Light & Wonder, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Light & Wonder, Inc. has filed its 2023 10-K annual report, detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Light & Wonder, Inc. (LAWIL) filed a Annual Report (10-K) with the SEC on February 27, 2024. The company filed its 10-K report for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company was formerly known as Scientific Games Corp and Autotote Corp. Light & Wonder, Inc. is incorporated in Nevada (NV). The business and mailing address is 6601 Bermuda Road, Las Vegas, NV 89119.

Why It Matters

For investors and stakeholders tracking Light & Wonder, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Light & Wonder's financial health, strategic initiatives, and risk factors for the past fiscal year, crucial for investors and stakeholders to assess the company's performance and future outlook. Understanding the company's historical structure, including its former names like Scientific Games Corp, provides context for its evolution and strategic direction within the gaming and technology industry.

Risk Assessment

Risk Level: medium — Light & Wonder, Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not inherently signal immediate positive or negative performance trends without further analysis of the specific financial data within the report.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K filing to assess Light & Wonder's financial health, operational performance, and potential future growth drivers or challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-27 — Filing Date (Filed as of date)
• 162 — Public Document Count (Number of documents in the filing)

Key Players & Entities

• Light & Wonder, Inc. (company) — Filer name
• Scientific Games Corp (company) — Former company name
• Autotote Corp (company) — Former company name
• United Tote Inc (company) — Former company name
• NV (location) — State of incorporation
• 7028977150 (phone_number) — Business phone number

FAQ

Industry Context

Light & Wonder, Inc. operates within the gaming and technology sector, providing products and services to the casino and lottery industries.

Regulatory Implications

The company is subject to the reporting requirements of the Securities Exchange Act of 1934, necessitating the annual filing of a Form 10-K.

What Investors Should Do

1. Analyze the financial statements within the 10-K for revenue trends, profitability, and balance sheet health.
2. Identify and assess the key risk factors disclosed by the company to understand potential challenges.
3. Review management's discussion and analysis (MD&A) for insights into business strategy and outlook.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-27: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing for the period ending December 31, 2023, following the company's operations during that fiscal year.

Key Financial Figures

• $750 million — facility with aggregate commitments of $750 million extended pursuant to the LNWI Credit Ag

Filing Documents

• lnw-20231231.htm (10-K) — 2703KB
• ex421-descriptionoftheregi.htm (EX-4.21) — 33KB
• ex1023.htm (EX-10.23) — 18KB
• ex1025.htm (EX-10.25) — 18KB
• ex1028.htm (EX-10.28) — 118KB
• ex21-listofsubsidiaries2023.htm (EX-21) — 31KB
• ex231-dtconsentletter2023.htm (EX-23.1) — 2KB
• ex311-certificationofceose.htm (EX-31.1) — 10KB
• ex312-certificationofcfose.htm (EX-31.2) — 10KB
• ex321-certificationofceose.htm (EX-32.1) — 5KB
• ex322-certificationofcfose.htm (EX-32.2) — 5KB
• ex971-incentivecompensatio.htm (EX-97.1) — 35KB
• ex991.htm (EX-99.1) — 90KB
• ex992.htm (EX-99.2) — 58KB
• ex993.htm (EX-99.3) — 63KB
• ex994.htm (EX-99.4) — 83KB
• ex995-gamingregulations2023.htm (EX-99.5) — 26KB
• lnw-20231231_g1.jpg (GRAPHIC) — 183KB
• lnw-20231231_g10.jpg (GRAPHIC) — 23KB
• lnw-20231231_g11.jpg (GRAPHIC) — 23KB
• lnw-20231231_g12.jpg (GRAPHIC) — 27KB
• lnw-20231231_g13.jpg (GRAPHIC) — 22KB
• lnw-20231231_g2.jpg (GRAPHIC) — 1KB
• lnw-20231231_g3.jpg (GRAPHIC) — 55KB
• lnw-20231231_g4.jpg (GRAPHIC) — 63KB
• lnw-20231231_g5.jpg (GRAPHIC) — 34KB
• lnw-20231231_g6.jpg (GRAPHIC) — 27KB
• lnw-20231231_g7.jpg (GRAPHIC) — 23KB
• lnw-20231231_g8.jpg (GRAPHIC) — 31KB
• lnw-20231231_g9.jpg (GRAPHIC) — 27KB
• picture1.jpg (GRAPHIC) — 4KB
• 0000750004-24-000015.txt (&nbsp;) — 16248KB
• lnw-20231231.xsd (EX-101.SCH) — 90KB
• lnw-20231231_cal.xml (EX-101.CAL) — 128KB
• lnw-20231231_def.xml (EX-101.DEF) — 516KB
• lnw-20231231_lab.xml (EX-101.LAB) — 1210KB
• lnw-20231231_pre.xml (EX-101.PRE) — 853KB
• lnw-20231231_htm.xml (XML) — 2350KB

