LAS VEGAS SANDS CORPLVS
LAS VEGAS SANDS CORP Revenue Disclosure
Revenue
Revenue Disaggregation
The Company operates Integrated Resorts internationally, in Macao and Singapore, and domestically, in Las Vegas and Pennsylvania. The Company generates revenues at its properties by providing the following types of products and services: gaming, rooms, food and beverage, mall and convention, retail and other. Revenue disaggregated by type of revenue and geographic location is as follows:
Casino | Rooms | Food and Beverage | Mall | Convention, Retail and Other | Net Revenues | ||||||||||||||||||
Year Ended December 31, 2018 | (In millions) | ||||||||||||||||||||||
Macao: | |||||||||||||||||||||||
The Venetian Macao | $ | 2,829 | $ | 223 | $ | 81 | $ | 234 | $ | 107 | $ | 3,474 | |||||||||||
Sands Cotai Central | 1,622 | 331 | 102 | 69 | 29 | 2,153 | |||||||||||||||||
The Parisian Macao | 1,265 | 124 | 65 | 57 | 22 | 1,533 | |||||||||||||||||
The Plaza Macao and Four Seasons Hotel Macao | 502 | 39 | 29 | 145 | 4 | 719 | |||||||||||||||||
Sands Macao | 598 | 17 | 27 | 3 | 5 | 650 | |||||||||||||||||
Ferry Operations and Other | — | — | — | — | 160 | 160 | |||||||||||||||||
6,816 | 734 | 304 | 508 | 327 | 8,689 | ||||||||||||||||||
Marina Bay Sands | 2,178 | 393 | 211 | 179 | 108 | 3,069 | |||||||||||||||||
United States: | |||||||||||||||||||||||
Las Vegas Operating Properties | 357 | 590 | 324 | — | 411 | 1,682 | |||||||||||||||||
Sands Bethlehem | 468 | 16 | 26 | 4 | 22 | 536 | |||||||||||||||||
825 | 606 | 350 | 4 | 433 | 2,218 | ||||||||||||||||||
Intercompany eliminations(1) | — | — | — | (1 | ) | (246 | ) | (247 | ) | ||||||||||||||
Total net revenues | $ | 9,819 | $ | 1,733 | $ | 865 | $ | 690 | $ | 622 | $ | 13,729 | |||||||||||
Casino | Rooms | Food and Beverage | Mall | Convention, Retail and Other | Net Revenues | ||||||||||||||||||
Year Ended December 31, 2017 | |||||||||||||||||||||||
Macao: | |||||||||||||||||||||||
The Venetian Macao | $ | 2,362 | $ | 179 | $ | 74 | $ | 220 | $ | 89 | $ | 2,924 | |||||||||||
Sands Cotai Central | 1,433 | 291 | 102 | 63 | 27 | 1,916 | |||||||||||||||||
The Parisian Macao | 1,120 | 128 | 61 | 66 | 20 | 1,395 | |||||||||||||||||
The Plaza Macao and Four Seasons Hotel Macao | 391 | 34 | 28 | 131 | 3 | 587 | |||||||||||||||||
Sands Macao | 574 | 19 | 27 | — | 6 | 626 | |||||||||||||||||
Ferry Operations and Other | — | — | — | — | 161 | 161 | |||||||||||||||||
5,880 | 651 | 292 | 480 | 306 | 7,609 | ||||||||||||||||||
Marina Bay Sands | 2,333 | 358 | 183 | 167 | 93 | 3,134 | |||||||||||||||||
United States: | |||||||||||||||||||||||
Las Vegas Operating Properties | 380 | 561 | 325 | — | 391 | 1,657 | |||||||||||||||||
Sands Bethlehem | 493 | 16 | 28 | 4 | 23 | 564 | |||||||||||||||||
873 | 577 | 353 | 4 | 414 | 2,221 | ||||||||||||||||||
Intercompany eliminations(1) | — | — | — | — | (236 | ) | (236 | ) | |||||||||||||||
Total net revenues | $ | 9,086 | $ | 1,586 | $ | 828 | $ | 651 | $ | 577 | $ | 12,728 | |||||||||||
Year Ended December 31, 2016 | |||||||||||||||||||||||
Macao: | |||||||||||||||||||||||
The Venetian Macao | $ | 2,286 | $ | 177 | $ | 75 | $ | 209 | $ | 84 | $ | 2,831 | |||||||||||
Sands Cotai Central | 1,471 | 267 | 99 | 62 | 25 | 1,924 | |||||||||||||||||
The Parisian Macao | 315 | 36 | 20 | 23 | 7 | 401 | |||||||||||||||||
The Plaza Macao and Four Seasons Hotel Macao | 392 | 36 | 26 | 127 | 3 | 584 | |||||||||||||||||
Sands Macao | 614 | 20 | 26 | — | 8 | 668 | |||||||||||||||||
Ferry Operations and Other | — | — | — | — | 158 | 158 | |||||||||||||||||
5,078 | 536 | 246 | 421 | 285 | 6,566 | ||||||||||||||||||
Marina Bay Sands | 1,965 | 376 | 189 | 166 | 95 | 2,791 | |||||||||||||||||
United States: | |||||||||||||||||||||||
Las Vegas Operating Properties | 359 | 572 | 282 | — | 358 | 1,571 | |||||||||||||||||
Sands Bethlehem | 484 | 15 | 30 | 4 | 22 | 555 | |||||||||||||||||
843 | 587 | 312 | 4 | 380 | 2,126 | ||||||||||||||||||
Intercompany eliminations(1) | — | — | — | — | (212 | ) | (212 | ) | |||||||||||||||
Total net revenues | $ | 7,886 | $ | 1,499 | $ | 747 | $ | 591 | $ | 548 | $ | 11,271 | |||||||||||
