Revenue Recognition

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

The following table disaggregates revenues by type within each of our business segments:


	Three Months Ended March 31,
	2020		2019
Gaming
Gaming operations	$	119	$	152
Gaming machine sales	92		136
Gaming systems	55		74
Table products	52		60
Total	$	318	$	422

Lottery
Instant products	$	136	$	140
Lottery systems	76		87
Total	$	212	$	227

SciPlay
Mobile	$	101	$	97
Web and other	17		21
Total	$	118	$	118

Digital
Sports and platform	$	38	$	30
Gaming and other	39		40
Total	$	77	$	70

The amount of rental income revenue that is outside the scope of ASC 606 was $74 million and $96 million for the three months ended March 31, 2020 and 2019, respectively.

Contract Liabilities and Other Disclosures

The following table summarizes the activity in our contract liabilities for the reporting period:


	Three Months Ended March 31,
	2020
Contract liability balance, beginning of period⁽¹⁾	$	109
Liabilities recognized during the period	36
Amounts recognized in revenue from beginning balance	(49)
Contract liability balance, end of period⁽¹⁾	$	96
(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 percentage of retail sales 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, revenue recognition under ASC 606 does not approximate conversion to cash in any periods post-adoption. Total revenue recognized under such contracts was $19 million and $23 million in the three months ended March 31, 2020 and 2019, respectively. The following table summarizes our balances in these accounts for the periods indicated (other than contract liabilities disclosed above):


	Receivables		Contract Assets⁽¹⁾
Beginning of period balance⁽²⁾	$	808	$	121
End of period balance, March 31, 2020	672		133


(1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets.
(2) The beginning of period balance excludes the impact of adoption of ASC 326.

As of March 31, 2020, 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.