Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-36906 |
Entity Registrant Name | INTERNATIONAL GAME TECHNOLOGY PLC |
Entity Incorporation, State or Country Code | X0 |
Entity Address, Address Line One | 66 Seymour Street, 2nd Floor |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | W1H 5BT |
Entity Address, Country | GB |
Title of 12(b) Security | Ordinary Shares, nominal value $0.10 |
Trading Symbol | IGT |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 203,688,118 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001619762 |
Amendment Flag | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Business Contact | |
Entity Information [Line Items] | |
Entity Address, Address Line One | IGT Center, 10 Memorial Boulevard |
Entity Address, City or Town | Providence |
Entity Address, Postal Zip Code | 02903 |
Contact Personnel Name | Christopher Spears |
City Area Code | 401 |
Local Phone Number | 392-1000 |
Contact Personnel Fax Number | (401) 392-4812 |
Contact Personnel Email Address | Christopher.Spears@IGT.com |
Entity Address, State or Province | RI |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Boston, Massachusetts |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 591,000 | $ 907,000 |
Restricted cash and cash equivalents | 218,000 | 199,000 |
Trade and other receivables, net | 903,000 | 846,000 |
Inventories | 183,000 | 169,000 |
Other current assets | 589,000 | 480,000 |
Assets held for sale | 4,000 | 839,000 |
Total current assets | 2,487,000 | 3,440,000 |
Systems, equipment and other assets related to contracts, net | 937,000 | 1,068,000 |
Property, plant and equipment, net | 119,000 | 132,000 |
Operating lease right-of-use assets | 283,000 | 288,000 |
Goodwill | 4,656,000 | 4,713,000 |
Intangible assets, net | 1,413,000 | 1,577,000 |
Other non-current assets | 1,429,000 | 1,774,000 |
Total non-current assets | 8,836,000 | 9,552,000 |
Total assets | 11,322,000 | 12,992,000 |
Current liabilities: | ||
Accounts payable | 1,035,000 | 1,126,000 |
Current portion of long-term debt | 0 | 393,000 |
Short-term borrowings | 52,000 | 0 |
Other current liabilities | 828,000 | 846,000 |
Liabilities held for sale | 0 | 250,000 |
Total current liabilities | 1,914,000 | 2,615,000 |
Long-term debt, less current portion | 6,477,000 | 7,857,000 |
Deferred income taxes | 368,000 | 333,000 |
Operating lease liabilities | 269,000 | 266,000 |
Other non-current liabilities | 323,000 | 360,000 |
Total non-current liabilities | 7,437,000 | 8,816,000 |
Total liabilities | 9,351,000 | 11,431,000 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Common stock, par value $0.10 per share; 205,188 shares issued and 203,688 shares outstanding at December 31, 2021; 204,857 shares issued and outstanding at December 31, 2020 | 21,000 | 20,000 |
Additional paid-in capital | 2,329,000 | 2,347,000 |
Retained deficit | (1,439,000) | (1,920,000) |
Treasury stock, at cost; 1,500 shares at December 31, 2021 | (41,000) | 0 |
Accumulated other comprehensive income | 412,000 | 330,000 |
Total IGT PLC’s shareholders’ equity | 1,282,000 | 777,000 |
Non-controlling interests | 689,000 | 784,000 |
Total shareholders’ equity | 1,971,000 | 1,561,000 |
Total liabilities and shareholders’ equity | $ 11,322,000 | $ 12,992,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.10 | |
Common stock, shares issued (in shares) | 205,188,000 | 204,857,000 |
Common stock, shares outstanding (in shares) | 203,688,118 | 204,856,564 |
Treasury stock (in shares) | 1,500,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | $ 4,089 | $ 3,115 | $ 4,032 |
Selling, general and administrative | 810 | 707 | 850 |
Research and development | 238 | 191 | 266 |
Restructuring | 6 | 45 | 25 |
Goodwill impairment | 0 | 296 | 99 |
Other operating expense (income), net | 1 | 4 | (21) |
Total operating expenses | 3,187 | 3,223 | 3,554 |
Operating income (loss) | 902 | (107) | 478 |
Interest expense, net | 341 | 398 | 411 |
Foreign exchange (gain) loss, net | (66) | 309 | (40) |
Other expense (income), net | 98 | 33 | (21) |
Total non-operating expenses | 373 | 740 | 350 |
Income (loss) from continuing operations before provision for income taxes | 529 | (848) | 128 |
Provision for income taxes | 274 | 28 | 131 |
Income (loss) from continuing operations | 255 | (875) | (3) |
Income from discontinued operations, net of tax | 24 | 37 | 114 |
Gain on sale of discontinued operations, net of tax | 391 | 0 | 0 |
Income from discontinued operations | 415 | 37 | 114 |
Net income (loss) | 670 | (839) | 112 |
Less: Net income attributable to non-controlling interests from continuing operations | 190 | 64 | 126 |
Less: Net (loss) income attributable to non-controlling interests from discontinued operations | (2) | (5) | 5 |
Net income (loss) attributable to IGT PLC | $ 482 | $ (898) | $ (19) |
Net income (loss) from continuing operations attributable to IGT PLC per common share - basic (in dollars per share) | $ 0.32 | $ (4.59) | $ (0.63) |
Net income (loss) from continuing operations attributable to IGT PLC per common share - diluted (in dollars per share) | 0.31 | (4.59) | (0.63) |
Net income (loss) attributable to IGT PLC per common share - basic (in dollars per share) | 2.35 | (4.39) | (0.09) |
Net income (loss) attributable to IGT PLC per common share - diluted (in dollars per share) | $ 2.33 | $ (4.39) | $ (0.09) |
Weighted average shares, basic (in shares) | 204,954 | 204,725 | 204,373 |
Weighted average shares, diluted (in shares) | 206,795 | 204,725 | 204,373 |
Service | |||
Revenue | $ 3,483 | $ 2,640 | $ 3,101 |
Cost of services and product sales | 1,754 | 1,634 | 1,777 |
Product | |||
Revenue | 606 | 476 | 931 |
Cost of services and product sales | $ 377 | $ 346 | $ 558 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 670,000 | $ (839,000) | $ 112,000 |
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Foreign currency translation adjustments, net of tax | 28,000 | 128,000 | (17,000) |
Unrealized gain (loss) on hedges, net of tax | 3,000 | (1,000) | (1,000) |
Unrealized (loss) gain on other, net of tax | (1,000) | 0 | 3,000 |
Other comprehensive income (loss), net of tax | 30,000 | 127,000 | (15,000) |
Comprehensive income (loss) | 700,000 | (712,000) | 97,000 |
Less: Comprehensive income attributable to non-controlling interests | 136,000 | 119,000 | 115,000 |
Comprehensive income (loss) attributable to IGT PLC | $ 564,000 | $ (831,000) | $ (18,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Cash flows from operating activities | |||
Net income (loss) | $ 670 | $ (839) | $ 112 |
Income from discontinued operations | 415 | 37 | 114 |
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities from continuing operations: | |||
Depreciation | 325 | 355 | 386 |
Amortization of upfront license fees | 216 | 210 | 206 |
Amortization | 201 | 211 | 228 |
Loss on extinguishment of debt | 92 | 28 | 12 |
Deferred income taxes | 38 | (78) | (68) |
Stock-based compensation | 35 | (7) | 27 |
Debt issuance cost amortization | 19 | 21 | 22 |
Goodwill impairment | 0 | 296 | 99 |
Gain on sale of assets | (9) | 0 | (65) |
Foreign exchange (gain) loss, net | (66) | 309 | (40) |
Other non-cash items, net | 7 | (2) | 19 |
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions: | |||
Trade and other receivables | (95) | 74 | (49) |
Inventories | (13) | 17 | 84 |
Accounts payable | (36) | 5 | 28 |
Other assets and liabilities | 41 | 31 | 21 |
Net cash provided by operating activities from continuing operations | 1,010 | 595 | 907 |
Net cash (used in) provided by operating activities from discontinued operations | (31) | 271 | 186 |
Net cash provided by operating activities | 978 | 866 | 1,093 |
Cash flows from investing activities | |||
Capital expenditures | (238) | (255) | (377) |
Proceeds from sale of assets | 21 | 9 | 124 |
Other | 1 | 12 | 6 |
Net cash used in investing activities from continuing operations | (216) | (233) | (248) |
Net cash provided by (used in) investing activities from discontinued operations | 852 | (35) | (65) |
Net cash provided by (used in) investing activities | 636 | (269) | (312) |
Cash flows from financing activities | |||
Principal payments on long-term debt | (2,846) | (959) | (848) |
Payments in connection with the extinguishment of debt | (85) | (25) | (9) |
Net (payments of) receipts from financial liabilities | (50) | 67 | (34) |
Payments of debt issuance costs | (14) | (22) | (26) |
Net proceeds from (repayments of) Revolving Credit Facilities | 17 | (29) | (417) |
Net proceeds from (payments of) short-term borrowings | 51 | ||
Net proceeds from (payments of) short-term borrowings | (7) | (32) | |
Proceeds from long-term debt | 1,339 | 750 | 1,397 |
Repurchases of common stock | (41) | 0 | 0 |
Dividends paid | (41) | (41) | (164) |
Dividends paid - non-controlling interests | (91) | (136) | (137) |
Return of capital - non-controlling interests | (127) | (32) | (99) |
Capital increase - non-controlling interests | 12 | 8 | 1 |
Other | (23) | (11) | (10) |
Net cash used in financing activities | (1,898) | (438) | (376) |
Net (decrease) increase in cash and cash equivalents and restricted cash and cash equivalents | (284) | 159 | 405 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | (37) | 76 | (22) |
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period | 1,129 | 894 | 512 |
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period | 808 | 1,129 | 894 |
Less: Cash and cash equivalents and restricted cash and cash equivalents of discontinued operations | 0 | 23 | 19 |
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period of continuing operations | 808 | 1,106 | 876 |
Cash paid during the period for: | |||
Interest | 369 | 410 | 400 |
Income taxes | 188 | 89 | 197 |
Non-cash investing and financing activities: | |||
Capital expenditures | $ 26 | $ 24 | $ 35 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Total IGT PLC Equity | Common Stock | Additional Paid-In Capital | Retained Deficit | Treasury Stock | Accumulated Other Comprehensive Income | Non- Controlling Interests |
Balance, beginning of period at Dec. 31, 2018 | $ 2,752,000 | $ 1,808,000 | $ 20,000 | $ 2,534,000 | $ (1,008,000) | $ 0 | $ 262,000 | $ 944,000 |
Shares of common stock outstanding | ||||||||
Net (loss) income | 112,000 | (19,000) | (19,000) | 131,000 | ||||
Other comprehensive income (loss), net of tax | (15,000) | 1,000 | 1,000 | (16,000) | ||||
Comprehensive income (loss) | 97,000 | (18,000) | (19,000) | 1,000 | 115,000 | |||
Stock-based compensation | 27,000 | 27,000 | 27,000 | |||||
Capital increase | 1,000 | 1,000 | ||||||
Shares issued under stock award plans | (2,000) | (2,000) | (2,000) | |||||
Return of capital | (99,000) | (99,000) | ||||||
Dividends paid | (300,000) | (164,000) | (164,000) | (137,000) | ||||
Other | 9,000 | 7,000 | 7,000 | 2,000 | ||||
Balance, end of period at Dec. 31, 2019 | 2,485,000 | 1,658,000 | 20,000 | 2,396,000 | (1,020,000) | 0 | 263,000 | 827,000 |
Shares of common stock outstanding | ||||||||
Net (loss) income | (839,000) | (898,000) | (898,000) | 59,000 | ||||
Other comprehensive income (loss), net of tax | 127,000 | 67,000 | 67,000 | 59,000 | ||||
Comprehensive income (loss) | (712,000) | (831,000) | (898,000) | 67,000 | 119,000 | |||
Stock-based compensation | (7,000) | (7,000) | (7,000) | |||||
Capital increase | 9,000 | 9,000 | ||||||
Shares issued under stock award plans | (1,000) | (1,000) | (1,000) | |||||
Return of capital | (32,000) | (32,000) | ||||||
Dividends paid | (178,000) | (41,000) | (41,000) | (138,000) | ||||
Other | (2,000) | (2,000) | (2,000) | 0 | ||||
Balance, end of period at Dec. 31, 2020 | 1,561,000 | 777,000 | 20,000 | 2,347,000 | (1,920,000) | 0 | 330,000 | 784,000 |
Shares of common stock outstanding | ||||||||
Net (loss) income | 670,000 | 482,000 | 482,000 | 188,000 | ||||
Other comprehensive income (loss), net of tax | 30,000 | 82,000 | 82,000 | (52,000) | ||||
Comprehensive income (loss) | 700,000 | 564,000 | 482,000 | 82,000 | 136,000 | |||
Stock-based compensation | 35,000 | 35,000 | 35,000 | |||||
Capital increase | 13,000 | 13,000 | ||||||
Shares issued under stock award plans | (12,000) | (12,000) | (12,000) | |||||
Divestiture of non-controlling interest | (30,000) | (30,000) | ||||||
Repurchases of common stock | (41,000) | (41,000) | (41,000) | |||||
Return of capital | (127,000) | (127,000) | ||||||
Dividends paid | (132,000) | (41,000) | (41,000) | (91,000) | ||||
Other | 3,000 | 3,000 | ||||||
Balance, end of period at Dec. 31, 2021 | $ 1,971,000 | $ 1,282,000 | $ 21,000 | $ 2,329,000 | $ (1,439,000) | $ (41,000) | $ 412,000 | $ 689,000 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business International Game Technology PLC (the “Parent”), together with its consolidated subsidiaries (collectively referred to as “IGT PLC,” the “Company,” “we,” “our,” or “us”), is a global leader in gaming that delivers entertaining and responsible gaming experiences for players across all channels and regulated segments, from gaming machines and lotteries to sports betting and digital. We operate and provide an integrated portfolio of innovative gaming technology products and services, including: lottery management services, online and instant lottery systems, gaming systems, instant ticket printing, electronic gaming machines, sports betting, digital gaming, digital lottery, and commercial services. We have a local presence and relationships with governments and regulators in more than 100 countries around the world. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Preparation Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements are stated in millions of United States (“U.S.”) dollars (except share and per share data) unless otherwise indicated, and are computed based on the amounts in thousands. Certain amounts in columns and rows within tables may not foot due to rounding. Percentages and earnings per share amounts presented are calculated from the underlying unrounded amounts. As further described in Note 3 - Discontinued Operations and Assets Held for Sale, on May 10, 2021, the Company completed the sale of its Italian B2C gaming machine, sports betting, and digital gaming businesses, which met the criteria to be reported as a discontinued operation during the fourth quarter of 2020. As a result, the historical financial results are reflected in the Company's consolidated financial statements as a discontinued operation, and assets and liabilities were classified as assets and liabilities held for sale at December 31, 2020. Recasting of Certain Prior Period Information During the third quarter of 2021, we modified the information that our chief operating decision maker, who was also our Chief Executive Officer, regularly reviewed for purposes of allocating resources and assessing performance, prompting a change in management, operating segments, and reporting units. As a result, beginning in the third quarter of 2021, we report our financial performance based on our new business segments described in Note 21 – Segment Information . We have recast our historically presented comparative segment information to conform to the way we internally manage and monitor segment performance as of the third quarter of 2021. This change primarily impacted Note 4 - Revenue Recognition, Note 13 - Goodwill, and Note 21 – Segment Information , with no impact on consolidated revenue, net income, or cash flows. Principles of Consolidation The consolidated financial statements include the accounts of the Parent, our majority-owned or controlled subsidiaries, and any variable interest entities in which we are the primary beneficiary. Intercompany accounts and transactions have been eliminated in consolidation. Earnings or losses attributable to non-controlling interests in a subsidiary are included in net income (loss) in the consolidated statements of operations. Investments in which we have the ability to exercise significant influence, but do not control, and with respect to which we are not the primary beneficiary, are accounted for using the equity method of accounting. Equity investments in which we have no ability to exercise significant influence that do not have a readily determinable fair value and do not have a Net Asset Value per share are measured at cost, less impairment, plus or minus changes resulting from observable price changes. Equity method investments and equity investments in which we have no ability to exercise significant influence are included within other non-current assets in the consolidated balance sheets. Use of Estimates The preparation of our consolidated financial statements requires us to make estimates, judgments, and assumptions which affect the reported amounts of assets, liabilities, equity, revenues and expenses, and related disclosure of contingent liabilities. On an ongoing basis we evaluate our estimates, judgments, and methodologies. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities, and equity, and the amount of revenues and expenses. Accordingly, actual results and outcomes could differ from those estimates. Revenue We account for a contract with a customer when: we have written approval; the parties are committed to perform their respective obligations; the rights of the parties, including payment terms, are identified; the contract has commercial substance; and collection of consideration is probable. Performance obligations are identified at contract inception. A performance obligation is a promise in a contract with a customer to transfer products or services that are distinct. If we enter into two or more contracts at or near the same time, the contracts may be combined and accounted for as one contract, in which case we determine whether the services or products in the combined contract are distinct. A service or product that is promised to a customer is distinct if both of the following criteria are met: the customer can benefit from the service or product either on its own or together with other resources that are readily available to the customer; and our promise to transfer the service or product to the customer is separately identifiable from other promises in the contract. Revenue is recognized when (or as) control of a promised service or product transfers to a customer, in an amount that reflects the consideration (which represents the transaction price) to which we expect to be entitled in exchange for transferring that service or product. If the consideration promised in a contract includes a variable amount, we estimate the amount to which we expect to be entitled using either the expected value or most likely amount method. Our contracts may include terms that could cause variability in the consideration, including, for example, rebates, volume discounts, service-level penalties, and performance bonuses or other forms of contingent revenue. Our standard payment terms dictate that payment is due upon receipt of invoice, payable within 30 days. Invoices are generally issued as control transfers and/or as services are rendered. Additionally, in determining the transaction price, we adjust the promised amount of consideration for the effects of the time value of money if the payment terms are not standard and the timing of payments agreed to by the parties to the contract provide the customer or the Company with a significant benefit of financing, in which case the contract contains a significant financing component. Most arrangements that contain a significant financing component include explicit financing terms. We may include subcontractor services or third-party vendor services or products in certain arrangements. In these arrangements, revenue from sales of third-party vendor services or products are recorded net of costs when we are acting as an agent between the customer and the vendor, and gross when we are the principal for the transaction. To determine whether we are an agent or principal, we consider whether we obtain control of the services or products before they are transferred to the customer. In making this evaluation, several factors are considered, most notably whether we have primary responsibility for fulfillment to the customer, as well as inventory risk and pricing discretion. Additional information on revenue recognition is included in Note 4.- Revenue Recognition. Arrangements with Multiple Performance Obligations We often enter into contracts that consist of a combination of services and products based on the needs of our customers, which may include post-contract support for the software and a contract for post-warranty maintenance service for the hardware. These contracts consist of multiple services and products, whereby the hardware and software may be delivered in one period and the software support and hardware maintenance services are delivered over time. To the extent that a service or product in an arrangement with multiple performance obligations is subject to other specific accounting guidance, that service or product is accounted for in accordance with such specific guidance. For all other distinct services and products in these arrangements, the arrangement transaction price is allocated to each performance obligation on a relative standalone selling price basis or another method that depicts the amount of consideration to which we expect to be entitled in exchange for transferring the promised services or products. If the services and products are not distinct, we determine an appropriate measure of progress based on the nature of our overall promise for the single performance obligation. To the extent we grant the customer the option to acquire additional services or products in one of these arrangements, we account for the option as a distinct performance obligation in the contract only if the option provides a material right to the customer that it would not receive without entering into the contract (i.e., a significant discount incremental to the range of discounts typically given for the service or product), in which case the customer in effect pays in advance for the option to purchase future services or products. We allocate a portion of the transaction price to the material right and recognize revenue when those future services or products are transferred or when the option expires. Standalone Selling Price We allocate the transaction price to each performance obligation on a relative standalone selling price (“SSP”) basis. The SSP is the price at which we would sell a promised service or product separately to a customer. In some instances, we are able to establish SSP based on the observable prices of services or products sold separately in comparable circumstances to a similar customer. We typically establish an SSP range for our services and products that are reassessed on a periodic basis or when facts and circumstances change. In other instances, we may not be able to establish an SSP range based on observable prices, and we estimate the SSP by considering multiple factors including, but not limited to, overall market conditions, including geographic or regional specific factors, competitive positioning, competitor actions, internal costs, profit objectives, and pricing practices. Estimating SSP is a formal process that includes review and approval by management. Contract Costs Certain eligible, non-recurring costs incurred in the initial phases of service contracts are capitalized and amortized ratably over the expected period of benefit, which includes anticipated contract renewals or extensions. Recurring operating costs in these contracts are recognized as incurred. Practical Expedients and Exemptions We report revenue net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions. We generally expense incremental costs of obtaining a contract (e.g., sales commissions) when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses in our consolidated statements of operations. For certain of our long-term contracts, recoverable costs are capitalized and amortized on a straight-line basis over the expected customer relationship period. We do not account for significant financing components if the period between when we transfer the promised service or product to the customer and when the customer pays for that service or product will be one year or less. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) performance obligations for which we recognize revenue at the amount that we have the right to invoice for services performed, (iii) contracts for which variable consideration is accounted for in accordance with sales-based or usage-based royalty guidance, and (iv) wholly unperformed contracts. Contract Assets and Liabilities Contract assets arise from contracts when revenue is recognized over time and the amount of revenue recognized exceeds the amount billed to the customer. These amounts are included in contract assets until the right to payment is no longer conditional on events other than the passage of time. Contract liabilities include deferred revenue, advance payments, and billings in excess of revenue recognized. Stock-Based Compensation Stock-based compensation represents the cost related to stock-based awards granted to directors and employees. Stock-based compensation cost is measured at the grant date or modification date, based on the estimated fair value of the award and recognized as expense, net of estimated forfeitures, over the vesting periods. For awards subject to cliff vesting, compensation cost is recognized by way of a straight-line method over the award’s expected vesting period. For awards subject to graded vesting, compensation cost is recognized by way of an accelerated attribution method over the entire awards’ expected vesting periods. Advertising Advertising costs are expensed as incurred. Advertising expense was $33 million, $25 million, and $34 million for the years ended December 31, 2021, 2020, and 2019, respectively. Research and Development Costs Research and development costs (“R&D”), which principally include employee compensation costs, are expensed as incurred. Cash and Cash Equivalents Cash and cash equivalents consist primarily of highly liquid investments purchased with an original maturity of three months or less at the date of acquisition, such as bank deposits, money market funds, and interest bearing bank accounts with insignificant interest rate risk. The fair value of cash and cash equivalents approximates the carrying amount. Restricted Cash and Cash Equivalents We are required by gaming regulations to maintain sufficient reserves in restricted cash accounts to be used for the purpose of funding payments to WAP jackpot winners. These restricted cash balances are based primarily on the jackpot meters displayed to slot players, or for previously won jackpots, and vary by jurisdiction. Under our Italian Lotto contract, we deposit wagers, net of prizes paid and retailer commissions retained by the retailer at point of sale, into bank accounts, the use of which is restricted based on the contract with our customer. Restricted cash is also maintained for interactive digital player deposits, collections on factored and serviced receivables not yet paid through to the third-party owner, and for customer funds received in relation to the provision of our commercial services. These amounts are restricted based on the contracts with our customers or local regulations. Allowance for Credit Losses We maintain an allowance for credit losses on receivables resulting from the expected failure or inability of our customers to make required payments. The allowance is regularly reviewed by considering factors such as the creditworthiness of our customers, historical experience, aging of receivables, and current market and economic conditions, as well as management’s expectations of future conditions when appropriate. The allowance is deducted from the amortized cost basis of the receivable to present the net amount expected to be collected. We estimate expected credit losses on receivables on a collective (pool) basis when similar risk characteristics exist. Trade and other receivables and customer financing receivables represent the initial pools which are segregated further by business segment, geography, internal risk rating, and aging. The risk of loss is assessed over the contractual life of the receivables and we adjust historical loss rates for current and future conditions based on qualitative considerations. The expected loss rate for each receivable pool is applied to the aggregate receivable balance to determine the allowance requirement. Receivables are written off against the allowance in the period they are determined to be uncollectible. We determine delinquency based on the contractual payment terms. An account may be considered delinquent if there are unpaid balances remaining on the account the day after the contractual due date. For amounts due from certain government customers in the Global Lottery business segment, we have not established an allowance as we have no expectation of loss based on a long history of no credit losses and the explicit guarantee of a sovereign entity. Inventories Inventories are stated at the lower of cost (applying the first in, first out method) and net realizable value. Allowances are made for defective, obsolete, or excess inventory. Assets and Liabilities Held for Sale We classify assets and liabilities (disposal groups) to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the disposal group; the disposal group is available for immediate sale in its present condition subject to terms customary for sales of such disposal groups; an active program to locate a buyer and other actions required to complete the plan to sell the disposal group have been initiated; the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale within one year; the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. We initially measure a disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a disposal group until the date of sale. We assess the fair value of a disposal group, less any costs to sell, each reporting period it remains classified as held for sale and report any subsequent changes as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the carrying value of the disposal group at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, we report the assets and liabilities of the disposal group, if material, in the line items assets held for sale and liabilities held for sale in the consolidated balance sheet in each period presented. Refer to Note 3 - Discontinued Operations and Assets Held for Sale , for further information. Systems, Equipment and Other Assets Related to Contracts, Net and Property, Plant and Equipment, Net We have two categories of fixed assets: systems, equipment and other assets related to contracts (“Systems & Equipment”) and property, plant and equipment (“PPE”). Systems & Equipment are assets that primarily support our operating contracts, FMCs, and WAP systems (collectively, the “Contracts”) and are principally composed of lottery and gaming assets, including those that are accounted for as operating leases with our customers. PPE are assets we use internally, not associated with Contracts, primarily related to production and assembly, selling, general and administration, and R&D. Systems & Equipment and PPE are stated at cost, net of accumulated depreciation and accumulated impairment loss, if any. Costs incurred for Systems & Equipment and PPE not yet placed into service are classified as construction in progress and are not depreciated until placed in service. Depreciation is recognized on a straight-line basis over the estimated useful lives of the assets. Repair and maintenance costs are expensed as incurred, whereas major improvements that increase asset values and extend useful lives are capitalized. Systems & Equipment and PPE are tested for impairment whenever events or changes in circumstances indicate the carrying amount of those assets may not be recoverable. An impairment loss is recognized only if the carrying amount is not recoverable and exceeds its fair value. The carrying amount is not recoverable if it exceeds the sum of the undiscounted forecasted cash flows resulting from the use and eventual disposition of such asset. An impairment loss is measured as the amount by which the carrying amount exceeds its fair value. Goodwill The assets and liabilities of acquired businesses are recorded under the acquisition method of accounting at their estimated fair values at the date of acquisition. Goodwill represents costs in excess of fair values assigned to the underlying identifiable net assets of acquired businesses, and is stated at cost less accumulated impairment losses. Goodwill has been allocated to and is tested for impairment at the reporting unit level, which is the same level as our operating segments. We evaluate our reporting units annually and if necessary, reassign goodwill using a relative fair value approach. As of December 31, 2021 we have identified three reporting units: Global Lottery, Global Gaming, and Digital & Betting. Goodwill is tested for impairment annually, in the fourth quarter, or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. The goodwill impairment test compares the fair value of a reporting unit with its carrying amount and an impairment loss is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. In performing the goodwill impairment test, we estimate the fair value of the reporting units using an income approach based on projected discounted cash flows. We have the option to first assess various qualitative factors (commonly referred to as “Step 0”) to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount and whether a quantitative analysis is necessary. If the Company does not elect to perform Step 0, it can voluntarily proceed directly to Step 1. In Step 1, the Company performs a quantitative analysis to compare the fair value of its reporting unit to its carrying value including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not considered impaired, and the Company is not required to perform further testing. If the carrying value of a reporting unit exceeds its fair value, then the Company would record an impairment loss equal to the difference. Other Intangible Assets Other intangible assets, which include indefinite-lived and definite-lived intangible assets, are stated at cost, less accumulated amortization and accumulated impairment losses. Indefinite-lived intangible assets are composed of trademarks for which there is no foreseeable limit of the period over which they are expected to generate net cash inflows. Definite-lived intangible assets, which are primarily composed of customer relationships and computer software and game library, are capitalized and amortized on a straight-line basis over their estimated economic lives. Estimated useful lives are determined considering the period the assets are expected to contribute to future cash flows. Amortization of software-related intangibles is included in cost of services and cost of product sales and amortization of other intangible assets is included in selling, general and administrative expenses in the consolidated statement of operations. Indefinite-lived intangible assets other than goodwill are tested for impairment annually, in the fourth quarter, or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. We first perform a qualitative assessment to determine whether it is more likely than not that the fair value of indefinite-lived intangible assets are less than their carrying amount and whether the quantitative analysis is necessary. The quantitative analysis compares the fair value of indefinite-lived intangible assets to their carrying amount and an impairment loss is recognized when the carrying amount exceeds the fair value. Capitalized Software Development Costs Costs incurred in the development of our externally-sold software products are expensed as incurred, except certain software development costs eligible for capitalization. Software development costs incurred subsequent to establishing technological feasibility and through the general release of the software products are capitalized. Capitalized costs are amortized over the products’ estimated economic life to cost of product sales in the consolidated statements of operations. Costs incurred during the application development phase of software for services provided to customers are capitalized as internal-use software and amortized over the useful life to cost of services in the consolidated statements of operations. Costs incurred during the application development of software for internal use, and not for use in services provided to customers, are capitalized and amortized over the useful life to selling, general and administrative expenses in the consolidated statements of operations. Upfront License Fees We periodically make long-term investments in contracts with customers and obtain licenses to supply products and services to our customers. As consideration, we pay license fees, which are classified as other non-current assets in the consolidated balance sheets. We recognize the amortization of the license fees as a reduction of service revenue over the estimated economic life of the license term. This method reflects the pattern in which economic benefits are expected to be realized. The recoverability of each payment is subject to significant estimates about future revenues related to the contracts’ future cash flows. We evaluate these assets for impairment and update amortization rates on an agreement by agreement basis. The assets are reviewed for impairment whenever events or changes in circumstances indicate their carrying amount may not be recoverable. In periods in which payments are made to the customer, we classify the payment as a cash outflow from operating activities in the consolidated statements of cash flows. Jackpot Accounting We incur costs to fund jackpots and accrue jackpot liabilities with every wager on devices connected to a WAP system. Jackpot liabilities are estimated based on the size of the jackpot, the number of WAP units in service, variations and volume of play, and interest rate movements. Jackpots are generally payable to winners immediately, in the case of instant wins, or in equal annual installments over 19 to 25 years. Winners may elect to receive a lump sum payment for the present value of the jackpot discounted at applicable interest rates in lieu of periodic annual installments. Jackpot liabilities are composed of payments due to previous winners, and amounts due to future winners of jackpots not yet won. Liabilities due to previous winners for periodic payments are carried at the accreted cost of a qualifying U.S. government or agency annuity investment that may be purchased at the time of the jackpot win. If the periodic liability is not initially funded with an annuity investment, it is discounted and accreted using the risk-free rate at the time of the jackpot win. Liabilities due to future winners are recorded at the present value of the estimated amount of jackpots not yet won. We estimate the present value of these liabilities using current market rates, weighted with historical lump sum payout election ratios. Based on the most recent historical patterns, approximately 95% of winners will elect the lump sum payment option. The current portion of these liabilities are estimated based on historical experience with winner payment elections, in conjunction with the theoretical projected number of jackpots. Legal and Other Contingencies Loss contingency provisions arising from a legal proceeding or claim are recorded for probable and estimable losses at the best estimate of a loss, or when a best estimate cannot be made, at the minimum estimated loss, the determination of which requires significant judgment. If it is reasonably possible but not probable that a liability has been incurred, or if the amount of a probable loss cannot be reasonably estimated, the amount or range of estimated loss is disclosed, if material. We evaluate our provisions for legal contingencies at least quarterly and, as appropriate, establish new provisions or adjust existing provisions to reflect the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings, and other relevant events and developments, the advice of counsel, and the assumptions and judgment of management. Legal costs are expensed as incurred. Treasury Stock We account for treasury stock acquisitions using the cost method. We account for the retirement of treasury stock by deducting its par value from common stock and reflecting any excess of cost over par value as a deduction from additional paid-in capital in the consolidated balance sheets. Fair Value Measurements We account for certain financial assets and liabilities at fair value. Financial assets and liabilities are categorized, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the use of observable inputs and the lowest priority to the use of unobservable inputs. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. These levels are as follows: • Level 1 - inputs are based upon unadjusted quoted prices for identical instruments in active markets • Level 2 - inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the instruments • Level 3 - inputs are unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability Derivative Financial Instruments We use derivative financial instruments for the management of foreign currency risks and interest rate risks. We do not enter into derivatives for speculative purposes. Derivatives are recognized as either assets or liabilities in the consolidated balance sheet at fair value. All derivatives are recorded gross, except netting of foreign exchange contracts and counterparty netting of interest receivable and payable related to interest rate swaps, as applicable. The accounting for changes in the fair value of a derivative depends on the nature of the hedge and the hedge effectiveness. Derivative gains and losses are reported in the consolidated statements of cash flows consistent with the classification of the cash flows from the underlying hedged items. For derivative instruments designated as cash flow hedges, gains and losses are recorded in other comprehensive income (loss) and are subsequently reclassified when the hedged item affects earnings. At that time, the amount is reclassified from other comprehensive income (loss) to the same income statement line as the earnings effect of the hedged item. For derivative instruments designated as fair value hedges, changes in fair value are recorded in interest expense and are offset by changes in the fair value of the underlying debt instrument due to changes in the benchmark interest rate. In the event the derivative instruments are subsequently de-designated as hedges, the change in fair value is recognized in interest expense, net in the consolidated statements of operations with no corresponding offset to debt. For derivative instruments designated as net investment hedges, the spot portion of the derivative gain or loss is reported in foreign currency translation within other comprehensive income (loss) to offset any gains or losses on translation of the net investment in the subsidiary until the net investment is sold or liquidated, at which point the amounts are reclassified to earnings. All other components of the derivative fair value will be reported as either interest income or interest expense, on an amortized basis. Derivative instruments not designated as hedges are recognized in the consolidated balance sheet at fair value with the changes in fair value recorded in foreign exchange ( |
