equity method investment as contributions were made. As of December 31, 2020 we had accounts receivable of $14 million from LNS. Northstar New Jersey Northstar New Jersey is entitled to receive annual incentive compensation payments from the State of New Jersey to the extent the lottery's net income for the applicable year exceeds specified target levels, subject to a cap of 3% of the applicable year’s net income. Northstar New Jersey is responsible for payments to the State of New Jersey to the extent certain net income targets are not achieved by the New Jersey Lottery, subject to a cap of 2% of the applicable year’s net income. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following: As of December 31, 2020 2019 Compensation and benefits $ 94 $ 94 Accrued interest 86 74 Customer advances, deposits and funds held on behalf of customers 82 23 Contract liability 69 84 Taxes, other than income 42 36 Accrued licenses 28 26 Operating lease liabilities 26 26 Contingent acquisition consideration liabilities 11 7 Other 148 125 Total $ 586 $ 495 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases On January 1, 2019, we adopted ASC 842 using the optional transition method provided by ASU 2018-11. Our operating leases primarily consist of real estate leases such as offices, warehouses, and research and development facilities. Our leases have remaining lease terms ranging from 1 year to 10 years, some of which include options to extend the leases for up to 5 years or to terminate the leases within 1 year. Our finance leases are immaterial. Supplemental balance sheet and cash flow information related to operating leases is as follows: As of December 31, 2020 December 31, 2019 Operating lease right-of-use assets (1) $ 94 $ 105 Accrued liabilities 26 26 Operating lease liabilities 77 88 Total operating lease liabilities $ 103 $ 114 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases for the year ended December 31, 2020 and 2019, respectively $ 31 $ 33 Weighted average remaining lease term, years 5 5 Weighted average discount rate 5 % 5 % (1) Operating lease right-of-use assets obtained in exchange for lease obligations were immaterial. Lease liability maturities: 2021 2022 2023 2024 2025 Thereafter Less Imputed Interest Total Operating leases $ 30 $ 24 $ 20 $ 16 $ 11 $ 15 $ (13) $ 103 Our total operating lease expenses were $33 million, $37 million and $39 million for the years ended December 31, 2020, 2019 and 2018, respectively. The total amount of variable and short-term lease payments was immaterial for all periods presented. As of December 31, 2020, we did not have material additional operating leases that have not yet commenced. |
Long-Term and Other Debt
Long-Term and Other Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term and Other Debt | Long-Term and Other Debt Outstanding Debt and Finance Leases The following table reflects our outstanding debt: As of December 31, 2020 2019 Final Maturity Rate(s) Face Value Unamortized debt discount/premium and deferred financing costs, net Book Value Book Value Senior Secured Credit Facilities: SGI Revolver 2024 variable $ 535 $ — $ 535 $ 195 SGI Term Loan B-5 2024 variable 4,060 (48) 4,012 4,042 SciPlay Revolver 2024 variable — — — — SGI Senior Notes: 2025 Secured Notes (1) 2025 5.000 % 1,250 (13) 1,237 1,235 2026 Secured Euro Notes (2) 2026 3.375 % 399 (4) 395 359 2025 Unsecured Notes 2025 8.625 % 550 (8) 542 — 2026 Unsecured Euro Notes (2) 2026 5.500 % 306 (3) 303 276 2026 Unsecured Notes 2026 8.250 % 1,100 (12) 1,088 1,085 2028 Unsecured Notes 2028 7.000 % 700 (9) 691 690 2029 Unsecured Notes 2029 7.250 % 500 (7) 493 493 SGI Subordinated Notes: 2021 Notes 2020 6.250 % — — — 339 Finance lease obligations as of December 31, 2020 payable monthly through 2023 and other (3) 2023 4.217 % 7 — 7 11 Total long-term debt outstanding $ 9,407 $ (104) $ 9,303 $ 8,725 Less: current portion of long-term debt (44) (45) Long-term debt, excluding current portion $ 9,259 $ 8,680 Fair value of debt (4) $ 9,574 (1) In connection with the February 2018 Refinancing (as defined below), we entered into certain cross-currency interest rate swap agreements to achieve more attractive interest rates by effectively converting $460 million of the fixed-rate, U.S. Dollar-denominated 2025 Secured Notes, including the semi-annual interest payments through October 2023, to a fixed-rate Euro-denominated debt, with a fixed annual weighted average interest rate of approximately 2.946%. These cross-currency swaps have been designated as a hedge of our net investment in certain subsidiaries. (2) We designated a portion of our 2026 Secured Euro Notes as a net investment non-derivative hedge of our investments in certain of our international subsidiaries that use the Euro as their functional currency in order to reduce the volatility in our operating results caused by the change in foreign currency exchange rates of the Euro relative to the U.S. Dollar (see Note 16 for additional information). The total change in the face value of the 2026 Secured Euro Notes and 2026 Unsecured Euro Notes due to changes in foreign currency exchange rates since the issuance was a reduction of $7 million, of which a loss of $51 million and gains of $9 million and $43 million were recognized on remeasurement of debt in the Consolidated Statements of Operations for the years ended December 31, 2020, 2019, and 2018, respectively. (3) Includes $7 million related to certain revenue transactions presented as debt in accordance with ASC 470. (4) Fair value of our fixed rate and variable interest rate debt is classified within Level 2 in the fair value hierarchy and has been calculated based on the quoted market prices of our securities. The following reflects the principal amount of debt and finance lease payments due over the next five years and beyond as of December 31, 2020: Due Total Principal Due Series of Debt/Finance lease Principal Due per Series of Debt/Lease 2021 $ 44 Term Loan B-5 $ 42 Finance lease obligation and other 2 2022 45 Term Loan B-5 42 Finance lease obligation and other 3 2023 44 Term Loan B-5 42 Finance lease obligation and other 2 2024 4,469 Term Loan B-5 3,934 Drawn Revolving Credit Facility 535 2025 1,800 2025 Secured Notes 1,250 2025 Unsecured Notes 550 2026 and beyond 3,005 2026 Secured Euro Notes 399 2026 Unsecured Euro Notes 306 2026 Unsecured Notes 1,100 2028 Unsecured Notes 700 2029 Unsecured Notes 500 Unamortized deferred financing costs and discount/premium (104) Total debt book value as of December 31, 2020 $ 9,303 Debt Financing Transactions February 2018 Refinancing On February 14, 2018, SGI issued an additional $900 million aggregate principal amount of its 2025 Secured Notes, €325 million aggregate principal amount of its new 2026 Secured Euro Notes and €250 million aggregate principal amount of its new 2026 Unsecured Euro Notes, and entered into an amendment to our credit agreement to refinance our existing term loan B-4 facility and increase the term loans outstanding by $900 million under a new term loan B-5 facility (the “February 2018 Refinancing”). March 2019 Refinancing On March 19, 2019, SGI issued $1,100 million in aggregate principal amount of its new 2026 Unsecured Notes. We used the net proceeds of the 2026 Unsecured Notes offering to redeem $1,000 million of our outstanding 2022 Unsecured Notes and pay accrued and unpaid interest thereon plus related premiums, fees, and costs, which redemption was completed on April 4, 2019, and paid related fees and expenses of the 2026 Unsecured Notes offering (the “March 2019 Refinancing”). November 2019 Refinancing On November 20, 2019, we entered into an amendment to the revolving credit facility under the credit agreement to refinance the existing revolving credit facility and to provide for an aggregate of $650 million of revolving credit commitments through 2024, and on November 26, 2019, SGI issued $700 million in aggregate principal amount of its new 2028 Unsecured Notes and $500 million in aggregate principal amount of its new 2029 Unsecured Notes (the “November 2019 Refinancing”). We used the net proceeds of the 2028 Unsecured Notes and the 2029 Unsecured Notes, together with cash on hand and borrowings under the revolving credit facility, to redeem the remaining $1,200 million of our outstanding 2022 Unsecured Notes and all $244 million of our outstanding 2020 Notes and pay accrued and unpaid interest thereon plus related premiums, fees, and costs, which redemption was completed on December 12, 2019, and paid related fees and expenses of the offering. Issuance of 2025 Unsecured Notes and Redemption of 2021 Notes On July 1, 2020, we completed the issuance of $550 million in aggregate principal amount of 8.625% senior unsecured notes due 2025 in a private offering and received total net proceeds of $543 million. We used a portion of the net proceeds to redeem all $341 million of our outstanding 2021 Notes and paid accrued and unpaid interest thereon plus related premiums, fees and costs, which redemption was completed on July 17, 2020, and are using the remaining net proceeds to fund working capital and general corporate purposes. The 2025 Unsecured Notes were issued pursuant to an indenture dated as of July 1, 2020 (the “2025 Unsecured Notes Indenture”). We may redeem some or all of the 2025 Unsecured Notes at any time prior to July 1, 2022 at a redemption price equal to 100% of the principal amount of the 2025 Unsecured Notes plus accrued and unpaid interest, if any, to the date of the redemption plus a “make whole” premium. We may redeem some or all of the 2025 Unsecured Notes at any time on or after July 1, 2022 at the prices specified in the 2025 Unsecured Notes Indenture. The 2025 Unsecured Notes are senior obligations of SGI, rank equally to all SGI’s existing and future senior debt and rank senior to all of SGI’s existing and future debt, if any, that is expressly subordinated to the 2025 Unsecured Notes. The 2025 Unsecured Notes are guaranteed on a senior unsecured basis by SGC and all of its wholly owned domestic restricted subsidiaries (other than SGI, the unrestricted business entities comprising our SciPlay business segment and certain immaterial subsidiaries), subject to customary exceptions. Debt issuance costs We capitalize debt issuance costs associated with long-term financing arrangements and amortize the deferred debt issuance costs over the term of the arrangement using the effective interest method. The capitalized debt issuance costs associated with long-term debt financing, other than line-of-credit arrangements, are presented as a direct reduction from the carrying value of long-term debt, consistent with the treatment of unamortized debt discount. In connection with the February 2018 Refinancing, the March 2019 Refinancing and the November 2019 Refinancing, we reflected $26 million, $16 million and $17 million, respectively, in financing costs presented primarily as a reduction to long-term debt. In connection with the July 2020 issuance of the 2025 Unsecured Notes, we reflected $8 million in financing costs presented primarily as a reduction to long-term debt. Loss on Debt Financing Transactions The following are components of the loss on debt financing transactions resulting from debt extinguishment and modification accounting: Years Ended December 31, 2020 2019 2018 Repurchase and cancellation of principal balance at premium $ — $ 80 $ 110 Unamortized debt (premium) discount and deferred financing costs, net — 20 (30) Third party debt issuance fees 1 — 13 Total loss on debt financing transactions $ 1 $ 100 $ 93 Description of Outstanding Debt Credit agreement SGC and certain of its subsidiaries are party to a credit agreement, dated as of October 18, 2013, by and among SGI, as the borrower, SGC, as a guarantor, Bank of America, N.A., as administrative agent, and the lenders and other agents party thereto (the “credit agreement”). As of December 31, 2020, the credit agreement included (a) a revolving credit facility of $650 million through November 20, 2024, with up to $350 million available for issuances of letters of credit and (b) a $4,060 million term B-5 loan facility that matures August 14, 2024. The term B-5 loans amortize in equal quarterly installments in an amount equal to 1.00% per annum of the stated principal amount thereof, with the remaining balance due at final maturity. Our 2021 notes were extinguished on July 17, 2020 and are therefore no longer subject to provisions. All of the debt incurred under the revolving credit facility is subject to accelerated maturity if loans under our term B-5 loan facility remain outstanding 91 days prior to their stated maturity date of August 14, 2024 and we do not have sufficient liquidity at that time. In this case, liquidity would be based on our unrestricted cash (excluding SciPlay cash) and availability under our revolving credit facility. SGI may voluntarily prepay all or any portion of outstanding amounts under the credit agreement at any time, without premium or penalty, subject to redeployment costs in the case of a prepayment of eurocurrency loans on a day that is not the last day of the relevant interest period. The applicable margin for the term B-5 loans is 2.75% per annum for eurocurrency (LIBOR) loans and 1.75% per annum for base rate loans. The applicable margin for revolver borrowings is 3.00% per annum for eurocurrency (LIBOR) loans and 2.00% per annum for base rate loans. SGI is required to pay commitment fees to revolving lenders on the actual daily unused portion of the revolving commitments at a rate of 0.50% per annum through maturity, subject to a step-down to 0.375% based upon the achievement of certain net first lien leverage ratios. SciPlay Revolver SciPlay Holding, a subsidiary of SciPlay, entered into the SciPlay Revolver, a $150 million revolving credit agreement, dated as of May 7, 2019, that matures in May 2024, by and among SciPlay Holding, as the borrower, SciPlay Parent LLC, as a guarantor, the subsidiary guarantors party thereto (which are all domestic entities that comprise our SciPlay business segment), the lenders party thereto and Bank of America, N.A., as administrative agent and collateral agent. The interest rate is either Adjusted LIBOR (as defined in the SciPlay 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 SciPlay 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 the option of SciPlay Holding. SciPlay Holding is 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 fee varies based on the total net leverage ratio and is subject to a floor of 0.375%. The SciPlay Revolver provides for up to $15 million in letter of credit issuances. Notes The following table sets forth the date of the indenture, redemption prices and dates and ranking, guarantees and collateral for each of our outstanding series of notes: Series of Notes Indenture Date Redeemable at Make Whole Price Prior To (1) Ranking, Guarantees and Collateral 2025 Secured Notes October 17, 2017 October 15, 2020 Senior Secured 2026 Secured Euro Notes (2) February 14, 2018 February 15, 2021 Senior Secured 2025 Unsecured Notes July 1, 2020 July 1, 2022 Senior Unsecured 2026 Unsecured Euro Notes (2) February 14, 2018 February 15, 2021 Senior Unsecured 2026 Unsecured Notes March 19, 2019 March 15, 2022 Senior Unsecured 2028 Unsecured Notes November 26, 2019 May 15, 2023 Senior Unsecured 2029 Unsecured Notes November 26, 2019 November 15, 2024 Senior Unsecured (1) Refers to the date prior to which such series of notes may be redeemed at a redemption price equal to 100% of the principal amount of such notes plus accrued and unpaid interest, if any, to the date of redemption plus a “make whole” premium. On or after such date, such notes may be redeemed at the prices specified in the indenture governing such notes. (2) Effective April 30, 2018, the 2026 Secured Euro Notes and 2026 Unsecured Euro Notes were listed on the Official List of The International Stock Exchange. Ranking, guarantees and collateral Borrowings under the credit agreement and the Secured Notes are senior secured obligations of SGI, rank equally to all of SGI’s existing and future senior debt and rank senior to all of SGI’s existing and future senior subordinated debt, if any. The Unsecured Notes are senior unsecured obligations of SGI, rank equally to all of SGI’s existing and future senior debt and rank senior to all of SGI’s existing and future senior subordinated debt, if any. Borrowings under the credit agreement and the Senior Notes are guaranteed by us and each of our current and future direct and indirect wholly owned domestic subsidiaries (other than SGI, the unrestricted business entities comprising our SciPlay business segment and certain immaterial subsidiaries), subject to certain customary exceptions as set forth in the credit agreement and the indentures governing such notes. Borrowings under the credit agreement and the Senior Notes are structurally subordinated to all of the liabilities of our Non-Guarantor Subsidiaries. The obligations under the credit agreement and the Secured Notes are secured by a first priority lien on (1) substantially all the property and assets (real and personal, tangible and intangible) of SGI and the other guarantors, and (2) 100% of the capital stock (or other equity interests) of the direct domestic subsidiaries of SGC, SGI and the guarantors and 65% of the capital stock (or other equity interests) of the direct foreign subsidiaries of SGC, SGI and the guarantors, in each case, subject to certain customary exceptions. The SciPlay 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. Restrictive covenants Our only financial maintenance covenant (excluding SciPlay’s Revolver) is contained in SGI’s credit agreement. Prior to the Credit Agreement Amendment dated May 8, 2020, this covenant was tested at the end of each fiscal quarter and required us to not exceed a maximum consolidated net first lien leverage ratio of 5.00x Consolidated EBITDA (as defined in the credit agreement). Prior to the Credit Agreement Amendment and Credit Agreement Extension Amendment, this ratio stepped down |
Fair Value of Measurements
Fair Value of Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
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 and liability in an orderly transaction between market participants at the measurement date. We estimate the fair value of our assets and liabilities when required 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, restricted cash, receivables, other current assets, accounts payable and accrued liabilities, approximates their recorded values. Our assets and liabilities measured at fair value on a recurring basis are described below. Derivative Financial Instruments As of December 31, 2020, we held the following derivative instruments that were accounted for pursuant to ASC 815: Interest Rate Swap Contracts We currently use interest rate swap contracts as described below to manage exposure to interest rate fluctuations by reducing the uncertainty of future cash flows on our variable rate debt. In February 2018, we entered into interest rate swap contracts to hedge a portion of our interest expense associated with our variable rate debt to effectively fix the interest rate that we pay. These interest rate swap contracts are designated as cash flow hedges under ASC 815. We pay interest at a weighted-average fixed rate of 2.4418% and receive interest at a variable rate equal to one-month LIBOR. The total notional amount of interest rate swaps outstanding was $800 million as of December 31, 2020. These hedges mature in February 2022. These hedges are highly effective in offsetting changes in our future expected cash flows due to the fluctuation in the one-month LIBOR rate associated with our variable rate debt. We qualitatively monitor the effectiveness of these hedges on a quarterly basis. As a result of the effective matching of the critical terms on our variable rate interest expense being hedged to the hedging instruments being used, we expect these hedges to remain highly effective. All gains and losses from these hedges are recorded in Other comprehensive income (loss) until the future underlying payment transactions occur. Any realized gains or losses resulting from the hedges are recognized (together with the hedged transaction) as interest expense. We estimate the fair value of our interest rate swap contracts by discounting the future cash flows of both the fixed rate and variable rate interest payments based on market yield curves. The inputs used to measure the fair value of our interest rate swap contracts are categorized as Level 2 in the fair value hierarchy as established by ASC 820. The following table shows the gains (losses) and interest expense on our interest rate swap contracts: Year Ended December 31, 2020 2019 2018 Losses recorded in accumulated other comprehensive loss, net of tax $ (6) $ (11) $ — Interest expense recorded related to interest rate swap contracts 15 1 3 We do not expect to reclassify material amounts from Accumulated other comprehensive loss to interest expense in the next twelve months. The following table shows the effect of interest rate swap contracts designated as cash flow hedges on the consolidated statements of operations: Year Ended December 31, 2020 Year Ended December 31, 2019 Interest expense Interest expense Total interest expense which reflects the effects of cash flow hedges $ (503) $ (589) Hedged item (20) (20) Derivative designated as hedging instrument 5 19 Cross-Currency Interest Rate Swaps In connection with the February 2018 Refinancing, we entered into certain cross-currency interest rate swap agreements to achieve more beneficial interest rates by effectively converting $460 million of our fixed-rate U.S. Dollar-denominated 2025 Secured Notes, including the semi-annual interest payments through October 2023, to fixed-rate Euro-denominated debt, with a fixed annual weighted average interest rate of approximately 2.946%. We have designated these cross-currency interest rate swap agreements as a net investment hedge of our investments in certain of our international subsidiaries that use the Euro as their functional currency in order to reduce the volatility in our operating results caused by the changes in foreign currency exchange rates of the Euro relative to the U.S. Dollar. We use the spot method to measure the effectiveness of our net investment hedge. Under this method, for each reporting period, the change in the fair value of the $460 million cross-currency interest rate swaps is reported in foreign currency translation gain (loss) in Accumulated other comprehensive loss. The cross-currency basis spread (along with other components of the cross-currency swaps’ fair value excluded from the spot method effectiveness assessment) are amortized and recorded to Interest expense. We evaluate the effectiveness of our net investment hedge at the beginning of each quarter. The following table shows the fair value of our hedges: As of Balance Sheet Line Item December 31, 2020 December 31, 2019 Interest rate swaps (1)(3) Other liabilities $ 22 $ 16 Cross-currency interest rate swaps (2)(3) Other assets 14 41 (1) The loss of $6 million, $16 million, and $0 million for the year ended December 31, 2020, 2019 and 2018, respectively, are reflected in Derivative financial instrument unrealized (loss) gain in Other comprehensive loss. (2) The loss of $27 million, gains of $23 million and $18 million for the years ended December 31, 2020, 2019 and 2018, respectively, is reflected in Foreign currency translation gain (loss) in Other comprehensive loss. (3) The inputs used to measure the fair value of our interest rate swap contracts are categorized as Level 2 in the fair value hierarchy. Net Investment Non-derivative Hedge - 2026 Secured Euro Notes For the fourth quarter of 2020, we designated $133 million of our 2026 Secured Euro Notes as a net investment non-derivative hedge of our investments in certain of our international subsidiaries that use the Euro as their functional currency in order to reduce the volatility in our results caused by the changes in foreign currency exchange rates of the Euro relative to the U.S. Dollar. We use the spot method to measure the effectiveness of our net investment non-derivative hedge. Under this method, for each reporting period, the change in the hedged portion of the carrying value of the 2026 Secured Euro Notes due to remeasurement is reported in Foreign currency translation gain (loss) in Other comprehensive loss, and the remaining remeasurement change is recognized in Loss on remeasurement of debt in our consolidated statements of operations. We evaluate the effectiveness of our net investment non-derivative hedge at the beginning of each quarter and the inputs used to measure the fair value of this non-derivative hedge are categorized as Level 2 in the fair value hierarchy. Contingent Acquisition Consideration Liabilities In connection with our acquisitions, we have recorded certain contingent consideration liabilities, of which the values are primarily based on reaching certain earnings-based metrics. The related liabilities were recorded at fair value on the acquisition date as part of the consideration transferred and are remeasured each reporting period. The inputs used to measure the fair value of our liabilities are categorized as Level 3 in the fair value hierarchy. We remeasured contingent acquisition consideration at each reporting period. These remeasurements included increases to the projected earnings-based measures and also the probability of achievement (categorized as Level 3 in the fair value hierarchy as established by ASC 820), which resulted in increases to the calculated fair value of contingent acquisition consideration by $0 million, $2 million and $29 million for the years ended December 31, 2020, 2019 and 2018, respectively. These changes were recorded in Restructuring and other. Contingent acquisition consideration liabilities as of December 31, |
