Balance Sheet Components

3 Months Ended

Apr. 26, 2020

Notes to financial statements [Abstract]

Certain balance sheet components are as follows:


	April 26,		January 26,
	2020		2020
Inventories:	(In millions)
Raw materials	$	341	$	249
Work in-process	287		265
Finished goods	500		465
Total inventories	$	1,128	$	979


	April 26,		January 26,
	2020		2020
Accrued and Other Current Liabilities:	(In millions)
Customer program accruals	$	444	$	462
Deferred revenue (1)	174		141
Accrued payroll and related expenses	164		185
Operating lease liabilities	100		91
Licenses and royalties	78		66
Taxes payable	74		61

Product warranty and return provisions	25		24
Professional service fee	20		18








Other	63		49
Total accrued and other current liabilities	$	1,142	$	1,097

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


	April 26,		January 26,
	2020		2020
Other Long-Term Liabilities:	(In millions)
Income tax payable (1)	$	535	$	528
Licenses payable	84		110
Deferred revenue (2)	67		60
Deferred income tax liability	32		29
Employee benefits liability	23		22

Other	33		26
Total other long-term liabilities	$	774	$	775

(1) As of April 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 $185 million and related interest and penalties of $33 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 2021 and 2020:


	April 26,		April 28,
	2020		2019
	(In millions)
Balance at beginning of period	$	201	$	138
Deferred revenue added during the period	110		49
Revenue recognized during the period	(70)		(53)
Balance at end of period	$	241	$	134

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 April 26, 2020, the amount of our remaining performance obligations that has not been recognized as revenue was $389 million, of which we expect to recognize approximately 47% 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.