Company: LAWIL
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0000750004-25-000031
Chunk: 85

Company: Light & Wonder, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 85
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 evaluate information such as historical financial results, historical taxable income, projected future taxable income, expected timing of the reversals of existing temporary differences and available prudent and feasible tax planning strategies in our analysis. Based on the available evidence, valuation allowances in certain U.S. and non-U.S. jurisdictions remain consistent as of March 31, 2025.Our income tax expense (including discrete items) was $23 million and $18 million for the three months ended March 31, 2025 and 2024, respectively. For the three months ended March 31, 2025, our effective tax rate differed from the U.S. statutory rate of 21% primarily as a result of worldwide tax rates on foreign earnings. In all periods, we recorded tax expense relative to pre-tax earnings in jurisdictions without valuation allowances.

(14) Leases 

Our total operating lease expense for the three months ended March 31, 2025 and 2024 was $6 million and $7 million, respectively. The total amount of variable and short-term lease payments was immaterial for all periods presented.Supplemental balance sheet and cash flow information related to operating leases is as follows:As of March 31, 2025December 31, 2024Operating lease right-of-use assets$42 $44 Accrued liabilities17 16 Operating lease liabilities29 31 Total operating lease liabilities$46 $47 Weighted average remaining lease term, years33Weighted average discount rate6 %6 %Three Months Ended March 31,20252024Cash paid for amounts included in the measurement of lease liabilities:Operating cash flows for operating leases$5 $6 Right-of-use assets obtained in exchange for new lease liabilities:Operating leases$— $1 Lease liability maturities:Remainder of 20252026202720282029ThereafterLess Imputed InterestTotalOperating leases$16 $17 $10 $6 $1 $— $(4)$46 As of March 31, 2025, we did not have material additional operating leases that have not yet commenced.

(15) Litigation

We are involved in various legal proceedings, including those discussed below. We record an accrual for legal contingencies when it is both probable that a liability has been incurred and the amount or range of the loss can be reasonably 

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estimated (although, as discussed below, there may be an exposure to loss in excess of the accrued