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. 29, 2018

Balance Sheet Related Disclosures [Abstract]

Accounts Receivable, net

As of December 29, 2018 and December 30, 2017, Accounts receivable, net included unbilled accounts receivable of $308 million and $75 million, respectively. Unbilled receivables primarily represent work completed on semi-custom products under non-cancellable purchase orders that have no alternative use to the Company at contract inception, for which revenue has been recognized but not yet invoiced to customers. All unbilled accounts receivables are expected to be billed and collected within 12 months.

Inventories, net



	December 29, 2018		December 30, 2017
	(In millions)
Raw materials	$	134	$	34
Work in process	354		446
Finished goods	357		214
Total inventories, net	$	845	$	694

Property and Equipment, net



	December 29, 2018			December 30, 2017
	(In millions)
Leasehold improvements	$	179		$	187
Equipment	798			758
Construction in progress	78			56
Property and equipment, gross	1,055			1,001
Accumulated depreciation and amortization	(707		)	(740		)
Total property and equipment, net	$	348		$	261

Depreciation expense for 2018, 2017 and 2016 was $94 million, $77 million and $71 million, respectively.

Other Assets



	December 29, 2018		December 30, 2017
	(In millions)
Software and technology licenses, net	$	226	$	239
Other	95		71
Total other assets	$	321	$	310

During the fourth quarter of 2018, the Company recorded an impairment charge in Cost of sales of $45 million on technology licenses that are no longer being used.

Accrued Liabilities



	December 29, 2018		December 30, 2017
	(In millions)
Accrued compensation and benefits	$	236	$	206
Marketing programs and advertising expenses	275		145
Software technology and licenses payable	28		41
Other accrued and current liabilities	224		163
Total accrued liabilities	$	763	$	555

Other Current Liabilities



	December 29, 2018		December 30, 2017
	(In millions)
Unearned revenue	$	11	$	85
Other	13		7
Total other current liabilities	$	24	$	92

Unearned revenue represents consideration received or due from customers in advance of the Company satisfying its performance obligations. The unearned revenue is associated with any combination of development services, IP licensing and product revenue. Changes in unearned revenue were as follows:



	December 29, 2018			December 30, 2017
	(In millions)
Beginning balance	$	85		$	22
Unearned revenue	132			104
Revenue recognized during the period	(186		)	(41		)
Other	(20		)	—
Ending balance	$	11		$	85

Revenue allocated to remaining performance obligations that are unsatisfied (or partially unsatisfied) as of December 29, 2018 is $95 million, which may include amounts received from customer but not yet earned and amounts that will be invoiced and recognized as revenue in future periods associated with any combination of development services, IP licensing and product revenue. The Company expects to recognize $78 million in the next 12 months, and the remainder thereafter. As permitted under ASC 606, the Company has not disclosed the comparative amounts as of December 30, 2017.

The revenue allocated to remaining performance obligations did not include amounts which have an original expected duration of less than one year.