Revenue Recognition

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

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,
	2022		2021		2022		2021
Gaming
Gaming operations(1)	$	161	$	151	$	479	$	445
Gaming machine sales	140		95		366		249
Gaming systems	70		52		181		146
Table products	48		41		137		109
Total	$	419	$	339	$	1,163	$	949
SciPlay
Mobile in-app purchases	$	149	$	131	$	426	$	400
Web in-app purchases and other(2)	22		16		63		52
Total	$	171	$	147	$	489	$	452
iGaming	$	58	$	53	$	178	$	171
(1) Gaming operations revenue for the nine months ended September 30, 2021 benefited from $44 million U.K. Fixed Odds Betting Terminal VAT recovery (the “VAT recovery”) received from certain U.K. customers related to a 2020 U.K. court ruling associated with overcharging of VAT for gaming operators that consequently reduced our net gaming revenues related to these customers and arrangements.
(2) Other primarily represents revenue generated from providing advertising platforms with access to SciPlay’s game software platform, which facilitates the placement of advertising inventory, which was not material in the periods presented.

The amount of rental income revenue that is outside the scope of ASC 606 was $116 million and $347 million for the three and nine months ended September 30, 2022, respectively, and $88 million and $270 million for the three and nine months ended September 30, 2021, 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, 2022
Contract liability balance, beginning of period(1)	$	37
Liabilities recognized during the period	9
Amounts recognized in revenue from beginning balance	(17)
Contract liability balance, end of period(1)	$	29
(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. 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	$	440	$	19
End of period balance, September 30, 2022	442		23
(1) Contract assets are included primarily within Prepaid expenses, deposits and other current assets in our consolidated balance sheets.

As of September 30, 2022, 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.