Company: LAWIL
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0000750004-25-000031
Chunk: 31

Company: Light & Wonder, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 Notes 2 and 3 in our 2024 10-K.In evaluating financial performance, our Chief Operating Decision Maker (defined as our Chief Executive Officer) focuses on AEBITDA as management’s primary segment measure of profit or loss, which is described in footnote (5) to the 

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below table. Our CODM uses reportable business segment AEBITDA to evaluate the performance of each reportable business segment and to allocate resources. Additionally, AEBITDA is one of the key metrics used in our incentive compensation program. The accounting policies for our reportable segments are the same as those described within the Notes in our 2024 10-K. The following tables present our reportable segment information:Three Months Ended March 31, 2025GamingSciPlayiGamingTotal Reportable SegmentsUnallocated and Reconciling Items(1)TotalTotal revenue$495 $202 $77 $774 $— $774 Cost of revenue(2)(131)(55)(25)(211)— (211)Payroll and related(3)(83)(27)(16)(126)— (126)Other segment reconciling items(4)(27)(56)(9)(92)(34)(126)AEBITDA(5)254 64 27 345 (34)311 Reconciling items to net income before income taxes:Restructuring and other(5)— (7)(12)(8)(20)D&A(91)(91)Interest expense(68)(68)Loss on debt financing transactions(1)(1)Other income, net1 1 Stock-based compensation(27)(27)Net income before income taxes$105 Capital expenditures for the three months ended March 31, 2025$49 $5 $5 $59 $2 $61 (1) Includes amounts not allocated to the reportable segments (including corporate costs) and items to reconcile the total reportable segments AEBITDA to our consolidated net income before income taxes.(2) Excludes D&A.(3) Excludes stock-based compensation.(4) Primarily represents various other non-payroll related operating expenses, including but not limited to, professional and legal services, marketing, facilities and operating leases, maintenance and other operating expenses.(5) AEBITDA is reconciled to net income before income taxes with the following adjustments, as applicable: (1) depreciation and amortization expense and impairment charges