Nevada | 81-0422894 | |||||||
(State or other jurisdiction of | (I.R.S. Employer Identification No.) | |||||||
incorporation or organization) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $.001 par value | LNW | The NASDAQ Stock Market | ||||||
Preferred Stock Purchase Rights | The NASDAQ Stock Market |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Page | ||||||||
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Item 2. | ||||||||
Item 3. | ||||||||
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Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. |
Glossary of Terms | ||||||||
The following terms or acronyms used in this Quarterly Report on Form 10-Q are defined below: | ||||||||
Term or Acronym | Definition | |||||||
2021 10-K | 2021 Annual Report on Form 10-K filed with the SEC on March 1, 2022 | |||||||
2025 Secured Notes | 5.000% senior secured notes due 2025 issued by SGI | |||||||
2026 Secured Euro Notes | 3.375% senior secured notes due 2026 issued by SGI | |||||||
2026 Unsecured Euro Notes | 5.500% senior unsecured notes due 2026 issued by SGI | |||||||
2025 Unsecured Notes | 8.625% senior unsecured notes due 2025 issued by SGI | |||||||
2026 Unsecured Notes | 8.250% senior unsecured notes due 2026 issued by SGI | |||||||
2028 Unsecured Notes | 7.000% senior unsecured notes due 2028 issued by SGI | |||||||
2029 Unsecured Notes | 7.250% senior unsecured notes due 2029 issued by SGI | |||||||
AEBITDA | Adjusted EBITDA, our performance measure of profit or loss for our business segments | |||||||
April 2022 Refinancing | On April 14, 2022, we completed a series of refinancing transactions, which included (1) entering into a new credit agreement consisting of a (a) $2,200 million new term loan facility maturing in April 2029 and (b) $750 million new revolving credit facility maturing in April 2027, along with (2) using the net proceeds from the divestiture of the Lottery Business and net proceeds from borrowings under the new term loan facility to pay off our existing term loan facility and to redeem all of our outstanding 5.000% Senior Secured Notes due 2025, 3.375% Senior Secured Euro Notes due 2026, 5.500% Senior Unsecured Euro Notes due 2026 and 8.250% Senior Unsecured Notes due 2026 and, in each case, to pay accrued and unpaid interest thereon plus any related premiums, fees and expenses (see Note 11 for additional details) | |||||||
ASC | Accounting Standards Codification | |||||||
ASU | Accounting Standards Update | |||||||
CMS | casino-management system | |||||||
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) | |||||||
Exchange Act | Securities Exchange Act of 1934, as amended | |||||||
FASB | Financial Accounting Standards Board | |||||||
KPIs | Key Performance Indicators | |||||||
LBO | licensed betting office | |||||||
LIBOR | London Interbank Offered Rate | |||||||
Note | a note in the Notes to Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q, unless otherwise indicated | |||||||
Participation | refers to gaming machines provided to customers through service or leasing arrangements in which we earn revenues and are paid based on: (1) a percentage of the amount wagered less payouts; (2) fixed daily-fees; (3) a percentage of the amount wagered; or (4) a combination of (2) and (3) | |||||||
Pending Divestitures | the intended sale of certain international Lottery business subsidiaries (Scientific Games International GmbH, and its two subsidiaries (the “Austria Business”)) that are awaiting regulatory approval in Austria, which approval is expected to be received and the transaction to be completed by the end of the second quarter of 2022 and the sale of our Sports Betting business, which is expected to be completed in the third quarter of 2022, both subject to applicable regulatory approvals and in the case of the sale of our Sports Betting business, other customary closing conditions. See Notes 1 and 2 in this form 10-Q and Notes 1 and 2 in our 2021 10-K | |||||||
R&D | research and development | |||||||
RMG | real-money gaming | |||||||
RSU | restricted stock unit | |||||||
SEC | Securities and Exchange Commission | |||||||
Secured Notes | refers to the 2025 Secured Notes and 2026 Secured Euro Notes, collectively | |||||||
Senior Notes | the Secured Notes and the Unsecured Notes | |||||||
SciPlay | SciPlay Corporation, formerly referred to as our Social business segment | |||||||
SciPlay Revolver | $150 million revolving credit facility agreement entered into by SciPlay Holding Company, LLC, a subsidiary of SciPlay Corporation, that matures in May 2024 |
SG&A | selling, general and administrative | |||||||
L&W | Light & Wonder, Inc. | |||||||
SGI | Scientific Games International, Inc., a wholly-owned subsidiary of L&W | |||||||
SGI Revolver | Revolving credit facility with aggregate commitments of $650 million extended pursuant to that certain credit agreement, dated as of October 18, 2013 (and amended, supplemented and modified from time to time), by and among SGI, as the borrower, L&W, as a guarantor, Bank of America, N.A., as administrative agent, and the lenders and other agents party thereto | |||||||
SGI Term Loan B-5 | Term loan facility, issued pursuant to that certain credit agreement, dated as of October 18, 2013 (and amended, supplemented and modified from time to time), by and among SGI, as the borrower, L&W, as a guarantor, Bank of America, N.A., as administrative agent, and the lenders and other agents party thereto | |||||||