Discontinued Operations and Ass
Discontinued Operations and Assets Held for Sale | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations and Assets Held for Sale | Discontinued Operations and Assets Held for Sale On December 7, 2020, the Parent announced that its wholly-owned subsidiary, IGT Lottery S.p.A. (formerly Lottomatica Holding S.r.l.), had entered into a definitive agreement to sell one hundred percent of the share capital of Lottomatica Videolot Rete S.p.A. and Lottomatica Scommesse S.r.l., the members of the IGT group which conducted its Italian B2C gaming machine, sports betting, and digital gaming businesses to Gamenet Group S.p.A. for a cash sale price of €950 million ( €725 million of which was paid at closing, €100 million of which was paid on August 5, 2021, and the remaining €125 million of which is payable on September 30, 2022) . On May 10, 2021, the Company completed the sale and used the funds received at closing to pay transaction expenses and partially fund the May 20, 2021 full redemption of the 4.750% Senior Secured Euro Notes due February 2023 through the exercise of the make-whole call option. The consideration received, net of $139 million of cash and restricted cash transferred, was $1.0 billion and resulted in a pre-tax gain on sale of $396 million ($391 million net of tax). Summarized financial information for discontinued operations is shown below: For the year ended December 31, ($ in millions) 2021 2020 2019 Total revenue 74 429 778 Operating income (1) 24 51 159 Income from discontinued operations before provision for (benefit from) income taxes 23 43 157 (Benefit from) provision for income taxes on discontinued operations (1) 7 42 Gain on sale of discontinued operations before provision for income taxes 396 — — Provision for income taxes on sale of discontinued operations 5 — — Income from discontinued operations 415 37 114 Less: Net (loss) income attributable to non-controlling interests from discontinued operations (2) (5) 5 Income from discontinued operations attributable to IGT PLC 417 41 110 (1) Includes depreciation and amortization of $95 million and $100 million for the years ended 2020 and 2019, respectively. There was no depreciation and amortization in 2021. The Company has continuing involvement with the businesses via a transition services agreement (“TSA”). As part of the TSA, the Company provides various telecommunications, information technology, and back-office services for which the Company will continue to receive compensation. These services generally expire after no more than three years. The following represents the major classes of assets and liabilities held for sale as part of our discontinued operations: December 31, ($ in millions) 2020 Assets: Trade and other receivables, net 62 Other current assets 58 Systems, equipment and other assets related to contracts, net 86 Goodwill 520 Intangible assets, net 55 Other non-current assets 52 Assets held for sale 833 Liabilities: Accounts payable 63 Other current liabilities 164 Other non-current liabilities 23 Liabilities held for sale 250 The Company allocated $520 million of goodwill to discontinued operations using a relative fair value approach. Prior to the allocation to discontinued operations, the goodwill was included within our Global Gaming segment. At December 31, 2021 and 2020, there were $4 million and $5 million, respectively, of other disposal groups that meet the requirements to be classified as held for sale included in assets held for sale in our consolidated balance sheets. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following tables summarize revenue disaggregated by business segment and the source of the revenue for the years ended December 31, 2021, 2020, and 2019: For the year ended December 31, 2021 ($ in millions) Global Lottery Global Gaming Digital & Betting Total Operating and facilities management contracts 2,363 — — 2,363 Gaming terminal services — 424 — 424 Digital and betting services — — 163 163 Systems, software, and other 327 206 — 534 Service revenue 2,690 630 163 3,483 Lottery products 123 — — 123 Gaming terminals — 339 — 339 Other — 143 1 144 Product sales 123 482 1 606 Total revenue 2,812 1,112 165 4,089 For the year ended December 31, 2020 ($ in millions) Global Lottery Global Gaming Digital & Betting Total Operating and facilities management contracts 1,744 — — 1,744 Gaming terminal services — 298 — 298 Digital and betting services — — 114 114 Systems, software, and other 299 186 — 484 Service revenue 2,043 483 114 2,640 Lottery products 121 — — 121 Gaming terminals — 205 — 205 Other — 148 1 149 Product sales 121 354 1 476 Total revenue 2,164 837 115 3,115 For the year ended December 31, 2019 ($ in millions) Global Lottery Global Gaming Digital & Betting Total Operating and facilities management contracts 1,931 — — 1,931 Gaming terminal services — 568 — 568 Digital and betting services — — 76 76 Systems, software, and other 252 274 — 527 Service revenue 2,183 842 76 3,101 Lottery products 110 — — 110 Gaming terminals — 581 — 581 Other — 225 15 240 Product sales 110 806 15 931 Total revenue 2,293 1,648 91 4,032 Sources of Revenue Service Revenue Service revenue is derived from the following sources: • Operating and facilities management contracts; • Gaming terminal services; • Digital and betting services; and • Systems, software, and other Operating and Facilities Management Contracts – Global Lottery Our revenue from operating contracts is derived primarily from long-term exclusive operating licenses in Italy. Under operating contracts, we manage all the activities along the lottery value chain including collecting wagers, paying out prizes, managing all accounting and other back-office functions, running advertising and promotions, operating data transmission networks and processing centers, training staff, providing retailers with assistance, and supplying materials for the game. In most cases, the arrangement is accounted for as a single performance obligation composed of a series of distinct services that are substantially the same and have the same pattern of transfer (i.e., distinct days of service). Under operating contracts, we typically satisfy the performance obligation and recognize revenue over time because the customer simultaneously receives and consumes the benefits provided as we perform the services. The amount of consideration to which we are typically entitled is variable based on a percentage of sales. Revenue is typically recognized in the amount that we have the right to invoice the customer as this corresponds directly with the value to the customer of our performance completed to date. In arrangements where we are performing services on behalf of the government and the government is considered our customer, revenue is recognized net of prize payments, taxes, retailer commissions, and remittances to state authorities. Under operating contracts, we are generally required to pay an upfront license fee. Refer to the Upfront License Fees policy above for further details. Our revenue from facilities management contracts (“FMC”) is generated by assembling, installing, and operating the online lottery system and related point-of-sale equipment. Under a typical FMC, we maintain ownership of the technology and are responsible for capital investments throughout the duration of the contract. FMCs typically include a wide range of support services that are provided throughout the contract and are part of the integrated solution that the customer has contracted to obtain. In most cases, the arrangement is accounted for as a single performance obligation composed of a series of distinct services that are substantially the same and that have the same pattern of transfer. Under FMCs, we typically satisfy the performance obligation and recognize revenue over time because the customer simultaneously receives and consumes the benefits provided as we perform the services. The amount of transaction price to which we are entitled is typically variable based on a percentage of sales, although under certain of its agreements, the Company receives fees based on a fixed fee arrangement. Revenue is typically recognized in the amount that we have the right to invoice the customer, as this corresponds directly with the value to the customer of our completed performance. Gaming terminal services – Global Gaming Our revenue from gaming terminal services is generated by providing customers with proprietary land-based gaming systems and equipment under a variety of recurring revenue or lease arrangements, including a percentage of amounts wagered, a percentage of net win, or a fixed daily/monthly fee. Included in gaming terminal services are wide area progressive (“WAP”) systems. WAP systems consist of linked slot machines located in multiple casino properties, connected to a central computer system. WAP systems include a Company-sponsored progressive jackpot that increases with every wager until a player wins the top award combination. Casinos with WAP machines pay a percentage of amounts wagered for services related to the design, assembly, installation, operation, maintenance, and marketing of the WAP systems, as well as funding and administration of Company-sponsored progressive jackpots. A portion of the total fee collected is allocated to the WAP jackpot. Since the jackpot is a payment to the customer, the portion allocated to the jackpot is classified as a reduction of revenue. In some arrangements, there is a single performance obligation composed of a series of distinct services that are substantially the same and that have the same pattern of transfer (i.e., distinct days of service). The amount of transaction price to which we are entitled typically is variable based on a percentage of wagers. This results in revenue recognition that corresponds with the value to the customer for the services transferred in the amount that we have the right to invoice. In other arrangements where the end customer is the player, we record revenue net of prize payouts once the wagering outcome has been determined. Digital and betting services – Digital & Betting We generate revenue from our iGaming solutions by providing gaming operators a license to offer IGT remote game server games on the operator websites and mobile applications. We typically offer customers a usage-based license under which we receive a fee based on the net gaming revenue derived by the operator attributable to the IGT remote game server games. Revenue is typically recognized when the usage occurs. We provide sports betting technology and services to commercial and tribal operators and lotteries in regulated markets, primarily in the U.S. In the service contracts to our U.S. licensed sportsbook operators, we host a sports betting platform and a variety of services including installation, configuration and integration services. For customers who want to have an outsourcing model, we also offer trading services with the inclusion of odds setting and risk management. Under these contracts, we generally record a percentage of net sports revenue over the contractual term. Systems, software, and other – Global Lottery Our lottery contracts generally include other services, including telephone support, software maintenance, hardware maintenance, and the right to receive unspecified upgrades or enhancements on a when-and-if-available basis, and other professional services including software development. Fees earned for other services are generally recognized as service revenue in the period the service is performed (i.e., over the support period). We also develop technology to enable lotteries to offer commercial services over their existing lottery infrastructure or over standalone networks separate from the lottery. Leveraging our distribution network and secure transaction processing, we offer high-volume processing of commercial transactions including prepaid cellular telephone recharges, bill payments, e-vouchers and retail-based programs, electronic tax payments, stamp duty services, prepaid card recharges, and money transfers. These services are primarily offered outside of North America. In most cases, these arrangements are considered to be short in duration. The amount of transaction price that we are typically entitled to is variable based on the number of transactions processed. Revenue is typically recognized in the amount that we have the right to invoice the customer as this corresponds directly with the value to the customer of our completed performance. Systems, software, and other – Global Gaming Our gaming contracts generally include other services, including telephone support, software maintenance, content licensing, royalty fees, hardware maintenance, and the right to receive unspecified updates or enhancements on a when-and-if-available basis, and other professional services. We also generate revenue from other services, including video central system monitoring, system support, and sales or usage-based licensing of intellectual property. Fees earned for other services are generally recognized as service revenue in the period the service is performed (i.e., over the support period). Product Sales Product sales are derived from the following sources: • Lottery products; • Gaming terminals; and • Other Lottery products – Global Lottery Lottery products revenue primarily includes the sale of lottery equipment, lottery systems and printed products. Our revenue from the sale or sales-type lease of lottery systems and equipment typically includes multiple performance obligations, where we assemble, sell, deliver, and install a turnkey system (inclusive of point-of-sale terminals, if applicable) or deliver equipment and license the computer software for a fixed price, and the customer subsequently operates the system or equipment. Our credit terms are predominantly short-term in nature. We also grant extended payment terms under contracts where the sale is typically secured by the related equipment sold. Revenue from the sale of lottery systems and equipment is recognized based upon the contractual terms of each arrangement. These arrangements generally include customer acceptance provisions and general rights to terminate the contract if we are in breach of the contract or at the convenience of the customer. In these arrangements, the performance obligation is satisfied over time if the customer controls the asset as it is created (i.e., when the asset is built at the customer site) or if our performance does not create an asset with an alternative use and we have an enforceable right to payment plus a reasonable profit for performance completed to date. If revenue is not recognized over time, it is generally recognized upon transfer of physical possession of the goods or the satisfaction of customer acceptance provisions. If the transaction includes multiple performance obligations, it is accounted for under arrangements with multiple performance obligations, discussed below. Our other lottery product sales are primarily derived from the production and sales of instant ticket games under multi-year contracts. In these arrangements, the performance obligation is generally satisfied at a point in time (i.e., upon transfer of control of the game tickets to the customer) based on the contractual terms of each arrangement. Gaming terminals – Global Gaming Our revenue from the sale or sales-type lease of gaming terminals includes embedded game content, machine related equipment, licensing and royalty fees, and component parts. Our credit terms are predominantly short-term in nature. We also grant extended payment terms under contracts where the sale is typically secured by the related equipment sold. Revenue from the sale of gaming machines is recognized based upon the contractual terms of each arrangement, but predominantly upon transfer of physical possession of the goods or the lapse of customer acceptance provisions. If the sale of gaming machines includes multiple performance obligations, these arrangements are accounted for under arrangements with multiple performance obligations, discussed below. Other – Global Gaming Other gaming product revenue is primarily comprised of gaming system sales, content licensing, perpetual or long-term software licenses, non-machine related equipment and component parts (including game themes and electronic conversion kits). Our revenue from the sale of gaming systems typically includes multiple performance obligations, where we sell, deliver, and install a turnkey system or deliver equipment and license the computer software for a fixed price, and the customer subsequently operates the system. These arrangements generally include customer acceptance provisions and general rights to terminate the contract if we are in breach of the contract. Such arrangements include hardware, software, and professional services. In these arrangements, the performance obligation is generally satisfied upon transfer of physical possession of the goods or the satisfaction of customer acceptance provisions. Other – Digital & Betting Other digital and betting product revenue is primarily comprised of perpetual software licenses, the sale of equipment, and component parts. Contract Balances Information about contract assets and contract liabilities is as follows: ($ in millions) December 31, 2021 December 31, 2020 Balance Sheet Classification Contract assets: Current 49 53 Other current assets Non-current 69 75 Other non-current assets 118 128 Contract liabilities: Current (104) (108) Other current liabilities Non-current (47) (62) Other non-current liabilities (151) (170) The amount of revenue recognized during the years ended December 31, 2021, 2020, and 2019 that was included in the contract liabilities balance at the beginning of each period was $107 million, $56 million, and $51 million, respectively . Transaction Price Allocated to Remaining Performance Obligations At December 31, 2021, the transaction price allocated to unsatisfied performance obligations for contracts expected to be greater than one year, or performance obligations for which we do not have a right to consideration from the customer in the amount that corresponds to the value to the customer for our performance completed to date, variable consideration which is not accounted for in accordance with the sales-based or usage-based royalties guidance, or contracts which are not wholly unperformed, is approximately $1.1 billion. Of this amount, we expect to recognize as revenue approximately 28% within the next 12 months, approximately 34% between 13 and 36 months, approximately 22% between 37 and 60 months, and the remaining balance through December 31, 2031. |
Trade and Other Receivables, ne
Trade and Other Receivables, net | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Trade and Other Receivables, net | Trade and Other Receivables, net Trade and other receivables are recorded at amortized cost, net of allowance for credit losses, and represent a contractual right to receive money on demand or on fixed or determinable dates that are typically short-term with payment due within 90 days or less. December 31, ($ in millions) 2021 2020 Trade and other receivables, gross 917 862 Allowance for credit losses (15) (16) Trade and other receivables, net 903 846 The following table presents the activity in the allowance for credit losses: December 31, ($ in millions) 2021 2020 2019 Balance at beginning of year (16) (22) (29) (Provisions) recoveries, net (2) (6) 3 Amounts written off as uncollectible 2 10 3 Other (1) — 3 — Balance at end of year (15) (16) (22) (1) Includes the effect of the adoption of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments (“ASC 326”) in 2020. We enter into various factoring agreements with third-party financial institutions to sell certain of our trade receivables. We factored trade receivables of $1.1 billion and $1.5 billion during the years ended December 31, 2021 and 2020, respectively, under these factoring arrangements, which reduced trade receivables. The cash received from these arrangements is reflected in net cash provided by operating activities in the consolidated statements of cash flows. In certain of these factoring arrangements, for ease of administration, we will collect customer payments related to the factored trade receivables, which we then remit to the financial institutions. At December 31, 2021 and 2020, we had $57 million and $110 million, respectively, that was collected on behalf of the financial institutions and recorded as restricted cash and cash equivalents and other current liabilities in the consolidated balance sheets. The net cash flows relating to these collections are reported in net cash used in financing activities in the consolidated statements of cash flows. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories December 31, ($ in millions) 2021 2020 Raw materials 107 86 Work in progress 25 23 Finished goods 78 103 Inventories, gross 211 212 Obsolescence reserve (28) (43) Inventories, net 183 169 The following table presents the activity in the obsolescence reserve: December 31, ($ in millions) 2021 2020 2019 Balance at beginning of year (43) (34) (40) Provisions, net (1) (34) (29) Amounts written off 11 24 23 Other 4 1 12 Balance at end of year (28) (43) (34) |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other Current Assets December 31, ($ in millions) Notes 2021 2020 Customer financing receivables, net 170 232 Other receivables 158 8 Income taxes receivable 64 45 Prepaid expenses 54 39 Contract assets 4 49 53 Value-added tax receivable 28 46 Other 67 55 589 480 Other Non-Current Assets December 31, ($ in millions) Notes 2021 2020 Upfront license fees, net: Italian Scratch & Win 680 845 Italian Lotto 380 516 New Jersey 66 74 Indiana 9 10 1,134 1,446 Customer financing receivables, net 92 84 Contract assets 4 69 75 Deferred income taxes 17 39 33 Finance lease right-of-use assets 11 29 33 Other 66 103 1,429 1,774 Upfront License Fees The upfront license fees are being amortized on a straight-line basis as follows: Upfront License Fee License Term Amortization Start Date Italian Scratch & Win 9 years October 2019 Italian Lotto 9 years December 2016 New Jersey 15 years, 9 months October 2013 Indiana 15 years July 2013 Yeonama Holdings Co. Limited In May 2019, we sold our ownership interest in Yeonama Holdings Co. Limited, an investment previously included within other non-current assets in the consolidated balance sheet. The sale resulted in a pre-tax gain of €26 million ($29 million at the May 31, 2019 exchange rate), which is classified in other expense (income), net on the consolidated statements of operations for the year ended December 31, 2019. Customer Financing Receivables Customers' payment terms for customer financing receivables are confirmed with a written financing contract, lease contract, or promissory note and a security agreement is typically signed by the parties granting the Company a security interest in the related products sold or leased. Customer financing interest income is recognized based on market rates prevailing at issuance. Customer financing receivables are recorded at amortized cost, net of any allowance for credit losses, and are classified in the consolidated balance sheets as follows: December 31, 2021 ($ in millions) Current Assets Non-Current Assets Total Customer financing receivables, gross 220 111 332 Allowance for credit losses (51) (20) (71) Customer financing receivables, net 170 92 261 December 31, 2020 ($ in millions) Current Assets Non-Current Assets Total Customer financing receivables, gross 275 91 365 Allowance for credit losses (43) (7) (50) Customer financing receivables, net 232 84 316 The following table presents the activity in the allowance for credit losses: December 31, ($ in millions) 2021 2020 2019 Balance at beginning of year (50) (32) (29) Provisions, net (29) (37) (2) Amounts written off as uncollectible 8 24 — Other (1) — (5) — Balance at end of year (71) (50) (32) (1) Includes the effect of the adoption of ASC 326 in 2020. The Company’s customer financing receivable portfolio is composed of customers primarily within the Global Gaming business segment. We internally assess the credit quality of customer financing receivables using a number of factors, including, but not limited to, credit scores obtained from external providers, trade references, bank references, and historical experience. Risk profiles differ based on customer location and are pooled as North America, Latin America and the Caribbean (“LAC”), and Europe, Middle East and Africa and Asia Pacific (“EMEA & APAC”). In 2021, we combined the EMEA & APAC regions as these customers have similar credit risk profiles and we apply the same expected loss rates when determining the allowance requirement. During the year ended December 31, 2021 and 2020, customer financing receivables, primarily within LAC, of $8 million and $24 million, respectively, were written off as uncollectible due to the impacts of COVID-19. Additionally, due to the extended duration of the COVID-19 induced shutdowns in LAC and potential future impacts on our customers caused by COVID-19, we renegotiated payment plans to accommodate for the shutdowns and adjusted expected loss rates, increasing our allowance for credit losses during the year ended December 31, 2021 and 2020. At December 31, 2021 and 2020, we had $58 million and $43 million, respectively, of credit loss allowances associated with the LAC customer financing receivables. The customer financing receivables at amortized cost by year of origination and the geography credit quality indicator at December 31, 2021 are as follows: Year of Origination ($ in millions) 2021 2020 2019 2018 Prior Total North America 31 26 7 — 2 67 LAC 34 14 88 28 10 174 EMEA & APAC 46 13 16 13 2 91 111 54 112 41 14 332 The past due balance, which represents installments that are one day or more past their contractual due date, of customer financing receivables at amortized cost and the geography credit quality indicator at December 31, 2021 is as follows: ($ in millions) North America LAC EMEA & APAC Total Past due 2 77 17 96 Short-term portion not yet due 35 47 42 124 Long-term portion not yet due 30 50 32 111 67 174 91 332 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Our significant financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 and 2020 are as follows: December 31, 2021 ($ in millions) Balance Sheet Location Level 1 Level 2 Level 3 Total Fair Value Assets: Derivative assets Other current and other non-current assets — 3 — 3 Equity investments Other non-current assets 6 — — 6 Liabilities: Derivative liabilities Other current and other non-current liabilities — 2 — 2 December 31, 2020 ($ in millions) Balance Sheet Location Level 1 Level 2 Level 3 Total Fair Value Assets: Derivative assets Other current and other non-current assets — 11 — 11 Equity investments Other non-current assets 6 — — 6 Liabilities: Derivative liabilities Other current and other non-current liabilities — 10 — 10 Valuation Techniques Derivative assets and liabilities classified as Level 2 were derived from quoted market prices for similar instruments or by discounting the future cash flows with adjustments for credit risk as appropriate. All significant inputs were derived from or corroborated by observable market data including current forward exchange rates and LIBOR rates, among others. At December 31, 2021 and 2020, the carrying amounts for cash and cash equivalents, restricted cash, trade and other receivables, other current assets, accounts payable, and other current liabilities approximated their estimated fair values because of their short-term nature. Financial Assets and Liabilities Not Carried at Fair Value The carrying amounts and fair value hierarchy classification of our significant financial assets and liabilities not carried at fair value as of December 31, 2021 and 2020 are as follows: December 31, 2021 ($ in millions) Carrying Level 1 Level 2 Level 3 Total Fair Value Assets: Customer financing receivables, net 261 — — 245 245 Equity investments 11 — — 11 11 Liabilities: Jackpot liabilities 196 — — 184 184 Debt (1) 6,477 — 6,792 — 6,792 December 31, 2020 ($ in millions) Carrying Level 1 Level 2 Level 3 Total Fair Value Assets: Customer financing receivables, net 316 — — 313 313 Equity investments 12 — — 12 12 Liabilities: Jackpot liabilities 219 — — 211 211 Debt (1) 8,243 — 8,702 — 8,702 (1) Excludes short-term borrowings and swap adjustments. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We use selected derivative hedging instruments, principally foreign currency forward contracts and interest rate swaps, for the purpose of managing currency risks and interest rate risk arising from our operations and sources of financing. Cash Flow Hedges The notional amount of foreign currency forward contracts, designated as cash flow hedges, outstanding at December 31, 2021 and 2020 were $42 million and $62 million, respectively. The amount recorded within other comprehensive income (loss) at December 31, 2021 is expected to impact the consolidated statement of operations in 2022. Fair Value Hedges In September 2015, we executed $625 million notional amount of interest rate swaps that effectively converted $625 million of the 6.250% Senior Secured U.S. Dollar Notes due February 2022 from fixed interest rate debt to variable rate debt. In March 2021 and August 2020, $425 million and $200 million notional amount of the interest rate swaps, respectively, were early terminated. Net Investment Hedges In October 2018, we executed $200 million notional amount of cross-currency swaps that are a hedge of foreign exchange risk associated with a net investment in foreign operations. In March 2021 and March 2020, $100 million notional amount of the cross-currency swaps were early terminated in each respective month. Derivatives Not Designated as Hedging Instruments The notional amount of foreign currency forward contracts, not designated as hedging instruments, outstanding at December 31, 2021 and 2020 was $283 million and $295 million, respectively. Refer to Note 19 - Shareholders’ Equity - Accumulated Other Comprehensive Income for further information. |
Systems, Equipment and Other As
Systems, Equipment and Other Assets Related to Contracts, net and Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |
Systems, Equipment and Other Assets Related to Contracts, net and Property Plant and Equipment, net | Systems, Equipment and Other Assets Related to Contracts, net and Property, Plant and Equipment, net Systems & Equipment and PPE, net consist of the following: Systems & Equipment, net PPE, net December 31, December 31, ($ in millions) 2021 2020 2021 2020 Land — — 1 1 Buildings — 2 58 69 Terminals and systems 2,479 2,615 — — Furniture and equipment 138 150 255 259 Construction in progress 75 77 10 15 2,691 2,844 324 344 Accumulated depreciation (1,754) (1,776) (205) (212) 937 1,068 119 132 The estimated useful lives of assets are as follows: Asset Estimated life in years Systems & Equipment Buildings 40 Terminals and systems - lottery Generally do not exceed 10 years Terminals and systems - gaming 3-5 Furniture and equipment Generally do not exceed 10 years PPE Buildings 40 Furniture and equipment 5-10 Leasehold improvements are amortized over the shorter of the corresponding lease term or estimated useful life. Gain on Sale of Assets to Distributor |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Lessee We have operating and finance leases for real estate (warehouses, office space, data centers), vehicles, communication equipment, and other equipment. Many of our real estate leases include one or more options to renew, while some include termination options. Certain vehicle and equipment leases include residual value guarantees and options to purchase the leased asset. Many of our real estate leases include variable payments for maintenance, real estate taxes, and insurance that are determined based on the actual costs incurred by the landlord. The classification of our operating and finance leases in the consolidated balance sheets is as follows: December 31, ($ in millions) Balance Sheet Classification 2021 2020 Assets: Operating ROU asset Operating lease right-of-use assets 283 288 Finance ROU asset, net (1) Other non-current assets 29 33 Total lease assets 312 321 Liabilities: Operating lease liability, current Other current liabilities 39 44 Finance lease liability, current Other current liabilities 10 11 Operating lease liability, non-current Operating lease liabilities 269 266 Finance lease liability, non-current Other non-current liabilities 27 31 Total lease liabilities 344 352 (1) Finance ROU assets are recorded net of accumulated amortization of $24 million and $16 million at December 31, 2021 and 2020, respectively. Weighted-average lease terms and discount rates are as follows: December 31, 2021 2020 2019 Weighted-Average Remaining Lease Term (in years) Operating leases 8.47 8.32 8.80 Finance leases 4.73 5.13 6.01 Weighted-Average Discount Rate Operating leases 6.71 % 7.01 % 7.74 % Finance leases 4.98 % 5.16 % 5.45 % Components of lease expense are as follows: For the year ended December 31, ($ in millions) 2021 2020 2019 Operating lease costs 71 72 76 Finance lease costs (1) 13 11 10 Variable lease costs (2) 23 23 22 (1) Includes amortization of ROU assets of $11 million, $9 million, and $8 million for the years ended December 31, 2021, 2020, and 2019, respectively and interest on lease liabilities of $2 million, $2 million, and $2 million, f or the years ended December 31, 2021, 2020, and 2019, respectively. (2) Includes immaterial amounts related to short-term leases and sublease income. Maturities of operating and finance lease liabilities at December 31, 2021 are as follows ($ in millions): Year Operating Leases Finance Leases Total (1) 2022 57 11 69 2023 52 9 60 2024 48 6 55 2025 44 6 49 2026 39 5 44 Thereafter 170 4 174 Total lease payments 410 41 451 Less: Imputed interest (102) (5) (107) Present value of lease liabilities 307 37 344 (1) The maturities above exclude leases that have not yet commenced. We have committed rental payments of $8.9 million for leases that will commence in 2022 with lease terms ranging from 7-9 years. Cash flow information and non-cash activity related to leases is as follows: For the year ended December 31, ($ in millions) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating and finance leases 67 68 74 Finance cash flows from finance leases 13 10 8 Non-cash activity: ROU assets obtained in exchange for lease obligations (net of early terminations) Operating leases 5 34 13 Finance leases 7 6 9 Lessor We have various arrangements for lottery and gaming equipment under which we are the lessor. Our lease arrangements typically have lease terms ranging from one month to 4 years. These leases generally meet the criteria for operating lease classification, as the lease payments are typically variable based on a percentage of sales, a percentage of amounts wagered, net win, or a daily fee per active gaming terminal. Our leases generally do not contain variable payments that are dependent on an index or rate. We provide lessees with the option to extend the lease, which is considered when evaluating lease classification. Lease income from operating leases is included within service revenue in the consolidated statements of operations. Operating lease income was approximately 6%, 6%, and 7% of total revenue for the years ended December 31, 2021, 2020, and 2019, respectively. Our sales-type lease arrangements typically have lease terms ranging from one year to 10 years. We provide lessees with the option to extend the lease, which is considered when evaluating lease classification. Lease income from sales-type leases is included within product sales in the consolidated statements of operations. Total sales-type lease income was approximately 1% of total revenue for each of the years ended December 31, 2021, 2020, and 2019. Sales-type lease receivables are included within customer financing receivables, net, which are a component of other current assets and other non-current assets within the consolidated balance sheets. Additional information on customer financing receivables is included in Note 7 – Other Assets . |
Leases | Leases Lessee We have operating and finance leases for real estate (warehouses, office space, data centers), vehicles, communication equipment, and other equipment. Many of our real estate leases include one or more options to renew, while some include termination options. Certain vehicle and equipment leases include residual value guarantees and options to purchase the leased asset. Many of our real estate leases include variable payments for maintenance, real estate taxes, and insurance that are determined based on the actual costs incurred by the landlord. The classification of our operating and finance leases in the consolidated balance sheets is as follows: December 31, ($ in millions) Balance Sheet Classification 2021 2020 Assets: Operating ROU asset Operating lease right-of-use assets 283 288 Finance ROU asset, net (1) Other non-current assets 29 33 Total lease assets 312 321 Liabilities: Operating lease liability, current Other current liabilities 39 44 Finance lease liability, current Other current liabilities 10 11 Operating lease liability, non-current Operating lease liabilities 269 266 Finance lease liability, non-current Other non-current liabilities 27 31 Total lease liabilities 344 352 (1) Finance ROU assets are recorded net of accumulated amortization of $24 million and $16 million at December 31, 2021 and 2020, respectively. Weighted-average lease terms and discount rates are as follows: December 31, 2021 2020 2019 Weighted-Average Remaining Lease Term (in years) Operating leases 8.47 8.32 8.80 Finance leases 4.73 5.13 6.01 Weighted-Average Discount Rate Operating leases 6.71 % 7.01 % 7.74 % Finance leases 4.98 % 5.16 % 5.45 % Components of lease expense are as follows: For the year ended December 31, ($ in millions) 2021 2020 2019 Operating lease costs 71 72 76 Finance lease costs (1) 13 11 10 Variable lease costs (2) 23 23 22 (1) Includes amortization of ROU assets of $11 million, $9 million, and $8 million for the years ended December 31, 2021, 2020, and 2019, respectively and interest on lease liabilities of $2 million, $2 million, and $2 million, f or the years ended December 31, 2021, 2020, and 2019, respectively. (2) Includes immaterial amounts related to short-term leases and sublease income. Maturities of operating and finance lease liabilities at December 31, 2021 are as follows ($ in millions): Year Operating Leases Finance Leases Total (1) 2022 57 11 69 2023 52 9 60 2024 48 6 55 2025 44 6 49 2026 39 5 44 Thereafter 170 4 174 Total lease payments 410 41 451 Less: Imputed interest (102) (5) (107) Present value of lease liabilities 307 37 344 (1) The maturities above exclude leases that have not yet commenced. We have committed rental payments of $8.9 million for leases that will commence in 2022 with lease terms ranging from 7-9 years. Cash flow information and non-cash activity related to leases is as follows: For the year ended December 31, ($ in millions) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating and finance leases 67 68 74 Finance cash flows from finance leases 13 10 8 Non-cash activity: ROU assets obtained in exchange for lease obligations (net of early terminations) Operating leases 5 34 13 Finance leases 7 6 9 Lessor We have various arrangements for lottery and gaming equipment under which we are the lessor. Our lease arrangements typically have lease terms ranging from one month to 4 years. These leases generally meet the criteria for operating lease classification, as the lease payments are typically variable based on a percentage of sales, a percentage of amounts wagered, net win, or a daily fee per active gaming terminal. Our leases generally do not contain variable payments that are dependent on an index or rate. We provide lessees with the option to extend the lease, which is considered when evaluating lease classification. Lease income from operating leases is included within service revenue in the consolidated statements of operations. Operating lease income was approximately 6%, 6%, and 7% of total revenue for the years ended December 31, 2021, 2020, and 2019, respectively. Our sales-type lease arrangements typically have lease terms ranging from one year to 10 years. We provide lessees with the option to extend the lease, which is considered when evaluating lease classification. Lease income from sales-type leases is included within product sales in the consolidated statements of operations. Total sales-type lease income was approximately 1% of total revenue for each of the years ended December 31, 2021, 2020, and 2019. Sales-type lease receivables are included within customer financing receivables, net, which are a component of other current assets and other non-current assets within the consolidated balance sheets. Additional information on customer financing receivables is included in Note 7 – Other Assets . |
