Balance Sheet Components

6 Months Ended

Jul. 26, 2020

Notes to financial statements [Abstract]

Balance Sheet Components

Balance Sheet Components 

Certain balance sheet components are as follows:

	July 26,		January 26,
	2020		2020
Inventories:	(In millions)
Raw materials	$	320	$	249
Work in-process	516		265
Finished goods	565		465
Total inventories	$	1,401	$	979

	July 26,		January 26,
	2020		2020
Accrued and Other Current Liabilities:	(In millions)
Customer program accruals	$	506	$	462
Accrued payroll and related expenses	322		185
Deferred revenue (1)	222		141
Operating leases	124		91
Licenses and royalties	101		66
Coupon interest on debt obligations	74		20
Taxes payable	52		61
Product warranty and return provisions	31		24
Professional service fee	20		18
Other	65		29
Total accrued and other current liabilities	$	1,517	$	1,097

(1) Deferred revenue primarily includes customer advances and deferrals related to license and development arrangements and post contract customer support, or PCS.

	July 26,		January 26,
	2020		2020
Other Long-Term Liabilities:	(In millions)
Income tax payable (1)	$	721	$	528
Deferred income tax (2)	274		29
Deferred revenue (3)	120		60
Licenses payable	89		110
Employee benefits	38		22
Other	43		26
Total other long-term liabilities	$	1,285	$	775

(1) As of July 26, 2020, income tax payable represents the long-term portion of the one-time transition tax payable of $284 million, unrecognized tax benefits of $245 million, related interest and penalties of $41 million, and other foreign long-term tax payable of $151 million.

(2) Deferred income tax primarily relates to acquired intangible assets.

(3) Deferred revenue primarily includes deferrals related to PCS.

Deferred Revenue

The following table shows the changes in deferred revenue during the first half of fiscal years 2021 and 2020:

	July 26,		July 28,
	2020		2019
	(In millions)
Balance at beginning of period	$	201	$	138
Deferred revenue added during the period	213		161
Addition due to business combinations	75		—
Revenue recognized during the period	(147)		(118)
Balance at end of period	$	342	$	181

Revenue related to remaining performance obligations represents the remaining contracted license, development arrangements and PCS that has not been recognized. This includes related deferred revenue currently recorded and amounts that will be invoiced in future periods. As of July 26, 2020, the amount of our remaining performance obligations that has not been recognized as revenue was $670 million, of which we expect to recognize approximately 40% as revenue over the next twelve months and the remainder thereafter. This amount excludes the value of remaining performance obligations for contracts with an original expected length of one year or less.