v3.22.2.2
Balance Sheet Components
 6 Months Ended
Jul. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components Balance Sheet Components 
Certain balance sheet components are as follows:
July 31,January 30,
 20222022
Inventories (1):
(In millions)
Raw materials$1,534 $791 
Work in-process767 692 
Finished goods1,588 1,122 
Total inventories$3,889 $2,605 
(1) During the second quarter of fiscal year 2023, we recorded an inventory reserve expense of approximately $570 million in cost of revenue.

July 31,January 30,
 20222022
Other assets:(In millions)
Prepaid supply agreements$2,523 $1,747 
Prepaid royalties399 409 
Investment in non-affiliated entities307 266 
Advanced consideration for acquisition (1)— 1,353 
Other111 66 
Total other assets$3,340 $3,841 
(1)    Refer to Note 2 - Business Combination for further details on the Arm acquisition.
July 31,January 30,
 20222022
Accrued and Other Current Liabilities:(In millions)
Customer program accruals$1,463 $1,000 
Excess inventory purchase obligations (1)866 196 
Accrued payroll and related expenses421 409 
Deferred revenue (2)359 300 
Product warranty168 46 
Taxes payable158 132 
Other468 469 
Total accrued and other current liabilities$3,903 $2,552 
(1)    During the second quarter of fiscal year 2023, we recorded an expense of approximately $650 million in cost of revenue for inventory purchase obligations in excess of our current demand projections, and cancellation and underutilization penalties.
(2)    Deferred revenue primarily includes customer advances and deferrals related to license and development arrangements, support for hardware and software, and cloud services.
July 31,January 30,
 20222022
Other Long-Term Liabilities:(In millions)
Income tax payable (1)$1,022 $980 
Deferred income tax252 245 
Deferred revenue (2)201 202 
Other134 126 
Total other long-term liabilities$1,609 $1,553 
(1)    As of July 31, 2022, income tax payable represents the long-term portion of the one-time transition tax payable of $188 million, unrecognized tax benefits of $762 million, and related interest and penalties of $72 million. As of January 30, 2022, income tax payable represents the long-term portion of the one-time transition tax payable of $251 million, unrecognized tax benefits of $670 million, and related interest and penalties of $59 million.
(2)    Deferred revenue primarily includes deferrals related to support for hardware and software.
Deferred Revenue
The following table shows the changes in deferred revenue during the first half of fiscal years 2023 and 2022:
July 31,August 1,
 20222021
(In millions)
Balance at beginning of period$502 $451 
Deferred revenue additions during the period399 401 
Revenue recognized during the period(341)(362)
Balance at end of period$560 $490 
Revenue related to remaining performance obligations represents the contracted license and development arrangements and support for hardware and software. This includes deferred revenue currently recorded and amounts that will be invoiced in future periods. As of July 31, 2022, $645 million of revenue related to performance obligations had not been recognized, of which we expect to recognize approximately 48% over the next twelve months and the remainder thereafter. This excludes revenue related to performance obligations for contracts with a length of one year or less.