Company: LAWIL
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000750004-25-000016
Chunk: 112

Company: Light & Wonder, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 15
Chunk 112
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 revenue recognized in a given period. This required a high degree of auditor judgment and an increased extent of testing.

72

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to testing revenue contracts with higher contract values for the determination of performance obligations included the following, among others: 

•We tested the effectiveness of management’s controls over:

–Preparation and review of accounting analyses.

–Contract reviews to identify all promises and determine whether such promises are both capable of being distinct and distinct in the context of the contract such that they constitute performance obligations.

–Salesperson certifications to determine whether side agreements exist or whether there were amendments to contracts with customers during the period.

•For selected contracts, we performed the following:

–Obtained contract documents, including master agreements, and other documents that were relevant to the contract.

–Tested management’s identification of lease and non-lease components and performance obligations by evaluating whether the promises were both capable of being distinct and distinct within the context of the contract, including reading the selected contracts and inquiring of certain of the Company’s accounting and operations personnel to understand the nature of the promises and how they are delivered to the customer.

–Sent requests to customers for confirmation of key contract terms and compared responses to management’s analysis and inspected other correspondence between the customer and the Company that could be relevant to the contract. As applicable, inspected the aging of outstanding receivables or credit memos.

/s/ Deloitte & Touche LLP

Las Vegas, Nevada

February 25, 2025 

We have served as the Company’s auditor since 2003.

73

LIGHT & WONDER, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share amounts)

  Years Ended December 31, 202420232022Revenue:   Services$2,105 $1,991 $1,795 Products1,083 911 717 Total revenue3,188 2,902 2,512 Operating expenses:   Cost of services(1)448 445 390 Cost of products(1)483 427 348 Selling, general and administrative872 808 717 Research and development262 228 218 Depreciation, amortization and impairments361 384 420 Restructuring and other 94 92 146 Operating income668 518 273 Other (expense) income:  Interest expense(