Leases | Leases Lessee We have operating and finance leases for real estate (warehouses, office space, data centers), vehicles, communication equipment, and other equipment. Many of our real estate leases include one or more options to renew, while some include termination options. Certain vehicle and equipment leases include residual value guarantees and options to purchase the leased asset. Many of our real estate leases include variable payments for maintenance, real estate taxes, and insurance that are determined based on the actual costs incurred by the landlord. The classification of our operating and finance leases in the consolidated balance sheets is as follows: December 31, ($ in millions) Balance Sheet Classification 2021 2020 Assets: Operating ROU asset Operating lease right-of-use assets 283 288 Finance ROU asset, net (1) Other non-current assets 29 33 Total lease assets 312 321 Liabilities: Operating lease liability, current Other current liabilities 39 44 Finance lease liability, current Other current liabilities 10 11 Operating lease liability, non-current Operating lease liabilities 269 266 Finance lease liability, non-current Other non-current liabilities 27 31 Total lease liabilities 344 352 (1) Finance ROU assets are recorded net of accumulated amortization of $24 million and $16 million at December 31, 2021 and 2020, respectively. Weighted-average lease terms and discount rates are as follows: December 31, 2021 2020 2019 Weighted-Average Remaining Lease Term (in years) Operating leases 8.47 8.32 8.80 Finance leases 4.73 5.13 6.01 Weighted-Average Discount Rate Operating leases 6.71 % 7.01 % 7.74 % Finance leases 4.98 % 5.16 % 5.45 % Components of lease expense are as follows: For the year ended December 31, ($ in millions) 2021 2020 2019 Operating lease costs 71 72 76 Finance lease costs (1) 13 11 10 Variable lease costs (2) 23 23 22 (1) Includes amortization of ROU assets of $11 million, $9 million, and $8 million for the years ended December 31, 2021, 2020, and 2019, respectively and interest on lease liabilities of $2 million, $2 million, and $2 million, f or the years ended December 31, 2021, 2020, and 2019, respectively. (2) Includes immaterial amounts related to short-term leases and sublease income. Maturities of operating and finance lease liabilities at December 31, 2021 are as follows ($ in millions): Year Operating Leases Finance Leases Total (1) 2022 57 11 69 2023 52 9 60 2024 48 6 55 2025 44 6 49 2026 39 5 44 Thereafter 170 4 174 Total lease payments 410 41 451 Less: Imputed interest (102) (5) (107) Present value of lease liabilities 307 37 344 (1) The maturities above exclude leases that have not yet commenced. We have committed rental payments of $8.9 million for leases that will commence in 2022 with lease terms ranging from 7-9 years. Cash flow information and non-cash activity related to leases is as follows: For the year ended December 31, ($ in millions) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating and finance leases 67 68 74 Finance cash flows from finance leases 13 10 8 Non-cash activity: ROU assets obtained in exchange for lease obligations (net of early terminations) Operating leases 5 34 13 Finance leases 7 6 9 Lessor We have various arrangements for lottery and gaming equipment under which we are the lessor. Our lease arrangements typically have lease terms ranging from one month to 4 years. These leases generally meet the criteria for operating lease classification, as the lease payments are typically variable based on a percentage of sales, a percentage of amounts wagered, net win, or a daily fee per active gaming terminal. Our leases generally do not contain variable payments that are dependent on an index or rate. We provide lessees with the option to extend the lease, which is considered when evaluating lease classification. Lease income from operating leases is included within service revenue in the consolidated statements of operations. Operating lease income was approximately 6%, 6%, and 7% of total revenue for the years ended December 31, 2021, 2020, and 2019, respectively. Our sales-type lease arrangements typically have lease terms ranging from one year to 10 years. We provide lessees with the option to extend the lease, which is considered when evaluating lease classification. Lease income from sales-type leases is included within product sales in the consolidated statements of operations. Total sales-type lease income was approximately 1% of total revenue for each of the years ended December 31, 2021, 2020, and 2019. Sales-type lease receivables are included within customer financing receivables, net, which are a component of other current assets and other non-current assets within the consolidated balance sheets. Additional information on customer financing receivables is included in Note 7 – Other Assets . |
Leases | Leases Lessee We have operating and finance leases for real estate (warehouses, office space, data centers), vehicles, communication equipment, and other equipment. Many of our real estate leases include one or more options to renew, while some include termination options. Certain vehicle and equipment leases include residual value guarantees and options to purchase the leased asset. Many of our real estate leases include variable payments for maintenance, real estate taxes, and insurance that are determined based on the actual costs incurred by the landlord. The classification of our operating and finance leases in the consolidated balance sheets is as follows: December 31, ($ in millions) Balance Sheet Classification 2021 2020 Assets: Operating ROU asset Operating lease right-of-use assets 283 288 Finance ROU asset, net (1) Other non-current assets 29 33 Total lease assets 312 321 Liabilities: Operating lease liability, current Other current liabilities 39 44 Finance lease liability, current Other current liabilities 10 11 Operating lease liability, non-current Operating lease liabilities 269 266 Finance lease liability, non-current Other non-current liabilities 27 31 Total lease liabilities 344 352 (1) Finance ROU assets are recorded net of accumulated amortization of $24 million and $16 million at December 31, 2021 and 2020, respectively. Weighted-average lease terms and discount rates are as follows: December 31, 2021 2020 2019 Weighted-Average Remaining Lease Term (in years) Operating leases 8.47 8.32 8.80 Finance leases 4.73 5.13 6.01 Weighted-Average Discount Rate Operating leases 6.71 % 7.01 % 7.74 % Finance leases 4.98 % 5.16 % 5.45 % Components of lease expense are as follows: For the year ended December 31, ($ in millions) 2021 2020 2019 Operating lease costs 71 72 76 Finance lease costs (1) 13 11 10 Variable lease costs (2) 23 23 22 (1) Includes amortization of ROU assets of $11 million, $9 million, and $8 million for the years ended December 31, 2021, 2020, and 2019, respectively and interest on lease liabilities of $2 million, $2 million, and $2 million, f or the years ended December 31, 2021, 2020, and 2019, respectively. (2) Includes immaterial amounts related to short-term leases and sublease income. Maturities of operating and finance lease liabilities at December 31, 2021 are as follows ($ in millions): Year Operating Leases Finance Leases Total (1) 2022 57 11 69 2023 52 9 60 2024 48 6 55 2025 44 6 49 2026 39 5 44 Thereafter 170 4 174 Total lease payments 410 41 451 Less: Imputed interest (102) (5) (107) Present value of lease liabilities 307 37 344 (1) The maturities above exclude leases that have not yet commenced. We have committed rental payments of $8.9 million for leases that will commence in 2022 with lease terms ranging from 7-9 years. Cash flow information and non-cash activity related to leases is as follows: For the year ended December 31, ($ in millions) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating and finance leases 67 68 74 Finance cash flows from finance leases 13 10 8 Non-cash activity: ROU assets obtained in exchange for lease obligations (net of early terminations) Operating leases 5 34 13 Finance leases 7 6 9 Lessor We have various arrangements for lottery and gaming equipment under which we are the lessor. Our lease arrangements typically have lease terms ranging from one month to 4 years. These leases generally meet the criteria for operating lease classification, as the lease payments are typically variable based on a percentage of sales, a percentage of amounts wagered, net win, or a daily fee per active gaming terminal. Our leases generally do not contain variable payments that are dependent on an index or rate. We provide lessees with the option to extend the lease, which is considered when evaluating lease classification. Lease income from operating leases is included within service revenue in the consolidated statements of operations. Operating lease income was approximately 6%, 6%, and 7% of total revenue for the years ended December 31, 2021, 2020, and 2019, respectively. Our sales-type lease arrangements typically have lease terms ranging from one year to 10 years. We provide lessees with the option to extend the lease, which is considered when evaluating lease classification. Lease income from sales-type leases is included within product sales in the consolidated statements of operations. Total sales-type lease income was approximately 1% of total revenue for each of the years ended December 31, 2021, 2020, and 2019. Sales-type lease receivables are included within customer financing receivables, net, which are a component of other current assets and other non-current assets within the consolidated balance sheets. Additional information on customer financing receivables is included in Note 7 – Other Assets . |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During 2021 and 2020, we initiated the following restructuring plans as described below. During 2019, we expanded existing restructuring plans which were initiated in the prior year and were substantially completed by December 31, 2019. 2021 Italian Workforce Redundancies In connection with the sale of our Italian B2C gaming machine, sports betting, and digital gaming businesses, management agreed to provide to the buyer information technology and back-office services for a period of one 2020 Segment Reorganization The 2020 segment reorganization plan was a global initiative that simplified our organizational structure and increased efficiency and effectiveness. During the year ended December 31, 2021 we revised our cost estimates resulting in a $1 million reduction of expense under the plan. Since the plan’s inception, we incurred severance and related employee costs primarily within our Global Lottery and Global Gaming segments and corporate support function totaling $15 million. This plan was substantially completed as of March 31, 2021. 2020 Global Supply Chain Optimization The 2020 global supply chain optimization plan was an initiative that optimized our global supply chain and footprint resulting in a significant reduction to our primary manufacturing operations. During the year ended December 31, 2021 we revised our cost estimates resulting in a $1 million reduction of expense under the plan. Since the plan’s inception, we incurred severance and related employee costs, and other costs of $8 million, primarily within our Global Gaming segment. This plan was substantially completed as of March 31, 2021. 2020 Technology Organization Consolidation The 2020 technology organization consolidation plan was an initiative that realigned and consolidated operations, reduced costs, and improved operational efficiencies within our Technology group. During the year ended December 31, 2021 we revised our cost estimates resulting in a $4 million reduction of expense under the plan. Since the plan’s inception, we incurred severance and related employee costs of $13 million, primarily within our Global Gaming segment. This plan was substantially completed as of December 31, 2021. Rollforward of Restructuring Liability The following table presents the activity in the restructuring liabilities for the above plans for the years ended December 31, 2021 and December 31, 2020: ($ in millions) Severance and Related Employee Costs Other Total Balance at December 31, 2019 — — — 2020 segment reorganization plan expense, net 16 — 16 2020 global supply chain optimization plan expense, net (1) 5 3 8 2020 technology organization consolidation plan expense, net 17 — 17 Cash paid for all plans (16) (2) (18) Reversals of expense and other 1 — 1 Balance at December 31, 2020 23 1 24 2021 Italian workforce redundancies plan expense, net 11 — 11 Cash paid for all plans (17) — (17) Reversals of expense and other (5) (1) (6) Balance at December 31, 2021 12 1 13 (1) Other includes approximately $1 million of asset impairment costs, the offset of which is property, plant and equipment, net in the consolidated balance sheet. Restructuring Expense The following table summarizes consolidated restructuring expense by segment and type of cost: For the year ended December 31, 2021 ($ in millions) Severance and Related Employee Costs Other Total Global Lottery 8 — 8 Global Gaming (3) (1) (4) Digital & Betting (1) — (1) Corporate and Other 2 — 2 Total 6 (1) 6 For the year ended December 31, 2020 ($ in millions) Severance and Related Employee Costs Other Total Global Lottery 5 — 5 Global Gaming 28 4 32 Digital & Betting 2 — 2 Corporate and Other 6 — 6 Total 41 4 45 For the year ended December 31, 2019 ($ in millions) Severance and Related Employee Costs Other Total Global Lottery 2 — 2 Global Gaming 3 (1) 2 Digital & Betting (1) — 16 16 Corporate and Other 2 3 4 Total 7 18 25 (1) Primarily consists of asset impairment costs. |
Goodwill
Goodwill | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill, net | |
Goodwill | Goodwill As discussed in Note 21 – Segment Information , we established a dedicated Digital & Betting business segment, comprising our iGaming and sports betting activities that were previously included within our Global Gaming business segment. As a result, at September 1, 2021, we allocated a portion of goodwill associated with our Global Gaming reporting unit to the Digital & Betting reporting unit using a relative fair value approach. The goodwill allocated to the Global Gaming and Digital & Betting reporting units was $1.4 billion and $265 million, respectively, and the estimated fair values were determined to exceed the carrying values of each reporting unit, which indicated no impairment existed. In addition, we completed an assessment for any potential goodwill impairment for the former Global Gaming reporting unit immediately prior to the reallocation and determined that no impairment existed. During 2020, we adopted a new organizational structure focused on two business segments: Global Lottery and Global Gaming. As a result of the change in reporting units, at July 1, 2020, we allocated goodwill to our new reporting units using a relative fair value approach. The goodwill allocated to the new Global Lottery and Global Gaming reporting units was $2.9 billion and $2.2 billion, respectively, and the estimated fair values were determined to exceed the carrying values, which indicated no impairment existed. In addition, we completed an assessment for any potential goodwill impairment for all the former reporting units immediately prior to the reallocation and determined that no impairment existed. Additionally, in connection with the sale of its Italian B2C gaming machine, sports betting, and digital gaming businesses, the Company allocated $520 million of goodwill to discontinued operations using a relative fair value approach. Prior to the allocation to discontinued operations, the goodwill was included within our Global Gaming segment. Changes in the carrying amount of goodwill consist of the following: Reporting Units Prior to July 1, 2020 Reporting Units Subsequent to September 1, 2021 (1) ($ in millions) North America Gaming and Interactive North America Lottery International Italy Global Lottery Global Gaming Digital & Betting Discontinued Operations Total Balance at December 31, 2019 1,440 1,222 1,308 1,482 — — — (520) 4,931 Impairment (103) — (193) — — — — — (296) Segment realignment (1,337) (1,222) (1,113) (1,480) 2,942 2,209 — — — Foreign currency translation — — (2) (2) 55 28 — — 78 Discontinued operations — — — — — (520) — 520 — Balance at December 31, 2020 — — — — 2,997 1,716 — — 4,713 Segment realignment — — — — — (265) 265 — — Foreign currency translation — — — — (49) (5) (3) — (58) Balance at December 31, 2021 — — — — 2,948 1,446 261 — 4,656 (1) From July 1, 2020 to August 31, 2021, we operated under only two business segments: Global Lottery and Global Gaming. Total goodwill at December 31, 2021, 2020, and 2019 is net of $1.3 billion, $1.3 billion, and $1.1 billion, respectively, of accumulated impairment losses primarily arising from the former North America Gaming and Interactive and International segments of $817 million and $526 million in both 2021 and 2020, respectively, and $714 million and $333 million in 2019, respectively. Impairment During the first quarter of 2020, we determined there was an interim goodwill impairment triggering event caused by COVID-19. As a result of the identified triggering event, we estimated the fair value of each of our former reporting units using an income approach based on projected discounted cash flows. Based principally on lower forecasted revenue and operating profits caused by lower demand for our commercial gaming products, we recorded a $296 million non-cash impairment loss with no income tax benefit, of which $193 million and $103 million was recorded within our former International and North America Gaming reporting units, respectively, to reduce the carrying amount of the reporting units to fair value. |
Intangible Assets, net
Intangible Assets, net | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets, net | Intangible Assets, net Intangible assets at December 31, 2021 and 2020 are summarized as follows: December 31, 2021 December 31, 2020 ($ in millions) Estimated Life (Years) Weighted- Average Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Amortized: Customer relationships 2-20 15.5 2,298 1,349 949 2,300 1,230 1,070 Computer software and game library 3-14 5.6 918 809 109 918 784 134 Trademarks 1-20 14.1 185 106 80 186 92 94 Developed technologies 2-15 5.6 233 216 17 225 213 13 Licenses 3-23 3.5 65 58 6 69 59 11 Other 4-17 9.0 35 28 7 37 27 10 3,734 2,566 1,168 3,736 2,403 1,332 Unamortized: Trademarks 245 — 245 245 — 245 3,979 2,566 1,413 3,981 2,403 1,577 Intangible asset amortization expense of $190 million, $203 million, and $220 million (which includes computer software amortization expense of $23 million, $26 million, and $29 million) was recorded in 2021, 2020, and 2019, respectively. Amortization expense on intangible assets for the next five years is expected to be as follows ($ in millions): Year Amount 2022 186 2023 163 2024 146 2025 122 2026 111 728 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s long-term debt obligations consist of the following: December 31, 2021 ($ in millions) Principal Debt issuance Total 5.350% Senior Secured U.S. Dollar Notes due October 2023 61 — 61 3.500% Senior Secured Euro Notes due July 2024 566 (3) 564 6.500% Senior Secured U.S. Dollar Notes due February 2025 1,100 (7) 1,093 4.125% Senior Secured U.S. Dollar Notes due April 2026 750 (6) 744 3.500% Senior Secured Euro Notes due June 2026 849 (5) 844 6.250% Senior Secured U.S. Dollar Notes due January 2027 750 (5) 745 2.375% Senior Secured Euro Notes due April 2028 566 (4) 562 5.250% Senior Secured U.S. Dollar Notes due January 2029 750 (6) 744 Senior Secured Notes 5,393 (36) 5,357 Euro Term Loan Facilities due January 2027 1,133 (12) 1,121 Long-term debt, less current portion 6,525 (48) 6,477 Short-term borrowings 52 — 52 Total debt 6,577 (48) 6,529 December 31, 2020 ($ in millions) Principal Debt issuance Swap Total 6.250% Senior Secured U.S. Dollar Notes due February 2022 1,000 (3) 7 1,004 4.750% Senior Secured Euro Notes due February 2023 1,043 (5) — 1,038 5.350% Senior Secured U.S. Dollar Notes due October 2023 61 — — 61 3.500% Senior Secured Euro Notes due July 2024 614 (4) — 610 6.500% Senior Secured U.S. Dollar Notes due February 2025 1,100 (8) — 1,092 3.500% Senior Secured Euro Notes due June 2026 920 (7) — 913 6.250% Senior Secured U.S. Dollar Notes due January 2027 750 (6) — 744 2.375% Senior Secured Euro Notes due April 2028 614 (5) — 608 5.250% Senior Secured U.S. Dollar Notes due January 2029 750 (7) — 743 Senior Secured Notes 6,851 (45) 7 6,813 Euro Term Loan Facilities due January 2027 1,055 (11) — 1,044 Long-term debt, less current portion 7,906 (56) 7 7,857 Euro Term Loan Facility due January 2027 393 — — 393 Current portion of long-term debt 393 — — 393 Total debt 8,299 (56) 7 8,250 At December 31, 2021 and December 31, 2020, $17 million and $24 million, respectively, of debt issuance costs, net for the Revolving Credit Facilities with no outstanding borrowings, are recorded as other non-current assets in the consolidated balance sheets. The principal amount of long-term debt maturing over the next five years and thereafter as of December 31, 2021 is as follows ($ in millions): Year U.S. Dollar Denominated Euro Denominated Total 2022 — — — 2023 61 — 61 2024 — 793 793 2025 1,100 227 1,327 2026 750 1,076 1,826 2027 and thereafter 1,500 1,019 2,519 Total principal payments 3,411 3,115 6,525 Senior Secured Notes The key terms of our senior secured notes (the “Notes”), which were rated Ba3 and BB by Moody’s Investor Service (“Moody’s”) and Standard & Poor’s Ratings Services (“S&P”), respectively, at December 31, 2021, are as follows: Description Principal Effective Issuer Guarantors Collateral Redemption Interest payments 5.350% Senior Secured U.S. Dollar Notes due October 2023 $61 5.47% IGT ** †† + Semi-annually in arrears 3.500% Senior Secured Euro Notes due July 2024 €500 3.68% Parent * † ++ Semi-annually in arrears 6.500% Senior Secured U.S. Dollar Notes due February 2025 $1,100 6.71% Parent * † ++ Semi-annually in arrears 4.125% Senior Secured U.S. Dollar Notes due April 2026 $750 4.34% Parent * † +++ Semi-annually in arrears 3.500% Senior Secured Euro Notes due June 2026 €750 3.65% Parent * † +++ Semi-annually in arrears 6.250% Senior Secured U.S. Dollar Notes due January 2027 $750 6.41% Parent * † ++ Semi-annually in arrears 2.375% Senior Secured Euro Notes due April 2028 €500 2.50% Parent * † +++ Semi-annually in arrears 5.250% Senior Secured U.S. Dollar Notes due January 2029 $750 5.39% Parent * † +++ Semi-annually in arrears * Certain subsidiaries of the Parent. ** The Parent and certain subsidiaries of the Parent. † Ownership interests in certain subsidiaries of the Parent, certain intercompany loans with principal balances in excess of $10 million and certain accounts receivable. †† Certain intercompany loans with principal balances in excess of $10 million and certain accounts receivable. + International Game Technology (“IGT”) may redeem in whole or in part at any time prior to maturity at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. IGT may also redeem in whole or in part at 100% of their principal amount together with accrued and unpaid interest in connection with certain gaming regulatory events. Upon the occurrence of certain events, IGT will be required to offer to repurchase all of the notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. ++ The Parent may redeem in whole or in part at any time prior to the date which is six months prior to maturity at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. After such date, the Parent may redeem in whole or in part at 100% of their principal amount together with accrued and unpaid interest. The Parent may also redeem in whole but not in part at 100% of their principal amount together with accrued and unpaid interest in connection with certain tax events. Upon the occurrence of certain events, the Parent will be required to offer to repurchase all of the notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. +++ The Parent may redeem in whole or in part at any time prior to the first date set forth in the redemption price schedule at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. After such date, the Parent may redeem in whole or in part at a redemption price set forth in the redemption price schedule in the indenture, together with accrued and unpaid interest. The Parent may also redeem in whole but not in part at 100% of their principal amount together with accrued and unpaid interest in connection with certain tax events. Upon the occurrence of certain events, the Parent will be required to offer to repurchase all of the notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. The Notes contain customary covenants and events of default. At December 31, 2021, the issuers were in compliance with the covenants. On February 11, 2022, the Moody’s rating increased to Ba2 and on February 16, 2022, the S&P’s rating increased to BB+. 4.750% Senior Secured Euro Notes due February 2023 In May 2021, the Parent used the proceeds from the sale of the Italian B2C gaming machine, sports betting, and digital gaming businesses and borrowings under the Revolving Credit Facilities to redeem $1.0 billion (€850 million) of the 4.750% Senior Secured Euro Notes due February 2023 through the exercise of the make-whole call option for total consideration, excluding interest, of $1.1 billion. The Company recorded a $67 million loss on extinguishment of debt in connection with the repurchase, which is classified in other expense (income), net in the consolidated statement of operations for the year ended December 31, 2021. 4.125% Senior Secured U.S. Dollar Notes due April 2026 In March 2021, the Parent issued $750 million of 4.125% Senior Secured U.S. Dollar Notes due April 2026 (the “4.125% Notes”) at par. The Parent used the proceeds to partially redeem the 6.250% Senior Secured U.S. Dollar Notes due February 2022. Interest on the 4.125% Notes is payable semi-annually in arrears. The 4.125% Notes are guaranteed by certain subsidiaries of the Parent and are secured by ownership interests in certain subsidiaries of the Parent, certain intercompany loans with principal balances in excess of $10 million and certain accounts receivable. Prior to April 15, 2023, the Parent may redeem the 4.125% Notes in whole or in part at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. From April 15, 2023 to April 14, 2024, the Parent may redeem the 4.125% Notes in whole or in part at 102.063% of their principal amount together with accrued and unpaid interest. From April 15, 2024 to April 14, 2025, the Parent may redeem the 4.125% Notes in whole or in part at 101.031% of their principal amount together with accrued and unpaid interest. On or after April 15, 2025, the Parent may redeem the 4.125% Notes in whole or in part at 100% of their principal amount together with accrued and unpaid interest. The Parent may also redeem the 4.125% Notes in whole but not in part at 100% of their principal amount together with accrued and unpaid interest in connection with certain tax events. Upon the occurrence of certain events, the Parent will be required to offer to repurchase all of the 4.125% Notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. In certain events of default, the 4.125% Notes outstanding may become due and payable immediately. 6.250% Senior Secured U.S. Dollar Notes due February 2022 In March 2021, the Parent used the proceeds from the sale of the 4.125% Notes and borrowings under the Revolving Credit Facilities to redeem $1.0 billion of the 6.250% Senior Secured U.S. Dollar Notes due February 2022 for total consideration, excluding interest, of $1.0 billion. The Company recorded an $18 million loss on extinguishment of debt in connection with the repurchase, of which a $24 million loss is classified in other expense (income), net and an offsetting gain of $6 million is classified in interest expense, net in the consolidated statement of operations for the year ended December 31, 2021. 5.250% Senior Secured U.S. Dollar Notes due January 2029 In June 2020, the Parent issued $750 million of 5.250% Senior Secured U.S. Dollar Notes due January 2029 (the “5.250% Notes”) at par. The Parent used the net proceeds from the 5.250% Notes to repurchase $500 million of the 6.250% Senior Secured U.S. Dollar Notes due February 2022 for total consideration, excluding interest, of $525 million. The Company recorded a $23 million loss on extinguishment of debt in connection with the repurchase, of which a $28 million loss is classified in other expense (income), net and an offsetting gain of $5 million is classified in interest expense, net in the consolidated statement of operations for the year ended December 31, 2020. Interest on the 5.250% Notes is payable semi-annually in arrears. The 5.250% Notes are guaranteed by certain subsidiaries of the Parent and are secured by ownership interests in certain subsidiaries of the Parent, certain intercompany loans with principal balances in excess of $10 million and certain accounts receivable. Prior to January 15, 2024, the Parent may redeem the 5.250% Notes in whole or in part at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. From January 15, 2024 to January 14, 2025, the Parent may redeem the 5.250% Notes in whole or in part at 102.625% of their principal amount together with accrued and unpaid interest. From January 15, 2025 to January 14, 2026, the Parent may redeem the 5.250% Notes in whole or in part at 101.313% of their principal amount together with accrued and unpaid interest. On or after January 15, 2026, the Parent may redeem the 5.250% Notes in whole or in part at 100% of their principal amount together with accrued and unpaid interest. The Parent may also redeem the 5.250% Notes in whole but not in part at 100% of their principal amount together with accrued and unpaid interest in connection with certain tax events. Upon the occurrence of certain events, the Parent will be required to offer to repurchase all of the 5.250% Notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. In certain events of default, the 5.250% Notes outstanding may become due and payable immediately. 5.500% Senior Secured U.S. Dollar Notes due June 2020 In June 2020, the Parent redeemed the $27 million 5.500% Senior Secured U.S. Dollar Notes due June 2020 when they matured. 4.750% Senior Secured Euro Notes due March 2020 In March 2020, the Parent redeemed the €388 million ($432 million) 4.750% Senior Secured Euro Notes due March 2020 when they matured. 2.375% Senior Secured Euro Notes due April 2028 In September 2019, the Parent issued €500 million of 2.375% Senior Secured Euro Notes due April 2028 (the “2.375% Notes”) at par. The Parent used the net proceeds from the 2.375% Notes to pay the €320 million ($350 million) first installment on the Euro Term Loan Facility due January 2020 on September 27, 2019 and to pay down $192 million of the Revolving Credit Facilities due July 2024, for total consideration, excluding interest, of $543 million. The Company recorded a $2 million loss on extinguishment of debt in connection with the Term Loan repayment, which is classified in other expense (income), net on the consolidated statement of operations for the year ended December 31, 2019. 3.500% Senior Secured Euro Notes due June 2026 In June 2019, the Parent issued €750 million of 3.500% Senior Secured Euro Notes due June 2026 (the “3.500% Notes due 2026”) at par. The Parent used the net proceeds from the 3.500% Notes due 2026 to repurchase €438 million ($498 million) of the 4.125% Senior Secured Euro Notes due February 2020 (the “4.125% Notes”) and pay down $339 million of the Revolving Credit Facilities due July 2024, for total consideration, excluding interest, of $845 million. The Company recorded a €9 million ($10 million) loss on extinguishment of debt in connection with the repurchase, which is classified in other expense (income), net on the consolidated statement of operations for the year ended December 31, 2019. Euro Term Loan Facilities The Parent is a party to a Senior Facility Agreement dated July 25, 2017, as amended (the “TLF Agreement”), which provided for a €1.5 billion term loan facility maturing on January 25, 2023 that was repayable in annual installments of €320 million due January 25 of each of 2020, 2021 and 2022 with a final installment of €540 million due January 25, 2023. The Parent prepaid the installment due January 25, 2020 with proceeds of the 2.375% Notes issued in September 2019 and repaid the installment due January 25, 2021 at the due date. In May 2020, the Company entered into an amendment to the TLF Agreement which modified the TLF Agreement by, among other things: • Providing a waiver of the covenants requiring the Company to maintain a minimum ratio of EBITDA to net interest costs and a maximum ratio of total net debt to EBITDA from the fiscal quarter ending June 30, 2020 through the fiscal quarter ending June 30, 2021 and established new thresholds for these financial covenants starting with the fiscal quarter ending September 30, 2021 as described in the amendments; • Providing that the obligation to grant security over additional collateral be waived provided that the public debt ratings of the Company are not less than BB- or Ba3; • Increasing the margin from 2.75% to 3.25% if the public debt ratings of the Company are B+ or B1 (or lower); and • Prohibiting restricted payments (including dividends and ordinary share repurchases) during the period commencing on April 1, 2020 and expiring on June 30, 2021, and permitting restricted payments during the period commencing on July 1, 2021 and expiring on the maturity date of the respective agreements provided that the ratio of total net debt to EBITDA as adjusted to reflect the restricted payment is less than specified thresholds. In addition, the amendment to the TLF Agreement provided that the margin applicable to all loans under the TLF Agreement outstanding as of April 11, 2020 was increased to 2.50%. In July 2021, the Parent entered into an Amendment and Restatement Agreement (the “Amendment and Restatement Agreement”) with respect to the TLF Agreement. The Amendment and Restatement Agreement among other things: (i) added a second term loan facility with IGT Lottery Holdings B.V. as the borrower, (ii) increased the aggregate amount of the term loan facilities (the “Euro Term Loan Facilities”) from €860 million to €1.0 billion (with each of the Parent and IGT Lottery Holdings B.V. borrowing €500 million), (iii) extended the maturity date of the Euro Term Loan Facilities to January 25, 2027, (iv) reduced the applicable interest rate by 35 basis points based on current debt ratings, (v) provided for a maximum decrease or increase of an additional 7.5 basis points in the margin based on environmental, social and governance factors, and (vi) maintained and extended existing financial covenant thresholds. As a result of the Amendment and Restatement Agreement, the Company reclassified the €320 million current portion of long-term debt to long-term debt. The borrowers must repay the Euro Term Loan Facilities in installments, as detailed below: Due Date Amount January 25, 2024 200 January 25, 2025 200 January 25, 2026 200 January 25, 2027 400 We recorded a $2 million loss on extinguishment of debt in connection with the Amendment and Restatement Agreement, which is classified in other expense (income), net in the consolidated statement of operations for the year ended December 31, 2021. In September 2021, the Company received an upgraded environmental, social, and governance rating and pursuant to the Amendment and Restatement Agreement, the interest rate was decreased by 4 basis points effective September 17, 2021. Interest on the Euro Term Loan Facilities is payable between one six The Euro Term Loan Facilities are guaranteed by certain subsidiaries of the Parent and are secured by ownership interests in certain subsidiaries of the Parent, certain intercompany loans with principal balances in excess of $10 million and certain accounts receivable. Upon the occurrence of certain events, the borrowers may be required to prepay the Euro Term Loan Facilities in full. The TLF Agreement, as amended by the Amendment and Restatement Agreement, contains customary covenants (including maintaining a minimum ratio of EBITDA to net interest costs and maximum ratio of total net debt to EBITDA) and events of default. At December 31, 2021, the Parent was in compliance with the covenants. Revolving Credit Facilities The Parent and certain of its subsidiaries are party to a Senior Facilities Agreement dated November 4, 2014, as amended (the “RCF Agreement”), which provides for the following multi-currency revolving credit facilities (the “Revolving Credit Facilities”) which mature on July 31, 2024: Maximum Amount Facility Borrowers $1,050 Revolving Credit Facility A Parent, IGT, and IGT Global Solutions Corporation €625 Revolving Credit Facility B Parent, IGT Lottery S.p.A. (formerly Lottomatica Holding S.r.l), and IGT Lottery Holdings B.V. Interest on the Revolving Credit Facilities is payable between one and six months in arrears at rates equal to the applicable LIBOR (or the applicable EURIBOR if the borrower elects to borrow in Euros) with respect to Revolving Credit Facility A or the applicable EURIBOR (or the applicable LIBOR if the borrower elects to borrow in U.S. dollars) with respect to Revolving Credit Facility B, plus a margin based on the Parent’s long-term ratings by Moody’s and S&P. At December 31, 2021 and 2020, there were no balances for the Revolving Credit Facilities. The RCF Agreement provides that the following fees, which are recorded in interest expense, net in the consolidated statements of operations, are payable quarterly in arrears: • Commitment fees - payable on the aggregate undrawn and un-cancelled amount of the Revolving Credit Facilities depending on the Parent’s long-term ratings by Moody’s and S&P. The applicable rate was 0.928% at December 31, 2021. • Utilization fees - payable on the aggregate drawn amount of the Revolving Credit Facilities at a rate ranging from 0.15% to 0.60% dependent on the percentage of the Revolving Credit Facilities utilized. The applicable rate was 0.15% at December 31, 2021. The Revolving Credit Facilities are guaranteed by the Parent and certain of its subsidiaries and are secured by ownership interests in certain subsidiaries and of the Parent, certain intercompany loans with principal balances in excess of $10 million and certain accounts receivable. Upon the occurrence of certain events, the borrowers may be required to repay the Revolving Credit Facilities and the lenders may have the right to cancel their commitments. At December 31, 2021 the aggregate amounts available to be borrowed under the Revolving Credit Facilities were $1.7 billion. The RCF Agreement contains customary covenants (including maintaining a minimum ratio of EBITDA to net interest costs and a maximum ratio of total net debt to EBITDA) and events of default. At December 31, 2021, the borrowers were in compliance with the covenants. In May 2020, the Parent entered into an amendment to the RCF Agreement, which modified the RCF Agreement by, among other things: • Providing a waiver of the covenants requiring the Company to maintain a minimum ratio of EBITDA to net interest costs and a maximum ratio of total net debt to EBITDA from the fiscal quarter ending June 30, 2020 through the fiscal quarter ending June 30, 2021 and established new thresholds for these financial covenants starting with the fiscal quarter ending September 30, 2021 as described in the amendments; • Providing that the obligation to grant security over additional collateral be waived provided that the public debt ratings of the Company are not less than BB- or Ba3; • Increasing the margin from 2.75% to 3.25% if the public debt ratings of the Company are B+ or B1 (or lower); and • Prohibiting restricted payments (including dividends and ordinary share repurchases) during the period commencing on April 1, 2020 and expiring on June 30, 2021, and permitting restricted payments during the period commencing on July 1, 2021 and expiring on the maturity date of the respective agreements provided that the ratio of total net debt to EBITDA as adjusted to reflect the restricted payment is less than specified thresholds. In addition, the amendment to the RCF Agreement provided that the margin applicable to all loans under the RCF Agreement outstanding as of April 11, 2020 was increased to 2.475%. The TLF Agreement and the RCF Agreement limit the aggregate amount that the Parent can pay with respect to dividends and repurchases of ordinary shares in each year to $300 million if our debt ratings by Moody’s or S&P are lower than Ba1 or BB+, respectively, and $400 million if our debt ratings by Moody’s and S&P are equal to or higher than Ba1 and BB+, respectively. Other Credit Facilities The Parent and certain of its subsidiaries may borrow under senior unsecured uncommitted demand credit facilities made available by several financial institutions. At December 31, 2021, there were $30 million of short-term borrowings under these facilities with an effective interest rate of 1.63%. At December 31, 2020, there were no borrowings under these facilities. Additionally, at December 31, 2021, the Company had a $21 million swingline loan associated with the Revolving Credit Facilities with an effective interest rate of 3.25%, which is classified in short-term borrowings. Letters of Credit The Parent and certain of its subsidiaries may obtain letters of credit under the Revolving Credit Facilities and under senior unsecured uncommitted demand credit facilities. The letters of credit secure various obligations, including obligations arising under customer contracts and real estate leases. The following table summarizes the letters of credit outstanding at December 31, 2021 and 2020 and the weighted-average annual cost of such letters of credit: ($ in millions) Letters of Credit Outstanding (1) Weighted- December 31, 2021 335 1.08 % December 31, 2020 427 1.06 % (1) Represents letters of credit outstanding not under the Revolving Credit Facilities. Interest Expense, Net For the year ended December 31, ($ in millions) 2021 2020 2019 Senior Secured Notes 292 344 351 Term Loan Facilities 30 37 36 Revolving Credit Facilities 29 31 28 Other 4 1 8 Interest expense 354 413 423 Interest income (13) (15) (12) Interest expense, net 341 398 411 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other Current Liabilities December 31, ($ in millions) Notes 2021 2020 Employee compensation 171 90 Contract liabilities 4 104 108 Income taxes payable 104 26 Accrued interest payable 100 138 Accrued expenses 75 118 Taxes other than income taxes 72 96 Jackpot liabilities 18 66 71 Current financial liabilities 61 128 Operating lease liabilities 11 39 44 Other 35 26 828 846 Other Non-Current Liabilities December 31, ($ in millions) Notes 2021 2020 Jackpot liabilities 18 130 148 Contract liabilities 4 47 62 Reserves for uncertain tax positions 47 48 Finance lease liabilities 11 27 31 Other 72 72 323 360 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income (loss) from continuing operations before provision for income taxes, determined by tax jurisdiction, are as follows: For the year ended December 31, ($ in millions) 2021 2020 2019 United Kingdom 40 (355) 35 United States (20) (776) (301) Italy 438 229 351 Other 70 55 43 529 (848) 128 The provision for income taxes consists of: For the year ended December 31, ($ in millions) 2021 2020 2019 Current: United Kingdom — (1) 2 United States 41 10 46 Italy 155 66 104 Other 40 31 49 236 106 202 Deferred: United States 76 (62) (69) Italy (22) (1) 1 Other (16) (16) (3) 38 (78) (71) 274 28 131 Income taxes paid, net of refunds, were $188 million, $89 million, and $197 million in 2021, 2020, and 2019, respectively. The Parent is a tax resident in the United Kingdom (the “U.K.”). A reconciliation of the provision for income taxes, from the amount computed by applying the U.K. statutory main corporation tax rates enacted in each of the Parent’s calendar year reporting periods to income (loss) from continuing operations before provision for income taxes is as follows: For the year ended December 31, ($ in millions) 2021 2020 2019 Income (loss) from continuing operations before provision for income taxes 529 (848) 128 United Kingdom statutory tax rate 19.0 % 19.0 % 19.0 % Statutory tax expense (benefit) 100 (161) 24 Change in valuation allowances 125 128 1 Italy regional tax (“IRAP”) and state taxes 41 9 23 Non-deductible expenses 25 2 2 Base erosion and anti-abuse (“BEAT”) tax 17 13 31 Foreign tax and statutory rate differential (1) 17 (14) 3 Foreign tax expense, net of U.S. federal benefit 11 10 14 Provision to return 6 — — GILTI tax 5 3 5 Non-deductible goodwill impairment — 56 19 Change in unrecognized tax benefits — 1 7 Non-taxable gains on investments — — (6) Italian allowance for corporate equity (3) (4) (2) Non-taxable foreign exchange gain (11) — (4) Italian patent box tax benefit (27) — — Tax law changes (38) (20) — Other 5 4 15 274 28 131 Effective tax rate 51.8 % (3.3) % 102.1 % (1) Includes the effects of foreign subsidiaries’ earnings taxed at rates other than the U.K. statutory rate On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) to provide certain relief related to the COVID-19 