Shufflers | various models of automatic card shufflers, deck checkers and roulette chip sorters | |||||||
SOFR | Secured Overnight Financing Rate | |||||||
Unsecured Notes | refers to the 2026 Unsecured Euro Notes, 2026 Unsecured Notes, 2028 Unsecured Notes and 2029 Unsecured Notes, collectively | |||||||
U.S. GAAP | accounting principles generally accepted in the U.S. | |||||||
U.S. jurisdictions | the 50 states in the U.S. plus the District of Columbia, U.S. Virgin Islands and Puerto Rico | |||||||
VGT | video gaming terminal | |||||||
VLT | video lottery terminal |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Revenue: | |||||||||||
Services | $ | 431 | $ | 364 | |||||||
Product sales | 141 | 89 | |||||||||
Total revenue | 572 | 453 | |||||||||
Operating expenses: | |||||||||||
Cost of services(1) | 90 | 87 | |||||||||
Cost of product sales(1) | 70 | 40 | |||||||||
Selling, general and administrative | 175 | 159 | |||||||||
Research and development | 53 | 45 | |||||||||
Depreciation, amortization and impairments | 108 | 97 | |||||||||
Restructuring and other | 36 | 21 | |||||||||
Operating income | 40 | 4 | |||||||||
Other (expense) income: | |||||||||||
Interest expense | (116) | (121) | |||||||||
Gain on remeasurement of debt | 7 | 25 | |||||||||
Other income, net | 5 | 7 | |||||||||
Total other expense, net | (104) | (89) | |||||||||
Net loss from continuing operations before income taxes | (64) | (85) | |||||||||
Income tax expense | (3) | (3) | |||||||||
Net loss from continuing operations | (67) | (88) | |||||||||
Net income from discontinued operations, net of tax | 95 | 79 | |||||||||
Net income (loss) | 28 | (9) | |||||||||
Less: Net income attributable to noncontrolling interest | 2 | 6 | |||||||||
Net income (loss) attributable to L&W | $ | 26 | $ | (15) | |||||||
Per Share - Basic: | |||||||||||
Net loss from continuing operations | $ | (0.72) | $ | (0.98) | |||||||
Net income from discontinued operations | 0.98 | 0.82 | |||||||||
Net income (loss) attributable to L&W | $ | 0.26 | $ | (0.16) | |||||||
Per Share - Diluted: | |||||||||||
Net loss from continuing operations | $ | (0.72) | $ | (0.98) | |||||||
Net income from discontinued operations | 0.98 | 0.82 | |||||||||
Net income (loss) attributable to L&W | $ | 0.26 | $ | (0.16) | |||||||
Weighted average number of shares used in per share calculations: | |||||||||||
Basic shares | 97 | 95 | |||||||||
Diluted shares | 97 | 95 | |||||||||
(1) Excludes D&A. | |||||||||||
See accompanying notes to condensed consolidated financial statements. |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net income (loss) | $ | 28 | $ | (9) | |||||||
Other comprehensive income (loss) | |||||||||||
Foreign currency translation loss, net of tax | (32) | — | |||||||||
Derivative financial instruments unrealized gain, net of tax | 3 | 5 | |||||||||
Other comprehensive (loss) income from continuing operations | (29) | 5 | |||||||||
Other comprehensive (loss) income from discontinued operations | (8) | 3 | |||||||||
Total comprehensive loss | (9) | (1) | |||||||||
Less: comprehensive income attributable to noncontrolling interest | 2 | 6 | |||||||||
Comprehensive loss attributable to L&W | $ | (11) | $ | (7) | |||||||
See accompanying notes to condensed consolidated financial statements. |
As of | |||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 496 | $ | 585 | |||||||
Restricted cash | 48 | 41 | |||||||||
Receivables, net of allowance for credit losses $48 and $52, respectively | 431 | 423 | |||||||||
Inventories | 113 | 98 | |||||||||
Prepaid expenses, deposits and other current assets | 110 | 88 | |||||||||
Assets of businesses held for sale | 558 | 497 | |||||||||
Total current assets | 1,756 | 1,732 | |||||||||
Non-current assets: | |||||||||||
Restricted cash | 9 | 9 | |||||||||
Receivables, net of allowance for credit losses $2 and $2, respectively | 17 | 17 | |||||||||
Property and equipment, net | 197 | 213 | |||||||||
Operating lease right-of-use assets | 50 | 51 | |||||||||
Goodwill | 2,978 | 2,892 | |||||||||
Intangible assets, net | 893 | 946 | |||||||||
Software, net | 105 | 117 | |||||||||
Deferred income taxes | 344 | 349 | |||||||||
Other assets | 86 | 80 | |||||||||
Assets of businesses held for sale | 1,517 | 1,477 | |||||||||
Total assets | $ | 7,952 | $ | 7,883 | |||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt | $ | 44 | $ | 44 | |||||||
Accounts payable | 198 | 204 | |||||||||
Accrued liabilities | 385 | 444 | |||||||||
Liabilities of businesses held for sale | 300 | 282 | |||||||||
Total current liabilities | 927 | 974 | |||||||||
Deferred income taxes | 42 | 35 | |||||||||
Operating lease liabilities | 40 | 40 | |||||||||
Other long-term liabilities | 155 | 170 | |||||||||
Long-term debt, excluding current portion | 8,789 | 8,646 | |||||||||
Liabilities of businesses held for sale | 136 | 124 | |||||||||
Total liabilities | 10,089 | 9,989 | |||||||||
Commitments and contingencies (Note 16) | |||||||||||
Stockholders’ deficit: | |||||||||||
Common stock, par value $0.001 per share: 199 shares authorized; 115 and 114 shares issued and 97 shares outstanding, respectively | 1 | 1 | |||||||||
Additional paid-in capital | 1,366 | 1,337 | |||||||||
Accumulated loss | (3,132) | (3,158) | |||||||||
Treasury stock, at cost, 18 and 17 shares, respectively | (226) | (175) | |||||||||
Accumulated other comprehensive loss | (298) | (261) | |||||||||
