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Revenue Recognition
9 Months Ended
Sep. 30, 2019
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition

The following table disaggregates revenues by type within each of our business segments:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019

2018
 
2019
 
2018
Gaming
 
 
 
 
 
 
 
  Gaming operations
$
149

 
$
159

 
$
451

 
$
481

  Gaming machine sales
168

 
167

 
452

 
480

Gaming systems
77

 
70

 
218

 
229

  Table products
60

 
52

 
182

 
172

    Total
$
454

 
$
448

 
$
1,303

 
$
1,362

 
 
 
 
 
 
 
 
Lottery
 
 
 
 
 
 
 
  Instant products
$
150

 
$
142

 
$
440

 
$
442

  Lottery systems
70

 
65

 
238

 
174

    Total
$
220

 
$
207

 
$
678

 
$
616

 
 
 
 
 
 
 
 
SciPlay
 
 
 
 
 
 
 
  Mobile
$
97


$
83

 
$
293

 
$
232

  Web and other
19


22

 
60

 
70

    Total
$
116

 
$
105

 
$
353

 
$
302

 
 
 
 
 
 
 
 
Digital
 
 
 
 
 
 
 
Sports and platform
$
29

 
$
21

 
$
85

 
$
67

Gaming and other
36

 
40

 
118

 
131

    Total
$
65

 
$
61

 
$
203

 
$
198



The amount of rental income revenue that is outside the scope of ASC 606 was $91 million and $282 million for the three and nine months ended September 30, 2019, respectively, and $66 million and $202 million for the three and nine months ended September 30, 2018, respectively.

Contract Liabilities and Other Disclosures

The following table summarizes the activity in our contract liabilities for the reporting period:
 
Nine Months Ended September 30,
 
2019
Contract liability balance, beginning of period(1)
$
97

Liabilities recognized during the period
51

Amounts recognized in revenue from beginning balance
(30
)
Contract liability balance, end of period(1)
$
118

(1) Contract liabilities are included within Accrued liabilities and Other long-term liabilities in our consolidated balance sheets.


The timing of revenue recognition, billings and cash collections results in billed receivables, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on our consolidated balance sheets. Other than contracts with customers with financing arrangements exceeding 12 months, revenue recognition is generally proximal to conversion to cash, except for Lottery instant products sold under POS contracts. Revenue is recognized for such contracts upon delivery to our customers, while conversion to cash is based on the retail sale of the underlying ticket to end consumers. As a result, for such contracts revenue recognition under ASC 606 does not approximate conversion to cash. Total revenue recognized under such contracts for the three and nine months ended September 30, 2019 was $20 million and $69 million, respectively, and was $26 million and $84 million for the three and nine months ended September 30, 2018, respectively. The following table summarizes our receivables and contract asset balances for the periods indicated:
 
Receivables
 
Contract Assets(1)
Beginning of period balance
$
753

 
$
114

End of period balance, September 30, 2019
811

 
136

(1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets.

As of September 30, 2019, we did not have material unsatisfied performance obligations for contracts expected to be long-term or contracts for which we recognize revenue at an amount other than for which we have the right to invoice for goods or services delivered or performed.