Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Changes in Stockholders’ Equity (Deficit)

The following tables present certain information regarding our stockholders’ equity (deficit) as of March 31, 2023 and 2022:


	Three Months Ended March 31, 2023
	Common Stock		Additional Paid in Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Noncontrolling Interest		Total
January 1, 2023	$	1	$	1,370	$	517	$	(580)	$	(318)	$	171	$	1,161
Settlement of liability awards	—		25		—		—		—		—		25
Vesting of RSUs, net of tax withholdings and other	—		(14)		—		—		—		—		(14)
Purchase of treasury stock	—		—		—		(28)		—		—		(28)
Purchase of SciPlay’s Class A common stock	—		(8)		—		—		—		—		(8)
Stock-based compensation	—		15		—		—		—		—		15
Net income	—		—		22		—		—		5		27
Other comprehensive income	—		—		—		—		6		—		6
March 31, 2023	$	1	$	1,388	$	539	$	(608)	$	(312)	$	176	$	1,184


	Three Months Ended March 31, 2022
	Common Stock		Additional Paid in Capital		Accumulated Loss		Treasury Stock		Accumulated Other Comprehensive Loss		Noncontrolling Interest		Total
January 1, 2022	$	1	$	1,337	$	(3,158)	$	(175)	$	(261)	$	150	$	(2,106)
Settlement of liability awards	—		43		—		—		—		—		43
Vesting of RSUs, net of tax withholdings and other	—		(31)		—		—		—		—		(31)
Purchase of treasury stock	—		—		—		(51)		—		—		(51)
Stock-based compensation	—		17		—		—		—		—		17
Net income	—		—		26		—		—		2		28
Other comprehensive loss	—		—		—		—		(37)		—		(37)

March 31, 2022	$	1	$	1,366	$	(3,132)	$	(226)	$	(298)	$	152	$	(2,137)

Stock-based Compensation

The following reflects total stock-based compensation expense recognized under all programs:


	Three Months Ended March 31,
	2023		2022

Related to L&W RSUs	$	19	$	12
Related to SciPlay RSUs	7		3
Total(1)	$	26	$	15

(1) Includes $11 million and $4 million of stock-based compensation classified as liability awards as of March 31, 2023 and 2022, respectively.

Restricted Stock Units

A summary of the changes in RSUs outstanding under our equity-based compensation plans during the three months ended March 31, 2023 is presented below:


	Number of Restricted Stock Units	Weighted Average Grant Date Fair Value
Unvested RSUs as of December 31, 2022	1.7	$	46.66
Granted	1.0	$	56.93
Vested	(0.8)	$	45.36
Cancelled	—	$	45.60
Unvested RSUs as of March 31, 2023	1.9	$	52.72

The weighted-average grant date fair value of RSUs granted during the three months ended March 31, 2023 and 2022 was $56.93 and $58.68, respectively. The fair value of each RSU grant is based on the market value of our common stock at the time of grant. As of March 31, 2023, we had $76 million in total unrecognized stock-based compensation expense relating to unvested RSUs that will be amortized over a weighted-average period of approximately two years. The fair value at vesting date of RSUs vested during the three months ended March 31, 2023 and 2022 was $44 million and $92 million, respectively.

Share Repurchase Programs

On March 1, 2022, our Board of Directors approved a share repurchase program under which we are authorized to repurchase, from time to time through February 25, 2025, up to an aggregate amount of $750 million of our outstanding common stock. During the three months ended March 31, 2023, we repurchased 0.5 million shares of common stock under the program at an aggregate cost of $28 million.

On May 9, 2022, SciPlay’s Board of Directors approved a share repurchase program under which it is authorized to repurchase, from time to time through May 9, 2024, up to an aggregate amount of $60 million of its outstanding Class A common stock. During the three months ended March 31, 2023, SciPlay repurchased 0.5 million shares of Class A common stock under the program at an aggregate cost of $8 million. On May 3, 2023, SciPlay’s Board of Directors approved a new share repurchase program under which it is authorized to repurchase, from time to time through May 3, 2024, up to an aggregate amount of $60 million of its outstanding Class A common stock.