Quarterly report pursuant to Section 13 or 15(d)

Contract Liabilities

Contract Liabilities
3 Months Ended
Mar. 27, 2021
Revenue from Contract with Customer [Abstract]  
Contract Liabilities
Note 4 : Contract Liabilities
Contract liabilities consist of prepayments received from customers on long-term prepaid supply agreements toward future product delivery and other revenue deferrals from regular ongoing business activity. Contract liabilities were $396 million as of March 27, 2021 ($1.9 billion as of December 26, 2020).
The following table shows the changes in contract liability balances relating to long-term prepaid supply agreements during the first three months of 2021:
(In Millions)
Prepaid supply agreements balance as of December 26, 2020 $ 1,625 
Concession payment (950)
Prepaids utilized (616)
Prepaid supply agreements balance as of March 27, 2021 $ 59 
During the first quarter of 2021, we settled an agreement with our largest prepaid customer whose prepayment balance made up $1.6 billion of our contract liability balance as of December 26, 2020. We returned $950 million to the customer and recognized $584 million in revenue during the quarter for having completed performance of the prepaid supply agreement. The prepaid supply agreement is excluded from the NAND memory business and is recorded as Corporate revenue in the "all other" category presented in "Note 2: Operating Segments" within Notes to Consolidated Condensed Financial Statements.