Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 02, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-11693 | |
Entity Registrant Name | LIGHT & WONDER, INC. | |
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, $.001 par value | |
Trading Symbol | LNW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 88,724,171 | |
Entity Central Index Key | 0000750004 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Revenue: | |||||
Revenue | $ 818 | $ 731 | $ 1,575 | $ 1,400 | |
Operating expenses: | |||||
Selling, general and administrative | 220 | 203 | 438 | 396 | |
Research and development | 66 | 58 | 128 | 112 | |
Depreciation, amortization and impairments | 87 | 108 | 173 | 208 | |
Restructuring and other | 34 | 31 | 40 | 50 | |
Operating income | 175 | 113 | 340 | 215 | |
Other (expense) income: | |||||
Interest expense | (75) | (78) | (150) | (153) | |
Other income (expense), net | 8 | (15) | 18 | (16) | |
Total other expense, net | (67) | (93) | (132) | (169) | |
Net income before income taxes | 108 | 20 | 208 | 46 | |
Income tax expense | (26) | (15) | (44) | (14) | |
Net income | 82 | 5 | 164 | 32 | |
Less: Net income attributable to noncontrolling interest | 0 | 6 | 0 | 11 | |
Net income (loss) attributable to L&W | $ 82 | $ (1) | $ 164 | $ 21 | |
Per Share - Basic: | |||||
Net income (loss) attributable to L&W | $ 0.92 | $ (0.01) | $ 1.83 | $ 0.23 | |
Per Share - Diluted: | |||||
Net income (loss) attributable to L&W | $ 0.90 | $ (0.01) | $ 1.78 | $ 0.22 | |
Weighted average number of shares used in per share calculations: | |||||
Basic shares | 90 | 91 | 90 | 91 | |
Diluted shares | 92 | 91 | 92 | 93 | |
Services | |||||
Revenue: | |||||
Revenue | $ 526 | $ 496 | $ 1,044 | $ 973 | |
Operating expenses: | |||||
Cost of revenue | [1] | 111 | 110 | 223 | 218 |
Products | |||||
Revenue: | |||||
Revenue | 292 | 235 | 531 | 427 | |
Operating expenses: | |||||
Cost of revenue | [1] | $ 125 | $ 108 | $ 233 | $ 201 |
[1] (1) Excludes D&A. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 82 | $ 5 | $ 164 | $ 32 |
Foreign currency translation (loss) gain, net of tax | (1) | 37 | (30) | 50 |
Derivative financial instruments unrealized gain, net of tax | 0 | 10 | 6 | 3 |
Total other comprehensive (loss) income | (1) | 47 | (24) | 53 |
Total comprehensive income | 81 | 52 | 140 | 85 |
Less: Net income attributable to noncontrolling interest | 0 | 6 | 0 | 11 |
Comprehensive income attributable to L&W | $ 81 | $ 46 | $ 140 | $ 74 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 321 | $ 425 |
Restricted cash | 95 | 90 |
Receivables, net of allowance for credit losses of $37 and $38, respectively | 575 | 506 |
Inventories | 186 | 177 |
Prepaid expenses, deposits and other current assets | 112 | 113 |
Total current assets | 1,289 | 1,311 |
Non-current assets: | ||
Restricted cash | 6 | 6 |
Receivables, net of allowance for credit losses of $7 and $3, respectively | 60 | 37 |
Property and equipment, net | 269 | 236 |
Operating lease right-of-use assets | 45 | 52 |
Goodwill | 2,925 | 2,945 |
Intangible assets, net | 529 | 605 |
Software, net | 162 | 158 |
Deferred income taxes | 180 | 142 |
Other assets | 73 | 60 |
Total assets | 5,538 | 5,552 |
Current liabilities: | ||
Current portion of long-term debt | 22 | 22 |
Accounts payable | 277 | 241 |
Accrued liabilities | 362 | 404 |
Income taxes payable | 35 | 29 |
Total current liabilities | 696 | 696 |
Deferred income taxes | 19 | 20 |
Operating lease liabilities | 31 | 39 |
Other long-term liabilities | 157 | 180 |
Long-term debt, excluding current portion | 3,849 | 3,852 |
Total liabilities | 4,752 | 4,787 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Common stock, par value $0.001 per share, 199 shares authorized; 117 and 116 shares issued, respectively, and 89 and 90 shares outstanding, respectively | 1 | 1 |
Additional paid-in capital | 1,175 | 1,118 |
Retained earnings | 844 | 680 |
Treasury stock, at cost, 28 and 26 shares, respectively | (927) | (751) |
Accumulated other comprehensive loss | (307) | (283) |
Total stockholders’ equity | 786 | 765 |
Total liabilities and stockholders’ equity | $ 5,538 | $ 5,552 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 37 | $ 38 |
Accounts Receivable, Allowance for Credit Loss, Noncurrent | $ 7 | $ 3 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 199,000,000 | 199,000,000 |
Common Stock, Shares, Issued | 117,000,000 | 116,000,000 |
Common Stock, Shares, Outstanding | 89,000,000 | 90,000,000 |
Treasury Stock, Common, Shares | 28,000,000 | 26,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | ||
Cash flows from operating activities: | |||
Net income | $ 164 | $ 32 | |
Adjustments to reconcile net income to net cash provided by operating activities | 235 | 320 | |
Changes in working capital accounts, excluding the effects of acquisition | (48) | (97) | |
Change in deferred income taxes and other | (39) | (36) | |
Net cash provided by operating activities | 312 | 219 | |
Cash flows from investing activities: | |||
Capital expenditures | 153 | 112 | |
Other(1) | (5) | (6) | [1] |
Net cash used in investing activities | (158) | (118) | |
Cash flows from financing activities: | |||
Payments on long-term debt | (5) | (11) | |
Payments of debt issuance and deferred financing costs | (2) | 0 | |
Payments on license obligations | (14) | (18) | |
Payments of contingent acquisition considerations | (14) | (9) | |
Purchase of L&W common stock | (175) | (33) | |
Purchase of SciPlay’s Class A common stock | 0 | (23) | |
Net redemptions of common stock under stock-based compensation plans and other | (40) | (11) | |
Net cash used in financing activities | (250) | (105) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3) | 1 | |
Decrease in cash, cash equivalents and restricted cash | (99) | (3) | |
Cash, cash equivalents and restricted cash, beginning of period | 521 | 967 | |
Cash, cash equivalents and restricted cash, end of period | 422 | 964 | |
Supplemental cash flow information: | |||
Cash paid for interest | 146 | 147 | |
Income taxes paid | 70 | 96 | |
Cash paid for contingent acquisition considerations included in operating activities | 22 | 9 | |
Supplemental non-cash transactions: | |||
Non-cash interest expense | $ 5 | $ 5 | |
[1] (1) The six months ended June 30, 2023 include $3 million in cash used in discontinued operations. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Statement of Cash Flows [Abstract] | |
Cash Used in Investing Activities, Discontinued Operations | $ 3 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Description of the Business and Summary of Significant Accounting Policies | Description of the Business We are a leading cross-platform global games company with a focus on content and digital markets. Our portfolio of revenue-generating activities primarily includes supplying game content and gaming machines, CMSs and table game products and services to licensed gaming entities; providing social casino and other mobile games, including casual gaming, to retail customers; and providing a comprehensive suite of digital gaming content, distribution platforms and player account management systems, as well as various other iGaming content and services. We report our results of operations in three business segments—Gaming, SciPlay and iGaming—representing our different products and services. Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of L&W, its wholly owned subsidiaries, and those subsidiaries in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of L&W and its management, we have made all adjustments necessary to present fairly our consolidated financial position, results of operations, comprehensive income and cash flows for the periods presented. Such adjustments are of a normal, recurring nature. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2023 10-K. Interim results of operations are not necessarily indicative of results of operations to be expected for a full year. Significant Accounting Policies There have been no changes to our significant accounting policies described within the Notes of our 2023 10-K. Other Income (Expense), net Other income (expense), net includes gains and losses from foreign currency transactions, interest income, earnings (losses) from equity investments and other items. Other income (expense), net for the three and six months ended June 30, 2024 primarily consisted of interest income of $5 million and $10 million, respectively. For the three and six months ended June 30, 2023, other income (expense), net primarily consisted of foreign currency transaction losses, which totaled $25 million and $38 million, respectively. Computation of Basic and Diluted Net Income (Loss) Attributable to L&W Per Share Basic and diluted net income (loss) attributable to L&W per share are based upon net income (loss) attributable to L&W divided by the weighted average number of common shares outstanding during the period. Diluted net income attributable to L&W per share reflects the effect of the assumed exercise of stock options and RSUs only in the periods in which such effect would have been dilutive to net income. For the three and six months ended June 30, 2024, we included 2 million and 2 million, respectively, of common stock equivalents in the calculation of diluted net income attributable to L&W per share. For the six months ended June 30, 2023, we included 2 million of common stock equivalents in the calculation of diluted net income attributable to L&W per share. For the three months ended June 30, 2023, basic and diluted net loss attributable to L&W per share were the same, as all common stock equivalents would have been anti-dilutive for that period. We excluded 2 million of stock options and 2 million of RSUs outstanding from the calculation of diluted weighted-average common shares outstanding for the three months ended June 30, 2023. New Accounting Guidance There have been no recent accounting pronouncements or changes in accounting pronouncements since those described within the Notes of our 2023 10-K that are expected to have a material impact on our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | The following table disaggregates our revenues by type within each of our business segments: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Gaming Gaming operations $ 175 $ 167 $ 340 $ 327 Gaming machine sales 228 173 433 331 Gaming systems 82 72 142 127 Table products 54 59 101 105 Total $ 539 $ 471 $ 1,016 $ 890 SciPlay Mobile in-app purchases $ 160 $ 170 $ 330 $ 335 Web in-app purchases and other (1) 45 20 81 41 Total $ 205 $ 190 $ 411 $ 376 iGaming $ 74 $ 70 $ 148 $ 134 (1) Other represents $24 million and $36 million in revenue generated via our proprietary direct-to-consumer platform for the three and six months ended June 30, 2024, respectively, along with advertising and other revenue, which were not material for the periods presented. The amount of rental income revenue included in services revenue within the consolidated statement of operations that is outside the scope of ASC 606 was $136 million and $263 million for the three and six months ended June 30, 2024, respectively, and $123 million and $240 million for the three and six months ended June 30, 2023, respectively. Contract Liabilities and Other Disclosures The following table summarizes the activity in our contract liabilities for the reporting period: Six Months Ended June 30, 2024 Contract liability balance, beginning of period (1) $ 27 Liabilities recognized during the period 14 Amounts recognized in revenue from beginning balance (16) Contract liability balance, end of period (1) $ 25 (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. The following table summarizes our balances in these accounts for the periods indicated (other than contract liabilities disclosed above): Receivables Contract Assets (1) Beginning of period balance $ 543 $ 24 End of period balance, June 30, 2024 635 26 (1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets. As of June 30, 2024, we did not have material unsatisfied performance obligations for contracts expected to be long-term or contracts for which we recognize revenue at an amount other than that for which we have the right to invoice for goods or services delivered or performed. