v3.22.4
Balance Sheet Components
 12 Months Ended
Jan. 29, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components Balance Sheet Components
Certain balance sheet components are as follows:
 January 29,
2023		January 30,
2022
(In millions)
Inventories (1):
Raw materials$2,430 $791 
Work in-process466 692 
Finished goods2,263 1,122 
Total inventories$5,159 $2,605 
(1) In fiscal years 2023 and 2022, we recorded an inventory reserve expense of approximately $1.04 billion and $173 million in cost of revenue, respectively.
 January 29,
2023		January 30,
2022		Estimated
Useful Life
(In millions)(In years)
Property and Equipment:
Land$218 $218 (A)
Buildings, leasehold improvements, and furniture1,598 874 (B)
Equipment, compute hardware, and software4,303 2,852 
3-5
Construction in process382 737 (C)
Total property and equipment, gross6,501 4,681  
Accumulated depreciation and amortization(2,694)(1,903) 
Total property and equipment, net$3,807 $2,778  
(A)Land is a non-depreciable asset.
(B)The estimated useful lives of our buildings are up to thirty years. 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 2023, 2022, and 2021 was $844 million, $611 million, and $486 million, respectively.
Accumulated amortization of leasehold improvements and finance leases was $327 million and $265 million as of January 29, 2023 and January 30, 2022, respectively.
Property, equipment and intangible assets acquired by assuming related liabilities during fiscal years 2023, 2022, and 2021 were $374 million, $258 million, and $157 million, respectively.
 January 29,
2023		January 30,
2022
Other assets:(In millions)
Prepaid supply agreements$2,989 $1,747 
Prepaid royalties387 409 
Investment in non-affiliated entities299 266 
Advanced consideration for acquisition (1)— 1,353 
Other145 66 
Total other assets$3,820 $3,841 
(1)Refer to Note 2 - Business Combination for further details on the Arm acquisition.
 January 29,
2023		January 30,
2022
(In millions)
Accrued and Other Current Liabilities:
Customer program accruals$1,196 $1,000 
Excess inventory purchase obligations (1)954 196 
Accrued payroll and related expenses530 409 
Taxes payable467 132 
Deferred revenue (2)354 300 
Operating leases176 144 
Other443 371 
Total accrued and other current liabilities$4,120 $2,552 
(1)In fiscal years 2023 and 2022, we recorded an expense of approximately $1.13 billion and $181 million, respectively, in cost of revenue for inventory purchase obligations in excess of our current demand projections, and cancellation and underutilization penalties.
(2)Deferred revenue primarily includes customer advances and deferrals related to license and development arrangements, support for hardware and software, and cloud services.
 January 29,
2023		January 30,
2022
(In millions)
Other Long-Term Liabilities:
Income tax payable (1)$1,204 $980 
Deferred income tax247 245 
Deferred revenue (2)218 202 
Licenses payable181 77 
Other63 49 
Total other long-term liabilities$1,913 $1,553 
(1)Income tax payable is comprised of the long-term portion of the one-time transition tax payable, unrecognized tax benefits, and related interest and penalties.
(2)Deferred revenue primarily includes deferrals related to support for hardware and software.
Deferred Revenue
The following table shows the changes in deferred revenue during fiscal years 2023 and 2022.
 January 29,
2023		January 30,
2022
(In millions)
Balance at beginning of period$502 $451 
Deferred revenue added during the period830 821 
Addition due to business combinations— 8 
Revenue recognized during the period(760)(778)
Balance at end of period$572 $502 
Revenue related to remaining performance obligations represents the contracted license and development arrangements and support for hardware and software. This includes deferred revenue currently recorded and amounts that will be invoiced in future periods. As of January 29, 2023, $652 million of revenue related to
performance obligations had not been recognized, of which we expect to recognize approximately 47% over the next twelve months and the remainder thereafter. This excludes revenue related to performance obligations for contracts with a length of one year or less.