Revenue Recognition

3 Months Ended

Mar. 31, 2021

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 March 31,
	2021		2020
Gaming
Gaming operations	$	113	$	119
Gaming machine sales	55		92
Gaming systems	42		55
Table products	34		52
Total	$	244	$	318
Lottery
Instant products	$	162	$	136
Lottery systems	86		76
Total	$	248	$	212
SciPlay
Mobile	$	133	$	101
Web and other	18		17
Total	$	151	$	118
Digital
Sports and platform	$	33	$	38
Gaming and other	53		39
Total	$	86	$	77

The amount of rental income revenue that is outside the scope of ASC 606 was $63 million and $74 million for the three months ended March 31, 2021, and 2020, 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, 2021
Contract liability balance, beginning of period(1)	$	89
Liabilities recognized during the period	30
Amounts recognized in revenue from beginning balance	(20)
Contract liability balance, end of period(1)	$	99
(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 tickets to end consumers. As a result, revenue recognition under ASC 606 does not approximate conversion to cash for such contracts in any periods presented. Total revenue recognized under such contracts was $19 million in the three months ended March 31, 2021 and 2020. 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	$	636	$	127
End of period balance, March 31, 2021	641		117
(1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets.

As of March 31, 2021, 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.