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Business Segments | We report our operations in three business segments—Gaming, SciPlay and iGaming—representing our different products and services. A detailed discussion regarding the products and services from which each reportable business segment derives its revenue is included in Notes 3 and 4 in our 2023 10-K. In evaluating financial performance, our Chief Operating Decision Maker (defined as our Chief Executive Officer) focuses on AEBITDA as management’s primary segment measure of profit or loss, which is described in footnote (2) to the below table. The accounting policies for our business segments are the same as those described within the Notes in our 2023 10-K. The following tables present our segment information: Three Months Ended June 30, 2024 Gaming SciPlay iGaming Unallocated and Reconciling Items (1) Total Total revenue $ 539 $ 205 $ 74 $ — $ 818 AEBITDA (2) 272 70 24 (36) $ 330 Reconciling items to net income before income taxes: D&A (63) (6) (13) (5) (87) Restructuring and other (1) — 1 (34) (34) Interest expense (75) (75) Other income, net 5 5 Stock-based compensation (31) (31) Net income before income taxes $ 108 (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes. (2) AEBITDA is reconciled to net income before income taxes with the following adjustments, as applicable: (1) depreciation and amortization expense and impairment charges (including goodwill impairments); (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- and disposition-related costs and other unusual items; (3) interest expense; (4) gain (loss) on debt refinancing transactions; (5) change in fair value of investments and remeasurement of debt and other; (6) other income (expense), net, including foreign currency gains or losses and earnings from equity investments; and (7) stock-based compensation. AEBITDA is presented as our primary segment measure of profit or loss. Three Months Ended June 30, 2023 Gaming SciPlay iGaming Unallocated and Reconciling Items (1) Total Total revenue $ 471 $ 190 $ 70 $ — $ 731 AEBITDA (2) 233 59 24 (35) $ 281 Reconciling items to net income before income taxes: D&A (79) (11) (12) (6) (108) Restructuring and other (3) (2) (9) (17) (31) Interest expense (78) (78) Other expense, net (16) (16) Stock-based compensation (28) (28) Net income before income taxes $ 20 (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes. (2) AEBITDA is described in footnote (2) to the first table in this Note 3. Six Months Ended June 30, 2024 Gaming SciPlay iGaming Unallocated and Reconciling Items (1) Total Total revenue $ 1,016 $ 411 $ 148 $ — $ 1,575 AEBITDA (2) 504 132 48 (74) $ 610 Reconciling items to net income before income taxes: D&A (123) (13) (26) (11) (173) Restructuring and other (1) — (2) (37) (40) Interest expense (150) (150) Other income, net 14 14 Stock-based compensation (53) (53) Net income before income taxes $ 208 (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes. (2) AEBITDA is described in footnote (2) to the first table in this Note 3. Six Months Ended June 30, 2023 Gaming SciPlay iGaming Unallocated and Reconciling Items (1) Total Total revenue $ 890 $ 376 $ 134 $ — $ 1,400 AEBITDA (2) 438 113 47 (69) $ 529 Reconciling items to net income before income taxes: D&A (156) (17) (24) (11) (208) Restructuring and other (11) (3) (10) (26) (50) Interest expense (153) (153) Other expense, net (18) (18) Stock-based compensation (54) (54) Net income before income taxes $ 46 (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes. (2) AEBITDA is described in footnote (2) to the first table in this Note 3. |
Restructuring and Other
Restructuring and Other | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
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- and disposition-related costs and other unusual items. The following table summarizes pre-tax restructuring and other costs for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Employee severance and related $ — $ 4 $ 1 $ 13 Legal and related 32 — 32 — Strategic review and related (1) — 14 1 18 Contingent acquisition consideration (2) (1) 9 — 9 Restructuring, integration and other 3 4 6 10 Total $ 34 $ 31 $ 40 $ 50 (1) Includes costs associated with the SciPlay merger, ASX listing, sale of discontinued operations (including ongoing separation activities), rebranding and related activities. Refer to the Notes in our 2023 10-K for more information regarding these activities. (2) Represents contingent consideration fair value adjustments (see Note 11). |
Accounts Receivable and Notes R
Accounts Receivable and Notes Receivable and Credit Quality of Receivables | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Accounts and Nontrade Receivable | Receivables The following table summarizes the components of current and long-term receivables, net: As of June 30, 2024 December 31, 2023 Current: Receivables $ 612 $ 544 Allowance for credit losses (37) (38) Current receivables, net 575 506 Long-term: Receivables 67 40 Allowance for credit losses (7) (3) Long-term receivables, net 60 37 Total receivables, net $ 635 $ 543 Allowance for Credit Losses 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 June 30, 2024 Balances over 90 days past due December 31, 2023 Balances over 90 days past due Receivables: U.S. and Canada $ 354 $ 4 $ 344 $ 13 International 325 42 240 50 Total receivables 679 46 584 63 Receivables allowance: U.S. and Canada (19) (4) (17) (3) International (25) (12) (24) (12) Total receivables allowance (44) (16) (41) (15) Receivables, net $ 635 $ 30 $ 543 $ 48 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 three and six months ended June 30, 2024 and 2023 is as follows: 2024 2023 Total U.S. and Canada International Total Beginning allowance for credit losses $ (41) $ (17) $ (24) $ (40) Provision (1) — (1) (1) Charge-offs and recoveries 2 1 1 1 Allowance for credit losses as of March 31 $ (40) $ (16) $ (24) $ (40) Provision (6) (3) (3) (4) Charge-offs and recoveries 2 — 2 2 Allowance for credit losses as of June 30 $ (44) $ (19) $ (25) $ (42) As of June 30, 2024, 5% of our total receivables, net, were past due by over 90 days, compared to 9% as of December 31, 2023. Credit Quality of Receivables 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 June 30, 2024 Total Current Balances over 90 days past due Receivables $ 59 $ 45 $ 14 Allowance for credit losses (18) (11) (7) Receivables, net $ 41 $ 34 $ 7 We continuously review receivables and, as information concerning credit quality and/or overall economic environment arises, reassess our expectations of future losses and record an incremental reserve if warranted at that time. Our current allowance for credit losses represents our current expectation of credit losses; however, future expectations could change as international unrest or other macro-economic factors impact the financial stability of our customers. 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 June 30, 2024 and December 31, 2023, the fair value of receivables, net, approximated the carrying value due to contractual terms of receivables generally being less than 24 months. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: As of June 30, 2024 December 31, 2023 Parts and work-in-process $ 120 $ 113 Finished goods 66 64 Total inventories $ 186 $ 177 Parts and work-in-process include parts for gaming machines and our finished goods inventory primarily consist of gaming machines for sale. |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and equipment, net consisted of the following: As of June 30, 2024 December 31, 2023 Land $ 6 $ 6 Buildings and leasehold improvements 61 59 Gaming machinery and equipment 764 718 Furniture and fixtures 28 26 Construction in progress 12 7 Other property and equipment 99 94 Less: accumulated depreciation (701) (674) Total property and equipment, net $ 269 $ 236 Depreciation expense is excluded from cost of services, cost of products and other operating expenses and is separately presented within D&A. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Depreciation expense $ 32 $ 30 $ 63 $ 57 |
Intangible Assets, net and Good
Intangible Assets, net and Goodwill | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net and Goodwill | Intangible Assets, net The following tables present certain information regarding our intangible assets as of June 30, 2024 and December 31, 2023. As of June 30, 2024 December 31, 2023 Gross Carrying Accumulated Net Balance Gross Carrying Accumulated Net Balance Amortizable intangible assets: Customer relationships $ 902 $ (597) $ 305 $ 904 $ (567) $ 337 Intellectual property 940 (791) 149 947 (771) 176 Licenses 291 (230) 61 290 (217) 73 Brand names 130 (124) 6 129 (120) 9 Trade names 163 (159) 4 163 (157) 6 Patents and other 11 (7) 4 11 (7) 4 Total intangible assets $ 2,437 $ (1,908) $ 529 $ 2,444 $ (1,839) $ 605 The following reflects intangible amortization expense included within D&A: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Amortization expense (1) $ 38 $ 61 $ 75 $ 119 (1) The three and six months ended June 30, 2023 include intangible assets non-cash impairment charge of $4 million related to SciPlay restructuring of a certain foreign studio. Goodwill The table below reconciles the change in the carrying value of goodwill, by business segment, for the period from December 31, 2023 to June 30, 2024. Gaming (1) SciPlay iGaming Totals Balance as of December 31, 2023 $ 2,388 $ 210 $ 347 $ 2,945 Foreign currency adjustments (8) (2) (10) (20) Balance as of June 30, 2024 $ 2,380 $ 208 $ 337 $ 2,925 (1) Accumulated goodwill impairment charges for the Gaming segment as of June 30, 2024 were $989 million. |
Software, net
Software, net | 6 Months Ended |
Jun. 30, 2024 | |
Research and Development [Abstract] | |
Software, net | Software, net consisted of the following: As of June 30, 2024 December 31, 2023 Software $ 1,109 $ 1,083 Accumulated amortization (947) (925) Software, net $ 162 $ 158 The following reflects amortization of software included within D&A: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Amortization expense $ 17 $ 17 $ 35 $ 32 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term and Other Debt | The following table reflects our outstanding debt (in order of priority and maturity): As of June 30, 2024 December 31, 2023 Final Maturity Rate(s) Face Value Unamortized debt discount/premium and deferred financing costs, net Book Value Book Value Senior Secured Credit Facilities: LNWI Revolver 2027 variable $ — $ — $ — $ — LNWI Term Loan B 2029 variable 2,162 (25) 2,137 2,141 LNWI Senior Notes: 2028 Unsecured Notes 2028 7.000% 700 (6) 694 694 2029 Unsecured Notes 2029 7.250% 500 (5) 495 495 2031 Unsecured Notes 2031 7.500% 550 (7) 543 543 Other — — 2 — 2 1 Total long-term debt outstanding $ 3,914 $ (43) $ 3,871 $ 3,874 Less: current portion of long-term debt (22) (22) Long-term debt, excluding current portion $ 3,849 $ 3,852 Fair value of debt (1) $ 3,940 (1) 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. LNWI Term Loan B Repricing On July 17, 2024, we amended the LNWI Credit Agreement and reduced the applicable margin on the LNWI Term Loan B. Following the amendment, the interest rate for the Term Loan B is either (i) the Adjusted Term SOFR Rate (as defined in the LNWI Credit Agreement) plus 2.25% per annum or (ii) a base rate plus 1.25% per annum. We were in compliance with the financial covenants under all debt agreements as of June 30, 2024 (for information regarding our financial covenants of all debt agreements, see Note 15 in our 2023 10-K). For additional information regarding the terms of our credit facilities and Senior Notes, see Note 15 in our 2023 10-K. |
Fair Value of Measurements