outbreak. Some of the key tax-related provisions of the CARES Act benefiting the Company include temporary five-year net operating loss carryback provisions, modifications to the 30% limitation on the deductibility of business interest, and payroll tax deferral. In the quarter ended September 30, 2020, the U.S. Treasury Department issued final regulations regarding GILTI. The Company has elected the GILTI high tax exception as allowed by the final regulations and has amended its 2018 and 2019 income tax returns. The benefit of the GILTI high tax exception as well as the NOL carryback provisions provided in the CARES Act resulted in a tax benefit of $12 million. The components of deferred tax assets and liabilities are as follows: December 31, ($ in millions) 2021 2020 Deferred tax assets: Net operating losses 286 300 Section 163(j) interest limitation 190 155 Italian goodwill tax step-up 119 — Provisions not currently deductible for tax purposes 85 88 Lease liabilities 66 70 Jackpot timing differences 30 39 Depreciation and amortization 29 26 Inventory reserves 10 2 Other 63 47 Gross deferred tax assets 878 728 Valuation allowance (412) (284) Deferred tax assets, net of valuation allowance 466 444 Deferred tax liabilities: Acquired intangible assets 462 506 Depreciation and amortization 163 161 Italian goodwill equity reserve liability 105 — Lease right-of-use assets 60 65 Other 6 12 Total deferred tax liabilities 795 744 Net deferred income tax liability (329) (300) Our net deferred income taxes are recorded in the consolidated balance sheets as follows: December 31, ($ in millions) 2021 2020 Deferred income taxes - non-current asset 39 33 Deferred income taxes - non-current liability (368) (333) (329) (300) Net Operating Loss Carryforwards We have a $1.1 billion gross tax loss carryforward, of which $631 million relates to the U.K., $137 million relates to U.S. Federal, and $339 million relates to other foreign tax jurisdictions. Carryforwards in certain tax jurisdictions begin to expire in 2031, while others have an unlimited carryforward period. A valuation allowance has been provided on $910 million of the gross net operating loss carryforwards. Portions of the tax loss carryforwards are subject to annual limitations in most of our significant tax jurisdictions, including the U.K. and U.S. In addition, as of December 31, 2021, we had U.S. state tax net operating loss carryforwards, resulting in a deferred tax asset (net of U.S. federal tax benefit) of approximately $13 million. U.S. state tax net operating loss carryforwards generally expire in the years 2027 through 2040. Valuation Allowance A reconciliation of the valuation allowance is as follows: December 31, ($ in millions) 2021 2020 2019 Balance at beginning of year 284 156 171 Net charges to expense 86 120 1 Tax rate change 39 8 — Provision to return adjustment 3 — — Expiration of tax attributes — — (15) Balance at end of year 412 284 156 The valuation allowance primarily relates to U.K. and foreign net operating losses and the section 163(j) business interest expense limitation carryforward that are not more likely than not expected to be realized. In assessing the need for a valuation allowance, we considered both positive and negative evidence for each jurisdiction including past operating results, estimates of future taxable income, and the feasibility of tax planning strategies. When we change our determination as to the amount of deferred tax assets that can be realized, the valuation allowance is adjusted with a corresponding impact to the provision for income taxes in the period in which such determination is made. Accounting for Uncertainty in Income Taxes A reconciliation of the unrecognized tax benefits is as follows: December 31, ($ in millions) 2021 2020 2019 Balance at beginning of year 27 29 27 Additions to tax positions - current year 1 — 1 Additions to tax positions - prior years — — 2 Reductions to tax positions - prior years (1) (2) — Lapses in statutes of limitations — (1) (1) Balance at end of year 27 27 29 At December 31, 2021, 2020, and 2019, $27 million, $27 million, and $29 million, respectively, of the unrecognized tax benefits, if recognized, would affect our effective tax rates. We recognize interest and penalties related to income tax matters in income tax expense. The charges were nominal for 2021 and 2020. In 2019, we recognized $5 million in interest expense, penalties, and inflationary adjustments. The gross balance of accrued interest and penalties was $21 million at December 31, 2021 and 2020. We file income tax returns in various jurisdictions of which the United Kingdom, United States, and Italy represent the major tax jurisdictions. All years prior to 2017 are closed with the Internal Revenue Service. As of December 31, 2021, we are subject to income tax audits in various tax jurisdictions globally, most significantly in Mexico and Italy. Mexico Tax Audit Based on a 2006 tax examination, the Company’s Mexican subsidiary, GTECH Mexico S.A. de C.V., was issued an income tax assessment of approximately Mexican peso (“MXN”) 425 million. The assessment relates to the denial of a deduction for cost of goods sold and the taxation of intercompany loan proceeds. The Company has unsuccessfully contested the two issues in the Mexican court system receiving unfavorable decisions by the Mexican Supreme Court in June 2017 and October 2019, respectively. As of December 31, 2021, based on the unfavorable decisions received, the Company has recorded a liability of MXN 469 million (approximately $23 million), inclusive of additional interest, penalties, and inflationary adjustments, which is reported within other non-current liabilities in the consolidated balance sheet. Italy Tax Audits The Company’s Italian corporate income tax returns for the calendar years ended December 31, 2015 through December 31, 2019 are under examination. On October 19, 2020, the Italian tax authorities issued a final audit report for calendar year 2015. The Company filed a defense memorandum with the Italian Tax Authorities on May 29, 2021 rejecting all findings. On December 9, 2021, the Company received a tax assessment notice for €15 million relating to calendar year 2015. On February 9, 2022, the Company submitted a voluntary settlement request which entitles the Company to an automatic 90 day extension. The extension will allow the Italian Tax Authority to re-examine the preliminary conclusions of the tax police. At the end of the 90 day extension period, if the parties do not reach a settlement the Company retains the right to appeal the tax assessment before the first degree Tax Court. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Jackpot Commitments Jackpot liabilities are recorded as current and non-current liabilities as follows: ($ in millions) December 31, 2021 Current liabilities 66 Non-current liabilities 130 196 Future jackpot liabilities as of December 31, 2021 are due as follows: ($ in millions) Previous Winners Future Winners Total 2022 25 41 66 2023 20 10 31 2024 18 1 18 2025 15 1 16 2026 13 1 13 Thereafter 72 8 79 Future jackpot payments due 163 60 223 Unamortized discounts (27) Total jackpot liabilities 196 Performance and other bonds Certain contracts require us to provide a surety bond as a guarantee of performance for the benefit of customers; bid and litigation bonds for the benefit of potential customers; and WAP bonds that are used to secure our financial liability when a player elects to have their WAP jackpot winnings paid over an extended period of time. These bonds give beneficiaries the right to obtain payment and/or performance from the issuer of the bond if certain specified events occur. In the case of performance bonds, which generally have a term of one year, such events include our failure to perform our obligations under the applicable contracts. In general, we would only be liable for these guarantees in the event of default in our performance of our obligations under each contract, the probability of which we believe is remote. Accordingly, no liability has been recorded as of December 31, 2021 and 2020 related to these bonds. Legal Proceedings From time to time, the Parent and/or one or more of its subsidiaries are party to legal, regulatory, or administrative proceedings regarding, among other matters, claims by and against us, and injunctions by third parties arising out of the ordinary course of business. Licenses are also subject to legal challenges by competitors seeking to annul awards made to the Company. The Parent and/or one or more of its subsidiaries are also, from time to time, subjects of, or parties to, ethics and compliance inquiries and investigations related to the Company’s ongoing operations. At December 31, 2021, provisions for litigation matters amounted to $4 million. With respect to litigation and other legal proceedings where we have determined that an incremental loss is reasonably possible but we are unable to determine an estimate of that reasonably possible loss in excess of amounts already accrued, no additional amounts have been accrued, given the uncertainties of litigation and the inherent difficulty of predicting the outcome of legal proceedings. Texas Fun 5’s Instant Ticket Game IGT Global Solutions Corporation (formerly GTECH Corporation) is party to four lawsuits in Texas state court arising out of the Fun 5’s instant ticket game sold by the Texas Lottery Commission (“TLC”) from September 14, 2014 to October 21, 2014. Plaintiffs allege each ticket’s instruction for Game 5 provided a 5x win (five times the prize box amount) any time the “Money Bag” symbol was revealed in the “5X BOX”. However, TLC awarded a 5x win only when (1) the “Money Bag” symbol was revealed and (2) three symbols in a pattern were revealed. (a) Steele, James et al. v. GTECH Corp. , filed on December 9, 2014 in Travis County (No. D1GN145114). Through intervenor actions, over 1,200 plaintiffs claim damages in excess of $500 million. GTECH Corporation’s plea to the jurisdiction for dismissal based on sovereign immunity was denied. GTECH Corporation appealed. The appellate court ordered that plaintiffs’ sole remaining claim should be reconsidered. On April 27, 2018, this and a related matter were appealed to the Texas Supreme Court, which heard arguments on December 3, 2019. On June 12, 2020, the Texas Supreme Court ruled that Plaintiffs’ could proceed with their fraud allegations in the lower court; all other claims were dismissed. On March 26, 2021, October 29, 2021 and February 3, 2022 (two motions), GTECH Corporation filed motions for summary judgment. One such motion was denied on February 25, 2022, while the other three remain pending. (b) Guerra, Esmeralda v. GTECH Corp. et al. , filed on June 10, 2016 in Hidalgo County (No. C277716B). Plaintiff claims damages in excess of $0.5 million. (c) Wiggins, Mario & Kimberly v. IGT Global Solutions Corp. , filed on September 7, 2016 in Travis County (No. D1GN16004344). Plaintiffs claim damages in excess of $1 million. (d) Campos, Osvaldo Guadalupe et al. v. GTECH Corp. , filed on October 20, 2016 in Travis County (No. D1GN16005300). Plaintiffs claim damages in excess of $1 million. We dispute the claims made in each of these cases and continue to defend against these lawsuits. Adrienne Benson and Mary Simonson, individually and on behalf of all others similarly situated v. Double Down Interactive LLC, et al. On April 9, 2018, a plaintiff, Adrienne Benson, filed a putative class action against the Company’s wholly-owned subsidiary, International Game Technology, and Double Down Interactive LLC, a Washington limited liability company in the United States District Court for the Western District of Washington. On July 23, 2018, plaintiff filed a first amended complaint, adding named plaintiff Mary Simonson, and adding allegations to represent a putative class of all persons in the United States who purchased and allegedly lost virtual “chips” while playing games through an online gaming platform called Double Down Casino, which at all times has been operated by Double Down Interactive LLC. On April 26, 2021, plaintiffs filed a second amended complaint naming IGT, a wholly-owned subsidiary of International Game Technology, as an additional defendant. Plaintiffs have asserted claims for alleged violations of Washington’s Recovery of Money Lost at Gambling Act, Washington’s Consumer Protection Act, and for unjust enrichment, and seeks unspecified money damages (including treble damages as appropriate), the award of reasonable attorneys’ fees and costs, pre- and post-judgment interest, and injunctive and/or declaratory relief. International Game Technology acquired Double Down Interactive LLC in 2012 and, effective June 1, 2017, sold Double Down Interactive LLC to DoubleU Games pursuant to a purchase agreement (the “Purchase Agreement”). At all times relevant, Double Down Interactive LLC was the sole operator of the Double Down Casino, and International Game Technology asserts, among other defenses, that it has no liability for the actions of a bona fide subsidiary. On May 10, 2018, Double Down Interactive LLC and DoubleU Diamond LLC sent a claim notice (the “DDI Claim Notice”) to International Game Technology seeking indemnification and reimbursement of defense costs for all claims against Double U Diamond LLC and its affiliates (the “DoubleU Entities”) in the Benson matter, pursuant to the Purchase Agreement. On June 7, 2018, International Game Technology responded to the DDI Claim Notice, rejecting any obligation to indemnify or pay defense costs of the DoubleU Entities, and sent a claim notice to DoubleU Diamond LLC for indemnification and reimbursement of defense costs for all claims against International Game Technology in the Benson matter pursuant to the terms of certain agreements with DoubleU Diamond LLC. On June 17, 2021, IGT sent a claim notice to DoubleU Diamond LLC for indemnification and reimbursement of defense costs for all claims against IGT in the Benson matter pursuant to the terms of certain agreements with DoubleU Diamond LLC. On August 20, 2018, International Game Technology filed a motion to compel arbitration under the Federal Arbitration Act. The denial of that motion was appealed to the United States Court of Appeals for the Ninth Circuit, which in turn affirmed the district court by mandate effective February 20, 2020. International Game Technology filed an answer to the first amended complaint on January 18, 2019, and an answer to the second amended complaint on May 10, 2021, continuing to deny all material allegations of liability and damages, and further denying that International Game Technology was responsible for the operation of the Double Down Casino. International Game Technology amended its answer to the first amended complaint on April 21, 2021. IGT filed a motion to dismiss the second amended complaint on May 18, 2021, which remains pending. International Game Technology moved to certify the liability questions to the Washington State Supreme Court, which was denied on August 11, 2020. International Game Technology’s motion to reconsider the question of certification was denied on January 15, 2021. On August 13, 2020, International Game Technology filed a motion to strike the nationwide class allegations from the amended complaint, which was denied on March 19, 2021. On September 10, 2020, International Game Technology filed a motion to dismiss and stay the case on the grounds that the federal court should abstain from deciding the liability questions under Washington law. That motion was denied on March 24, 2021. On February 25, 2021, plaintiffs filed a motion for class certification and for preliminary injunction, which remains pending, and has not been set for hearing. Discovery closed on August 24, 2021. Before the close of discovery, plaintiffs filed motions for leave to take additional depositions and to make expert disclosures that remain pending. There is currently no trial date set for this matter. International Game Technology is vigorously pursuing its defenses. We are currently unable to estimate the amount or range of reasonably possible loss. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Shares Authorized and Outstanding The Board of Directors of the Parent (the “Board”) may issue ordinary shares of the Parent upon shareholder approval. At the Parent’s 2021 annual general meeting, the shareholders authorized the issuance of up to 136.6 million additional ordinary shares (of which 68.3 million can be issued in connection with an offer by way of rights issue), with a par value of $0.10 per share, for a period expiring at the end of the 2022 annual general meeting, or, if sooner, on August 10, 2022, unless previously revoked, varied, or renewed. Ordinary shares outstanding were as follows: December 31, 2021 2020 2019 Balance at beginning of year 204,856,564 204,435,333 204,210,731 Shares issued under restricted stock plans 331,554 421,231 224,602 Repurchases of common stock (1,500,000) — — Balance at end of year 203,688,118 204,856,564 204,435,333 Share Repurchase Program On November 15, 2021, the Board authorized a share repurchase program (the “Program”) pursuant to which the Company may repurchase up to $300 million of the Parent’s outstanding ordinary shares during a period of four years commencing on November 18, 2021. At the Parent’s 2021 annual general meeting, the Parent’s shareholders granted authority to repurchase, subject to a maximum repurchase price, up to 20,485,656 of the Parent’s ordinary shares. This authority remains valid until November 10, 2022, unless previously revoked, varied, or renewed at the Parent’s 2022 annual general meeting. The Parent repurchases ordinary shares under the Program at the market price on the trade date and the Parent cancels repurchased ordinary shares or holds them in treasury. If the Parent holds repurchased ordinary shares in treasury, all amounts paid to repurchase such shares have been recorded as treasury stock in our consolidated balance sheets until they are reissued or retired. Under the Program, the Parent repurchased 1.5 million ordinary shares for $41 million during 2021. For the period January 1, 2022 to February 25, 2022, the Parent repurchased 937,758 ordinary shares for $26 million under the Program. Dividends We declared a $0.20 cash dividend per share during the fourth quarter of 2021, the first quarter of 2020, and all four quarters of 2019. The TLF Agreement and the RCF Agreement limit the aggregate amount that the Parent can pay with respect to dividends and repurchases of ordinary shares in each year based on ratings by Moody’s and S&P. As discussed in Note 15 - Debt , in May 2020, the Company entered into amendments to these agreements which prohibited dividends and repurchases of ordinary shares through June 30, 2021. Accumulated Other Comprehensive Income The following table details the changes in AOCI: Unrealized Gain (Loss) on: AOCI ($ in millions) Foreign Hedges Other Total Attributable Attributable to IGT PLC Balance at December 31, 2018 247 (7) 1 242 20 262 Change during period (18) — 3 (15) 16 1 Reclassified to operations (1) 2 (2) — (1) — (1) Tax effect — — — 1 — 1 Other comprehensive (loss) income (17) (1) 3 (15) 16 1 Balance at December 31, 2019 231 (8) 4 227 36 263 Change during period 128 (1) — 127 (59) 68 Reclassified to operations (1) (1) — — (1) — (1) Other comprehensive income (loss) 128 (1) — 127 (59) 67 Balance at December 31, 2020 358 (9) 4 353 (24) 330 Change during period 9 3 (1) 11 51 62 Reclassified to operations (1) 19 1 — 20 1 21 Tax effect — (1) — — — — Other comprehensive income (loss) 28 3 (1) 30 52 82 Balance at December 31, 2021 387 (6) 3 384 28 412 (1) Foreign currency translation of approximately $19 million was reclassified into gain on sale of discontinued operations, net of tax on the consolidated statements of operations for the year ended December 31, 2021. Other foreign currency translation adjustments related to liquidated subsidiaries were reclassified into foreign exchange (gain) loss, net on the consolidated statements of operations for the years ended December 31, 2020 and 2019. Unrealized gain (loss) on hedges were reclassified into service revenue on the consolidated statements of operations for the years ended December 31, 2021 and 2019. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities We hold ownership interests in the following variable interest entities (“VIEs”): Name of subsidiary % Ownership held Lottoitalia S.r.l. (“Lottoitalia”) 61.50 % Lotterie Nazionali S.r.l. (“LN”) 64.00 % Northstar New Jersey Lottery Group, LLC (“Northstar NJ”) (1) 82.31 % (1) Northstar New Jersey Holding Company LLC, of which we are a 50.15% shareholder, holds the 82.31% ownership in Northstar NJ. Lottoitalia holds a license to operate the Lotto game in Italy through November 2025. LN holds a license to operate the Scratch & Win instant lottery game in Italy through September 2028. Northstar NJ manages a wide range of the lottery’s day-to-day operations in the State of New Jersey, as well as provides marketing and sales services under a license valid through June 2029. We are the principal operating partner fulfilling the requirements under the licenses held by the VIEs. As such, we have the power to direct the activities that significantly affect the VIEs’ economic performance, along with the right to receive benefits or the obligation to absorb losses that could potentially be significant to the VIEs. As a result, we concluded we are the primary beneficiary of the VIEs and they have been consolidated. Accordingly, the balance sheet and operating activity of the VIEs are included in our consolidated financial statements and we adjust the net income (loss) in our consolidated statement of operations to exclude the non-controlling interests’ proportionate share of results. We present the proportionate share of non-controlling interests as equity in the consolidated balance sheets. The carrying amounts and classification of these VIEs’ assets and liabilities in our consolidated balance sheets at December 31, 2021 and 2020 are as follows: December 31, ($ in millions) 2021 2020 Current assets 1,124 1,087 Non-current assets 1,217 1,556 Total assets 2,341 2,643 Total liabilities 615 708 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information During the third quarter of 2021, we modified the information that our chief operating decision maker, who was also our Chief Executive Officer, regularly reviewed for purposes of allocating resources and assessing performance, prompting a change in management, operating segments, and reporting units. As a result, on September 1, 2021, we established a dedicated Digital & Betting business segment, comprising our iGaming and sports betting activities that were previously included within our Global Gaming business segment. Beginning in the third quarter of 2021, we report our financial performance based on three business segments: Global Lottery, Global Gaming, and Digital & Betting, and analyze revenue by segment as well as operating income as the measure of segment profitability. As such, we have recast our historically presented comparative segment information to conform to the way we internally manage and monitor segment performance. Through our three business segments, we operate and provide an integrated portfolio of innovative gaming technology products and services including online and instant lottery systems, iLottery, instant ticket printing, lottery management services, commercial services, gaming systems, electronic gaming machines, iGaming, and sports betting. The Global Lottery segment has full responsibility for the worldwide traditional lottery and iLottery business, including sales, operations, product development, technology, and support. The Global Gaming segment has full responsibility for the worldwide land-based gaming business, including sales, product management, studios, global manufacturing, operations, and technology. The Digital & Betting segment has full responsibility for the worldwide iGaming and sports betting activities, that were previously part of our Global Gaming segment. Our three business segments are supported by central corporate support functions, including finance, people and transformation, legal, marketing and communications, corporate public affairs, and strategy and corporate development. Certain support costs that are identifiable and that benefit our business segments are allocated to them. Each allocation is measured differently based on the specific facts and circumstances of the costs being allocated. Corporate support function expenses that are not allocated to the business segments, which are principally composed of selling, general and administrative expenses, are reported as Corporate and Other expenses, along with goodwill impairment and the depreciation and amortization of acquired tangible and intangible assets in connection with acquired companies. Global Lottery Our Global Lottery segment provides lottery products and services primarily to governmental organizations through operating contracts, facilities management contracts (“FMCs”), lottery management agreements (“LMAs”), and product sales contracts. As part of our lottery product and services, we provide instant and draw-based lottery products, point-of-sale machines, central processing systems, software, commercial services, instant ticket printing services, and other related equipment and support services. We categorize revenue from operating contracts, FMCs, and LMAs as “Operating and facilities management contracts” and revenue from commercial services, software hosting, software maintenance, and other services not included within operating contracts, FMCs, or LMAs as service revenue from “Systems, software, and other”. Revenue included within “Operating and facilities management contracts” include all services required by the contract, including iLottery and instant ticket printing. We categorize sales or sales-type leases of lottery terminals, lottery systems, fixed-fee software licenses, and instant tickets not part of “Operating and facilities management contracts” as product sales from “Lottery products”. Global Gaming Our Global Gaming segment provides gaming products and services including software and game content, casino gaming management systems, video lottery terminals (“VLTs”), VLT central systems, and other related equipment and support services to commercial and tribal casino operators. We categorize revenue from Wide Area Progressive services, and operating leases for VLTs and other gaming machines as service revenue from “Gaming terminal services”. We categorize sales or usage-based royalties promised in exchange for software intellectual property licenses, and systems as service revenue from “Systems, software, and other”. Revenue from the sale or sales-type lease of gaming machines, systems, component parts, and other miscellaneous equipment and services are categorized as product sales from “Gaming terminals” and revenue from systems, fixed-fee software licenses, casino gaming management systems, game content, and spare parts as product sales from “Other”. Digital & Betting Our Digital & Betting segment provides iGaming solutions by providing gaming operators a license to offer IGT remote game server games on operator websites and mobile applications. The segment also provides sports betting technology and services to commercial and tribal operators and lotteries in regulated markets, primarily in the U.S. We categorize revenue from iGaming and sports betting as service revenue from “Digital and betting services”. During the year ended December 31, 2019, we agreed to a perpetual license of our legacy sports betting platform which is categorized as product sales from “Other”. Segment information is as follows: For the year ended December 31, 2021 ($ in millions) Global Lottery Global Gaming Digital & Betting Business Segment Total Corporate and Other Total IGT PLC Service revenue 2,690 630 163 3,483 — 3,483 Product sales 123 482 1 606 — 606 Total revenue 2,812 1,112 165 4,089 — 4,089 Operating income (loss) 1,088 43 33 1,164 (262) 902 Depreciation and amortization 225 126 15 366 160 526 Expenditures for long-lived assets (123) (67) (13) (203) (6) (208) For the year ended December 31, 2020 ($ in millions) Global Lottery Global Gaming Digital & Betting Business Segment Total Corporate and Other Total IGT PLC Service revenue 2,043 483 114 2,640 — 2,640 Product sales 121 354 1 476 — 476 Total revenue 2,164 837 115 3,115 — 3,115 Operating income (loss) 642 (212) 6 436 (544) (107) Depreciation and amortization 231 146 15 392 175 566 Expenditures for long-lived assets (149) (64) (11) (224) (2) (226) For the year ended December 31, 2019 ($ in millions) Global Lottery Global Gaming Digital & Betting Business Segment Total Corporate and Other Total IGT PLC Service revenue 2,183 842 76 3,101 — 3,101 Product sales 110 806 15 931 — 931 Total revenue 2,293 1,648 91 4,032 — 4,032 Operating income (loss) 697 222 (43) 877 (399) 478 Depreciation and amortization 225 173 18 416 198 614 Expenditures for long-lived assets (167) (154) (13) (334) (8) (342) Geographical Information Revenue from external customers, which is based on the geographical location of our customers, is as follows: For the year ended December 31, ($ in millions) 2021 2020 2019 United States 2,126 1,666 2,116 Italy 1,307 896 990 United Kingdom 72 64 74 Rest of Europe 217 209 323 All other 368 280 530 Total 4,089 3,115 4,032 Revenue from one customer in the Global Lottery segment represented approximately 23%, 19%, and 16% of consolidated revenue in 2021, 2020, and 2019, respectively. Long-lived assets, which are comprised of Systems & Equipment and PPE, are based on the geographical location of the assets as follows: December 31, ($ in millions) 2021 2020 United States 766 841 Italy 125 176 United Kingdom 9 14 Rest of Europe 93 91 All other 63 77 Total 1,056 1,200 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Incentive Awards Stock-based incentive awards are provided to directors and employees under the terms of our 2015 and 2021 Equity Incentive Plans (collectively, the “Plan”) as administered by the Board. Awards available under the Plan principally include stock options, performance share units, restricted share units or any combination thereof. The maximum number of new shares that may be granted under the Plan is 20.5 million shares. To the extent any award is forfeited, expires, lapses, or is settled for cash, the award is available for reissue under the Plan. We utilize authorized and unissued shares to satisfy all shares issued under the Plan. Stock Options Stock options are awards that allow the employee to purchase shares of our stock at a fixed price. Stock options are granted under the Plan at an exercise price not less than the fair market value of a share on the date of grant. In 2021, stock options were granted solely to our former Chief Executive Officer, which will vest in 2024 subject to certain performance and other criteria, and have a contractual term of approximately seven years. No stock options were granted in 2020 or 2019. Stock Awards Stock awards are principally made in the form of performance share units (“PSUs”) and restricted share units (“RSUs”). PSUs are stock awards where the number of shares ultimately received by the employee depends on the Company’s performance against specified targets, which may include Adjusted EBITDA, Free Cash Flow and Total Shareholder Return (“TSR”) relative to the Russell Mid Cap Market Index. PSUs typically vest 50% over an approximate three-year period and 50% over an approximate four-year period (i.e. four years to vest both tranches). In 2021, a second round of PSUs was granted in lieu of there being no 2020 PSUs that vest 50% over an approximate two-year period and 50% over an approximate three-year period. Dividend equivalents are not paid under the Plan. The fair value of each PSU is determined on the grant date or modification date, based on the Company’s stock price, adjusted for the exclusion of dividend equivalents, and assumes that performance targets will be achieved. Over the performance period, the number of shares of stock that will be issued is adjusted based upon the probability of achievement of performance targets. The ultimate number of shares issued and the related compensation cost recognized as expense is based on a comparison of the final performance metrics to the specified targets. RSUs are stock awards granted to directors that entitle the holder to shares of common stock as the award vests, typically over a one-year period, and have a contractual term of 10 years. Dividend equivalents are not paid under the Plan. In 2020, RSUs were also granted to employees, which vest in approximately one Stock Option Activity A summary of our stock option activity and related information is as follows: Weighted-Average Stock Exercise Price Per Share ($) Remaining Contractual Term (in years) Aggregate Intrinsic Value ($ in millions) Outstanding at January 1, 2021 422,500 21.49 Granted 172,500 20.37 Forfeited (172,500) 30.12 Outstanding at December 31, 2021 422,500 17.51 2.82 At December 31, 2021: Vested and expected to vest 422,500 17.51 2.82 5 Exercisable 250,000 15.53 0.38 3 No stock options were exercised in 2021, 2020 and 2019. Fair Value of Stock Options Granted We estimate the fair value of stock options at the date of grant using a valuation model that incorporates key inputs and assumptions as detailed in the table below. The weighted-average grant date fair value of stock options granted during 2021 was $9.82 per share. 2021 Valuation model Monte Carlo Exercise price ($) 20.37 Expected option term (in years) 2.00 Expected volatility of the Company’s stock (%) 60.00 Risk-free interest rate (%) 0.80 Dividend yield (%) — The expected volatility assumes the historical volatility is indicative of future trends, which may not be the actual outcome. The expected option term is based on historical data and is not necessarily indicative of exercise patterns that may occur. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards, and subsequent events are not indicative of the reasonableness of our original estimates of fair value. Stock Award Activity A summary of our stock award activity and related information is as follows: PSUs Weighted- Average Grant Date Fair Value ($) RSUs Weighted- Average Grant Date Fair Value ($) Nonvested at January 1, 2021 3,356,966 18.40 2,366,383 9.05 Granted 3,740,075 26.10 79,844 22.29 Vested (200,995) 20.91 (1,198,742) 9.05 Forfeited (1,595,221) 25.87 (188,013) 9.08 Nonvested at December 31, 2021 5,300,825 21.50 1,059,472 10.05 At December 31, 2021: Unrecognized cost for nonvested awards ($ in millions) 85 5 Weighted-average future recognition period (in years) 2.93 0.92 The total vest-date fair value of PSUs vested was $3 million, $3 million, and $4 million in 2021, 2020, and 2019, respectively. The total vest-date fair value of RSUs vested was $33 million, $1 million, and $1 million for 2021, 2020, and 2019, respectively. Fair Value of Stock Awards Granted We estimated the fair value of PSUs at the date of grant using a Monte Carlo simulation valuation model, as the awards include a market condition. The market condition is based on the Company’s TSR relative to the Russell Midcap Market Index. During 2021, 2020, and 2019, we estimated the fair value of RSUs at the date of grant based on our stock price. Details of the grants are as follows: 2021 2020 2019 PSUs granted during the year 3,740,075 — 2,133,512 Weighted-average grant date fair value ($) 26.10 — 11.10 RSUs granted during the year 79,844 2,375,141 131,676 Weighted-average grant date fair value ($) 22.29 9.04 14.10 Stock-Based Compensation Expense Total compensation cost (recovery) for our stock-based compensation plans is recorded based on the employees’ respective functions as detailed below. For the year ended December 31, ($ in millions) 2021 2020 2019 Cost of services 2 (1) 2 Selling, general and administrative 30 (4) 21 Research and development 3 (1) 3 Stock-based compensation expense before income taxes 35 (7) 27 Income tax benefit (provision) 8 (2) 6 Total stock-based compensation, net of tax 27 (5) 20 The 2020 recovery results from the reversal of 2019 and 2018 expense due to certain PSUs that were no longer forecasted to be achieved. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the computation of basic and diluted income (loss) per share of common stock: For the year ended December 31, ($ in millions and shares in thousands, except per share amounts) 2021 2020 2019 Numerator: Net income (loss) from continuing operations attributable to IGT PLC 65 (939) (129) Net income from discontinued operations attributable to IGT PLC 417 41 110 Net income (loss) attributable to IGT PLC 482 (898) (19) Denominator: Weighted-average shares - basic 204,954 204,725 204,373 Incremental shares under stock based compensation plans 1,841 — — Weighted-average shares - diluted 206,795 204,725 204,373 Net income (loss) from continuing operations attributable to IGT PLC per common share - basic 0.32 (4.59) (0.63) Net income (loss) from continuing operations attributable to IGT PLC per common share - diluted 0.31 (4.59) (0.63) Net income from discontinued operations attributable to IGT PLC per common share - basic 2.03 0.20 0.54 Net income from discontinued operations attributable to IGT PLC per common share - diluted 2.02 0.20 0.54 Net income (loss) attributable to IGT PLC per common share - basic 2.35 (4.39) (0.09) Net income (loss) attributable to IGT PLC per common share - diluted 2.33 (4.39) (0.09) Certain stock options to purchase common shares were outstanding, but were excluded from the computation of diluted earnings per share, because the exercise price of the options was greater than the average market price of the common shares for the full year, and therefore, the effect would have been antidilutive. During years when we are in a net loss position, certain outstanding stock options and unvested restricted stock awards are excluded from the computation of diluted earnings per share because including them would have had an antidilutive effect. For the years ended December 31, 2020 and 2019, stock options and unvested restricted stock awards totaling 1 million shares were excluded from the computation of diluted earnings per share because including them would have had an antidilutive effect. No shares were antidilutive for the year ended December 31, 2021. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We engage in business transactions with certain related parties which include (i) De Agostini S.p.A. (“De Agostini”) or entities directly or indirectly controlled by De Agostini, (ii) other entities and individuals capable of exercising control, joint control, or significant influence over us, and (iii) our unconsolidated subsidiaries or joint ventures. Members of the Board, executives with authority for planning, directing, and controlling the activities of the Company and such Directors’ and executives’ close family members are also considered related parties. We may make investments in such entities, enter into transactions with such entities, or both. De Agostini Group We are majority-owned by De Agostini. Amounts receivable from De Agostini and subsidiaries of De Agostini (collectively, the “De Agostini Group”) are non-interest bearing. Transactions with the De Agostini Group include payments for support services provided and office space rented pursuant to a lease entered into prior to the formation of the Company. In addition, certain of our Italian subsidiaries have a tax unit agreement, and in some cases, a value-added tax agreement, with De Agostini pursuant to which De Agostini consolidates certain Italian subsidiaries of De Agostini for the collection and payment of taxes to the Italian tax authority. Related party transactions with the De Agostini Group are as follows: December 31, ($ in millions) 2021 2020 Tax-related receivables 4 — Trade payables 1 5 Tax-related payables 3 19 Unconsolidated Subsidiaries, Partnerships and Joint Ventures From time to time, we make strategic investments in publicly traded and privately held companies that develop software, hardware, and other technologies or provide services supporting its technologies. We may also purchase from or make sales to these organizations. Ringmaster S.r.l. We have a 50% interest in Ringmaster S.r.l. (“Ringmaster”), an Italian joint venture, that is accounted for using the equity method of accounting. Ringmaster provides software development services for our interactive gaming business pursuant to an agreement dated December 7, 2011. Our investment in Ringmaster was $1 million at December 31, 2021 and 2020. We incurred $6 million, $7 million, and $6 million in expenses to Ringmaster for the years ended December 31, 2021, 2020, and 2019, respectively. Connect Ventures One LP and Connect Ventures Two LP We hold investments in two venture capital funds, Connect Ventures One LP and Connect Ventures Two LP (the “Connect Ventures”), that are accounted for as equity method investments. De Agostini also holds investments in the Connect Ventures, and Nicola Drago, the son of director Marco Drago, holds a 10% ownership interest in, and is a non-executive member of, Connect Ventures LLP, the fund that manages the Connect Ventures. Our investment in Connect Ventures One LP was $3 million at December 31, 2021 and 2020. Our investment in Connect Ventures Two LP was $6 million at December 31, 2021 and 2020. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn February 25, 2022, the Parent’s wholly-owned subsidiary, IGT Lottery S.p.A. entered into a share sale and purchase agreement to sell 100% of the share capital of Lis Holding S.p.A., a wholly owned subsidiary of IGT Lottery S.p.A. that conducts the Company’s Italian commercial services business, to PostePay S.p.A. – Patrimonio Destinato IMEL, an entity of the Italian postal service provider group, for a purchase price of €700 million. Lis Holding S.p.A did not meet the criteria for assets held for sale as of December 31, 2021 and therefore remains presented as a component of continuing operations within our Global Lottery segment. Upon classification as held for sale in the first quarter of 2022, the Company does not expect to recognize a loss. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close during the third quarter of 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Preparation Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements are stated in millions of United States (“U.S.”) dollars (except share and per share data) unless otherwise indicated, and are computed based on the amounts in thousands. Certain amounts in columns and rows within tables may not foot due to rounding. Percentages and earnings per share amounts presented are calculated from the underlying unrounded amounts. As further described in Note 3 - Discontinued Operations and Assets Held for Sale, on May 10, 2021, the Company completed the sale of its Italian B2C gaming machine, sports betting, and digital gaming businesses, which met the criteria to be reported as a discontinued operation during the fourth quarter of 2020. As a result, the historical financial results are reflected in the Company's consolidated financial statements as a discontinued operation, and assets and liabilities were classified as assets and liabilities held for sale at December 31, 2020. Recasting of Certain Prior Period Information During the third quarter of 2021, we modified the information that our chief operating decision maker, who was also our Chief Executive Officer, regularly reviewed for purposes of allocating resources and assessing performance, prompting a change in management, operating segments, and reporting units. As a result, beginning in the third quarter of 2021, we report our financial performance based on our new business segments described in Note 21 – Segment Information . We have recast our historically presented comparative segment information to conform to the way we internally manage and monitor segment performance as of the third quarter of 2021. This change primarily impacted Note 4 - Revenue Recognition, Note 13 - Goodwill, and Note 21 – Segment Information , with no impact on consolidated revenue, net income, or cash flows. | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Parent, our majority-owned or controlled subsidiaries, and any variable interest entities in which we are the primary beneficiary. Intercompany accounts and transactions have been eliminated in consolidation. Earnings or losses attributable to non-controlling interests in a subsidiary are included in net income (loss) in the consolidated statements of operations. | |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements requires us to make estimates, judgments, and assumptions which affect the reported amounts of assets, liabilities, equity, revenues and expenses, and related disclosure of contingent liabilities. On an ongoing basis we evaluate our estimates, judgments, and methodologies. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities, and equity, and the amount of revenues and expenses. Accordingly, actual results and outcomes could differ from those estimates. | |