Total L&W stockholders’ deficit | (2,289) | (2,256) | |||||||||
Noncontrolling interest | 152 | 150 | |||||||||
Total stockholders’ deficit | (2,137) | (2,106) | |||||||||
Total liabilities and stockholders’ deficit | $ | 7,952 | $ | 7,883 | |||||||
See accompanying notes to condensed consolidated financial statements. |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 28 | $ | (9) | |||||||
Less: Income from discontinued operations, net of tax | (95) | (79) | |||||||||
Adjustments to reconcile net loss from continuing operations to net cash (used in) provided by operating activities from continuing operations | 121 | 96 | |||||||||
Changes in working capital accounts, excluding the effects of acquisitions | (72) | 17 | |||||||||
Changes in deferred income taxes and other | 4 | — | |||||||||
Net cash (used in) provided by operating activities from continuing operations | (14) | 25 | |||||||||
Net cash provided by operating activities from discontinued operations | 108 | 98 | |||||||||
Net cash provided by operating activities | 94 | 123 | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (43) | (35) | |||||||||
Acquisitions of businesses, net of cash acquired | (108) | — | |||||||||
Other | — | 1 | |||||||||
Net cash used in investing activities from continuing operations | (151) | (34) | |||||||||
Net cash used in investing activities from discontinued operations | (25) | (27) | |||||||||
Net cash used in investing activities | (176) | (61) | |||||||||
Cash flows from financing activities: | |||||||||||
Borrowings under SGI revolving credit facility | 230 | — | |||||||||
Repayments under SGI revolving credit facility | (70) | (100) | |||||||||
Payments on long-term debt | (10) | (10) | |||||||||
Payments of debt issuance and deferred financing and offering costs | (1) | — | |||||||||
Payments on license obligations | (19) | (12) | |||||||||
Purchase of treasury stock | (51) | — | |||||||||
Net redemptions of common stock under stock-based compensation plans and other | (25) | (13) | |||||||||
Net cash provided by (used in) financing activities from continuing operations | 54 | (135) | |||||||||
Net cash used in financing activities from discontinued operations | (2) | (4) | |||||||||
Net cash provided by (used in) financing activities | 52 | (139) | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1) | (1) | |||||||||
Decrease in cash, cash equivalents and restricted cash | (31) | (78) | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | 701 | 1,143 | |||||||||
Cash, cash equivalents and restricted cash, end of period | 670 | 1,065 | |||||||||
Less: Cash, cash equivalents and restricted cash of discontinued operations | 117 | 117 | |||||||||
Cash, cash equivalents and restricted cash of continuing operations, end of period | $ | 553 | $ | 948 | |||||||
Supplemental cash flow information: | |||||||||||
Cash paid for interest | $ | 117 | $ | 123 | |||||||
Income taxes paid | 9 | 7 | |||||||||
Distributed earnings from equity investments | 1 | 4 | |||||||||
Supplemental non-cash transactions: | |||||||||||
Non-cash interest expense | $ | 6 | $ | 6 | |||||||
See accompanying notes to condensed consolidated financial statements. |
As of | |||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 86 | $ | 44 | |||||||
Restricted cash | 31 | 22 | |||||||||
Receivables, net | 194 | 214 | |||||||||
Inventories | 113 | 94 | |||||||||
Prepaid expenses deposits and other current assets | 134 | 123 | |||||||||
Total current assets of businesses held for sale | 558 | 497 | |||||||||
Property and equipment, net | 229 | 217 | |||||||||
Intangible assets and software, net | 334 | 304 | |||||||||
Goodwill | 623 | 623 | |||||||||
Equity investments | 249 | 251 | |||||||||
Other assets | 82 | 82 | |||||||||
Total non-current assets of businesses held for sale | 1,517 | 1,477 | |||||||||
Total assets of businesses held for sale | $ | 2,075 | $ | 1,974 | |||||||
LIABILITIES | |||||||||||
Accounts payable | $ | 103 | $ | 95 | |||||||
Accrued liabilities and other | 197 | 187 | |||||||||
Total current liabilities of businesses held for sale | 300 | 282 | |||||||||
Operating lease liabilities | 37 | 34 | |||||||||
Other | 99 | 90 | |||||||||
Total non-current liabilities of businesses held for sale | 136 | 124 | |||||||||
Total liabilities of businesses held for sale | $ | 436 | $ | 406 |
Three Months Ended March 31, 2022 | |||||
Contract liability balance, beginning of period(1) | $ | 37 | |||
Liabilities recognized during the period | 5 | ||||
Amounts recognized in revenue from beginning balance | (5) | ||||
Contract liability balance, end of period(1) | $ | 37 | |||
(1) Contract liabilities are included within Accrued liabilities and Other long-term liabilities in our consolidated balance sheets. |
As of | |||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
Current: | |||||||||||
Receivables | $ | 479 | $ | 475 | |||||||
Allowance for credit losses | (48) | (52) | |||||||||
Current receivables, net | 431 | 423 | |||||||||
Long-term: | |||||||||||
Receivables | 19 | 19 | |||||||||
Allowance for credit losses | (2) | (2) | |||||||||
Long-term receivables, net | 17 | 17 | |||||||||
Total receivables, net | $ | 448 | $ | 440 | |||||||
As of | |||||||||||||||||||||||
March 31, 2022 | Balances over 90 days past due | December 31, 2021 | Balances over 90 days past due | ||||||||||||||||||||
Receivables: | |||||||||||||||||||||||
U.S. and Canada | $ | 257 | $ | 17 | $ | 321 | $ | 37 | |||||||||||||||