Fair Value of Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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 June 30, 2024, we held the following derivative instruments that were accounted for pursuant to ASC 815: Interest Rate Swap Contracts We use interest rate swap contracts as described below to manage exposure to interest rate fluctuations by reducing the uncertainty of future cash flows on a portion of our variable rate debt. In April 2022, 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 were designated as cash flow hedges under ASC 815. We pay interest at a weighted-average fixed rate of 2.8320% and receive interest at a variable rate equal to one-month Chicago Mercantile Exchange Term SOFR. The total notional amount of these interest rate swaps was $700 million as of June 30, 2024. These hedges mature in April 2027. 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 gain and interest income on our interest rate swap contracts: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Gain recorded in accumulated other comprehensive loss, net of tax $ — $ 10 $ 6 $ 3 Interest income related to interest rate swap contracts recorded in interest expense 5 4 9 7 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 interest expense in the consolidated statements of income: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Total interest expense which reflects the effects of cash flow hedges $ (75) $ (78) $ (150) $ (153) Hedged item (5) (5) (10) (10) Derivative designated as hedging instrument 10 9 19 17 The following table shows the fair value of our hedges: As of Balance Sheet Line Item June 30, 2024 December 31, 2023 Interest rate swaps Other assets $ 28 $ 20 Contingent Acquisition Consideration Liabilities In connection with our acquisitions, we have recorded certain contingent consideration liabilities (including redeemable non-controlling interest), of which the values are primarily based on reaching certain earnings-based metrics. The related liabilities were recorded at fair value on their respective acquisition dates as a part of the consideration transferred and are remeasured each reporting period (other than for redeemable non-controlling interest, which is measured based on its redemption value). The inputs used to measure the fair value of our liabilities are categorized as Level 3 in the fair value hierarchy. The table below reconciles the change in the contingent acquisition consideration liabilities (including deferred purchase price) for the period from December 31, 2023 to June 30, 2024. Total Included in Accrued Liabilities Included in Other Long-Term Liabilities Balance as of December 31, 2023 $ 59 $ 39 $ 20 Payments (37) Fair value adjustments — Other adjustments (1) (5) Balance as of June 30, 2024 $ 17 $ 10 $ 7 (1) Represents extinguishment of $5 million in redeemable non-controlling interest liability associated with SciPlay’s acquisition of Alictus Yazilim Anonim Şirketi in 2022, as specified financial targets for the second year were not met. The gain was recorded in other income (expense), net in our consolidated statements of income. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Deficit | Changes in Stockholders’ Equity The following tables present certain information regarding our stockholders’ equity as of June 30, 2024 and 2023: Six Months Ended June 30, 2024 Common Stock Additional Paid in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Total January 1, 2024 $ 1 $ 1,118 $ 680 $ (751) $ (283) $ 765 Settlement of liability awards — 65 — — — 65 Vesting of RSUs, net of tax withholdings and other — (43) — — — (43) Purchase of treasury stock — — — (25) — (25) Stock-based compensation — 14 — — — 14 Net income — — 82 — — 82 Other comprehensive loss — — — — (23) (23) March 31, 2024 $ 1 $ 1,154 $ 762 $ (776) $ (306) $ 835 Vesting of RSUs, net of tax withholdings and other — 1 — — — 1 Purchase of treasury stock — — — (151) — (151) Stock-based compensation — 20 — — — 20 Net income — — 82 — — 82 Other comprehensive income — — — — (1) (1) June 30, 2024 $ 1 $ 1,175 $ 844 $ (927) $ (307) $ 786 Six Months Ended June 30, 2023 Common Stock Additional Paid in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Noncontrolling Interest Total January 1, 2023 $ 1 $ 1,370 $ 517 $ (580) $ (318) $ 171 $ 1,161 Settlement of liability awards — 25 — — — — 25 Vesting of RSUs, net of tax withholdings and other — (14) — — — — (14) Purchase of treasury stock — — — (28) — — (28) Purchase of SciPlay’s Class A common stock — (8) — — — — (8) Stock-based compensation — 15 — — — — 15 Net income — — 22 — — 5 27 Other comprehensive income — — — — 6 — 6 March 31, 2023 $ 1 $ 1,388 $ 539 $ (608) $ (312) $ 176 $ 1,184 Vesting of RSUs, net of tax withholdings and other — 1 — — — — 1 Purchase of treasury stock — — — (5) — — (5) Purchase of SciPlay’s Class A common stock — (15) — — — — (15) Stock-based compensation — 13 — — — — 13 Net (loss) income — — (1) — — 6 5 Other comprehensive income — — — — 47 — 47 June 30, 2023 $ 1 $ 1,387 $ 538 $ (613) $ (265) $ 182 $ 1,230 Stock-based Compensation The following reflects total stock-based compensation expense recognized under all programs: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Related to L&W RSUs $ 31 $ 21 $ 53 $ 40 Related to SciPlay RSUs — 7 — 14 Total (1) $ 31 $ 28 $ 53 $ 54 (1) Includes $11 million and $19 million of stock-based compensation classified as liability awards for the three and six months ended June 30, 2024, respectively, and $15 million and $26 million for the three and six months ended June 30, 2023, respectively. Restricted Stock Units A summary of the changes in RSUs outstanding under our equity-based compensation plans during the six months ended June 30, 2024 is presented below: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Unvested RSUs as of December 31, 2023 2.3 $ 55.53 Granted 1.4 $ 99.57 Vested (1.3) $ 72.70 Cancelled (0.1) $ 56.12 Unvested RSUs as of June 30, 2024 2.3 $ 71.90 The weighted-average grant date fair value of RSUs granted during the six months ended June 30, 2024 and 2023 was $99.57 and $57.15, respectively. The fair value of each RSU grant is based on the market value of our common stock at the time of grant. As of June 30, 2024, we had $125 million of unrecognized stock-based compensation expense relating to unvested RSUs amortized over a weighted-average period of approximately 1.3 years. The fair value at vesting date of RSUs vested during the six months ended June 30, 2024 and 2023 was $130 million and $51 million, respectively. Share Repurchase Program |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | We consider new evidence (both positive and negative) at each reporting date that could affect our view of the future realization of deferred tax assets. We evaluate information such as historical financial results, historical taxable income, projected future taxable income, expected timing of the reversals of existing temporary differences and available prudent and feasible tax planning strategies in our analysis. Based on the available evidence, valuation allowances in certain U.S. and non-U.S. jurisdictions remain consistent as of June 30, 2024. Our income tax expense (including discrete items) was $26 million and $44 million for the three and six months ended June 30, 2024, respectively, and $15 million and $14 million for the three and six months ended June 30, 2023, respectively. For the three months ended June 30, 2024, our effective tax rate differs from the U.S. statutory rate of 21% primarily as a result of tax benefits related to equity compensation. In all periods, we recorded tax expense relative to pre-tax earnings in jurisdictions without valuation allowances. During the second quarter of 2024, the Company was notified by the Internal Revenue Service that the Company’s U.S. federal income tax returns for tax years 2021 and 2022 will be subject to examination. |
Leases and Other Commitments
Leases and Other Commitments | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Our total operating lease expense for the three and six months ended June 30, 2024 was $6 million and $12 million, respectively, and $5 million and $11 million for the three and six months ended June 30, 2023, respectively. The total amount of variable and short-term lease payments was immaterial for all periods presented. Supplemental balance sheet and cash flow information related to operating leases is as follows: As of June 30, 2024 December 31, 2023 Operating lease right-of-use assets $ 45 $ 52 Accrued liabilities 18 19 Operating lease liabilities 31 39 Total operating lease liabilities $ 49 $ 58 Weighted average remaining lease term, years 3 4 Weighted average discount rate 6 % 6 % Six Months Ended June 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 11 $ 10 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 2 $ — Lease liability maturities: Remainder of 2024 2025 2026 2027 2028 Thereafter Less Imputed Interest Total Operating leases $ 11 $ 18 $ 13 $ 8 $ 4 $ — $ (5) $ 49 As of June 30, 2024, we did not have material additional operating leases that have not yet commenced. |
Litigation
Litigation | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
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 $43 million and $12 million for all of our legal matters that were contingencies as of June 30, 2024 and December 31, 2023, respectively. 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 $13 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, LNWI, 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, LNWI and the other shareholders of Wintech of up to $5 million if certain levels of lottery sales were not achieved. In addition, LNWI delivered to Ecosalud a $4 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, LNWI 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. LNWI filed separate actions opposing each resolution with the Tribunal Contencioso of Cundinamarca in Colombia (the “Tribunal”), which upheld both resolutions. LNWI 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 LNWI 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 LNWI to enforce the liquidation resolution and recover the claimed damages. In May 2013, the Tribunal denied LNWI’s merit defenses to the collection proceeding and issued an order of payment of approximately 90 billion Colombian pesos, or approximately $30 million, plus default interest (potentially accrued since 1994 at a 12% statutory interest rate). LNWI 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, LNWI filed a motion for clarification of the Council of State’s ruling, which was denied on April 15, 2021. On April 22, 2021, LNWI filed a motion for reconsideration relating to that decision, which the Council of State denied on February 21, 2022. On May 24, 2022, the case was transferred from the Council of State to the Tribunal for further proceedings. On August 18, 2022, LNWI filed a constitutional challenge to the Council of State’s December 10, 2020 decision with that court, which was denied on October 7, 2022. On December 7, 2022, LNWI filed an appeal with the Council of State from the denial of the constitutional challenge, which was denied on May 24, 2023. On June 28, 2023, the Colombian Constitutional Court received the record of the constitutional appeal for further consideration, and on September 26, 2023, that court selected LNWI’s constitutional appeal for further consideration. On April 25, 2024, LNWI was notified that, by means of a decision dated April 5, 2024, a three-judge panel of the Colombian Constitutional Court denied LNWI’s constitutional appeal. On April 30, 2024, LNWI filed a motion to have that panel ruling declared null and void by the full Chamber of the Colombian Constitutional Court. LNWI 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. 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 L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. 