Business Segments

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Business Segments

We report our operations in three business segments—Gaming, SciPlay and iGaming—representing our different products and services. Our Gaming business segment generally sells game content and gaming machines, VGTs, VLTs (including conversion kits and parts), leases or otherwise provides gaming content, gaming machines, and server-based

systems. It also sells and supports CMS-based software and hardware, licenses PTG content, and supplies Shufflers to commercial, tribal and governmental gaming operators. Our SciPlay business segment develops, markets, and operates a portfolio of social games played on various mobile and web platforms as well as other games in the hyper-casual space. Our iGaming business segment provides a comprehensive suite of digital gaming content, distribution platforms, player account management systems, as well as various other iGaming content and services. See Note 4 for the products and services from which each reportable segment derives its revenues.

In evaluating financial performance, our Chief Operating Decision Maker (“CODM”) focuses on AEBITDA as management’s primary segment measure of profit or loss, which is described in footnote (2) to the below table. The accounting policies for our business segments are the same as those described in these Notes.

The following tables present our segment information:

	Year Ended December 31, 2022
	Gaming		SciPlay		iGaming		Unallocated and Reconciling Items(1)		Total
Total revenue	$	1,601	$	671	$	240	$	—	$	2,512
AEBITDA(2)	767		187		80		(121)		$	913
Reconciling items to consolidated Net loss from continuing operations before income taxes:
D&A	(327)		(21)		(48)		(24)		(420)
Restructuring and other	(6)		(5)		(23)		(112)		(146)
Interest expense							(327)		(327)
Loss on debt refinancing transactions							(147)		(147)
Gain on remeasurement of debt and other							27		27
Other income, net							6		6
Stock-based compensation							(69)		(69)
Net loss from continuing operations before income taxes									$	(163)
Assets as of December 31, 2022	$	4,073	$	761	$	626	$	549	$	6,009
Capital expenditures for the year ended December 31, 2022	$	151	$	12	$	32	$	21	$	216
(1) Includes amounts not allocated to the business segments (including corporate costs) and items to reconcile the total business segments AEBITDA to our consolidated net loss from continuing operations before income taxes.
(2) AEBITDA is reconciled to net income (loss) from continuing operations before income taxes with the following adjustments: (1) depreciation and amortization expense and impairment charges (including goodwill impairments); (2) restructuring and other, which includes charges or expenses attributable to: (i) employee severance; (ii) management restructuring and related costs; (iii) restructuring and integration; (iv) cost savings initiatives; (v) major litigation; and (vi) acquisition- and disposition-related costs and other unusual items; (3) interest expense; (4) loss on debt refinancing transactions; (5) change in fair value of investments and remeasurement of debt and other; (6) other income (expense), net, including foreign currency gains (losses) and earnings (loss) from equity investments; and (7) stock-based compensation. AEBITDA is presented as our primary segment measure of profit or loss.

	Year Ended December 31, 2021
	Gaming		SciPlay		iGaming		Unallocated and Reconciling Items(1)		Total
Total revenue	$	1,321	$	606	$	226	$	—	$	2,153
AEBITDA(2)	659		186		75		(127)		$	793
Reconciling items to consolidated Net loss from continuing operations before income taxes:
D&A	(303)		(15)		(54)		(26)		(398)
Restructuring and other	(9)		(32)		(1)		(125)		(167)
Interest expense							(478)		(478)
Gain on remeasurement of debt							41		41
Other income, net							28		28
Stock-based compensation							(113)		(113)
Net loss from continuing operations before income taxes									$	(294)
Assets as of December 31, 2021	$	4,112	$	696	$	633	$	468	$	5,909
Capital expenditures for the year ended December 31, 2021	$	123	$	9	$	23	$	16	$	171
(1) Includes amounts not allocated to the business segments (including corporate costs) and reconciling items to reconcile the total business segments AEBITDA to our consolidated net loss from continuing operations before income taxes.
(2) AEBITDA is described in footnote (2) to the first table in this Note 3.

	Year Ended December 31, 2020
	Gaming		SciPlay		iGaming		Unallocated and Reconciling Items(1)		Total
Total revenue	$	926	$	582	$	191	$	—	$	1,699
AEBITDA(2)	240		189		58		(113)		$	374
Reconciling items to consolidated Net loss from continuing operations before income taxes:
D&A	(348)		(10)		(48)		(43)		(449)
Goodwill impairment	(54)		—		—		—		(54)
Restructuring and other	(30)		(2)		(4)		(20)		(56)
Interest expense							(503)		(503)
Loss on debt financing transactions							(1)		(1)
Loss on remeasurement of debt							(51)		(51)
Other expense, net							(8)		(8)
Stock-based compensation							(56)		(56)
Net loss from continuing operations before income taxes									$	(804)
Capital expenditures for the year ended December 31, 2020	$	102	$	7	$	14	$	14	$	137
(1) Includes amounts not allocated to the business segments (including corporate costs) and reconciling items to reconcile the total business segments AEBITDA to our consolidated net loss from continuing operations before income taxes.
(2) AEBITDA is described in footnote (2) to the first table in this Note 3.

The following tables present revenue by customer location and property and equipment by geographic location:

	Year Ended December 31,
	2022		2021		2020
Revenue:
U.S.	$	1,734	$	1,551	$	1,181
Other	778		602		518
Total	$	2,512	$	2,153	$	1,699

	As of December 31,
	2022		2021
Property and equipment, net:
U.S.	$	163	$	147
Other	41		66
Total	$	204	$	213