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

Jul. 01, 2017

Balance Sheet Related Disclosures [Abstract]

Accounts Receivable, net

As of July 1, 2017 and December 31, 2016, Accounts receivables, net included unbilled accounts receivables of $45 million and $37 million, respectively. Unbilled accounts receivable represent revenue recognized but not billed as payments are deferred by customers until certain contractual milestones are met. Substantially all unbilled accounts receivable are expected to be billed and collected within twelve months.

Inventories



	July 1, 2017		December 31, 2016
	(In millions)
Raw materials	$	26	$	11
Work in process	566		564
Finished goods	241		176
Total inventories, net	$	833	$	751

Property, Plant and Equipment



	July 1, 2017			December 31, 2016
	(In millions)
Leasehold improvements	$	150		$	148
Equipment	743			714
Construction in progress	37			19
Property, plant and equipment, gross	930			881
Accumulated depreciation and amortization	(730		)	(717		)
Total property, plant and equipment, net	$	200		$	164

The Company incurs costs for the fabrication of masks used by its foundry partners to manufacture its products. Beginning the first fiscal quarter of 2017, the Company capitalizes mask costs that are expected to be utilized in production manufacturing as the Company’s product development process has become more predictable and thus supports capitalization of the mask. The capitalized mask costs begin depreciating to Cost of Sales once the products go into production, on a straight-line basis over the estimated useful life of two years. Previously mask sets were expensed to research and development.

Other Assets



	July 1, 2017		December 31, 2016
	(In millions)
Software technology and licenses, net	$	253	$	232
Other	59		47
Total other assets	$	312	$	279

Accrued Liabilities



	July 1, 2017		December 31, 2016
	(In millions)
Accrued compensation and benefits	$	121	$	116
Marketing programs and advertising expenses	110		102
Software technology and licenses payable	53		24
Other	146		149
Total accrued liabilities	$	430	$	391