Company: LAWIL
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0000750004-25-000031
Chunk: 82

Company: Light & Wonder, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 82
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 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 (loss) gain and interest income on our interest rate swap contracts:Three Months Ended March 31,20252024(Loss) gain recorded in accumulated other comprehensive loss, net of tax$(5)$6 Interest income related to interest rate swap contracts recorded in interest expense3 4 We do not expect to reclassify material amounts from accumulated other comprehensive loss to interest expense in the next twelve months. The following table shows the effect of interest rate swap contracts designated as cash flow hedges on interest expense in the consolidated statements of income:Three Months Ended March 31,20252024Total interest expense which reflects the effects of cash flow hedges$(68)$(75)Hedged item(5)(5)Derivative designated as hedging instrument8 9 The following table shows the fair value of our hedges:As ofBalance Sheet Line ItemMarch 31, 2025December 31, 2024Interest rate swapsOther assets$13 $19 Contingent Acquisition Consideration LiabilitiesIn 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, 2024 to March 31, 2025.TotalIncluded in Accrued LiabilitiesIncluded in Other Long-Term LiabilitiesBalance as of December 31, 2024$15 $8 $7 Other adjustments(1)(6)Balance as of