Annual report pursuant to Section 13 and 15(d)

Contract Liabilities

v3.10.0.1
Contract Liabilities
 12 Months Ended
Dec. 29, 2018
Revenue from Contract with Customer [Abstract]  
Contract Liabilities
NOTE 6 :
CONTRACT LIABILITIES
(In Millions)
 
Dec 29,
2018
 
Opening Balance as of Dec 31, 2017
Prepaid supply agreements
 
$
2,587

 
$
105

Other
 
122

 
195

Total contract liabilities
 
$
2,709

 
$
300


Contract liabilities are primarily related to partial prepayments received from customers on long-term supply agreements toward future NSG product delivery. As new prepaid supply agreements are entered into and performance obligations are negotiated, this component of the contract liability balance will increase, and as customers purchase product and utilize their prepaid balances, the balance will decrease. The short-term portion of prepayments from supply agreements is reported on the consolidated balance sheets within other accrued liabilities.
The following table shows the changes in contract liability balances relating to prepaid supply agreements during 2018:
(In Millions)
 
 
Prepaid supply agreements balance as of December 31, 2017
 
$
105

Additions and adjustments
 
2,753

Prepaids utilized
 
(271
)
Prepaid supply agreements balance as of December 29, 2018
 
$
2,587


Additions and adjustments in 2018 include a $1.0 billion reclassification from customer deposits previously included in other long-term liabilities. The long-term supply agreements represent $4.6 billion in future anticipated revenues to be recognized ratably over the next five years.