Quarterly report pursuant to Section 13 or 15(d)

Supplemental Balance Sheet Information

v3.23.2
Supplemental Balance Sheet Information
 6 Months Ended
Jul. 01, 2023
Balance Sheet Related Disclosures [Abstract]  
Supplemental Balance Sheet Information Supplemental Financial Statement Information
Accounts Receivable, net
As of July 1, 2023 and December 31, 2022, Accounts receivable, net included unbilled accounts receivable of $1.3 billion and $1.1 billion, respectively. Unbilled accounts receivable primarily represents work completed on development services and on custom products for which revenue has been recognized but not yet invoiced. All unbilled accounts receivable are expected to be billed and collected within 12 months.
Inventories
 July 1,
2023		 December 31,
2022
  (In millions)
Raw materials $ 154  $ 231 
Work in process 3,470  2,648 
Finished goods 943  892 
Total inventories $ 4,567  $ 3,771 
Prepaid Expenses and Other Current Assets July 1,
2023		 December 31,
2022
(In millions)
Prepaid supply agreements $ 842  $ 673 
Other 497  592 
Total prepaid expenses and other current assets $ 1,339  $ 1,265 
Prepaid supply agreements relate to the short-term portion of payments made to vendors to secure long-term supply capacity.
Property and Equipment, net
 July 1,
2023		 December 31,
2022
  (In millions)
Land $ 120  $ 120 
Building and leasehold improvements 675  594 
Equipment 2,216  2,163 
Construction in progress 212  143 
Property and equipment, gross 3,223  3,020 
Accumulated depreciation (1,682) (1,507)
Total property and equipment, net $ 1,541  $ 1,513 
Accrued Liabilities
July 1,
2023		 December 31,
2022
  (In millions)
Accrued marketing programs $ 752  $ 876 
Accrued compensation and benefits 643  701 
Customer program liabilities 848  859 
Other accrued liabilities 728  641 
Total accrued liabilities $ 2,971  $ 3,077 
Other Current Liabilities
 July 1,
2023		 December 31,
2022
(In millions)
Tax liabilities $ 635  $ 156 
Other current liabilities 121 180
Total other current liabilities $ 756  $ 336 
Revenue
Revenue allocated to remaining performance obligations that are unsatisfied (or partially unsatisfied) include amounts received from customers and amounts that will be invoiced and recognized as revenue in future periods for development services, IP licensing and product revenue. As of July 1, 2023, the aggregate transaction price allocated to remaining performance obligations under contracts with an original expected duration of more than one year was $274 million, of which $199 million is expected to be recognized in the next 12 months. The revenue allocated to remaining performance obligations does not include amounts which have an original expected duration of one year or less.
Revenue recognized over time associated with custom products and development services accounted for 27% and 28% of the Company’s revenue for the three and six months ended July 1, 2023, respectively and 20% and 21% of the Company’s revenue for the three and six months ended June 25, 2022, respectively,