Annual report pursuant to Section 13 and 15(d)

Contract Liabilities

v3.19.3.a.u2
Contract Liabilities
 12 Months Ended
Dec. 28, 2019
Revenue from Contract with Customer [Abstract]  
Contract Liabilities
NOTE 6 :
CONTRACT LIABILITIES
(In Millions)
 
Dec 28,
2019
 
Dec 29,
2018
Prepaid supply agreements
 
$
1,805

 
$
2,587

Other
 
236

 
122

Total contract liabilities
 
$
2,041

 
$
2,709


Contract liabilities are primarily related to prepayments received from customers on long-term prepaid supply agreements toward future NSG product delivery. The short-term portion of contract liabilities is reported on the Consolidated Balance Sheets within other accrued liabilities.
The following table shows the changes in contract liability balances relating to long-term prepaid supply agreements during 2019:
(In Millions)
 
 
Prepaid supply agreements balance as of December 29, 2018
 
$
2,587

Prepaids utilized
 
(782
)
Prepaid supply agreements balance as of December 28, 2019
 
$
1,805


As new long-term 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.
We expect our remaining contract liability balance of $1.8 billion to be recognized into revenue over the next 4 years. The timing and amount of future anticipated revenue may vary from our expectations due to changes in supply, demand, and market pricing.