Revenue and Contract Liabilities

9 Months Ended

May 28, 2020

Revenue from Contract with Customer [Abstract]

Revenue and Contract Liabilities

Revenue and Contract Liabilities

Revenue by technology is presented in the table below. (See “Segment and Other Information” for disclosure of disaggregated revenue by market segments.)

	Quarter ended				Nine months ended
	May 28, 2020		May 30, 2019		May 28, 2020		May 30, 2019
DRAM	$	3,587	$	3,398	$	10,139	$	13,442
NAND	1,665		1,104		4,601		4,151
Other (primarily 3D XPoint memory and NOR)	186		286		639		943
	$	5,438	$	4,788	$	15,379	$	18,536

Beginning in 2020, revenues for MCPs and SSDs, which contain both DRAM and NAND, are disaggregated into DRAM and NAND based on the relative values of each component. The three and nine months ended May 30, 2019 in the table above have been conformed to current period presentation.

Our contract liabilities from customer advances are for advance payments received from customers to secure product in future periods. Other contract liabilities consist of amounts received in advance of satisfying performance obligations. These balances are reported within other current liabilities and other noncurrent liabilities. Revenue and interest expense associated with contract liabilities for the time value of advance payments was not significant in any period presented. Contract liabilities were as follows:

As of	May 28, 2020		August 29, 2019
Contract liabilities from customer advances	$	43	$	61
Other contract liabilities	27		69
	$	70	$	130

Revenue recognized during the first nine months of 2020 from the beginning balance as of August 29, 2019 included $79 million from meeting performance obligations of other contract liabilities and shipments against customer advances. Contract liabilities from customer advances also decreased $22 million due to the return of an unutilized customer advance upon expiration of a contract.

Revenue is primarily recognized at a point in time when control of the promised goods is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods. Substantially all contracts with our customers are short-term in duration at fixed, negotiated prices with payment generally due shortly after delivery. From time to time, we have contracts with initial terms that include performance obligations that extend, in some cases, beyond one year. As of May 28, 2020, we expect future revenue related to these longer-term contracts of approximately $600 million, of which approximately 60% relates to performance obligations and product shipments we expect to satisfy within the next 12 months and 40% beyond 12 months.

As of May 28, 2020, other current liabilities included $407 million for estimates of consideration payable to customers, including estimates for pricing adjustments and returns.