Advanced Micro Devices, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Supplemental Balance Sheet Information

Supplemental Balance Sheet Information

12 Months Ended

Dec. 30, 2017

Balance Sheet Related Disclosures [Abstract]

Accounts Receivable

As of December 30, 2017 and December 31, 2016, Accounts receivable, net included unbilled accounts receivable of $16 million and $37 million, respectively. Unbilled accounts receivable represent revenue recognized but not billed as payments are deferred by customers until certain contractual milestones are met. All unbilled accounts receivable are expected to be billed and collected within twelve months.

Inventories



	December 30, 2017		December 31, 2016
	(In millions)
Raw materials	$	34	$	11
Work in process	468		564
Finished goods	237		176
Total inventories, net	$	739	$	751

Property, plant and equipment



	December 30, 2017			December 31, 2016
	(In millions)
Leasehold improvements	$	187		$	148
Equipment	758			714
Construction in progress	56			19
Property, plant and equipment, gross	1,001			881
Accumulated depreciation and amortization	(740		)	(717		)
Total property, plant and equipment, net	$	261		$	164

The Company incurs costs for the fabrication of mask sets used by its foundry partners to manufacture its products. Beginning the first quarter of 2017, the Company capitalizes mask set costs that are expected to be utilized in production manufacturing as the Company’s product development process has become more predictable and thus supports capitalization of the mask set. The capitalized mask set costs begin depreciating to Cost of sales once the products go into production on a straight-line basis over the estimated useful life of two years. Previously, mask sets were expensed to research and development.

Depreciation expense for 2017, 2016 and 2015 was $77 million, $71 million and $94 million, respectively.

Other assets



	December 30, 2017		December 31, 2016
	(In millions)
Software and technology licenses, net	$	239	$	234
Other	71		45
Total other assets	$	310	$	279

Accrued liabilities



	December 30, 2017		December 31, 2016
	(In millions)
Accrued compensation and benefits	$	206	$	116
Marketing programs and advertising expenses	150		102
Software technology and licenses payable	41		24
Other accrued and current liabilities	144		149
Total accrued liabilities	$	541	$	391