Stockholders' Deficit
Stockholders' Deficit | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Deficit | Stockholders’ Deficit The following reflects total stock-based compensation expense recognized under all programs: Year Ended December 31, 2020 2019 2018 Related to SGC stock options $ 9 $ 5 $ 12 Related to SGC RSUs 30 23 32 Related to SciPlay RSUs 22 9 — Total $ 61 $ 37 $ 44 The following table sets forth the change in the number of shares of common stock outstanding during the fiscal years ended December 31, 2020 and 2019: December 31, 2020 2019 Shares outstanding as of beginning of period 94 92 Shares issued as part of equity-based compensation plans and the ESPP, net of shares surrendered 1 2 Shares outstanding as of end of period 95 94 Series A Junior Participating Preferred Stock and Rights Agreement On June 19, 2017, the Board of Directors of SGC approved, and SGC entered into, a rights agreement between SGC and American Stock Transfer & Trust Company, LLC (the “Rights Agreement”). Concurrently, the Board of Directors of SGC adopted a resolution reserving for issuance a series of 20,000 shares of preferred stock. On January 10, 2018, the Rights Agreement was amended and restated to account for the Reincorporation Merger (the “Amended and Restated Rights Agreement”). In connection with the Amended and Restated Rights Agreement, the preferred stock was designated as Series A Junior Participating Preferred Stock, par value $.001 per share, upon the exercise of rights under the Amended and Restated Rights Agreement. The Amended and Restated Rights Agreement provides for a dividend of one preferred share purchase right (“Right”) for each share of common stock of SGC. Each Right entitles the holder to purchase one ten-thousandth of a share of Series A Junior Preferred Stock for a purchase price of $109.00, subject to adjustment as provided in the Amended and Restated Rights Agreement. On June 16, 2020, the Rights Agreement was further amended to extend its term to June 19, 2023 (subject to earlier expiration as described in the Rights Agreement). The Board will submit such amendment extending the Rights Agreement to a vote by the Company’s stockholders at the Company’s 2021 annual stockholders’ meeting. As of December 31, 2020, none of these shares were outstanding and no Rights were exercised. Scientific Games Stock-Based and Other Incentive Compensation Pursuant to our incentive stock plans we offer stock-based compensation in the form of stock options and RSUs to employees and our non-employee directors. The terms of such stock option and RSU awards, including the vesting schedule of such awards, are determined at our discretion subject to the terms of the applicable equity-based compensation plan. We also offer an ESPP, which allows for a total of up to 2 million shares of common stock to be purchased by eligible employees under offerings made each January 1 and July 1. Employees participate through payroll deductions up to a maximum of 15% of eligible compensation. The term of each offering period is six months and shares are purchased on the last day of the offering period at a 15% discount to the stock’s market value. For offering periods in 2020, 2019 and 2018 we issued approximately 80 thousand, 100 thousand and 83 thousand shares of common stock at an average price of $19.55 per share, $19.32 per share and $22.79 per share, respectively. Options granted over the last several years have generally become exercisable in four four We recognize expense for stock-based compensation plans based on the estimated fair value of the related awards in accordance with ASC 718. Stock options are granted with exercise prices that are not less than the fair market value of our common stock on the date of grant. We periodically grant certain stock-based awards that are contingent upon SGC or certain of our subsidiaries achieving certain pre-determined financial performance targets. Upon determining that the performance target is probable, the fair value of the award is recognized over the service period. Determining the probability of achieving a performance target requires estimates and judgment. As of December 31, 2020, we had approximately 23 million shares of common stock authorized for awards under the 2003 Incentive Compensation Plan, as amended and restated (the “2003 Plan”) (plus available shares from a pre-existing equity-based compensation plan). As of December 31, 2020, we had approximately 3 million shares reserved under the 2003 Plan for future grants of equity awards and less than 0.1 million shares available under a pre-existing plan. Stock Options During 2020, we issued 2 million stock options with a weighted average exercise price of $35.41 and a total grant date fair value of $54 million. At December 31, 2020, we had $33 million of unrecognized stock-based compensation expense relating to approximately 2 million unvested stock options that will be amortized over a weighted-average period of approximately two years and have an average remaining contract term of 6.3 years with a weighted average exercise price of $33.60. During the year ended December 31, 2020, we received $4 million in cash from the exercise of stock options. Restricted Stock Units A summary of the changes in RSUs outstanding under our equity-based compensation plans during 2020 is presented below: Number of Weighted Unvested RSUs as of December 31, 2019 2.9 $ 24.80 Granted 2.7 $ 13.75 Vested (1.3) $ 19.77 Cancelled (1.0) $ 19.25 Unvested RSUs as of December 31, 2020 3.3 $ 19.07 The weighted-average grant date fair value of RSUs granted during 2020 and 2019 was $13.75 and $21.78, respectively. The fair value of each RSU grant is based on the market value of our common stock at the time of grant. At December 31, 2020, we had $40 million of unrecognized stock-based compensation expense relating to unvested RSUs that will be amortized over a weighted-average period of approximately two years. The fair value at vesting date of RSUs vested during the years ended December 31, 2020, 2019 and 2018 was $16.8 million, $22.0 million and $88.0 million, respectively. SciPlay Stock-Based Compensation In 2019, SciPlay adopted the SciPlay Long-Term Incentive Plan (“SciPlay LTIP”). The SciPlay LTIP authorizes the issuance of up to 6.5 million shares of SciPlay’s Class A common stock to be granted in connection with awards of incentive and nonqualified stock options, restricted stock, RSUs, stock appreciation rights and performance-based awards. As of December 31, 2020, there were a total of 4.1 million time-based and performance-based SciPlay RSUs outstanding with an average grant price of $15.27 per share of SciPlay Class A common stock. As of December 31, 2020, SciPlay had $8 million in unrecognized stock-based compensation expense that is expected to be recognized over a weighted-average expected vesting period of 0.6 years. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | We have defined benefit pension plans for our U.K.-based union employees (the “U.K. Plan”) and certain Canadian-based employees (the “Canadian Plan”). Collectively these two plans are referred to as the “Pension Plans”. Retirement benefits under the U.K. Plan are generally based on an employee’s average compensation over the two years preceding retirement. Retirement benefits under the Canadian Plan are generally based on the number of years of credited service. Our policy is to fund the minimum contributions permissible by the applicable authorities. We estimate that $9 million will be contributed to the Pension Plans in fiscal year 2021. Our pension benefit costs are calculated using various actuarial assumptions and methodologies. These assumptions include discount rates, inflation, compensation increase rates, expected returns on plan assets, mortality rates and other factors. The assumptions used in recording the obligations under our plans represent our best estimates, and we believe that they are reasonable, based on information as to historical experience and performance and other factors that might cause future expectations to differ from past trends. Differences in actual experience or changes in assumptions may affect our pension obligations and future expense. The primary factors contributing to actuarial gains and losses each year are (1) changes in the discount rate used to value pension benefit obligations as of the measurement date and (2) differences between the expected and the actual return on plan assets. The following table sets forth the combined funded status of the Pension Plans and their reconciliation to the related amounts recognized in our Consolidated Financial Statements at our December 31, 2020 and 2019 measurement dates: December 31, 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 154 $ 125 Service cost 3 2 Interest cost 4 4 Participant contributions 1 1 Actuarial loss 17 21 Benefits paid (4) (3) Other, principally foreign exchange 5 4 Benefit obligation at end of year $ 180 $ 154 Change in plan assets: Fair value of plan assets at beginning of year $ 129 $ 107 Actual gain on plan assets 16 18 Employer contributions 4 4 Participant contributions 1 1 Benefits paid (5) (3) Other, principally foreign exchange 3 2 Fair value of assets at end of year $ 148 $ 129 Amounts recognized in the consolidated balance sheets: Funded status (current) $ — $ — Funded status (non-current) (32) (25) Accumulated other comprehensive loss: Unrecognized actuarial loss 40 34 Unrecognized prior service cost (2) — Deferred taxes — (1) Net amount recognized $ 6 $ 8 The following table presents the components of our net periodic pension benefit cost: Year Ended December 31, 2020 2019 2018 Components of net periodic pension benefit cost: Service cost $ 3 $ 2 $ 3 Interest cost 4 4 4 Expected return on plan assets (6) (5) (6) Amortization of actuarial losses 2 1 1 Net periodic cost $ 3 $ 2 $ 2 The accumulated benefit obligation for the Pension Plans was $180 million and $154 million as of December 31, 2020 and 2019, respectively. The underfunded status of the Pension Plans recorded as a long-term liability in our Consolidated Balance Sheets as of December 31, 2020 and 2019 was $32 million and $25 million, respectively. The amounts included in accumulated other comprehensive loss as of December 31, 2020 are expected to be recognized as components of net periodic pension benefit cost during the fiscal year ending December 31, 2021 are presented below: Unrecognized loss $ 2 Unrecognized prior service cost (1) Net amount expected to be recognized $ 1 The U.K. Plan is closed to new participants and pensionable earnings used to calculate retirement benefits are limited to a 2% annual increase while the plan is less than 100% funded. The investment policy is to maximize long-term financial return commensurate with security and minimizing risk. This is achieved by holding a portfolio of marketable investments that avoids over-concentration of investment and spreads assets both over industries and geographies. In setting investment strategy, we considered the lowest risk strategy that it could adopt in relation to the plan's liabilities and designed the asset allocation to achieve a higher return while maintaining a cautious approach to meeting the plan's liabilities. We considered a full range of asset classes, the risks and rewards of a range of alternative asset allocation strategies, the suitability of each asset class and the need for appropriate diversification. The current strategy in the U.K. Plan is to hold approximately 37% in a global return fund, approximately 4% in U.K. equities, approximately 10% in real estate, approximately 16% in non-U.K. equities, approximately 20% in Liability Driven Investments (LDI) and approximately 13% in corporate bonds and other. The current strategy in the Canadian Plan is to hold approximately 23% in Canadian equities, approximately 44% in non-Canadian equities and approximately 33% in bonds and other. The fair value of the plan assets for the Pension Plans at December 31, 2020 by asset category is presented below: Asset Category Market Value at 12/31/2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity securities (a) $ 58 $ 41 $ 17 $ — Global return fund (a) 32 — 32 — Corporate bonds (a) 25 — 25 — Government bonds 5 — 5 — Real estate 9 — — 9 LDI (Liability Driven Investment) 17 — 17 — Cash and cash equivalents (b) 2 2 — — Total pension assets $ 148 $ 43 $ 96 $ 9 (a) The assets are invested through managed funds that are valued using inputs derived principally from quoted prices in active markets for the underlying assets in the fund. The fair value of the plan assets for both of the Pension Plans at December 31, 2019 by asset category is presented below: Asset Category Market Quoted Significant Significant Equity securities (a) $ 62 $ 35 $ 27 $ — Global return fund (a) 19 — 19 — Corporate bonds (a) 13 — 13 — Government bonds 12 — 12 — Real estate 5 — — 5 LDI (Liability Driven Investment) 14 — 14 — Cash and cash equivalents (b) 4 4 — — Total pension assets $ 129 $ 39 $ 85 $ 5 (a) The assets are invested through managed funds that are valued using inputs derived principally from quoted prices in active markets for the underlying assets in the fund. The change in fair value of the Pension Plan assets valued using significant unobservable inputs (Level 3) is presented below: 2020 2019 Significant unobservable inputs (Level 3), beginning of period $ 5 $ 4 Unrealized gain on asset still held 4 1 Significant unobservable inputs (Level 3), end of period $ 9 $ 5 The table below presents the weighted-average actuarial assumptions used to determine the benefit obligation and net periodic benefit cost for the Pension Plans. U.K. Plan Canadian Plan 2020 2019 2018 2020 2019 2018 Discount rates: Benefit obligation 1.4 % 2.0 % 2.9 % 3.1 % 3.1 % 3.9 % Net periodic pension cost 1.4 % 2.0 % 2.6 % 3.1 % 3.9 % 3.6 % Rate of compensation increase 1.0 % 1.0 % 1.0 % 3.0 % 3.0 % 1.0 % Expected return on assets 3.6 % 5.1 % 5.0 % 5.2 % 5.5 % 5.7 % The overall expected long-term rate of return on assets assumption for the U.K. Plan has been determined as a weighted-average of the expected returns on the above asset classes for the U.K. Plan. The expected return on bonds is taken as the current redemption yield on the appropriate index. The expected return on equities and property is determined by assuming a measure of out performance over the gilt-yield. The expected return on cash is related to the Bank of England base rate. Returns so determined are reduced to allow for investment manager expenses. The overall expected long-term rate of return on assets assumption for the Canadian Plan has been determined by consideration of the current level of expected returns on risk-free investments (primarily government bonds), the historical level of the risk premium associated with the other asset classes in which the portfolio is invested and the expectations for future returns of each asset class based on our active management of certain portfolio classes. We expect benefit payments between $4 million and $6 million annually, which reflect expected future service, for each of the next five years. Additionally, we expect benefit payments of $32 million for benefit payments during the five years from 2026 to 2030. U.S. plan We have a 401(k) plan for U.S.-based 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). During 2020, as part of austerity measures implemented as a result of COVID-19, we temporarily eliminated 401(k) matching contributions, and they have not yet been reinstated. Contribution expense for the years ended December 31, 2020, 2019 and 2018 amounted to $5 million, $11 million and $12 million, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The accumulated balances for each classification of other comprehensive (loss) income are presented below: Foreign Derivative Financial Instruments (1) Unrecognized pension benefit costs, net of taxes (2) Accumulated Balance at January 1, 2018 $ (183) $ — $ (17) $ (200) Change during period (99) — (2) (101) Reclassified into operations — — 1 1 Balance at December 31, 2018 $ (282) $ — $ (18) $ (300) Change during period 26 (11) (8) 7 Reclassified into operations — — 1 1 Balance at December 31, 2019 $ (256) $ (11) $ (25) $ (292) Change during period 85 (6) (5) 74 Reclassified into operations — — — — Balance at December 31, 2020 $ (171) $ (17) $ (30) $ (218) (1) The change during the period is net of income taxes of $0 million, $4 million and $0 million in 2020, 2019 and 2018, respectively. (2) The change during the period is net of income taxes of $0 million, $1 million and $1 million in 2020, 2019 and 2018, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
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. If, based upon all available evidence, both positive and negative, it is more likely than not that such DTAs will not be realized, a valuation allowance is recorded. Management assessed the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of existing DTAs in each taxpaying jurisdiction. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2020. Such strong objective evidence puts less emphasis on other subjective evidence, such as our projections for future growth. On the basis of this evaluation, as of December 31, 2020, a valuation allowance of $328 million has been recorded to recognize only the portion of the DTAs that are more likely than not to be realized; however, the amount of the DTAs considered realizable could be adjusted if estimates of future taxable income during the carryforward period change or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as projections for future growth. As discussed in Note 1, the COVID-19 disruptions significantly impacted certain segments of our business during 2020. We considered the COVID-19 disruptions in our ability to realize deferred tax assets in the future and determined that such conditions did not change our overall valuation allowance positions. The U.S. signed into law on March 27, 2020 the CARES Act, which includes various income tax provisions to help stabilize U.S. businesses, including a provision to ease the limitation on deductible interest expense in 2019 and 2020, which will reduce our interest limitation for these years, preserving U.S. net operating losses. We continue to monitor and evaluate the tax implications resulting from the CARES Act and any new legislation passed in response to COVID-19 in the federal, state, and foreign jurisdictions where we have an income tax presence. 