Company: LAWIL
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000750004-25-000016
Chunk: 155

Company: Light & Wonder, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 15
Chunk 155
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2022 Divestitures. Our 2022 effective tax rate was impacted by not benefiting from year-to-date losses in continuing operations in accordance with the intraperiod tax expense (benefit) allocation rules as generally prescribed under ASC 740-20. The Divestitures generated $674 million of net cash taxes, after usage of tax attributes. Of this amount, $641 million was paid in the year ended December 31, 2022 and the remainder was paid in the year ended December 31, 2023.Deferred income taxes reflect the net tax effects of temporary differences between the carrying values of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The deferred income tax balances are established using the enacted statutory tax rates and are adjusted for changes in such rates in the period of change. As of December 31, 20242023Deferred tax assets:  Reserves and other accrued expenses$90 $65 Net operating loss carry forwards82 82 Capitalized research and development expenditures85 61 Interest limitation carry forwards60 32 Stock compensation33 33 Property and equipment8 14 Differences in financial reporting and tax basis for:Other41 32 Less: Valuation allowance(67)(65)Realizable deferred tax assets332 254 Deferred tax liabilities: Differences in financial reporting and tax basis for:Identifiable intangible assets(57)(87)Property and equipment(35)(25)Other(23)(20)Total deferred tax liabilities(115)(132)Net deferred tax asset on balance sheet$217 $122 

106

At December 31, 2024, we had the following NOL, interest limitation, R&D credit, and state tax credit carry forwards:December 31, 2024FederalStateForeign NOL carry forwards$— $521 $238 Interest limitation carry forwards159 105 80 R&D and state credit carry forwards— 2 — The state and foreign NOL carryforwards can be carried forward for periods that vary from five years to indefinitely. State tax credits expire through 2031. The interest limitation carryforwards can be carried forward indefinitely in all applicable jurisdictions.At December 31, 2024 and 2023, we had the following valuation allowances:December 31,20242023Federal6 5 State13 14 Foreign48 46 Undistributed earnings of subsidiaries are accounted for as a temporary difference