Company: LAWIL
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000750004-25-000016
Chunk: 78

Company: Light & Wonder, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 78
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 original content, growth in our partner network and momentum in the international and U.S. markets. Revenue in the prior year also benefited from $6 million in certain license termination fees, which impacted revenue growth by 2%. Wagers processed through our Open Gaming System increased to $91.0 billion for the year ended December 31, 2024, a 10% increase from the prior year.

Operating expenses increased due to increases in cost of revenue associated with the increase in revenue as described above, as well as increases in depreciation and amortization, offset by decreases in restructuring costs, as 2023 included $19 million in fair value adjustments of contingent acquisition considerations. AEBITDA increased by $3 million or 3%, primarily due to the increase in revenue described above, while AEBITDA margin decreased slightly to 33%, as prior year license termination fees impacted AEBITDA growth by 6%. 

RECENTLY ISSUED ACCOUNTING GUIDANCE

For a description of recently issued accounting pronouncements, see Note 1.

CRITICAL ACCOUNTING ESTIMATES

Information regarding significant accounting policies is included in Note 1 and in the relevant sections of applicable Notes. As stated in Note 1, the preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may 

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differ from these estimates. We believe that the estimates, assumptions, and judgments involved in the following accounting policies have the greatest potential impact on our consolidated financial statements:

•Business combinations;

•Revenue recognition;

•Goodwill, long-lived and other intangible assets - impairment assessment;

•Income taxes; and 

•Legal contingencies. 

Business Combinations

As described in Note 9, we account for business combinations in accordance with ASC 805. This standard requires the acquiring entity in a business combination to recognize all (and only) the assets acquired and liabilities assumed in the transaction and establishes the acquisition-date fair value as the measurement objective for all assets acquired and liabilities assumed in a business combination, with certain exceptions for contract assets and contract liabilities in accordance with ASC 606. 

Determining the fair value of assets acquired and liabilities