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. The components of net loss from continuing operations before income taxes are as follows: Year Ended December 31, 2020 2019 2018 United States $ (420) $ (158) $ (356) Foreign (124) 50 17 Net loss before income tax expense $ (544) $ (108) $ (339) The components of income tax expense are as follows: Year Ended December 31, 2020 2019 2018 Current U.S. Federal $ 6 $ (5) $ 19 U.S. State (1) 1 4 Foreign 20 32 22 Total 25 28 45 Deferred U.S. Federal (4) (3) (10) U.S. State (4) (3) (7) Foreign (13) (12) (15) Total (21) (18) (32) Total income tax expense $ 4 $ 10 $ 13 The reconciliation of the U.S. federal statutory tax rate to the actual tax rate is as follows: Year Ended December 31, 2020 2019 2018 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Foreign earnings at rates different than U.S. federal rate (0.2) % (3.7) % (1.5) % Valuation allowance adjustments (16.7) % (31.0) % (16.8) % Impact of U.S. Tax Reform — % — % (3.1) % Permanent items (1.9) % (3.6) % (2.5) % Reduction of UTBs 0.3 % 6.2 % — % Goodwill impairments (2.2) % — % — % Other (1.0) % 1.9 % (1.0) % Effective income tax rate (0.7) % (9.2) % (3.9) % Our 2020 and 2019 effective tax rates were impacted by changes in global valuation allowances totaling $119 million and $36 million, respectively, against net DTAs in various jurisdictions. Additionally, our 2019 rate was impacted by a decrease in the UTBs of $7 million due to settlements and statute closures. In 2020, we recorded a $54 million goodwill impairment for our legacy U.K. Gaming reporting unit, which resulted in a (2.2)% decrease in our effective tax rate. Deferred income taxes reflect the net tax effects of temporary differences between the carrying values of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The deferred income tax balances are established using the enacted statutory tax rates and are adjusted for changes in such rates in the period of change. As of December 31, 2020 2019 Deferred tax assets: Reserves and other accrued expenses $ 89 $ 78 Net operating loss carry forwards 478 296 Tax credit carry forwards 42 40 Interest limitation carryforwards 22 157 Differences in financial reporting and tax basis for: Other 60 51 Valuation allowance (328) (209) Realizable deferred tax assets 363 413 Deferred tax liabilities: Differences in financial reporting and tax basis for: Identifiable intangible assets (253) (312) Property and equipment (51) (47) Other (14) (25) Total deferred tax liabilities (318) (384) Net deferred tax asset on balance sheet $ 45 $ 29 At December 31, 2020, we had the following NOL, interest limitation, R&D credit, and state tax credit carry forwards: December 31, 2020 Federal State Foreign NOL carry forwards $ 1,609 $ 1,488 $ 274 Interest limitation carry forwards 78 118 14 R&D and state credit carry forwards 44 — — The federal, state and foreign NOL carryforwards can be carried forward for periods that vary from five years to indefinitely. R&D tax credit carryforwards will expire through 2040, and state tax credits expire through 2023. The interest limitation carryforwards can be carried forward indefinitely in all jurisdictions in which we have them available. Certain of our U.S. federal, state, and foreign tax attributes may be subject to annual limitations under Section 382 (or comparable provisions of state or foreign law) in the event that certain changes in ownership were to occur. Tax attributes that exceed the Section 382 limitation in any year continue to be allowed as carry forwards until they expire and can be used to offset taxable income for years within the carryover period subject to the limitation in each year. Given the Company’s significant U.S. tax attributes, we continuously monitor potential ownership changes under Section 382. In the fourth quarter of 2020, we experienced an ownership change, triggering the application of Section 382. We do not expect any resulting Section 382 limitations to have a significant impact on the use of our tax attributes. At December 31, 2020 and 2019, we had the following valuation allowances: December 31, 2020 2019 Federal $ 220 $ 128 State 52 40 Foreign 56 41 Undistributed earnings of subsidiaries are accounted for as a temporary difference, except that DTLs are not recorded for undistributed earnings of foreign subsidiaries that are deemed to be indefinitely reinvested in foreign jurisdictions. The Tax Act required the Company to compute a tax on previously undistributed earnings and profits of its foreign subsidiaries upon transition from a worldwide tax system to a territorial tax system during the year ended December 31, 2017. The repatriation of such amounts in the future should generally be exempt from income taxes in the U.S. (as a result of the Tax Act) and in those jurisdictions that have a similar territorial system of taxation. Substantially all of our current year foreign cash flows are not intended to be indefinitely reinvested offshore, and therefore the tax effects of repatriation (including applicable withholding taxes) of such cash flows are provided for in our financial reporting. Unrecognized Tax Benefits The total amount of unrecognized tax benefits (“UTBs”) as of December 31, 2020 was $30 million. Of this amount, $30 million, if recognized, would be included in our Consolidated Statements of Operations and Comprehensive Loss and have an impact on our effective tax rate. We do not expect any material changes in unrecognized tax benefits before December 31, 2021. We recognize interest and penalties for unrecognized tax benefits in income tax expense. The amounts recognized for interest and penalties during the years ended December 31, 2020, 2019 and 2018 were not material. We file income tax returns in the U.S. Federal jurisdiction and various state and foreign jurisdictions. We are generally not subject to examination for periods prior to December 31, 2016; however as we utilize our net operating losses, prior periods can be subject to examination. There are no ongoing material U.S. federal, state, local or non-U.S. examinations by tax authorities. The Company had the following activity for unrecognized tax benefits: Year Ended December 31, 2020 2019 2018 Balance at beginning of period $ 28 $ 34 $ 22 Tax positions related to current year additions 1 1 11 Additions for tax positions of prior years 2 — 2 Reductions due to lapse of statute of limitations on tax positions (1) (7) (1) Balance at end of period $ 30 $ 28 $ 34 |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Litigation We are involved in various legal proceedings, including those discussed below. We record an accrual for legal contingencies when it is both probable that a liability has been incurred and the amount or range of the loss can be reasonably estimated (although, as discussed below, there may be an exposure to loss in excess of the accrued liability). We evaluate our accruals for legal contingencies at least quarterly and, as appropriate, establish new accruals or adjust existing accruals to reflect (1) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings and other relevant events and developments, (2) the advice and analyses of counsel and (3) the assumptions and judgment of management. Legal costs associated with our legal proceedings are expensed as incurred. We had accrued liabilities of $3 million for all of our legal matters that were contingencies as of December 31, 2020 and 2019. Substantially all of our legal contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss involves a series of complex judgments about future events. Consequently, the ultimate outcomes of our legal contingencies could result in losses in excess of amounts we have accrued. We may be unable to estimate a range of possible losses for some matters pending against us or our subsidiaries, even when the amount of damages claimed against us or our subsidiaries is stated because, among other things: (1) the claimed amount may be exaggerated or unsupported; (2) the claim may be based on a novel legal theory or involve a large number of parties; (3) there may be uncertainty as to the likelihood of a class being certified or the ultimate size of the class; (4) there may be uncertainty as to the outcome of pending appeals or motions; (5) the matter may not have progressed sufficiently through discovery or there may be significant factual or legal issues to be resolved or developed; and/or (6) there may be uncertainty as to the enforceability of legal judgments and outcomes in certain jurisdictions. Other matters have progressed sufficiently that we are able to estimate a range of possible loss. For those legal contingencies disclosed below, and those related to the previously disclosed settlement agreement entered into in February 2015 with SNAI S.p.a. (“SNAI”), as to which a loss is reasonably possible, whether in excess of a related accrued liability or where there is no accrued liability, and for which we are able to estimate a range of possible loss, the current estimated range is up to approximately $15 million in excess of the accrued liabilities (if any) related to those legal contingencies. This aggregate range represents management’s estimate of additional possible loss in excess of the accrued liabilities (if any) with respect to these matters based on currently available information, including any damages claimed by the plaintiffs, and is subject to significant judgment and a variety of assumptions and inherent uncertainties. For example, at the time of making an estimate, management may have only preliminary, incomplete, or inaccurate information about the facts underlying a claim; its assumptions about the future rulings of the court or other tribunal on significant issues, or the behavior and incentives of adverse parties, regulators, indemnitors or co‑defendants, may prove to be wrong; and the outcomes it is attempting to predict are often not amenable to the use of statistical or other quantitative analytical tools. In addition, from time to time an outcome may occur that management had not accounted for in its estimate because it had considered that outcome to be remote. Furthermore, as noted above, the aggregate range does not include any matters for which we are not able to estimate a range of possible loss. Accordingly, the estimated aggregate range of possible loss does not represent our maximum loss exposure. Any such losses could have a material adverse impact on our results of operations, cash flows or financial condition. The legal proceedings underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. Colombia litigation Our subsidiary, SGI, owned a minority interest in Wintech de Colombia S.A., or Wintech (now liquidated), which formerly operated the Colombian national lottery under a contract with Empresa Colombiana de Recursos para la Salud, S.A. (together with its successors, “Ecosalud”), an agency of the Colombian government. The contract provided for a penalty against Wintech, SGI and the other shareholders of Wintech of up to $5.0 million if certain levels of lottery sales were not achieved. In addition, SGI delivered to Ecosalud a $4.0 million surety bond as a further guarantee of performance under the contract. Wintech started the instant lottery in Colombia but, due to difficulties beyond its control, including, among other factors, social and political unrest in Colombia, frequently interrupted telephone service and power outages, and competition from another lottery being operated in a province of Colombia that we believe was in violation of Wintech’s exclusive license from Ecosalud, the projected sales level was not met for the year ended June 30, 1993. In 1993, Ecosalud issued a resolution declaring that the contract was in default. In 1994, Ecosalud issued a liquidation resolution asserting claims for compensation and damages against Wintech, SGI and other shareholders of Wintech for, among other things, realization of the full amount of the penalty, plus interest, and the amount of the bond. SGI filed separate actions opposing each resolution with the Tribunal Contencioso of Cundinamarca in Colombia (the “Tribunal”), which upheld both resolutions. SGI appealed each decision to the Council of State. In May 2012, the Council of State upheld the contract default resolution, which decision was notified to us in August 2012. In October 2013, the Council of State upheld the liquidation resolution, which decision was notified to us in December 2013. In July 1996, Ecosalud filed a lawsuit against SGI in the U.S. District Court for the Northern District of Georgia asserting many of the same claims asserted in the Colombia proceedings, including breach of contract, and seeking damages. In March 1997, the District Court dismissed Ecosalud’s claims. Ecosalud appealed the decision to the U.S. Court of Appeals for the Eleventh Circuit. The Court of Appeals affirmed the District Court’s decision in 1998. In June 1999, Ecosalud filed a collection proceeding against SGI to enforce the liquidation resolution and recover the claimed damages. In May 2013, the Tribunal denied SGI’s merit defenses to the collection proceeding and issued an order of payment of approximately 90 billion Colombian pesos, or approximately $30.2 million, plus default interest (potentially accrued since 1994 at a 12% statutory interest rate). SGI filed an appeal to the Council of State, and on December 10, 2020, the Council of State issued a ruling affirming the Tribunal’s decision. On December 16, 2020, SGI filed a motion for clarification of the Council of State’s ruling, the filing of which has stayed the payment order. SGI believes it has various defenses, including on the merits, against Ecosalud’s claims. Although we believe these claims will not result in a material adverse effect on our consolidated results of operations, cash flows or financial position, it is not feasible to predict the final outcome, and we cannot assure that these claims will not ultimately be resolved adversely to us or result in material liability. SNAI litigation On April 16, 2012, certain VLTs operated by SNAI in Italy and supplied by Barcrest Group Limited (“Barcrest”) erroneously printed what appeared to be winning jackpot and other tickets with a face amount in excess of €400.0 million. SNAI has stated, and system data confirms, that no jackpots were actually won on that day. The terminals were deactivated by the Italian regulatory authority. Following the incident, we understand that the Italian regulatory authority revoked the certification of the version of the gaming system that Barcrest provided to SNAI and fined SNAI €1.5 million, but determined to not revoke SNAI’s concession to operate VLTs in Italy. In October 2012, SNAI filed a lawsuit in the Court of First Instance of Rome in Italy against Barcrest and The Global Draw Limited (“Global Draw”), our subsidiary which acquired Barcrest from IGT‑UK Group Limited, a subsidiary of IGT, claiming liability arising out of the April 2012 incident and asserting claims based on theories of breach of contract and tort. The lawsuit sought to terminate SNAI’s agreement with Barcrest and damages arising from the deactivation of the terminals, including among other things, lost profits, expenses and costs, potential awards to players who have sought to enforce what appeared to be winning jackpot and other tickets, compensation for lost profits sought by managers of the gaming locations where SNAI VLTs supplied by Barcrest were installed, damages to commercial reputation and any future damages arising from SNAI’s potential loss of its concession or inability to obtain a new concession. In February 2015, we entered into a settlement agreement with SNAI that provides, among other things, for us to make a €25.0 million upfront payment to SNAI, which payment was made in February 2015, and to indemnify SNAI against certain potential future losses. In connection with the settlement, the parties’ pending claims in the Court of First Instance of Rome were dismissed on February 19, 2015. To date, we have paid €9.4 million to SNAI pursuant to our indemnification obligations. Washington State Matter On April 17, 2018, a plaintiff, Sheryl Fife, filed a putative class action complaint, Fife v. Scientific Games Corporation , against SGC 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 SGC’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, SGC filed a motion to dismiss the plaintiff’s complaint with prejudice, which the trial court denied on December 18, 2018. SGC 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 SGC, asserting the same claims, and seeking the same relief, as the complaint filed by Sheryl Fife. On September 8, 2020, SGC 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, and that motion is fully-briefed and pending before the trial court. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible loss. TCS John Huxley Matter On March 15, 2019, TCS John Huxley America, Inc., TCS John Huxley Europe Ltd., TCS John Huxley Asia Ltd., and Taiwan Fulgent Enterprise Co., Ltd. brought a civil action in the United States District Court for the Northern District of Illinois against SGC, Bally Technologies, Inc. and SG Gaming. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. and South African patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold to regulated casinos in the United States. On April 10, 2019, the defendants filed a motion to dismiss the plaintiffs’ complaint with prejudice. On April 25, 2019, the district court denied the defendants’ motion to dismiss without prejudice pursuant to the court’s local rules, after the plaintiffs advised that they intended to file an amended complaint. The plaintiffs filed their amended complaint on May 3, 2019, and on May 22, 2019, the defendants filed a motion to dismiss the plaintiffs’ amended complaint with prejudice. On March 20, 2020, the district court denied the defendants’ motion to dismiss the plaintiffs’ amended complaint, and defendants filed an answer to Plaintiffs’ amended complaint on June 19, 2020. On June 3, 2020, the trial court granted the defendants’ request to bifurcate proceedings in the case, with discovery to occur first into the statute of limitations and release defenses asserted by the defendants in their motion to dismiss, before proceeding into broader discovery. The trial court set a September 18, 2020, deadline for the parties to complete discovery relating to the statute of limitations and release defenses. On October 28, 2020, the court issued an order extending until January 15, 2021 the deadline for the parties to complete discovery relating to the statute of limitations defense. On February 9, 2021, the defendants filed a motion for summary judgment on their statute of limitations defense, addressing whether plaintiffs had actual knowledge of their claims prior to the start of the limitations period. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them. Tonkawa Tribe Matter On September 3, 2020, the Tonkawa Tribe of Indians of Oklahoma d/b/a Tonkawa Enterprises filed a putative class action complaint in the United States District Court for the District of Nevada against SGC, Bally Technologies, Inc. and SG Gaming, f/k/a Bally Gaming, Inc. On October 5, 2020, the plaintiff filed a first amended complaint to add Cow Creek Band of Umpqua Tribe of Indians and the Umpqua Indian Development Corp., d/b/a Seven Feathers Casino as a plaintiff. On October 26, 2020, the plaintiffs filed a second amended complaint. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for card shufflers sold or leased to regulated casinos in the United States. The plaintiffs seek to represent a putative class of all regulated United States casinos directly leasing or purchasing card shufflers from the defendants on or after April 1, 2009. The complaint seeks unspecified money damages, the award of plaintiff’s costs of suit, including reasonable attorneys’ fees and expert fees, and the award of pre-judgment and post-judgment interest. On November 19, 2020, the defendants filed a motion to dismiss plaintiffs’ second amended complaint. On November 20, 2020, Plaintiffs filed a motion for partial summary judgment, seeking a finding that defendants are collaterally estopped from re-litigating issues litigated in the 2018 litigation versus Shuffle Tech International Corp., Aces Up Gaming, and Poydras-Talrick Holdings. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them. Giuliano and Rancho’s Club Casino Matter On September 4, 2020, Alfred T. Giuliano, as liquidation trustee for RIH Acquisition NJ, LLC d/b/a The Atlantic Club Casino Hotel filed a putative class action complaint in the United States District Court for the Northern District of Illinois against SGC, Bally Technologies, Inc. and SG Gaming, f/k/a Bally Gaming, Inc. In the complaint, the plaintiffs assert federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiffs allege that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The plaintiffs seek to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the Defendants, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the court to treble, the award of plaintiff’s costs of suit, including attorneys’ fees, and the award of pre-judgment and post-judgment interest. On September 8, 2020, Rancho’s Club Casino, Inc., d/b/a Magnolia House Casino filed a putative class action complaint in the United States District Court for the Northern District of Illinois against SGC, Bally Technologies, Inc. and SG Gaming, f/k/a Bally Gaming, Inc. In the complaint, the plaintiff asserts federal antitrust claims arising from the defendants’ procurement of particular U.S. patents. The plaintiff alleges that the defendants used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The plaintiff seeks to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the defendants, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the court to treble, the award of plaintiff’s costs of suit, including attorneys’ fees, and the award of pre-judgment and post-judgment interest. On October 29, 2020, the trial court consolidated the Giuliano and Rancho’s Club Casino matters. On October 30, 2020, the plaintiffs in the consolidated action filed a first amended consolidated complaint. On November 9, 2020, the defendants filed a motion to dismiss the plaintiffs’ first amended consolidated complaint, and also filed a motion to compel arbitration of plaintiff Alfred T. Giuliano’s individual claims. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the consolidated lawsuit are without merit, and intend to vigorously defend against them. Mohawk Gaming Enterprises Matter On November 9, 2020, Mohawk Gaming Enterprises LLC, d/b/a Akwesasne Mohawk Casino Resort, filed a demand for a putative class arbitration before the American Arbitration Association against SGC, Bally Technologies, Inc. and SG Gaming, f/k/a Bally Gaming, Inc. In the complaint, the claimant asserts federal antitrust claims arising from the respondents’ procurement of particular U.S. patents. The claimant alleges that the respondents used those patents to create an allegedly illegal monopoly in the market for automatic card shufflers sold or leased in the United States. The claimant seeks to represent a putative class of all persons and entities that directly purchased or leased automatic card shufflers within the United States from the respondents, or any predecessor, subsidiary, or affiliate thereof, at any time between April 1, 2009, and the present. The complaint seeks unspecified money damages, which the complaint asks the arbitration panel to treble, and the award of claimant’s costs of suit, including attorneys’ fees. Respondents filed their answering statement on December 9, 2020. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them. 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 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. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible loss, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them. SciPlay IPO Matter (Nevada) |
SCHEDULE II Valuation and Quali
SCHEDULE II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II Valuation and Qualifying Accounts | SCHEDULE II SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES Valuation and Qualifying Accounts Year Ended December 31, 2020, 2019 and 2018 (in millions) Allowance for credit losses (1) Balance at beginning of period Additions Deductions (2) Balance at end of period Year Ended December 31, 2020 $ 42 56 (12) $ 86 Year Ended December 31, 2019 $ 40 9 (13) $ 36 Year Ended December 31, 2018 $ 31 9 — $ 40 (1) Results for reporting periods effective January 1, 2020 are presented in accordance with ASC 326 while prior period amounts continue to be reported in accordance with previously applicable U.S. GAAP. See Notes 1 and 6 for further details. (2) Amounts written off, net of recovery, and related impact of foreign currency exchange. Tax-related valuation allowance Balance at beginning of period Additions / (deductions) Balance at end of period Year Ended December 31, 2020 $ 209 119 $ 328 Year Ended December 31, 2019 $ 245 (36) $ 209 Year Ended December 31, 2018 $ 159 86 $ 245 (1) Amounts written off, net of recovery, and related impact of foreign currency exchange. |
Description of the Business a_2
Description of the Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of presentation and principles of consolidationThe accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP. The accompanying consolidated financial statements include the accounts of SGC, its wholly owned subsidiaries, and those subsidiaries in which we have a controlling financial interest. Investments in other entities in which we do not have a controlling financial interest but we exert significant influence are accounted for in our consolidated financial statements using the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of estimatesThe preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents and Restricted Cash | Cash and cash equivalents Cash and cash equivalents include all cash balances and highly liquid investments with an original maturity 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. Restricted cash |
Minimum Guarantees | 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 business segments in building our strong brand presence across multiple channels of distributions. We account for the minimum guaranteed obligations within accrued 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 |
Other Assets | Other assets We capitalize debt issuance costs associated with long-term line-of-credit arrangements and amortize such amounts ratably over the term of the arrangement as an adjustment to interest expense. |
