Revenue from Contract with Customers

6 Months Ended

Jun. 26, 2021

Revenue From Contract With Customer [Abstract]

Revenue from Contracts with Customers

NOTE 4: REVENUE FROM CONTRACTS WITH CUSTOMERS

Deferred Revenue

During the six months ended June 26, 2021, we recognized $553 million from our deferred revenue balance as of December 26, 2020. During the six months ended June 27, 2020, we recognized $483 million in revenue from our deferred revenue balance as of December 28, 2019.

Transaction Price Allocated to the Remaining Performance Obligations

As of June 26, 2021, we have $1,019 million in estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied), which includes deferred revenue and amounts that will be billed and recognized as revenue in future periods. We expect to recognize approximately 91% as revenue over the next 12 months, 9% in next 13 to 36 months.

Net Revenue by Geographic Region

Net revenue by geographic region based on the sell-to address of the end-users is as follows:

	Three Months Ended										Six Months Ended
(in millions except percentages)	June 26, 2021		% of Total			June 27, 2020		% of Total			June 26, 2021		% of Total			June 27, 2020		% of Total
Americas	$	309		66.2	%	$	251		65.5	%	$	601		66.1	%	$	482		65.4	%
EMEA		109		23.3	%		90		23.5	%		213		23.4	%		175		23.7	%
APJ		49		10.5	%		42		11.0	%		95		10.5	%		80		10.9	%
Total net revenue	$	467		100.0	%	$	383		100.0	%	$	909		100.0	%	$	737		100.0	%

Note: The Americas include U.S., Canada and Latin America; EMEA includes Europe, Middle East and Africa; APJ includes Asia Pacific and Japan. See Note 8 for individual countries that accounted for more than 10% of net revenue.

Net Revenue by Channel

Direct to Consumer revenue is from customers who transact with us directly through McAfee web properties, including those converted after the trial period of the McAfee product preinstalled on their new PC purchase or converted subsequent to their subscription period purchased from another channel. Indirect revenue is driven by users who purchase directly through a partner inclusive of mobile providers, ISPs, electronics retailers, ecommerce sites, and search providers.

Net revenue by channel of the end-users is as follows:

	Three Months Ended										Six Months Ended
(in millions except percentages)	June 26, 2021		% of Total			June 27, 2020		% of Total			June 26, 2021		% of Total			June 27, 2020		% of Total
Direct to Consumer	$	344		73.7	%	$	294		76.8	%	$	673		74.0	%	$	575		78.0	%
Indirect		123		26.3	%		89		23.2	%		236		26.0	%		162		22.0	%
Total net revenue	$	467		100.0	%	$	383		100.0	%	$	909		100.0	%	$	737		100.0	%