CONTRACT ASSETS AND CONTRACT LIABILITIES

12 Months Ended

Dec. 29, 2023

Revenue from Contract with Customer [Abstract]

CONTRACT ASSETS AND CONTRACT LIABILITIES

NOTE 3: CONTRACT ASSETS AND CONTRACT LIABILITIES

Contract assets and contract liabilities are summarized below:

(In millions)	December 29, 2023		December 30, 2022
Contract assets(1)	$	3,196	$	2,987
Contract liabilities, current(2)	(1,900)		(1,400)
Contract liabilities, non-current(3)	(94)		(117)
Net contract assets	$	1,202	$	1,470

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(1)Includes approximately $385 million of AR contract assets at December 29, 2023.

(2)Includes approximately $319 million of AR contract liabilities at December 29, 2023.

(3)The non-current portion of contract liabilities is included as a component of the “Other long-term liabilities” line item in our Consolidated Balance Sheet.

The components of contract assets are summarized below:

(In millions)	December 29, 2023		December 30, 2022
Unbilled contract receivables, gross	$	6,649	$	4,629
Unliquidated progress payments and advances	(3,453)		(1,642)
Contract assets	$	3,196	$	2,987

Contract assets and liabilities as of December 29, 2023 and December 30, 2022 were impacted primarily by the timing of contractual billing milestones. In fiscal 2023, 2022 and 2021, we recognized $1.25 billion, $1.06 billion and $930 million, respectively, of revenue related to contract liabilities that were outstanding at the end of the respective prior fiscal year.