Company: LAWIL
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000750004-25-000016
Chunk: 148

Company: Light & Wonder, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 15
Chunk 148
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 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 (expense) on our interest rate swap contracts: Year Ended December 31,202420232022(Loss) gain recorded in accumulated other comprehensive loss, net of tax$(1)$(7)$27 Interest income (expense) recorded related to interest rate swap contracts17 15 (7)We do not expect to reclassify material amounts from accumulated other comprehensive loss to interest expense in the next twelve months. The following table shows the effect of interest rate swap contracts designated as cash flow hedges on interest expense in the consolidated statements of operations: Year Ended December 31,202420232022Total interest expense which reflects the effects of cash flow hedges$(293)$(309)$(327)Hedged item(20)(20)(17)Derivative designated as hedging instrument37 35 10 The following table shows the fair value of our hedges:As of December 31,Balance Sheet Line Item20242023Interest rate swaps(1)Other assets$19 $20 (1) The inputs used to measure the fair value of our interest rate swap contracts are categorized as Level 2 in the fair value hierarchy.Contingent Acquisition Consideration LiabilitiesIn connection with our acquisitions, we have recorded certain contingent acquisition 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 

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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, 2023 to December 31, 2024.TotalIncluded in Accrued LiabilitiesIncluded in Other Long-Term LiabilitiesBalance as of December 31, 2023$59 $39 $20 Payments(39)Fair value adjustments— Other adjustments(1)(5)Balance as of December