Advertising Costs | Advertising costs The cost of advertising is expensed as incurred and totaled $124 million, $125 million and $102 million in 2020, 2019 and 2018, respectively. |
R&D | R&D R&D relates primarily to software product development costs and is expensed as incurred until technological feasibility has been established. Employee related costs associated with product development are included in R&D. |
Foreign Currency Translation | Foreign currency translation We have significant operations where the local currency is the functional currency, including our operations in the U.K., Europe, Australia and Canada. 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 are accumulated as a separate component of accumulated other comprehensive loss in stockholders’ deficit. Gains or losses resulting from foreign currency transactions are included in Other (expense) income, net. |
Comprehensive Loss | Comprehensive loss We include and classify in comprehensive loss unrealized gains and losses from our foreign currency translation adjustments, certain gains or losses associated with pension or other post-retirement benefits, including prior service costs or credits and transition assets or obligations, the effective portion of derivative financial instruments designated as hedging instruments, and net investment non-derivative hedge of our investments in certain of our international subsidiaries. |
New Accounting Guidance | New Accounting Guidance - Recently Adopted The FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) in 2016. The new guidance replaces the incurred loss impairment approach in legacy U.S. GAAP with a methodology that reflects future credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans and other financial instruments, we are required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which reflects losses that are probable. We adopted ASC 326 as of January 1, 2020 using the modified retrospective method for all financial assets measured at amortized cost, which resulted in a $6 million cumulative-effect adjustment increase to accumulated loss. See Note 6 for our credit losses policy and the adoption impact of ASC 326 on our consolidated financial statements. The FASB issued ASU No. 2018-13, Fair Value Measurement , and several subsequent amendments (collectively, Topic 820) in 2018. The standard amends the required quantitative and qualitative disclosure requirements for recurring and nonrecurring fair value measurements. We adopted this standard effective January 1, 2020. The adoption of this standard did not have a material impact on our financial statement disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes , to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes, enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years with early adoption permitted. We adopted this standard effective January 1, 2020 on a prospective basis for all relevant adjustments. 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 are currently assessing the impact of these standards on our consolidated financial statements. 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, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Total Minimum Guaranteed Obligations | The following are our total minimum guaranteed obligations for the periods presented: As of December 31, 2020 2019 Accrued liabilities $ 45 $ 39 Other long-term liabilities 133 172 Total minimum guarantee obligations $ 178 $ 211 Weighted average remaining term (in years) 4.4 4.7 |
Schedule of Remaining Future Payments of Guarantee Obligations | The following are our remaining expected future payments of minimum guarantee obligations: Year Ending December 31, 2021 2022 2023 2024 2025 After 2025 Expected future payments $45 $44 $30 $30 $29 $— |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Operating Information by Segment | The following tables present our segment information: Year Ended December 31, 2020 Gaming Lottery SciPlay Digital Unallocated and Reconciling Items (1) Total Total revenue $ 926 $ 918 $ 582 $ 298 $ — $ 2,724 AEBITDA (2) 247 389 189 88 (113) $ 800 Reconciling items to consolidated net loss before income taxes: D&A (348) (62) (10) (91) (43) (554) Goodwill impairment (54) — — — — (54) Restructuring and other (30) (11) (2) (4) (20) (67) EBITDA from equity investments (2) (37) (37) Loss from equity investments (6) (6) Interest expense (503) (503) Loss on debt refinancing transactions (1) (1) Loss on remeasurement of debt (51) (51) Other expense, net (10) (10) Stock-based compensation (61) (61) Net loss before income taxes $ (544) Assets as of December 31, 2020 $ 4,415 $ 1,317 $ 564 $ 971 $ 717 $ 7,984 Capital expenditures for the year ended December 31, 2020 $ 102 $ 43 $ 7 $ 24 $ 14 $ 190 (1) Includes amounts not allocated to the business segments (including corporate costs) and reconciling items to reconcile the total business segments AEBITDA to our consolidated net loss before income taxes. (2) AEBITDA is reconciled to consolidated net loss before income taxes and includes net loss attributable to SGC with the following adjustments: (1) net income attributable to noncontrolling interest, (2) restructuring and other, which includes charges or expenses attributable to: (i) employee severance; (ii) management restructuring and related costs; (iii) restructuring and integration; (iv) cost savings initiatives; (v) major litigation; and (vi) acquisition costs and other unusual items; (3) depreciation and amortization expense and impairment charges (including goodwill impairments); (4) change in fair value of investments and remeasurement of debt; (5) interest expense; (6) income tax expense; (7) stock-based compensation; (8) loss (gain) on debt financing transactions; and (9) other expense (income), net. In addition to the preceding adjustments, we exclude earnings (loss) from equity method investments and add (without duplication) our pro rata share of EBITDA of our equity investments, which represents our share of earnings (whether or not distributed to us) before income tax expense, depreciation and amortization expense, and interest (income) expense, net of our joint ventures and minority investees, which is included in our calculation of Consolidated AEBITDA to align with the provisions of our long-term debt arrangements. AEBITDA is presented exclusively as our segment measure of profit or loss. Year Ended December 31, 2019 Gaming Lottery SciPlay Digital Unallocated and Reconciling Items (1) Total Total revenue $ 1,748 $ 911 $ 466 $ 275 $ — $ 3,400 AEBITDA (2)(3) 865 404 122 63 (120) $ 1,334 Reconciling items to consolidated net loss before income taxes: D&A (437) (67) (7) (76) (60) (647) Restructuring and other (10) (1) (3) (9) (5) (28) EBITDA from equity investments (2) (67) (67) Earnings from equity investments 24 24 Interest expense (589) (589) Loss on debt financing transactions (100) (100) Gain on remeasurement of debt 9 9 Other expense, net (7) (7) Stock-based compensation (37) (37) Net loss before income taxes $ (108) Assets as of December 31, 2019 $ 4,932 $ 1,321 $ 379 $ 891 $ 286 $ 7,809 Capital expenditures for the year ended December 31, 2019 $ 167 $ 49 $ 9 $ 38 $ 22 $ 285 (1) Includes amounts not allocated to the business segments (including corporate costs) and reconciling items to reconcile the total business segments AEBITDA to our consolidated net loss before income taxes. (2) AEBITDA and EBITDA from equity investments are described in footnote (2) to the first table in this Note 2. (3) The year ended December 31, 2019 includes a charge of $10 million for intellectual property royalties paid by SciPlay to the Gaming business segment, which is no longer being paid as of May 7, 2019 in connection with the IP License Agreement described in Note 1. Year Ended December 31, 2018 Gaming Lottery SciPlay Digital Unallocated and Reconciling Items (1) Total Total revenue $ 1,831 $ 846 $ 416 $ 270 $ — $ 3,363 AEBITDA (2)(3) 920 391 94 54 (129) $ 1,330 Reconciling items to consolidated net loss before income taxes: D&A (493) (59) (17) (67) (54) (690) Restructuring and other (7) (2) (29) (20) (195) (253) EBITDA from equity investments (2) (67) (67) Earnings from equity investments 25 25 Interest expense (597) (597) Loss on debt financing transactions (93) (93) Gain on remeasurement of debt 43 43 Other income, net 7 7 Stock-based compensation (44) (44) Net loss before income taxes $ (339) Assets as of December 31, 2018 $ 5,094 $ 1,300 $ 183 $ 883 $ 258 $ 7,718 Capital expenditures for the year ended December 31, 2018 $ 249 $ 76 $ 3 $ 28 $ 35 $ 391 (1) Includes amounts not allocated to the business segments (including corporate costs) and reconciling items to reconcile the total business segments AEBITDA to our consolidated net loss before income taxes. (2) AEBITDA and EBITDA from equity investments are described in footnote (2) to the first table in this Note 2. (3) The year ended December 31, 2018 includes a charge of $26 million for intellectual property royalties paid by SciPlay to the Gaming business segment, which is no longer being paid as of May 7, 2019 in connection with the IP License Agreement described in Note 1. |
Schedule of the Service and Sales Revenue by Customer Location and Long-Lived Assets by Geographic Segment | The following tables present revenue by customer location and property and equipment by geographic location: Year Ended December 31, 2020 2019 2018 Revenue: U.S. $ 1,819 $ 2,195 $ 2,190 Other 905 1,205 1,173 Total $ 2,724 $ 3,400 $ 3,363 As of December 31, 2020 2019 Property and equipment, net: U.S. $ 260 $ 299 Other 155 201 Total $ 415 $ 500 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue by Type Within Each Business Segment | Revenue recognized for Year Ended December 31, Revenue category 2020 2019 2018 Gaming Gaming operations $ 332 $ 597 $ 632 Gaming machine sales 312 609 646 Gaming systems 171 295 320 Table products 111 247 233 Total $ 926 $ 1,748 $ 1,831 Lottery Instant products $ 579 $ 588 $ 592 Lottery systems 339 323 254 Total $ 918 $ 911 $ 846 SciPlay Mobile $ 506 $ 391 $ 323 Web and other 76 75 93 Total $ 582 $ 466 $ 416 Digital Sports and platform $ 127 $ 119 $ 101 Gaming and other 171 156 169 Total $ 298 $ 275 $ 270 |
Summary of Contract Liabilities | The following table summarizes the activity in our contract liabilities for the reporting period: Year Ended December 31, 2020 Contract liability balance, beginning of period (1) $ 109 Liabilities recognized during the period 56 Amounts recognized in revenue from beginning balance (76) Contract liability balance, end of period (1) $ 89 (1) Contract liabilities are included within Accrued liabilities and Other long-term liabilities in our consolidated balance sheets. Receivables Contract Assets (1) End of period balance, December 31, 2019 $ 808 $ 121 End of period balance, December 31, 2020 636 127 (1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets. |
Restructuring and other (Tables
Restructuring and other (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring and Other Costs | The following table summarizes pre-tax restructuring and other costs for the periods presented: Year Ended December 31, 2020 2019 2018 Employee severance and related (1) $ 41 $ 9 $ 37 Acquisition-related costs (2) — — 8 Contingent acquisition consideration (3) — 2 29 Legal and related (4) — — 152 Restructuring, integration and other 26 17 27 Total $ 67 $ 28 $ 253 (1) The year ended December 31, 2020 includes $32 million in severance and other benefits granted to employees as a result of COVID-19 related austerity measures. (2) The year ended December 31, 2018, includes $8 million related to NYX acquisition. (3) Represents contingent consideration fair value adjustment (see Note 16). (4) In the fourth quarter of 2018 we settled our previous litigation with ShuffleTech for $152 million. |
Accounts Receivable and Notes_2
Accounts Receivable and Notes Receivable and Credit Quality of Receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Summary of components of current and long-term accounts and notes receivable, net | The following table summarizes the components of current and long-term receivables, net: As of December 31, 2020 2019 Current: Receivables $ 697 $ 791 Allowance for credit losses (81) (36) Current receivables, net 616 755 Long-term: Receivables 25 53 Allowance for credit losses (5) — Long-term receivables, net 20 53 Total receivables, net $ 636 $ 808 |
Summary of the components of total notes receivable, net | As of December 31, 2020 Balances over 90 days past due December 31, 2019 Balances over 90 days past due Receivables: U.S. and Canada $ 443 $ 88 $ 534 $ 65 International 279 52 310 55 Total receivables 722 140 844 120 Receivables allowance U.S. and Canada (43) (26) (13) (8) International (43) (24) (23) (23) Total receivables allowance (86) (50) (36) (31) Receivables, net $ 636 $ 90 $ 808 $ 89 |
Schedule of activity in allowance for notes receivable | The activity in our allowance for receivable credit losses for each of the years ended December 31, 2020 and 2019 is as follows: 2020 2019 Total U.S and Canada International Total Beginning allowance for credit losses (1) $ (42) $ (14) $ (28) $ (40) Provision (56) (31) (25) (9) Charge-offs and recoveries 12 2 10 13 Allowance for credit losses as of December 31 $ (86) $ (43) $ (43) $ (36) (1) Reflects $6 million related to implementation of ASC 326 for the 2020 beginning balance |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: As of December 31, 2020 2019 Parts and work-in-process $ 122 $ 153 Finished goods 69 91 Total inventories $ 191 $ 244 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of components of property plant and equipment | Property and equipment are stated at cost, and when placed into service, are depreciated using the straight-line method over the estimated useful lives of the assets as follows: Item Estimated Life in Years Lottery and other machinery and equipment 3 - 15 Gaming equipment 1 - 5 Transportation equipment 3 - 8 Furniture and fixtures 5 - 10 Buildings and improvements 15 - 40 As of December 31, 2020 2019 Land $ 15 $ 15 Buildings and leasehold improvements 132 129 Gaming and lottery machinery and equipment 1,026 1,028 Furniture and fixtures 32 31 Construction in progress 43 30 Other property and equipment 277 263 Less: accumulated depreciation (1,110) (996) Total property and equipment, net $ 415 $ 500 Depreciation expense is excluded from Cost of services, Cost of product sales, Cost of instant products and Other operating expenses and is separately presented within D&A. Year Ended December 31, 2020 2019 (1) 2018 (2) Depreciation expense $ 180 $ 217 $ 232 (1) Includes assets held for sale impairment charges of $9 million. (2) Includes assets held for sale impairment charges of $19 million. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of allocation of purchase price | The following table summarizes the allocation of the purchase price, which reflects an $8 million adjustment from the preliminary allocation during the first quarter of 2018 and primarily related to the provisional amounts recognized for certain receivables and liabilities for which we have subsequently obtained and evaluated more detailed information than existed at the measurement date: January 5, 2018 Cash, cash equivalents and restricted cash $ 23 Accounts receivable and other current assets (1) 56 Property and equipment and other non-current assets (1) 22 Goodwill 368 Intangible assets 350 Total assets $ 819 Current liabilities (2) $ 74 Deferred income taxes 66 Assumed debt and other liabilities 300 Total liabilities $ 440 Total consideration transferred $ 379 (1) Including $41 million and $13 million of receivables and contract assets, respectively. (2) Including $16 million of contract liabilities. |
Intangible Assets, net and Go_2
Intangible Assets, net and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following tables present certain information regarding our intangible assets as of December 31, 2020 and December 31, 2019. Amortizable intangible assets are being amortized on a straight-line basis over their estimated useful lives with no estimated residual values, which materially approximates the expected pattern of use. As of December 31, 2020 December 31, 2019 Gross Carrying Accumulated Net Balance Gross Carrying Accumulated Net Balance Amortizable intangible assets: Customer relationships $ 1,108 $ (478) $ 630 $ 1,086 $ (383) $ 703 Intellectual property 958 (648) 310 931 (563) 368 Licenses 558 (405) 153 548 (329) 219 Brand names 128 (86) 42 123 (72) 51 Trade names 117 (42) 75 116 (31) 85 Patents and other 24 (16) 8 24 (15) 9 2,893 (1,675) 1,218 2,828 (1,393) 1,435 Non-amortizable intangible assets: Trade names 83 (2) 81 83 (2) 81 Total intangible assets $ 2,976 $ (1,677) $ 1,299 $ 2,911 $ (1,395) $ 1,516 |
Schedule of Intangible Asset Amortization Expense | The following reflects intangible amortization expense included within D&A: Year Ended December 31, 2020 2019 2018 Amortization expense $ 255 $ 306 $ 297 The following reflects amortization of software included within D&A: Year Ended December 31, 2020 2019 2018 Amortization expense $ 119 $ 124 $ 161 |
Schedule of Estimated Intangible Asset Amortization Expense | Estimated intangible asset amortization expense for the year ending December 31, 2021 and each of the subsequent four years: Year Ending December 31, 2021 2022 2023 2024 2025 Amortization expense $ 223 $ 215 $ 187 $ 171 $ 107 |
Schedule of Goodwill Reconciliation | The table below reconciles the change in the carrying value of goodwill, by business segment, for the period from December 31, 2018 to December 31, 2020. Gaming (1) Lottery (2) SciPlay Digital Totals Balance as of December 31, 2018 $ 2,449 $ 352 $ 115 $ 364 $ 3,280 Foreign currency adjustments — (3) — 3 — Balance as of December 31, 2019 2,449 349 115 367 3,280 Impairment (54) — — — (54) Acquired goodwill — — 7 — 7 Foreign currency adjustments 30 4 2 23 59 Balance as of December 31, 2020 $ 2,425 $ 353 $ 124 $ 390 $ 3,292 (1) Accumulated goodwill impairment charges for the Gaming segment as of December 31, 2020 were $989 million. (2) Accumulated goodwill impairment charges for the Lottery segment as of December 31, 2020 were $137 million. |
Software, net (Tables)
Software, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Research and Development [Abstract] | |
Schedule of Capitalized Computer Software | Software, net consisted of the following: As of December 31, 2020 2019 Software $ 1,197 $ 1,173 Accumulated amortization (970) (915) Software, net $ 227 $ 258 |
Schedule of Software Amortization Expense | The following reflects intangible amortization expense included within D&A: Year Ended December 31, 2020 2019 2018 Amortization expense $ 255 $ 306 $ 297 The following reflects amortization of software included within D&A: Year Ended December 31, 2020 2019 2018 Amortization expense $ 119 $ 124 $ 161 |
Equity Investments (Tables)
Equity Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedules of equity method investments | See the tables below for details of our equity investments: Equity Investment Purpose Concession and/or Supplier Agreement Term Ownership Interest Segment LNS (1) Exclusive operator of Italian instant game lottery Initial term of nine years beginning October 2010, which was subsequently extended for up to nine years (September 2028) 20% Lottery Northstar NJ (2) Provision of marketing and sales services to New Jersey Lottery October 1, 2013 through 2029 18% Lottery Northstar SupplyCo New Jersey LLC (NJ SupplyCo) (3) Separate agreement under which we provide instant games to Northstar NJ October 1, 2013 through 2029 30% Lottery (1) Other members of consortium are Lottomatica Holdings, S.r.l. and Arianna 2001. LNS succeeded Consorzio Lotterie Nazionali, a consortium comprised of essentially the same group that owns LNS, as holder of the concession as the exclusive operator of the Italian Gratta e Vinci instant game lottery. (2) Other members are IGT Global Solutions Corporation and a subsidiary of the administrator of the Ontario Municipal Employees Retirement System, this agreement provides us substantive participating rights. (3) Other members are Gtech Corporation (now known as IGT) and OSI LTT NJ Holdings Inc., a wholly owned subsidiary of OMERS Administration Corporation. Equity investment Balance as of Equity earnings (loss) recognized Cash distributions and dividends received Equity Investment 2020 2019 2020 2019 2018 2020 2019 2018 LNS $ 202 $ 201 $ 10 $ 16 $ 17 $ 27 $ 33 $ 38 GLB and CSG 26 26 (2) 3 1 — — 11 Greece 18 20 (4) 1 1 — 2 6 Northstar NJ and NJ Supply Co 14 21 (11) — 3 3 5 — Other 2 5 1 4 3 4 9 8 Total under equity method $ 262 $ 273 $ (6) $ 24 $ 25 $ 34 $ 49 $ 63 Revenue recognized from sales to investee for the Year Ended December 31, Equity Investment 2020 2019 2018 LNS $ 39 $ 46 $ 40 Northstar NJ and NJ Supply Co 24 24 23 Other 3 6 7 Total $ 66 $ 76 $ 70 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: As of December 31, 2020 2019 Compensation and benefits $ 94 $ 94 Accrued interest 86 74 Customer advances, deposits and funds held on behalf of customers 82 23 Contract liability 69 84 Taxes, other than income 42 36 Accrued licenses 28 26 Operating lease liabilities 26 26 Contingent acquisition consideration liabilities 11 7 Other 148 125 Total $ 586 $ 495 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Supplemental balance sheet and cash flow information related to operating leases is as follows: As of December 31, 2020 December 31, 2019 Operating lease right-of-use assets (1) $ 94 $ 105 Accrued liabilities 26 26 Operating lease liabilities 77 88 Total operating lease liabilities $ 103 $ 114 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases for the year ended December 31, 2020 and 2019, respectively $ 31 $ 33 Weighted average remaining lease term, years 5 5 Weighted average discount rate 5 % 5 % (1) Operating lease right-of-use assets obtained in exchange for lease obligations were immaterial. |
Future minimum lease payments required under our leasing arrangements | Lease liability maturities: 2021 2022 2023 2024 2025 Thereafter Less Imputed Interest Total Operating leases $ 30 $ 24 $ 20 $ 16 $ 11 $ 15 $ (13) $ 103 |
Long-Term and Other Debt (Table
