Annual report pursuant to Section 13 and 15(d)

Supplemental Balance Sheet Information

v3.19.3.a.u2
Supplemental Balance Sheet Information
 12 Months Ended
Dec. 28, 2019
Balance Sheet Related Disclosures [Abstract]  
Supplemental Balance Sheet Information Supplemental Balance Sheet Information
Accounts Receivable, net
As of December 28, 2019 and December 29, 2018, Accounts receivable, net included unbilled accounts receivable of $197 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 receivables are expected to be billed and collected within 12 months.
Inventories, net
 
December 28,
2019
 
December 29,
2018
 
(In millions)
Raw materials
$
94

 
$
134

Work in process
691

 
354

Finished goods
197

 
357

Total inventories, net
$
982

 
$
845


Property and Equipment, net
 
December 28,
2019
 
December 29,
2018
 
(In millions)
Leasehold improvements
$
203

 
$
179

Equipment
951

 
798

Construction in progress
114

 
78

Property and equipment, gross
1,268

 
1,055

Accumulated depreciation and amortization
(768
)
 
(707
)
Total property and equipment, net
$
500

 
$
348


Depreciation expense for 2019, 2018 and 2017 was $142 million, $94 million and $77 million, respectively.
Other Assets
 
December 28,
2019
 
December 29,
2018
 
(In millions)
Software and technology licenses, net
$
210

 
$
226

Other
169

 
95

Total other assets
$
379

 
$
321


During 2018, the Company recorded an impairment charge in Cost of sales of $45 million on technology licenses that are no longer being used.
Accrued Liabilities
 
December 28,
2019
 
December 29,
2018
 
(In millions)
Accrued compensation and benefits
$
285

 
$
236

Marketing programs and advertising expenses
454

 
275

Other accrued and current liabilities
345

 
272

Total accrued liabilities
$
1,084

 
$
783


Other Current Liabilities
 
December 28,
2019
 
December 29,
2018
 
(In millions)
Unearned revenue
$
2

 
$
11

Operating lease liabilities
43

 
—

Other
29

 
13

Total other current liabilities
$
74

 
$
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:
 
December 28,
2019
 
December 29,
2018
 
(In millions)
Beginning balance
$
11

 
$
85

Unearned revenue
43

 
132

Revenue recognized during the period
(52
)
 
(186
)
Other
—

 
(20
)
Ending balance
$
2

 
$
11


Revenue allocated to remaining performance obligations that are unsatisfied (or partially unsatisfied) as of December 28, 2019 is $456 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 $188 million in the next 12 months.
The revenue allocated to remaining performance obligations did not include amounts which have an original expected duration of less than one year.