Revenue Recognition

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Gaming
Gaming operations(1)	$	181	$	16	$	294	$	135
Gaming machine sales	100		53		155		145
Gaming systems	52		17		94		72
Table products	34		5		68		57
Total	$	367	$	91	$	611	$	409
Lottery
Instant products	$	175	$	133	$	337	$	269
Lottery systems	91		76		177		152
Total	$	266	$	209	$	514	$	421
SciPlay
Mobile	$	136	$	144	$	269	$	245
Web and other	18		22		36		39
Total	$	154	$	166	$	305	$	284
Digital
Sports and platform	$	38	$	26	$	71	$	64
Gaming and other	55		47		108		86
Total	$	93	$	73	$	179	$	150
(1) Gaming operations revenue for the three and six months ended June 30, 2021 benefited from $38 million and $44 million U.K. FOBT recovery received from certain U.K. customers related to a 2020 U.K. court ruling associated with overcharging of value-added tax for gaming operators that consequently reduced our net gaming revenues related to these customers and arrangements.

The amount of rental income revenue that is outside the scope of ASC 606 was $119 million and $182 million for the three and six months ended June 30, 2021, respectively, and $12 million and $86 million for the three and six months ended June 30, 2020, respectively.

Contract Liabilities and Other Disclosures

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

	Six Months Ended June 30,
	2021
Contract liability balance, beginning of period(1)	$	89
Liabilities recognized during the period	47
Amounts recognized in revenue from beginning balance	(43)
Contract liability balance, end of period(1)	$	93
(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 for the three and six months ended June 30, 2021 was $31 million and $50 million, respectively, and $21 million and $40 million for the three and six months ended June 30, 2020, 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	$	636	$	127
End of period balance, June 30, 2021	656		113
(1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets.

As of June 30, 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.