International | 241 | 21 | 173 | 44 | |||||||||||||||||||
Total receivables | 498 | 38 | 494 | 81 | |||||||||||||||||||
Receivables allowance: | |||||||||||||||||||||||
U.S. and Canada | (21) | (4) | (18) | (6) | |||||||||||||||||||
International | (29) | (19) | (36) | (19) | |||||||||||||||||||
Total receivables allowance | (50) | (23) | (54) | (25) | |||||||||||||||||||
Receivables, net | $ | 448 | $ | 15 | $ | 440 | $ | 56 | |||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Total | U.S. and Canada | International | Total | ||||||||||||||||||||
Beginning allowance for credit losses | $ | (54) | $ | (18) | $ | (36) | $ | (81) | |||||||||||||||
Provision | (3) | (3) | — | 1 | |||||||||||||||||||
Charge-offs and recoveries | 7 | — | 7 | 2 | |||||||||||||||||||
Allowance for credit losses as of March 31 | $ | (50) | $ | (21) | $ | (29) | $ | (78) | |||||||||||||||
As of March 31, 2022 | |||||||||||||||||
Total | Current or Not Yet Due | Balances Over 90 days Past Due | |||||||||||||||
Receivables | $ | 91 | $ | 40 | $ | 51 | |||||||||||
Allowance for credit losses | (28) | (14) | (14) | ||||||||||||||
Receivables, net | $ | 63 | $ | 26 | $ | 37 |
As of | |||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
Parts and work-in-process | $ | 88 | $ | 70 | |||||||
Finished goods | 25 | 28 | |||||||||
Total inventories | $ | 113 | $ | 98 | |||||||
As of | |||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
Land | $ | 6 | $ | 6 | |||||||
Buildings and leasehold improvements | 56 | 55 | |||||||||
Gaming machinery and equipment | 696 | 712 | |||||||||
Furniture and fixtures | 21 | 22 | |||||||||
Construction in progress | 11 | 9 | |||||||||
Other property and equipment | 86 | 84 | |||||||||
Less: accumulated depreciation | (679) | (675) | |||||||||
Total property and equipment, net | $ | 197 | $ | 213 | |||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Depreciation expense | $ | 28 | $ | 31 | |||||||
As of | |||||||||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Balance | Gross Carrying Value | Accumulated Amortization | Net Balance | ||||||||||||||||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||||||||||||||||||||
Customer relationships | $ | 912 | $ | (468) | $ | 444 | $ | 911 | $ | (445) | $ | 466 | |||||||||||||||||||||||
Intellectual property | 940 | (686) | 254 | 914 | (670) | 244 | |||||||||||||||||||||||||||||
Licenses | 436 | (368) | 68 | 472 | (380) | 92 | |||||||||||||||||||||||||||||
Brand names | 132 | (101) | 31 | 132 | (97) | 35 | |||||||||||||||||||||||||||||
Trade names | 162 | (71) | 91 | 158 | (54) | 104 | |||||||||||||||||||||||||||||
Patents and other | 12 | (7) | 5 | 12 | (7) | 5 | |||||||||||||||||||||||||||||
Total intangible assets | $ | 2,594 | $ | (1,701) | $ | 893 | $ | 2,599 | $ | (1,653) | $ | 946 | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Amortization expense | $ | 60 | $ | 45 |
As of | |||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
Software | $ | 995 | $ | 996 | |||||||
Accumulated amortization | (890) | (879) | |||||||||
Software, net | $ | 105 | $ | 117 | |||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Amortization expense | $ | 20 | $ | 21 |
Debt instrument | Interest rate | Maturity | Face value as of March 31, 2022 | Paid interest | Premium, other fees and expenses | |||||||||||||||||||||||||||
SGI Term Loan B-5 | variable | 2024 | $ | 4,008 | $ | 5 | $ | 33 | ||||||||||||||||||||||||
Senior Secured Notes | 5.000% | 2025 | 1,250 | 31 | 31 | |||||||||||||||||||||||||||
Senior Secured Euro Notes | 3.375% | 2026 | 361 | 2 | 6 | |||||||||||||||||||||||||||
Senior Unsecured Euro Notes | 5.500% | 2026 | 278 | 3 | 8 | |||||||||||||||||||||||||||
Senior Unsecured Notes | 8.250% | 2026 | 1,100 | 7 | 45 | |||||||||||||||||||||||||||
Total | $ | 6,997 | $ | 48 | $ | 123 |
As of | |||||||||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Final Maturity | Rate(s) | Face value | Unamortized debt discount/premium and deferred financing costs, net | Book value | Book value | ||||||||||||||||||||||||||||||
Senior Secured Credit Facilities: | |||||||||||||||||||||||||||||||||||
SGI Revolver | 2024 | variable | $ | 160 | $ | — | $ | 160 | $ | — | |||||||||||||||||||||||||
SGI Term Loan B-5 | 2024 | variable | 4,008 | (32) | 3,976 | 3,982 | |||||||||||||||||||||||||||||
SciPlay Revolver | 2024 | variable | — | — | — | — | |||||||||||||||||||||||||||||
SGI Senior Notes: | |||||||||||||||||||||||||||||||||||
2025 Secured Notes(1) | 2025 | 5.000% | 1,250 | (10) | 1,240 | 1,240 | |||||||||||||||||||||||||||||
2026 Secured Euro Notes(2) | 2026 | 3.375% | 361 | (3) | 358 | 364 | |||||||||||||||||||||||||||||
2025 Unsecured Notes | 2025 | 8.625% | 550 | (6) | 544 | 544 | |||||||||||||||||||||||||||||
2026 Unsecured Euro Notes(2) | 2026 | 5.500% | 278 | (2) | 276 | 280 | |||||||||||||||||||||||||||||
2026 Unsecured Notes | 2026 | 8.250% | 1,100 | (10) | 1,090 | 1,090 | |||||||||||||||||||||||||||||
2028 Unsecured Notes | 2028 | 7.000% | 700 | (8) | 692 | 692 | |||||||||||||||||||||||||||||
2029 Unsecured Notes | 2029 | 7.250% | 500 | (6) | 494 | 494 | |||||||||||||||||||||||||||||
Other(3) | 2023 | 4.089% | 3 | — | 3 | 4 | |||||||||||||||||||||||||||||
Total long-term debt outstanding | $ | 8,910 | $ | (77) | $ | 8,833 | $ | 8,690 | |||||||||||||||||||||||||||
Less: current portion of long-term debt | (44) | (44) | |||||||||||||||||||||||||||||||||
