Company: BRSL
Filing Date: 2025-02-25
Form Type: 20-F
Source: 0001619762-25-000007
Chunk: 35

Company: Brightstar Lottery PLC
Filing Date: 2025-02-25
Form: 20-F
Item: Item 5
Chunk 35
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 secure various obligations, including obligations arising under customer contracts and real estate leases. The following table summarizes the letters of credit outstanding at December 31, 2024 and 2023 and the weighted-average annual cost of such letters of credit:

  ($ in millions)        Letters of Credit Outstanding (1)      Weighted-              
  December 31, 2024      111                                                     1.06  
  December 31, 2023      111                                                     1.07  

(1) There were no letters of credit outstanding under the Revolving Credit Facilities.

C. Research and Development, Patents and Licenses, etc.

To remain competitive, the Company invests resources toward its R& D efforts to introduce new and innovative games with dynamic features to attract new customers and retain existing customers. The Company’s R& D efforts cover multiple creative and engineering disciplines, including innovative retail solutions, hardware and software, creative lottery games and game content, and instant ticket printing technology and design. These products are created primarily by employee designers, engineers, and artists, as well as third-party content creators.

R& D costs, which principally include employee compensation costs and outside services, are expensed as incurred, with the exception of certain costs incurred in the development of our externally-sold software products, software for services provided to customers, and software for internal use. Once technological feasibility is established, all software development costs are capitalized until the externally-sold software product is available for general release to customers, while software for services provided to customers and software for internal use are capitalized during the application development phase.

The Company devotes continued investment in R& D to create new and enhanced lottery products and services, as set forth below:

                                                             For the year ended December 31,                      
  ($ in millions)                                                                       2024      2023      2022  
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Research and development expenses, gross                                               170       162       159  
  Amounts charged to customer deliveries or capitalized                                  126       125       114  
  Research and development expenses, net                                                  45        37        45  

Research and development expenses, net represented approximately 2% of total revenue in 2024 and 2022 and approximately 1% of total revenue in 2023. The Company expects to continue to make investments in research and development.

See “ Item 4. Information on the Company - B. Business Overview - Intellectual