Revenue | Revenue We account for a contract with a customer when: we have written approval; the parties are committed to perform their respective obligations; the rights of the parties, including payment terms, are identified; the contract has commercial substance; and collection of consideration is probable. Performance obligations are identified at contract inception. A performance obligation is a promise in a contract with a customer to transfer products or services that are distinct. If we enter into two or more contracts at or near the same time, the contracts may be combined and accounted for as one contract, in which case we determine whether the services or products in the combined contract are distinct. A service or product that is promised to a customer is distinct if both of the following criteria are met: the customer can benefit from the service or product either on its own or together with other resources that are readily available to the customer; and our promise to transfer the service or product to the customer is separately identifiable from other promises in the contract. Revenue is recognized when (or as) control of a promised service or product transfers to a customer, in an amount that reflects the consideration (which represents the transaction price) to which we expect to be entitled in exchange for transferring that service or product. If the consideration promised in a contract includes a variable amount, we estimate the amount to which we expect to be entitled using either the expected value or most likely amount method. Our contracts may include terms that could cause variability in the consideration, including, for example, rebates, volume discounts, service-level penalties, and performance bonuses or other forms of contingent revenue. Our standard payment terms dictate that payment is due upon receipt of invoice, payable within 30 days. Invoices are generally issued as control transfers and/or as services are rendered. Additionally, in determining the transaction price, we adjust the promised amount of consideration for the effects of the time value of money if the payment terms are not standard and the timing of payments agreed to by the parties to the contract provide the customer or the Company with a significant benefit of financing, in which case the contract contains a significant financing component. Most arrangements that contain a significant financing component include explicit financing terms. We may include subcontractor services or third-party vendor services or products in certain arrangements. In these arrangements, revenue from sales of third-party vendor services or products are recorded net of costs when we are acting as an agent between the customer and the vendor, and gross when we are the principal for the transaction. To determine whether we are an agent or principal, we consider whether we obtain control of the services or products before they are transferred to the customer. In making this evaluation, several factors are considered, most notably whether we have primary responsibility for fulfillment to the customer, as well as inventory risk and pricing discretion. Additional information on revenue recognition is included in Note 4.- Revenue Recognition. Arrangements with Multiple Performance Obligations We often enter into contracts that consist of a combination of services and products based on the needs of our customers, which may include post-contract support for the software and a contract for post-warranty maintenance service for the hardware. These contracts consist of multiple services and products, whereby the hardware and software may be delivered in one period and the software support and hardware maintenance services are delivered over time. To the extent that a service or product in an arrangement with multiple performance obligations is subject to other specific accounting guidance, that service or product is accounted for in accordance with such specific guidance. For all other distinct services and products in these arrangements, the arrangement transaction price is allocated to each performance obligation on a relative standalone selling price basis or another method that depicts the amount of consideration to which we expect to be entitled in exchange for transferring the promised services or products. If the services and products are not distinct, we determine an appropriate measure of progress based on the nature of our overall promise for the single performance obligation. To the extent we grant the customer the option to acquire additional services or products in one of these arrangements, we account for the option as a distinct performance obligation in the contract only if the option provides a material right to the customer that it would not receive without entering into the contract (i.e., a significant discount incremental to the range of discounts typically given for the service or product), in which case the customer in effect pays in advance for the option to purchase future services or products. We allocate a portion of the transaction price to the material right and recognize revenue when those future services or products are transferred or when the option expires. Standalone Selling Price We allocate the transaction price to each performance obligation on a relative standalone selling price (“SSP”) basis. The SSP is the price at which we would sell a promised service or product separately to a customer. In some instances, we are able to establish SSP based on the observable prices of services or products sold separately in comparable circumstances to a similar customer. We typically establish an SSP range for our services and products that are reassessed on a periodic basis or when facts and circumstances change. In other instances, we may not be able to establish an SSP range based on observable prices, and we estimate the SSP by considering multiple factors including, but not limited to, overall market conditions, including geographic or regional specific factors, competitive positioning, competitor actions, internal costs, profit objectives, and pricing practices. Estimating SSP is a formal process that includes review and approval by management. Contract Costs Certain eligible, non-recurring costs incurred in the initial phases of service contracts are capitalized and amortized ratably over the expected period of benefit, which includes anticipated contract renewals or extensions. Recurring operating costs in these contracts are recognized as incurred. Practical Expedients and Exemptions We report revenue net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions. We generally expense incremental costs of obtaining a contract (e.g., sales commissions) when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses in our consolidated statements of operations. For certain of our long-term contracts, recoverable costs are capitalized and amortized on a straight-line basis over the expected customer relationship period. We do not account for significant financing components if the period between when we transfer the promised service or product to the customer and when the customer pays for that service or product will be one year or less. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) performance obligations for which we recognize revenue at the amount that we have the right to invoice for services performed, (iii) contracts for which variable consideration is accounted for in accordance with sales-based or usage-based royalty guidance, and (iv) wholly unperformed contracts. Contract Assets and Liabilities Contract assets arise from contracts when revenue is recognized over time and the amount of revenue recognized exceeds the amount billed to the customer. These amounts are included in contract assets until the right to payment is no longer conditional on events other than the passage of time. Contract liabilities include deferred revenue, advance payments, and billings in excess of revenue recognized. | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation represents the cost related to stock-based awards granted to directors and employees. Stock-based compensation cost is measured at the grant date or modification date, based on the estimated fair value of the award and recognized as expense, net of estimated forfeitures, over the vesting periods. For awards subject to cliff vesting, compensation | |
Advertising | Advertising Advertising costs are expensed as incurred. Advertising expense was $33 million, $25 million, and $34 million for the years ended December 31, 2021, 2020, and 2019, respectively. | |
Research and Development Costs | Research and Development CostsResearch and development costs (“R&D”), which principally include employee compensation costs, are expensed as incurred. | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist primarily of highly liquid investments purchased with an original maturity of three months or less at the date of acquisition, such as bank deposits, money market funds, and interest bearing bank accounts with insignificant interest rate risk. The fair value of cash and cash equivalents approximates the carrying amount. | |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash EquivalentsWe are required by gaming regulations to maintain sufficient reserves in restricted cash accounts to be used for the purpose of funding payments to WAP jackpot winners. These restricted cash balances are based primarily on the jackpot meters displayed to slot players, or for previously won jackpots, and vary by jurisdiction. Under our Italian Lotto contract, we deposit wagers, net of prizes paid and retailer commissions retained by the retailer at point of sale, into bank accounts, the use of which is restricted based on the contract with our customer. Restricted cash is also maintained for interactive digital player deposits, collections on factored and serviced receivables not yet paid through to the third-party owner, and for customer funds received in relation to the provision of our commercial services. These amounts are restricted based on the contracts with our customers or local regulations. | |
Allowance for Credit Losses | Allowance for Credit Losses We maintain an allowance for credit losses on receivables resulting from the expected failure or inability of our customers to make required payments. The allowance is regularly reviewed by considering factors such as the creditworthiness of our customers, historical experience, aging of receivables, and current market and economic conditions, as well as management’s expectations of future conditions when appropriate. The allowance is deducted from the amortized cost basis of the receivable to present the net amount expected to be collected. We estimate expected credit losses on receivables on a collective (pool) basis when similar risk characteristics exist. Trade and other receivables and customer financing receivables represent the initial pools which are segregated further by business segment, geography, internal risk rating, and aging. The risk of loss is assessed over the contractual life of the receivables and we adjust historical loss rates for current and future conditions based on qualitative considerations. The expected loss rate for each receivable pool is applied to the aggregate receivable balance to determine the allowance requirement. Receivables are written off against the allowance in the period they are determined to be uncollectible. We determine delinquency based on the contractual payment terms. An account may be considered delinquent if there are unpaid balances remaining on the account the day after the contractual due date. For amounts due from certain government customers in the Global Lottery business segment, we have not established an allowance as we have no expectation of loss based on a long history of no credit losses and the explicit guarantee of a sovereign entity. | |
Inventories | Inventories Inventories are stated at the lower of cost (applying the first in, first out method) and net realizable value. Allowances are made for defective, obsolete, or excess inventory. | |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale We classify assets and liabilities (disposal groups) to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the disposal group; the disposal group is available for immediate sale in its present condition subject to terms customary for sales of such disposal groups; an active program to locate a buyer and other actions required to complete the plan to sell the disposal group have been initiated; the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale within one year; the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. We initially measure a disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a disposal group until the date of sale. We assess the fair value of a disposal group, less any costs to sell, each reporting period it remains classified as held for sale and report any subsequent changes as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the carrying value of the disposal group at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, we report the assets and liabilities of the disposal group, if material, in the line items assets held for sale and liabilities held for sale in the consolidated balance sheet in each period presented. Refer to Note 3 - Discontinued Operations and Assets Held for Sale , for further information. | |
Systems, Equipment and Other Assets Related to Contracts, Net and Property, Plant and Equipment, Net | Systems, Equipment and Other Assets Related to Contracts, Net and Property, Plant and Equipment, Net We have two categories of fixed assets: systems, equipment and other assets related to contracts (“Systems & Equipment”) and property, plant and equipment (“PPE”). Systems & Equipment are assets that primarily support our operating contracts, FMCs, and WAP systems (collectively, the “Contracts”) and are principally composed of lottery and gaming assets, including those that are accounted for as operating leases with our customers. PPE are assets we use internally, not associated with Contracts, primarily related to production and assembly, selling, general and administration, and R&D. Systems & Equipment and PPE are stated at cost, net of accumulated depreciation and accumulated impairment loss, if any. Costs incurred for Systems & Equipment and PPE not yet placed into service are classified as construction in progress and are not depreciated until placed in service. Depreciation is recognized on a straight-line basis over the estimated useful lives of the assets. Repair and maintenance costs are expensed as incurred, whereas major improvements that increase asset values and extend useful lives are capitalized. Systems & Equipment and PPE are tested for impairment whenever events or changes in circumstances indicate the carrying amount of those assets may not be recoverable. An impairment loss is recognized only if the carrying amount is not recoverable and exceeds its fair value. The carrying amount is not recoverable if it exceeds the sum of the undiscounted forecasted cash flows resulting from the use and eventual disposition of such asset. An impairment loss is measured as the amount by which the carrying amount exceeds its fair value. | |
Goodwill | Goodwill The assets and liabilities of acquired businesses are recorded under the acquisition method of accounting at their estimated fair values at the date of acquisition. Goodwill represents costs in excess of fair values assigned to the underlying identifiable net assets of acquired businesses, and is stated at cost less accumulated impairment losses. Goodwill has been allocated to and is tested for impairment at the reporting unit level, which is the same level as our operating segments. We evaluate our reporting units annually and if necessary, reassign goodwill using a relative fair value approach. As of December 31, 2021 we have identified three reporting units: Global Lottery, Global Gaming, and Digital & Betting. Goodwill is tested for impairment annually, in the fourth quarter, or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. The goodwill impairment test compares the fair value of a reporting unit with its carrying amount and an impairment loss is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. In performing the goodwill impairment test, we estimate the fair value of the reporting units using an income approach based on projected discounted cash flows. We have the option to first assess various qualitative factors (commonly | |
Other Intangible Assets | Other Intangible Assets Other intangible assets, which include indefinite-lived and definite-lived intangible assets, are stated at cost, less accumulated amortization and accumulated impairment losses. Indefinite-lived intangible assets are composed of trademarks for which there is no foreseeable limit of the period over which they are expected to generate net cash inflows. Definite-lived intangible assets, which are primarily composed of customer relationships and computer software and game library, are capitalized and amortized on a straight-line basis over their estimated economic lives. Estimated useful lives are determined considering the period the assets are expected to contribute to future cash flows. Amortization of software-related intangibles is included in cost of services and cost of product sales and amortization of other intangible assets is included in selling, general and administrative expenses in the consolidated statement of operations. | |
Capitalized Software Development Costs | Capitalized Software Development Costs Costs incurred in the development of our externally-sold software products are expensed as incurred, except certain software development costs eligible for capitalization. Software development costs incurred subsequent to establishing technological feasibility and through the general release of the software products are capitalized. Capitalized costs are amortized over the products’ estimated economic life to cost of product sales in the consolidated statements of operations. | |
Capitalized Software Development Costs | Costs incurred during the application development phase of software for services provided to customers are capitalized as internal-use software and amortized over the useful life to cost of services in the consolidated statements of operations. Costs incurred during the application development of software for internal use, and not for use in services provided to customers, are capitalized and amortized over the useful life to selling, general and administrative expenses in the consolidated statements of operations. | |
Upfront License Fees | Upfront License Fees We periodically make long-term investments in contracts with customers and obtain licenses to supply products and services to our customers. As consideration, we pay license fees, which are classified as other non-current assets in the consolidated balance sheets. We recognize the amortization of the license fees as a reduction of service revenue over the estimated economic life of the license term. This method reflects the pattern in which economic benefits are expected to be realized. The recoverability of each payment is subject to significant estimates about future revenues related to the contracts’ future cash flows. We evaluate these assets for impairment and update amortization rates on an agreement by agreement basis. The assets are reviewed for impairment whenever events or changes in circumstances indicate their carrying amount may not be recoverable. In periods in which payments are made to the customer, we classify the payment as a cash outflow from operating activities in the consolidated statements of cash flows. | |
Jackpot Accounting | Jackpot Accounting We incur costs to fund jackpots and accrue jackpot liabilities with every wager on devices connected to a WAP system. Jackpot liabilities are estimated based on the size of the jackpot, the number of WAP units in service, variations and volume of play, and interest rate movements. Jackpots are generally payable to winners immediately, in the case of instant wins, or in equal annual installments over 19 to 25 years. Winners may elect to receive a lump sum payment for the present value of the jackpot discounted at applicable interest rates in lieu of periodic annual installments. Jackpot liabilities are composed of payments due to previous winners, and amounts due to future winners of jackpots not yet won. Liabilities due to previous winners for periodic payments are carried at the accreted cost of a qualifying U.S. government or agency annuity investment that may be purchased at the time of the jackpot win. If the periodic liability is not initially funded with an annuity investment, it is discounted and accreted using the risk-free rate at the time of the jackpot win. Liabilities due to future winners are recorded at the present value of the estimated amount of jackpots not yet won. We estimate the present value of these liabilities using current market rates, weighted with historical lump sum payout election ratios. Based on the most recent historical patterns, approximately 95% of winners will elect the lump sum payment option. The current portion of these liabilities are estimated based on historical experience with winner payment elections, in conjunction with the theoretical projected number of jackpots. | |
Legal and Other Contingencies | Legal and Other Contingencies Loss contingency provisions arising from a legal proceeding or claim are recorded for probable and estimable losses at the best estimate of a loss, or when a best estimate cannot be made, at the minimum estimated loss, the determination of which requires significant judgment. If it is reasonably possible but not probable that a liability has been incurred, or if the amount of a probable loss cannot be reasonably estimated, the amount or range of estimated loss is disclosed, if material. We evaluate our provisions for legal contingencies at least quarterly and, as appropriate, establish new provisions or adjust existing provisions to reflect the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings, and other relevant events and developments, the advice of counsel, and the assumptions and judgment of management. Legal costs are expensed as incurred. Treasury Stock We account for treasury stock acquisitions using the cost method. We account for the retirement of treasury stock by deducting its par value from common stock and reflecting any excess of cost over par value as a deduction from additional paid-in capital in the consolidated balance sheets. | |
Fair Value Measurements | Fair Value Measurements We account for certain financial assets and liabilities at fair value. Financial assets and liabilities are categorized, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the use of observable inputs and the lowest priority to the use of unobservable inputs. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. These levels are as follows: • Level 1 - inputs are based upon unadjusted quoted prices for identical instruments in active markets • Level 2 - inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the instruments | |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative financial instruments for the management of foreign currency risks and interest rate risks. We do not enter into derivatives for speculative purposes. Derivatives are recognized as either assets or liabilities in the consolidated balance sheet at fair value. All derivatives are recorded gross, except netting of foreign exchange contracts and counterparty netting of interest receivable and payable related to interest rate swaps, as applicable. The accounting for changes in the fair value of a derivative depends on the nature of the hedge and the hedge effectiveness. Derivative gains and losses are reported in the consolidated statements of cash flows consistent with the classification of the cash flows from the underlying hedged items. For derivative instruments designated as cash flow hedges, gains and losses are recorded in other comprehensive income (loss) and are subsequently reclassified when the hedged item affects earnings. At that time, the amount is reclassified from other comprehensive income (loss) to the same income statement line as the earnings effect of the hedged item. For derivative instruments designated as fair value hedges, changes in fair value are recorded in interest expense and are offset by changes in the fair value of the underlying debt instrument due to changes in the benchmark interest rate. In the event the derivative instruments are subsequently de-designated as hedges, the change in fair value is recognized in interest expense, net in the consolidated statements of operations with no corresponding offset to debt. For derivative instruments designated as net investment hedges, the spot portion of the derivative gain or loss is reported in foreign currency translation within other comprehensive income (loss) to offset any gains or losses on translation of the net investment in the subsidiary until the net investment is sold or liquidated, at which point the amounts are reclassified to earnings. All other components of the derivative fair value will be reported as either interest income or interest expense, on an amortized basis. Derivative instruments not designated as hedges are recognized in the consolidated balance sheet at fair value with the changes in fair value recorded in foreign exchange (gain) loss, net in the consolidated statements of operations. | |
Leases | Leases We determine whether a contract is or contains a lease at inception. As a lessee, we recognize right-of-use (“ROU”) assets and lease liabilities on the lease commencement date based on the present value of lease payments over the lease term. ROU assets also include any upfront lease payments or initial direct costs and are adjusted for lease incentives received. We consider renewal and termination options, including whether they are reasonably certain to be exercised, in determining the lease term and establishing the ROU assets and lease liabilities. ROU assets and lease liabilities are calculated using our incremental borrowing rate, which is based on the lease currency and length of the lease, unless the implicit rate is determinable. Most of our lease contracts contain both lease and non-lease components. As a lessee, we combine lease and non-lease components into a single lease component for all classes of underlying assets except certain communication equipment. For certain communication equipment, we allocate the consideration between lease and non-lease components based on relative standalone price. Lease expense is recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred except for certain rent payments that depend on an index, which are included in lease payments using the index rate in effect as of the lease commencement date. Short-term leases, which are leases with an initial term of 12 months or less with no purchase options that are reasonably certain of exercise, are not recognized on the balance sheet. The rental payments are recognized as lease expense on a straight-line basis over the lease term. Certain of our long term lottery and commercial gaming service arrangements include leases for equipment installed at customer locations. As the lessor, we combine lease and non-lease components for all classes of underlying assets in arrangements that involve operating leases. The single combined component is accounted for under ASC 842, Leases , or ASC 606, Revenue from Contracts with Customers (“ASC 606”), depending on which component is the predominant component in the arrangement. If a component cannot be combined, the consideration is allocated between the lease component and the non-lease component based on relative standalone selling price. | |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the tax basis of assets and liabilities and their reported amounts using the enacted tax rates in effect for the year in which the differences are expected to reverse. Tax credits are generally recognized as reductions of income tax provisions in the year in which the credits arise. The measurement of deferred tax assets is reduced by a valuation allowance if, based upon available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The effect of a change in income tax rates is recognized as income or expense in the period that includes the enacted or substantively enacted date. Accounting for uncertainty in income taxes recognized in the consolidated financial statements is in accordance with accounting authoritative guidance, which prescribes a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more likely than not” to be sustained, the tax position is then assessed to determine the amount of the benefit to recognize in the consolidated financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50 percent likelihood of being realized upon ultimate settlement. We recognize interest and penalties related to unrecognized tax benefits in provision for income taxes in the consolidated statement of operations. Accrued interest and penalties are included within other non-current liabilities in the consolidated balance sheets. We use the period cost method for global intangible low-taxed income (“GILTI”) provisions and therefore have not recorded deferred taxes for basis differences expected to reverse in future periods. | |
Foreign Currency Translation | Foreign Currency TranslationThe financial statements of subsidiaries with functional currencies other than the U.S. dollar are translated into U.S. dollars, with the resulting translation adjustments recorded as a component of accumulated other comprehensive income (“AOCI”) within shareholders’ equity. Assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the balance sheet date, while income and expense items are translated using the average exchange rates during the period. | |
New Accounting Standards - Recently Adopted and Not Yet Adopted | New Accounting Standards - Recently Adopted In July 2021, the FASB issued ASU No. 2021-05, Leases (Topic 842) - Lessors - Certain Leases with Variable Lease Payments (“ASU 2021-05”). This update requires sales-type or direct financing leases with variable payments that do not depend on a rate or an index and would have otherwise resulted in a day-one loss at lease commencement, to be classified as operating leases. The amendments in ASU 2021-05 are effective for annual periods beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted. The amendments can be applied retrospectively to leases that commenced or were modified on or after adoption of ASC 842, Leases , or prospectively to leases that commence or are modified on or after the date of adoption. We adopted ASU 2021-05 as of October 1, 2021 and applied the provisions prospectively to leases that commenced or were modified on or after October 1, 2021. The adoption did not have a material impact on our consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40) (“ASU 2020-06”). This update simplifies the convertible debt accounting framework by reducing the number of accounting models used to account for convertible debt and preferred stock instruments. It also amends the accounting for certain contracts in an entity's own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies the diluted earnings per share calculations for convertible debt instruments. We adopted ASU 2020-06 as of January 1, 2021 using a modified retrospective approach. The adoption did not have a material impact on our consolidated financial statements and had no effect on earnings per share information in the period of adoption. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This update provides, among other things, simplifications for accounting for income taxes by removing certain exceptions. We adopted ASU 2019-12 as of January 1, 2021 and applied it prospectively. The adoption did not have a material impact on our consolidated financial statements. New Accounting Standards - Not Yet Adopted In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). The amendments create an exception to the general recognition and measurement principal in ASC 805, Business Combinations to measure assets and liabilities acquired in a business combination at fair value. Instead, an acquirer in a business combination will be required to apply ASC 606 to recognize and measure contract assets and contract liabilities that result from contracts accounted for under ASC 606 on the acquisition date and will generally result in the acquirer recognizing amounts consistent with those recorded by the acquiree immediately before the acquisition date. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the timing and impact of adopting this guidance. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This update provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848) - Scope (“ASU 2021-01”) to clarify that ASU 2020-04 may apply to certain derivative contracts and hedging relationships affected by changes in the interest rates used for margining, discounting, or contract price alignment in connection with reference rate reform activities. The amendments in ASU 2020-04 and ASU 2021-01 are effective upon issuance through December 31, 2022. We are currently evaluating these optional elections and the timing and impact of adopting this guidance. We do not currently expect that any other recently issued accounting guidance will have a significant effect on the consolidated financial statements. |
Discontinued Operations and A_2
Discontinued Operations and Assets Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Financial Information of Discontinued Operations and Assets Held for Sale | Summarized financial information for discontinued operations is shown below: For the year ended December 31, ($ in millions) 2021 2020 2019 Total revenue 74 429 778 Operating income (1) 24 51 159 Income from discontinued operations before provision for (benefit from) income taxes 23 43 157 (Benefit from) provision for income taxes on discontinued operations (1) 7 42 Gain on sale of discontinued operations before provision for income taxes 396 — — Provision for income taxes on sale of discontinued operations 5 — — Income from discontinued operations 415 37 114 Less: Net (loss) income attributable to non-controlling interests from discontinued operations (2) (5) 5 Income from discontinued operations attributable to IGT PLC 417 41 110 (1) Includes depreciation and amortization of $95 million and $100 million for the years ended 2020 and 2019, respectively. There was no depreciation and amortization in 2021. The Company has continuing involvement with the businesses via a transition services agreement (“TSA”). As part of the TSA, the Company provides various telecommunications, information technology, and back-office services for which the Company will continue to receive compensation. These services generally expire after no more than three years. The following represents the major classes of assets and liabilities held for sale as part of our discontinued operations: December 31, ($ in millions) 2020 Assets: Trade and other receivables, net 62 Other current assets 58 Systems, equipment and other assets related to contracts, net 86 Goodwill 520 Intangible assets, net 55 Other non-current assets 52 Assets held for sale 833 Liabilities: Accounts payable 63 Other current liabilities 164 Other non-current liabilities 23 Liabilities held for sale 250 The Company allocated $520 million of goodwill to discontinued operations using a relative fair value approach. Prior to the allocation to discontinued operations, the goodwill was included within our Global Gaming segment. At December 31, 2021 and 2020, there were $4 million and $5 million, respectively, of other disposal groups that meet the requirements to be classified as held for sale included in assets held for sale in our consolidated balance sheets. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables summarize revenue disaggregated by business segment and the source of the revenue for the years ended December 31, 2021, 2020, and 2019: For the year ended December 31, 2021 ($ in millions) Global Lottery Global Gaming Digital & Betting Total Operating and facilities management contracts 2,363 — — 2,363 Gaming terminal services — 424 — 424 Digital and betting services — — 163 163 Systems, software, and other 327 206 — 534 Service revenue 2,690 630 163 3,483 Lottery products 123 — — 123 Gaming terminals — 339 — 339 Other — 143 1 144 Product sales 123 482 1 606 Total revenue 2,812 1,112 165 4,089 For the year ended December 31, 2020 ($ in millions) Global Lottery Global Gaming Digital & Betting Total Operating and facilities management contracts 1,744 — — 1,744 Gaming terminal services — 298 — 298 Digital and betting services — — 114 114 Systems, software, and other 299 186 — 484 Service revenue 2,043 483 114 2,640 Lottery products 121 — — 121 Gaming terminals — 205 — 205 Other — 148 1 149 Product sales 121 354 1 476 Total revenue 2,164 837 115 3,115 For the year ended December 31, 2019 ($ in millions) Global Lottery Global Gaming Digital & Betting Total Operating and facilities management contracts 1,931 — — 1,931 Gaming terminal services — 568 — 568 Digital and betting services — — 76 76 Systems, software, and other 252 274 — 527 Service revenue 2,183 842 76 3,101 Lottery products 110 — — 110 Gaming terminals — 581 — 581 Other — 225 15 240 Product sales 110 806 15 931 Total revenue 2,293 1,648 91 4,032 |
Contract with Customer, Asset and Liability | Information about contract assets and contract liabilities is as follows: ($ in millions) December 31, 2021 December 31, 2020 Balance Sheet Classification Contract assets: Current 49 53 Other current assets Non-current 69 75 Other non-current assets 118 128 Contract liabilities: Current (104) (108) Other current liabilities Non-current (47) (62) Other non-current liabilities (151) (170) |
Trade and Other Receivables, _2
Trade and Other Receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Trade and Other Receivables, Net | December 31, ($ in millions) 2021 2020 Trade and other receivables, gross 917 862 Allowance for credit losses (15) (16) Trade and other receivables, net 903 846 |
Schedule of Activity of Allowance for Credit Losses Related to Trade and Other Receivables | The following table presents the activity in the allowance for credit losses: December 31, ($ in millions) 2021 2020 2019 Balance at beginning of year (16) (22) (29) (Provisions) recoveries, net (2) (6) 3 Amounts written off as uncollectible 2 10 3 Other (1) — 3 — Balance at end of year (15) (16) (22) (1) Includes the effect of the adoption of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments (“ASC 326”) in 2020. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | December 31, ($ in millions) 2021 2020 Raw materials 107 86 Work in progress 25 23 Finished goods 78 103 Inventories, gross 211 212 Obsolescence reserve (28) (43) Inventories, net 183 169 |
Schedule of Restructuring Reserve by Type of Cost | The following table presents the activity in the obsolescence reserve: December 31, ($ in millions) 2021 2020 2019 Balance at beginning of year (43) (34) (40) Provisions, net (1) (34) (29) Amounts written off 11 24 23 Other 4 1 12 Balance at end of year (28) (43) (34) The following table presents the activity in the restructuring liabilities for the above plans for the years ended December 31, 2021 and December 31, 2020: ($ in millions) Severance and Related Employee Costs Other Total Balance at December 31, 2019 — — — 2020 segment reorganization plan expense, net 16 — 16 2020 global supply chain optimization plan expense, net (1) 5 3 8 2020 technology organization consolidation plan expense, net 17 — 17 Cash paid for all plans (16) (2) (18) Reversals of expense and other 1 — 1 Balance at December 31, 2020 23 1 24 2021 Italian workforce redundancies plan expense, net 11 — 11 Cash paid for all plans (17) — (17) Reversals of expense and other (5) (1) (6) Balance at December 31, 2021 12 1 13 (1) Other includes approximately $1 million of asset impairment costs, the offset of which is property, plant and equipment, net in the consolidated balance sheet. |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Schedule of Other Current Assets | December 31, ($ in millions) Notes 2021 2020 Customer financing receivables, net 170 232 Other receivables 158 8 Income taxes receivable 64 45 Prepaid expenses 54 39 Contract assets 4 49 53 Value-added tax receivable 28 46 Other 67 55 589 480 |
Schedule of Other Non-Current Assets | December 31, ($ in millions) Notes 2021 2020 Upfront license fees, net: Italian Scratch & Win 680 845 Italian Lotto 380 516 New Jersey 66 74 Indiana 9 10 1,134 1,446 Customer financing receivables, net 92 84 Contract assets 4 69 75 Deferred income taxes 17 39 33 Finance lease right-of-use assets 11 29 33 Other 66 103 1,429 1,774 |
Capitalized Contract Cost | The upfront license fees are being amortized on a straight-line basis as follows: Upfront License Fee License Term Amortization Start Date Italian Scratch & Win 9 years October 2019 Italian Lotto 9 years December 2016 New Jersey 15 years, 9 months October 2013 Indiana 15 years July 2013 |
