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Variable Interest Entities (Tables)

6 Months Ended

12 Months Ended

Jun. 26, 2021

Dec. 26, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The following table reflects the balance sheet of FTW that is consolidated within the condensed consolidated balance sheets, including Receivable from Parent, net and McAfee Corp.’s interest in the variable interest entity (“VIE”) that are eliminated upon consolidation.


(in millions)	December 26, 2020			June 26, 2021
Assets
Current assets:
Cash and cash equivalents	$	231		$	416
Accounts receivable, net		102			95
Deferred costs		137			163
Other current assets		42			44
Current assets of discontinued operations		402			317

Total current assets		914			1,035
Property and equipment, net		115			103
Goodwill		1,018			1,018
Identified intangible assets, net		729			631
Deferred tax assets		25			25
Receivable from Parent, net		46			—
Other long-term assets		67			93
Long-term assets of discontinued operations		2,560			2,528

Total assets	$	5,474		$	5,433

Liabilities and deficit
Current liabilities:
Accounts payable and other current liabilities	$	211		$	236
Accrued compensation and benefits		179			117
Accrued marketing		118			94
Income taxes payable		14			18
Long-term debt, current portion		44			44
Lease liabilities, current portion		10			9
Liability to Parent, net		—			3
Deferred revenue		823			926
Current liabilities of discontinued operations		970			925

Total current liabilities		2,369			2,372
Long-term debt, net		3,943			3,904
Deferred tax liabilities		5			7
Other long-term liabilities		153			126
Deferred revenue, less current portion		80			93
Long-term liabilities of discontinued operations		662			609

Total liabilities		7,212			7,111

Members’ deficit:
Deficit attributable to Continuing LLC Owners		(1,092	)		(1,041	)
Deficit attributable to McAfee Corp.		(646	)		(637	)

Total deficit		(1,738	)		(1,678	)

Total liabilities and deficit	$	5,474		$	5,433

The following table reflects the balance sheet of FTW that is consolidated within the consolidated balance sheets, including Receivable from Parent, net and McAfee Corp.’s interest in the variable interest entity (“VIE”) that are eliminated upon consolidation.

The consolidated balance sheet as of December 28, 2019 and for periods prior to the IPO and the Reorganization Transactions is the balance sheet of FTW as the predecessor to the Company for accounting and reporting purposes and, therefore, 2019 is not presented below.


(in millions)	December 26, 2020
Assets
Current assets:
Cash and cash equivalents	$	231
Accounts receivable, net		102
Deferred costs		137
Other current assets		42
Current assets of discontinued operations		402

Total current assets		914
Property and equipment, net		115
Goodwill		1,018
Identified intangible assets, net		729
Deferred tax assets		25
Receivable from Parent, net		46
Other long-term assets		67
Long-term assets of discontinued operations		2,560

Total assets	$	5,474

Liabilities and deficit
Current liabilities:
Accounts payable and other current liabilities	$	211
Accrued compensation and benefits		179
Accrued marketing		118
Income taxes payable		14
Long-term debt, current portion		44
Lease liabilities, current portion		10
Liability to parent		—
Deferred revenue		823
Current liabilities of discontinued operations		970

Total current liabilities		2,369
Long-term debt, net		3,943
Deferred tax liabilities		5
Other long-term liabilities		153
Deferred revenue, less current portion		80
Long-term liabilities of discontinued operations		662

Total liabilities		7,212

Members’ deficit:
Deficit attributable to Continuing LLC Owners		(1,092	)
Deficit attributable to McAfee Corp.		(646	)

Total deficit		(1,738	)

Total liabilities and deficit	$	5,474

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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