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 the 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. The district court denied that motion for summary judgment on September 20, 2021. On January 13, 2023, the district court entered an order requiring, among other things, that the plaintiffs make a formal written settlement demand by January 20, 2023, that the defendants respond to that demand in writing by January 27, 2023, and that the parties file a status report by January 31, 2023 confirming that they have complied with the district court’s order. On January 31, 2023, the parties filed a joint status report confirming that they have complied with the district court’s order to make and respond to a formal written demand. Discovery closed on June 1, 2023. On June 30, 2023, the defendants filed a motion for summary judgment. On March 28, 2024, the court issued an order granting in part and denying in part defendants’ motion for summary judgment. On April 30, 2024, the court issued an order setting the matter for a jury trial starting on May 5, 2025. Due to the complexity of the plaintiffs’ claims, and the unpredictability of the outcome of the proceedings in the district court, or any appeal therefrom, we are unable at this time to estimate a range of reasonably possible losses, or any amount within such a range, above the amount we have recorded for this matter, which is the minimum amount of reasonably possible loss. 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 L&W, Bally Technologies, Inc. and LNW Gaming, Inc., 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 or, in the alternative, to compel arbitration of plaintiffs’ claims. 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. On August 27, 2021, the Nevada district court entered an order transferring the lawsuit to the United States District Court for the Northern District of Illinois. On May 19, 2022, the Illinois district court granted defendants’ motion to compel arbitration of plaintiffs’ individual claims; stayed all proceedings in the lawsuit pending resolution of the arbitral process; and accordingly dismissed all pending motions without prejudice as moot. 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 L&W, Bally Technologies, Inc. and LNW Gaming, Inc., 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 L&W, Bally Technologies, Inc. and LNW Gaming, Inc., 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. On May 19, 2022, the Illinois district court granted defendants’ motion to compel arbitration; stayed all proceedings in the lawsuit pending resolution of the arbitral process; and accordingly dismissed all pending motions without prejudice. On May 31, 2022, defendants filed a motion to lift the stay of the lawsuit for the limited purpose of amending the court’s May 19, 2022 order to confirm that plaintiff Alfred T. Giuliano must proceed to arbitration on an individual basis rather than a class-wide basis. On June 10, 2022, plaintiff Alfred T. Giuliano filed a notice of voluntary dismissal without prejudice, and the court therefore denied as moot defendants’ motion to lift the stay in an order entered on March 28, 2023. 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. In re Automatic Card Shufflers Litigation Matter On April 2, 2021, Casino Queen, Inc. and Casino Queen Marquette, Inc. filed a putative class action complaint in the United States District Court for the Northern District of Illinois against L&W, Bally Technologies, Inc. and LNW Gaming, Inc., 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 plaintiffs’ costs of suit, including attorneys’ fees, and the award of pre-judgment and post-judgment interest. On June 11, 2021, the defendants filed a motion to dismiss plaintiffs’ complaint, which the court denied on May 19, 2022. Discovery closed on December 1, 2023. On February 16, 2024, the defendants filed a motion for summary judgment, which is pending. Also on February 16, 2024, plaintiffs filed a motion for partial summary judgment and a motion for class certification, which are pending. 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. 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 L&W, Bally Technologies, Inc. and LNW Gaming, Inc., f/k/a Bally Gaming, Inc. (“Respondents”). 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. On October 29, 2021, the claimant filed a memorandum in support of class arbitration, which Respondents opposed on December 3, 2021. On February 8, 2022, the Arbitrator issued a clause construction award, finding that the arbitration could proceed on behalf of a class or classes. On February 11, 2022, Respondents filed a petition to vacate the award in the New York Supreme Court. The Court denied Respondents’ petition on August 9, 2022, and on August 16, 2022, Respondents appealed to the New York Appellate Division, First Department, which denied Respondents’ appeal on June 22, 2023. On April 15, 2022, Respondents filed a motion to dismiss the claimant’s complaint, which the Arbitrator denied on July 26, 2022. Discovery closed on December 1, 2023. On February 16, 2024, the respondents filed a motion for summary judgment, which is pending. Also on February 16, 2024, claimant filed a motion for partial summary judgment and a motion for class certification, which are pending. 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. Boorn Matter On September 15, 2022, plaintiff Hannelore Boorn filed a putative class action against L&W, SciPlay Corporation, and Appchi Media Ltd. in the Fayette Circuit Court of the Commonwealth of Kentucky. In her complaint, plaintiff sought to represent a putative class of all persons in Kentucky who, within the past five years, purchased and allegedly lost $5.00 or more worth of virtual coins, in a 24-hour period, playing SciPlay’s online social casino games. The complaint asserted claims for alleged violations of Kentucky’s “recovery of gambling losses” statute and for unjust enrichment, and sought unspecified money damages, the award of reasonable attorneys’ fees and costs, pre- and post-judgment interest, and injunctive and/or other declaratory relief. On October 18, 2022, defendants removed the action to the United States District Court for the Eastern District of Kentucky. On October 26, 2022, plaintiff filed a notice voluntarily dismissing the lawsuit without prejudice. On October 27, 2022, the district court entered an order dismissing the lawsuit. On November 17, 2022, claimant Hannelore Boorn filed an arbitration demand against respondents L&W, SciPlay Corporation, and Appchi Media Ltd. before the American Arbitration Association, pursuant to which she seeks declaratory judgments that (1) SciPlay’s online social casino games constitute gambling under Kentucky law, and (2) SciPlay’s terms of service are void under Kentucky law. On January 12, 2023, respondents filed their answering statement to plaintiff’s arbitration demand. On February 2, 2024, claimant filed a dispositive motion seeking a ruling that SciPlay’s terms of service are void under Kentucky law and that claimant’s claims are not arbitrable. On February 2, 2024, respondents filed a motion for summary disposition seeking dismissal of claimant’s claims. On May 30, 2024, the Arbitrators granted respondents’ dispositive motion, denied claimant’s dispositive motion, and dismissed claimant’s claims with prejudice. 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. Allah Beautiful Matter On December 19, 2022, claimant Prince Imanifest Allah Beautiful filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The demand asserts claims for alleged violations of New Jersey’s anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by New Jersey players of SciPlay’s online social casino games other than the claimant. On March 7, 2023, respondent filed its answering statement to claimant’s arbitration demand. On March 4, 2024, respondent filed a motion to dismiss the claimant’s arbitration demand, which the Arbitrators denied on April 24, 2024. An evidentiary hearing is scheduled for October 21-23, 2024. 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. Sprinkle Matter On December 12, 2022, claimant Matthew Sprinkle filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The demand asserts claims for alleged violations of Ohio’s anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Ohio players of SciPlay’s online social casino games other than the claimant. On March 7, 2023, respondent filed its answering statement to claimant’s arbitration demand. On March 4, 2024, respondent filed a motion to dismiss the claimant’s arbitration demand, which the Arbitrators denied on April 24, 2024. An evidentiary hearing is scheduled for October 21-23, 2024. 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. Sornberger Matter On March 8, 2023, plaintiff Andrea Sornberger filed a complaint against SciPlay Corporation and SciPlay Games, LLC in the Circuit Court of the Franklin County, Alabama. The complaint asserts claims for alleged violations of Alabama anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Alabama players of SciPlay’s online social casino games other than the plaintiff, the award of interests and costs, and injunctive and other relief. On April 12, 2023, defendants removed the action to the United States District Court for the Northern District of Alabama. On August 24, 2023, plaintiff voluntarily dismissed her complaint without prejudice, and re-filed it in the Circuit Court of Franklin County, Alabama. On September 27, 2023, defendants removed the re-filed action to the United States District Court for the Northern District of Alabama. On October 26, 2023, plaintiff filed a motion to remand the action to the Circuit Court of Franklin County, Alabama, which is pending. 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. Roberts Matter On July 25, 2023, claimant Donovan Roberts filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The demand asserts claims for alleged violations of Kentucky’s anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Kentucky players of SciPlay’s online social casino games other than the claimant. On October 6, 2023, respondent filed its answering statement to claimant’s arbitration demand. On May 30, 2024, respondent filed a motion to dismiss the claimant’s arbitration demand, which is pending. 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. Ebersole Matter On July 25, 2023, claimant Christopher Ebersole filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The demand asserts claims for alleged violations of Ohio’s anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Ohio players of SciPlay’s online social casino games other than the claimant. On October 12, 2023, respondent filed its answering statement to claimant’s arbitration demand. On April 1, 2024, respondent filed a motion to dismiss the claimant’s arbitration demand, which the Arbitrators denied on May 16, 2024. 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. Murnaghan Matter On July 25, 2023, claimant Hope Murnaghan filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The demand asserts claims for alleged violations of Massachusetts’ anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Massachusetts players of SciPlay’s online social casino games other than the claimant. On October 12, 2023, respondent filed its answering statement to claimant’s arbitration demand. On April 1, 2024, respondent filed a motion to dismiss the claimant’s arbitration demand, which the Arbitrators denied on May 16, 2024. 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. Ewing Matter On November 31, 2023, plaintiff Lauren Ewing filed a lawsuit against SciPlay Corporation and SciPlay Games LLC in the Circuit Court for the 14th Judicial District of Tennessee. The complaint asserts claims for alleged violations of Tennessee’s anti-gambling statutes and seeks unspecified money damages, including recover of monies allegedly lost by Tennessee players of SciPlay’s online social casino games. On December 15, 2023, defendants removed the action to the United States District Court for the Eastern District of Tennessee. On January 12, 2024, plaintiff filed a motion to remand the action to the Circuit Court for the 14th Judicial District of Tennessee, which is pending. On January 22, 2024, defendants filed a motion to dismiss plaintiff’s complaint and a motion to compel arbitration of plaintiff’s claims, which are pending. 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. Aristocrat Matter On February 26, 2024, Aristocrat Technologies, Inc. and Aristocrat Technologies Australia Pty Limited brought a civil action in the United States District Court for the District of Nevada against L&W, LNW Gaming, Inc. and SciPlay Corporation. Plaintiffs assert claims for alleged trade secret misappropriation, copyright infringement, trade dress infringement and unfair competition, and deceptive trade practices, relating to defendants’ DRAGON TRAIN TM and JEWEL OF THE DRAGON® games. Plaintiffs’ complaint seeks preliminary and permanent injunctive relief, unspecified damages, the award of reasonable attorneys’ fees and costs, pre-judgment and post-judgment interest, and declaratory relief. Simultaneously with the filing of the complaint on February 26, 2024, the plai |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 82 | $ (1) | $ 164 | $ 21 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Description of the Business a_2