Long-Term and Other Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt outstanding | The following table reflects our outstanding debt: As of December 31, 2020 2019 Final Maturity Rate(s) Face Value Unamortized debt discount/premium and deferred financing costs, net Book Value Book Value Senior Secured Credit Facilities: SGI Revolver 2024 variable $ 535 $ — $ 535 $ 195 SGI Term Loan B-5 2024 variable 4,060 (48) 4,012 4,042 SciPlay Revolver 2024 variable — — — — SGI Senior Notes: 2025 Secured Notes (1) 2025 5.000 % 1,250 (13) 1,237 1,235 2026 Secured Euro Notes (2) 2026 3.375 % 399 (4) 395 359 2025 Unsecured Notes 2025 8.625 % 550 (8) 542 — 2026 Unsecured Euro Notes (2) 2026 5.500 % 306 (3) 303 276 2026 Unsecured Notes 2026 8.250 % 1,100 (12) 1,088 1,085 2028 Unsecured Notes 2028 7.000 % 700 (9) 691 690 2029 Unsecured Notes 2029 7.250 % 500 (7) 493 493 SGI Subordinated Notes: 2021 Notes 2020 6.250 % — — — 339 Finance lease obligations as of December 31, 2020 payable monthly through 2023 and other (3) 2023 4.217 % 7 — 7 11 Total long-term debt outstanding $ 9,407 $ (104) $ 9,303 $ 8,725 Less: current portion of long-term debt (44) (45) Long-term debt, excluding current portion $ 9,259 $ 8,680 Fair value of debt (4) $ 9,574 (1) In connection with the February 2018 Refinancing (as defined below), we entered into certain cross-currency interest rate swap agreements to achieve more attractive interest rates by effectively converting $460 million of the fixed-rate, U.S. Dollar-denominated 2025 Secured Notes, including the semi-annual interest payments through October 2023, to a fixed-rate Euro-denominated debt, with a fixed annual weighted average interest rate of approximately 2.946%. These cross-currency swaps have been designated as a hedge of our net investment in certain subsidiaries. (2) We designated a portion of our 2026 Secured Euro Notes as a net investment non-derivative hedge of our investments in certain of our international subsidiaries that use the Euro as their functional currency in order to reduce the volatility in our operating results caused by the change in foreign currency exchange rates of the Euro relative to the U.S. Dollar (see Note 16 for additional information). The total change in the face value of the 2026 Secured Euro Notes and 2026 Unsecured Euro Notes due to changes in foreign currency exchange rates since the issuance was a reduction of $7 million, of which a loss of $51 million and gains of $9 million and $43 million were recognized on remeasurement of debt in the Consolidated Statements of Operations for the years ended December 31, 2020, 2019, and 2018, respectively. (3) Includes $7 million related to certain revenue transactions presented as debt in accordance with ASC 470. (4) Fair value of our fixed rate and variable interest rate debt is classified within Level 2 in the fair value hierarchy and has been calculated based on the quoted market prices of our securities. |
Schedule of debt and capital lease payments due over the next five years and beyond | The following reflects the principal amount of debt and finance lease payments due over the next five years and beyond as of December 31, 2020: Due Total Principal Due Series of Debt/Finance lease Principal Due per Series of Debt/Lease 2021 $ 44 Term Loan B-5 $ 42 Finance lease obligation and other 2 2022 45 Term Loan B-5 42 Finance lease obligation and other 3 2023 44 Term Loan B-5 42 Finance lease obligation and other 2 2024 4,469 Term Loan B-5 3,934 Drawn Revolving Credit Facility 535 2025 1,800 2025 Secured Notes 1,250 2025 Unsecured Notes 550 2026 and beyond 3,005 2026 Secured Euro Notes 399 2026 Unsecured Euro Notes 306 2026 Unsecured Notes 1,100 2028 Unsecured Notes 700 2029 Unsecured Notes 500 Unamortized deferred financing costs and discount/premium (104) Total debt book value as of December 31, 2020 $ 9,303 |
Schedule of components of extinguishment and modification of debt | Years Ended December 31, 2020 2019 2018 Repurchase and cancellation of principal balance at premium $ — $ 80 $ 110 Unamortized debt (premium) discount and deferred financing costs, net — 20 (30) Third party debt issuance fees 1 — 13 Total loss on debt financing transactions $ 1 $ 100 $ 93 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of losses (gains) on interest rate swaps | The following table shows the gains (losses) and interest expense on our interest rate swap contracts: Year Ended December 31, 2020 2019 2018 Losses recorded in accumulated other comprehensive loss, net of tax $ (6) $ (11) $ — Interest expense recorded related to interest rate swap contracts 15 1 3 |
Schedule of Effect of Interest Rate Swap Contracts Designated as Cash Flow Hedges | The following table shows the effect of interest rate swap contracts designated as cash flow hedges on the consolidated statements of operations: Year Ended December 31, 2020 Year Ended December 31, 2019 Interest expense Interest expense Total interest expense which reflects the effects of cash flow hedges $ (503) $ (589) Hedged item (20) (20) Derivative designated as hedging instrument 5 19 |
Schedule of fair value hedges | The following table shows the fair value of our hedges: As of Balance Sheet Line Item December 31, 2020 December 31, 2019 Interest rate swaps (1)(3) Other liabilities $ 22 $ 16 Cross-currency interest rate swaps (2)(3) Other assets 14 41 (1) The loss of $6 million, $16 million, and $0 million for the year ended December 31, 2020, 2019 and 2018, respectively, are reflected in Derivative financial instrument unrealized (loss) gain in Other comprehensive loss. (2) The loss of $27 million, gains of $23 million and $18 million for the years ended December 31, 2020, 2019 and 2018, respectively, is reflected in Foreign currency translation gain (loss) in Other comprehensive loss. (3) The inputs used to measure the fair value of our interest rate swap contracts are categorized as Level 2 in the fair value hierarchy. |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of change in the number of shares of Class A common stock | The following reflects total stock-based compensation expense recognized under all programs: Year Ended December 31, 2020 2019 2018 Related to SGC stock options $ 9 $ 5 $ 12 Related to SGC RSUs 30 23 32 Related to SciPlay RSUs 22 9 — Total $ 61 $ 37 $ 44 The following table sets forth the change in the number of shares of common stock outstanding during the fiscal years ended December 31, 2020 and 2019: December 31, 2020 2019 Shares outstanding as of beginning of period 94 92 Shares issued as part of equity-based compensation plans and the ESPP, net of shares surrendered 1 2 Shares outstanding as of end of period 95 94 |
RSUs outstanding under equity-based compensation plans | A summary of the changes in RSUs outstanding under our equity-based compensation plans during 2020 is presented below: Number of Weighted Unvested RSUs as of December 31, 2019 2.9 $ 24.80 Granted 2.7 $ 13.75 Vested (1.3) $ 19.77 Cancelled (1.0) $ 19.25 Unvested RSUs as of December 31, 2020 3.3 $ 19.07 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Schedule of combined funded status of the pension plans and their reconciliation with the related amounts recognized in balance sheet | The following table sets forth the combined funded status of the Pension Plans and their reconciliation to the related amounts recognized in our Consolidated Financial Statements at our December 31, 2020 and 2019 measurement dates: December 31, 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 154 $ 125 Service cost 3 2 Interest cost 4 4 Participant contributions 1 1 Actuarial loss 17 21 Benefits paid (4) (3) Other, principally foreign exchange 5 4 Benefit obligation at end of year $ 180 $ 154 Change in plan assets: Fair value of plan assets at beginning of year $ 129 $ 107 Actual gain on plan assets 16 18 Employer contributions 4 4 Participant contributions 1 1 Benefits paid (5) (3) Other, principally foreign exchange 3 2 Fair value of assets at end of year $ 148 $ 129 Amounts recognized in the consolidated balance sheets: Funded status (current) $ — $ — Funded status (non-current) (32) (25) Accumulated other comprehensive loss: Unrecognized actuarial loss 40 34 Unrecognized prior service cost (2) — Deferred taxes — (1) Net amount recognized $ 6 $ 8 | |
Schedule of components of net periodic pension cost | The following table presents the components of our net periodic pension benefit cost: Year Ended December 31, 2020 2019 2018 Components of net periodic pension benefit cost: Service cost $ 3 $ 2 $ 3 Interest cost 4 4 4 Expected return on plan assets (6) (5) (6) Amortization of actuarial losses 2 1 1 Net periodic cost $ 3 $ 2 $ 2 | |
Schedule of amounts included in accumulated other comprehensive loss expected to be recognized as components of net periodic pension cost during the next fiscal year | The amounts included in accumulated other comprehensive loss as of December 31, 2020 are expected to be recognized as components of net periodic pension benefit cost during the fiscal year ending December 31, 2021 are presented below: Unrecognized loss $ 2 Unrecognized prior service cost (1) Net amount expected to be recognized $ 1 | |
Schedule of fair value of defined benefit pension plan assets by asset category | The fair value of the plan assets for the Pension Plans at December 31, 2020 by asset category is presented below: Asset Category Market Value at 12/31/2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity securities (a) $ 58 $ 41 $ 17 $ — Global return fund (a) 32 — 32 — Corporate bonds (a) 25 — 25 — Government bonds 5 — 5 — Real estate 9 — — 9 LDI (Liability Driven Investment) 17 — 17 — Cash and cash equivalents (b) 2 2 — — Total pension assets $ 148 $ 43 $ 96 $ 9 (a) The assets are invested through managed funds that are valued using inputs derived principally from quoted prices in active markets for the underlying assets in the fund. | The fair value of the plan assets for both of the Pension Plans at December 31, 2019 by asset category is presented below: Asset Category Market Quoted Significant Significant Equity securities (a) $ 62 $ 35 $ 27 $ — Global return fund (a) 19 — 19 — Corporate bonds (a) 13 — 13 — Government bonds 12 — 12 — Real estate 5 — — 5 LDI (Liability Driven Investment) 14 — 14 — Cash and cash equivalents (b) 4 4 — — Total pension assets $ 129 $ 39 $ 85 $ 5 (a) The assets are invested through managed funds that are valued using inputs derived principally from quoted prices in active markets for the underlying assets in the fund. |
Schedule of changes in fair value of pension assets valued using significant unobservable inputs (Level 3) | The change in fair value of the Pension Plan assets valued using significant unobservable inputs (Level 3) is presented below: 2020 2019 Significant unobservable inputs (Level 3), beginning of period $ 5 $ 4 Unrealized gain on asset still held 4 1 Significant unobservable inputs (Level 3), end of period $ 9 $ 5 | |
Schedule of weighted-average actuarial assumptions used to determine the benefit obligation and net periodic benefit cost | The table below presents the weighted-average actuarial assumptions used to determine the benefit obligation and net periodic benefit cost for the Pension Plans. U.K. Plan Canadian Plan 2020 2019 2018 2020 2019 2018 Discount rates: Benefit obligation 1.4 % 2.0 % 2.9 % 3.1 % 3.1 % 3.9 % Net periodic pension cost 1.4 % 2.0 % 2.6 % 3.1 % 3.9 % 3.6 % Rate of compensation increase 1.0 % 1.0 % 1.0 % 3.0 % 3.0 % 1.0 % Expected return on assets 3.6 % 5.1 % 5.0 % 5.2 % 5.5 % 5.7 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of accumulated balances for each classification of comprehensive (loss) income | The accumulated balances for each classification of other comprehensive (loss) income are presented below: Foreign Derivative Financial Instruments (1) Unrecognized pension benefit costs, net of taxes (2) Accumulated Balance at January 1, 2018 $ (183) $ — $ (17) $ (200) Change during period (99) — (2) (101) Reclassified into operations — — 1 1 Balance at December 31, 2018 $ (282) $ — $ (18) $ (300) Change during period 26 (11) (8) 7 Reclassified into operations — — 1 1 Balance at December 31, 2019 $ (256) $ (11) $ (25) $ (292) Change during period 85 (6) (5) 74 Reclassified into operations — — — — Balance at December 31, 2020 $ (171) $ (17) $ (30) $ (218) (1) The change during the period is net of income taxes of $0 million, $4 million and $0 million in 2020, 2019 and 2018, respectively. (2) The change during the period is net of income taxes of $0 million, $1 million and $1 million in 2020, 2019 and 2018, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of net loss from continuing operations before income taxes | The components of net loss from continuing operations before income taxes are as follows: Year Ended December 31, 2020 2019 2018 United States $ (420) $ (158) $ (356) Foreign (124) 50 17 Net loss before income tax expense $ (544) $ (108) $ (339) |
Schedule of components of the expense (benefit) for income taxes | The components of income tax expense are as follows: Year Ended December 31, 2020 2019 2018 Current U.S. Federal $ 6 $ (5) $ 19 U.S. State (1) 1 4 Foreign 20 32 22 Total 25 28 45 Deferred U.S. Federal (4) (3) (10) U.S. State (4) (3) (7) Foreign (13) (12) (15) Total (21) (18) (32) Total income tax expense $ 4 $ 10 $ 13 |
Schedule of reconciliation of the U.S. federal statutory tax rate to the actual tax rate | The reconciliation of the U.S. federal statutory tax rate to the actual tax rate is as follows: Year Ended December 31, 2020 2019 2018 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Foreign earnings at rates different than U.S. federal rate (0.2) % (3.7) % (1.5) % Valuation allowance adjustments (16.7) % (31.0) % (16.8) % Impact of U.S. Tax Reform — % — % (3.1) % Permanent items (1.9) % (3.6) % (2.5) % Reduction of UTBs 0.3 % 6.2 % — % Goodwill impairments (2.2) % — % — % Other (1.0) % 1.9 % (1.0) % Effective income tax rate (0.7) % (9.2) % (3.9) % |
Schedule of deferred income taxes | As of December 31, 2020 2019 Deferred tax assets: Reserves and other accrued expenses $ 89 $ 78 Net operating loss carry forwards 478 296 Tax credit carry forwards 42 40 Interest limitation carryforwards 22 157 Differences in financial reporting and tax basis for: Other 60 51 Valuation allowance (328) (209) Realizable deferred tax assets 363 413 Deferred tax liabilities: Differences in financial reporting and tax basis for: Identifiable intangible assets (253) (312) Property and equipment (51) (47) Other (14) (25) Total deferred tax liabilities (318) (384) Net deferred tax asset on balance sheet $ 45 $ 29 |
Summary of net operating loss carryforward | At December 31, 2020, we had the following NOL, interest limitation, R&D credit, and state tax credit carry forwards: December 31, 2020 Federal State Foreign NOL carry forwards $ 1,609 $ 1,488 $ 274 Interest limitation carry forwards 78 118 14 R&D and state credit carry forwards 44 — — |
Summary of valuation allowance | At December 31, 2020 and 2019, we had the following valuation allowances: December 31, 2020 2019 Federal $ 220 $ 128 State 52 40 Foreign 56 41 |
Schedule of unrecognized tax benefits | had the following activity for unrecognized tax benefits: Year Ended December 31, 2020 2019 2018 Balance at beginning of period $ 28 $ 34 $ 22 Tax positions related to current year additions 1 1 11 Additions for tax positions of prior years 2 — 2 Reductions due to lapse of statute of limitations on tax positions (1) (7) (1) Balance at end of period $ 30 $ 28 $ 34 |
Description of the Business a_4
Description of the Business and Summary of Significant Accounting Policies - Description of the Business (Details) $ in Millions | Oct. 09, 2020USD ($) | May 08, 2020USD ($) | Apr. 09, 2020USD ($) | May 07, 2019 | Feb. 28, 2021USD ($) | Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Subsequent Event [Line Items] | ||||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 100 | |||||||
Number of reportable segments | Segment | 4 | |||||||
Total Available Liquidity (Excluding SciPlay) | $ 850 | |||||||
Borrowings under SGI revolving credit facility | $ 480 | 530 | $ 270 | $ 560 | ||||
Face Value | 9,407 | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | 103 | |||||||
Debt Covenant, Minimum Liquidity Requirement | $ 275 | |||||||
Income Tax Benefit, Percentage Realized | 85.00% | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 129 | $ 104 | ||||||
Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 100 |
Description of the Business a_5
Description of the Business and Summary of Significant Accounting Policies - Minimum Guarantees (Details) - Payment guarantee - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Guarantor Obligations [Line Items] | |||
Amortization related to licenses | $ 73 | $ 81 | $ 61 |
Accrued liabilities | 45 | 39 | |
Other long-term liabilities | 133 | 172 | |
Total minimum guarantee obligations | $ 178 | $ 211 | |
Weighted average remaining term (in years) | 4 years 4 months 24 days | 4 years 8 months 12 days | |
Expected future payments, 2021 | $ 45 | $ 39 | |
Expected future payments, 2022 | 44 | ||
Expected future payments, 2023 | 30 | ||
Expected future payments, 2024 | 30 | ||
Expected future payments, 2025 | 29 | ||
Expected future payments, After 2025 | $ 0 |
Description of the Business a_6
Description of the Business and Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 124 | $ 125 | $ 102 |
Description of the Business a_7
Description of the Business and Summary of Significant Accounting Policies - New Accounting Guidance (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Stockholders' Equity Attributable to Parent | $ 2,653 | $ 2,212 |
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Loss | ||
Segment Reporting Information [Line Items] | ||
Stockholders' Equity Attributable to Parent | $ 6 |
Description of the Business a_8
Description of the Business and Summary of Significant Accounting Policies - Initial Public Offering (Details) - USD ($) | May 07, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 01, 2020 | Nov. 20, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsidiary, Sale of Stock [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (2,524,000,000) | $ (2,108,000,000) | $ (2,463,000,000) | $ (2,027,000,000) | ||||
Document Period End Date | Dec. 31, 2020 | |||||||
Income Tax Benefit, Percentage Realized | 85.00% | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 129,000,000 | 104,000,000 | ||||||
Additional Paid in Capital | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Proceeds from Issuance Initial Public Offering | 328,000,000 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,268,000,000 | 1,208,000,000 | 835,000,000 | 808,000,000 | ||||
Noncontrolling Interest | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Proceeds from Issuance Initial Public Offering | 91,000,000 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 129,000,000 | $ 104,000,000 | $ 0 | $ 0 | ||||
Senior Notes | Revolving Credit Facility [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Debt amount | $ 650,000,000 | |||||||
Senior Unsecured Notes Maturing 2025 [Member] | Senior Notes | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Debt amount | $ 550,000,000 | |||||||
IPO [Member] | Additional Paid in Capital | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Proceeds from Issuance Initial Public Offering | $ 312,000,000 | |||||||
IPO [Member] | Noncontrolling Interest | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Proceeds from Issuance Initial Public Offering | $ 30,000,000 | |||||||
IPO [Member] | SciPlay Revolver, Maturing 2024 [Member] [Member] | Secured Debt | Revolving Credit Facility [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Debt amount | $ 150,000,000 | $ 150,000,000 | ||||||
SciPlay [Member] | IPO [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Percentage Of Voting Interest Of Subsidiary Held | 97.80% | |||||||
Sale Of Stock, Percentage Of Ownership Sold | 18.00% | |||||||
Common Class B [Member] | SciPlay [Member] | IPO [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Noncontrolling Interest, Ownership Percentage By Parent, Threshold | 10.00% | |||||||
Percentage Of Voting Interest Of Subsidiary Held | 82.00% | |||||||
Intellectual property | SciPlay [Member] | IPO [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Proceeds from asset sales | $ 255,000,000 |
Description of the Business a_9
Description of the Business and Summary of Debt Covenant (Details) $ in Millions | May 08, 2020USD ($) | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Debt Covenant, Minimum Liquidity Requirement | $ 275 | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Floor Interest Rate | 0.50% | |
Certain Covenant Instances | ||
Debt Instrument [Line Items] | ||
Debt Covenant, Minimum Liquidity Requirement | $ 400 | |
Debt Instrument, Redemption, Period One | ||
Debt Instrument [Line Items] | ||
First lien leverage ratio, period one maximum | 5 | |
Debt Instrument, Redemption, Period One | SciPlay [Member] | ||
Debt Instrument [Line Items] | ||
First lien leverage ratio, period one maximum | 2.50 | |
Debt Instrument, Redemption, Period Two | ||
Debt Instrument [Line Items] | ||
First lien leverage ratio, period one maximum | 4.75 | |
Debt Instrument, Redemption, Period Two | SciPlay [Member] | ||
Debt Instrument [Line Items] | ||
First lien leverage ratio, period one maximum | 4 |
Business Segments - Additional
Business Segments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Business Segments - Reportable
Business Segments - Reportable Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 2,724 | $ 3,400 | $ 3,363 |
AEBITDA | 800 | 1,334 | 1,330 |
D&A | (554) | (647) | (690) |
Goodwill, Impairment Loss | (54) | 0 | 0 |
Restructuring and other | (67) | (28) | (253) |
EBITDA from equity investments | (37) | (67) | (67) |
(Loss) earnings from equity investments | (6) | 24 | 25 |
Interest expense | (503) | (589) | (597) |
Loss on debt financing transactions | (1) | (100) | (93) |
(Loss) gain on remeasurement of debt | (51) | 9 | 43 |
Other income (expense), net | (10) | (7) | 7 |
Stock-based compensation | (61) | (37) | (44) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (544) | (108) | (339) |
Assets | 7,984 | 7,809 | 7,718 |
Capital expenditures for year ended | 190 | 285 | 391 |
Gaming | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 926 | 1,748 | 1,831 |
Goodwill, Impairment Loss | (54) | ||
Lottery | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 918 | 911 | 846 |
Goodwill, Impairment Loss | 0 | ||
SciPlay | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 582 | ||
Goodwill, Impairment Loss | 0 | ||
Digital | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 298 | 275 | 270 |
Goodwill, Impairment Loss | 0 | ||
SciPlay [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 466 | 416 | |
Operating Segments | Gaming | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 926 | ||
AEBITDA | 247 | 865 | 920 |
D&A | (348) | (437) | (493) |
Goodwill, Impairment Loss | (54) | ||
Restructuring and other | (30) | (10) | (7) |
Assets | 4,415 | 4,932 | 5,094 |
Capital expenditures for year ended | 102 | 167 | 249 |
Operating Segments | Lottery | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 918 | ||
AEBITDA | 389 | 404 | 391 |
D&A | (62) | (67) | (59) |
Goodwill, Impairment Loss | 0 | ||
Restructuring and other | (11) | (1) | (2) |
Assets | 1,317 | 1,321 | 1,300 |
Capital expenditures for year ended | 43 | 49 | 76 |
Operating Segments | Digital | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 298 | ||
AEBITDA | 88 | 63 | 54 |
D&A | (91) | (76) | (67) |
Goodwill, Impairment Loss | 0 | ||
Restructuring and other | (4) | (9) | (20) |
Assets | 971 | 891 | 883 |
Capital expenditures for year ended | 24 | 38 | 28 |
Operating Segments | SciPlay [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 582 | ||
AEBITDA | 189 | 122 | 94 |
D&A | (10) | (7) | (17) |
Goodwill, Impairment Loss | 0 | ||
Restructuring and other | (2) | (3) | (29) |
Assets | 564 | 379 | 183 |
Capital expenditures for year ended | 7 | 9 | 3 |
Unallocated and Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 0 | 0 | 0 |
AEBITDA | (113) | (120) | (129) |
D&A | (43) | (60) | (54) |
Goodwill, Impairment Loss | 0 | ||
Restructuring and other | (20) | (5) | (195) |
Assets | 717 | 286 | 258 |
Capital expenditures for year ended | $ 14 | $ 22 | $ 35 |
Business Segments - Revenue and
Business Segments - Revenue and Long-Lived Assets by Geographic Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Geographic Segments | |||
Total revenue | $ 2,724 | $ 3,400 | $ 3,363 |
Property and equipment, net | 415 | 500 | |
U.S. | |||
Geographic Segments | |||
Total revenue | 1,819 | 2,195 | 2,190 |
Property and equipment, net | 260 | 299 | |
Other | |||
Geographic Segments | |||
Total revenue | 905 | 1,205 | $ 1,173 |
Property and equipment, net | $ 155 | $ 201 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenue by Type (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 2,724 | $ 3,400 | $ 3,363 |
Rental income revenue | 209 | 373 | 265 |
Gaming | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 926 | 1,748 | 1,831 |