Schedule of Customer Financing Receivables, Net and Activity in the Allowance for Credit Losses | Customer financing receivables are recorded at amortized cost, net of any allowance for credit losses, and are classified in the consolidated balance sheets as follows: December 31, 2021 ($ in millions) Current Assets Non-Current Assets Total Customer financing receivables, gross 220 111 332 Allowance for credit losses (51) (20) (71) Customer financing receivables, net 170 92 261 December 31, 2020 ($ in millions) Current Assets Non-Current Assets Total Customer financing receivables, gross 275 91 365 Allowance for credit losses (43) (7) (50) Customer financing receivables, net 232 84 316 The following table presents the activity in the allowance for credit losses: December 31, ($ in millions) 2021 2020 2019 Balance at beginning of year (50) (32) (29) Provisions, net (29) (37) (2) Amounts written off as uncollectible 8 24 — Other (1) — (5) — Balance at end of year (71) (50) (32) (1) Includes the effect of the adoption of ASC 326 in 2020. |
Financing Receivable Credit Quality Indicators | The customer financing receivables at amortized cost by year of origination and the geography credit quality indicator at December 31, 2021 are as follows: Year of Origination ($ in millions) 2021 2020 2019 2018 Prior Total North America 31 26 7 — 2 67 LAC 34 14 88 28 10 174 EMEA & APAC 46 13 16 13 2 91 111 54 112 41 14 332 The past due balance, which represents installments that are one day or more past their contractual due date, of customer financing receivables at amortized cost and the geography credit quality indicator at December 31, 2021 is as follows: ($ in millions) North America LAC EMEA & APAC Total Past due 2 77 17 96 Short-term portion not yet due 35 47 42 124 Long-term portion not yet due 30 50 32 111 67 174 91 332 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value | Our significant financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 and 2020 are as follows: December 31, 2021 ($ in millions) Balance Sheet Location Level 1 Level 2 Level 3 Total Fair Value Assets: Derivative assets Other current and other non-current assets — 3 — 3 Equity investments Other non-current assets 6 — — 6 Liabilities: Derivative liabilities Other current and other non-current liabilities — 2 — 2 December 31, 2020 ($ in millions) Balance Sheet Location Level 1 Level 2 Level 3 Total Fair Value Assets: Derivative assets Other current and other non-current assets — 11 — 11 Equity investments Other non-current assets 6 — — 6 Liabilities: Derivative liabilities Other current and other non-current liabilities — 10 — 10 |
Schedule of Fair Value Hierarchy for Financial Assets and Liabilities not Measured at Fair Value | The carrying amounts and fair value hierarchy classification of our significant financial assets and liabilities not carried at fair value as of December 31, 2021 and 2020 are as follows: December 31, 2021 ($ in millions) Carrying Level 1 Level 2 Level 3 Total Fair Value Assets: Customer financing receivables, net 261 — — 245 245 Equity investments 11 — — 11 11 Liabilities: Jackpot liabilities 196 — — 184 184 Debt (1) 6,477 — 6,792 — 6,792 December 31, 2020 ($ in millions) Carrying Level 1 Level 2 Level 3 Total Fair Value Assets: Customer financing receivables, net 316 — — 313 313 Equity investments 12 — — 12 12 Liabilities: Jackpot liabilities 219 — — 211 211 Debt (1) 8,243 — 8,702 — 8,702 (1) Excludes short-term borrowings and swap adjustments. |
Systems, Equipment and Other _2
Systems, Equipment and Other Assets Related to Contracts, net and Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |
Schedule of Systems & Equipment and PPE, net | Systems & Equipment and PPE, net consist of the following: Systems & Equipment, net PPE, net December 31, December 31, ($ in millions) 2021 2020 2021 2020 Land — — 1 1 Buildings — 2 58 69 Terminals and systems 2,479 2,615 — — Furniture and equipment 138 150 255 259 Construction in progress 75 77 10 15 2,691 2,844 324 344 Accumulated depreciation (1,754) (1,776) (205) (212) 937 1,068 119 132 |
Schedule of Useful Lives Of Assets | The estimated useful lives of assets are as follows: Asset Estimated life in years Systems & Equipment Buildings 40 Terminals and systems - lottery Generally do not exceed 10 years Terminals and systems - gaming 3-5 Furniture and equipment Generally do not exceed 10 years PPE Buildings 40 Furniture and equipment 5-10 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee | The classification of our operating and finance leases in the consolidated balance sheets is as follows: December 31, ($ in millions) Balance Sheet Classification 2021 2020 Assets: Operating ROU asset Operating lease right-of-use assets 283 288 Finance ROU asset, net (1) Other non-current assets 29 33 Total lease assets 312 321 Liabilities: Operating lease liability, current Other current liabilities 39 44 Finance lease liability, current Other current liabilities 10 11 Operating lease liability, non-current Operating lease liabilities 269 266 Finance lease liability, non-current Other non-current liabilities 27 31 Total lease liabilities 344 352 (1) Finance ROU assets are recorded net of accumulated amortization of $24 million and $16 million at December 31, 2021 and 2020, respectively. |
Lease, Cost | Weighted-average lease terms and discount rates are as follows: December 31, 2021 2020 2019 Weighted-Average Remaining Lease Term (in years) Operating leases 8.47 8.32 8.80 Finance leases 4.73 5.13 6.01 Weighted-Average Discount Rate Operating leases 6.71 % 7.01 % 7.74 % Finance leases 4.98 % 5.16 % 5.45 % Components of lease expense are as follows: For the year ended December 31, ($ in millions) 2021 2020 2019 Operating lease costs 71 72 76 Finance lease costs (1) 13 11 10 Variable lease costs (2) 23 23 22 (1) Includes amortization of ROU assets of $11 million, $9 million, and $8 million for the years ended December 31, 2021, 2020, and 2019, respectively and interest on lease liabilities of $2 million, $2 million, and $2 million, f or the years ended December 31, 2021, 2020, and 2019, respectively. (2) Includes immaterial amounts related to short-term leases and sublease income. |
Lessee, Operating Lease, Liability, Maturity | Maturities of operating and finance lease liabilities at December 31, 2021 are as follows ($ in millions): Year Operating Leases Finance Leases Total (1) 2022 57 11 69 2023 52 9 60 2024 48 6 55 2025 44 6 49 2026 39 5 44 Thereafter 170 4 174 Total lease payments 410 41 451 Less: Imputed interest (102) (5) (107) Present value of lease liabilities 307 37 344 (1) The maturities above exclude leases that have not yet commenced. We have committed rental payments of $8.9 million for leases that will commence in 2022 with lease terms ranging from 7-9 years. |
Finance Lease, Liability, Maturity | Maturities of operating and finance lease liabilities at December 31, 2021 are as follows ($ in millions): Year Operating Leases Finance Leases Total (1) 2022 57 11 69 2023 52 9 60 2024 48 6 55 2025 44 6 49 2026 39 5 44 Thereafter 170 4 174 Total lease payments 410 41 451 Less: Imputed interest (102) (5) (107) Present value of lease liabilities 307 37 344 (1) The maturities above exclude leases that have not yet commenced. We have committed rental payments of $8.9 million for leases that will commence in 2022 with lease terms ranging from 7-9 years. |
Cash Flow and Non-Cash Activity, Leases | Cash flow information and non-cash activity related to leases is as follows: For the year ended December 31, ($ in millions) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating and finance leases 67 68 74 Finance cash flows from finance leases 13 10 8 Non-cash activity: ROU assets obtained in exchange for lease obligations (net of early terminations) Operating leases 5 34 13 Finance leases 7 6 9 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table presents the activity in the obsolescence reserve: December 31, ($ in millions) 2021 2020 2019 Balance at beginning of year (43) (34) (40) Provisions, net (1) (34) (29) Amounts written off 11 24 23 Other 4 1 12 Balance at end of year (28) (43) (34) The following table presents the activity in the restructuring liabilities for the above plans for the years ended December 31, 2021 and December 31, 2020: ($ in millions) Severance and Related Employee Costs Other Total Balance at December 31, 2019 — — — 2020 segment reorganization plan expense, net 16 — 16 2020 global supply chain optimization plan expense, net (1) 5 3 8 2020 technology organization consolidation plan expense, net 17 — 17 Cash paid for all plans (16) (2) (18) Reversals of expense and other 1 — 1 Balance at December 31, 2020 23 1 24 2021 Italian workforce redundancies plan expense, net 11 — 11 Cash paid for all plans (17) — (17) Reversals of expense and other (5) (1) (6) Balance at December 31, 2021 12 1 13 (1) Other includes approximately $1 million of asset impairment costs, the offset of which is property, plant and equipment, net in the consolidated balance sheet. |
Schedule of Restructuring Expense by Segment and Type of Cost | The following table summarizes consolidated restructuring expense by segment and type of cost: For the year ended December 31, 2021 ($ in millions) Severance and Related Employee Costs Other Total Global Lottery 8 — 8 Global Gaming (3) (1) (4) Digital & Betting (1) — (1) Corporate and Other 2 — 2 Total 6 (1) 6 For the year ended December 31, 2020 ($ in millions) Severance and Related Employee Costs Other Total Global Lottery 5 — 5 Global Gaming 28 4 32 Digital & Betting 2 — 2 Corporate and Other 6 — 6 Total 41 4 45 For the year ended December 31, 2019 ($ in millions) Severance and Related Employee Costs Other Total Global Lottery 2 — 2 Global Gaming 3 (1) 2 Digital & Betting (1) — 16 16 Corporate and Other 2 3 4 Total 7 18 25 (1) Primarily consists of asset impairment costs. |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill, net | |
Schedule of Changes in Carrying Amount of Goodwill, net | Changes in the carrying amount of goodwill consist of the following: Reporting Units Prior to July 1, 2020 Reporting Units Subsequent to September 1, 2021 (1) ($ in millions) North America Gaming and Interactive North America Lottery International Italy Global Lottery Global Gaming Digital & Betting Discontinued Operations Total Balance at December 31, 2019 1,440 1,222 1,308 1,482 — — — (520) 4,931 Impairment (103) — (193) — — — — — (296) Segment realignment (1,337) (1,222) (1,113) (1,480) 2,942 2,209 — — — Foreign currency translation — — (2) (2) 55 28 — — 78 Discontinued operations — — — — — (520) — 520 — Balance at December 31, 2020 — — — — 2,997 1,716 — — 4,713 Segment realignment — — — — — (265) 265 — — Foreign currency translation — — — — (49) (5) (3) — (58) Balance at December 31, 2021 — — — — 2,948 1,446 261 — 4,656 (1) From July 1, 2020 to August 31, 2021, we operated under only two business segments: Global Lottery and Global Gaming. |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Intangible Assets | Intangible assets at December 31, 2021 and 2020 are summarized as follows: December 31, 2021 December 31, 2020 ($ in millions) Estimated Life (Years) Weighted- Average Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Amortized: Customer relationships 2-20 15.5 2,298 1,349 949 2,300 1,230 1,070 Computer software and game library 3-14 5.6 918 809 109 918 784 134 Trademarks 1-20 14.1 185 106 80 186 92 94 Developed technologies 2-15 5.6 233 216 17 225 213 13 Licenses 3-23 3.5 65 58 6 69 59 11 Other 4-17 9.0 35 28 7 37 27 10 3,734 2,566 1,168 3,736 2,403 1,332 Unamortized: Trademarks 245 — 245 245 — 245 3,979 2,566 1,413 3,981 2,403 1,577 |
Schedule of Intangible Assets, not Subject to Amortization | Intangible assets at December 31, 2021 and 2020 are summarized as follows: December 31, 2021 December 31, 2020 ($ in millions) Estimated Life (Years) Weighted- Average Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Amortized: Customer relationships 2-20 15.5 2,298 1,349 949 2,300 1,230 1,070 Computer software and game library 3-14 5.6 918 809 109 918 784 134 Trademarks 1-20 14.1 185 106 80 186 92 94 Developed technologies 2-15 5.6 233 216 17 225 213 13 Licenses 3-23 3.5 65 58 6 69 59 11 Other 4-17 9.0 35 28 7 37 27 10 3,734 2,566 1,168 3,736 2,403 1,332 Unamortized: Trademarks 245 — 245 245 — 245 3,979 2,566 1,413 3,981 2,403 1,577 |
Schedule of Expected Amortization Expense on Intangible Assets | Amortization expense on intangible assets for the next five years is expected to be as follows ($ in millions): Year Amount 2022 186 2023 163 2024 146 2025 122 2026 111 728 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Reconciliation of Principal Balances of Debt Obligations to the Balance Sheet | The Company’s long-term debt obligations consist of the following: December 31, 2021 ($ in millions) Principal Debt issuance Total 5.350% Senior Secured U.S. Dollar Notes due October 2023 61 — 61 3.500% Senior Secured Euro Notes due July 2024 566 (3) 564 6.500% Senior Secured U.S. Dollar Notes due February 2025 1,100 (7) 1,093 4.125% Senior Secured U.S. Dollar Notes due April 2026 750 (6) 744 3.500% Senior Secured Euro Notes due June 2026 849 (5) 844 6.250% Senior Secured U.S. Dollar Notes due January 2027 750 (5) 745 2.375% Senior Secured Euro Notes due April 2028 566 (4) 562 5.250% Senior Secured U.S. Dollar Notes due January 2029 750 (6) 744 Senior Secured Notes 5,393 (36) 5,357 Euro Term Loan Facilities due January 2027 1,133 (12) 1,121 Long-term debt, less current portion 6,525 (48) 6,477 Short-term borrowings 52 — 52 Total debt 6,577 (48) 6,529 December 31, 2020 ($ in millions) Principal Debt issuance Swap Total 6.250% Senior Secured U.S. Dollar Notes due February 2022 1,000 (3) 7 1,004 4.750% Senior Secured Euro Notes due February 2023 1,043 (5) — 1,038 5.350% Senior Secured U.S. Dollar Notes due October 2023 61 — — 61 3.500% Senior Secured Euro Notes due July 2024 614 (4) — 610 6.500% Senior Secured U.S. Dollar Notes due February 2025 1,100 (8) — 1,092 3.500% Senior Secured Euro Notes due June 2026 920 (7) — 913 6.250% Senior Secured U.S. Dollar Notes due January 2027 750 (6) — 744 2.375% Senior Secured Euro Notes due April 2028 614 (5) — 608 5.250% Senior Secured U.S. Dollar Notes due January 2029 750 (7) — 743 Senior Secured Notes 6,851 (45) 7 6,813 Euro Term Loan Facilities due January 2027 1,055 (11) — 1,044 Long-term debt, less current portion 7,906 (56) 7 7,857 Euro Term Loan Facility due January 2027 393 — — 393 Current portion of long-term debt 393 — — 393 Total debt 8,299 (56) 7 8,250 At December 31, 2021 and December 31, 2020, $17 million and $24 million, respectively, of debt issuance costs, net for the Revolving Credit Facilities with no outstanding borrowings, are recorded as other non-current assets in the consolidated balance sheets. |
Summary of Payments due under Significant Contractual Commitments | The principal amount of long-term debt maturing over the next five years and thereafter as of December 31, 2021 is as follows ($ in millions): Year U.S. Dollar Denominated Euro Denominated Total 2022 — — — 2023 61 — 61 2024 — 793 793 2025 1,100 227 1,327 2026 750 1,076 1,826 2027 and thereafter 1,500 1,019 2,519 Total principal payments 3,411 3,115 6,525 The borrowers must repay the Euro Term Loan Facilities in installments, as detailed below: Due Date Amount January 25, 2024 200 January 25, 2025 200 January 25, 2026 200 January 25, 2027 400 |
Schedule of Senior Secured Notes | The key terms of our senior secured notes (the “Notes”), which were rated Ba3 and BB by Moody’s Investor Service (“Moody’s”) and Standard & Poor’s Ratings Services (“S&P”), respectively, at December 31, 2021, are as follows: Description Principal Effective Issuer Guarantors Collateral Redemption Interest payments 5.350% Senior Secured U.S. Dollar Notes due October 2023 $61 5.47% IGT ** †† + Semi-annually in arrears 3.500% Senior Secured Euro Notes due July 2024 €500 3.68% Parent * † ++ Semi-annually in arrears 6.500% Senior Secured U.S. Dollar Notes due February 2025 $1,100 6.71% Parent * † ++ Semi-annually in arrears 4.125% Senior Secured U.S. Dollar Notes due April 2026 $750 4.34% Parent * † +++ Semi-annually in arrears 3.500% Senior Secured Euro Notes due June 2026 €750 3.65% Parent * † +++ Semi-annually in arrears 6.250% Senior Secured U.S. Dollar Notes due January 2027 $750 6.41% Parent * † ++ Semi-annually in arrears 2.375% Senior Secured Euro Notes due April 2028 €500 2.50% Parent * † +++ Semi-annually in arrears 5.250% Senior Secured U.S. Dollar Notes due January 2029 $750 5.39% Parent * † +++ Semi-annually in arrears * Certain subsidiaries of the Parent. ** The Parent and certain subsidiaries of the Parent. † Ownership interests in certain subsidiaries of the Parent, certain intercompany loans with principal balances in excess of $10 million and certain accounts receivable. †† Certain intercompany loans with principal balances in excess of $10 million and certain accounts receivable. + International Game Technology (“IGT”) may redeem in whole or in part at any time prior to maturity at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. IGT may also redeem in whole or in part at 100% of their principal amount together with accrued and unpaid interest in connection with certain gaming regulatory events. Upon the occurrence of certain events, IGT will be required to offer to repurchase all of the notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. ++ The Parent may redeem in whole or in part at any time prior to the date which is six months prior to maturity at 100% of their principal amount together with accrued and unpaid interest and a make-whole premium. After such date, the Parent may redeem in whole or in part at 100% of their principal amount together with accrued and unpaid interest. The Parent may also redeem in whole but not in part at 100% of their principal amount together with accrued and unpaid interest in connection with certain tax events. Upon the occurrence of certain events, the Parent will be required to offer to repurchase all of the notes at a price equal to 101% of their principal amount together with accrued and unpaid interest. |
Schedule of Revolving Credit Facilities | The Parent and certain of its subsidiaries are party to a Senior Facilities Agreement dated November 4, 2014, as amended (the “RCF Agreement”), which provides for the following multi-currency revolving credit facilities (the “Revolving Credit Facilities”) which mature on July 31, 2024: Maximum Amount Facility Borrowers $1,050 Revolving Credit Facility A Parent, IGT, and IGT Global Solutions Corporation €625 Revolving Credit Facility B Parent, IGT Lottery S.p.A. (formerly Lottomatica Holding S.r.l), and IGT Lottery Holdings B.V. |
Summary of Letters of Credit Outstanding and Weighted Average Annual Cost of Letters of Credit | The following table summarizes the letters of credit outstanding at December 31, 2021 and 2020 and the weighted-average annual cost of such letters of credit: ($ in millions) Letters of Credit Outstanding (1) Weighted- December 31, 2021 335 1.08 % December 31, 2020 427 1.06 % (1) Represents letters of credit outstanding not under the Revolving Credit Facilities. |
Schedule of Interest Expense | For the year ended December 31, ($ in millions) 2021 2020 2019 Senior Secured Notes 292 344 351 Term Loan Facilities 30 37 36 Revolving Credit Facilities 29 31 28 Other 4 1 8 Interest expense 354 413 423 Interest income (13) (15) (12) Interest expense, net 341 398 411 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | December 31, ($ in millions) Notes 2021 2020 Employee compensation 171 90 Contract liabilities 4 104 108 Income taxes payable 104 26 Accrued interest payable 100 138 Accrued expenses 75 118 Taxes other than income taxes 72 96 Jackpot liabilities 18 66 71 Current financial liabilities 61 128 Operating lease liabilities 11 39 44 Other 35 26 828 846 |
Schedule of Other Non-Current Liabilities | December 31, ($ in millions) Notes 2021 2020 Jackpot liabilities 18 130 148 Contract liabilities 4 47 62 Reserves for uncertain tax positions 47 48 Finance lease liabilities 11 27 31 Other 72 72 323 360 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) before the Provision for Income Taxes by Jurisdiction | The components of income (loss) from continuing operations before provision for income taxes, determined by tax jurisdiction, are as follows: For the year ended December 31, ($ in millions) 2021 2020 2019 United Kingdom 40 (355) 35 United States (20) (776) (301) Italy 438 229 351 Other 70 55 43 529 (848) 128 |
Provision (Benefit) for Income Taxes | The provision for income taxes consists of: For the year ended December 31, ($ in millions) 2021 2020 2019 Current: United Kingdom — (1) 2 United States 41 10 46 Italy 155 66 104 Other 40 31 49 236 106 202 Deferred: United States 76 (62) (69) Italy (22) (1) 1 Other (16) (16) (3) 38 (78) (71) 274 28 131 |
Reconciliation of the Provision for Income Taxes, With the Amount Computed by Applying United Kingdom Statutory Main Corporation Tax Rates | A reconciliation of the provision for income taxes, from the amount computed by applying the U.K. statutory main corporation tax rates enacted in each of the Parent’s calendar year reporting periods to income (loss) from continuing operations before provision for income taxes is as follows: For the year ended December 31, ($ in millions) 2021 2020 2019 Income (loss) from continuing operations before provision for income taxes 529 (848) 128 United Kingdom statutory tax rate 19.0 % 19.0 % 19.0 % Statutory tax expense (benefit) 100 (161) 24 Change in valuation allowances 125 128 1 Italy regional tax (“IRAP”) and state taxes 41 9 23 Non-deductible expenses 25 2 2 Base erosion and anti-abuse (“BEAT”) tax 17 13 31 Foreign tax and statutory rate differential (1) 17 (14) 3 Foreign tax expense, net of U.S. federal benefit 11 10 14 Provision to return 6 — — GILTI tax 5 3 5 Non-deductible goodwill impairment — 56 19 Change in unrecognized tax benefits — 1 7 Non-taxable gains on investments — — (6) Italian allowance for corporate equity (3) (4) (2) Non-taxable foreign exchange gain (11) — (4) Italian patent box tax benefit (27) — — Tax law changes (38) (20) — Other 5 4 15 274 28 131 Effective tax rate 51.8 % (3.3) % 102.1 % (1) Includes the effects of foreign subsidiaries’ earnings taxed at rates other than the U.K. statutory rate |
Components of Deferred Tax Assets and Liabilities, and Net Deferred Income Taxes Recorded in the Consolidated Balance Sheet | The components of deferred tax assets and liabilities are as follows: December 31, ($ in millions) 2021 2020 Deferred tax assets: Net operating losses 286 300 Section 163(j) interest limitation 190 155 Italian goodwill tax step-up 119 — Provisions not currently deductible for tax purposes 85 88 Lease liabilities 66 70 Jackpot timing differences 30 39 Depreciation and amortization 29 26 Inventory reserves 10 2 Other 63 47 Gross deferred tax assets 878 728 Valuation allowance (412) (284) Deferred tax assets, net of valuation allowance 466 444 Deferred tax liabilities: Acquired intangible assets 462 506 Depreciation and amortization 163 161 Italian goodwill equity reserve liability 105 — Lease right-of-use assets 60 65 Other 6 12 Total deferred tax liabilities 795 744 Net deferred income tax liability (329) (300) Our net deferred income taxes are recorded in the consolidated balance sheets as follows: December 31, ($ in millions) 2021 2020 Deferred income taxes - non-current asset 39 33 Deferred income taxes - non-current liability (368) (333) (329) (300) |
Reconciliation of the Beginning and Ending Amount of Valuation Allowance | A reconciliation of the valuation allowance is as follows: December 31, ($ in millions) 2021 2020 2019 Balance at beginning of year 284 156 171 Net charges to expense 86 120 1 Tax rate change 39 8 — Provision to return adjustment 3 — — Expiration of tax attributes — — (15) Balance at end of year 412 284 156 |
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the unrecognized tax benefits is as follows: December 31, ($ in millions) 2021 2020 2019 Balance at beginning of year 27 29 27 Additions to tax positions - current year 1 — 1 Additions to tax positions - prior years — — 2 Reductions to tax positions - prior years (1) (2) — Lapses in statutes of limitations — (1) (1) Balance at end of year 27 27 29 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Jackpot Liabilities Recorded as Current and Non-current Liabilities | Jackpot liabilities are recorded as current and non-current liabilities as follows: ($ in millions) December 31, 2021 Current liabilities 66 Non-current liabilities 130 196 |
Schedule of Future Jackpot Payments | Future jackpot liabilities as of December 31, 2021 are due as follows: ($ in millions) Previous Winners Future Winners Total 2022 25 41 66 2023 20 10 31 2024 18 1 18 2025 15 1 16 2026 13 1 13 Thereafter 72 8 79 Future jackpot payments due 163 60 223 Unamortized discounts (27) Total jackpot liabilities 196 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Shares of Common Stock Outstanding | Ordinary shares outstanding were as follows: December 31, 2021 2020 2019 Balance at beginning of year 204,856,564 204,435,333 204,210,731 Shares issued under restricted stock plans 331,554 421,231 224,602 Repurchases of common stock (1,500,000) — — Balance at end of year 203,688,118 204,856,564 204,435,333 |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following table details the changes in AOCI: Unrealized Gain (Loss) on: AOCI ($ in millions) Foreign Hedges Other Total Attributable Attributable to IGT PLC Balance at December 31, 2018 247 (7) 1 242 20 262 Change during period (18) — 3 (15) 16 1 Reclassified to operations (1) 2 (2) — (1) — (1) Tax effect — — — 1 — 1 Other comprehensive (loss) income (17) (1) 3 (15) 16 1 Balance at December 31, 2019 231 (8) 4 227 36 263 Change during period 128 (1) — 127 (59) 68 Reclassified to operations (1) (1) — — (1) — (1) Other comprehensive income (loss) 128 (1) — 127 (59) 67 Balance at December 31, 2020 358 (9) 4 353 (24) 330 Change during period 9 3 (1) 11 51 62 Reclassified to operations (1) 19 1 — 20 1 21 Tax effect — (1) — — — — Other comprehensive income (loss) 28 3 (1) 30 52 82 Balance at December 31, 2021 387 (6) 3 384 28 412 (1) Foreign currency translation of approximately $19 million was reclassified into gain on sale of discontinued operations, net of tax on the consolidated statements of operations for the year ended December 31, 2021. Other foreign currency translation adjustments related to liquidated subsidiaries were reclassified into foreign exchange (gain) loss, net on the consolidated statements of operations for the years ended December 31, 2020 and 2019. Unrealized gain (loss) on hedges were reclassified into service revenue on the consolidated statements of operations for the years ended December 31, 2021 and 2019. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of VIE's Assets an Liabilities | We hold ownership interests in the following variable interest entities (“VIEs”): Name of subsidiary % Ownership held Lottoitalia S.r.l. (“Lottoitalia”) 61.50 % Lotterie Nazionali S.r.l. (“LN”) 64.00 % Northstar New Jersey Lottery Group, LLC (“Northstar NJ”) (1) 82.31 % (1) Northstar New Jersey Holding Company LLC, of which we are a 50.15% shareholder, holds the 82.31% ownership in Northstar NJ. The carrying amounts and classification of these VIEs’ assets and liabilities in our consolidated balance sheets at December 31, 2021 and 2020 are as follows: December 31, ($ in millions) 2021 2020 Current assets 1,124 1,087 Non-current assets 1,217 1,556 Total assets 2,341 2,643 Total liabilities 615 708 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Segment information is as follows: For the year ended December 31, 2021 ($ in millions) Global Lottery Global Gaming Digital & Betting Business Segment Total Corporate and Other Total IGT PLC Service revenue 2,690 630 163 3,483 — 3,483 Product sales 123 482 1 606 — 606 Total revenue 2,812 1,112 165 4,089 — 4,089 Operating income (loss) 1,088 43 33 1,164 (262) 902 Depreciation and amortization 225 126 15 366 160 526 Expenditures for long-lived assets (123) (67) (13) (203) (6) (208) For the year ended December 31, 2020 ($ in millions) Global Lottery Global Gaming Digital & Betting Business Segment Total Corporate and Other Total IGT PLC Service revenue 2,043 483 114 2,640 — 2,640 Product sales 121 354 1 476 — 476 Total revenue 2,164 837 115 3,115 — 3,115 Operating income (loss) 642 (212) 6 436 (544) (107) Depreciation and amortization 231 146 15 392 175 566 Expenditures for long-lived assets (149) (64) (11) (224) (2) (226) For the year ended December 31, 2019 ($ in millions) Global Lottery Global Gaming Digital & Betting Business Segment Total Corporate and Other Total IGT PLC Service revenue 2,183 842 76 3,101 — 3,101 Product sales 110 806 15 931 — 931 Total revenue 2,293 1,648 91 4,032 — 4,032 Operating income (loss) 697 222 (43) 877 (399) 478 Depreciation and amortization 225 173 18 416 198 614 Expenditures for long-lived assets (167) (154) (13) (334) (8) (342) |
Schedule of Revenue from External Customers Based on Geographical Location | Revenue from external customers, which is based on the geographical location of our customers, is as follows: For the year ended December 31, ($ in millions) 2021 2020 2019 United States 2,126 1,666 2,116 Italy 1,307 896 990 United Kingdom 72 64 74 Rest of Europe 217 209 323 All other 368 280 530 Total 4,089 3,115 4,032 |
Schedule of Long-Lived Assets Based on Geographical Location | Long-lived assets, which are comprised of Systems & Equipment and PPE, are based on the geographical location of the assets as follows: December 31, ($ in millions) 2021 2020 United States 766 841 Italy 125 176 United Kingdom 9 14 Rest of Europe 93 91 All other 63 77 Total 1,056 1,200 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity and Related Information | A summary of our stock option activity and related information is as follows: Weighted-Average Stock Exercise Price Per Share ($) Remaining Contractual Term (in years) Aggregate Intrinsic Value ($ in millions) Outstanding at January 1, 2021 422,500 21.49 Granted 172,500 20.37 Forfeited (172,500) 30.12 Outstanding at December 31, 2021 422,500 17.51 2.82 At December 31, 2021: Vested and expected to vest 422,500 17.51 2.82 5 Exercisable 250,000 15.53 0.38 3 |
Schedule of Key Inputs and Assumptions in Stock Option Valuation Models | The weighted-average grant date fair value of stock options granted during 2021 was $9.82 per share. 2021 Valuation model Monte Carlo Exercise price ($) 20.37 Expected option term (in years) 2.00 Expected volatility of the Company’s stock (%) 60.00 Risk-free interest rate (%) 0.80 Dividend yield (%) — |
Summary of Stock Award Activity and Related Information | A summary of our stock award activity and related information is as follows: PSUs Weighted- Average Grant Date Fair Value ($) RSUs Weighted- Average Grant Date Fair Value ($) Nonvested at January 1, 2021 3,356,966 18.40 2,366,383 9.05 Granted 3,740,075 26.10 79,844 22.29 Vested (200,995) 20.91 (1,198,742) 9.05 Forfeited (1,595,221) 25.87 (188,013) 9.08 Nonvested at December 31, 2021 5,300,825 21.50 1,059,472 10.05 At December 31, 2021: Unrecognized cost for nonvested awards ($ in millions) 85 5 Weighted-average future recognition period (in years) 2.93 0.92 |
Schedule of Fair Value of Stock Awards Granted Including Weighted Average Grant Date Fair Value | Details of the grants are as follows: 2021 2020 2019 PSUs granted during the year 3,740,075 — 2,133,512 Weighted-average grant date fair value ($) 26.10 — 11.10 RSUs granted during the year 79,844 2,375,141 131,676 Weighted-average grant date fair value ($) 22.29 9.04 14.10 |
Schedule of Stock-Based Compensation Expense | Total compensation cost (recovery) for our stock-based compensation plans is recorded based on the employees’ respective functions as detailed below. For the year ended December 31, ($ in millions) 2021 2020 2019 Cost of services 2 (1) 2 Selling, general and administrative 30 (4) 21 Research and development 3 (1) 3 Stock-based compensation expense before income taxes 35 (7) 27 Income tax benefit (provision) 8 (2) 6 Total stock-based compensation, net of tax 27 (5) 20 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share of Common Stock | The following table presents the computation of basic and diluted income (loss) per share of common stock: For the year ended December 31, ($ in millions and shares in thousands, except per share amounts) 2021 2020 2019 Numerator: Net income (loss) from continuing operations attributable to IGT PLC 65 (939) (129) Net income from discontinued operations attributable to IGT PLC 417 41 110 Net income (loss) attributable to IGT PLC 482 (898) (19) Denominator: Weighted-average shares - basic 204,954 204,725 204,373 Incremental shares under stock based compensation plans 1,841 — — Weighted-average shares - diluted 206,795 204,725 204,373 Net income (loss) from continuing operations attributable to IGT PLC per common share - basic 0.32 (4.59) (0.63) Net income (loss) from continuing operations attributable to IGT PLC per common share - diluted 0.31 (4.59) (0.63) Net income from discontinued operations attributable to IGT PLC per common share - basic 2.03 0.20 0.54 Net income from discontinued operations attributable to IGT PLC per common share - diluted 2.02 0.20 0.54 Net income (loss) attributable to IGT PLC per common share - basic 2.35 (4.39) (0.09) Net income (loss) attributable to IGT PLC per common share - diluted 2.33 (4.39) (0.09) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Transactions with Related Parties | Related party transactions with the De Agostini Group are as follows: December 31, ($ in millions) 2021 2020 Tax-related receivables 4 — Trade payables 1 5 Tax-related payables 3 19 |
Description of Business (Detail
Description of Business (Details) | Dec. 31, 2021country |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries in which the company opeartes | 100 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 4 Months Ended | 12 Months Ended | ||
Dec. 31, 2021reporting_unit | Dec. 31, 2021USD ($)fixed_asset_type | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Accounting Policies [Abstract] | ||||
Advertising expense | $ | $ 33 | $ 25 | $ 34 | |
Number of principle types of fixed assets | fixed_asset_type | 2 | |||
Number of reporting units | reporting_unit | 3 | |||
Period of annual installments for jackpot liabilities, low end of range | 19 years | |||
Period of annual installments for jackpot liabilities, high end of range | 25 years | |||
Historical lump sum payout election rate (as a percent) | 95.00% |
Discontinued Operations and A_3
Discontinued Operations and Assets Held for Sale - Narrative (Details) € in Millions, $ in Millions | Sep. 30, 2022EUR (€) | Aug. 05, 2021EUR (€) | May 10, 2021USD ($) | Dec. 07, 2020EUR (€) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | May 31, 2021 | May 20, 2021 | May 10, 2021EUR (€) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Gain on sale of discontinued operations, net of tax | $ 391 | $ 0 | $ 0 | |||||||
Other disposal groups, classified as held for sale | $ 4 | $ 839 | ||||||||
4.750% Senior Secured Euro Notes due February 2023 | Senior Notes | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Stated interest rate on debt (as a percent) | 4.75% | 4.75% | 4.75% | 4.75% | ||||||
Discontinued Operations, Held-for-sale | Lottomatica Videolot Rete S.p.A. And Lottomatica Scommesse S.r.l. | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Percentage of share capital sold | 100.00% | |||||||||
Sale price | € | € 950 | |||||||||
Cash consideration | € | € 100 | € 725 | ||||||||
Discontinued Operations, Held-for-sale | Lottomatica Videolot Rete S.p.A. And Lottomatica Scommesse S.r.l. | Forecast | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Cash consideration | € | € 125 | |||||||||
Discontinued Operations, Disposed of by Sale | Lottomatica Videolot Rete S.p.A. And Lottomatica Scommesse S.r.l. | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Sale price | € | € 1,000 | |||||||||
Disposal group, cash and cash equivalents | $ 139 | |||||||||
Gain on sale of discontinued operations before provision for income taxes | 396 | $ 396 | $ 0 | $ 0 | ||||||
Gain on sale of discontinued operations, net of tax | $ 391 | |||||||||
Goodwill | 520 | |||||||||
Discontinued Operations, Disposed of by Sale | Lottomatica Videolot Rete S.p.A. And Lottomatica Scommesse S.r.l. | Maximum | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Period of continuing involvement | 3 years | |||||||||
Disposal Group, Held-for-sale | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Other disposal groups, classified as held for sale | $ 4 | $ 5 |
Discontinued Operations and A_4
Discontinued Operations and Assets Held for Sale - Financial Results of Discontinued Operations (Details) - USD ($) $ in Millions | May 10, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations | $ 415 | $ 37 | $ 114 | |
Less: Net (loss) income attributable to non-controlling interests from discontinued operations | (2) | (5) | 5 | |
Income from discontinued operations attributable to IGT PLC | 417 | 41 | 110 | |
Lottomatica Videolot Rete S.p.A. And Lottomatica Scommesse S.r.l. | Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total revenue | 74 | 429 | 778 | |
Operating income | 24 | 51 | 159 | |
Income from discontinued operations before provision for (benefit from) income taxes | 23 | 43 | 157 | |
(Benefit from) provision for income taxes on discontinued operations | (1) | 7 | 42 | |
Gain on sale of discontinued operations before provision for income taxes | $ 396 | 396 | 0 | 0 |
Provision for income taxes on sale of discontinued operations | 5 | 0 | 0 | |
Income from discontinued operations | 415 | 37 | 114 | |
Less: Net (loss) income attributable to non-controlling interests from discontinued operations | (2) | (5) | 5 | |
Income from discontinued operations attributable to IGT PLC | 417 | 41 | 110 | |
Depreciation and amortization | $ 0 | $ 95 | $ 100 |
Discontinued Operations and A_5
Discontinued Operations and Assets Held for Sale - Liabilities and Assets Held for Sale (Details) - Discontinued Operations, Disposed of by Sale - Lottomatica Videolot Rete S.p.A. And Lottomatica Scommesse S.r.l. $ in Millions | Dec. 31, 2020USD ($) |
Assets: | |
Trade and other receivables, net | $ 62 |
Other current assets | 58 |
Systems, equipment and other assets related to contracts, net | 86 |
Goodwill | 520 |
Intangible assets, net | 55 |
Other non-current assets | 52 |
Assets held for sale | 833 |
Liabilities: | |
Accounts payable | 63 |
Other current liabilities | 164 |
Other non-current liabilities | 23 |
Liabilities held for sale | $ 250 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 4,089 | $ 3,115 | $ 4,032 |
Service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,483 | 2,640 | 3,101 |
Operating and facilities management contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,363 | 1,744 | 1,931 |
Gaming terminal services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 424 | 298 | 568 |
Digital and betting services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 163 | 114 | 76 |
Systems, software, and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 534 | 484 | 527 |
Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 606 | 476 | 931 |
Lottery products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 123 | 121 | 110 |
Gaming terminals | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 339 | 205 | 581 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 144 | 149 | 240 |
Global Lottery | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,812 | 2,164 | 2,293 |
Global Lottery | Service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,690 | 2,043 | 2,183 |
Global Lottery | Operating and facilities management contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,363 | 1,744 | 1,931 |
Global Lottery | Gaming terminal services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Lottery | Digital and betting services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Lottery | Systems, software, and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 327 | 299 | 252 |
Global Lottery | Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 123 | 121 | 110 |
Global Lottery | Lottery products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 123 | 121 | 110 |
Global Lottery | Gaming terminals | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Lottery | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Gaming | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,112 | 837 | 1,648 |
Global Gaming | Service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 630 | 483 | 842 |
Global Gaming | Operating and facilities management contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Gaming | Gaming terminal services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 424 | 298 | 568 |
Global Gaming | Digital and betting services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Gaming | Systems, software, and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 206 | 186 | 274 |
Global Gaming | Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 482 | 354 | 806 |
Global Gaming | Lottery products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Global Gaming | Gaming terminals | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 339 | 205 | 581 |
Global Gaming | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 143 | 148 | 225 |
Digital & Betting | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 165 | 115 | 91 |
Digital & Betting | Service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 163 | 114 | 76 |
Digital & Betting | Operating and facilities management contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Digital & Betting | Gaming terminal services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Digital & Betting | Digital and betting services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 163 | 114 | 76 |
Digital & Betting | Systems, software, and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Digital & Betting | Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1 | 1 | 15 |
Digital & Betting | Lottery products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Digital & Betting | Gaming terminals | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Digital & Betting | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1 | $ 1 | $ 15 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Contract assets: | ||
Current | $ 49,000 | $ 53,000 |
Non-current | 69,000 | 75,000 |
Contract with customer, asset, net | 118,000 | 128,000 |
Contract liabilities: | ||
Current | (104,000) | (108,000) |
Non-current | (47,000) | (62,000) |
Contract with customer, liability | $ (151,000) | $ (170,000) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Contract with customer, liability, revenue recognized | $ 107 | $ 56 | $ 51 |
Revenue, remaining performance obligation | $ 1,100 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |||
Disaggregation of Revenue [Line Items] | |||
Revenue remaining performance obligation percentage | 28.00% | ||
Expected timing of satisfaction, period | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |||
Disaggregation of Revenue [Line Items] | |||
Revenue remaining performance obligation percentage | 34.00% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Expected timing of satisfaction, period | 13 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Expected timing of satisfaction, period | 36 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |||
