Contract Liabilities

6 Months Ended

Jun. 27, 2020

Revenue from Contract with Customer [Abstract]

Contract Liabilities [Text Block]

NOTE 4 : CONTRACT LIABILITIES

(In Millions)	Jun 27, 2020		Dec 28, 2019
Prepaid supply agreements	$	1,644	$	1,805
Other	279		236
Total contract liabilities	$	1,923	$	2,041

Contract liabilities are primarily related to prepayments received from customers on long-term prepaid supply agreements toward future NSG product delivery. The short-term portion of contract liabilities is reported on the Consolidated Condensed Balance Sheets within other accrued liabilities.

The following table shows the changes in contract liability balances relating to long-term prepaid supply agreements during the first six months of 2020:

(In Millions)
Prepaid supply agreements balance as of December 28, 2019	$	1,805
Prepayments utilized	(161)
Prepaid supply agreements balance as of June 27, 2020	$	1,644

During the second quarter of 2020, we issued a contract termination notification for breach to our largest prepaid supply customer with a $1.6 billion contract liability balance. The timing and amount of future anticipated revenue, or reversal of any contract liability balance, resulting from contract termination may vary due to ongoing customer negotiations.