Quarterly report pursuant to Section 13 or 15(d)

Other Financial Statement Details

Other Financial Statement Details
9 Months Ended
Sep. 26, 2020
Other Financial Statement Details [Abstract]  
Other Financial Statement Details
(In Millions)
Sep 26, 2020 Dec 28, 2019
Raw materials
$ 975  $ 840 
Work in process
6,313  6,225 
Finished goods
1,985  1,679 
Total inventories
$ 9,273  $ 8,744 
The components of interest and other, net for each period were as follows:
Three Months Ended Nine Months Ended
(In Millions)
Sep 26, 2020 Sep 28, 2019 Sep 26, 2020 Sep 28, 2019
Interest income
$ 53  $ 114  $ 229  $ 374 
Interest expense
(160) (107) (481) (381)
Other, net
33  (53) (164) (163)
Total interest and other, net
$ (74) $ (46) $ (416) $ (170)
Interest expense in the preceding table is net of $81 million of interest capitalized in the third quarter of 2020 and $251 million in the first nine months of 2020 ($122 million in the third quarter of 2019 and $366 million in the first nine months of 2019).
In August 2020, we entered into ASR agreements with financial institutions under which we paid an aggregate of $10.0 billion and received an aggregate initial share delivery of 166 million shares of our common stock, which were immediately retired. In accordance with the terms of the ASR agreements, the final number of shares to be repurchased and the average price paid per share will be determined upon settlement of the agreements by the end of 2020. The final number of shares to be repurchased will be based on the volume-weighted average price of our common stock over the duration of the ASR agreements, less applicable discounts. Upon settlement, the financial institutions may be required to deliver additional shares of common stock to us, or under certain conditions, we may be required to make a cash payment or deliver shares of common stock, at our election, to one or more of the financial institutions. The unsettled portion of each ASR agreement qualifies as a forward contract indexed to our own stock which has been classified within stockholders’ equity as additional paid in capital. The ASR agreements were entered into pursuant to our existing share repurchase program.