Lottery | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 918 | 911 | 846 |
SciPlay | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 582 | ||
Digital | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 298 | 275 | 270 |
Gaming operations | Gaming | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 332 | 597 | 632 |
Gaming machine sales | Gaming | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 312 | 609 | 646 |
Gaming systems | Gaming | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 171 | 295 | 320 |
Table products | Gaming | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 111 | 247 | 233 |
Instant products | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 578 | 587 | 592 |
Instant products | Lottery | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 579 | 588 | 592 |
Lottery systems | Lottery | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 339 | 323 | 254 |
Mobile | SciPlay | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 506 | 391 | 323 |
Web and other | SciPlay | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 76 | 75 | 93 |
Sports and platform | Digital | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 127 | 119 | 101 |
Gaming and other | Digital | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 171 | $ 156 | $ 169 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenue from External Customer [Line Items] | ||||
(Reduction) increase in revenue | $ 2,724 | $ 3,400 | $ 3,363 | |
Rental income revenue | 209 | 373 | 265 | |
Reduction to inventory | (191) | (244) | ||
Total revenue recognized | $ 76 | |||
Document Period End Date | Dec. 31, 2020 | |||
Gaming | ||||
Revenue from External Customer [Line Items] | ||||
(Reduction) increase in revenue | $ 926 | 1,748 | 1,831 | |
Lottery | ||||
Revenue from External Customer [Line Items] | ||||
(Reduction) increase in revenue | 918 | 911 | 846 | |
Gaming operations | Gaming | ||||
Revenue from External Customer [Line Items] | ||||
(Reduction) increase in revenue | 332 | 597 | 632 | |
Gaming operations | Gaming | Accounting Standards Update 2014-09 | ||||
Revenue from External Customer [Line Items] | ||||
(Reduction) increase in revenue | 16 | 20 | 22 | |
Instant products | ||||
Revenue from External Customer [Line Items] | ||||
(Reduction) increase in revenue | 578 | 587 | 592 | |
Cost of revenues | 280 | [1] | 289 | 284 |
Instant products | Lottery | ||||
Revenue from External Customer [Line Items] | ||||
(Reduction) increase in revenue | 579 | 588 | 592 | |
Instant products | Lottery | Accounting Standards Update 2014-09 | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue recognized | $ 93 | $ 95 | $ 103 | |
[1] | Exclusive of D&A. |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Document Period End Date | Dec. 31, 2020 | ||
Change In Contract Liabilities [Roll Forward] | |||
Contract liability balance, beginning of period | $ 109 | ||
Liabilities recognized during the period | 56 | ||
Amounts recognized in revenue from beginning balance | (76) | ||
Contract liability balance,end of period | 89 | $ 109 | |
Lottery | Instant products | Accounting Standards Update 2014-09 | |||
Change In Contract Liabilities [Roll Forward] | |||
Amounts recognized in revenue from beginning balance | $ (93) | $ (95) | $ (103) |
Revenue Recognition - Opening a
Revenue Recognition - Opening and Closing Balances (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Receivables | $ 636 | $ 808 |
Contract with Customer, Asset, Net | $ 127 | $ 121 |
Restructuring and other (Detail
Restructuring and other (Details) - USD ($) $ in Millions | Dec. 13, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other | $ 67 | $ 28 | $ 253 | |
Shuffle Tech Matter | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for Legal Settlements | $ 152 | |||
Employee severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other | 41 | 9 | 37 | |
Employee severance | contingencies related to COVID19 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other | 32 | |||
Acquisition-related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other | 0 | 0 | 8 | |
Acquisition-related costs | NYX | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other | 8 | |||
Contingent acquisition consideration | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other | 0 | 2 | 29 | |
Legal and related | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other | 0 | 0 | 152 | |
Restructuring, integration and other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other | $ 26 | $ 17 | $ 27 |
Basic and Diluted Net Loss Pe_2
Basic and Diluted Net Loss Per Share (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2 | 1 | 2 |
Restricted Stock Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 3 |
Accounts Receivable and Notes_3
Accounts Receivable and Notes Receivable and Credit Quality of Receivables - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Stockholders' Equity Attributable to Parent | $ 2,653 | $ 2,212 |
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Stockholders' Equity Attributable to Parent | $ 6 | |
Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, percentage greater than 90 days past due | 14.00% | 11.00% |
Extended Maturity [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, before Allowance for Credit Loss | $ 134 |
Accounts Receivable and Notes_4
Accounts Receivable and Notes Receivable and Credit Quality of Receivables - Components of Accounts and Notes Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current: | ||
Receivables | $ 697 | $ 791 |
Allowance for credit losses | (81) | (36) |
Current receivables, net | 616 | 755 |
Notes receivable | 25 | 53 |
Financing Receivable, Allowance for Credit Loss, Noncurrent | (5) | 0 |
Long-term: | ||
Long-term receivables, net | 20 | 53 |
Total accounts and notes receivable, net | $ 636 | $ 808 |
Accounts Receivable and Notes_5
Accounts Receivable and Notes Receivable and Credit Quality of Receivables - Components of Total Notes Receivable, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables, net | |||
Notes receivable | $ 25 | $ 53 | |
Notes receivable allowance for doubtful accounts | (42) | $ (40) | |
Accounts and notes receivable, net | 636 | 808 | |
Balances over 90 days past due | |||
Stockholders' Equity Attributable to Parent | 2,653 | 2,212 | |
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Loss | |||
Balances over 90 days past due | |||
Stockholders' Equity Attributable to Parent | 6 | ||
Notes Receivable | |||
Receivables, net | |||
Notes receivable | 722 | 844 | |
Notes receivable allowance for doubtful accounts | (86) | (36) | |
Accounts and notes receivable, net | 636 | 808 | |
Balances over 90 days past due | |||
Provision | (56) | (9) | |
Charge-offs and recoveries | 12 | 13 | |
Domestic | |||
Receivables, net | |||
Notes receivable allowance for doubtful accounts | (14) | ||
Domestic | Notes Receivable | |||
Receivables, net | |||
Notes receivable | 443 | 534 | |
Notes receivable allowance for doubtful accounts | (43) | (13) | |
Balances over 90 days past due | |||
Provision | (31) | ||
Charge-offs and recoveries | 2 | ||
International | |||
Receivables, net | |||
Notes receivable allowance for doubtful accounts | (28) | ||
International | Notes Receivable | |||
Receivables, net | |||
Notes receivable | 279 | 310 | |
Notes receivable allowance for doubtful accounts | (43) | (23) | |
Balances over 90 days past due | |||
Provision | (25) | ||
Charge-offs and recoveries | 10 | ||
Balances over 90 days past due | Notes Receivable | |||
Balances over 90 days past due | |||
Notes receivable, balances over 90 days past due | 140 | 120 | |
Notes receivable allowance for doubtful accounts, balances over 90 days past due | (50) | (31) | |
Notes receivable, net, balances over 90 days past due | 90 | 89 | |
Balances over 90 days past due | Domestic | Notes Receivable | |||
Balances over 90 days past due | |||
Notes receivable, balances over 90 days past due | 88 | 65 | |
Notes receivable allowance for doubtful accounts, balances over 90 days past due | (26) | (8) | |
Balances over 90 days past due | International | Notes Receivable | |||
Balances over 90 days past due | |||
Notes receivable, balances over 90 days past due | 52 | 55 | |
Notes receivable allowance for doubtful accounts, balances over 90 days past due | $ (24) | $ (23) |
Accounts Receivable and Notes_6
Accounts Receivable and Notes Receivable and Credit Quality of Receivables - Allowance for Notes Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for credit losses as of September 30 | $ (42) | $ (40) |
Allowance for credit losses as of December 31 | (42) | |
Accounts Receivable, Net, Current | 616 | 755 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 56 | |
Latin America [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Accounts Receivable, before Allowance for Credit Loss | 107 | |
Accounts Receivable, Allowance for Credit Loss | (53) | |
Accounts Receivable, Net, Current | 54 | |
Accounts Receivable, before Allowance for Credit Loss | 107 | |
Notes Receivable | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for credit losses as of September 30 | (36) | |
Provision | (56) | (9) |
Charge-offs and recoveries | 12 | 13 |
Allowance for credit losses as of December 31 | $ (86) | $ (36) |
Financing receivable, percentage greater than 90 days past due | 14.00% | 11.00% |
Financial Asset Current Or Not Yet Due [Member] | Latin America [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Accounts Receivable, before Allowance for Credit Loss | $ 49 | |
Accounts Receivable, Allowance for Credit Loss | (14) | |
Accounts Receivable, Net, Current | 35 | |
Accounts Receivable, before Allowance for Credit Loss | 49 | |
Balances over 90 days past due | Latin America [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Accounts Receivable, before Allowance for Credit Loss | 58 | |
Accounts Receivable, Allowance for Credit Loss | (39) | |
Accounts Receivable, Net, Current | 19 | |
Accounts Receivable, before Allowance for Credit Loss | $ 58 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventories | |||
Parts and work-in-process | $ 122 | $ 153 | |
Finished goods | 69 | 91 | |
Total inventories | 191 | 244 | |
Inventory Write-down | $ 48 | $ 9 | $ 20 |
Property and Equipment, net - P
Property and Equipment, net - Property and Equipment Estimated Lives (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Lottery and other machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Lottery and other machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 15 years |
Gaming equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 1 year |
Gaming equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Transportation equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Transportation equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 8 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 10 years |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 15 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 40 years |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Less: accumulated depreciation | $ (1,110) | $ (996) | |
Property and equipment, net | 415 | 500 | |
Depreciation expense | 180 | 217 | $ 232 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 15 | 15 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 132 | 129 | |
Gaming and lottery machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 1,026 | 1,028 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 32 | 31 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 43 | 30 | |
Other property and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 277 | $ 263 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Assets held for sale | $ 25 | |
Impairment Charge on Reclassified Assets | $ 9 | 19 |
Proceeds from Sale of Property Held-for-sale | 22 | |
Lottery and other machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized installation costs, net | $ 14 | $ 20 |
Impairments and Assets Held For
Impairments and Assets Held For Sale (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Document Period End Date | Dec. 31, 2020 | ||
Income tax benefit | $ (4) | $ (10) | $ (13) |
Assets held for sale | 25 | ||
Depreciation and amortization | 554 | 647 | 690 |
Gain on sale of assets | $ 0 | $ (6) | $ 16 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Millions | Jan. 05, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||
Contingent acquisition consideration | $ 13 | $ 14 | ||||
Goodwill | 3,292 | $ 3,280 | $ 3,280 | |||
NYX | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid in acquisition | $ 666 | |||||
Business Combination, Consideration Transferred, Shares Acquired, Fair Value | 92 | |||||
Non-controlling equity interest held before acquisition | 90 | |||||
Business Combination, Acquisition Related Costs | $ 8 | $ 15 | ||||
Allocated purchase price adjustment | $ 8 | |||||
Royalty rate | 0.50% | |||||
Goodwill | $ 368 | |||||
Come2Play, Ltd. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid in acquisition | 18 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 7 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 13 | |||||
Don Best | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 42 | |||||
Total consideration | 46 | |||||
Contingent acquisition consideration | 9 | |||||
Goodwill | $ 11 | |||||
Minimum | NYX | ||||||
Business Acquisition [Line Items] | ||||||
Discount rate | 10.00% | |||||
Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Contingent acquisition consideration liabilities | $ 17 | |||||
Maximum | NYX | ||||||
Business Acquisition [Line Items] | ||||||
Discount rate | 14.00% | |||||
Business Combination | Revenue | ||||||
Business Acquisition [Line Items] | ||||||
Revenue and earnings associated with acquisitions (less than) | 5.00% | |||||
Business Combination | Earnings | ||||||
Business Acquisition [Line Items] | ||||||
Revenue and earnings associated with acquisitions (less than) | 5.00% |
Acquisitions - Allocation of Pu
Acquisitions - Allocation of Purchase Price (Details) - USD ($) $ in Millions | Jan. 05, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 3,280 | $ 3,292 | $ 3,280 | |||
Contingent acquisition consideration | $ 13 | $ 14 | ||||
NYX | ||||||
Business Acquisition [Line Items] | ||||||
Allocated purchase price adjustment | $ 8 | |||||
Cash paid in acquisition | $ 666 | |||||
Cash, cash equivalents and restricted cash | 23 | |||||
Accounts receivable and other current assets | 56 | |||||
Property and equipment and other non-current assets | 22 | |||||
Goodwill | 368 | |||||
Intangible assets | 350 | |||||
Total assets | 819 | |||||
Current liabilities | 74 | |||||
Deferred income taxes | 66 | |||||
Assumed debt and other liabilities | 300 | |||||
Total liabilities | 440 | |||||
Total consideration transferred | 379 | |||||
Receivables | 41 | |||||
Contract assets | 13 | |||||
Contract liabilities | 16 | |||||
Business Combination, Consideration Transferred, Shares Acquired, Fair Value | 92 | |||||
Non-controlling equity interest held before acquisition | $ 90 | |||||
Business Combination, Acquisition Related Costs | $ 8 | $ 15 | ||||
Royalty rate | 0.50% | |||||
Minimum | NYX | ||||||
Business Acquisition [Line Items] | ||||||
Discount rate | 10.00% | |||||
Maximum | NYX | ||||||
Business Acquisition [Line Items] | ||||||
Discount rate | 14.00% |
Acquisitions - Details of Intan
Acquisitions - Details of Intangible Assets that have been Identified (Details) - Level 3 - NYX $ in Millions | Jan. 05, 2018USD ($) |
Customer relationships | |
Business Acquisition [Line Items] | |
Fair Value | $ 214 |
Weighted Average Useful Life | 7 years |
Intellectual property | |
Business Acquisition [Line Items] | |
Fair Value | $ 127 |
Trade names | |
Business Acquisition [Line Items] | |
Fair Value | $ 10 |
Acquisitions - Unaudited Pro fo
Acquisitions - Unaudited Pro forma Financial Information (Details) - NYX - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Revenue since acquisition | $ 198 | |
Net loss since acquisition | (41) | |
Revenue | 3,363 | $ 3,265 |
Net loss | $ (345) | $ (308) |
Acquisitions - Aggregate Disclo
Acquisitions - Aggregate Disclosure Related to Business Acquisitions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Cash paid, net of cash acquired | $ 13 | $ 0 | $ 297 |
Contingent acquisition consideration | 13 | 14 | |
Excess purchase price allocated to goodwill | $ 3,292 | $ 3,280 | $ 3,280 |
Intangible Assets, net and Go_3
Intangible Assets, net and Goodwill - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 2,893 | $ 2,828 |
Amortizable intangible assets, accumulated amortization | (1,675) | (1,393) |
Finite-Lived Intangible Assets, Net | 1,218 | 1,435 |
Intangible Assets, Net (Excluding Goodwill), Gross | 2,976 | 2,911 |
Total intangible assets, accumulated amortization | 1,677 | 1,395 |
Total intangible assets, net balance | 1,299 | 1,516 |
Trade Names [Member] | ||
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items] | ||
Non-amortizable intangible assets, gross carrying amount | 83 | 83 |
Non-amortizable intangible assets, accumulated amortization | (2) | (2) |
Non-amortizable intangible assets, net balance | 81 | 81 |
Trade Names [Member] | ||
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 117 | 116 |
Amortizable intangible assets, accumulated amortization | (42) | (31) |
Finite-Lived Intangible Assets, Net | 75 | 85 |
Patents and other | ||
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 24 | 24 |
Amortizable intangible assets, accumulated amortization | (16) | (15) |
Finite-Lived Intangible Assets, Net | 8 | 9 |
Customer relationships | ||
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,108 | 1,086 |
Amortizable intangible assets, accumulated amortization | (478) | (383) |
Finite-Lived Intangible Assets, Net | 630 | 703 |
Intellectual property | ||
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 958 | 931 |
Amortizable intangible assets, accumulated amortization | (648) | (563) |
Finite-Lived Intangible Assets, Net | 310 | 368 |
Licenses | ||
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 558 | 548 |
Amortizable intangible assets, accumulated amortization | (405) | (329) |
Finite-Lived Intangible Assets, Net | 153 | 219 |
Brand names | ||
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 128 | 123 |
Amortizable intangible assets, accumulated amortization | (86) | (72) |
Finite-Lived Intangible Assets, Net | $ 42 | $ 51 |
Intangible Assets, net and Go_4
Intangible Assets, net and Goodwill - Intangible Asset Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 255 | $ 306 | $ 297 |
2021 | 223 | ||
2022 | 215 | ||
2023 | 187 | ||
2024 | 171 | ||
2025 | $ 107 |
Intangible Assets, net and Go_5
Intangible Assets, net and Goodwill - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill | |||
Balance at the beginning of the period | $ 3,280 | $ 3,280 | |
Acquired goodwill | 7 | ||
Foreign currency adjustments | 59 | 0 | |
Balance at the end of the period | 3,292 | 3,280 | $ 3,280 |
Goodwill, Impairment Loss | $ (54) | 0 | 0 |
Minimum | |||
Goodwill | |||
Goodwill Fair Value Input Profit Margin | 13.00% | ||
Goodwill Fair Value Input Discount Rate | 8.50% | ||
Goodwill Fair Value Input Profit Margin | 13.00% | ||
Goodwill Fair Value Input Discount Rate | 8.50% | ||
Maximum | |||
Goodwill | |||
Goodwill Fair Value Input Profit Margin | 23.00% | ||
Goodwill Fair Value Input Discount Rate | 10.00% | ||
Goodwill Fair Value Input Profit Margin | 23.00% | ||
Goodwill Fair Value Input Discount Rate | 10.00% | ||
UK Gaming [Member] | |||
Goodwill | |||
Goodwill, Impairment Loss | $ (54) | ||
Revenue Growth Estimate F Y2021 [Member] | Minimum | |||
Goodwill | |||
Goodwill Fair Value Input Revenue Growth | 9.00% | ||
Goodwill Fair Value Input Revenue Growth | 9.00% | ||
Revenue Growth Estimate F Y2021 [Member] | Maximum | |||
Goodwill | |||
Goodwill Fair Value Input Revenue Growth | 20.00% | ||
Goodwill Fair Value Input Revenue Growth | 20.00% | ||
Revenue Growth Estimate F Y2022 To F Y2027 [Member] | Minimum | |||
Goodwill | |||
Goodwill Fair Value Input Revenue Growth | 3.00% | ||
Goodwill Fair Value Input Revenue Growth | 3.00% | ||
Revenue Growth Estimate F Y2022 To F Y2027 [Member] | Maximum | |||
Goodwill | |||
Goodwill Fair Value Input Revenue Growth | 5.00% | ||
Goodwill Fair Value Input Revenue Growth | 5.00% | ||
Revenue Estimated Terminal Growth Rate [Member] | Maximum | |||
Goodwill | |||
Goodwill Fair Value Input Revenue Growth | 2.00% | ||
Goodwill Fair Value Input Revenue Growth | 2.00% | ||
Measurement Input, Revenue Multiple [Member] | Minimum | |||
Goodwill | |||
Goodwill Market Comparable Analysis Measurement Input | 210.00% | ||
Goodwill Market Comparable Analysis Measurement Input | 210.00% | ||
Measurement Input, Revenue Multiple [Member] | Maximum | |||
Goodwill | |||
Goodwill Market Comparable Analysis Measurement Input | 270.00% | ||
Goodwill Market Comparable Analysis Measurement Input | 270.00% | ||
Measurement Input, EBITDA Multiple [Member] | Minimum | |||
Goodwill | |||
Goodwill Market Comparable Analysis Measurement Input | 570.00% | ||
Goodwill Market Comparable Analysis Measurement Input | 570.00% | ||
Measurement Input, EBITDA Multiple [Member] | Maximum | |||
Goodwill | |||
Goodwill Market Comparable Analysis Measurement Input | 750.00% | ||
Goodwill Market Comparable Analysis Measurement Input | 750.00% | ||
Gaming | |||
Goodwill | |||
Balance at the beginning of the period | $ 2,449 | 2,449 | |
Acquired goodwill | 0 | ||
Foreign currency adjustments | 30 | 0 | |
Balance at the end of the period | 2,425 | 2,449 | 2,449 |
Goodwill, Impairment Loss | (54) | ||
Accumulated goodwill impairment charges | 989 | ||
Lottery | |||
Goodwill | |||
Balance at the beginning of the period | 349 | 352 | |
Acquired goodwill | 0 | ||
Foreign currency adjustments | 4 | (3) | |
Balance at the end of the period | 353 | 349 | 352 |
Goodwill, Impairment Loss | 0 | ||
Accumulated goodwill impairment charges | 137 | ||
SciPlay | |||
Goodwill | |||
Balance at the beginning of the period | 115 | 115 | |
Acquired goodwill | 7 | ||
Foreign currency adjustments | 2 | 0 | |
Balance at the end of the period | 124 | 115 | 115 |
Goodwill, Impairment Loss | 0 | ||
Digital | |||
Goodwill | |||
Balance at the beginning of the period | 367 | 364 | |
Acquired goodwill | 0 | ||
Foreign currency adjustments | 23 | 3 | |
Balance at the end of the period | 390 | $ 367 | $ 364 |
Goodwill, Impairment Loss | $ 0 |
Software, net - Additional Info
Software, net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Internal use software | ||
Business Acquisition [Line Items] | ||
Capitalized computer software, additions | $ 85 | $ 101 |
Internal use software | Minimum | ||
Business Acquisition [Line Items] | ||
Estimated economic life | 2 years | |
Internal use software | Maximum | ||
Business Acquisition [Line Items] | ||
Estimated economic life | 10 years | |
External use software | Minimum | ||
Business Acquisition [Line Items] | ||
Estimated economic life | 8 years | |
External use software | Maximum | ||
Business Acquisition [Line Items] | ||
Estimated economic life | 10 years | |
Regulatory approval costs | Minimum | ||
Business Acquisition [Line Items] | ||
Estimated economic life | 2 years | |
Regulatory approval costs | Maximum | ||
Business Acquisition [Line Items] | ||
Estimated economic life | 4 years |
Software, net - Summary of Soft
Software, net - Summary of Software and Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Research and Development [Abstract] | |||
Software | $ 1,197 | $ 1,173 | |
Accumulated amortization | (970) | (915) | |
Software, net | 227 | 258 | |
Capitalized computer software, amortization | $ 119 | $ 124 | $ 161 |
