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

3 Months Ended

Mar. 30, 2019

Balance Sheet Related Disclosures [Abstract]

Accounts Receivable, net

As of March 30, 2019 and December 29, 2018, Accounts receivable, net included unbilled accounts receivable of $353 million and $308 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



	March 30, 2019		December 29, 2018
	(In millions)
Raw materials	$	120	$	134
Work in process	548		354
Finished goods	287		357
Total inventories, net	$	955	$	845

Property and Equipment, net



	March 30, 2019			December 29, 2018
	(In millions)
Leasehold improvements	$	181		$	179
Equipment	808			798
Construction in progress	112			78
Property and equipment, gross	1,101			1,055
Accumulated depreciation	(724		)	(707		)
Total property and equipment, net	$	377		$	348

Other Assets



	March 30, 2019		December 29, 2018
	(In millions)
Software technology and licenses, net	$	222	$	226
Other	95		95
Total other assets	$	317	$	321

Accrued Liabilities



	March 30, 2019		December 29, 2018
	(In millions)
Accrued compensation and benefits	$	226	$	236
Marketing programs and advertising expenses	241		275
Software technology and licenses payable	56		28
Other	196		224
Total accrued liabilities	$	719	$	763

Other Current Liabilities



	March 30, 2019		December 29, 2018
	(In millions)
Unearned revenue	$	2	$	11
Operating lease liabilities	38		—
Other	5		13
Total other current liabilities	$	45	$	24

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
	March 30, 2019			March 31, 2018
	(In millions)
Beginning balance	$	11		$	85
Unearned revenue	1			86
Revenue recognized during the period	(10		)	(24		)
Ending balance	$	2		$	147

Revenue allocated to remaining performance obligations that are unsatisfied (or partially unsatisfied) as of March 30, 2019 is $70 million, which may include amounts received from customers 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 $70 million in the next 12 months.

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