Light & Wonder, Inc. (LNW) presents a deeply negative liquidation posture as of March 31, 2026, consistent with MFFAIS's reported CLV of approximately negative $16.0 billion. The asset base of $6.4 billion is dominated by intangible assets that carry zero recovery value under the liquidation lens: goodwill of $3.4 billion, finite-lived intangibles (net) of $769 million, and capitalized software (net) of $195 million collectively represent approximately $4.4 billion, or roughly 69% of total assets, with zero assignable recovery. PP&E (net) of $347 million recovers at 50-70%, yielding $174-243 million. Inventory of $185 million recovers at approximately 60%, or $111 million. AR (gross $642 million, net $614 million with $28 million allowance) recovers at 90-95%, yielding $553-583 million. Cash and restricted cash total $253 million ($147 million unrestricted, $106 million restricted), recovering at 100%. Operating lease ROU assets ($42 million) recover at zero under the lens. Total estimated liquidation asset recovery is roughly $1.1-1.2 billion. Against this, total liabilities stand at $6.1 billion at face value, with long-term debt and capital lease obligations (including current portion) of $5.1 billion the dominant claim. Accrued liabilities of $437 million include contingent legal accruals that declined sharply from $144 million at year-end 2025 to $55 million at March 31, 2026, reflecting the $128 million Aristocrat Australia settlement payment made in Q1 2026 (disclosed in MD&A; approximately $137 million total legal cash outflows in Q1). The contingent consideration liability of $84 million (Grover acquisition, not separately XBRL-tagged at the balance sheet line but referenced in tag context via BusinessCombinationContingentConsiderationLiability) remains a face-value obligation in liquidation. Operating lease liabilities total $46 million at face value. OtherLiabilitiesNoncurrent of $258 million is undisclosed in detail in the XBRL filing. The face value of long-term debt is $5.2 billion per MD&A, with $3.1 billion variable-rate; net of $42 million unamortized discount/issuance costs, carrying value is $5.14 billion. The net equity book value is $311 million, but under liquidation all intangibles are zeroed and liabilities remain at face, producing a recovery deficit of approximately negative $4.9 to $5.0 billion to equity in a simplified computation, fully consistent with the MFFAIS CLV. The Grover acquisition (completed Q1 2025) added goodwill and intangibles with no liquidation recovery while materially increasing debt and D&A ($16 million of the Q1 2026 D&A increase attributable to Grover). The AztecGold shareholder class action filed April 22, 2026 (post-period) introduces an unquantified additional contingent liability not yet accrued. Filing discusses the $50 million legal reserve charge in Q1 2026 restructuring line in MD&A but the underlying accrual balance is tagged via LossContingencyAccrualAtCarryingValue.
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