Risk Factors

Item 1A. Risk Factors 18

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 45

Cybersecurity

Item 1C. Cybersecurity 45

Properties

Item 2. Properties 46

Legal Proceedings

Item 3. Legal Proceedings 46

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 46 PART II 47

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 47

Reserved

Item 6. Reserved 48

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 49

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 65

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 66

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 66

Controls and Procedures

Item 9A. Controls and Procedures 66

Other Information

Item 9B. Other Information 69

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 69 PART III 69

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 69

Executive Compensation

Item 11. Executive Compensation 69

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 69

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 69

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 69 PART IV 70

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 70

Form 10-K Summary

Item 16 Form 10-K Summary 119 3 Glossary of Terms The following terms or acronyms used in this Form 10-K are defined below: Term or Acronym Definition 2025 Unsecured Notes 8.625% senior unsecured notes due 2025 issued by LNWI 2028 Unsecured Notes 7.000% senior unsecured notes due 2028 issued by LNWI 2029 Unsecured Notes 7.250% senior unsecured notes due 2029 issued by LNWI 2031 Unsecured Notes 7.500% senior unsecured notes due 2031 issued by LNWI AEBITDA Adjusted EBITDA, our primary performance measure of profit or loss for our business segments April 2022 Refinancing The series of refinancing transactions we completed in April 2022, in which we entered into the LNWI Credit Agreement containing the LNWI Revolver and LNWI Term Loan B, and we redeemed the LNWI Term Loan B-5, 2025 Secured Notes, 2026 Secured Euro Notes, 2026 Unsecured Euro Notes and 2026 Unsecured Notes ASC Accounting Standards Codification ASU Accounting Standards Update ASX Australian Securities Exchange CDIs CHESS Depositary Interests, instruments traded on the ASX CMS casino-management system Coin-in the amount wagered COVID-19 Coronavirus disease first identified in 2019 (declared a pandemic by the World Health Organization on March 11, 2020), the resulting pandemic and the associated impacts on the macroeconomic environment in general and our business environment specifically D&A depreciation, amortization and impairments (excluding goodwill) Divested Businesses or Divestitures The Lottery Business and Sports Betting Business combined or the sales of these, as appropriate within the context ETS electronic table system Exchange Act Securities Exchange Act of 1934, as amended FASB Financial Accounting Standards Board KPIs Key Performance Indicators L&W Light & Wonder, Inc. LAP local-area progressive LBO licensed betting office LNWI Light and Wonder International, Inc., a wholly-owned subsidiary of L&W and successor to Scientific Games International, Inc. LNWI

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Throughout this Annual Report on Form 10-K, we make "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results or strategies and can often be identified by the use of terminology such as "may," "will," "estimate," "intend," "plan," "continue," "believe," "expect," "anticipate," "target," "should," "could," "potential," "opportunity," "goal," or similar terminology. The forward-looking statements contained in this Annual Report on Form 10-K are generally located in the material set forth under the headings " Business ," " Risk Factors " and " Management's Discussion and Analysis of Financial Condition and Results of Operations " but may be found in other locations as well. These statements are based upon management's current expectations, assumptions and estimates and are not guarantees of timing, future results or performance. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. Actual results may differ materially from those contemplated in these statements due to a variety of risks and uncertainties and other factors, including, among other things: our inability to successfully execute our strategy; slow growth of new gaming jurisdictions, slow addition of casinos in existing jurisdictions and declines in the replacement cycle of gaming machines; risks relating to foreign operations, including anti-corruption laws, fluctuations in currency rates, restrictions on the payment of dividends from earnings, restrictions on the import of products and financial instability; difficulty predicting what impact, if any, new tariffs imposed by and other trade actions taken by the U.S. and foreign jurisdictions could have on our business; U.S. and international economic and industry conditions, including increases in benchmark interest rates and the effects of inflation;

BUSINESS

ITEM 1. BUSINESS Unless otherwise specified or the context otherwise indicates, all references to the words "Light & Wonder," "Light & Wonder, Inc.," "we," "us," "our" and the "Company" refer to L&W and its consolidated subsidiaries. General L&W is a leading cross-platform global games company with a focus on content and digital markets headquartered in Las Vegas, Nevada. Our portfolio of revenue-generating activities primarily includes supplying game content and gaming machines, CMSs and table game products and services to licensed gaming entities; providing social casino and other mobile games, including casual gaming, to retail customers; and providing a comprehensive suite of digital gaming content, distribution platforms, player account management systems, as well as various other iGaming content and services. We report our results of operations in three business segments—Gaming, SciPlay and iGaming—representing our different products and services. On October 23, 2023, we acquired the remaining approximately 17% equity interest in SciPlay not already owned by us pursuant to a merger (the "SciPlay Merger"), after which SciPlay ceased to be publicly traded and became a wholly-owned subsidiary of L&W. The SciPlay Merger has added further momentum to our cross-platform strategy and provided flexibility for use of cash flows for investments across the enterprise. Our common stock is listed on The Nasdaq Stock Market under the ticker symbol "LNW." Our common stock is also listed as CDIs on the ASX and commenced active trading on May 22, 2023 (AEST) under the ticker symbol "LNW." During 2022, we completed the sales of our former Lottery Business and Sports Betting Business, which marked a major milestone in transforming our business and deleveraging our balance sheet. We have reflected the prior period financial results of the Divested Businesses as discontinued operations in our consolidated statements of operations for the years ended December 31, 2022 and 202

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View this 10-K filing on SEC EDGAR