Equity Investments - Schedules
Equity Investments - Schedules of Equity Method Investments (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2010 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity investments | $ 262 | $ 273 | ||
(Loss) earnings from equity investments | (6) | 24 | $ 25 | |
Distributed earnings from equity investments | 34 | 49 | 63 | |
Revenue from the sale of instant tickets to equity method investment | 66 | 76 | 70 | |
LNS | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity investments | 202 | 201 | ||
(Loss) earnings from equity investments | 10 | 16 | 17 | |
Distributed earnings from equity investments | 27 | 33 | 38 | |
Revenue from the sale of instant tickets to equity method investment | 39 | 46 | 40 | |
Northstar NJ and NJ Supply Co | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity investments | 14 | 21 | ||
(Loss) earnings from equity investments | (11) | 0 | 3 | |
Distributed earnings from equity investments | 3 | 5 | 0 | |
Revenue from the sale of instant tickets to equity method investment | 24 | 24 | 23 | |
GLB and CSG | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity investments | 26 | 26 | ||
(Loss) earnings from equity investments | (2) | 3 | 1 | |
Distributed earnings from equity investments | 0 | 0 | 11 | |
Other Equity Investments [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity investments | 2 | 5 | ||
(Loss) earnings from equity investments | 1 | 4 | 3 | |
Distributed earnings from equity investments | 4 | 9 | 8 | |
Revenue from the sale of instant tickets to equity method investment | 3 | 6 | 7 | |
Hellenic Lotteries S.A. (Greece) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity investments | 18 | 20 | ||
(Loss) earnings from equity investments | (4) | 1 | 1 | |
Distributed earnings from equity investments | $ 0 | $ 2 | $ 6 | |
Lottery | LNS | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Agreement term | 9 years | |||
Equity interest (as a percent) | 20.00% | |||
Lottery | Northstar NJ | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest (as a percent) | 18.00% | |||
Lottery | Northstar SupplyCo New Jersey, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest (as a percent) | 30.00% |
Equity Investments - LNS (Detai
Equity Investments - LNS (Details) - LNS € in Millions, $ in Millions | Dec. 04, 2017EUR (€) | Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) |
Schedule of Equity Method Investments [Line Items] | |||
Contract extension period | 9 years | ||
Upfront fees associated with the new concession | € 800 | ||
Concession upfront fees, installment one | € 50 | ||
Concession upfront fees, installment two | 300 | ||
Concession upfront fees, installment three | 450 | ||
Prorated | |||
Schedule of Equity Method Investments [Line Items] | |||
Concession upfront fees, installment one | 10 | $ 12 | |
Concession upfront fees, installment two | 60 | 74 | |
Concession upfront fees, installment three | € 90 | 104 | |
Accounts receivable from equity method investment | $ | $ 14 |
Equity Investments - Northstar
Equity Investments - Northstar New Jersey (Details) - Northstar NJ | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |
Incentive compensation cap, percentage of net income | 3.00% |
Investee payment to third party cap, percentage of net income | 2.00% |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities, Current [Abstract] | ||
Compensation and benefits | $ 94 | $ 94 |
Accrued interest | 86 | 74 |
Customer advances, deposits and funds held on behalf of customers | 82 | 23 |
Contract liability | 69 | 84 |
Taxes, other than income | 42 | 36 |
Accrued licenses | 28 | 26 |
Operating lease liabilities | 26 | 26 |
Contingent acquisition consideration liabilities | 11 | 7 |
Other | 148 | 125 |
Total | $ 586 | $ 495 |
Leases - Schedule of Leases (De
Leases - Schedule of Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Future minimum lease payments, 2020 | $ 30 | |
Operating Lease, Right-of-Use Asset | 94 | $ 105 |
Operating lease liabilities | 26 | 26 |
Operating Lease, Liability, Noncurrent | 77 | 88 |
Operating Lease, Liability | 103 | 114 |
Operating Lease, Payments | $ 31 | $ 33 |
Operating Lease, Weighted Average Remaining Lease Term | 5 years | 5 years |
Operating Lease, Weighted Average Discount Rate, Percent | 5.00% | 5.00% |
Future minimum lease payments, 2021 | $ 24 | |
Future minimum lease payments, 2022 | 20 | |
Future minimum lease payments, 2023 | 16 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (13) | |
Lessee, Operating Lease, Liability, Payments, Due | $ 103 |
Leases - Additional Information
Leases - Additional Information and Maturity Schedule (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leased Assets [Line Items] | ||||
Lessee, Operating Lease, Renewal Term | 5 years | |||
Operating Lease, Option To Terminate, Term | 1 year | |||
Future minimum lease payments required under leasing arrangements | ||||
Future minimum lease payments, 2020 | $ 30 | |||
Future minimum lease payments, 2021 | 24 | |||
Future minimum lease payments, 2022 | 20 | |||
Future minimum lease payments, 2023 | 16 | |||
Future minimum lease payments, 2024 | 11 | |||
Future minimum lease payments, Thereafter | 15 | |||
Rental expense under operating leases | $ 33 | $ 37 | $ 39 | |
Minimum | ||||
Operating Leased Assets [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 1 year | |||
Maximum | ||||
Operating Leased Assets [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 10 years |
Long-Term and Other Debt - Outs
Long-Term and Other Debt - Outstanding Debt (Details) | Jul. 01, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 17, 2020USD ($) | Nov. 30, 2019USD ($) | Nov. 26, 2019USD ($) | Nov. 20, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 19, 2019USD ($) | Feb. 28, 2018USD ($) | Feb. 14, 2018USD ($) | Feb. 14, 2018EUR (€) |
Debt Instrument [Line Items] | |||||||||||||
Face Value | $ 9,407,000,000 | ||||||||||||
Unamortized debt discount/premium and deferred financing costs, net | 104,000,000 | ||||||||||||
Total long-term debt outstanding | 9,303,000,000 | $ 8,725,000,000 | |||||||||||
Less: current portion of long-term debt | (44,000,000) | (45,000,000) | |||||||||||
Long-term debt, excluding current portion | 9,259,000,000 | 8,680,000,000 | |||||||||||
Debt instrument, fair value | 9,574,000,000 | ||||||||||||
Loss (gain) on remeasurement of debt | 51,000,000 | (9,000,000) | $ (43,000,000) | ||||||||||
Loss on debt financing transactions | (1,000,000) | (100,000,000) | (93,000,000) | ||||||||||
Total revenue recognized | 76,000,000 | ||||||||||||
Proceeds from Issuance of Debt | $ 543,000,000 | ||||||||||||
Gross financing costs | 8,000,000 | $ 26,000,000 | $ 17,000,000 | $ 16,000,000 | |||||||||
Senior Secured Notes, maturing 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, interest rate, stated percentage | 2.946% | ||||||||||||
Senior Secured and Unsecured Notes, maturing 2026 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Reduction in foreign currency exchange rates | $ 7,000,000 | ||||||||||||
Senior Notes | Senior Secured Notes, maturing 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, interest rate, stated percentage | 5.00% | 2.946% | |||||||||||
Face Value | $ 1,250,000,000 | ||||||||||||
Unamortized debt discount/premium and deferred financing costs, net | (13,000,000) | ||||||||||||
Total long-term debt outstanding | $ 1,237,000,000 | 1,235,000,000 | |||||||||||
Debt amount | $ 460,000,000 | $ 900,000,000 | |||||||||||
Senior Notes | Senior Secured Euro Notes, maturing 2026 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, interest rate, stated percentage | 3.375% | ||||||||||||
Face Value | $ 399,000,000 | ||||||||||||
Unamortized debt discount/premium and deferred financing costs, net | (4,000,000) | ||||||||||||
Total long-term debt outstanding | $ 395,000,000 | 359,000,000 | |||||||||||
Debt amount | € | € 325,000,000 | ||||||||||||
Senior Notes | Senior Unsecured Notes, maturing 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Face Value | $ 1,200,000,000 | ||||||||||||
Senior Notes | Senior Unsecured Euro Notes, Maturing 2026 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, interest rate, stated percentage | 5.50% | ||||||||||||
Face Value | $ 306,000,000 | ||||||||||||
Unamortized debt discount/premium and deferred financing costs, net | (3,000,000) | ||||||||||||
Total long-term debt outstanding | $ 303,000,000 | 276,000,000 | |||||||||||
Debt amount | € | € 250,000,000 | ||||||||||||
Senior Notes | Senior Unsecured Notes, Maturing 2026 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, interest rate, stated percentage | 8.25% | ||||||||||||
Face Value | $ 1,100,000,000 | ||||||||||||
Unamortized debt discount/premium and deferred financing costs, net | (12,000,000) | ||||||||||||
Total long-term debt outstanding | $ 1,088,000,000 | 1,085,000,000 | |||||||||||
Debt amount | $ 1,100,000,000 | ||||||||||||
Senior Notes | Senior Unsecured Notes, Maturing 2028 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, interest rate, stated percentage | 7.00% | ||||||||||||
Face Value | $ 700,000,000 | 700,000,000 | |||||||||||
Unamortized debt discount/premium and deferred financing costs, net | (9,000,000) | ||||||||||||
Total long-term debt outstanding | $ 691,000,000 | 690,000,000 | |||||||||||
Senior Notes | Senior Unsecured Euro Notes, Maturing 2029 [Member] [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, interest rate, stated percentage | 7.25% | ||||||||||||
Face Value | $ 500,000,000 | 500,000,000 | |||||||||||
Unamortized debt discount/premium and deferred financing costs, net | (7,000,000) | ||||||||||||
Total long-term debt outstanding | $ 493,000,000 | 493,000,000 | |||||||||||
Senior Notes | Senior Unsecured Notes Maturing 2025 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, interest rate, stated percentage | 8.625% | 8.625% | |||||||||||
Face Value | $ 550,000,000 | $ 550,000,000 | |||||||||||
Unamortized debt discount/premium and deferred financing costs, net | (8,000,000) | ||||||||||||
Total long-term debt outstanding | $ 542,000,000 | 0 | |||||||||||
Debt amount | $ 550,000,000 | ||||||||||||
Senior Subordinated Notes | Senior Subordinated Notes, Maturing 2020 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Face Value | $ 244,000,000 | ||||||||||||
Senior Subordinated Notes | Senior Subordinated Notes, maturing 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, interest rate, stated percentage | 6.25% | ||||||||||||
Face Value | $ 0 | $ 341,000,000 | |||||||||||
Unamortized debt discount/premium and deferred financing costs, net | 0 | ||||||||||||
Total long-term debt outstanding | $ 0 | 339,000,000 | |||||||||||
Capital Lease Obligations | Less: current portion of long-term debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, interest rate, stated percentage | 4.217% | ||||||||||||
Face Value | $ 7,000,000 | ||||||||||||
Unamortized debt discount/premium and deferred financing costs, net | 0 | ||||||||||||
Total long-term debt outstanding | 7,000,000 | 11,000,000 | |||||||||||
Revenue, Remaining Performance Obligation, Amount | 7,000,000 | ||||||||||||
Revolving Credit Facility [Member] | Secured Debt | Senior Secured Revolver, maturing 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Face Value | 535,000,000 | ||||||||||||
Unamortized debt discount/premium and deferred financing costs, net | 0 | ||||||||||||
Total long-term debt outstanding | 535,000,000 | 195,000,000 | |||||||||||
Revolving Credit Facility [Member] | Secured Debt | Senior Secured Term Loan B-5, maturing 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Face Value | 4,060,000,000 | ||||||||||||
Unamortized debt discount/premium and deferred financing costs, net | (48,000,000) | ||||||||||||
Total long-term debt outstanding | 4,012,000,000 | 4,042,000,000 | |||||||||||
Revolving Credit Facility [Member] | Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt amount | $ 650,000,000 | ||||||||||||
SciPlay Revolver, Maturing 2024 [Member] [Member] | Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Face Value | 0 | ||||||||||||
Unamortized debt discount/premium and deferred financing costs, net | 0 | ||||||||||||
Total long-term debt outstanding | $ 0 | $ 0 |
Long-Term and Other Debt - Matu
Long-Term and Other Debt - Maturities of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Face Value | $ 9,407 | |
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | 44 | |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Two | 45 | |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Three | 44 | |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Four | 4,469 | |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Five | 1,800 | |
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | 3,005 | |
Unamortized deferred financing costs and discount/premium | 104 | |
Total long-term debt outstanding | 9,303 | $ 8,725 |
Capital Lease Obligations | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | 2 | |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Two | 3 | |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Three | 2 | |
Term Loan | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | 42 | |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Two | 42 | |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Three | 42 | |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Four | 3,934 | |
Senior Secured Revolver, maturing 2018 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Four | 535 | |
Senior Secured Notes, maturing 2025 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Five | 1,250 | |
Senior Unsecured Notes Maturing 2025 [Member] | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Five | 550 | |
Senior Secured Euro Notes, maturing 2026 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | 399 | |
Senior Unsecured Euro Notes, Maturing 2026 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | 306 | |
Senior Unsecured Notes, Maturing 2026 [Member] | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | 1,100 | |
Senior Unsecured Notes, Maturing 2028 [Member] | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | 700 | |
Senior Unsecured Euro Notes, Maturing 2029 [Member] [Member] | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | $ 500 |
Long-Term and Other Debt - Cred
Long-Term and Other Debt - Credit Facilities (Details) | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Nov. 20, 2019USD ($) | Feb. 28, 2018USD ($) | Feb. 14, 2018USD ($) | Feb. 14, 2018EUR (€) | |
Senior Notes | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt amount | $ 650,000,000 | ||||
The Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 650,000,000 | ||||
The Credit Agreement [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 350,000,000 | ||||
The Credit Agreement [Member] | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,060,000,000 | ||||
Senior Secured Notes, maturing 2025 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, interest rate, stated percentage | 2.946% | ||||
Senior Secured Notes, maturing 2025 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt amount | $ 460,000,000 | $ 900,000,000 | |||
Debt Instrument, interest rate, stated percentage | 5.00% | 2.946% | |||
Senior Secured Euro Notes, maturing 2026 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt amount | € | € 325,000,000 | ||||
Debt Instrument, interest rate, stated percentage | 3.375% | ||||
Senior Unsecured Euro Notes, maturing 2026 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt amount | € | € 250,000,000 | ||||
Debt Instrument, interest rate, stated percentage | 5.50% | ||||
Senior Secured Term Loan B-5, maturing 2024 | Revolving Credit Facility [Member] | Eurodollar [Member] | |||||
Debt Instrument [Line Items] | |||||
Margin spread on debt | 3.00% | ||||
Senior Secured Term Loan B-5, maturing 2024 | Revolving Credit Facility [Member] | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Margin spread on debt | 2.00% | ||||
Senior Secured Term Loan B-5, maturing 2024 | Term Loan | Eurodollar [Member] | |||||
Debt Instrument [Line Items] | |||||
Margin spread on debt | 2.75% | ||||
Senior Secured Term Loan B-5, maturing 2024 | Term Loan | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Margin spread on debt | 1.75% | ||||
Senior Secured Term Loan B-4, maturing 2024 | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Amortization Percentage | 1.00% | ||||
Senior Secured Revolver, maturing 2018 | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Unused capacity, commitment fee percentage | 0.50% | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee, Step-down Percentage | 0.375% |
Long-Term and Other Debt - Note
Long-Term and Other Debt - Notes (Details) | 12 Months Ended | |||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 28, 2018USD ($) | Feb. 14, 2018USD ($) | Feb. 14, 2018EUR (€) | |
Debt Instrument [Line Items] | ||||||
Document Period End Date | Dec. 31, 2020 | |||||
Repurchase of notes | $ 341,000,000 | $ 2,523,000,000 | $ 2,210,000,000 | |||
Gain on early extinguishment of debt | $ (1,000,000) | $ (100,000,000) | $ (93,000,000) | |||
Senior Notes | Senior Secured Notes, maturing 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Debt amount | $ 460,000,000 | $ 900,000,000 | ||||
Senior Notes | Senior Secured Euro Notes, maturing 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Debt amount | € | € 325,000,000 | |||||
Senior Notes | Senior Unsecured Euro Notes, maturing 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Debt amount | € | € 250,000,000 |
Long-Term and Other Debt - Debt
Long-Term and Other Debt - Debt Issuance Costs (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Nov. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||||
Gross financing costs | $ 8 | $ 17 | $ 16 | $ 26 |
Long-Term and Other Debt - Gain
Long-Term and Other Debt - Gain (Loss) on Debt Financing Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||
Repurchase and cancellation of principal balance at premium | $ 0 | $ 80 | $ 110 |
Unamortized debt (premium) discount and deferred financing costs. net | 0 | 20 | (30) |
Third party debt issuance fees | 1 | 0 | 13 |
Loss on debt financing transactions | $ 1 | $ 100 | $ 93 |
Long-Term and Other Debt - Term
Long-Term and Other Debt - Terms of Outstanding Debt (Details) | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Nov. 26, 2019USD ($) | Nov. 20, 2019USD ($) | Sep. 30, 2019USD ($) | Mar. 19, 2019USD ($) | Feb. 28, 2018USD ($) | Feb. 14, 2018USD ($) | Feb. 14, 2018EUR (€) | |
Debt Instrument [Line Items] | |||||||||
Face Value | $ 9,407,000,000 | ||||||||
SciPlay [Member] | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Restrictive Covenants, Total Net Leverage Ratio | 2.50 | ||||||||
SciPlay [Member] | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Restrictive Covenants, Total Net Leverage Ratio | 4 | ||||||||
Debt Instrument, Redemption, Period One | |||||||||
Debt Instrument [Line Items] | |||||||||
First lien leverage ratio, period one maximum | 5 | ||||||||
Debt Instrument, Redemption, Period One | SciPlay [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
First lien leverage ratio, period one maximum | 2.50 | ||||||||
Debt Instrument, Redemption, Period Two | |||||||||
Debt Instrument [Line Items] | |||||||||
First lien leverage ratio, period one maximum | 4.75 | ||||||||
Debt Instrument, Redemption, Period Two | SciPlay [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
First lien leverage ratio, period one maximum | 4 | ||||||||
Debt Instrument, Redemption, Period Three | |||||||||
Debt Instrument [Line Items] | |||||||||
First lien leverage ratio, period one maximum | 4.50 | ||||||||
Senior Secured Notes, maturing 2025 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt amount | $ 460,000,000 | $ 900,000,000 | |||||||
Face Value | $ 1,250,000,000 | ||||||||
Senior Secured Euro Notes, maturing 2026 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt amount | € | € 325,000,000 | ||||||||
Face Value | 399,000,000 | ||||||||
Senior Unsecured Euro Notes, Maturing 2026 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt amount | € | € 250,000,000 | ||||||||
Face Value | 306,000,000 | ||||||||
Senior Unsecured Notes, Maturing 2026 [Member] | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt amount | $ 1,100,000,000 | ||||||||
Debt Instrument, Repurchased Face Amount | $ 1,000,000,000 | ||||||||
Face Value | 1,100,000,000 | ||||||||
Senior Unsecured Notes, Maturing 2028 [Member] | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Face Value | 700,000,000 | $ 700,000,000 | |||||||
Senior Unsecured Euro Notes, Maturing 2029 [Member] [Member] | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Face Value | 500,000,000 | 500,000,000 | |||||||
Senior Unsecured Notes, maturing 2022 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Face Value | 1,200,000,000 | ||||||||
Senior Subordinated Notes, Maturing 2020 [Member] | Senior Subordinated Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Face Value | $ 244,000,000 | ||||||||
The Credit Agreement [Member] | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 4,060,000,000 | ||||||||
The Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 650,000,000 | ||||||||
Senior Secured Term Loan B-4, maturing 2024 | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Amortization Percentage | 1.00% | ||||||||
Senior Secured Revolver, maturing 2018 | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Unused capacity, commitment fee percentage | 0.50% | ||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee, Step-down Percentage | 0.375% | ||||||||
Revolving Credit Facility [Member] | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt amount | $ 650,000,000 | ||||||||
Revolving Credit Facility [Member] | Senior Secured Credit Facility, Term Loan B-5, Maturing 2024 [Member] | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Face Value | $ 4,060,000,000 | ||||||||
Letter of Credit [Member] | The Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 350,000,000 | ||||||||
Eurodollar [Member] | Senior Secured Credit Facility, Term Loan B-5, Maturing 2024 [Member] | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin spread on debt | 2.75% | ||||||||
Eurodollar [Member] | Senior Secured Credit Facility, Term Loan B-5, Maturing 2024 [Member] | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin spread on debt | 3.00% | ||||||||
Base Rate | Senior Secured Credit Facility, Term Loan B-5, Maturing 2024 [Member] | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin spread on debt | 1.75% | ||||||||
Base Rate | Senior Secured Credit Facility, Term Loan B-5, Maturing 2024 [Member] | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin spread on debt | 2.00% | ||||||||
IPO [Member] | Revolving Credit Facility [Member] | SciPlay Revolver, Maturing 2024 [Member] [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | ||||||||
Debt Instrument, Leverage Ratio | 0.375% | ||||||||
IPO [Member] | Revolving Credit Facility [Member] | SciPlay Revolver, Maturing 2024 [Member] [Member] | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt amount | $ 150,000,000 | $ 150,000,000 | |||||||
IPO [Member] | Letter of Credit [Member] | SciPlay Revolver, Maturing 2024 [Member] [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Letters of Credit Outstanding, Amount | $ 15,000,000 | ||||||||
IPO [Member] | Base Rate | Revolving Credit Facility [Member] | SciPlay Revolver, Maturing 2024 [Member] [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin spread on debt | 1.25% | ||||||||
IPO [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | SciPlay Revolver, Maturing 2024 [Member] [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin spread on debt | 2.25% | ||||||||
