Quarterly report pursuant to Section 13 or 15(d)

Supplemental Balance Sheet Information

v3.10.0.1
Supplemental Balance Sheet Information
 9 Months Ended
Sep. 29, 2018
Balance Sheet Related Disclosures [Abstract]  
Supplemental Balance Sheet Information
Supplemental Balance Sheet Information
Accounts Receivable, net
As of September 29, 2018 and December 30, 2017, Accounts receivable, net included unbilled accounts receivable of $331 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 receivable are expected to be billed and collected within twelve months.
Inventories, net
 
September 29,
2018
 
December 30,
2017
 
(In millions)
Raw materials
$
85

 
$
34

Work in process
418

 
446

Finished goods
235

 
214

Total inventories, net
$
738

 
$
694


Property and Equipment, net
 
September 29,
2018
 
December 30,
2017
 
(In millions)
Leasehold improvements
$
176

 
$
187

Equipment
780

 
758

Construction in progress
80

 
56

Property and equipment, gross
1,036

 
1,001

Accumulated depreciation
(718
)
 
(740
)
Total property and equipment, net
$
318

 
$
261


Other Assets
 
September 29,
2018
 
December 30,
2017
 
(In millions)
Software technology and licenses, net
$
274

 
$
239

Other
94

 
71

Total other assets
$
368

 
$
310


Accrued Liabilities
 
September 29,
2018
 
December 30,
2017
 
(In millions)
Accrued compensation and benefits
$
223

 
$
206

Marketing programs and advertising expenses
249

 
145

Software technology and licenses payable
45

 
41

Other
171

 
163

Total accrued liabilities
$
688

 
$
555


Other Current Liabilities
 
September 29,
2018
 
December 30,
2017
 
(In millions)
Unearned revenue
$
3

 
$
85

Other
10

 
7

Total other current liabilities
$
13

 
$
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
 
Nine Months Ended
 
September 29,
2018
 
September 30,
2017
 
September 29,
2018
 
September 30,
2017
 
(In millions)
Beginning balance
$
67

 
$
43

 
$
85

 
$
22

Unearned revenue
37

 
32

 
124

 
59

Revenue recognized during the period
(86
)
 
—

 
(186
)
 
(6
)
Other
(15
)
 
—

 
(20
)
 
—

Ending balance
$
3

 
$
75

 
$
3

 
$
75


Revenue allocated to remaining performance obligations that are unsatisfied (or partially unsatisfied) as of September 29, 2018 is $121 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 $99 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 contractual expected duration of less than one year.