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(1) | Intercompany eliminations include royalties and other intercompany services (see "Note 19 — Segment Information"). |
Contract and Contract Related Liabilities
The Company provides numerous products and services to its customers. There is often a timing difference between the cash payment by the customers and recognition of revenue for each of the associated performance obligations. The Company has the following main types of liabilities associated with contracts with customers: (1) outstanding chip liability, (2) loyalty program liability and (3) customer deposits and other deferred revenue for gaming and non-gaming products and services yet to be provided.
The outstanding chip liability represents the collective amounts owed to gaming promoters and patrons in exchange for gaming chips in their possession. Outstanding chips are expected to be recognized as revenue or redeemed for cash within one year of being purchased. The loyalty program liability represents a deferral of revenue until patron redemption of points earned. The loyalty program points are expected to be redeemed and recognized as revenue within one year of being earned. Customer deposits and other deferred revenue represent cash deposits made by customers for future services provided by the Company. With the exception of mall deposits, which typically extend beyond a year based on the terms of the lease, the majority of these customer deposits and other deferred revenue are expected to be recognized as revenue or refunded to the customer within one year of the date the deposit was recorded.
The following table summarizes the liability activity related to contracts with customers:
Outstanding Chip Liability | Loyalty Program Liability | Customer Deposits and Other Deferred Revenue(1) | |||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Balance at January 1 | $ | 478 | $ | 525 | $ | 63 | $ | 69 | $ | 714 | $ | 633 | |||||||||||
Balance at December 31 | 551 | 478 | 66 | 63 | 827 | 714 | |||||||||||||||||
Increase (decrease) | $ | 73 | $ | (47 | ) | $ | 3 | $ | (6 | ) | $ | 113 | $ | 81 | |||||||||
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(1) | Of this amount, $152 million, $145 million and $131 million as of December 31, 2018, December 31, 2017 and January 1, 2017, respectively, relates to mall deposits that are accounted for based on lease terms usually greater than one year. |
Significant Impacts of Adoption
The Company adopted the new revenue recognition standard on January 1, 2018, on a full retrospective basis. The adoption of the change in accounting standards related to revenue from contracts with customers resulted in the following significant impacts: (1) promotional allowances line item was eliminated from the condensed consolidated statement of operations with the amount being deducted primarily from casino revenue, (2) the valuation of points associated with the Company’s loyalty programs was changed from cost to fair value; the loyalty program expense, previously charged to casino expense, was deducted from casino revenue to defer revenue recognition until redemption of the loyalty program points occurs; and redemption of the loyalty program points at third parties is now deducted from the loyalty program liability and paid directly to the third party, with any discounts received from the third party recorded to other revenue and (3) the portion of gaming promoter commissions previously recorded to casino expense is now deducted from casino revenue. These adjustments resulted in a decrease to net revenues and operating expenses of $154 million and $156 million, respectively, and an increase in operating income of $2 million for the year ended December 31, 2017, and a decrease to net revenues and operating expenses of $139 million and $148 million, respectively, and an increase in operating income of $9 million for the year ended December 31, 2016. The cumulative effect of the adoption was recognized as a decrease in retained earnings of $18 million and a decrease in equity from noncontrolling interests of $1 million on January 1, 2016.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.