Company: LAWIL
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000750004-25-000016
Chunk: 135

Company: Light & Wonder, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 15
Chunk 135
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 first-in, first-out or weighted moving average method. Our inventory primarily consists of gaming machines and table products for sale and related parts. We determine the lower of cost or net realizable value of our inventory based on estimates of potentially excess and obsolete inventories after considering historical and forecasted demand and average selling prices. Our policy is to continuously review and assess the value of our inventory. We continuously monitor demand, assess our internal outlook and rationalize our product roadmap, all of which could result in recording adjustments to the valuation of inventory.

92

Inventories consisted of the following: As of December 31, 20242023Parts and work-in-process$126 $113 Finished goods32 64 Total inventories$158 $177 Parts and work-in-process include parts for gaming machines and our finished goods inventory primarily consist of gaming machines for sale.We record inventory valuation charges in cost of products and recorded charges of $14 million, $14 million and $5 million for the years ended December 31, 2024, 2023 and 2022, respectively.

(8) Property and Equipment, net

Property and equipment are stated at cost, and when placed into service, are depreciated using the straight-line method over the estimated useful lives of the assets as follows:Item Estimated Life in YearsGaming equipment1 - 5 Machinery and equipment 3 - 15Transportation equipment 3 - 8Furniture and fixtures 5 - 10Buildings and improvements 15 - 40Costs incurred for equipment associated with specific Gaming contracts not yet placed into service are classified as construction in progress and are not depreciated until placed into service. Leasehold improvements are amortized over the lesser of the term of the corresponding lease or their useful life.We periodically review the estimated useful lives of our fixed assets and assess the recoverability of long-lived assets (or asset groups) whenever events or changes in circumstances indicate that the carrying value of such an asset (or asset groups) may not be recoverable.Property and equipment, net consisted of the following:As of December 31,20242023Land$6 $6 Buildings and leasehold improvements64 59 Gaming machinery and equipment745 718 Furniture and fixtures29 26 Construction in progress9 7 Other property and equipment102 94 Less: accumulated depreciation(669)(674)Total property and equipment, net$286 $236 Depreciation expense is excluded from cost