Balance Sheet Components

12 Months Ended

Jan. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Certain balance sheet components are as follows:


	January 31, 2021		January 26, 2020

	(In millions)
Inventories:
Raw materials	$	632	$	249
Work in-process	457		265
Finished goods	737		465
Total inventories	$	1,826	$	979


	January 31, 2021		January 26, 2020		Estimated Useful Life

	(In millions)				(In years)
Property and Equipment:
Land	$	218	$	218	(A)
Building	341		340		25-30
Test equipment	782		532		3-5

Computer equipment and software	1,187		908		3-5
Leasehold improvements	385		293		(B)

Office furniture and equipment	86		74		5
Construction in process	558		320		(C)
Total property and equipment, gross	3,557		2,685
Accumulated depreciation and amortization	(1,408)		(1,011)
Total property and equipment, net	$	2,149	$	1,674

(A)Land is a non-depreciable asset.

(B)Leasehold improvements and finance 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 2021, 2020, and 2019 was $486 million, $355 million, and $233 million, respectively.

Accumulated amortization of leasehold improvements and finance leases was $223 million and $216 million as of January 31, 2021 and January 26, 2020, respectively.


	January 31, 2021		January 26, 2020

Other assets:	(In millions)
Advanced consideration for acquisition	$	1,357	$	—
Prepaid royalties	440		1
Investment in non-affiliated entities	144		77
Deposits	136		8
Other	67		32
Total other assets	$	2,144	$	118


	January 31, 2021		January 26, 2020

	(In millions)
Accrued and Other Current Liabilities:
Customer program accruals	$	630	$	462
Accrued payroll and related expenses	297		185
Deferred revenue (1)	288		141
Licenses and royalties	128		66
Operating leases	121		91
Coupon interest on debt obligations	74		20
Taxes payable	61		61
Product warranty and return provisions	39		24



Professional service fees	26		18



Other	61		29
Total accrued and other current liabilities	$	1,725	$	1,097

(1)Deferred revenue primarily includes customer advances and deferrals related to license and development arrangements and PCS.


	January 31, 2021		January 26, 2020

	(In millions)
Other Long-Term Liabilities:
Income tax payable (1)	$	836	$	528
Deferred income tax	241		29
Deferred revenue (2)	163		60
Licenses payable	56		110
Employee benefits	33		22

Other	46		26
Total other long-term liabilities	$	1,375	$	775

(1)As of January 31, 2021, income tax payable represents the long-term portion of the one-time transition tax payable of $284 million, long-term portion of the unrecognized tax benefits of $352 million, related interest and penalties of $43 million, and other foreign long-term tax payable of $157 million.

(2)Deferred revenue primarily includes deferrals related to PCS.

Deferred Revenue

The following table shows the changes in deferred revenue during fiscal years 2021 and 2020.


	January 31, 2021		January 26, 2020

	(In millions)
Balance at beginning of period	$	201	$	138
Deferred revenue added during the period	536		334
Addition due to business combinations	75		—
Revenue recognized during the period	(361)		(271)
Balance at end of period	$	451	$	201

Revenue related to remaining performance obligations represents the remaining contracted license, 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 31, 2021, the amount of our remaining performance that has not been recognized as revenue was $683 million, of which we expect to recognize approximately 44% 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.