Company: LAWIL
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000750004-25-000016
Chunk: 139

Company: Light & Wonder, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 15
Chunk 139
---
 as a change in estimate with a $109 million carrying value of these legacy trade names being amortized on a straight-line basis beginning in the fourth quarter of 2021 over twenty months, which materially approximated the expected pattern of use. The incremental expense of this change for the years ended December 31, 2023 and 2022 was $29 million and $59 million, respectively, and recorded in D&A.GoodwillThe table below reconciles the change in the carrying value of goodwill, by business segment, for the period from December 31, 2022 to December 31, 2024.Gaming(1)SciPlayiGamingTotalsBalance as of December 31, 2022$2,373 $213 $333 $2,919 Foreign currency adjustments15 (3)14 26 Balance as of December 31, 20232,388 210 347 2,945 Foreign currency adjustments(18)(1)(23)(42)Other(13)— — (13)Balance as of December 31, 2024$2,357 $209 $324 $2,890 (1) Accumulated goodwill impairment charges for the Gaming segment as of December 31, 2024 were $989 million.

95

Goodwill represents the excess of the purchase price over the fair value of the assets acquired and liabilities assumed of acquired companies. We test goodwill for impairment annually as of October 1 of each fiscal year or more frequently if events arise or circumstances change that indicate that it is “more likely than not” that the fair value of a reporting unit is less than its carrying value.We evaluate goodwill at the reporting unit level by comparing the carrying value of each reporting unit to its fair value using a quantitative impairment test or qualitative assessment, as deemed appropriate. Under the qualitative assessment option, we first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value, which is commonly referred to as “Step 0.” If it is determined that it is not more likely than not that the fair value is less than the carrying value, goodwill is not considered impaired. For reporting units where we perform the quantitative test, we are required to compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows and a market approach, to the respective carrying value, which includes goodwill.