Disaggregation of Revenue [Line Items] | |||
Revenue remaining performance obligation percentage | 22.00% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Expected timing of satisfaction, period | 37 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Expected timing of satisfaction, period | 60 months |
Trade and Other Receivables, _3
Trade and Other Receivables, net - Schedule of Trade and Other Receivables, Net (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||||
Trade and other receivables, gross | $ 917 | $ 862 | ||
Allowance for credit losses | (15) | (16) | $ (22) | $ (29) |
Trade and other receivables, net | $ 903 | $ 846 |
Trade and Other Receivables, _4
Trade and Other Receivables, net - Schedule of Activity of Allowance for Credit Losses Related to Trade and Other Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Activity of allowance for credit losses related to trade and other receivables | |||
Balance at beginning of year | $ (16) | $ (22) | $ (29) |
(Provisions) recoveries, net | (2) | (6) | 3 |
Amounts written off as uncollectible | 2 | 10 | 3 |
Other | 0 | 3 | 0 |
Balance at end of year | $ (15) | $ (16) | $ (22) |
Trade and Other Receivables, _5
Trade and Other Receivables, net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
Account receivables sold during the period | $ 1,100 | $ 1,500 |
Factoring agreements, amounts collected on behalf of others | $ 57 | $ 110 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||||
Raw materials | $ 107 | $ 86 | ||
Work in progress | 25 | 23 | ||
Finished goods | 78 | 103 | ||
Inventories, gross | 211 | 212 | ||
Obsolescence reserve | (28) | (43) | $ (34) | $ (40) |
Inventories, net | $ 183 | $ 169 |
Inventories - Restructuring Res
Inventories - Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory Valuation Reserve [Roll Forward] | |||
Balance at beginning of year | $ (43) | $ (34) | $ (40) |
Provisions, net | (1) | (34) | (29) |
Amounts written off | 11 | 24 | 23 |
Other | 4 | 1 | 12 |
Balance at end of year | $ (28) | $ (43) | $ (34) |
Other Assets - Other Current As
Other Assets - Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other current assets | ||
Amount of receivables sold during the period | $ 170,000 | $ 232,000 |
Other receivables | 158,000 | 8,000 |
Income taxes receivable | 64,000 | 45,000 |
Prepaid expenses | 54,000 | 39,000 |
Contract assets | 49,000 | 53,000 |
Value-added tax receivable | 28,000 | 46,000 |
Other | 67,000 | 55,000 |
Total other current assets | $ 589,000 | $ 480,000 |
Other Assets - Non-Current Asse
Other Assets - Non-Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other non-current assets | ||
Upfront license fees, net | $ 1,134,000 | $ 1,446,000 |
Customer financing receivables, net | 92,000 | 84,000 |
Contract assets | 69,000 | 75,000 |
Deferred income taxes | 39,000 | 33,000 |
Finance lease right-of-use assets | 29,000 | 33,000 |
Other | 66,000 | 103,000 |
Total other non-current assets | 1,429,000 | 1,774,000 |
Italian Scratch & Win | ||
Other non-current assets | ||
Upfront license fees, net | 680,000 | 845,000 |
Italian Lotto | ||
Other non-current assets | ||
Upfront license fees, net | 380,000 | 516,000 |
New Jersey | ||
Other non-current assets | ||
Upfront license fees, net | 66,000 | 74,000 |
Indiana | ||
Other non-current assets | ||
Upfront license fees, net | $ 9,000 | $ 10,000 |
Other Assets - Schedule of Capi
Other Assets - Schedule of Capitalized Contract Costs (Details) | Dec. 31, 2021 |
Italian Scratch & Win | |
Capitalized Contract Cost [Line Items] | |
Capitalized contract cost, amortization period | 9 years |
Italian Lotto | |
Capitalized Contract Cost [Line Items] | |
Capitalized contract cost, amortization period | 9 years |
New Jersey | |
Capitalized Contract Cost [Line Items] | |
Capitalized contract cost, amortization period | 15 years 9 months |
Indiana | |
Capitalized Contract Cost [Line Items] | |
Capitalized contract cost, amortization period | 15 years |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
May 31, 2019USD ($) | May 31, 2019EUR (€) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Other non-current assets | ||||||
Gain on disposition of other assets | $ 29 | € 26 | $ 9 | $ 0 | $ 65 | |
Customer portfolio segment | ||||||
Other non-current assets | ||||||
Amounts written off as uncollectible | 8 | 24 | 0 | |||
Allowance for credit losses | 71 | 50 | $ 32 | $ 29 | ||
Customer portfolio segment | LAC | ||||||
Other non-current assets | ||||||
Allowance for credit losses | $ 58 | $ 43 |
Other Assets - Customer Financi
Other Assets - Customer Financing Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Customer financing receivables, net | ||||
Customer financing receivables, gross | $ 332 | |||
Customer financing receivables, net, current | 170 | $ 232 | ||
Customer financing receivables, net, non-current | 92 | 84 | ||
Customer portfolio segment | ||||
Customer financing receivables, net | ||||
Customer financing receivables, gross, current | 220 | 275 | ||
Customer financing receivables, gross, non-current | 111 | 91 | ||
Customer financing receivables, gross | 332 | 365 | ||
Allowance for credit losses, current | (51) | (43) | ||
Allowance for credit losses, non-current | (20) | (7) | ||
Allowance for credit losses | (71) | (50) | $ (32) | $ (29) |
Customer financing receivables, net, current | 170 | 232 | ||
Customer financing receivables, net, non-current | $ 92 | $ 84 |
Other Assets - Activity in Allo
Other Assets - Activity in Allowance for Credit Losses (Details) - Customer portfolio segment - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Activity in allowance for credit losses related to customer financing receivables, net | |||
Balance at beginning of year | $ (50) | $ (32) | $ (29) |
Provisions, net | (29) | (37) | (2) |
Amounts written off as uncollectible | 8 | 24 | 0 |
Other | 0 | (5) | 0 |
Balance at end of year | $ (71) | $ (50) | $ (32) |
Other Assets - Customer Finan_2
Other Assets - Customer Financing Receivables at Amortized Cost by Year of Origination (Details) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, year one | $ 111 | ||||
Financing receivable, year two | $ 54 | ||||
Financing receivable, year three | $ 112 | ||||
Financing receivable, year four | $ 41 | ||||
Financing receivable, year five and prior | $ 14 | ||||
Customer financing receivables, gross | 332 | ||||
Short-term portion not yet due | 124 | ||||
Long-term portion not yet due | 111 | ||||
Financial Asset, Past Due | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Customer financing receivables, gross | 96 | ||||
North America | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, year one | 31 | ||||
Financing receivable, year two | 26 | ||||
Financing receivable, year three | 7 | ||||
Financing receivable, year four | 0 | ||||
Financing receivable, year five and prior | 2 | ||||
Customer financing receivables, gross | 67 | ||||
Short-term portion not yet due | 35 | ||||
Long-term portion not yet due | 30 | ||||
North America | Financial Asset, Past Due | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Customer financing receivables, gross | 2 | ||||
LAC | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, year one | 34 | ||||
Financing receivable, year two | 14 | ||||
Financing receivable, year three | 88 | ||||
Financing receivable, year four | 28 | ||||
Financing receivable, year five and prior | 10 | ||||
Customer financing receivables, gross | 174 | ||||
Short-term portion not yet due | 47 | ||||
Long-term portion not yet due | 50 | ||||
LAC | Financial Asset, Past Due | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Customer financing receivables, gross | 77 | ||||
EMEA & APAC | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, year one | 46 | ||||
Financing receivable, year two | $ 13 | ||||
Financing receivable, year three | $ 16 | ||||
Financing receivable, year four | $ 13 | ||||
Financing receivable, year five and prior | $ 2 | ||||
Customer financing receivables, gross | 91 | ||||
Short-term portion not yet due | 42 | ||||
Long-term portion not yet due | 32 | ||||
EMEA & APAC | Financial Asset, Past Due | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Customer financing receivables, gross | $ 17 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value (Details) - Measured at fair value on a recurring basis - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets and liabilities carried at fair value | ||
Derivative assets | $ 3 | $ 11 |
Equity investments | 6 | 6 |
Derivative liabilities | 2 | 10 |
Level 1 | ||
Financial assets and liabilities carried at fair value | ||
Derivative assets | 0 | 0 |
Equity investments | 6 | 6 |
Derivative liabilities | 0 | 0 |
Level 2 | ||
Financial assets and liabilities carried at fair value | ||
Derivative assets | 3 | 11 |
Equity investments | 0 | 0 |
Derivative liabilities | 2 | 10 |
Level 3 | ||
Financial assets and liabilities carried at fair value | ||
Derivative assets | 0 | 0 |
Equity investments | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value Hierarchy for Financial Assets and Liabilities not Measured at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investments | $ 11 | $ 12 |
Jackpot liabilities | 196 | 219 |
Debt | 6,477 | 8,243 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investments | 11 | 12 |
Jackpot liabilities | 184 | 211 |
Debt | 6,792 | 8,702 |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investments | 0 | 0 |
Jackpot liabilities | 0 | 0 |
Debt | 0 | 0 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investments | 0 | 0 |
Jackpot liabilities | 0 | 0 |
Debt | 6,792 | 8,702 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investments | 11 | 12 |
Jackpot liabilities | 184 | 211 |
Debt | 0 | 0 |
Customer portfolio segment | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | 261 | 316 |
Customer portfolio segment | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | 245 | 313 |
Customer portfolio segment | Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | 0 | 0 |
Customer portfolio segment | Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | 0 | 0 |
Customer portfolio segment | Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer financing receivables, net | $ 245 | $ 313 |
Derivative Financial Instrume_2
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | ||||||
Aug. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2018 | Sep. 30, 2015 | |
Foreign Currency Forward Contracts | Non-designated Hedges | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 283 | $ 295 | |||||
Cash Flow Hedging | Foreign Currency Forward Contracts | Designated Hedges | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 42 | $ 62 | |||||
Fair Value Hedges | Interest Rate Swaps | Designated Hedges | |||||||
Derivative [Line Items] | |||||||
Terminated derivative, notional amount | $ 200 | $ 425 | |||||
Fair Value Hedges | 6.250% Senior Secured U.S. Dollar Notes due February 2022 | Interest Rate Swaps | Designated Hedges | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 625 | ||||||
Fixed interest payments receivable (as a percent) | 6.25% | ||||||
Net Investment Hedging | Cross-currency swaps | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 200 | ||||||
Terminated derivative, notional amount | $ 100 | $ 100 |
Systems, Equipment and Other _3
Systems, Equipment and Other Assets Related to Contracts, net and Property, Plant and Equipment, net - Systems & Equipment and PPE (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fixed assets | ||
Systems, equipment and other assets related to contracts, net | $ 937 | $ 1,068 |
Property, plant and equipment - net | 119 | 132 |
Systems & Equipment, net | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 2,691 | 2,844 |
Accumulated depreciation | (1,754) | (1,776) |
Systems, equipment and other assets related to contracts, net | 937 | 1,068 |
Systems & Equipment, net | Land | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 0 | 0 |
Systems & Equipment, net | Buildings | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 0 | 2 |
Systems & Equipment, net | Terminals and systems | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 2,479 | 2,615 |
Systems & Equipment, net | Furniture and equipment | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 138 | 150 |
Systems & Equipment, net | Construction in progress | ||
Fixed assets | ||
Systems, equipment and other assets related to contracts, gross | 75 | 77 |
PPE, net | ||
Fixed assets | ||
Property, plant and equipment, gross | 324 | 344 |
Accumulated depreciation | (205) | (212) |
Property, plant and equipment - net | 119 | 132 |
PPE, net | Land | ||
Fixed assets | ||
Property, plant and equipment, gross | 1 | 1 |
PPE, net | Buildings | ||
Fixed assets | ||
Property, plant and equipment, gross | 58 | 69 |
PPE, net | Terminals and systems | ||
Fixed assets | ||
Property, plant and equipment, gross | 0 | 0 |
PPE, net | Furniture and equipment | ||
Fixed assets | ||
Property, plant and equipment, gross | 255 | 259 |
PPE, net | Construction in progress | ||
Fixed assets | ||
Property, plant and equipment, gross | $ 10 | $ 15 |
Systems, Equipment and Other _4
Systems, Equipment and Other Assets Related to Contracts, net and Property, Plant and Equipment, net - Schedule of Useful Lives Of Assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Buildings | Systems & Equipment | |
Fixed assets | |
Useful life | 40 years |
Buildings | PPE | |
Fixed assets | |
Useful life | 40 years |
Terminals and systems - lottery | Systems & Equipment | |
Fixed assets | |
Useful life | 10 years |
Terminals and systems - gaming | Minimum | Systems & Equipment | |
Fixed assets | |
Useful life | 3 years |
Terminals and systems - gaming | Maximum | Systems & Equipment | |
Fixed assets | |
Useful life | 5 years |
Furniture and equipment | Systems & Equipment | |
Fixed assets | |
Useful life | 10 years |
Furniture and equipment | Minimum | PPE | |
Fixed assets | |
Useful life | 5 years |
Furniture and equipment | Maximum | PPE | |
Fixed assets | |
Useful life | 10 years |
Systems, Equipment and Other _5
Systems, Equipment and Other Assets Related to Contracts, net and Property, Plant and Equipment, net - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Property, Plant and Equipment [Abstract] | |
Gain on disposition of premium equipment | $ 28 |
Leases - Leased Assets and Liab
Leases - Leased Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Operating ROU asset | $ 283 | $ 288 |
Finance lease right-of-use assets | 29 | 33 |
Total lease assets | 312 | 321 |
Liabilities: | ||
Operating lease liability, current | 39 | 44 |
Finance lease liability, current | 10 | 11 |
Operating lease liability, non-current | 269 | 266 |
Finance lease liability, non-current | 27 | 31 |
Present value of lease liabilities | $ 344 | $ 352 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other non-current assets | Other non-current assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities |
Finance lease, right-of-use asset, accumulated amortization | $ 24 | $ 16 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted-average remaining lease term (in years) | |||
Operating | 8 years 5 months 19 days | 8 years 3 months 25 days | 8 years 9 months 18 days |
Finance | 4 years 8 months 23 days | 5 years 1 month 17 days | 6 years 3 days |
Weighted-average discount rate | |||
Operating | 6.71% | 7.01% | 7.74% |
Finance | 4.98% | 5.16% | 5.45% |
Operating lease costs | $ 71 | $ 72 | $ 76 |
Finance lease costs | 13 | 11 | 10 |
Variable lease costs | 23 | 23 | 22 |
Finance lease, ROU asset, amortization | 11 | 9 | 8 |
Finance lease, interest expense | $ 2 | $ 2 | $ 2 |
Leases - Maturity Schedule (Det
Leases - Maturity Schedule (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Lease | ||
2022 | $ 57 | |
2023 | 52 | |
2024 | 48 | |
2025 | 44 | |
2026 | 39 | |
Thereafter | 170 | |
Total lease payments | 410 | |
Less: Imputed interest | (102) | |
Present value of lease liabilities | 307 | |
Finance Lease | ||
2022 | 11 | |
2023 | 9 | |
2024 | 6 | |
2025 | 6 | |
2026 | 5 | |
Thereafter | 4 | |
Total lease payments | 41 | |
Less: Imputed interest | (5) | |
Present value of lease liabilities | 37 | |
Lease Liabilities Payments Due [Abstract] | ||
2022 | 69 | |
2023 | 60 | |
2024 | 55 | |
2025 | 49 | |
2026 | 44 | |
Thereafter | 174 | |
Total lease payments | 451 | |
Less: Imputed interest | (107) | |
Present value of lease liabilities | 344 | $ 352 |
Future minimum rental payments | $ 8.9 | |
Minimum | ||
Lease Liabilities Payments Due [Abstract] | ||
Lease not yet commenced, term of contract | 7 years | |
Maximum | ||
Lease Liabilities Payments Due [Abstract] | ||
Lease not yet commenced, term of contract | 9 years |
Leases - Cash Flow (Details)
Leases - Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of liabilities | |||
Operating cash flows from operating and finance leases | $ 67 | $ 68 | $ 74 |
Finance cash flows from finance leases | 13 | 10 | 8 |
ROU assets obtained in exchange for lease obligations (net of early terminations) | |||
Operating leases | 5 | 34 | 13 |
Finance leases | $ 7 | $ 6 | $ 9 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessor, Lease, Description [Line Items] | |||
Operating lease income as a percentage of revenues | 6.00% | 6.00% | 7.00% |
Sales-type lease income as a percentage of revenues | 1.00% | 1.00% | 1.00% |
Minimum | |||
Lessor, Lease, Description [Line Items] | |||
Lessor, operating lease, term | 1 month | ||
Lessor, sales-type lease, term | 1 year | ||
Maximum | |||
Lessor, Lease, Description [Line Items] | |||
Lessor, operating lease, term | 4 years | ||
Lessor, sales-type lease, term | 10 years |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Reversals of expense and other | $ 6 | $ (1) | |
Italian Workforce Redundancies | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost incurred to date | $ 11 | ||
Italian Workforce Redundancies | Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Period of continuing involvement | 1 year | ||
Italian Workforce Redundancies | Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Period of continuing involvement | 3 years | ||
Severance and Related Employee Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Reversals of expense and other | $ 5 | $ (1) | |
Severance and Related Employee Costs | Italian Workforce Redundancies | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 38 | ||
Severance and Related Employee Costs | Segment Reorganization | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost incurred to date | 15 | ||
Reversals of expense and other | (1) | ||
Severance and Related Employee Costs | Global Supply Chain Optimization | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost incurred to date | $ 8 | ||
Reversals of expense and other | (1) | ||
Severance and Related Employee Costs | Technology Organization Consolidation | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost incurred to date | 13 | ||
Reversals of expense and other | $ (4) |
Restructuring - Schedule of Act
Restructuring - Schedule of Activity in the Restructuring Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 24 | $ 0 | |
Restructuring charges | 6 | 45 | $ 25 |
Cash paid for all plans | (17) | (18) | |
Reversals of expense and other | (6) | 1 | |
Restructuring reserve, ending balance | 13 | 24 | 0 |
Severance and Related Employee Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 23 | 0 | |
Cash paid for all plans | (17) | (16) | |
Reversals of expense and other | (5) | 1 | |
Restructuring reserve, ending balance | 12 | 23 | 0 |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 1 | 0 | |
Cash paid for all plans | 0 | (2) | |
Reversals of expense and other | (1) | 0 | |
Restructuring reserve, ending balance | 1 | 1 | $ 0 |
Segment Reorganization | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | 16 | ||
Segment Reorganization | Severance and Related Employee Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | 16 | ||
Reversals of expense and other | 1 | ||
Segment Reorganization | Other | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | 0 | ||
Global Supply Chain Optimization | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | 8 | ||
Asset impairment charges | 1 | ||
Global Supply Chain Optimization | Severance and Related Employee Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | 5 | ||
Reversals of expense and other | 1 | ||
Global Supply Chain Optimization | Other | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | 3 | ||
Technology Organization Consolidation | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | 17 | ||
Technology Organization Consolidation | Severance and Related Employee Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | 17 | ||
Reversals of expense and other | 4 | ||
Technology Organization Consolidation | Other | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | $ 0 | ||
Italian Workforce Redundancies | Severance and Related Employee Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | 11 | ||
Italian Workforce Redundancies | Other | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | $ 0 |
Restructuring - Restructuring E
Restructuring - Restructuring Expense by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 6 | $ 45 | $ 25 |
Severance and Related Employee Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 6 | 41 | 7 |
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (1) | 4 | 18 |
Global Lottery | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 8 | 5 | 2 |
Global Lottery | Severance and Related Employee Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 8 | 5 | 2 |
Global Lottery | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0 | 0 | 0 |
Global Gaming | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (4) | 32 | 2 |
Global Gaming | Severance and Related Employee Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (3) | 28 | 3 |
Global Gaming | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (1) | 4 | (1) |
Digital & Betting | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (1) | 2 | 16 |
Digital & Betting | Severance and Related Employee Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (1) | 2 | 0 |
Digital & Betting | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0 | 0 | 16 |
Corporate and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 2 | 6 | 4 |
Corporate and Other | Severance and Related Employee Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 2 | 6 | 2 |
Corporate and Other | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 0 | $ 0 | $ 3 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) $ in Millions | Sep. 01, 2021USD ($) | Jul. 01, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)segments | Dec. 31, 2020USD ($)segment | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Aug. 31, 2021segments |
Goodwill [Line Items] | |||||||||
Goodwill allocated to reporting unit | $ 0 | $ 0 | |||||||
Number of business segments | segments | 3 | 2 | |||||||
Accumulated impairment losses | $ (1,300) | $ (1,300) | (1,300) | (1,300) | $ (1,100) | ||||
Impairment | $ (296) | 0 | (296) | (99) | |||||
Discontinued Operations, Disposed of by Sale | Lottomatica Videolot Rete S.p.A. And Lottomatica Scommesse S.r.l. | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill | $ 520 | 520 | |||||||
Segment Reorganization | |||||||||
Goodwill [Line Items] | |||||||||
Number of business segments | segment | 2 | ||||||||
Global Gaming | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill allocated to reporting unit | $ 1,400 | $ 2,200 | (265) | 2,209 | |||||
Impairment | 0 | ||||||||
Digital & Betting | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill allocated to reporting unit | $ 265 | 265 | 0 | ||||||
Impairment | 0 | ||||||||
Global Lottery | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill allocated to reporting unit | $ 2,900 | 0 | 2,942 | ||||||
Impairment | 0 | ||||||||
North America Gaming and Interactive | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill allocated to reporting unit | 0 | (1,337) | |||||||
Accumulated impairment losses | (817) | $ (817) | (817) | (817) | (714) | ||||
Impairment | (103) | ||||||||
International | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill allocated to reporting unit | 0 | (1,113) | |||||||
Accumulated impairment losses | $ (526) | $ (526) | $ (526) | $ (526) | $ (333) | ||||
Impairment | $ (193) |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill, net (Details) - USD ($) $ in Millions | Sep. 01, 2021 | Jul. 01, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Changes in the carrying amount of goodwill, net | ||||||
Balance at the beginning of the period | $ 4,931 | $ 4,713 | $ 4,931 | |||
Impairment | (296) | 0 | (296) | $ (99) | ||
Segment realignment | 0 | 0 | ||||
Foreign currency translation | (58) | 78 | ||||
Balance at the end of the period | 4,656 | 4,713 | 4,931 | |||
North America Gaming and Interactive | ||||||
Changes in the carrying amount of goodwill, net | ||||||
Balance at the beginning of the period | 1,440 | 0 | 1,440 | |||
Impairment | (103) | |||||
Segment realignment | 0 | (1,337) | ||||
Foreign currency translation | 0 | 0 | ||||
Discontinued operations | 0 | |||||
Balance at the end of the period | 0 | 0 | 1,440 | |||
North America Lottery | ||||||
Changes in the carrying amount of goodwill, net | ||||||
Balance at the beginning of the period | 1,222 | 0 | 1,222 | |||
Impairment | 0 | |||||
Segment realignment | 0 | (1,222) | ||||
Foreign currency translation | 0 | 0 | ||||
Discontinued operations | 0 | |||||
Balance at the end of the period | 0 | 0 | 1,222 | |||
International | ||||||
Changes in the carrying amount of goodwill, net | ||||||
Balance at the beginning of the period | 1,308 | 0 | 1,308 | |||
Impairment | (193) | |||||
Segment realignment | 0 | (1,113) | ||||
Foreign currency translation | 0 | (2) | ||||
Discontinued operations | 0 | |||||
Balance at the end of the period | 0 | 0 | 1,308 | |||
Italy | ||||||
Changes in the carrying amount of goodwill, net | ||||||
Balance at the beginning of the period | 1,482 | 0 | 1,482 | |||
Impairment | 0 | |||||
Segment realignment | 0 | (1,480) | ||||
Foreign currency translation | 0 | (2) | ||||
Discontinued operations | 0 | |||||
Balance at the end of the period | 0 | 0 | 1,482 | |||
Global Lottery | ||||||
Changes in the carrying amount of goodwill, net | ||||||
Balance at the beginning of the period | 0 | 2,997 | 0 | |||
Impairment | 0 | |||||
Segment realignment | $ 2,900 | 0 | 2,942 | |||
Foreign currency translation | (49) | 55 | ||||
Discontinued operations | 0 | |||||
Balance at the end of the period | 2,948 | 2,997 | 0 | |||
Global Gaming | ||||||
Changes in the carrying amount of goodwill, net | ||||||
Balance at the beginning of the period | 0 | 1,716 | 0 | |||
Impairment | 0 | |||||
Segment realignment | $ 1,400 | $ 2,200 | (265) | 2,209 | ||
Foreign currency translation | (5) | 28 | ||||
Discontinued operations | 520 | |||||
Balance at the end of the period | 1,446 | 1,716 | 0 | |||
Digital & Betting | ||||||
Changes in the carrying amount of goodwill, net | ||||||
Balance at the beginning of the period | 0 | 0 | 0 | |||
Impairment | 0 | |||||
Segment realignment | $ 265 | 265 | 0 | |||
Foreign currency translation | (3) | 0 | ||||
Discontinued operations | 0 | |||||
Balance at the end of the period | 261 | 0 | 0 | |||
Discontinued Operations | ||||||
Changes in the carrying amount of goodwill, net | ||||||
Balance at the beginning of the period | $ (520) | 0 | (520) | |||
Impairment | 0 | |||||
Segment realignment | 0 | |||||
Foreign currency translation | 0 | |||||
Discontinued operations | 520 | |||||
Balance at the end of the period | $ 0 | $ 0 | $ (520) |
Intangible Assets, net - Compon
Intangible Assets, net - Components (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 3,734 | $ 3,736 |
Total Gross Carrying Amount | 3,979 | 3,981 |
Amortization | ||
Accumulated Amortization | 2,566 | 2,403 |
Intangible assets, net | ||
Net Carrying Amount | 1,168 | 1,332 |
Total Net Book Value | 1,413 | 1,577 |
Trademarks | ||
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount, Unamortized | $ 245 | 245 |
Customer relationships | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 15 years 6 months | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 2,298 | 2,300 |
Amortization | ||
Accumulated Amortization | 1,349 | 1,230 |
Intangible assets, net | ||
Net Carrying Amount | $ 949 | 1,070 |
Customer relationships | Minimum | ||
Intangible assets, net | ||
Estimated Life (Years) | 2 years | |
Customer relationships | Maximum | ||
Intangible assets, net | ||
Estimated Life (Years) | 20 years | |
Computer software and game library | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 5 years 7 months 6 days | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 918 | 918 |
Amortization | ||
Accumulated Amortization | 809 | 784 |
Intangible assets, net | ||
Net Carrying Amount | $ 109 | 134 |
Computer software and game library | Minimum | ||
Intangible assets, net | ||
Estimated Life (Years) | 3 years | |
Computer software and game library | Maximum | ||
Intangible assets, net | ||
Estimated Life (Years) | 14 years | |
Trademarks | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 14 years 1 month 6 days | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 185 | 186 |
Amortization | ||
Accumulated Amortization | 106 | 92 |
Intangible assets, net | ||
Net Carrying Amount | $ 80 | 94 |
Trademarks | Minimum | ||
Intangible assets, net | ||
Estimated Life (Years) | 1 year | |
Trademarks | Maximum | ||
Intangible assets, net | ||
Estimated Life (Years) | 20 years | |
Developed technologies | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 5 years 7 months 6 days | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 233 | 225 |
Amortization | ||
Accumulated Amortization | 216 | 213 |
Intangible assets, net | ||
Net Carrying Amount | $ 17 | 13 |
Developed technologies | Minimum | ||
Intangible assets, net | ||
Estimated Life (Years) | 2 years | |
Developed technologies | Maximum | ||
Intangible assets, net | ||
Estimated Life (Years) | 15 years | |
Licenses | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 3 years 6 months | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 65 | 69 |
Amortization | ||
Accumulated Amortization | 58 | 59 |
Intangible assets, net | ||
Net Carrying Amount | $ 6 | 11 |
Licenses | Minimum | ||
Intangible assets, net | ||
Estimated Life (Years) | 3 years | |
Licenses | Maximum | ||
Intangible assets, net | ||
Estimated Life (Years) | 23 years | |
Other | ||
Intangible assets, net | ||
Weighted- Average Amortization Period (Years) | 9 years | |
Intangible assets - Gross carrying amount | ||
Gross Carrying Amount | $ 35 | 37 |
Amortization | ||
Accumulated Amortization | 28 | 27 |
Intangible assets, net | ||
Net Carrying Amount | $ 7 | $ 10 |
Other | Minimum | ||
Intangible assets, net | ||
Estimated Life (Years) | 4 years | |
Other | Maximum | ||
Intangible assets, net | ||
Estimated Life (Years) | 17 years |
Intangible Assets, net - Narrat
Intangible Assets, net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 190 | $ 203 | $ 220 |
Computer software | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 23 | $ 26 | $ 29 |
Intangible Assets, net - Amorti
Intangible Assets, net - Amortization and Impairment (Details) $ in Millions | Dec. 31, 2021USD ($) |
Expected amortization expense for next five years | |
2022 | $ 186 |
2023 | 163 |
2024 | 146 |
2025 | 122 |
2026 | 111 |
Finite lived intangible assets amortization expense, years one through five | $ 728 |
Debt - Reconciliation to Consol
Debt - Reconciliation to Consolidated Balance Sheets (Details) $ in Thousands, € in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | May 31, 2021 | May 20, 2021 | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 19, 2020USD ($) | Jan. 25, 2020 | Sep. 16, 2019EUR (€) | Jun. 20, 2019EUR (€) |
Debt Instrument [Line Items] | ||||||||||
Debt issuance cost, net | $ (48,000) | $ (56,000) | ||||||||
Total | 6,529,000 | 8,250,000 | ||||||||
Short-term borrowings | 52,000 | 0 | ||||||||
Total debt | 6,577,000 | 8,299,000 | ||||||||
Amount of debt hedged by the interest rate swap | 7,000 | |||||||||
Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | 393,000 | |||||||||
Debt issuance cost, net | 0 | |||||||||
Short-term borrowings | 393,000 | |||||||||
Amount of debt hedged by the interest rate swap | 0 | |||||||||
Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | 5,393,000 | 6,851,000 | ||||||||
Debt issuance cost, net | (36,000) | (45,000) | ||||||||
Total | 5,357,000 | 6,813,000 | ||||||||
Amount of debt hedged by the interest rate swap | 7,000 | |||||||||
Senior Notes | 5.350% Senior Secured U.S. Dollar Notes due October 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | 61,000 | 61,000 | ||||||||
Debt issuance cost, net | 0 | 0 | ||||||||
Total | $ 61,000 | $ 61,000 | ||||||||
Stated interest rate on debt (as a percent) | 5.35% | 5.35% | 5.35% | |||||||
Amount of debt hedged by the interest rate swap | $ 0 | |||||||||
Senior Notes | 3.500% Senior Secured Euro Notes due July 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 566,000 | € 500 | 614,000 | |||||||
Debt issuance cost, net | (3,000) | (4,000) | ||||||||
Total | $ 564,000 | $ 610,000 | ||||||||
Stated interest rate on debt (as a percent) | 3.50% | 3.50% | 3.50% | |||||||
Amount of debt hedged by the interest rate swap | $ 0 | |||||||||
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 1,100,000 | 1,100,000 | ||||||||
Debt issuance cost, net | (7,000) | (8,000) | ||||||||
Total | $ 1,093,000 | $ 1,092,000 | ||||||||
Stated interest rate on debt (as a percent) | 6.50% | 6.50% | 6.50% | |||||||
Amount of debt hedged by the interest rate swap | $ 0 | |||||||||
Senior Notes | 4.125% Senior Secured U.S. Dollar Notes due April 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 750,000 | $ 750,000 | ||||||||
Debt issuance cost, net | (6,000) | |||||||||
Total | $ 744,000 | |||||||||
Stated interest rate on debt (as a percent) | 4.125% | 4.125% | 4.125% | 4.125% | ||||||
Senior Notes | 3.500% Senior Secured Euro Notes due June 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 849,000 | € 750 | $ 920,000 | € 750 | ||||||
Debt issuance cost, net | (5,000) | (7,000) | ||||||||
Total | $ 844,000 | $ 913,000 | ||||||||
Stated interest rate on debt (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | ||||||
Amount of debt hedged by the interest rate swap | $ 0 | |||||||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 750,000 | 750,000 | ||||||||
Debt issuance cost, net | (5,000) | (6,000) | ||||||||
Total | $ 745,000 | $ 744,000 | ||||||||
Stated interest rate on debt (as a percent) | 6.25% | 6.25% | 6.25% | |||||||
Amount of debt hedged by the interest rate swap | $ 0 | |||||||||
Senior Notes | 2.375% Senior Secured Euro Notes due April 2028 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 566,000 | € 500 | 614,000 | € 500 | ||||||
Debt issuance cost, net | (4,000) | (5,000) | ||||||||
Total | $ 562,000 | $ 608,000 | ||||||||
Stated interest rate on debt (as a percent) | 2.375% | 2.375% | 2.375% | 2.375% | 2.375% | |||||
Amount of debt hedged by the interest rate swap | $ 0 | |||||||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 750,000 | € 750 | 750,000 | $ 750,000 | ||||||
Debt issuance cost, net | (6,000) | (7,000) | ||||||||
Total | $ 744,000 | $ 743,000 | ||||||||
Stated interest rate on debt (as a percent) | 5.25% | 5.25% | 5.25% | 5.25% | ||||||
Amount of debt hedged by the interest rate swap | $ 0 | |||||||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due February 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | 1,000,000 | |||||||||
Debt issuance cost, net | (3,000) | |||||||||
Total | $ 1,004,000 | |||||||||
Stated interest rate on debt (as a percent) | 6.25% | 6.25% | 6.25% | |||||||
Amount of debt hedged by the interest rate swap | $ 7,000 | |||||||||
Senior Notes | 4.750% Senior Secured Euro Notes due February 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | 1,043,000 | |||||||||
Debt issuance cost, net | (5,000) | |||||||||
Total | $ 1,038,000 | |||||||||
Stated interest rate on debt (as a percent) | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | |||||
Amount of debt hedged by the interest rate swap | $ 0 | |||||||||
Term loan | Euro Term Loan Facilities due January 2027 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | $ 1,133,000 | 1,055,000 | ||||||||
Debt issuance cost, net | (12,000) | (11,000) | ||||||||
Long-term Debt, Total | 1,121,000 | 1,044,000 | ||||||||
Amount of debt hedged by the interest rate swap | 0 | |||||||||
Term loan | Euro Term Loan Facility Due In 2027 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | 393,000 | |||||||||
Debt issuance cost, net | 0 | |||||||||
Long-term Debt, Total | 393,000 | |||||||||
Amount of debt hedged by the interest rate swap | 0 | |||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal | 6,525,000 | 7,906,000 | ||||||||
Debt issuance cost, net | (48,000) | (56,000) | ||||||||
Long-term Debt, Total | 6,477,000 | 7,857,000 | ||||||||
Amount of debt hedged by the interest rate swap | 7,000 | |||||||||
Other non-current assets | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance cost, net | $ (17,000) | $ (24,000) |
Debt - Schedule of Principal pa
Debt - Schedule of Principal payments for each debt obligation, excluding short-term borrowings (Details) $ in Millions | Dec. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
2022 | $ 0 |
2023 | 61 |
2024 | 793 |
2025 | 1,327 |
2026 | 1,826 |
2027 and thereafter | 2,519 |
Total principal payments | 6,525 |
U.S. Dollar Denominated | |
Debt Instrument [Line Items] | |
2022 | 0 |
2023 | 61 |
2024 | 0 |
2025 | 1,100 |
2026 | 750 |
2027 and thereafter | 1,500 |
Total principal payments | 3,411 |
Euro Denominated | |
Debt Instrument [Line Items] | |
2022 | 0 |
2023 | 0 |
2024 | 793 |
2025 | 227 |
2026 | 1,076 |
2027 and thereafter | 1,019 |
Total principal payments | $ 3,115 |
Debt - Schedule of Senior Secur
Debt - Schedule of Senior Secured Notes (Details) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 19, 2020USD ($) | Sep. 16, 2019EUR (€) | Jun. 20, 2019EUR (€) | |
Debt Instrument [Line Items] | |||||||
Minimum principal balance of intercompany loans securing the debt | $ 10,000,000 | ||||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal | 5,393,000,000 | $ 6,851,000,000 | |||||
Senior Notes | 5.350% Senior Secured U.S. Dollar Notes due October 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Principal | $ 61,000,000 | 61,000,000 | |||||
Effective interest rate (as a percent) | 5.47% | 5.47% | |||||
Senior Notes | 5.350% Senior Secured U.S. Dollar Notes due October 2023 | Debt Instrument, Redemption, Period 5 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 5.350% Senior Secured U.S. Dollar Notes due October 2023 | Debt Instrument, Redemption, Period 7 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 5.350% Senior Secured U.S. Dollar Notes due October 2023 | Debt Instrument, Redemption, Period 8 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 101.00% | ||||||
Senior Notes | 3.500% Senior Secured Euro Notes due July 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Principal | $ 566,000,000 | € 500 | 614,000,000 | ||||
Effective interest rate (as a percent) | 3.68% | 3.68% | |||||
Senior Notes | 3.500% Senior Secured Euro Notes due July 2024 | Debt Instrument, Redemption, Period 5 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 101.00% | ||||||
Senior Notes | 3.500% Senior Secured Euro Notes due July 2024 | Debt Instrument, Redemption, Period 2 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 3.500% Senior Secured Euro Notes due July 2024 | Debt Instrument, Redemption, Period 3 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 3.500% Senior Secured Euro Notes due July 2024 | Debt Instrument, Redemption, Period 4 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Principal | $ 1,100,000,000 | 1,100,000,000 | |||||
Effective interest rate (as a percent) | 6.71% | 6.71% | |||||
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | Debt Instrument, Redemption, Period 5 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 101.00% | ||||||
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | Debt Instrument, Redemption, Period 2 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | Debt Instrument, Redemption, Period 3 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 6.500% Senior Secured U.S. Dollar Notes due February 2025 | Debt Instrument, Redemption, Period 4 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 4.125% Senior Secured U.S. Dollar Notes due April 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Principal | $ 750,000,000 | $ 750,000,000 | |||||
Effective interest rate (as a percent) | 4.34% | 4.34% | |||||
Senior Notes | 4.125% Senior Secured U.S. Dollar Notes due April 2026 | Debt Instrument, Redemption, Period 5 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 101.00% | ||||||
Senior Notes | 4.125% Senior Secured U.S. Dollar Notes due April 2026 | Debt Instrument, Redemption, Period 2 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 4.125% Senior Secured U.S. Dollar Notes due April 2026 | Debt Instrument, Redemption, Period 4 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 3.500% Senior Secured Euro Notes due June 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Principal | $ 849,000,000 | € 750 | 920,000,000 | € 750 | |||
Effective interest rate (as a percent) | 3.65% | 3.65% | |||||
Senior Notes | 3.500% Senior Secured Euro Notes due June 2026 | Debt Instrument, Redemption, Period 5 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 101.00% | ||||||
Senior Notes | 3.500% Senior Secured Euro Notes due June 2026 | Debt Instrument, Redemption, Period 2 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 3.500% Senior Secured Euro Notes due June 2026 | Debt Instrument, Redemption, Period 4 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Principal | $ 750,000,000 | 750,000,000 | |||||
Effective interest rate (as a percent) | 6.41% | 6.41% | |||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | Debt Instrument, Redemption, Period 5 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 101.00% | ||||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | Debt Instrument, Redemption, Period 2 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | Debt Instrument, Redemption, Period 3 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 6.250% Senior Secured U.S. Dollar Notes due January 2027 | Debt Instrument, Redemption, Period 4 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 2.375% Senior Secured Euro Notes due April 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Principal | $ 566,000,000 | € 500 | 614,000,000 | € 500 | |||
Effective interest rate (as a percent) | 2.50% | 2.50% | |||||
Senior Notes | 2.375% Senior Secured Euro Notes due April 2028 | Debt Instrument, Redemption, Period 5 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 101.00% | ||||||
Senior Notes | 2.375% Senior Secured Euro Notes due April 2028 | Debt Instrument, Redemption, Period 2 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 2.375% Senior Secured Euro Notes due April 2028 | Debt Instrument, Redemption, Period 4 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Principal | $ 750,000,000 | € 750 | $ 750,000,000 | $ 750,000,000 | |||
