Quarterly report pursuant to Section 13 or 15(d)

Contract Liabilities

v3.20.1
Contract Liabilities
3 Months Ended
Mar. 28, 2020
Revenue from Contract with Customer [Abstract]  
Contract Liabilities [Text Block]
NOTE 4 :
CONTRACT LIABILITIES

(In Millions)
 
Mar 28,
2020
 
Dec 28,
2019
Prepaid supply agreements
 
$
1,718

 
$
1,805

Other
 
271

 
236

Total contract liabilities
 
$
1,989

 
$
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 is reported on the Consolidated Condensed Balance Sheets within other accrued liabilities.
The following table shows the changes in contract liability balances relating to long-term prepaid supply agreements during the first three months of 2020:
(In Millions)
 
 
Prepaid supply agreements balance as of December 28, 2019
 
$
1,805

Prepayments utilized
 
(87
)
Prepaid supply agreements balance as of March 28, 2020
 
$
1,718


If 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.
The timing and amount of future anticipated revenues from these agreements may vary from our expectations due to changes in supply, demand, and market pricing.