Revenue and Customer Contract Liabilities

3 Months Ended

Nov. 28, 2024

Revenue from Contract with Customer [Abstract]

Revenue and Customer Contract Liabilities

Revenue and Customer Contract Liabilities

Revenue by Technology

Three months ended	November 28, 2024		November 30, 2023
DRAM	$	6,400	$	3,427
NAND	2,241		1,230
Other (primarily NOR)	68		69
	$	8,709	$	4,726

See “Item 1. Financial Statements – Notes to Consolidated Financial Statements – Segment and Other Information” for disclosure of disaggregated revenue by market segment.

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 beyond one year. As of November 28, 2024, our future performance obligations beyond one year were $141 million, which included customer prepayments and other contract liabilities.

As of November 28, 2024 and August 29, 2024, customer prepayments made to secure product supply in future periods and other contract liabilities were $614 million and $907 million, respectively, of which $473 million and $766 million were reported in other current liabilities, respectively. The remainder of the customer prepayments and other contract liabilities were in other noncurrent liabilities. Revenue recognized during the first three months of 2025 from the beginning balance as of August 29, 2024 included $301 million from shipments against customer prepayments and other contract liabilities.

As of November 28, 2024 and August 29, 2024, other current liabilities included $858 million and $718 million, respectively, for estimates of consideration payable to customers including estimates for pricing adjustments and returns.