Annual report pursuant to Section 13 and 15(d)

Contract Liabilities

v3.20.4
Contract Liabilities
 12 Months Ended
Dec. 26, 2020
Revenue from Contract with Customer [Abstract]  
Contract Liabilities
Note 5 : Contract Liabilities
(In Millions) Dec 26, 2020 Dec 28, 2019
Prepaid supply agreements
 $ 1,625  $ 1,805 
Other 250  236 
Total contract liabilities $ 1,875  $ 2,041 
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 ($508 million as of December 26, 2020 and $673 million as of December 28, 2019) 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 2020:
(In Millions)
Prepaid supply agreements balance as of December 28, 2019 $ 1,805 
Additions 70 
Prepaids utilized (250)
Prepaid supply agreements balance as of December 26, 2020 $ 1,625 
During the second quarter of 2020, we issued a contract termination notification for breach to our largest prepaid supply customer with a $1.6 billion contract liability balance. The timing and amount of future anticipated revenue or reversal of any contract liability balance resulting from contract termination may vary due to ongoing customer negotiations.