Description of the Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of L&W, its wholly owned subsidiaries, and those subsidiaries in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of L&W and its management, we have made all adjustments necessary to present fairly our consolidated financial position, results of operations, comprehensive income and cash flows for the periods presented. Such adjustments are of a normal, recurring nature. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2023 10-K. Interim results of operations are not necessarily indicative of results of operations to be expected for a full year. |
Significant Accounting Policies | Significant Accounting Policies There have been no changes to our significant accounting policies described within the Notes of our 2023 10-K. |
Other Income (Expense), net | Other Income (Expense), net |
Earnings Per Share | Computation of Basic and Diluted Net Income (Loss) Attributable to L&W Per Share Basic and diluted net income (loss) attributable to L&W per share are based upon net income (loss) attributable to L&W divided by the weighted average number of common shares outstanding during the period. Diluted net income attributable to L&W per share reflects the effect of the assumed exercise of stock options and RSUs only in the periods in which such effect would have been dilutive to net income. |
New Accounting Guidance | New Accounting Guidance There have been no recent accounting pronouncements or changes in accounting pronouncements since those described within the Notes of our 2023 10-K that are expected to have a material impact on our consolidated financial statements. |
Revenue Recognition (Policies)
Revenue Recognition (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | 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. |
Business Segments (Policies)
Business Segments (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting, Policy | We report our operations in three business segments—Gaming, SciPlay and iGaming—representing our different products and services. A detailed discussion regarding the products and services from which each reportable business segment derives its revenue is included in Notes 3 and 4 in our 2023 10-K. In evaluating financial performance, our Chief Operating Decision Maker (defined as our Chief Executive Officer) focuses on AEBITDA as management’s primary segment measure of profit or loss, which is described in footnote (2) to the |
Income Taxes (Policies)
Income Taxes (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Tax, Policy | We consider new evidence (both positive and negative) at each reporting date that could affect our view of the future realization of deferred tax assets. We evaluate information such as historical financial results, historical taxable income, projected future taxable income, expected timing of the reversals of existing temporary differences and available prudent and feasible tax planning strategies in our analysis. Based on the available evidence, valuation allowances in certain U.S. and non-U.S. jurisdictions remain consistent as of June 30, 2024. |
Litigation (Policies)
Litigation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies, Policy | 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 $43 million and $12 million for all of our legal matters that were contingencies as of June 30, 2024 and December 31, 2023, respectively. 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 $13 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. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following table disaggregates our revenues by type within each of our business segments: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Gaming Gaming operations $ 175 $ 167 $ 340 $ 327 Gaming machine sales 228 173 433 331 Gaming systems 82 72 142 127 Table products 54 59 101 105 Total $ 539 $ 471 $ 1,016 $ 890 SciPlay Mobile in-app purchases $ 160 $ 170 $ 330 $ 335 Web in-app purchases and other (1) 45 20 81 41 Total $ 205 $ 190 $ 411 $ 376 iGaming $ 74 $ 70 $ 148 $ 134 (1) Other represents $24 million and $36 million in revenue generated via our proprietary direct-to-consumer platform for the three and six months ended June 30, 2024, respectively, along with advertising and other revenue, which were not material for the periods presented. |
Contract with Customer, Contract Asset, Contract Liability, and Receivable | The following table summarizes the activity in our contract liabilities for the reporting period: Six Months Ended June 30, 2024 Contract liability balance, beginning of period (1) $ 27 Liabilities recognized during the period 14 Amounts recognized in revenue from beginning balance (16) Contract liability balance, end of period (1) $ 25 (1) Contract liabilities are included within Accrued liabilities and Other long-term liabilities in our consolidated balance sheets. Receivables Contract Assets (1) Beginning of period balance $ 543 $ 24 End of period balance, June 30, 2024 635 26 (1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets. |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Operating Information by Segment | The following tables present our segment information: Three Months Ended June 30, 2024 Gaming SciPlay iGaming Unallocated and Reconciling Items (1) Total Total revenue $ 539 $ 205 $ 74 $ — $ 818 AEBITDA (2) 272 70 24 (36) $ 330 Reconciling items to net income before income taxes: D&A (63) (6) (13) (5) (87) Restructuring and other (1) — 1 (34) (34) Interest expense (75) (75) Other income, net 5 5 Stock-based compensation (31) (31) Net income before income taxes $ 108 (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes. (2) AEBITDA is reconciled to net income before income taxes with the following adjustments, as applicable: (1) depreciation and amortization expense and impairment charges (including goodwill impairments); (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- and disposition-related costs and other unusual items; (3) interest expense; (4) gain (loss) on debt refinancing transactions; (5) change in fair value of investments and remeasurement of debt and other; (6) other income (expense), net, including foreign currency gains or losses and earnings from equity investments; and (7) stock-based compensation. AEBITDA is presented as our primary segment measure of profit or loss. Three Months Ended June 30, 2023 Gaming SciPlay iGaming Unallocated and Reconciling Items (1) Total Total revenue $ 471 $ 190 $ 70 $ — $ 731 AEBITDA (2) 233 59 24 (35) $ 281 Reconciling items to net income before income taxes: D&A (79) (11) (12) (6) (108) Restructuring and other (3) (2) (9) (17) (31) Interest expense (78) (78) Other expense, net (16) (16) Stock-based compensation (28) (28) Net income before income taxes $ 20 (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes. (2) AEBITDA is described in footnote (2) to the first table in this Note 3. Six Months Ended June 30, 2024 Gaming SciPlay iGaming Unallocated and Reconciling Items (1) Total Total revenue $ 1,016 $ 411 $ 148 $ — $ 1,575 AEBITDA (2) 504 132 48 (74) $ 610 Reconciling items to net income before income taxes: D&A (123) (13) (26) (11) (173) Restructuring and other (1) — (2) (37) (40) Interest expense (150) (150) Other income, net 14 14 Stock-based compensation (53) (53) Net income before income taxes $ 208 (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes. (2) AEBITDA is described in footnote (2) to the first table in this Note 3. Six Months Ended June 30, 2023 Gaming SciPlay iGaming Unallocated and Reconciling Items (1) Total Total revenue $ 890 $ 376 $ 134 $ — $ 1,400 AEBITDA (2) 438 113 47 (69) $ 529 Reconciling items to net income before income taxes: D&A (156) (17) (24) (11) (208) Restructuring and other (11) (3) (10) (26) (50) Interest expense (153) (153) Other expense, net (18) (18) Stock-based compensation (54) (54) Net income before income taxes $ 46 (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes. (2) AEBITDA is described in footnote (2) to the first table in this Note 3. |
Restructuring and Other (Tables
Restructuring and Other (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Employee severance and related $ — $ 4 $ 1 $ 13 Legal and related 32 — 32 — Strategic review and related (1) — 14 1 18 Contingent acquisition consideration (2) (1) 9 — 9 Restructuring, integration and other 3 4 6 10 Total $ 34 $ 31 $ 40 $ 50 (1) Includes costs associated with the SciPlay merger, ASX listing, sale of discontinued operations (including ongoing separation activities), rebranding and related activities. Refer to the Notes in our 2023 10-K for more information regarding these activities. (2) Represents contingent consideration fair value adjustments (see Note 11). |
Accounts Receivable and Notes_2
Accounts Receivable and Notes Receivable and Credit Quality of Receivables (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 December 31, 2023 Current: Receivables $ 612 $ 544 Allowance for credit losses (37) (38) Current receivables, net 575 506 Long-term: Receivables 67 40 Allowance for credit losses (7) (3) Long-term receivables, net 60 37 Total receivables, net $ 635 $ 543 |
Summary of the components of total notes receivable, net | The following table summarizes geographical delinquencies of total receivables, net: As of June 30, 2024 Balances over 90 days past due December 31, 2023 Balances over 90 days past due Receivables: U.S. and Canada $ 354 $ 4 $ 344 $ 13 International 325 42 240 50 Total receivables 679 46 584 63 Receivables allowance: U.S. and Canada (19) (4) (17) (3) International (25) (12) (24) (12) Total receivables allowance (44) (16) (41) (15) Receivables, net $ 635 $ 30 $ 543 $ 48 |
Schedule of activity in allowance for notes receivable | The activity in our allowance for receivable credit losses for each of the three and six months ended June 30, 2024 and 2023 is as follows: 2024 2023 Total U.S. and Canada International Total Beginning allowance for credit losses $ (41) $ (17) $ (24) $ (40) Provision (1) — (1) (1) Charge-offs and recoveries 2 1 1 1 Allowance for credit losses as of March 31 $ (40) $ (16) $ (24) $ (40) Provision (6) (3) (3) (4) Charge-offs and recoveries 2 — 2 2 Allowance for credit losses as of June 30 $ (44) $ (19) $ (25) $ (42) |
Schedule of receivables by location - Latin America | The following table summarizes our LATAM receivables: As of June 30, 2024 Total Current Balances over 90 days past due Receivables $ 59 $ 45 $ 14 Allowance for credit losses (18) (11) (7) Receivables, net $ 41 $ 34 $ 7 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: As of June 30, 2024 December 31, 2023 Parts and work-in-process $ 120 $ 113 Finished goods 66 64 Total inventories $ 186 $ 177 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of components of property plant and equipment | Property and equipment, net consisted of the following: As of June 30, 2024 December 31, 2023 Land $ 6 $ 6 Buildings and leasehold improvements 61 59 Gaming machinery and equipment 764 718 Furniture and fixtures 28 26 Construction in progress 12 7 Other property and equipment 99 94 Less: accumulated depreciation (701) (674) Total property and equipment, net $ 269 $ 236 Depreciation expense is excluded from cost of services, cost of products and other operating expenses and is separately presented within D&A. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Depreciation expense $ 32 $ 30 $ 63 $ 57 |
