Company: LAWIL
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000750004-25-000048
Chunk: 85

Company: Light & Wonder, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 85
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 acquisition method of accounting whereby the total purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on respective estimated fair values. The estimated fair values of the acquired assets, assumed liabilities and resulting goodwill are subject to adjustment as we finalize our purchase price accounting, and such adjustments could be material.We incurred $14 million in acquisition-related costs, which were recorded in restructuring and other for the six months ended June 30, 2025.

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The following table summarizes the preliminary allocation of the purchase price, which is expected to be finalized by December 31, 2025:May 16, 2025Accounts receivable$9 Property and equipment52 Intangible assets464 Goodwill392 Other current and non-current assets1 Total assets918 Total current and non-current liabilities4 Net assets acquired$914 Consideration transferred:Cash, net of purchase price adjustments$858 Fair value of contingent consideration(1)56 Total consideration transferred $914 (1) The fair value was determined using an income approach primarily based on reaching certain revenue-based metrics, with a discount rate of 6% and a maximum payout of up to $200 million.Accounts receivable and other current and non-current assets and liabilities were valued at the existing carrying values, which approximated their estimated fair values. The fair value of property and equipment, which primarily consisted of electronic pull tab gaming devices, was determined using replacement cost and cost-plus pricing. The fair values of intangible assets that have been preliminarily identified were determined using a combination of the excess earnings method and the relief from royalty method using Level 3 inputs in the fair value hierarchy established by ASC 820. The discount rates used in the valuation analysis ranged between 14% and 15%, and the royalty rates used were between 2% and 18%. The following table details the intangible assets that have been preliminarily identified: Fair ValueWeighted Average Useful Life (Years) Customer relationships$345 15Intellectual property(1)91 5-7Trade name28 15(1) Primarily consists of game content and platform technology.The factors contributing to the recognition of acquired goodwill are based on enhanced financial and operational scale, market diversification and expansion, expected synergies, assembled workforce and other strategic benefits. We expect the resultant goodwill to be deductible for income tax purposes. Grover revenue and net income since the acquisition date and through June 30, 2025 included in the consolidated statements of operations and