Balance Sheet Components

6 Months Ended

Jul. 28, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

Balance Sheet Components 

Three customers accounted for 23%, 15%, and 11% of our accounts receivable balance as of July 28, 2024. Two customers accounted for 24% and 11% of our accounts receivable balance as of January 28, 2024.

Certain balance sheet components are as follows:

	Jul 28, 2024		Jan 28, 2024
Inventories:	(In millions)
Raw materials	$	1,895	$	1,719
Work in process	2,111		1,505
Finished goods	2,669		2,058
Total inventories (1)	$	6,675	$	5,282

(1)    During the second quarter of fiscal years 2025 and 2024, we recorded an inventory provision of $345 million and $343 million, respectively and during the first half of fiscal years 2025 and 2024, we recorded an inventory provision of $555 million and $448 million, respectively, in cost of revenue.

	Jul 28, 2024		Jan 28, 2024
Other Assets (Long Term):	(In millions)
Investments in non-affiliated entities	$	1,819	$	1,546
Prepaid supply and capacity agreements (1)	1,313		2,458
Prepaid royalties	352		364
Prepaid tax	331		2
Other	186		130
Total other assets	$	4,001	$	4,500

(1)    As of July 28, 2024 and January 28, 2024, there were $3.3 billion and $2.5 billion of short-term prepaid supply and capacity agreements included in short term Prepaid expenses and other current assets, respectively.

	Jul 28, 2024		Jan 28, 2024
Accrued and Other Current Liabilities:	(In millions)
Customer program accruals	$	3,584	$	2,081
Excess inventory purchase obligations (1)	2,051		1,655
Taxes payable	1,173		296
Deferred revenue (2)	948		764
Accrued payroll and related expenses	941		675
Product warranty and return provisions	868		415
Operating leases	250		228
Licenses and royalties	154		182
Unsettled share repurchases	130		187
Other	190		199
Total accrued and other current liabilities	$	10,289	$	6,682

(1)    During the second quarter of fiscal years 2025 and 2024, we recorded $563 million and $232 million, respectively and during the first half of fiscal years 2025 and 2024, we recorded $746 million and $261 million, respectively, in cost of revenue.

(2)    Deferred revenue includes customer advances and unearned revenue related to hardware support, software support, cloud services, and license and development arrangements. The balance as of July 28, 2024 and January 28, 2024 included $340 million and $233 million of customer advances, respectively.

	Jul 28, 2024		Jan 28, 2024
Other Long-Term Liabilities:	(In millions)
Income tax payable (1)	$	1,670	$	1,361
Deferred revenue (2)	773		573
Deferred income tax	697		462
Other	196		145
Total other long-term liabilities	$	3,336	$	2,541

(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 includes unearned revenue related to hardware support and software support.

Deferred Revenue

The following table shows the changes in short and long term deferred revenue during the first half of fiscal years 2025 and 2024:

	Six Months Ended
	Jul 28, 2024		Jul 30, 2023
	(In millions)
Balance at beginning of period	$	1,337	$	572
Deferred revenue additions	1,478		713
Revenue recognized	(1,094)		(556)
Balance at end of period	$	1,721	$	729

We recognized revenue of $323 million and $199 million for the first half of fiscal years 2025 and 2024 respectively, that were included in the prior year end deferred revenue balances.

For revenue contracts with a length greater than one year, $1.3 billion is included in deferred revenue and $123 million has not yet been billed nor recognized as revenue as of July 28, 2024. Approximately 37% of this combined amount will be recognized as revenue over the next twelve months.