Effective interest rate (as a percent) | 5.39% | 5.39% | |||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | Debt Instrument, Redemption, Period 5 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 101.00% | ||||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | Debt Instrument, Redemption, Period 2 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | 5.250% Senior Secured U.S. Dollar Notes due January 2029 | Debt Instrument, Redemption, Period 4 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% |
Debt - Senior Secured Notes - N
Debt - Senior Secured Notes - Narrative (Details) € in Millions, $ in Millions | Jun. 19, 2020USD ($) | Sep. 27, 2019USD ($) | Jun. 20, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | Dec. 31, 2021EUR (€) | May 31, 2021USD ($) | May 31, 2021EUR (€) | May 20, 2021 | Mar. 31, 2021USD ($) | Jun. 15, 2020USD ($) | Mar. 05, 2020USD ($) | Mar. 05, 2020EUR (€) | Jan. 25, 2020 | Sep. 16, 2019USD ($) | Sep. 16, 2019EUR (€) | Jun. 20, 2019EUR (€) |
Senior Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Principal | $ 5,393 | $ 6,851 | ||||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Principal | 6,525 | $ 7,906 | ||||||||||||||||||
Senior Secured Notes6.250 Percent Due In2022 [Member] | Senior Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Loss on extinguishment of debt | $ 23 | $ 18 | ||||||||||||||||||
Stated interest rate on debt (as a percent) | 6.25% | 6.25% | 6.25% | |||||||||||||||||
Repurchase amount | 500 | $ 1,000 | ||||||||||||||||||
Principal | $ 1,000 | |||||||||||||||||||
Debt Instrument, Repurchase Amount, Consideration Paid | 525 | $ 1,000 | ||||||||||||||||||
Senior Secured Notes6.250 Percent Due In2022 [Member] | Interest Expense | Senior Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Loss on extinguishment of debt | 5 | $ (6) | ||||||||||||||||||
Senior Secured Notes6.250 Percent Due In2022 [Member] | Other Expense | Senior Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Loss on extinguishment of debt | $ 28 | $ 24 | ||||||||||||||||||
5.250% Senior Secured U.S. Dollar Notes due January 2029 | Senior Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate on debt (as a percent) | 5.25% | 5.25% | 5.25% | 5.25% | ||||||||||||||||
Financial guarantee, principal balance of intercompany loans | $ 10 | |||||||||||||||||||
Principal | $ 750 | $ 750 | $ 750 | € 750 | ||||||||||||||||
5.250% Senior Secured U.S. Dollar Notes due January 2029 | Senior Notes | Debt Instrument, Redemption, Period 1 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 100.00% | 100.00% | ||||||||||||||||||
Redemption price, percentage of principal amount redeemed after certain tax events | 1 | 1 | ||||||||||||||||||
Redemption price, percentage of principal amount redeemed after triggering event | 1.01 | 1.01 | ||||||||||||||||||
5.250% Senior Secured U.S. Dollar Notes due January 2029 | Senior Notes | Debt Instrument, Redemption, Period 2 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 102.625% | 102.625% | ||||||||||||||||||
5.250% Senior Secured U.S. Dollar Notes due January 2029 | Senior Notes | Debt Instrument, Redemption, Period 3 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 101.313% | 101.313% | ||||||||||||||||||
5.250% Senior Secured U.S. Dollar Notes due January 2029 | Senior Notes | Debt Instrument, Redemption, Period 4 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 100.00% | 100.00% | ||||||||||||||||||
Senior Secured U.S. Dollar Notes Due June 2020 | Senior Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate on debt (as a percent) | 5.50% | |||||||||||||||||||
Repurchase amount | $ 27 | |||||||||||||||||||
Senior Secured Euro Notes Due March 2020 | Senior Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate on debt (as a percent) | 4.75% | 4.75% | ||||||||||||||||||
Repurchase amount | $ 432 | € 388 | ||||||||||||||||||
2.375% Senior Secured Euro Notes due April 2028 | Senior Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate on debt (as a percent) | 2.375% | 2.375% | 2.375% | 2.375% | 2.375% | 2.375% | ||||||||||||||
Principal | $ 566 | $ 614 | € 500 | € 500 | ||||||||||||||||
Euro Term Loan Facility Due January 2020 | Term loan | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Repurchase amount | $ 350 | € 320 | ||||||||||||||||||
Euro Revolving Credit Facility B Due 2024 | Term loan | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Loss on extinguishment of debt | € | € 2 | |||||||||||||||||||
Repurchase amount | $ 543 | |||||||||||||||||||
Repayments of lines of credit | $ 192 | |||||||||||||||||||
Euro Revolving Credit Facility B Due 2024 | Revolving Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Loss on extinguishment of debt | $ 10 | € 9 | ||||||||||||||||||
Repurchase amount | $ 845 | |||||||||||||||||||
Repayments of lines of credit | $ 339 | |||||||||||||||||||
3.500% Senior Secured Euro Notes due June 2026 | Senior Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate on debt (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | |||||||||||||||
Principal | $ 849 | $ 920 | € 750 | € 750 | ||||||||||||||||
4.125% Senior Secured Notes due February 2020 | Senior Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate on debt (as a percent) | 4.125% | 4.125% | ||||||||||||||||||
Repurchase amount | $ 498 | € 438 | ||||||||||||||||||
4.750% Senior Secured Euro Notes due February 2023 | Senior Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Loss on extinguishment of debt | € | € 67 | |||||||||||||||||||
Stated interest rate on debt (as a percent) | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | ||||||||||||||
Repurchase amount | $ 1,000 | € 850 | ||||||||||||||||||
Principal | $ 1,043 | |||||||||||||||||||
Debt Instrument, Repurchase Amount, Consideration Paid | $ 1,100 | |||||||||||||||||||
4.125% Senior Secured U.S. Dollar Notes due April 2026 | Senior Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate on debt (as a percent) | 4.125% | 4.125% | 4.125% | 4.125% | ||||||||||||||||
Financial guarantee, principal balance of intercompany loans | $ 10 | |||||||||||||||||||
Principal | $ 750 | $ 750 | ||||||||||||||||||
4.125% Senior Secured U.S. Dollar Notes due April 2026 | Senior Notes | Debt Instrument, Redemption, Period 1 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 100.00% | 100.00% | ||||||||||||||||||
Redemption price, percentage of principal amount redeemed after certain tax events | 1 | 1 | ||||||||||||||||||
Redemption price, percentage of principal amount redeemed after triggering event | 1.01 | 1.01 | ||||||||||||||||||
4.125% Senior Secured U.S. Dollar Notes due April 2026 | Senior Notes | Debt Instrument, Redemption, Period 2 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 102.063% | 102.063% | ||||||||||||||||||
4.125% Senior Secured U.S. Dollar Notes due April 2026 | Senior Notes | Debt Instrument, Redemption, Period 3 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 101.031% | 101.031% | ||||||||||||||||||
4.125% Senior Secured U.S. Dollar Notes due April 2026 | Senior Notes | Debt Instrument, Redemption, Period 4 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 100.00% | 100.00% |
Debt - Euro Term Loans - Narrat
Debt - Euro Term Loans - Narrative (Details) € in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||
Sep. 30, 2021 | Jul. 31, 2021EUR (€) | Dec. 31, 2021USD ($) | Dec. 31, 2020EUR (€) | Jan. 25, 2023EUR (€) | Jan. 25, 2022EUR (€) | Dec. 31, 2021EUR (€) | Jan. 25, 2021EUR (€) | Dec. 31, 2020USD ($) | May 08, 2020 | Apr. 11, 2020 | Jan. 25, 2020EUR (€) | Sep. 16, 2019EUR (€) | Jul. 25, 2017EUR (€) | |
Debt Instrument [Line Items] | ||||||||||||||
Minimum principal balance of intercompany loans securing the debt | $ | $ 10,000,000 | |||||||||||||
Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | $ | 5,393,000,000 | $ 6,851,000,000 | ||||||||||||
Term Loan Facilities Due In 2023 | Term loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | € 860 | € 1,500 | ||||||||||||
Repurchase amount | € 320 | € 320 | ||||||||||||
Loss on extinguishment of debt | € 2 | |||||||||||||
Term Loan Facilities Due In 2023 | Term loan | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Effective interest rate (as a percent) | 2.75% | |||||||||||||
Term Loan Facilities Due In 2023 | Term loan | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Effective interest rate (as a percent) | 3.25% | |||||||||||||
Term Loan Facilities Due In 2023 | Term loan | Forecast | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repurchase amount | € 540 | € 320 | ||||||||||||
2.375% Senior Secured Euro Notes due April 2028 | Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | $ 566,000,000 | € 500 | $ 614,000,000 | € 500 | ||||||||||
Stated interest rate on debt (as a percent) | 2.375% | 2.375% | 2.375% | 2.375% | 2.375% | |||||||||
Effective interest rate (as a percent) | 2.50% | 2.50% | ||||||||||||
Loans Under The TLF Agreement | Term loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Effective interest rate (as a percent) | 2.50% | |||||||||||||
Amended Term Loan Facilities Due In 2027 | Term loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | 1,000 | |||||||||||||
Interest rate increase (as a percent) | 0.04% | 0.35% | ||||||||||||
Interest rate maximum increase (as a percent) | 0.075% | |||||||||||||
Interest rate maximum decrease (as a percent) | 0.075% | |||||||||||||
Long-term debt current maturities transferred to long-term debt | 320 | |||||||||||||
Amended Term Loan Facilities Due In 2027 | Term loan | International Game Technology PLC | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | 500 | |||||||||||||
Amended Term Loan Facilities Due In 2027 | Term loan | IGT Lottery Holdings B.V. | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | € 500 | |||||||||||||
Euro Term Loan Facilities due January 2027 | Term loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal | $ | $ 1,133,000,000 | $ 1,055,000,000 | ||||||||||||
Effective interest rate (as a percent) | 2.11% | 2.11% | 2.50% | |||||||||||
Euro Term Loan Facilities due January 2027 | Term loan | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, term of payment in arrears | 1 month | |||||||||||||
Euro Term Loan Facilities due January 2027 | Term loan | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, term of payment in arrears | 6 months |
Debt - Schedule of Installments
Debt - Schedule of Installments (Details) - Dec. 31, 2021 € in Millions, $ in Millions | USD ($) | EUR (€) |
Debt Instrument, Redemption [Line Items] | ||
January 25, 2020 | $ | $ 61 | |
January 25, 2021 | $ | 793 | |
January 25, 2022 | $ | 1,327 | |
January 25, 2023 | $ | $ 1,826 | |
Term loan | Amended Term Loan Facilities Due In 2027 | ||
Debt Instrument, Redemption [Line Items] | ||
January 25, 2020 | € | € 200 | |
January 25, 2021 | € | 200 | |
January 25, 2022 | € | 200 | |
January 25, 2023 | € | € 400 |
Debt - Schedule of Revolving Cr
Debt - Schedule of Revolving Credit Facilities (Details) - Jul. 24, 2019 - Revolving Credit Facility € in Millions, $ in Millions | USD ($) | EUR (€) |
Revolving Credit Facility A | ||
Debt Instrument [Line Items] | ||
Maximum amount | $ | $ 1,050 | |
Revolving Credit Facility B | ||
Debt Instrument [Line Items] | ||
Maximum amount | € | € 625 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facilities and Other Credit Facilities - Narrative (Details) - USD ($) | Apr. 11, 2020 | May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | ||||
Minimum principal balance of intercompany loans securing the debt | $ 10,000,000 | |||
Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Maximum aggregate dividends and repurchases in each calendar year, per debt agreement terms | 300,000,000 | |||
Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Maximum aggregate dividends and repurchases in each calendar year, per debt agreement terms | 400,000,000 | |||
Amended Senior Facilities Agreement | Loans | ||||
Line of Credit Facility [Line Items] | ||||
Short-term borrowings | $ 21,000,000 | |||
Effective interest rate (as a percent) | 3.25% | |||
Amended Senior Facilities Agreement | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fees (as a percent) | 0.928% | |||
Utilization fees (as a percent) | 0.15% | |||
Minimum principal balance of intercompany loans securing the debt | $ 10,000,000 | |||
Unused available liquidity | $ 1,700,000,000 | |||
Line of credit facility, interest rate (as a percent) | 3.25% | |||
Amended Senior Facilities Agreement | Revolving Credit Facility | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Utilization fees (as a percent) | 0.15% | |||
Amended Senior Facilities Agreement | Revolving Credit Facility | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Utilization fees (as a percent) | 0.60% | |||
Revolving Credit Facility Agreement | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, interest rate (as a percent) | 2.75% | |||
Loans Under The RCF Agreement | Loans | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, interest rate (as a percent) | 2.475% | |||
Letters of Credit Outstanding | Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Short-term borrowings | $ 0 | $ 30,000,000 | ||
Effective interest rate (as a percent) | 1.63% |
Debt - Summary of Letters of Cr
Debt - Summary of Letters of Credit Outstanding and Weighted Average Annual Cost of Letters of Credit (Details) - Letters of Credit - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Weighted Average Annual Cost (as a percent) | 1.08% | 1.06% |
Letters of Credit Outstanding | ||
Debt Instrument [Line Items] | ||
Letters of Credit Outstanding | $ 335 | $ 427 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Interest expense | $ 354 | $ 413 | $ 423 |
Interest income | (13) | (15) | (12) |
Interest expense, net | 341 | 398 | 411 |
Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Interest expense | 292 | 344 | 351 |
Term Loan Facilities | |||
Debt Instrument [Line Items] | |||
Interest expense | 30 | 37 | 36 |
Revolving Credit Facilities | |||
Debt Instrument [Line Items] | |||
Interest expense | 29 | 31 | 28 |
Other | |||
Debt Instrument [Line Items] | |||
Interest expense | $ 4 | $ 1 | $ 8 |
Other Liabilities - Current Lia
Other Liabilities - Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other current liabilities | ||
Employee compensation | $ 171,000 | $ 90,000 |
Contract liabilities | 104,000 | 108,000 |
Income taxes payable | 104,000 | 26,000 |
Accrued interest payable | 100,000 | 138,000 |
Accrued expenses | 75,000 | 118,000 |
Taxes other than income taxes | 72,000 | 96,000 |
Jackpot liabilities | 66,000 | 71,000 |
Current financial liabilities | 61,000 | 128,000 |
Operating lease liabilities | 39,000 | 44,000 |
Other | 35,000 | 26,000 |
Total other current liabilities | $ 828,000 | $ 846,000 |
Other Liabilities - Non-Current
Other Liabilities - Non-Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other non-current liabilities | ||
Jackpot liabilities | $ 130,000 | $ 148,000 |
Contract liabilities | 47,000 | 62,000 |
Reserves for uncertain tax positions | 47,000 | 48,000 |
Finance lease liabilities | 27,000 | 31,000 |
Other | 72,000 | 72,000 |
Total other non-current liabilities | $ 323,000 | $ 360,000 |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) before the Provision for Income Taxes by Jurisdiction (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||
Income (loss) from continuing operations before provision for income taxes | $ 529 | $ (848) | $ 128 |
United Kingdom | |||
Income Tax Contingency [Line Items] | |||
United Kingdom | 40 | (355) | 35 |
United States | |||
Income Tax Contingency [Line Items] | |||
Foreign | (20) | (776) | (301) |
Italy | |||
Income Tax Contingency [Line Items] | |||
Foreign | 438 | 229 | 351 |
Other | |||
Income Tax Contingency [Line Items] | |||
Foreign | $ 70 | $ 55 | $ 43 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Total Current | $ 236 | $ 106 | $ 202 |
Deferred: | |||
Total Deferred | 38 | (78) | (71) |
Provision for income taxes | 274 | 28 | 131 |
United Kingdom | |||
Current: | |||
Domestic | 0 | (1) | 2 |
United States | |||
Current: | |||
Foreign | 41 | 10 | 46 |
Deferred: | |||
Foreign | 76 | (62) | (69) |
Italy | |||
Current: | |||
Foreign | 155 | 66 | 104 |
Deferred: | |||
Foreign | (22) | (1) | 1 |
Other | |||
Current: | |||
Foreign | 40 | 31 | 49 |
Deferred: | |||
Foreign | $ (16) | $ (16) | $ (3) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Millions, $ in Millions | Feb. 09, 2022 | Dec. 09, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2006MXN ($) | Oct. 31, 2019issue | Dec. 31, 2021MXN ($) |
Income Tax [Line Items] | |||||||||
Income taxes paid (net of refunds) | $ 188 | $ 89 | $ 197 | ||||||
Tax benefit, GILTI high tax exception and NOL carryback provisions | $ 12 | ||||||||
Gross tax operating loss carryforwards | 1,100 | ||||||||
Net operating loss carryforward, valuation allowance | 910 | ||||||||
Unrecognized tax benefits that, if recognized, would impact effective tax rates | 27 | 27 | 29 | ||||||
Interest expense, penalties and inflationary adjustments recognized in income tax expense | $ 5 | ||||||||
Accrued interest on unrecognized tax benefits as of end of year | 21 | $ 21 | |||||||
Number of unsuccessfully contested issues | issue | 2 | ||||||||
Subsequent event | |||||||||
Income Tax [Line Items] | |||||||||
Income tax examination, voluntary settlement extension period | 90 days | ||||||||
Foreign Tax Authority | |||||||||
Income Tax [Line Items] | |||||||||
Gross tax operating loss carryforwards | 339 | ||||||||
State | |||||||||
Income Tax [Line Items] | |||||||||
Gross tax operating loss carryforwards | 13 | ||||||||
United Kingdom | Domestic Tax Authority | |||||||||
Income Tax [Line Items] | |||||||||
Gross tax operating loss carryforwards | 631 | ||||||||
United States | Foreign Tax Authority | |||||||||
Income Tax [Line Items] | |||||||||
Gross tax operating loss carryforwards | 137 | ||||||||
Mexico | |||||||||
Income Tax [Line Items] | |||||||||
Alleged taxes, penalties and adjustments | $ 425 | ||||||||
Income tax examination, liability from settlement | $ 23 | $ 469 | |||||||
Italy | Tax Years 2014 through 2015 | |||||||||
Income Tax [Line Items] | |||||||||
Alleged taxes, penalties and adjustments | $ 15 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Provision for Income Taxes, With the Amount Computed by Applying United Kingdom Statutory Main Corporation Tax Rates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) from continuing operations before provision for income taxes | $ 529 | $ (848) | $ 128 |
United Kingdom statutory tax rate (as a percent) | 19.00% | 19.00% | 19.00% |
Statutory tax expense (benefit) | $ 100 | $ (161) | $ 24 |
Change in valuation allowances | 125 | 128 | 1 |
Italy regional tax (“IRAP”) and state taxes | 41 | 9 | 23 |
Non-deductible expenses | 25 | 2 | 2 |
Base erosion and anti-abuse (“BEAT”) tax | 17 | 13 | 31 |
Foreign tax and statutory rate differential | 17 | (14) | 3 |
Foreign tax expense, net of U.S. federal benefit | 11 | 10 | 14 |
Provision to return | 6 | 0 | 0 |
GILTI tax | 5 | 3 | 5 |
Non-deductible goodwill impairment | 0 | 56 | 19 |
Change in unrecognized tax benefits | 0 | 1 | 7 |
Non-taxable gains on investments | 0 | 0 | (6) |
Italian allowance for corporate equity | (3) | (4) | (2) |
Non-taxable foreign exchange gain | (11) | 0 | (4) |
Italian patent box tax benefit | (27) | 0 | 0 |
Tax law changes | (38) | (20) | 0 |
Other | 5 | 4 | 15 |
Provision for income taxes | $ 274 | $ 28 | $ 131 |
Effective tax rate (as a percent) | 51.80% | (3.30%) | 102.10% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities, and Net Deferred Income Taxes Recorded in the Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||||
Net operating losses | $ 286 | $ 300 | ||
Section 163(j) interest limitation | 190 | 155 | ||
Italian goodwill tax step-up | 119 | 0 | ||
Provisions not currently deductible for tax purposes | 85 | 88 | ||
Lease liabilities | 66 | 70 | ||
Jackpot timing differences | 30 | 39 | ||
Depreciation and amortization | 29 | 26 | ||
Inventory reserves | 10 | 2 | ||
Other | 63 | 47 | ||
Gross deferred tax assets | 878 | 728 | ||
Valuation allowance | (412) | (284) | $ (156) | $ (171) |
Deferred tax assets, net of valuation allowance | 466 | 444 | ||
Deferred tax liabilities: | ||||
Acquired intangible assets | 462 | 506 | ||
Depreciation and amortization | 163 | 161 | ||
Italian goodwill equity reserve liability | 105 | 0 | ||
Lease right-of-use assets | 60 | 65 | ||
Other | 6 | 12 | ||
Total deferred tax liabilities | 795 | 744 | ||
Net deferred income tax liability | (329) | (300) | ||
Deferred income taxes - non-current asset | 39 | 33 | ||
Deferred income taxes - non-current liability | $ (368) | $ (333) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of the Beginning and Ending Amount of Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 284 | $ 156 | $ 171 |
Net charges to expense | 86 | 120 | 1 |
Tax rate change | 39 | 8 | 0 |
Provision to return adjustment | 3 | 0 | 0 |
Expiration of tax attributes | 0 | 0 | (15) |
Balance at end of year | $ 412 | $ 284 | $ 156 |
Income Taxes - Reconciliation_3
Income Taxes - Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 27 | $ 29 | $ 27 |
Additions to tax positions - current year | 1 | 0 | 1 |
Additions to tax positions - prior years | 0 | 0 | 2 |
Reductions to tax positions - prior years | (1) | (2) | 0 |
Lapses in statutes of limitations | 0 | (1) | (1) |
Balance at end of year | $ 27 | $ 27 | $ 29 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Jackpot Liabilities Recorded as Current and Non-current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Current liabilities | $ 66 | $ 71 |
Non-current liabilities | 130 | $ 148 |
Total jackpot liabilities | $ 196 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Jackpot Payments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Previous Winners | |
Loss Contingencies [Line Items] | |
2022 | $ 25 |
2023 | 20 |
2024 | 18 |
2025 | 15 |
2026 | 13 |
Thereafter | 72 |
Future jackpot payments due | 163 |
Future Winners | |
Loss Contingencies [Line Items] | |
2022 | 41 |
2023 | 10 |
2024 | 1 |
2025 | 1 |
2026 | 1 |
Thereafter | 8 |
Future jackpot payments due | 60 |
Total | |
Loss Contingencies [Line Items] | |
2022 | 66 |
2023 | 31 |
2024 | 18 |
2025 | 16 |
2026 | 13 |
Thereafter | 79 |
Future jackpot payments due | 223 |
Unamortized discounts | (27) |
Total jackpot liabilities | $ 196 |
Commitments and Contingencies_3
Commitments and Contingencies - Narrative (Details) $ in Millions | Feb. 25, 2022motion | Feb. 03, 2022motion | Oct. 29, 2021motion | Mar. 26, 2021motion | Oct. 20, 2016USD ($) | Sep. 15, 2016USD ($) | Jun. 10, 2016USD ($) | Dec. 09, 2014USD ($)plaintiff | Dec. 31, 2021USD ($)lawsuitnumberOfSymbolnumberOfTimesThePrizeBoxAmount |
Loss Contingencies [Line Items] | |||||||||
Provisions for litigation matters | $ 4 | ||||||||
Number of times the prize to be received | numberOfTimesThePrizeBoxAmount | 5 | ||||||||
Number of symbols in a pattern revealed to obtain prize | numberOfSymbol | 3 | ||||||||
Texas Fun 5’s Instant Ticket Game | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of lawsuits | lawsuit | 4 | ||||||||
Steele, et al. v. GTECH Corporation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of individuals claiming damages | plaintiff | 1,200 | ||||||||
Number of motions | motion | 2 | 2 | |||||||
Steele, et al. v. GTECH Corporation | Subsequent event | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of motions | motion | 3 | 2 | |||||||
Number of denied motions | motion | 1 | ||||||||
Performance Bonds | |||||||||
Loss Contingencies [Line Items] | |||||||||
Term of bonds | 1 year | ||||||||
Minimum | Steele, et al. v. GTECH Corporation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages claimed | $ 500 | ||||||||
Minimum | Guerra v. GTECH Corporation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages claimed | $ 0.5 | ||||||||
Minimum | Wiggins v. IGT Global Solutions Corp. | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages claimed | $ 1 | ||||||||
Minimum | Campos et al. v. GTECH Corporation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages claimed | $ 1 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 15, 2021 | Feb. 25, 2022 | Dec. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Common stock authorized for additional issue (in shares) | 136,600,000 | ||||||||||
Common stock authorized for additional issue that can be issued in connection with an offer by way of rights issue (in shares) | 68,300,000 | ||||||||||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | |||||||||
Stock repurchase program, authorized amount | $ 300 | ||||||||||
Stock repurchase program, period in force | 4 years | ||||||||||
Number of shares authorized to be repurchased (in shares) | 20,485,656 | 20,485,656 | |||||||||
Treasury stock, shares, acquired (in shares) | 1,500,000 | ||||||||||
Repurchases of common stock | $ 41 | $ 0 | $ 0 | ||||||||
Cash dividends declared per share (in USD per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | |||||
Subsequent event | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Treasury stock, shares, acquired (in shares) | 937,758 | ||||||||||
Repurchases of common stock | $ 26 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Shares of Common Stock Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares of common stock outstanding | |||
Beginning balance (in shares) | 204,856,564 | 204,435,333 | 204,210,731 |
Shares issued under restricted stock award plans (in shares) | 331,554 | 421,231 | 224,602 |
Repurchases of common stock (in shares) | (1,500,000) | 0 | 0 |
Ending balance (in shares) | 203,688,118 | 204,856,564 | 204,435,333 |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | $ 1,561,000 | $ 2,485,000 | $ 2,752,000 |
Change during period | 11,000 | 127,000 | (15,000) |
Reclassified to operations | 20,000 | (1,000) | (1,000) |
Tax effect | 0 | 1,000 | |
Other comprehensive income (loss), net of tax | 30,000 | 127,000 | (15,000) |
Balance, end of period | 1,971,000 | 1,561,000 | 2,485,000 |
Foreign Currency Translation | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 358,000 | 231,000 | 247,000 |
Change during period | 9,000 | 128,000 | (18,000) |
Reclassified to operations | 19,000 | (1,000) | 2,000 |
Tax effect | 0 | 0 | |
Other comprehensive income (loss), net of tax | 28,000 | 128,000 | (17,000) |
Balance, end of period | 387,000 | 358,000 | 231,000 |
Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (9,000) | (8,000) | (7,000) |
Change during period | 3,000 | (1,000) | 0 |
Reclassified to operations | 1,000 | 0 | (2,000) |
Tax effect | (1,000) | 0 | |
Other comprehensive income (loss), net of tax | 3,000 | (1,000) | (1,000) |
Balance, end of period | (6,000) | (9,000) | (8,000) |
Other | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 4,000 | 4,000 | 1,000 |
Change during period | (1,000) | 0 | 3,000 |
Reclassified to operations | 0 | 0 | 0 |
Tax effect | 0 | 0 | |
Other comprehensive income (loss), net of tax | (1,000) | 0 | 3,000 |
Balance, end of period | 3,000 | 4,000 | 4,000 |
AOCI Including Portion Attributable to Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 353,000 | 227,000 | 242,000 |
Balance, end of period | 384,000 | 353,000 | 227,000 |
Attributable to non-controlling interests | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (24,000) | 36,000 | 20,000 |
Change during period | 51,000 | (59,000) | 16,000 |
Reclassified to operations | 1,000 | 0 | 0 |
Tax effect | 0 | 0 | |
Other comprehensive income (loss), net of tax | 52,000 | (59,000) | 16,000 |
Balance, end of period | 28,000 | (24,000) | 36,000 |
Attributable to IGT PLC | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 330,000 | 263,000 | 262,000 |
Change during period | 62,000 | 68,000 | 1,000 |
Reclassified to operations | 21,000 | (1,000) | (1,000) |
Tax effect | 0 | 1,000 | |
Other comprehensive income (loss), net of tax | 82,000 | 67,000 | 1,000 |
Balance, end of period | $ 412,000 | $ 330,000 | $ 263,000 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Ownership (Details) | Dec. 31, 2021 |
Lottoitalia S.r.l. | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 61.50% |
Lotterie Nazionali S.r.l. (LN) | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 64.00% |
Northstar New Jersey Lottery Group, LLC (Northstar NJ) | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 82.31% |
Northstar New Jersey Lottery Group, LLC (Northstar NJ) | New Jersey Holding Company LLC | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 82.31% |
New Jersey Holding Company LLC | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 50.15% |
Variable Interest Entities - _2
Variable Interest Entities - Summary of VIE's assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 2,487 | $ 3,440 |
Non-current assets | 8,836 | 9,552 |
Total assets | 11,322 | 12,992 |
Total liabilities | 9,351 | 11,431 |
VIE, primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Current assets | 1,124 | 1,087 |
Non-current assets | 1,217 | 1,556 |
Total assets | 2,341 | 2,643 |
Total liabilities | $ 615 | $ 708 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended | 12 Months Ended | 14 Months Ended | |||
Dec. 31, 2021segments | Dec. 31, 2020segment | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2021segments | |
Segment Reporting Information [Line Items] | ||||||
Number of business segments | segments | 3 | 2 | ||||
Segment Reorganization | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of business segments | segment | 2 | |||||
ADM | Customer Concentration Risk | Revenue | ||||||
Segment Reporting Information [Line Items] | ||||||
Percentage of exclusive and non-exclusive concession revenue | 23.00% | 19.00% | 16.00% |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 4,089 | $ 3,115 | $ 4,032 |
Operating income (loss) | 902 | (107) | 478 |
Depreciation and amortization | 526 | 566 | 614 |
Expenditures for long-lived assets | (208) | (226) | (342) |
Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,812 | 2,164 | 2,293 |
Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,112 | 837 | 1,648 |
Digital & Betting | |||
Segment Reporting Information [Line Items] | |||
Revenue | 165 | 115 | 91 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 4,089 | 3,115 | 4,032 |
Operating income (loss) | 1,164 | 436 | 877 |
Depreciation and amortization | 366 | 392 | 416 |
Expenditures for long-lived assets | (203) | (224) | (334) |
Operating Segments | Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,812 | 2,164 | 2,293 |
Operating income (loss) | 1,088 | 642 | 697 |
Depreciation and amortization | 225 | 231 | 225 |
Expenditures for long-lived assets | (123) | (149) | (167) |
Operating Segments | Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,112 | 837 | 1,648 |
Operating income (loss) | 43 | (212) | 222 |
Depreciation and amortization | 126 | 146 | 173 |
Expenditures for long-lived assets | (67) | (64) | (154) |
Operating Segments | Digital & Betting | |||
Segment Reporting Information [Line Items] | |||
Revenue | 165 | 115 | 91 |
Operating income (loss) | 33 | 6 | (43) |
Depreciation and amortization | 15 | 15 | 18 |
Expenditures for long-lived assets | (13) | (11) | (13) |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 0 | 0 |
Operating income (loss) | (262) | (544) | (399) |
Depreciation and amortization | 160 | 175 | 198 |
Expenditures for long-lived assets | (6) | (2) | (8) |
Service | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,483 | 2,640 | 3,101 |
Service | Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,690 | 2,043 | 2,183 |
Service | Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | 630 | 483 | 842 |
Service | Digital & Betting | |||
Segment Reporting Information [Line Items] | |||
Revenue | 163 | 114 | 76 |
Service | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,483 | 2,640 | 3,101 |
Service | Operating Segments | Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,690 | 2,043 | 2,183 |
Service | Operating Segments | Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | 630 | 483 | 842 |
Service | Operating Segments | Digital & Betting | |||
Segment Reporting Information [Line Items] | |||
Revenue | 163 | 114 | 76 |
Service | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 0 | 0 |
Product | |||
Segment Reporting Information [Line Items] | |||
Revenue | 606 | 476 | 931 |
Product | Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 123 | 121 | 110 |
Product | Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | 482 | 354 | 806 |
Product | Digital & Betting | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1 | 1 | 15 |
Product | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 606 | 476 | 931 |
Product | Operating Segments | Global Lottery | |||
Segment Reporting Information [Line Items] | |||
Revenue | 123 | 121 | 110 |
Product | Operating Segments | Global Gaming | |||
Segment Reporting Information [Line Items] | |||
Revenue | 482 | 354 | 806 |
Product | Operating Segments | Digital & Betting | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1 | 1 | 15 |
Product | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 0 | $ 0 | $ 0 |
Segment Information - Schedul_2
Segment Information - Schedule of Revenue from External Customers Based on Geographical Location (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 4,089 | $ 3,115 | $ 4,032 |
United States | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 2,126 | 1,666 | 2,116 |
Italy | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 1,307 | 896 | 990 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 72 | 64 | 74 |
Rest of Europe | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 217 | 209 | 323 |
All other | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 368 | $ 280 | $ 530 |
Segment Information - Schedul_3
Segment Information - Schedule of Long-Lived Assets Based on Geographical Location (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 1,056 | $ 1,200 |
United States | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 766 | 841 |
Italy | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 125 | 176 |
United Kingdom | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 9 | 14 |
Rest of Europe | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 93 | 91 |
All other | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 63 | $ 77 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-Based Compensation | |||
Options granted (in shares) | 172,500 | 0 | 0 |
Weighted average grant date fair value of stock options granted (in dollars per share) | $ 9.82 | ||
2015 Equity Incentive Plan | |||
Stock-Based Compensation | |||
Maximum number of shares that may be granted under the Plan (in shares) | 20,500,000 | ||
Stock options | |||
Stock-Based Compensation | |||
Contractual term (in years) | 7 years | ||
Performance share units (PSUs) | |||
Stock-Based Compensation | |||
Total vest-date fair value of stock awards vested (in dollars) | $ 3 | $ 3 | $ 4 |
Performance share units (PSUs) | Tranche one | |||
Stock-Based Compensation | |||
Vesting percentage (as a percent) | 50.00% | ||
Vesting period (in years) | 3 years | ||
Performance share units (PSUs) | Tranche two | |||
Stock-Based Compensation | |||
Vesting percentage (as a percent) | 50.00% | ||
Vesting period (in years) | 4 years | ||
Performance share units (PSUs) | Tranche three | |||
Stock-Based Compensation | |||
Vesting percentage (as a percent) | 50.00% | ||
Vesting period (in years) | 2 years | ||
Performance share units (PSUs) | Tranche four | |||
Stock-Based Compensation | |||
Vesting percentage (as a percent) | 50.00% | ||
Vesting period (in years) | 3 years | ||
Restricted Stock Units (RSUs) | |||
Stock-Based Compensation | |||
Total vest-date fair value of stock awards vested (in dollars) | $ 33 | $ 1 | $ 1 |
Restricted Stock Units (RSUs) | Director | |||
Stock-Based Compensation | |||
Contractual term (in years) | 10 years | ||
Vesting period (in years) | 1 year | ||
Minimum | Restricted Stock Units (RSUs) | |||
Stock-Based Compensation | |||
Vesting period (in years) | 1 year | ||
Maximum | Restricted Stock Units (RSUs) | |||
Stock-Based Compensation | |||
Vesting period (in years) | 2 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity and Related Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock Options | |||
Beginning balance (in shares) | 422,500 | ||
Granted (in shares) | 172,500 | 0 | 0 |
Forfeited (in shares) | (172,500) | ||
Ending balance (in shares) | 422,500 | 422,500 | |
Vested and expected to vest (in shares) | 422,500 | ||
Exercisable (in shares) | 250,000 | ||
Weighted Average Exercise Price Per Share | |||
Beginning balance (in dollars per share) | $ 21.49 | ||
Granted (in dollars per share) | 20.37 | ||
Forfeited (in dollars per share) | 30.12 | ||
Ending balance (in dollars per share) | 17.51 | $ 21.49 | |
Vested and expected to vest (in dollars per share) | 17.51 | ||
Exercisable (in dollars per share) | $ 15.53 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding at end of period | 2 years 9 months 25 days | ||
Vested and expected to vest | 2 years 9 months 25 days | ||
Exercisable | 4 months 17 days | ||
Aggregate Intrinsic Value | |||
Vested and expected to vest | $ 5 | ||
Exercisable | $ 3 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Key Inputs and Assumptions in Stock Option Valuation Models (Details) - Stock options | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Stock-Based Compensation | |
Exercise price (in dollars per share) | $ 20.37 |
Expected option term (in years) | 2 years |
Expected volatility of the Company's stock (as a percent) | 60.00% |
Risk-free interest rate (as a percent) | 0.80% |
Dividend yield (as a percent) | 0.00% |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Award Activity and Related Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Performance share units (PSUs) | |||
Stock Award Activity | |||
Beginning balance (in shares) | 3,356,966 | ||
Granted (in shares) | 3,740,075 | 0 | 2,133,512 |
Vested (in shares) | (200,995) | ||
Forfeited (in shares) | (1,595,221) | ||
Ending balance (in shares) | 5,300,825 | 3,356,966 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 18.40 | ||
Granted (in dollars per share) | 26.10 | $ 0 | $ 11.10 |
Vested (in dollars per share) | 20.91 | ||
Forfeited (in dollars per share) | 25.87 | ||
Ending balance (in dollars per share) | $ 21.50 | $ 18.40 | |
Stock awards, related information | |||
Unrecognized cost for nonvested awards (in dollars) | $ 85 | ||
Weighted average future recognition period (in years) | 2 years 11 months 4 days | ||
Restricted Stock Units (RSUs) | |||
Stock Award Activity | |||
Beginning balance (in shares) | 2,366,383 | ||
Granted (in shares) | 79,844 | 2,375,141 | 131,676 |
Vested (in shares) | (1,198,742) | ||
Forfeited (in shares) | (188,013) | ||
Ending balance (in shares) | 1,059,472 | 2,366,383 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 9.05 | ||
Granted (in dollars per share) | 22.29 | $ 9.04 | $ 14.10 |
Vested (in dollars per share) | 9.05 | ||
Forfeited (in dollars per share) | 9.08 | ||
Ending balance (in dollars per share) | $ 10.05 | $ 9.05 | |
Stock awards, related information | |||
Unrecognized cost for nonvested awards (in dollars) | $ 5 | ||
Weighted average future recognition period (in years) | 11 months 1 day |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Fair Value of Stock Awards Granted Including Weighted Average Grant Date Fair Value (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Performance share units (PSUs) | |||
Stock-Based Compensation | |||
Granted (in shares) | 3,740,075 | 0 | 2,133,512 |
Granted (in dollars per share) | $ 26.10 | $ 0 | $ 11.10 |
Restricted Stock Units (RSUs) | |||
Stock-Based Compensation | |||
Granted (in shares) | 79,844 | 2,375,141 | 131,676 |
Granted (in dollars per share) | $ 22.29 | $ 9.04 | $ 14.10 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | $ 35 | $ (7) | $ 27 |
Income tax benefit (provision) | 8 | (2) | 6 |
Total stock-based compensation, net of tax | 27 | (5) | 20 |
Cost of services | |||
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | 2 | (1) | 2 |
Selling, general and administrative | |||
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | 30 | (4) | 21 |
Research and development | |||
Stock-Based Compensation | |||
Stock-based compensation expense before income taxes | $ 3 | $ (1) | $ 3 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net income (loss) from continuing operations attributable to IGT PLC | $ 65 | $ (939) | $ (129) |
Net income from discontinued operations attributable to IGT PLC | 417 | 41 | 110 |
Net income (loss) attributable to IGT PLC | $ 482 | $ (898) | $ (19) |
Denominator: | |||
Weighted average shares, basic (in shares) | 204,954 | 204,725 | 204,373 |
Incremental shares under stock based compensation plans (in shares) | 1,841 | 0 | 0 |
Weighted average shares, diluted (in shares) | 206,795 | 204,725 | 204,373 |
Net income (loss) from continuing operations attributable to IGT PLC per common share - basic (in dollars per share) | $ 0.32 | $ (4.59) | $ (0.63) |
Net income (loss) from continuing operations attributable to IGT PLC per common share - diluted (in dollars per share) | 0.31 | (4.59) | (0.63) |
Net income from discontinued operations attributable to IGT PLC per common share - basic (in dollars per share) | 2.03 | 0.20 | 0.54 |
Net income from discontinued operations attributable to IGT PLC per common share - diluted (in dollars per share) | 2.02 | 0.20 | 0.54 |
Net income (loss) attributable to IGT PLC per common share - basic (in dollars per share) | 2.35 | (4.39) | (0.09) |
Net income (loss) attributable to IGT PLC per common share - diluted (in dollars per share) | $ 2.33 | $ (4.39) | $ (0.09) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock options and unvested awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities not included in the computation of diluted earnings per share (in shares) | 0 | 1 | 1 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Amounts Receivable from and Payable to Related Parties (Details) - Majority Shareholder - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Tax-related receivables | $ 4 | $ 0 |
Trade payables | 1 | 5 |
Tax-related payables | $ 3 | $ 19 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)ventureCapitalFund | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | |||
Number of investments in venture capital funds | ventureCapitalFund | 2 | ||
Ringmaster S.r.l. | Joint venture | |||
Related Party Transaction [Line Items] | |||
Equity method ownership interest (as a percent) | 50.00% | ||
Investments | $ 1 | $ 1 | |
Expenses | $ 6 | 7 | $ 6 |
Connect Ventures One LP | Son of director | |||
Related Party Transaction [Line Items] | |||
Ownership interest accounted for at fair value (as a percent) | 10.00% | ||
Connect Ventures One LP | Entity with common director or management figure | |||
Related Party Transaction [Line Items] | |||
Amount of investment | $ 3 | 3 | |
Connect Ventures Two LP | Entity with common director or management figure | |||
Related Party Transaction [Line Items] | |||
Amount of investment | $ 6 | $ 6 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent event - Disposal group - Lis Holding S.p.A., € in Millions | Feb. 25, 2022EUR (€) |
Subsequent Event [Line Items] | |
Percentage of share capital sold | 100.00% |
Sale price | € 700 |