Long-term debt, excluding current portion | $ | 8,789 | $ | 8,646 | |||||||||||||||||||||||||||||||
Fair value of debt(4) | $ | 9,058 | |||||||||||||||||||||||||||||||||
(1) We entered into certain cross-currency interest rate swap agreements to achieve more attractive interest rates by effectively converting $460 million of the fixed-rate, U.S. Dollar-denominated 2025 Secured Notes, including the semi-annual interest payments through October 2023, to a fixed-rate Euro-denominated debt, with a fixed annual weighted average interest rate of approximately 2.946%. These cross-currency swaps have been designated as a hedge of our net investment in certain subsidiaries. | |||||||||||||||||||||||||||||||||||
(2) We designated a portion of our 2026 Secured Euro Notes as a net investment non-derivative hedge of our investments in certain of our international subsidiaries that use the Euro as their functional currency in order to reduce the volatility in our operating results caused by the change in foreign currency exchange rates of the Euro relative to the U.S. Dollar (see Note 12 for additional information). The total change in the face value of the 2026 Secured Euro Notes and 2026 Unsecured Euro Notes due to changes in foreign currency exchange rates since the issuance was a reduction of $73 million, of which a gain of $7 million was recognized on remeasurement of debt in the Consolidated Statements of Operations for the three months ended March 31, 2022. | |||||||||||||||||||||||||||||||||||
(3) Primarily comprised of certain revenue transactions presented as debt in accordance with ASC 470. | |||||||||||||||||||||||||||||||||||
(4) Fair value of our fixed rate and variable interest rate debt is classified within Level 2 in the fair value hierarchy and has been calculated based on the quoted market prices of our securities. |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Gain recorded in accumulated other comprehensive loss, net of tax | $ | 3 | $ | 5 | |||||||
Interest expense recorded related to interest rate swap contracts | 3 | 5 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Interest expense | |||||||||||
Total interest expense which reflects the effects of cash flow hedges | $ | (116) | $ | (121) | |||||||
Hedged item | (3) | (5) | |||||||||
Derivative designated as hedging instrument | — | — |
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid in Capital | Accumulated Loss | Treasury Stock | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total | |||||||||||||||||||||||||||||||||||
January 1, 2022 | $ | 1 | $ | 1,337 | $ | (3,158) | $ | (175) | $ | (261) | $ | 150 | $ | (2,106) | |||||||||||||||||||||||||||
Settlement of liability awards and other, net | — | 43 | — | — | — | — | 43 | ||||||||||||||||||||||||||||||||||
Vesting of RSUs, net of tax withholdings | — | (31) | — | — | — | — | (31) | ||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | (51) | — | — | (51) | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | 17 | — | — | — | — | 17 | ||||||||||||||||||||||||||||||||||
Net income | — | — | 26 | — | — | 2 | 28 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (37) | — | (37) | ||||||||||||||||||||||||||||||||||
March 31, 2022 | $ | 1 | $ | 1,366 | $ | (3,132) | $ | (226) | $ | (298) | $ | 152 | $ | (2,137) |
Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid in Capital | Accumulated Loss | Treasury Stock | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total | |||||||||||||||||||||||||||||||||||
January 1, 2021 | $ | 1 | $ | 1,268 | $ | (3,529) | $ | (175) | $ | (218) | $ | 129 | $ | (2,524) | |||||||||||||||||||||||||||
Vesting of RSUs, net of tax withholdings and other | — | (13) | — | — | — | — | (13) | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | 17 | — | — | — | — | 17 | ||||||||||||||||||||||||||||||||||
Net loss | — | — | (15) | — | — | 6 | (9) | ||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 8 | — | 8 | ||||||||||||||||||||||||||||||||||
March 31, 2021 | $ | 1 | $ | 1,272 | $ | (3,544) | $ | (175) | $ | (210) | $ | 135 | $ | (2,521) | |||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Related to L&W stock options | $ | — | $ | 6 | |||||||
Related to L&W RSUs | 12 | 11 | |||||||||
Related to SciPlay RSUs | 3 | 2 | |||||||||
Total | $ | 15 | $ | 19 | |||||||
Number of Restricted Stock Units | Weighted Average Grant Date Fair Value | ||||||||||
Unvested RSUs as of December 31, 2021 | 2.7 | $ | 32.03 | ||||||||
Granted | 1.4 | $ | 58.68 | ||||||||
Vested | (1.6) | $ | 38.28 | ||||||||
Cancelled | — | $ | 37.07 | ||||||||
Unvested RSUs as of March 31, 2022 | 2.5 | $ | 42.64 |
Remainder of 2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | Less Imputed Interest | Total | ||||||||||||||||||||||||||||||||||||||||
Operating leases | $ | 14 | $ | 16 | $ | 13 | $ | 10 | $ | 6 | $ | 2 | $ | (5) | $ | 56 |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
($ in millions) | Revenue | % Consolidated Revenue | Revenue | % Consolidated Revenue | |||||||||||||||||||
Foreign Currency: | |||||||||||||||||||||||
British Pound Sterling | $ | 42 | 7 | % | $ | 25 | 6 | % | |||||||||||||||
Euro | 45 | 8 | % | 26 | 6 | % | |||||||||||||||||
Three Months Ended March 31, | Variance | ||||||||||||||||||||||
($ in millions) | 2022 | 2021 | 2022 vs. 2021 | ||||||||||||||||||||
Total revenue | $ | 572 | $ | 453 | $ | 119 | 26 | % | |||||||||||||||
Total operating expenses | 532 | 449 | 83 | 18 | % | ||||||||||||||||||
