Quarterly report pursuant to Section 13 or 15(d)

Supplemental Balance Sheet Information

v3.19.3
Supplemental Balance Sheet Information
 9 Months Ended
Sep. 28, 2019
Balance Sheet Related Disclosures [Abstract]  
Supplemental Balance Sheet Information Supplemental Balance Sheet Information
Accounts Receivable, net
As of September 28, 2019 and December 29, 2018, Accounts receivable, net included unbilled accounts receivable of $176 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
 
September 28,
2019
 
December 29,
2018
 
(In millions)
Raw materials
$
95

 
$
134

Work in process
754

 
354

Finished goods
191

 
357

Total inventories, net
$
1,040

 
$
845


Property and Equipment, net
 
September 28,
2019
 
December 29,
2018
 
(In millions)
Leasehold improvements
$
207

 
$
179

Equipment
945

 
798

Construction in progress
70

 
78

Property and equipment, gross
1,222

 
1,055

Accumulated depreciation
(769
)
 
(707
)
Total property and equipment, net
$
453

 
$
348


Other Assets
 
September 28,
2019
 
December 29,
2018
 
(In millions)
Software technology and licenses, net
$
220

 
$
226

Other
115

 
95

Total other assets
$
335

 
$
321


Accrued Liabilities
 
September 28,
2019
 
December 29,
2018
 
(In millions)
Accrued compensation and benefits
$
212

 
$
236

Marketing programs and advertising expenses
327

 
275

Software technology and licenses payable
43

 
28

Other
255

 
244

Total accrued liabilities
$
837

 
$
783


Other Current Liabilities
 
September 28,
2019
 
December 29,
2018
 
(In millions)
Unearned revenue
$
5

 
$
11

Operating lease liabilities
38

 
—

Other
6

 
13

Total other current liabilities
$
49

 
$
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
 
Nine Months Ended
 
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
 
(In millions)
Beginning balance
$
1

 
$
67

 
$
11

 
$
85

Unearned revenue
4

 
37

 
5

 
124

Revenue recognized during the period
—

 
(86
)
 
(11
)
 
(186
)
Other
—

 
(15
)
 
—

 
(20
)
Ending balance
$
5

 
$
3

 
$
5

 
$
3


Revenue allocated to remaining performance obligations that are unsatisfied (or partially unsatisfied) as of September 28, 2019 is $523 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 $220 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.