Business Segments

12 Months Ended

Dec. 31, 2023

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 and other table products utilities 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 CODM (defined as our Chief Executive Officer) 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, 2023
	Gaming		SciPlay		iGaming		Unallocated and Reconciling Items(1)		Total
Total revenue	$	1,850	$	777	$	275	$	—	$	2,902
AEBITDA(2)	918		243		95		(138)		$	1,118
Reconciling items to consolidated net income from continuing operations before income taxes:
D&A	(281)		(30)		(49)		(24)		(384)
Restructuring and other	(11)		(10)		(25)		(46)		(92)
Interest expense							(309)		(309)
Loss on debt refinancing transactions							(15)		(15)
Other income, net							5		5
Stock-based compensation							(118)		(118)
Net income from continuing operations before income taxes									$	205
Assets as of December 31, 2023	$	4,023	$	473	$	712	$	344	$	5,552
Capital expenditures for the year ended December 31, 2023	$	181	$	18	$	30	$	13	$	242
(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 income 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 or 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, 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 financing 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 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, 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)
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.

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

	Year Ended December 31,
	2023		2022		2021
Revenue:
U.S.	$	1,948	$	1,734	$	1,551
Other	954		778		602
Total	$	2,902	$	2,512	$	2,153

	As of December 31,
	2023		2022
Property and equipment, net:
U.S.	$	196	$	163
Other	40		41
Total	$	236	$	204