Operating income | 40 | 4 | 36 | 900 | % | ||||||||||||||||||
Net loss from continuing operations before income taxes | (64) | (85) | 21 | 25 | % | ||||||||||||||||||
Net loss from continuing operations | (67) | (88) | 21 | 24 | % | ||||||||||||||||||
Net income from discontinued operations, net of tax | 95 | 79 | 16 | 20 | % | ||||||||||||||||||
Net income (loss) attributable to L&W | $ | 26 | $ | (15) | $ | 41 | 273 | % |
Consolidated Revenue by Business Segment | ||
(in millions) | ||
Three Months Ended March 31, 2022 and 2021 |
Three Months Ended March 31, | Variance | ||||||||||||||||||||||
($ in millions) | 2022 | 2021 | 2022 vs. 2021 | ||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Cost of services | $ | 90 | $ | 87 | $ | 3 | 3 | % | |||||||||||||||
Cost of product sales | 70 | 40 | 30 | 75 | % | ||||||||||||||||||
Selling, general and administrative | 175 | 159 | 16 | 10 | % | ||||||||||||||||||
Research and development | 53 | 45 | 8 | 18 | % | ||||||||||||||||||
Depreciation, amortization and impairments | 108 | 97 | 11 | 11 | % | ||||||||||||||||||
Restructuring and other | 36 | 21 | 15 | 71 | % | ||||||||||||||||||
Total operating expenses | $ | 532 | $ | 449 | $ | 83 | 18 | % | |||||||||||||||
Three Months Ended March 31, | Factors Affecting Net Income (Loss) Attributable to L&W | ||||||||||||||||
(in millions) | 2022 | 2021 | 2022 vs. 2021 | ||||||||||||||
Gain on remeasurement of debt | $ | 7 | $ | 25 | Gains are attributable to remeasurement of the 2026 Secured Euro Notes and 2026 Unsecured Euro Notes and reflect changes in the Euro vs. the U.S. Dollar foreign exchange rates between the periods. 67% of our Euro Notes were not treated as a net investment hedge in the first quarter of 2022 compared to 81% in the first quarter of 2021. | ||||||||||||
Three Months Ended March 31, 2022 and 2021 |
Three Months Ended March 31, | Variance | ||||||||||||||||||||||
($ in millions) | 2022 | 2021 | 2022 vs. 2021 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Gaming operations | $ | 155 | $ | 113 | $ | 42 | 37 | % | |||||||||||||||
Machine sales | 103 | 55 | 48 | 87 | % | ||||||||||||||||||
Systems | 51 | 42 | 9 | 21 | % | ||||||||||||||||||
Table products | 46 | 34 | 12 | 35 | % | ||||||||||||||||||
Total revenue | $ | 355 | $ | 244 | $ | 111 | 45 | % | |||||||||||||||
F/X impact on revenue | $ | (3) | $ | 2 | $ | (5) | (250) | % | |||||||||||||||
Gaming KPIs: | |||||||||||||||||||||||
U.S. and Canada units: | |||||||||||||||||||||||
Installed base at period end | 30,359 | 29,809 | 550 | 2 | % | ||||||||||||||||||
Average daily revenue per unit | $ | 43.39 | $ | 35.45 | $ | 7.94 | 22 | % | |||||||||||||||
International units(1): | |||||||||||||||||||||||
Installed base at period end | 29,762 | 31,703 | (1,941) | (6) | % | ||||||||||||||||||
Average daily revenue per unit | $ | 13.72 | $ | 3.03 | $ | 10.69 | 353 | % | |||||||||||||||
Gaming machine unit sales: | |||||||||||||||||||||||
U.S. and Canada new unit shipments | 3,382 | 1,943 | 1,439 | 74 | % | ||||||||||||||||||
International new unit shipments | 1,914 | 656 | 1,258 | 192 | % | ||||||||||||||||||
Total new unit shipments | 5,296 | 2,599 | 2,697 | 104 | % | ||||||||||||||||||
Average sales price per new unit | $ | 17,099 | $ | 16,622 | $ | 477 | 3 | % | |||||||||||||||
(1) Excludes the impact of game content licensing revenue. |
Three Months Ended March 31, | Variance | ||||||||||||||||||||||
2022 | 2021 | 2022 vs. 2021 | |||||||||||||||||||||
U.S. and Canada unit shipments: | |||||||||||||||||||||||
Replacement units | 3,152 | 1,623 | 1,529 | 94 | % | ||||||||||||||||||
Casino opening and expansion units | 230 | 320 | (90) | (28) | % | ||||||||||||||||||
Total unit shipments | 3,382 | 1,943 | 1,439 | 74 | % | ||||||||||||||||||
International unit shipments: | |||||||||||||||||||||||
Replacement units | 1,914 | 656 | 1,258 | 192 | % | ||||||||||||||||||
Casino opening and expansion units | — | — | — | nm | |||||||||||||||||||
Total unit shipments | 1,914 | 656 | 1,258 | 192 | % | ||||||||||||||||||
nm = not meaningful. |
Three Months Ended March 31, 2022 and 2021 |
Three Months Ended March 31, | Variance | ||||||||||||||||||||||
($ in millions) | 2022 | 2021 | 2022 vs. 2021 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Mobile in-app purchases | $ | 140 | $ | 133 | $ | 7 | 5 | % | |||||||||||||||
Web in-app purchases and other | 18 | 18 | — | — | % | ||||||||||||||||||
Total revenue | $ | 158 | $ | 151 | $ | 7 | 5 | % | |||||||||||||||
SciPlay KPIs: | |||||||||||||||||||||||
In-App Purchases: | |||||||||||||||||||||||
Mobile Penetration(1) | 90 | % | 88 | % | 2 pp | nm | |||||||||||||||||
Average MAU(2) | 6.3 | 6.7 | (0.4) | (6) | % | ||||||||||||||||||
Average DAU(3) | 2.3 | 2.5 | (0.2) | (8) | % | ||||||||||||||||||
ARPDAU(4) | $ | 0.74 | $ | 0.67 | $ | 0.07 | 10 | % | |||||||||||||||
Average MPU(5) | 0.6 | 0.5 | 0.1 | 20 | % | ||||||||||||||||||
AMRPPU(6) | $ | 92.45 | $ | 92.80 | $ | (0.35) | 0 | % | |||||||||||||||
Payer Conversion Rate(7) | 8.9 | % | 8.1 | % | 0.8 pp | nm | |||||||||||||||||
