| Balance Sheet Components Certain balance sheet components are as follows: | | | | | | | | | | January 26,
2020 | | January 27,
2019 | | (In millions) | Inventories: | | | | Raw materials | $ | 249 |
| | $ | 613 |
| Work in-process | 265 |
| | 238 |
| Finished goods | 465 |
| | 724 |
| Total inventories | $ | 979 |
| | $ | 1,575 |
|
| | | | | | | | | | | | January 26,
2020 | | January 27,
2019 | | Estimated Useful Life | | (In millions) | | (In years) | Property and Equipment: | | | | | | Land | $ | 218 |
| | $ | 218 |
| | (A) | Building | 340 |
| | 339 |
| | 25-30 | Test equipment | 532 |
| | 516 |
| | 3-5 | Computer equipment | 621 |
| | 522 |
| | 3-5 | Leasehold improvements | 293 |
| | 291 |
| | (B) | Software and licenses | 287 |
| | 109 |
| | 3-5 | Office furniture and equipment | 74 |
| | 69 |
| | 5 | Construction in process | 320 |
| | 107 |
| | (C) | Total property and equipment, gross | 2,685 |
| | 2,171 |
| | | Accumulated depreciation and amortization | (1,011 | ) | | (767 | ) | | | Total property and equipment, net | $ | 1,674 |
| | $ | 1,404 |
| | |
| | (A) | Land is a non-depreciable asset. |
| | (B) | Leasehold improvements and capital leases are amortized based on the lesser of either the asset’s estimated useful life or the expected lease term. |
| | (C) | Construction in process represents assets that are not available for their intended use as of the balance sheet date. |
Depreciation expense for fiscal years 2020, 2019, and 2018 was $355 million, $233 million, and $144 million, respectively. Accumulated amortization of leasehold improvements and capital leases was $216 million and $189 million as of January 26, 2020 and January 27, 2019, respectively. | | | | | | | | | | January 26,
2020 | | January 27,
2019 | | (In millions) | Accrued and Other Current Liabilities: | | | | Customer program accruals | $ | 462 |
| | $ | 302 |
| Accrued payroll and related expenses | 185 |
| | 186 |
| Deferred revenue (1) | 141 |
| | 92 |
| Operating lease liabilities | 91 |
| | — |
| Taxes payable | 61 |
| | 91 |
| Licenses payable | 54 |
| | 12 |
| Professional service fees | 18 |
| | 14 |
| Other | 85 |
| | 121 |
| Total accrued and other current liabilities | $ | 1,097 |
| | $ | 818 |
|
| | (1) | Deferred revenue primarily includes customer advances and deferrals related to license and development arrangements and PCS. |
| | | | | | | | | | January 26,
2020 | | January 27,
2019 | | (In millions) | Other Long-Term Liabilities: | | | | Income tax payable (1) | $ | 528 |
| | $ | 513 |
| Licenses payable | 110 |
| | 1 |
| Deferred revenue (2) | 60 |
| | 46 |
| Deferred income tax liability | 29 |
| | 19 |
| Employee benefits liability | 22 |
| | 20 |
| Deferred rent | — |
| | 21 |
| Other | 26 |
| | 13 |
| Total other long-term liabilities | $ | 775 |
| | $ | 633 |
|
| | (1) | As of January 26, 2020, income tax payable represents the long-term portion of the one-time transition tax payable of $317 million, as well as unrecognized tax benefits of $180 million and related interest and penalties of $31 million. |
| | (2) | Deferred revenue primarily includes deferrals related to PCS. |
Deferred Revenue The following table shows the changes in deferred revenue during fiscal years 2020 and 2019. | | | | | | | | | | January 26, | | January 27, | | 2020 | | 2019 | | (In millions) | Balance at beginning of period | $ | 138 |
| | $ | 63 |
| Deferred revenue added during the period | 334 |
| | 344 |
| Revenue recognized during the period | (271 | ) | | (269 | ) | Balance at end of period | $ | 201 |
| | $ | 138 |
|
Revenue related to remaining performance obligations represents the amount of contracted license and development arrangements and PCS that has not been recognized. This includes related deferred revenue currently recorded and amounts that will be invoiced in future periods. As of January 26, 2020, the amount of our remaining performance that has not been recognized as revenue was $364 million, of which we expect to recognize approximately 46% as revenue over the next twelve months and the remainder thereafter. This amount excludes the value of remaining performance obligations for contracts with an original expected length of one year or less.
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