Intangible Assets, net and Go_2
Intangible Assets, net and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following tables present certain information regarding our intangible assets as of June 30, 2024 and December 31, 2023. As of June 30, 2024 December 31, 2023 Gross Carrying Accumulated Net Balance Gross Carrying Accumulated Net Balance Amortizable intangible assets: Customer relationships $ 902 $ (597) $ 305 $ 904 $ (567) $ 337 Intellectual property 940 (791) 149 947 (771) 176 Licenses 291 (230) 61 290 (217) 73 Brand names 130 (124) 6 129 (120) 9 Trade names 163 (159) 4 163 (157) 6 Patents and other 11 (7) 4 11 (7) 4 Total intangible assets $ 2,437 $ (1,908) $ 529 $ 2,444 $ (1,839) $ 605 |
Schedule of Intangible Asset Amortization Expense | The following reflects intangible amortization expense included within D&A: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Amortization expense (1) $ 38 $ 61 $ 75 $ 119 (1) The three and six months ended June 30, 2023 include intangible assets non-cash impairment charge of $4 million related to SciPlay restructuring of a certain foreign studio. The following reflects amortization of software included within D&A: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Amortization expense $ 17 $ 17 $ 35 $ 32 |
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, 2023 to June 30, 2024. Gaming (1) SciPlay iGaming Totals Balance as of December 31, 2023 $ 2,388 $ 210 $ 347 $ 2,945 Foreign currency adjustments (8) (2) (10) (20) Balance as of June 30, 2024 $ 2,380 $ 208 $ 337 $ 2,925 (1) Accumulated goodwill impairment charges for the Gaming segment as of June 30, 2024 were $989 million. |
Software, net (Tables)
Software, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Research and Development [Abstract] | |
Schedule of Capitalized Computer Software | Software, net consisted of the following: As of June 30, 2024 December 31, 2023 Software $ 1,109 $ 1,083 Accumulated amortization (947) (925) Software, net $ 162 $ 158 |
Schedule of Software Amortization Expense | The following reflects intangible amortization expense included within D&A: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Amortization expense (1) $ 38 $ 61 $ 75 $ 119 (1) The three and six months ended June 30, 2023 include intangible assets non-cash impairment charge of $4 million related to SciPlay restructuring of a certain foreign studio. The following reflects amortization of software included within D&A: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Amortization expense $ 17 $ 17 $ 35 $ 32 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of debt outstanding | The following table reflects our outstanding debt (in order of priority and maturity): As of June 30, 2024 December 31, 2023 Final Maturity Rate(s) Face Value Unamortized debt discount/premium and deferred financing costs, net Book Value Book Value Senior Secured Credit Facilities: LNWI Revolver 2027 variable $ — $ — $ — $ — LNWI Term Loan B 2029 variable 2,162 (25) 2,137 2,141 LNWI Senior Notes: 2028 Unsecured Notes 2028 7.000% 700 (6) 694 694 2029 Unsecured Notes 2029 7.250% 500 (5) 495 495 2031 Unsecured Notes 2031 7.500% 550 (7) 543 543 Other — — 2 — 2 1 Total long-term debt outstanding $ 3,914 $ (43) $ 3,871 $ 3,874 Less: current portion of long-term debt (22) (22) Long-term debt, excluding current portion $ 3,849 $ 3,852 Fair value of debt (1) $ 3,940 (1) 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. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Gains on Interest Rate Swaps | The following table shows the gain and interest income on our interest rate swap contracts: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Gain recorded in accumulated other comprehensive loss, net of tax $ — $ 10 $ 6 $ 3 Interest income related to interest rate swap contracts recorded in interest expense 5 4 9 7 |
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 interest expense in the consolidated statements of income: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Total interest expense which reflects the effects of cash flow hedges $ (75) $ (78) $ (150) $ (153) Hedged item (5) (5) (10) (10) Derivative designated as hedging instrument 10 9 19 17 |
Schedule of Assets Measured at Fair Value on a Recurring Basis | The following table shows the fair value of our hedges: As of Balance Sheet Line Item June 30, 2024 December 31, 2023 Interest rate swaps Other assets $ 28 $ 20 |
Schedule of Changes in Contingent Acquisition Consideration Liabilities | The table below reconciles the change in the contingent acquisition consideration liabilities (including deferred purchase price) for the period from December 31, 2023 to June 30, 2024. Total Included in Accrued Liabilities Included in Other Long-Term Liabilities Balance as of December 31, 2023 $ 59 $ 39 $ 20 Payments (37) Fair value adjustments — Other adjustments (1) (5) Balance as of June 30, 2024 $ 17 $ 10 $ 7 (1) Represents extinguishment of $5 million in redeemable non-controlling interest liability associated with SciPlay’s acquisition of Alictus Yazilim Anonim Şirketi in 2022, as specified financial targets for the second year were not met. The gain was recorded in other income (expense), net in our consolidated statements of income. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Statements of Changes in Stockholders' Equity | The following tables present certain information regarding our stockholders’ equity as of June 30, 2024 and 2023: Six Months Ended June 30, 2024 Common Stock Additional Paid in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Total January 1, 2024 $ 1 $ 1,118 $ 680 $ (751) $ (283) $ 765 Settlement of liability awards — 65 — — — 65 Vesting of RSUs, net of tax withholdings and other — (43) — — — (43) Purchase of treasury stock — — — (25) — (25) Stock-based compensation — 14 — — — 14 Net income — — 82 — — 82 Other comprehensive loss — — — — (23) (23) March 31, 2024 $ 1 $ 1,154 $ 762 $ (776) $ (306) $ 835 Vesting of RSUs, net of tax withholdings and other — 1 — — — 1 Purchase of treasury stock — — — (151) — (151) Stock-based compensation — 20 — — — 20 Net income — — 82 — — 82 Other comprehensive income — — — — (1) (1) June 30, 2024 $ 1 $ 1,175 $ 844 $ (927) $ (307) $ 786 Six Months Ended June 30, 2023 Common Stock Additional Paid in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Noncontrolling Interest Total January 1, 2023 $ 1 $ 1,370 $ 517 $ (580) $ (318) $ 171 $ 1,161 Settlement of liability awards — 25 — — — — 25 Vesting of RSUs, net of tax withholdings and other — (14) — — — — (14) Purchase of treasury stock — — — (28) — — (28) Purchase of SciPlay’s Class A common stock — (8) — — — — (8) Stock-based compensation — 15 — — — — 15 Net income — — 22 — — 5 27 Other comprehensive income — — — — 6 — 6 March 31, 2023 $ 1 $ 1,388 $ 539 $ (608) $ (312) $ 176 $ 1,184 Vesting of RSUs, net of tax withholdings and other — 1 — — — — 1 Purchase of treasury stock — — — (5) — — (5) Purchase of SciPlay’s Class A common stock — (15) — — — — (15) Stock-based compensation — 13 — — — — 13 Net (loss) income — — (1) — — 6 5 Other comprehensive income — — — — 47 — 47 June 30, 2023 $ 1 $ 1,387 $ 538 $ (613) $ (265) $ 182 $ 1,230 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following reflects total stock-based compensation expense recognized under all programs: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Related to L&W RSUs $ 31 $ 21 $ 53 $ 40 Related to SciPlay RSUs — 7 — 14 Total (1) $ 31 $ 28 $ 53 $ 54 (1) Includes $11 million and $19 million of stock-based compensation classified as liability awards for the three and six months ended June 30, 2024, respectively, and $15 million and $26 million for the three and six months ended June 30, 2023, respectively. |
RSUs Outstanding Under Equity-based Compensation Plans | A summary of the changes in RSUs outstanding under our equity-based compensation plans during the six months ended June 30, 2024 is presented below: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Unvested RSUs as of December 31, 2023 2.3 $ 55.53 Granted 1.4 $ 99.57 Vested (1.3) $ 72.70 Cancelled (0.1) $ 56.12 Unvested RSUs as of June 30, 2024 2.3 $ 71.90 |
Leases and Other Commitments (T
Leases and Other Commitments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Supplemental balance sheet and cash flow information related to operating leases | Supplemental balance sheet and cash flow information related to operating leases is as follows: As of June 30, 2024 December 31, 2023 Operating lease right-of-use assets $ 45 $ 52 Accrued liabilities 18 19 Operating lease liabilities 31 39 Total operating lease liabilities $ 49 $ 58 Weighted average remaining lease term, years 3 4 Weighted average discount rate 6 % 6 % Six Months Ended June 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 11 $ 10 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 2 $ — |
Future minimum lease payments required under our leasing arrangements | Lease liability maturities: Remainder of 2024 2025 2026 2027 2028 Thereafter Less Imputed Interest Total Operating leases $ 11 $ 18 $ 13 $ 8 $ 4 $ — $ (5) $ 49 |
Description of the Business a_3
Description of the Business and Summary of Significant Accounting Policies - Narrative (Details) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) shares | Jun. 30, 2023 USD ($) shares | Jun. 30, 2024 USD ($) Segment shares | Jun. 30, 2023 USD ($) shares | |
Accounting Policies [Abstract] | ||||
Number of reportable segments | Segment | 3 | |||
Interest Income, Other | $ | $ 5 | $ 10 | ||
Gain (Loss), Foreign Currency Transaction, before Tax | $ | $ (25) | $ (38) | ||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements (in shares) | 2 | 2 | 2 | |
Employee Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 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) | 2 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenue by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 818 | $ 731 | $ 1,575 | $ 1,400 | |
Gaming | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 539 | 471 | 1,016 | 890 | |
SciPlay | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 205 | 190 | 411 | 376 | |
iGaming | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 74 | 70 | 148 | 134 | |
Gaming operations | Gaming | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 175 | 167 | 340 | 327 | |
Gaming machine sales | Gaming | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 228 | 173 | 433 | 331 | |
Gaming systems | Gaming | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 82 | 72 | 142 | 127 | |
Table products | Gaming | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 54 | 59 | 101 | 105 | |
Mobile in-app purchases | SciPlay | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 160 | 170 | 330 | 335 | |
Web in-app purchases and other(1) | SciPlay | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | [1] | 45 | $ 20 | 81 | $ 41 |
Proprietary Platform Revenue | SciPlay | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 24 | $ 36 | |||
[1] (1) Other represents $24 million and $36 million in revenue generated via our proprietary direct-to-consumer platform for the three and six months ended June 30, 2024, respectively, along with advertising and other revenue, which were not material for the periods presented. |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | ||||
Operating Lease, Lease Income | $ 136 | $ 123 | $ 263 | $ 240 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Contract Liabilities (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 USD ($) | ||
Change In Contract Liabilities [Roll Forward] | ||
Contract liability balance, beginning of period(1) | $ 27 | [1] |
Liabilities recognized during the period | 14 | |
Amounts recognized in revenue from beginning balance | (16) | |
Contract liability balance, end of period(1) | $ 25 | [1] |
[1] (1) Contract liabilities are included within Accrued liabilities and Other long-term liabilities in our consolidated balance sheets. |
Revenue Recognition - Opening a
Revenue Recognition - Opening and Closing Balances (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||
Receivables | $ 635 | $ 543 | |
