Contract Liabilities

9 Months Ended

Sep. 26, 2020

Revenue from Contract with Customer [Abstract]

Contract Liabilities

NOTE 4 : CONTRACT LIABILITIES

(In Millions)	Sep 26, 2020		Dec 28, 2019
Prepaid supply agreements	$	1,714	$	1,805
Other	264		236
Total contract liabilities	$	1,978	$	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 ($597 million as of September 26, 2020 and $673 million as of December 28, 2019) 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 nine months of 2020:

(In Millions)
Prepaid supply agreements balance as of December 28, 2019	$	1,805
Additions	70
Prepayments utilized	(161)
Prepaid supply agreements balance as of September 26, 2020	$	1,714

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.