Revenue and Customer Contract Liabilities

12 Months Ended

Sep. 02, 2021

Revenue from Contract with Customer [Abstract]

Revenue and Customer Contract Liabilities

Revenue and Customer Contract Liabilities

Revenue by Technology

Revenue by technology is presented in the table below:

For the year ended	2021		2020		2019
DRAM	$	20,039	$	14,510	$	16,841
NAND	7,007		6,131		5,355
Other (primarily 3D XPoint memory and NOR)	659		794		1,210
	$	27,705	$	21,435	$	23,406

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 amounts for 2019 in the table above have been conformed to the current period presentation.

See “Segment and Other Information” for disclosure of disaggregated revenue by market segment.

Customer Contract Liabilities

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 recognized during 2021 from the ending balance of 2020 included $64 million from meeting performance obligations of other contract liabilities and shipments against customer advances. The following table presents contract liabilities:

As of	2021		2020
Contract liabilities from customer advances	$	74	$	40
Other contract liabilities	—		25
	$	74	$	65

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 beyond one year. As of September 2, 2021, our future performance obligations were $117 million, substantially all of which are expected to be recognized as revenue within one year.

As of September 2, 2021 and September 3, 2020, other current liabilities included $846 million and $466 million for estimates of consideration payable to customers, respectively, including estimates for pricing adjustments and returns.