Supplemental Balance Sheet Information

3 Months Ended

Apr. 01, 2023

Balance Sheet Related Disclosures [Abstract]

Supplemental Balance Sheet Information

Supplemental Financial Statement Information

Accounts Receivable, net

As of April 1, 2023 and December 31, 2022, Accounts receivable, net included unbilled accounts receivable of $1.1 billion. Unbilled accounts receivable primarily represents work completed on development services and on custom products for which revenue has been recognized but not yet invoiced. All unbilled accounts receivable are expected to be billed and collected within 12 months.

Inventories	April 1, 2023		December 31, 2022
	(In millions)
Raw materials	$	241	$	231
Work in process	3,129		2,648
Finished goods	865		892
Total inventories	$	4,235	$	3,771

Prepaid Expenses and Other Current Assets	April 1, 2023		December 31, 2022
	(In millions)
Prepaid supply agreements	$	867	$	673
Other	575		592
Total prepaid expenses and other current assets	$	1,442	$	1,265

Prepaid supply agreements relate to the short-term portion of payments made to vendors to secure long-term supply capacity.

Property and Equipment, net	April 1, 2023		December 31, 2022
	(In millions)
Land	$	120	$	120
Building and leasehold improvements	653		594
Equipment	2,173		2,163
Construction in progress	147		143
Property and equipment, gross	3,093		3,020
Accumulated depreciation	(1,593)		(1,507)
Total property and equipment, net	$	1,500	$	1,513

Accrued Liabilities	April 1, 2023		December 31, 2022
	(In millions)
Accrued marketing programs	$	672	$	876
Accrued compensation and benefits	708		701
Customer program liabilities	1,006		859
Other accrued and current liabilities	781		641
Total accrued liabilities	$	3,167	$	3,077

Revenue

Revenue allocated to remaining performance obligations that are unsatisfied (or partially unsatisfied) include amounts received from customers and amounts that will be invoiced and recognized as revenue in future periods for development services, IP licensing and product revenue. As of April 1, 2023, the aggregate transaction price allocated to remaining performance obligations under contracts with an original expected duration of more than one year was $346 million, of which $263 million is expected to be recognized in the next 12 months. The revenue allocated to remaining performance obligations does not include amounts which have an original expected duration of one year or less.

Revenue recognized over time associated with custom products and development services accounted for 29% and 21% of the Company’s revenue for the three months ended April 1, 2023 and March 26, 2022, respectively