nm = not meaningful. pp = percentage points. (1) Mobile penetration is defined as the percentage of business to consumer SciPlay revenue generated from mobile platforms. (2) MAU = Monthly Active Users is a count of visitors to our sites during a month. An individual who plays multiple games or from multiple devices may, in certain circumstances, be counted more than once. However, we use third-party data to limit the occurrence of multiple counting. (3) DAU = Daily Active Users is a count of visitors to our sites during a day. An individual who plays multiple games or from multiple devices may, in certain circumstances, be counted more than once. However, we use third-party data to limit the occurrence of multiple counting. (4) ARPDAU = Average revenue per DAU is calculated by dividing revenue for a period by the DAU for the period by the number of days for the period. (5) MPU = Monthly Paying Users is the number of individual users who made an in-game purchase during a particular month. (6) AMRPPU = Average Monthly Revenue Per Paying User is calculated by dividing average monthly revenue by average MPUs for the applicable time period. (7) Payer conversion rate is calculated by dividing average MPU for the period by the average MAU for the same period. |
Three Months Ended March 31, 2022 and 2021 |
Final Maturity | Rate(s) | Outstanding Principal Value as of March 31, 2022 (see Note 11) | April 14, 2022 Refinancing Impact | Outstanding Principal Value Adjusted | |||||||||||||||||||||||||
Senior Secured Credit Facilities: | |||||||||||||||||||||||||||||
SGI Revolver | 2024 | variable | $ | 160 | $ | (160) | $ | — | |||||||||||||||||||||
SGI Term Loan B-5 | 2024 | variable | 4,008 | (4,008) | — | ||||||||||||||||||||||||
New Term Loan | 2029 | variable | — | 2,200 | 2,200 | ||||||||||||||||||||||||
SGI Senior Notes: | |||||||||||||||||||||||||||||
2025 Secured Notes | 2025 | 5.000% | 1,250 | (1,250) | — | ||||||||||||||||||||||||
2026 Secured Euro Notes | 2026 | 3.375% | 361 | (361) | — | ||||||||||||||||||||||||
2025 Unsecured Notes | 2025 | 8.625% | 550 | — | 550 | ||||||||||||||||||||||||
2026 Unsecured Euro Notes | 2026 | 5.500% | 278 | (278) | — | ||||||||||||||||||||||||
2026 Unsecured Notes | 2026 | 8.250% | 1,100 | (1,100) | — | ||||||||||||||||||||||||
2028 Unsecured Notes | 2028 | 7.000% | 700 | — | 700 | ||||||||||||||||||||||||
2029 Unsecured Notes | 2029 | 7.250% | 500 | — | 500 | ||||||||||||||||||||||||
Other | 2023 | 4.089% | 3 | — | 3 | ||||||||||||||||||||||||
Total long-term debt outstanding | $ | 8,910 | $ | (4,957) | $ | 3,953 |
(in millions) | Cash and cash equivalents | Revolver capacity | Revolver capacity drawn or committed to letters of credit | Total | ||||||||||||||||||||||
L&W (excluding SciPlay and businesses held for sale) | $ | 204 | $ | 650 | $ | (172) | $ | 682 | ||||||||||||||||||
SciPlay | 292 | 150 | — | 442 | ||||||||||||||||||||||
Businesses held for sale | 86 | — | — | 86 | ||||||||||||||||||||||
Total as of March 31, 2022 | $ | 582 | $ | 800 | $ | (172) | $ | 1,210 | ||||||||||||||||||
L&W (excluding SciPlay and businesses held for sale) | $ | 221 | $ | 650 | $ | (12) | $ | 859 | ||||||||||||||||||
SciPlay | 364 | 150 | — | 514 | ||||||||||||||||||||||
Businesses held for sale | 44 | — | — | 44 | ||||||||||||||||||||||
Total as of December 31, 2021 | $ | 629 | $ | 800 | $ | (12) | $ | 1,417 |
Three Months Ended March 31, | Variance | ||||||||||||||||
($ in millions) | 2022 | 2021 | 2022 vs. 2021 | ||||||||||||||
Net cash (used in) provided by operating activities from: | |||||||||||||||||
Continuing operations | $ | (14) | $ | 25 | $ | (39) | |||||||||||
Discontinued operations | 108 | 98 | 10 | ||||||||||||||
Net cash provided by operating activities | 94 | 123 | (29) | ||||||||||||||
Net cash used in investing activities from: | |||||||||||||||||
Continuing operations | (151) | (34) | (117) | ||||||||||||||
Discontinued operations | (25) | (27) | 2 | ||||||||||||||
Net cash used in investing activities | (176) | (61) | (115) | ||||||||||||||
Net cash provided by (used in) financing activities from: | |||||||||||||||||
Continuing operations | 54 | (135) | 189 | ||||||||||||||
Discontinued operations | (2) | (4) | 2 | ||||||||||||||
Net cash provided by (used in) financing activities | 52 | (139) | 191 | ||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1) | (1) | — | ||||||||||||||
Decrease in cash, cash equivalents and restricted cash | $ | (31) | $ | (78) | $ | 47 |
Three Months Ended March 31, | Variance | ||||||||||||||||
($ in millions) | 2022 | 2021 | 2022 vs. 2021 | ||||||||||||||
Net income (loss) | $ | 28 | $ | (9) | $ | 37 | |||||||||||
Less: Income from discontinued operations, net of tax | (95) | (79) | (16) | ||||||||||||||
Adjustments to reconcile net loss from continuing operations to net cash (used in) provided by operating activities from continuing operations | 121 | 96 | 25 | ||||||||||||||
Changes in working capital accounts, excluding the effects of acquisitions | (72) | 17 | (89) | ||||||||||||||
Changes in deferred income taxes and other | 4 | — | 4 | ||||||||||||||
Net cash (used in) provided by operating activities from continuing operations | $ | (14) | $ | 25 | $ | (39) | |||||||||||
Exhibit Number | Description | |||||||
3.1(a) | ||||||||
3.1(b) | ||||||||
3.1(c) | ||||||||
3.1(d) | ||||||||
3.1(e) | ||||||||
3.2 | ||||||||
4.1 | ||||||||
4.2 | ||||||||
4.3 | ||||||||
10.1 | ||||||||
10.2 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 |
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Label Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
LIGHT & WONDER, INC. | |||||||||||
(Registrant) | |||||||||||
By: | /s/ Constance P. James | ||||||||||
Name: | Constance P. James | ||||||||||
Title: | Executive Vice President, Chief Financial Officer, Treasurer, Corporate Secretary, and Principal Accounting Officer | ||||||||||
