Advanced Micro Devices, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Supplemental Balance Sheet Information

Supplemental Balance Sheet Information

6 Months Ended

Jun. 30, 2018

Balance Sheet Related Disclosures [Abstract]

Accounts Receivable, net

As of June 30, 2018 and December 30, 2017, Accounts receivable, net included unbilled accounts receivable of $349 million and $75 million, respectively. Unbilled accounts receivable represents revenue recognized prior to invoicing. The unbilled receivable primarily represents inventory of semi-custom products under non-cancellable purchase orders that have no alternative use to the Company at contract inception. Accordingly, revenue is recognized based on the value of the inventory and the expected margin, over the time of production of the products by the Company. All unbilled accounts receivable are expected to be billed and collected within twelve months.

Inventories, net



	June 30, 2018		December 30, 2017
	(In millions)
Raw materials	$	72	$	34
Work in process	441		446
Finished goods	237		214
Total inventories, net	$	750	$	694

Property and Equipment, net



	June 30, 2018			December 30, 2017
	(In millions)
Leasehold improvements	$	175		$	187
Equipment	756			758
Construction in progress	68			56
Property and equipment, gross	999			1,001
Accumulated depreciation	(704		)	(740		)
Total property and equipment, net	$	295		$	261

Other Assets



	June 30, 2018		December 30, 2017
	(In millions)
Software technology and licenses, net	$	292	$	239
Other	71		71
Total other assets	$	363	$	310

Accrued Liabilities



	June 30, 2018		December 30, 2017
	(In millions)
Accrued compensation and benefits	$	192	$	206
Marketing programs and advertising expenses	165		145
Software technology and licenses payable	40		41
Other	180		163
Total accrued liabilities	$	577	$	555

Other Current Liabilities



	June 30, 2018		December 30, 2017
	(In millions)
Unearned revenue	$	67	$	85
Other	6		7
Total other current liabilities	$	73	$	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:



	Three Months Ended						Six Months Ended
	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017
	(In millions)
Beginning balance	$	147		$	44		$	85		$	22
Unearned revenue	—			—			86			27
Revenue recognized during the period	(75		)	(1		)	(99		)	(6		)
Other	(5		)	—			(5		)	—
Ending balance	$	67		$	43		$	67		$	43

Revenue allocated to remaining performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2018 is $186 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 $164 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.