Company: LAWIL
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000750004-25-000072
Chunk: 83

Company: Light & Wonder, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 83
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 nine months ended September 30, 2024 were negatively impacted by the $73 million TCS John Huxley legal matter settlement payment and $18 million in higher interest payments, coupled with the timing of collection of receivables and increased inventory levels.

Cash flows from investing activities

Net cash used in investing activities increased primarily due to the Grover acquisition, partially offset by lower capital expenditures related to the timing of investments in Gaming operations. Capital expenditures are composed of investments in gaming operations, systems, equipment and other assets related to contracts, property and equipment, intangible assets and software. 

Cash flows from financing activities

Net cash provided by financing activities increased, primarily driven by $1.8 billion of borrowings incurred under the LNWI Term Loan A and 2033 Unsecured Notes, net of $700 million used to redeem the 2028 Unsecured Notes. We also purchased more of our outstanding common stock under our share repurchase programs. During the nine months ended September 30, 2025 and 2024, we paid (including excise tax) $380 million and $219 million, respectively, to purchase our common stock.

Credit Agreement and Other Debt

For additional information regarding the LNWI Credit Agreement and other debt, interest rate risk and interest rate hedging instruments, see Notes 14 and 15 and Item 7A “Quantitative and Qualitative Disclosures About Market Risk” in our 2024 10-K as well as Notes 10 and 11 and Item 3 below in this Form 10-Q.

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Off-Balance Sheet Arrangements

As of September 30, 2025, we did not have any significant off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk of loss arising from adverse changes in market rates and prices, such as interest rates, foreign exchange rates and commodity prices. The following describes our financial instruments which expose us to market risk.

Interest Rate Risk

As of September 30, 2025, the face value of long-term debt was $5.0 billion, including $2.9 billion of variable rate obligations that fluctuate based on SOFR. Assuming a constant outstanding balance for our variable-rate long-term debt and excluding the impact of interest rate swap contracts, a hypothetical 1% change in interest rates would result in interest expense changing by approximately $29 million. All of our interest rate sensitive financial instruments are held for purposes other than