Intel Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Contract Liabilities

Contract Liabilities

3 Months Ended

Mar. 28, 2020

Revenue from Contract with Customer [Abstract]



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.