Revenue and Customer Contract Liabilities

6 Months Ended

Mar. 04, 2021

Revenue from Contract with Customer [Abstract]

Revenue and Customer Contract Liabilities

Revenue and Customer Contract Liabilities

Revenue by Technology

	Quarter ended				Six months ended
	March 4, 2021		February 27, 2020		March 4, 2021		February 27, 2020
DRAM	$	4,444	$	3,083	$	8,500	$	6,552
NAND	1,650		1,514		3,224		2,936
Other (primarily 3D XPoint memory and NOR)	142		200		285		453
	$	6,236	$	4,797	$	12,009	$	9,941

See “Segment and Other Information” for disclosure of disaggregated revenue by market segments.

Contract Liabilities

Our contract liabilities from customer advances are for advance payments received from customers to secure product in future periods. Other contract liabilities consist of amounts received in advance of satisfying performance obligations. These balances are reported within other current liabilities and other noncurrent liabilities. The following table presents contract liabilities:

As of	March 4, 2021		September 3, 2020
Contract liabilities from customer advances	$	43	$	40
Other contract liabilities	22		25
	$	65	$	65

Revenue recognized during the first six months of 2021 from the ending balance of 2020 included $43 million from meeting performance obligations of other contract liabilities and shipments against customer advances.

Revenue is primarily recognized at a point in time when control of the promised goods is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods. Substantially all contracts with our customers are short-term in duration at fixed, negotiated prices with payment generally due shortly after delivery. From time to time, we have contracts with initial terms that include performance obligations that extend, in some cases, beyond one year. As of March 4, 2021, we expect future revenue related to these longer-term contracts of approximately $291 million, of which approximately 92% relates to performance obligations and product shipments we expect to satisfy within the next 12 months and 8% beyond 12 months.

As of March 4, 2021 and September 3, 2020, other current liabilities included $485 million and $466 million, respectively, for estimates of consideration payable to customers, including estimates for pricing adjustments and returns.