IPO [Member] | London Interbank Offered Rate (LIBOR), Leveraged Base Step Down [Member] | Revolving Credit Facility [Member] | SciPlay Revolver, Maturing 2024 [Member] [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin spread on debt | 0.25% | ||||||||
IPO [Member] | London Interbank Offered Rate (LIBOR), Leveraged Base Step Up [Member] | Revolving Credit Facility [Member] | SciPlay Revolver, Maturing 2024 [Member] [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin spread on debt | 0.25% | ||||||||
IPO [Member] | Base Rate, Step Down [Member] | Revolving Credit Facility [Member] | SciPlay Revolver, Maturing 2024 [Member] [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin spread on debt | 0.25% |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Feb. 28, 2018 | |
Derivatives Fair Value | |||
Document Period End Date | Dec. 31, 2020 | ||
Contingent acquisition consideration liabilities | $ 13 | $ 14 | |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swap | |||
Derivatives Fair Value | |||
Derivative, average fixed interest rate | 2.4418% | ||
Notional amounts of the forward contracts | $ 800 | ||
Senior Secured Notes, maturing 2025 | |||
Derivatives Fair Value | |||
Debt Instrument, interest rate, stated percentage | 2.946% | ||
Senior Secured Notes, maturing 2025 | Senior Notes | |||
Derivatives Fair Value | |||
Debt Instrument, interest rate, stated percentage | 5.00% | 2.946% | |
Senior Secured Notes, maturing 2025 | Senior Notes | Cross-currency interest rate swaps | |||
Derivatives Fair Value | |||
Debt converted in interest rate swap | $ 460 | ||
Senior Secured Euro Notes, maturing 2026 | Net Investment Hedging | Designated as Hedging Instrument | |||
Derivatives Fair Value | |||
Net investment non-derivative hedge | $ 133 | ||
Senior Secured Euro Notes, maturing 2026 | Senior Notes | |||
Derivatives Fair Value | |||
Debt Instrument, interest rate, stated percentage | 3.375% | ||
Accrued Liabilities | |||
Derivatives Fair Value | |||
Contingent acquisition consideration liabilities | $ 11 | $ 7 |
Fair Value Measurements - Gains
Fair Value Measurements - Gains (Losses) on Interest Rate Swaps (Details) - Interest rate swap - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments unrealized (loss) gain, net of tax | $ (6) | $ (11) | $ 0 |
Interest expense recorded related to interest rate swap contracts | $ 15 | $ 1 | $ 3 |
Fair Value Measurements - Effec
Fair Value Measurements - Effect of Interest Rate Swap Contracts Designated as Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||
Total interest expense which reflects the effects of cash flow hedges | $ (503) | $ (589) | $ (597) | |
Hedged item | (20) | |||
Derivative designated as hedging instrument | $ 5 | |||
Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Hedged item | $ (20) | |||
Derivative designated as hedging instrument | $ 19 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Gains (losses) recorded in accumulated other comprehensive loss, net of tax | $ 5 | ||
Other liabilities | Interest rate swap | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative fair value | 22 | $ 16 | |
Gains (losses) recorded in accumulated other comprehensive loss, net of tax | 6 | 16 | $ 0 |
Other assets | Cross-currency interest rate swaps | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative fair value | 14 | 41 | |
Gains (losses) recorded in accumulated other comprehensive loss, net of tax | $ 27 | $ 23 | $ 18 |
Stockholders' Deficit - Changes
Stockholders' Deficit - Changes in Common Stock (Details) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Shares outstanding as of beginning of period (in shares) | 94 | 92 |
Shares issued as part of equity-based compensation plans and the ESPP, net of shares surrendered (in shares) | 1 | 2 |
Shares outstanding as of end of period (in shares) | 95 | 94 |
Stockholders' Deficit - Additio
Stockholders' Deficit - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 31, 2020 | Jun. 19, 2017 | Jan. 01, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense recognized | $ 61 | $ 37 | $ 44 | ||||
Employee Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock reserved for awards under incentive compensation plan (in shares) | 2,000,000 | ||||||
Maximum employee subscription rate | 15.00% | ||||||
Discount from market price | 15.00% | ||||||
Shares issued | 80,000 | 100,000 | 83,000 | ||||
Average price of shares issues (in usd per share) | $ 19.55 | $ 19.32 | $ 22.79 | ||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period from first anniversary of grant | 4 years | ||||||
Award expiration period | 10 years | ||||||
Stock-based compensation expense recognized | $ 9 | $ 5 | $ 12 | ||||
Grants, weighted average grant date fair value (in usd per share) | $ 35.41 | ||||||
Fair value of options granted | $ 54 | ||||||
Unrecognized stock-based compensation expense relating to unvested awards that will be amortized | $ 33 | ||||||
Unvested stock options (in shares) | 2,000,000 | ||||||
Weighted-average period of amortization | 2 years | ||||||
Average remaining contract term | 6 years 3 months 18 days | ||||||
Options exercisable at end of period (in usd per share) | $ 33.60 | ||||||
Cash received from exercise of stock options | $ 4 | ||||||
Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period from first anniversary of grant | 4 years | ||||||
Stock-based compensation expense recognized | 30 | $ 23 | $ 32 | ||||
Unrecognized stock-based compensation expense relating to unvested awards that will be amortized | $ 40 | ||||||
Weighted-average period of amortization | 2 years | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized stock-based compensation expense relating to unvested awards that will be amortized | $ 8 | ||||||
Weighted-average period of amortization | 7 months 6 days | ||||||
Rights Agreement | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares reserved for issuance (in shares) | 20,000 | ||||||
2003 Incentive Compensation Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock reserved for awards under incentive compensation plan (in shares) | 23,000,000 | ||||||
Shares available for grant (in shares) | 3,000,000 | ||||||
Preexisting Incentive Compensation Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares reserved for issuance (less than) | 100,000 | ||||||
Series A Junior Participating Preferred Stock | Amended and Restated Rights Agreement | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Preferred par value (in usd per share) | $ 0.001 | ||||||
Exercise price of rights (in usd per share) | $ 109 | ||||||
Preferred shares outstanding (in shares) | 0 | ||||||
Preferred Share Purchase Right | Series A Junior Participating Preferred Stock | Amended and Restated Rights Agreement | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Preferred dividend (in shares) | 1 | ||||||
Preferred shares issued on exercise (in shares) | 0 |
Stockholders' Deficit - Restric
Stockholders' Deficit - Restricted Stock Units (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | $ 61 | $ 37 | $ 44 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | 30 | 23 | 32 |
Unrecognized stock-based compensation expense relating to unvested awards that will be amortized | $ 40 | ||
Weighted-average period of amortization | 2 years | ||
Fair value at vesting date | $ 16.8 | $ 22 | $ 88 |
Number of Restricted Stock Units (in shares) [Roll Forward] | |||
Unvested units outstanding at the beginning of the period (in shares) | 2.9 | ||
Number of RSUs granted (in shares) | 2.7 | ||
Number of RSUs vested (in shares) | (1.3) | ||
Number of RSUs cancelled (in shares) | (1) | ||
Unvested units outstanding at the end of the period (in shares) | 3.3 | 2.9 | |
Weighted Average Grant Date Fair Value (in dollars per share) [Roll Forward] | |||
Weighted average grant date fair value of unvested units outstanding at the beginning of the period (in usd per share) | $ 24.80 | ||
Fair value of RSUs granted (in usd per share) | 13.75 | $ 21.78 | |
Fair value of RSUs vested (in usd per share) | 19.77 | ||
Fair value of RSUs cancelled (in usd per share) | 19.25 | ||
Weighted average grant date fair value of unvested units outstanding at the end of the period (in usd per share) | $ 19.07 | $ 24.80 |
Stockholders' Deficit Stock-Bas
Stockholders' Deficit Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | |
Class of Stock [Line Items] | ||||
Stock-based compensation expense recognized | $ 61 | $ 37 | $ 44 | |
Document Period End Date | Dec. 31, 2020 | |||
SciPlay Corporation Long-Term Incentive Plan [Member] [Domain] | Common Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock reserved for awards under incentive compensation plan (in shares) | 6.5 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 4.1 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ 15.27 | |||
Restricted Stock Units | ||||
Class of Stock [Line Items] | ||||
Stock-based compensation expense recognized | $ 30 | $ 23 | 32 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 3.3 | 2.9 | ||
Restricted Stock Units | SciPlay [Member] | ||||
Class of Stock [Line Items] | ||||
Stock-based compensation expense recognized | $ 22 | $ 9 | 0 | |
Stock Options | ||||
Class of Stock [Line Items] | ||||
Stock-based compensation expense recognized | $ 9 | $ 5 | $ 12 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)plan | Dec. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||
Number of pension plans | plan | 2 | |
Estimated contributions in the next fiscal year | $ 9 | |
Defined Benefit Plan, Accumulated Benefit Obligation | 180 | $ 154 |
Underfunded status of Pension Plans | $ 32 | $ 25 |
U.K. Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Maximum increase in pensionable earnings | 2.00% | |
Funded percentage (less than) | 100.00% | |
U.K. Plan | Global return fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation in debt securities | 37.00% | |
U.K. Plan | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation in debt securities | 10.00% | |
U.K. Plan | Liability Driven Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation in debt securities | 20.00% | |
U.K. Plan | Corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation in debt securities | 13.00% | |
U.K. Plan | U.K | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation in debt securities | 4.00% | |
U.K. Plan | Other Than United Kingdom | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation in debt securities | 16.00% | |
Canadian Plan | Corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation in debt securities | 33.00% | |
Canadian Plan | Canada | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation in debt securities | 23.00% | |
Canadian Plan | Other Than Canada | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation in debt securities | 44.00% |
Employee Benefit Plans - Funded
Employee Benefit Plans - Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 154 | $ 125 | |
Service cost | 3 | 2 | $ 3 |
Interest cost | 4 | 4 | 4 |
Participant contributions | 1 | 1 | |
Actuarial loss | (17) | (21) | |
Benefits paid | (4) | (3) | |
Other, principally foreign exchange | (5) | (4) | |
Benefit obligation at end of year | 154 | 125 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 129 | 107 | |
Actual gain on plan assets | 16 | 18 | |
Employer contributions | 4 | 4 | |
Participant contributions | 1 | 1 | |
Benefits paid | (5) | (3) | |
Other, principally foreign exchange | (3) | (2) | |
Fair value of assets at end of year | 148 | 129 | $ 107 |
Amounts recognized in the consolidated balance sheets: | |||
Funded status (current) | 0 | 0 | |
Funded status (non-current) | (32) | (25) | |
Accumulated other comprehensive loss: | |||
Unrecognized actuarial loss | 40 | 34 | |
Unrecognized prior service cost | (2) | 0 | |
Deferred taxes | 0 | (1) | |
Net amount recognized | 6 | 8 | |
Defined Benefit Plan, Accumulated Benefit Obligation | $ 180 | $ 154 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 3 | $ 2 | $ 3 |
Interest cost | 4 | 4 | 4 |
Expected return on plan assets | (6) | (5) | (6) |
Amortization of actuarial losses | 2 | 1 | 1 |
Net periodic cost | $ 3 | $ 2 | $ 2 |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts in Accumulated Other Comprehensive (Loss) Income (Details) $ in Millions | Dec. 31, 2020USD ($) |
Retirement Benefits [Abstract] | |
Unrecognized loss | $ 2 |
Unrecognized prior service cost | (1) |
Net amount expected to be recognized | $ 1 |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | $ 148 | $ 129 | $ 107 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 43 | 39 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 96 | 85 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 9 | 5 | $ 4 |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 58 | 62 | |
Equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 41 | 35 | |
Equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 17 | 27 | |
Global return fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 32 | 19 | |
Global return fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 32 | 19 | |
Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 25 | 13 | |
Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 25 | 13 | |
Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 5 | 12 | |
Government bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 5 | 12 | |
Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 9 | 5 | |
Real estate | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 0 | ||
Real estate | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 9 | 5 | |
LDI (Liability Driven Investment) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 17 | 14 | |
LDI (Liability Driven Investment) | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 17 | 14 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | 2 | 4 | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension assets | $ 2 | $ 4 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Level 3 Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in fair value of the pension assets valued using significant unobservable inputs (Level 3) | ||
Fair value of plan assets at beginning of year | $ 129 | $ 107 |
Fair value of assets at end of year | 148 | 129 |
Level 3 | ||
Change in fair value of the pension assets valued using significant unobservable inputs (Level 3) | ||
Fair value of plan assets at beginning of year | 5 | 4 |
Unrealized gain on asset still held | 4 | 1 |
Fair value of assets at end of year | $ 9 | $ 5 |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted-Average Assumptions used to Determine Benefit Obligation (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
U.K. Plan | |||
Weighted average actuarial assumptions used to determine the benefit obligation and net periodic benefit cost | |||
Discount rate used to calculate benefit obligation (as a percent) | 1.40% | 2.00% | 2.90% |
Discount rate used to calculate net periodic pension cost (as a percent) | 1.40% | 2.00% | 2.60% |
Rate of compensation increase (as a percent) | 1.00% | 1.00% | 1.00% |
Expected return on assets (as a percent) | 3.60% | 5.10% | 5.00% |
Canadian Plan | |||
Weighted average actuarial assumptions used to determine the benefit obligation and net periodic benefit cost | |||
Discount rate used to calculate benefit obligation (as a percent) | 3.10% | 3.10% | 3.90% |
Discount rate used to calculate net periodic pension cost (as a percent) | 3.10% | 3.90% | 3.60% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | 1.00% |
Expected return on assets (as a percent) | 5.20% | 5.50% | 5.70% |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Expected benefit payments | |
Expected benefit payments, years 2024-2028 | $ 32 |
Minimum | |
Expected benefit payments | |
Expected benefit payments, year one | 4 |
Expected benefit payments, year two | 4 |
Expected benefit payments, year three | 4 |
Expected benefit payments, year four | 4 |
Expected benefit payments, year five | 4 |
Maximum | |
Expected benefit payments | |
Expected benefit payments, year one | 6 |
Expected benefit payments, year two | 6 |
Expected benefit payments, year three | 6 |
Expected benefit payments, year four | 6 |
Expected benefit payments, year five | $ 6 |
Employee Benefit Plans - 401(k)
Employee Benefit Plans - 401(k) Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Employer matching contribution, percentage of match | 6.00% | ||
Contribution expense | $ 5 | $ 11 | $ 12 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | $ (292) | $ (300) | $ (200) |
Change during period | 74 | 7 | (101) |
Reclassified into operations | 0 | 1 | 1 |
Balance at the end of the period | (218) | (292) | (300) |
Foreign Currency Items | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | (256) | (282) | (183) |
Change during period | 85 | 26 | (99) |
Reclassified into operations | 0 | 0 | 0 |
Balance at the end of the period | (171) | (256) | (282) |
Derivative Financial Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | (11) | 0 | 0 |
Change during period | (6) | (11) | 0 |
Reclassified into operations | 0 | 0 | 0 |
Balance at the end of the period | (17) | (11) | 0 |
Other comprehensive income (loss), tax benefit (expense) | 0 | 4 | 0 |
Unrecognized pension benefit costs, net of taxes | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | (25) | (18) | (17) |
Change during period | (5) | (8) | (2) |
Reclassified into operations | 0 | 1 | 1 |
Balance at the end of the period | (30) | (25) | (18) |
Other comprehensive income (loss), tax benefit (expense) | $ 0 | $ 1 | $ 1 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Tax and Benefit for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Components of income (loss) before income taxes | |||
United States | $ (420) | $ (158) | $ (356) |
Foreign | (124) | 50 | 17 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (544) | (108) | (339) |
Current | |||
U.S. Federal | 6 | (5) | 19 |
U.S. State | (1) | 1 | 4 |
Foreign | 20 | 32 | 22 |
Total | 25 | 28 | 45 |
Deferred | |||
U.S. Federal | (4) | (3) | (10) |
U.S. State | (4) | (3) | (7) |
Foreign | (13) | (12) | (15) |
Total | (21) | (18) | (32) |
Total income tax expense | $ 4 | $ 10 | $ 13 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of the U.S. federal statutory tax rate to the actual tax rate is as follows: | |||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 21.00% |
Foreign earnings at rates different than U.S. federal rate | (0.20%) | (3.70%) | (1.50%) |
Valuation allowance adjustments | (16.70%) | (31.00%) | (16.80%) |
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act, Percent | 0 | 0 | (0.031) |
Effective Income Tax Rate Reconciliation, Adjustment Permanent Items, Percent | (1.90%) | (3.60%) | (2.50%) |
Effective Income Tax Rate Reconciliation, Reduction of UTBs, Percent | 0.30% | 6.20% | 0.00% |
Effective Income Tax Rate Reconciliation, Goodwill Impairment, Percent | (2.20%) | 0.00% | 0.00% |
Other | (1.00%) | 1.90% | (1.00%) |
Effective income tax rate | (0.70%) | (9.20%) | (3.90%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Reserves and other accrued expenses | $ 89 | $ 78 |
Net operating loss carry forwards | 478 | 296 |
Tax credit carry forwards | 42 | 40 |
Interest limitation carryforwards | 22 | 157 |
Differences in financial reporting and tax basis for: | ||
Other | 60 | 51 |
Valuation allowance | (328) | (209) |
Realizable deferred tax assets | 363 | 413 |
Differences in financial reporting and tax basis for: | ||
Identifiable intangible assets | (253) | (312) |
Property and equipment | (51) | (47) |
Other | (14) | (25) |
Total deferred tax liabilities | (318) | (384) |
Deferred Tax Assets, Net | $ 45 | $ 29 |
Income Taxes - Carryforwards (D
Income Taxes - Carryforwards (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Loss Carryforwards [Line Items] | ||
Interest limitation carry forwards | $ 22 | $ 157 |
R&D and state credit carry forwards | 42 | $ 40 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
NOL carry forwards | 1,609 | |
Interest limitation carry forwards | 78 | |
R&D and state credit carry forwards | 44 | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
NOL carry forwards | 1,488 | |
Interest limitation carry forwards | 118 | |
R&D and state credit carry forwards | 0 | |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
NOL carry forwards | 274 | |
Interest limitation carry forwards | 14 | |
R&D and state credit carry forwards | $ 0 |
Income Taxes - Valuation Allowa
Income Taxes - Valuation Allowance (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Valuation allowance | ||
Valuation allowance | $ 328 | $ 209 |
Federal | ||
Valuation allowance | ||
Valuation allowance | 220 | 128 |
State | ||
Valuation allowance | ||
Valuation allowance | 52 | 40 |
Foreign | ||
Valuation allowance | ||
Valuation allowance | $ 56 | $ 41 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Unrecognized Tax Benefits | ||||
Unrecognized tax benefits | $ 28 | $ 34 | $ 34 | $ 30 |
Unrecognized tax benefit, if recognized, would have an impact on effective tax rate | $ 30 | |||
Activity for unrecognized tax benefits [Roll Forward] | ||||
Balance at beginning of period | 28 | 34 | 22 | |
Tax positions related to current year additions | 1 | 1 | 11 | |
Additions for tax positions of prior years | 2 | 0 | 2 | |
Reductions due to lapse of statute of limitations on tax positions | (1) | (7) | (1) | |
Balance at end of period | $ 30 | $ 28 | $ 34 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation allowance | |||
Goodwill, Impairment Loss | $ 54 | $ 0 | $ 0 |
Tax Cuts and Jobs Act of 2017, Change in tax rate, deferred tax asset, income tax expense (benefit) | $ 36 | ||
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | $ 7 | ||
Effective Income Tax Rate Reconciliation, Goodwill Impairment, Percent | (2.20%) | 0.00% | 0.00% |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | |||
Valuation allowance | |||
Additions | $ 119 | $ 86 | |
UK Gaming [Member] | |||
Valuation allowance | |||
Goodwill, Impairment Loss | $ 54 |
Litigation (Details)
Litigation (Details) € in Millions, $ in Millions, $ in Billions | Apr. 16, 2012EUR (€) | Feb. 28, 2015EUR (€) | May 31, 2013USD ($) | May 31, 2013COP ($) | Dec. 31, 2020USD ($) | Jun. 30, 1993USD ($) |
Litigation | ||||||
Loss contingency accrual | $ | $ 3 | |||||
Legal contingencies, liability range | $ | $ 15 | |||||
Barcrest | ||||||
Litigation | ||||||
Litigation settlement amount | € | € 25 | |||||
Litigation Settlement, Expense | € | € 9.4 | |||||
Third party erroneous winning jackpot face amount in excess of threshold | € | € 400 | |||||
Third party loss | € | € 1.5 | |||||
Ecosalud | ||||||
Litigation | ||||||
Litigation settlement amount | $ 30.2 | $ 90 | ||||
Guarantee of business revenue | ||||||
Litigation | ||||||
Legal contingencies, liability range | $ | $ 5 | |||||
Performance guarantee | ||||||
Litigation | ||||||
Surety bond | $ | $ 4 |
SCHEDULE II Valuation and Qua_2
SCHEDULE II Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-09, Allowance, Credit Loss | |||
Allowance for valuation and qualifying accounts | |||
Balance at Beginning of Period | $ 36 | $ 40 | $ 31 |
Additions | 56 | 9 | 9 |
Deductions | (12) | (13) | 0 |
Balance at End of Period | 86 | 36 | 40 |
SEC Schedule, 12-09, Allowance, Credit Loss | Accounting Standards Update 2019-11 | |||
Allowance for valuation and qualifying accounts | |||
Balance at Beginning of Period | 42 | ||
Balance at End of Period | 42 | ||
Tax-Related valuation allowance | |||
Allowance for valuation and qualifying accounts | |||
Balance at Beginning of Period | 209 | 245 | 159 |
Additions | 119 | 86 | |
Deductions | (36) | ||
Balance at End of Period | $ 328 | $ 209 | $ 245 |
Uncategorized Items - sgms-2020
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2014-09 [Member] |