Dated: | May 10, 2022 |
Company: | |||||||||||
SCIENTIFIC GAMES INTERNATIONAL, INC. | |||||||||||
By: | /s/ James Sottile | ||||||||||
Name: | James Sottile | ||||||||||
Title: | Secretary | ||||||||||
Additional Guarantor: | |||||||||||
L&W MERGER SUB, INC. | |||||||||||
By: | /s/ James Sottile | ||||||||||
Name: | James Sottile | ||||||||||
Title: | Secretary | ||||||||||
Existing Guarantors: | |||||||||||
SCIENTIFIC GAMES CORPORATION | |||||||||||
By: | /s/ James Sottile | ||||||||||
Name: | James Sottile | ||||||||||
Title: | Executive Vice President and Chief Legal Officer |
SG GAMING, INC. | |||||||||||
By: | /s/ John Cuddihy | ||||||||||
Name: | John Cuddihy | ||||||||||
Title: | Authorized Signatory | ||||||||||
NYX DIGITAL GAMING (USA), LLC | |||||||||||
By: | /s/ Jordan Levin | ||||||||||
Name: | Jordan Levin | ||||||||||
Title: | Chief Executive Officer | ||||||||||
DON BEST SPORTS CORPORATION | |||||||||||
By: | /s/ Jordan Levin | ||||||||||
Name: | Jordan Levin | ||||||||||
Title: | President, Treasurer and Secretary | ||||||||||
SGP HOLDCO | |||||||||||
By: | /s/ James Sottile | ||||||||||
Name: | James Sottile | ||||||||||
Title: | Secretary |
Trustee: | |||||||||||
DEUTSCHE BANK TRUST COMPANY AMERICAS | |||||||||||
By: | /s/ Chris Niesz | ||||||||||
Name: | Chris Niesz | ||||||||||
Title: | Authorized Signatory | ||||||||||
By: | /s/ Sebastian Hidalgo | ||||||||||
Name: | Sebastian Hidalgo | ||||||||||
Title: | Authorized Signatory |
Company: | |||||||||||
SCIENTIFIC GAMES INTERNATIONAL, INC. | |||||||||||
By: | /s/ James Sottile | ||||||||||
Name: | James Sottile | ||||||||||
Title: | Secretary | ||||||||||
Additional Guarantor: | |||||||||||
L&W MERGER SUB, INC. | |||||||||||
By: | /s/ James Sottile | ||||||||||
Name: | James Sottile | ||||||||||
Title: | Secretary | ||||||||||
Existing Guarantors: | |||||||||||
SCIENTIFIC GAMES CORPORATION | |||||||||||
By: | /s/ James Sottile | ||||||||||
Name: | James Sottile | ||||||||||
Title: | Executive Vice President and Chief Legal Officer |
SG GAMING, INC. | |||||||||||
By: | /s/ John Cuddihy | ||||||||||
Name: | John Cuddihy | ||||||||||
Title: | Authorized Signatory | ||||||||||
NYX DIGITAL GAMING (USA), LLC | |||||||||||
By: | /s/ Jordan Levin | ||||||||||
Name: | Jordan Levin | ||||||||||
Title: | Chief Executive Officer | ||||||||||
DON BEST SPORTS CORPORATION | |||||||||||
By: | /s/ Jordan Levin | ||||||||||
Name: | Jordan Levin | ||||||||||
Title: | President, Treasurer and Secretary | ||||||||||
SGP HOLDCO | |||||||||||
By: | /s/ James Sottile | ||||||||||
Name: | James Sottile | ||||||||||
Title: | Secretary |
Trustee: | |||||||||||
DEUTSCHE BANK TRUST COMPANY AMERICAS | |||||||||||
By: | /s/ Chris Niesz | ||||||||||
Name: | Chris Niesz | ||||||||||
Title: | Authorized Signatory | ||||||||||
By: | /s/ Sebastian Hidalgo | ||||||||||
Name: | Sebastian Hidalgo | ||||||||||
Title: | Authorized Signatory |
Company: | |||||||||||
SCIENTIFIC GAMES INTERNATIONAL, INC. | |||||||||||
By: | /s/ James Sottile | ||||||||||
Name: | James Sottile | ||||||||||
Title: | Secretary | ||||||||||
Additional Guarantor: | |||||||||||
L&W MERGER SUB, INC. | |||||||||||
By: | /s/ James Sottile | ||||||||||
Name: | James Sottile | ||||||||||
Title: | Secretary | ||||||||||
Existing Guarantors: | |||||||||||
SCIENTIFIC GAMES CORPORATION | |||||||||||
By: | /s/ James Sottile | ||||||||||
Name: | James Sottile | ||||||||||
Title: | Executive Vice President and Chief Legal Officer |
SG GAMING, INC. | |||||||||||
By: | /s/ John Cuddihy | ||||||||||
Name: | John Cuddihy | ||||||||||
Title: | Authorized Signatory | ||||||||||
NYX DIGITAL GAMING (USA), LLC | |||||||||||
By: | /s/ Jordan Levin | ||||||||||
Name: | Jordan Levin | ||||||||||
Title: | Chief Executive Officer | ||||||||||
DON BEST SPORTS CORPORATION | |||||||||||
By: | /s/ Jordan Levin | ||||||||||
Name: | Jordan Levin | ||||||||||
Title: | President, Treasurer and Secretary | ||||||||||
SGP HOLDCO | |||||||||||
By: | /s/ James Sottile | ||||||||||
Name: | James Sottile | ||||||||||
Title: | Secretary |
Trustee: | |||||||||||
DEUTSCHE BANK TRUST COMPANY AMERICAS | |||||||||||
By: | /s/ Chris Niesz | ||||||||||
Name: | Chris Niesz | ||||||||||
Title: | Authorized Signatory | ||||||||||
By: | /s/ Sebastian Hidalgo | ||||||||||
Name: | Sebastian Hidalgo | ||||||||||
Title: | Authorized Signatory |
![]() | Exhibit 10.1 | |||||||
**SUBJECT TO BOARD APPROVAL** |
Annual Salary | Severance Period | Severance Salary Payment | Severance Bonus Payment | Total Payment | ||||||||||
$ 600,000 | 12 months | $ 600,000 | $ 150,000 | $ 750,000 |
ScientificGamesCorporation 6601 Bermuda Road, Las Vegas, Nevada 89119 www.scientificgames.com Page | 1 |
![]() | Exhibit 10.1 | |||||||
**SUBJECT TO BOARD APPROVAL** |
ScientificGamesCorporation 6601 Bermuda Road, Las Vegas, Nevada 89119 www.scientificgames.com Page | 2 |
![]() | Exhibit 10.1 | |||||||
**SUBJECT TO BOARD APPROVAL** |
Pat McHugh |
ScientificGamesCorporation 6601 Bermuda Road, Las Vegas, Nevada 89119 www.scientificgames.com Page | 3 |
/s/ Barry L. Cottle | ||
Barry L. Cottle | ||
Chief Executive Officer |
/s/ Constance P. James | ||
Constance P. James | ||
Chief Financial Officer |
/s/ Barry L. Cottle | |||||
Barry L. Cottle | |||||
Chief Executive Officer | |||||
May 10, 2022 |
/s/ Constance P. James | |||||
Constance P. James | |||||
Chief Financial Officer | |||||
May 10, 2022 |