Company: LAWIL
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0000750004-25-000031
Chunk: 73

Company: Light & Wonder, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 73
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, Inc. to acquire certain assets and assume certain liabilities constituting Grover Charitable Gaming, a leading provider of electronic pull-tabs distributed over five U.S. states: North Dakota, Ohio, Virginia, Kentucky and New Hampshire. The total consideration to be paid in connection with this transaction consists of $850 million in cash at closing, subject to certain customary purchase price adjustments as set forth in the purchase agreement, and up to $200 million in cash in the aggregate in the form of contingent acquisition consideration payments over a four-year period based on achievement of certain revenue and business expansion metrics. The transaction is expected to close during the second quarter of 2025, subject to required regulatory and other approvals and customary closing conditions. Our lead arranger has obtained commitments, subject to customary closing conditions, for a three-year, $800 million Term Loan A credit facility at leverage-based pricing expected to be in line with our current LNWI Revolver credit facility, the proceeds of which will be used for the financing of the pending Grover Charitable Gaming acquisition.New Accounting GuidanceThere have been no recent accounting pronouncements or changes in accounting pronouncements since those described within Note 1 of our 2024 10-K that are expected to have a material impact on our consolidated financial statements.

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(2) Revenue Recognition

The following table disaggregates our revenues by type within each of our reportable business segments:Three Months Ended March 31,20252024GamingGaming operations$173 $164 Gaming machine sales208 205 Gaming systems63 60 Table products51 47 Total$495 $476 SciPlayThird-party platforms and other(1)$175 $194 Direct-to-consumer platforms27 12 Total$202 $206 iGaming$77 $74 (1) Other primarily represents advertising revenue, which was not material for the periods presented.The amount of rental income revenue included in services revenue within the consolidated statement of operations that is outside the scope of ASC 606 was $138 million and $127 million for the three months ended March 31, 2025 and 2024, respectively.Contract Liabilities and Other DisclosuresThe following table summarizes the activity in our contract liabilities for the reporting period:Three Months Ended March 31, 2025Contract liability balance, beginning of period(1)$21 Liabilities recognized during the period10 Amounts recognized in revenue from beginning balance(8)Contract liability balance, end