Balance Sheet Components (Tables)

12 Months Ended

Jan. 26, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]



	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

Summary of property and equipment



	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.

Summary of accrued and other current liabilities



	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.

Summary of other long-term liabilities



	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.

Schedule of changes in 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.