Balance Sheet Components

3 Months Ended

Apr. 28, 2019

Notes to financial statements [Abstract]

Balance Sheet Components

Balance Sheet Components 

Certain balance sheet components are as follows:

	April 28,		January 27,
	2019		2019
Inventories:	(In millions)
Raw materials	$	484	$	613
Work in-process	189		238
Finished goods	753		724
Total inventories	$	1,426	$	1,575

	April 28,		January 27,
	2019		2019
Accrued and Other Current Liabilities:	(In millions)
Customer program accruals	$	263	$	302
Accrued payroll and related expenses	136		186
Taxes payable	107		91
Deferred revenue (1)	85		92
Operating lease liabilities	80		—
Accrued legal settlement costs	25		24
Licenses payable	23		12
Warranty accrual (2)	18		18
Professional service fees	10		14
Coupon interest on debt obligations	7		20
Accrued royalties	6		10
Other	55		49
Total accrued and other current liabilities	$	815	$	818

(1) Deferred revenue primarily includes customer advances and deferrals related to license and development arrangements and post contract customer support, or PCS.

(2) Refer to Note 13 of these Notes to Condensed Consolidated Financial Statements for a discussion regarding warranties.

	April 28,		January 27,
	2019		2019
Other Long-Term Liabilities:	(In millions)
Income tax payable (1)	$	524	$	513
Deferred revenue (2)	49		46
Licenses payable	34		1
Employee benefits liability	21		20
Deferred income tax liability	21		19
Deferred rent	—		21
Other	11		13
Total other long-term liabilities	$	660	$	633

(1) As of April 28, 2019, represents the long-term portion of the one-time transition tax payable of $351 million, as well as unrecognized tax benefits of $151 million and related interest and penalties of $22 million.

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

Deferred Revenue

The following table shows the changes in deferred revenue during the first quarter of fiscal years 2020 and 2019.

	April 28,			April 29,
	2019			2018
	(In millions)
Balance at beginning of period	$	138		$	63
Deferred revenue added during the period	49			86
Revenue recognized during the period	(53		)	(75		)
Balance at end of period	$	134		$	74