Company: LAWIL
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000750004-25-000016
Chunk: 156

Company: Light & Wonder, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 15
Chunk 156
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, except that DTLs are not recorded for undistributed earnings of foreign subsidiaries that are deemed to be indefinitely reinvested in foreign jurisdictions. The Tax Cuts and Jobs Act of 2017 (“Tax Act”) required the Company to compute a tax on previously undistributed earnings and profits of its foreign subsidiaries upon transition from a worldwide tax system to a territorial tax system during the year ended December 31, 2017. The repatriation of such amounts in the future should generally be exempt from income taxes in the U.S. (as a result of the Tax Act) and in those jurisdictions that have a similar territorial system of taxation. Substantially all of our current year foreign cash flows are not intended to be indefinitely reinvested offshore, and therefore the tax effects of repatriation (including applicable withholding taxes) of such cash flows are provided for in our financial reporting.Unrecognized Tax BenefitsThe total amount of unrecognized tax benefits (“UTBs”) as of December 31, 2024 was $67 million. Of this amount, $67 million, if recognized, would be included in our Consolidated Statements of Operations and have an impact on our effective tax rate. During the fourth quarter of 2024, we recognized approximately $10 million of tax benefits due to expiration of statutes of limitations on tax positions.We recognize interest and penalties for unrecognized tax benefits in income tax expense. The amounts recognized for interest and penalties during the years ended December 31, 2024, 2023 and 2022 were not material. We file income tax returns in the U.S. Federal jurisdiction and various state and foreign jurisdictions. We are generally not subject to examination for periods prior to December 31, 2020; however, as we utilize our NOLs, prior periods can be subject to examination. 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 are subject to examination. There are no other ongoing material U.S. state, local or non-U.S. examinations by tax authorities.The Company had the following activity for unrecognized tax benefits: Year Ended December 31, 202420232022Balance at beginning of period$72 $73 $29 Tax positions related to current year additions1 2 43 Additions for tax positions of prior years4 1 1 Tax positions related to prior year reductions— (4)— Reductions due