Contract Assets(1) | [1] | $ 26 | $ 24 |
[1] (1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets. |
Business Segments - Additional
Business Segments - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2024 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segments - Reportable
Business Segments - Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | $ 818 | $ 731 | $ 1,575 | $ 1,400 | ||||
AEBITDA | 330 | [1] | 281 | [2] | 610 | [3] | 529 | [4] |
D&A | (87) | (108) | (173) | (208) | ||||
Restructuring and other | (34) | (31) | (40) | (50) | ||||
Interest expense | (75) | (78) | (150) | (153) | ||||
Other income (expense), net | 5 | (16) | 14 | (18) | ||||
Stock-based compensation | (31) | (28) | (53) | (54) | ||||
Net income before income taxes | 108 | 20 | 208 | 46 | ||||
Gaming | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 539 | 471 | 1,016 | 890 | ||||
SciPlay | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 205 | 190 | 411 | 376 | ||||
Operating Segments | Gaming | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 539 | 471 | 1,016 | 890 | ||||
AEBITDA | 272 | [1] | 233 | [2] | 504 | [3] | 438 | [4] |
D&A | (63) | (79) | (123) | (156) | ||||
Restructuring and other | (1) | (3) | (1) | (11) | ||||
Operating Segments | SciPlay | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 205 | 190 | 411 | 376 | ||||
AEBITDA | 70 | [1] | 59 | [2] | 132 | [3] | 113 | [4] |
D&A | (6) | (11) | (13) | (17) | ||||
Restructuring and other | 0 | (2) | 0 | (3) | ||||
Operating Segments | iGaming | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 74 | 70 | 148 | 134 | ||||
AEBITDA | 24 | [1] | 24 | [2] | 48 | [3] | 47 | [4] |
D&A | (13) | (12) | (26) | (24) | ||||
Restructuring and other | 1 | (9) | (2) | (10) | ||||
Unallocated and Reconciling Items | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 0 | [5] | 0 | [6] | 0 | [7] | 0 | [8] |
AEBITDA | (36) | [1],[5] | (35) | [2],[6] | (74) | [3],[7] | (69) | [4],[8] |
D&A | (5) | [5] | (6) | [6] | (11) | [7] | (11) | [8] |
Restructuring and other | (34) | [5] | (17) | [6] | (37) | [7] | (26) | [8] |
Interest expense | (75) | [5] | (78) | [6] | (150) | [7] | (153) | [8] |
Other income (expense), net | 5 | [5] | (16) | [6] | 14 | [7] | (18) | [8] |
Stock-based compensation | $ (31) | [5] | $ (28) | [6] | $ (53) | [7] | $ (54) | [8] |
[1] (2) AEBITDA is reconciled to net income before income taxes with the following adjustments, as applicable: (1) depreciation and amortization expense and impairment charges (including goodwill impairments); (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- and disposition-related costs and other unusual items; (3) interest expense; (4) gain (loss) on debt refinancing transactions; (5) change in fair value of investments and remeasurement of debt and other; (6) other income (expense), net, including foreign currency gains or losses and earnings from equity investments; and (7) stock-based compensation. AEBITDA is presented as our primary segment measure of profit or loss. (2) AEBITDA is described in footnote (2) to the first table in this Note 3. (2) AEBITDA is described in footnote (2) to the first table in this Note 3. (2) AEBITDA is described in footnote (2) to the first table in this Note 3. (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes. (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes. (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes. (1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net income before income taxes. |
Restructuring and Other (Detail
Restructuring and Other (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other | $ 34 | $ 31 | $ 40 | $ 50 | |
Employee severance and related | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other | 0 | 4 | 1 | 13 | |
Legal and related | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other | 32 | 0 | 32 | 0 | |
Strategic review and related(1) | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other | [1] | 0 | 14 | 1 | 18 |
Contingent acquisition consideration(2) | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other | [2] | (1) | 9 | 0 | 9 |
Restructuring, integration and other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other | $ 3 | $ 4 | $ 6 | $ 10 | |
[1] (1) Includes costs associated with the SciPlay merger, ASX listing, sale of discontinued operations (including ongoing separation activities), rebranding and related activities. Refer to the Notes in our 2023 10-K for more information regarding these activities. (2) Represents contingent consideration fair value adjustments (see Note 11). |
Accounts Receivable and Notes_3
Accounts Receivable and Notes Receivable and Credit Quality of Receivables - Components of Accounts and Notes Receivable (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current: | ||
Receivables | $ 612 | $ 544 |
Allowance for credit losses | (37) | (38) |
Current receivables, net | 575 | 506 |
Long-term: | ||
Receivables | 67 | 40 |
Allowance for credit losses | (7) | (3) |
Long-term receivables, net | 60 | 37 |
Total receivables, net | $ 635 | $ 543 |
Accounts Receivable and Notes_4
Accounts Receivable and Notes Receivable and Credit Quality of Receivables - Components of Total Notes Receivable, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Receivables, net | ||||||
Receivables | $ 67 | $ 40 | ||||
Notes receivable allowance for doubtful accounts | (44) | $ (40) | $ (42) | $ (40) | (41) | $ (40) |
Accounts and notes receivable, net | 635 | 543 | ||||
Provision for Loan, Lease, and Other Losses | (6) | (1) | (4) | (1) | ||
Charge-offs and recoveries | 2 | 2 | $ 2 | $ 1 | ||
Notes Receivable | ||||||
Receivables, net | ||||||
Receivables | 679 | 584 | ||||
Notes receivable allowance for doubtful accounts | (44) | (41) | ||||
Accounts and notes receivable, net | 635 | 543 | ||||
United States and Canada | ||||||
Receivables, net | ||||||
Notes receivable allowance for doubtful accounts | (19) | (16) | (17) | |||
Provision for Loan, Lease, and Other Losses | (3) | 0 | ||||
Charge-offs and recoveries | 0 | 1 | ||||
United States and Canada | Notes Receivable | ||||||
Receivables, net | ||||||
Receivables | 354 | 344 | ||||
Notes receivable allowance for doubtful accounts | (19) | (17) | ||||
International | ||||||
Receivables, net | ||||||
Notes receivable allowance for doubtful accounts | (25) | (24) | (24) | |||
Provision for Loan, Lease, and Other Losses | (3) | (1) | ||||
Charge-offs and recoveries | 2 | $ 1 | ||||
International | Notes Receivable | ||||||
Receivables, net | ||||||
Receivables | 325 | 240 | ||||
Notes receivable allowance for doubtful accounts | (25) | (24) | ||||
Balances over 90 days past due | Notes Receivable | ||||||
Receivables, net | ||||||
Receivables | 46 | 63 | ||||
Notes receivable allowance for doubtful accounts, balances over 90 days past due | (16) | (15) | ||||
Notes receivable, net, balances over 90 days past due | 30 | 48 | ||||
Balances over 90 days past due | United States and Canada | Notes Receivable | ||||||
Receivables, net | ||||||
Receivables | 4 | 13 | ||||
Notes receivable allowance for doubtful accounts, balances over 90 days past due | (4) | (3) | ||||
Balances over 90 days past due | International | Notes Receivable | ||||||
Receivables, net | ||||||
Receivables | 42 | 50 | ||||
Notes receivable allowance for doubtful accounts, balances over 90 days past due | $ (12) | $ (12) |
Accounts Receivable and Notes_5
Accounts Receivable and Notes Receivable and Credit Quality of Receivables - Allowance for Notes Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for credit losses, beginning of period | $ (40) | $ (41) | $ (40) | $ (40) | |
Provision for Loan, Lease, and Other Losses | (6) | (1) | (4) | (1) | |
Charge-offs and recoveries | 2 | 2 | 2 | 1 | |
Allowance for credit losses, end of period | $ (44) | (40) | $ (42) | $ (40) | |
Balances over 90 days past due | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Financing Receivable, Percent Past Due | 5% | 9% | |||
United States and Canada | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for credit losses, beginning of period | $ (16) | (17) | |||
Provision for Loan, Lease, and Other Losses | (3) | 0 | |||
Charge-offs and recoveries | 0 | 1 | |||
Allowance for credit losses, end of period | (19) | (16) | |||
International | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for credit losses, beginning of period | (24) | (24) | |||
Provision for Loan, Lease, and Other Losses | (3) | (1) | |||
Charge-offs and recoveries | 2 | 1 | |||
Allowance for credit losses, end of period | $ (25) | $ (24) |
Accounts Receivable and Notes_6
Accounts Receivable and Notes Receivable and Credit Quality of Receivables - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Net, Current | $ 575 | $ 506 |
Latin America [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, before Allowance for Credit Loss | 59 | |
Accounts Receivable, Allowance for Credit Loss | (18) | |
Accounts Receivable, after Allowance for Credit Loss | 41 | |
Current | Latin America [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, before Allowance for Credit Loss | 45 | |
Accounts Receivable, Allowance for Credit Loss | (11) | |
Accounts Receivable, Net, Current | 34 | |
Balances over 90 days past due | Latin America [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, before Allowance for Credit Loss | 14 | |
Accounts Receivable, Allowance for Credit Loss | (7) | |
Accounts Receivable, Net, Current | $ 7 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Inventories | ||
Parts and work-in-process | $ 120 | $ 113 |
Finished goods | 66 | 64 |
Total inventories | $ 186 | $ 177 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Property, Plant and Equipment [Line Items] | |||||
Less: accumulated depreciation | $ (701) | $ (701) | $ (674) | ||
Total property and equipment, net | 269 | 269 | 236 | ||
Depreciation expense | 32 | $ 30 | 63 | $ 57 | |
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 6 | 6 | 6 | ||
Buildings and leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 61 | 61 | 59 | ||
Gaming machinery and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 764 | 764 | 718 | ||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 28 | 28 | 26 | ||
Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 12 | 12 | 7 | ||
Other property and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | $ 99 | $ 99 | $ 94 |
Intangible Assets, net and Go_3
Intangible Assets, net and Goodwill - Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 2,437 | $ 2,444 |
Accumulated Amortization | (1,908) | (1,839) |
Net Balance | 529 | 605 |
Customer relationships | ||
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 902 | 904 |
Accumulated Amortization | (597) | (567) |
Net Balance | 305 | 337 |
Intellectual property | ||
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 940 | 947 |
Accumulated Amortization | (791) | (771) |
Net Balance | 149 | 176 |
Licenses | ||
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 291 | 290 |
Accumulated Amortization | (230) | (217) |
Net Balance | 61 | 73 |
Brand names | ||
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 130 | 129 |
Accumulated Amortization | (124) | (120) |
Net Balance | 6 | 9 |
Trade names | ||
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 163 | 163 |
Accumulated Amortization | (159) | (157) |
Net Balance | 4 | 6 |
Patents and other | ||
Schedule of Finite Lived Intangible and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 11 | 11 |
Accumulated Amortization | (7) | (7) |
Net Balance | $ 4 | $ 4 |
Intangible Assets, net and Go_4
Intangible Assets, net and Goodwill - Intangible Asset Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Amortization expense(1) | $ 38 | $ 61 | [1] | $ 75 | $ 119 | [1] |
Noncash Intangible Asset Impairment Charge | $ 4 | $ 4 | ||||
[1] (1) The three and six months ended June 30, 2023 include intangible assets non-cash impairment charge of $4 million related to SciPlay restructuring of a certain foreign studio. |
Intangible Assets, net and Go_5
Intangible Assets, net and Goodwill - Goodwill (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 USD ($) | ||
