Revenue

Revenue Disaggregation

The Company operates Integrated Resorts internationally, in Macao and Singapore, and domestically, in Las Vegas and Pennsylvania. The Company generates revenues at its properties by providing the following types of products and services: gaming, rooms, food and beverage, mall and convention, retail and other. Revenue disaggregated by type of revenue and geographic location is as follows:



	Casino		Rooms		Food and Beverage		Mall			Convention, Retail and Other			Net Revenues
Year Ended December 31, 2018	(In millions)
Macao:
The Venetian Macao	$	2,829	$	223	$	81	$	234		$	107		$	3,474
Sands Cotai Central	1,622		331		102		69			29			2,153
The Parisian Macao	1,265		124		65		57			22			1,533
The Plaza Macao and Four Seasons Hotel Macao	502		39		29		145			4			719
Sands Macao	598		17		27		3			5			650
Ferry Operations and Other	—		—		—		—			160			160
	6,816		734		304		508			327			8,689
Marina Bay Sands	2,178		393		211		179			108			3,069
United States:
Las Vegas Operating Properties	357		590		324		—			411			1,682
Sands Bethlehem	468		16		26		4			22			536
	825		606		350		4			433			2,218
Intercompany eliminations⁽¹⁾	—		—		—		(1		)	(246		)	(247		)
Total net revenues	$	9,819	$	1,733	$	865	$	690		$	622		$	13,729



	Casino		Rooms		Food and Beverage		Mall		Convention, Retail and Other			Net Revenues
Year Ended December 31, 2017
Macao:
The Venetian Macao	$	2,362	$	179	$	74	$	220	$	89		$	2,924
Sands Cotai Central	1,433		291		102		63		27			1,916
The Parisian Macao	1,120		128		61		66		20			1,395
The Plaza Macao and Four Seasons Hotel Macao	391		34		28		131		3			587
Sands Macao	574		19		27		—		6			626
Ferry Operations and Other	—		—		—		—		161			161
	5,880		651		292		480		306			7,609
Marina Bay Sands	2,333		358		183		167		93			3,134
United States:
Las Vegas Operating Properties	380		561		325		—		391			1,657
Sands Bethlehem	493		16		28		4		23			564
	873		577		353		4		414			2,221
Intercompany eliminations⁽¹⁾	—		—		—		—		(236		)	(236		)
Total net revenues	$	9,086	$	1,586	$	828	$	651	$	577		$	12,728

Year Ended December 31, 2016
Macao:
The Venetian Macao	$	2,286	$	177	$	75	$	209	$	84		$	2,831
Sands Cotai Central	1,471		267		99		62		25			1,924
The Parisian Macao	315		36		20		23		7			401
The Plaza Macao and Four Seasons Hotel Macao	392		36		26		127		3			584
Sands Macao	614		20		26		—		8			668
Ferry Operations and Other	—		—		—		—		158			158
	5,078		536		246		421		285			6,566
Marina Bay Sands	1,965		376		189		166		95			2,791
United States:
Las Vegas Operating Properties	359		572		282		—		358			1,571
Sands Bethlehem	484		15		30		4		22			555
	843		587		312		4		380			2,126
Intercompany eliminations⁽¹⁾	—		—		—		—		(212		)	(212		)
Total net revenues	$	7,886	$	1,499	$	747	$	591	$	548		$	11,271

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(1)	Intercompany eliminations include royalties and other intercompany services (see "Note 19 — Segment Information").

Contract and Contract Related Liabilities

The Company provides numerous products and services to its customers. There is often a timing difference between the cash payment by the customers and recognition of revenue for each of the associated performance obligations. The Company has the following main types of liabilities associated with contracts with customers: (1) outstanding chip liability, (2) loyalty program liability and (3) customer deposits and other deferred revenue for gaming and non-gaming products and services yet to be provided.

The outstanding chip liability represents the collective amounts owed to gaming promoters and patrons in exchange for gaming chips in their possession. Outstanding chips are expected to be recognized as revenue or redeemed for cash within one year of being purchased. The loyalty program liability represents a deferral of revenue until patron redemption of points earned. The loyalty program points are expected to be redeemed and recognized as revenue within one year of being earned. Customer deposits and other deferred revenue represent cash deposits made by customers for future services provided by the Company. With the exception of mall deposits, which typically extend beyond a year based on the terms of the lease, the majority of these customer deposits and other deferred revenue are expected to be recognized as revenue or refunded to the customer within one year of the date the deposit was recorded.

The following table summarizes the liability activity related to contracts with customers:



	Outstanding Chip Liability					Loyalty Program Liability					Customer Deposits and Other Deferred Revenue⁽¹⁾
	2018		2017			2018		2017			2018		2017
	(In millions)
Balance at January 1	$	478	$	525		$	63	$	69		$	714	$	633
Balance at December 31	551		478			66		63			827		714
Increase (decrease)	$	73	$	(47	)	$	3	$	(6	)	$	113	$	81

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(1)	Of this amount, $152 million, $145 million and $131 million as of December 31, 2018, December 31, 2017 and January 1, 2017, respectively, relates to mall deposits that are accounted for based on lease terms usually greater than one year.

Significant Impacts of Adoption

The Company adopted the new revenue recognition standard on January 1, 2018, on a full retrospective basis. The adoption of the change in accounting standards related to revenue from contracts with customers resulted in the following significant impacts: (1) promotional allowances line item was eliminated from the condensed consolidated statement of operations with the amount being deducted primarily from casino revenue, (2) the valuation of points associated with the Company’s loyalty programs was changed from cost to fair value; the loyalty program expense, previously charged to casino expense, was deducted from casino revenue to defer revenue recognition until redemption of the loyalty program points occurs; and redemption of the loyalty program points at third parties is now deducted from the loyalty program liability and paid directly to the third party, with any discounts received from the third party recorded to other revenue and (3) the portion of gaming promoter commissions previously recorded to casino expense is now deducted from casino revenue. These adjustments resulted in a decrease to net revenues and operating expenses of $154 million and $156 million, respectively, and an increase in operating income of $2 million for the year ended December 31, 2017, and a decrease to net revenues and operating expenses of $139 million and $148 million, respectively, and an increase in operating income of $9 million for the year ended December 31, 2016. The cumulative effect of the adoption was recognized as a decrease in retained earnings of $18 million and a decrease in equity from noncontrolling interests of $1 million on January 1, 2016.