Goodwill | ||
Balance at the beginning of the period | $ 2,945 | |
Foreign currency adjustments | (20) | |
Balance at the end of the period | 2,925 | |
Gaming | ||
Goodwill | ||
Balance at the beginning of the period | 2,388 | [1] |
Foreign currency adjustments | (8) | [1] |
Balance at the end of the period | 2,380 | [1] |
SciPlay | ||
Goodwill | ||
Balance at the beginning of the period | 210 | |
Foreign currency adjustments | (2) | |
Balance at the end of the period | 208 | |
iGaming | ||
Goodwill | ||
Balance at the beginning of the period | 347 | |
Foreign currency adjustments | (10) | |
Balance at the end of the period | 337 | |
Gaming Business Segment | ||
Goodwill | ||
Accumulated goodwill impairment charges | $ 989 | |
[1] (1) Accumulated goodwill impairment charges for the Gaming segment as of June 30, 2024 were $989 million. |
Software, net - Summary of Soft
Software, net - Summary of Software and Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Research and Development [Abstract] | |||||
Software | $ 1,109 | $ 1,109 | $ 1,083 | ||
Accumulated amortization | (947) | (947) | (925) | ||
Software, net | 162 | 162 | $ 158 | ||
Amortization expense | $ 17 | $ 17 | $ 35 | $ 32 |
Long-Term Debt - Outstanding De
Long-Term Debt - Outstanding Debt (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||
Face Value | $ 3,914 | ||
Unamortized debt discount/premium and deferred financing costs, net | (43) | ||
Book Value | 3,871 | $ 3,874 | |
Less: current portion of long-term debt | (22) | (22) | |
Long-term debt, excluding current portion | 3,849 | 3,852 | |
Fair value of debt | [1] | $ 3,940 | |
Senior Notes | 2028 Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Rate(s) | 7% | ||
Face Value | $ 700 | ||
Unamortized debt discount/premium and deferred financing costs, net | (6) | ||
Book Value | $ 694 | 694 | |
Senior Notes | 2029 Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Rate(s) | 7.25% | ||
Face Value | $ 500 | ||
Unamortized debt discount/premium and deferred financing costs, net | (5) | ||
Book Value | $ 495 | 495 | |
Senior Notes | 2031 Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Rate(s) | 7.50% | ||
Face Value | $ 550 | ||
Unamortized debt discount/premium and deferred financing costs, net | (7) | ||
Book Value | 543 | 543 | |
Capital Lease Obligations | Other | |||
Debt Instrument [Line Items] | |||
Face Value | 2 | ||
Unamortized debt discount/premium and deferred financing costs, net | 0 | ||
Book Value | 2 | 1 | |
Revolving Credit Facility | Secured Debt | LNWI Revolver | |||
Debt Instrument [Line Items] | |||
Face Value | 0 | ||
Unamortized debt discount/premium and deferred financing costs, net | 0 | ||
Book Value | 0 | 0 | |
Revolving Credit Facility | Secured Debt | LNWI Term Loan B | |||
Debt Instrument [Line Items] | |||
Face Value | 2,162 | ||
Unamortized debt discount/premium and deferred financing costs, net | (25) | ||
Book Value | $ 2,137 | $ 2,141 | |
[1] (1) 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. |
Long-Term Debt - Terms of Outst
Long-Term Debt - Terms of Outstanding Debt (Details) - Secured Debt - LNWI Term Loan B - Subsequent Event | Jul. 17, 2024 |
Adjusted Secured Overnight Financing Rate | |
Debt Instrument [Line Items] | |
Margin spread on debt | 2.25% |
Base Rate | |
Debt Instrument [Line Items] | |
Margin spread on debt | 1.25% |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Cash Flow Hedging - Designated as Hedging Instrument - Interest rate swap - USD ($) $ in Millions | Jun. 30, 2024 | Apr. 30, 2022 |
Derivatives Fair Value | ||
Derivative, average fixed interest rate | 2.832% | |
Notional amounts of the forward contracts | $ 700 | $ 700 |
Fair Value Measurements - Gains
Fair Value Measurements - Gains (Losses) on Interest Rate Swaps (Details) - Interest rate swap - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net income attributable to L&W | $ 0 | $ 10 | $ 6 | $ 3 |
Interest income related to interest rate swap contracts recorded in interest expense | $ 5 | $ 4 | $ 9 | $ 7 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | ||||
Interest expense | $ (75) | $ (78) | $ (150) | $ (153) |
Hedged item | (5) | (5) | (10) | (10) |
Derivative designated as hedging instrument | $ 10 | $ 9 | $ 19 | $ 17 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Hedges (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Other assets | Interest rate swap | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative fair value | $ 28 | $ 20 |
Fair Value Measurements - Conti
Fair Value Measurements - Contingent Acquisition Consideration (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2024 | Jun. 30, 2024 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Beginning balance | $ 59 | $ 59 | |
Payments | (37) | ||
Fair value adjustments | 0 | ||
Other adjustments(1) | (5) | (5) | [1] |
Ending balance | 17 | ||
Accrued liabilities | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Beginning balance | 39 | 39 | |
Ending balance | 10 | ||
Included in Other Long-Term Liabilities | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Beginning balance | $ 20 | 20 | |
Ending balance | $ 7 | ||
[1] (1) Represents extinguishment of $5 million in redeemable non-controlling interest liability associated with SciPlay’s acquisition of Alictus Yazilim Anonim Şirketi in 2022, as specified financial targets for the second year were not met. The gain was recorded in other income (expense), net in our consolidated statements of income. |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Common Stock (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Class of Stock [Line Items] | ||||||||
Total stockholders’ equity | $ 786 | $ 835 | $ 1,230 | $ 1,184 | $ 786 | $ 1,230 | $ 765 | $ 1,161 |
Adjustments to Additional Paid in Capital Settlement of Liability Awards and Other | 65 | 25 | ||||||
Redemption Premium | 1 | (43) | 1 | (14) | ||||
Treasury Stock, Value, Acquired, Cost Method | (151) | (25) | (5) | (28) | ||||
Stock Repurchased During Period, Value | (15) | (8) | ||||||
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | 20 | 14 | 13 | 15 | ||||
Net income | 82 | 82 | 5 | 27 | 164 | 32 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1) | (23) | 47 | 6 | ||||
Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Total stockholders’ equity | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
Additional Paid-in Capital [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Total stockholders’ equity | 1,175 | 1,154 | 1,387 | 1,388 | 1,175 | 1,387 | 1,118 | 1,370 |
Adjustments to Additional Paid in Capital Settlement of Liability Awards and Other | 65 | 25 | ||||||
Redemption Premium | 1 | (43) | 1 | (14) | ||||
Stock Repurchased During Period, Value | 15 | (8) | ||||||
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | 20 | 14 | 13 | 15 | ||||
Retained Earnings [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Total stockholders’ equity | 844 | 762 | 538 | 539 | 844 | 538 | 680 | 517 |
Net income | 82 | 82 | (1) | 22 | ||||
Treasury Stock, Common | ||||||||
Class of Stock [Line Items] | ||||||||
Total stockholders’ equity | (927) | (776) | (613) | (608) | (927) | (613) | (751) | (580) |
Treasury Stock, Value, Acquired, Cost Method | (151) | (25) | (5) | (28) | ||||
AOCI Attributable to Parent [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Total stockholders’ equity | (307) | (306) | (265) | (312) | $ (307) | (265) | $ (283) | (318) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ (1) | $ (23) | 47 | 6 | ||||
Noncontrolling Interest [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Total stockholders’ equity | 182 | 176 | $ 182 | $ 171 | ||||
Net income | $ 6 | $ 5 |
Stockholders' Equity - Stock Ba
Stockholders' Equity - Stock Based Compensation Expense Under All Programs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | [1] | $ 31 | $ 28 | $ 53 | $ 54 |
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | 31 | 21 | 53 | 40 | |
Restricted Stock Units | SciPlay | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | 0 | 7 | 0 | 14 | |
Liability Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | $ 11 | $ 15 | $ 19 | $ 26 | |
[1] (1) Includes $11 million and $19 million of stock-based compensation classified as liability awards for the three and six months ended June 30, 2024, respectively, and $15 million and $26 million for the three and six months ended June 30, 2023, respectively. |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Units (Details) - Restricted Stock Units - $ / shares shares in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Number of Restricted Stock Units (in shares) [Roll Forward] | ||
Unvested units outstanding at the beginning of the period (in shares) | 2.3 | |
Number of RSUs granted (in shares) | 1.4 | |
Number of RSUs vested (in shares) | (1.3) | |
Number of RSUs cancelled (in shares) | (0.1) | |
Unvested units outstanding at the end of the period (in shares) | 2.3 | |
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) | $ 55.53 | |
Fair value of RSUs granted (in usd per share) | 99.57 | $ 57.15 |
Fair value of RSUs vested (in usd per share) | 72.70 | |
Fair value of RSUs cancelled (in usd per share) | 56.12 | |
Weighted average grant date fair value of unvested units outstanding at the end of the period (in usd per share) | $ 71.90 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 11, 2024 | Feb. 25, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 151 | $ 25 | $ 5 | $ 28 | ||||
Share Repurchase Program, March 2022 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 750 | |||||||
Treasury Stock, Shares, Acquired | 1.8 | |||||||
Treasury Stock, Value, Acquired, Cost Method | $ 176 | |||||||
Share Repurchase Program, June 2024 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | |||||||
Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Fair value of RSUs granted (in usd per share) | $ 99.57 | $ 57.15 | ||||||
Unrecognized stock-based compensation expense relating to unvested awards that will be amortized | $ 125 | $ 125 | ||||||
Weighted-average period of amortization | 1 year 3 months 18 days | |||||||
Fair value at vesting date | $ 130 | $ 51 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ (26) | $ (15) | $ (44) | $ (14) |
Statutory income tax rate | 21% |
Leases and Other Commitments -
Leases and Other Commitments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Operating Lease, Expense | $ 6 | $ 5 | $ 12 | $ 11 |
Leases and Other Commitments _2
Leases and Other Commitments - Schedule of Leases (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 45 | $ 52 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities | Accrued liabilities | |
Operating Lease, Liability, Current | $ 18 | $ 19 | |
Operating lease liabilities | 31 | 39 | |
Total operating lease liabilities | $ 49 | $ 58 | |
Weighted average remaining lease term, years | 3 years | 4 years | |
Weighted average discount rate | 6% | 6% | |
Operating cash flows for operating leases | $ 11 | $ 10 | |
Operating leases | $ 2 | $ 0 |
Leases and Other Commitments _3
Leases and Other Commitments - Maturity Schedule (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Leases [Abstract] | |
Remainder of 2024 | $ 11 |
2025 | 18 |
2026 | 13 |
2027 | 8 |
2028 | 4 |
Thereafter | 0 |
Less Imputed Interest | 5 |
Total | $ 49 |
Litigation (Details)
Litigation (Details) $ in Billions | Sep. 15, 2022 USD ($) | Jun. 01, 1999 USD ($) | Jun. 01, 1999 COP ($) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jun. 30, 1993 USD ($) |
Litigation | ||||||
Loss contingency accrual | $ 43,000,000 | $ 12,000,000 | ||||
Legal contingencies, liability range | $ 13,000,000 | |||||
Ecosalud | ||||||
Litigation | ||||||
Litigation settlement amount | $ 30,000,000 | $ 90 | ||||
Putative Class Action Filed by Hannelore Boorn | Pending Litigation | ||||||
Litigation | ||||||
Loss Contingency, Claim Period | 5 years | |||||
Loss Contingency, Triggering Amount in Lost Funds by Plaintiff | $ 5 | |||||
Guarantee of business revenue | ||||||
Litigation | ||||||
Legal contingencies, liability range | $ 5,000,000 | |||||
Performance guarantee | ||||||
Litigation | ||||||
Surety bond | $ 4,000,000 |