Remaining performance obligation

[Table of Contents](#i300266b18f874ae1b9a15c90da441bb4_7)  
Performance ObligationsWe regularly enter into contracts with multiple performance obligations. Most performance obligations are generally satisfied within a short time frame, approximately three to six months, after the contract execution date. As of July 3, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $1,132 million, of which approximately 90% is expected to be converted to revenue in the next twelve months, approximately 7% in the following twelve months, and the remainder thereafter.Contract Assets and LiabilitiesContract assets, which consist of revenue recognized and performance obligations satisfied or partially satisfied in advance of customer billing, were $18 million and $16 million as of July 3, 2022 and January 2, 2022, respectively, and were recorded in prepaid expenses and other current assets.Contract liabilities, which consist of deferred revenue and customer deposits, as of July 3, 2022 and January 2, 2022 were $291 million and $297 million, respectively, of which the short-term portions of $226 million and $234 million, respectively, were recorded in accrued liabilities and the remaining long-term portions were recorded in other long-term liabilities. Revenue recorded in Q2 2022 and YTD 2022 included $59 million and $164 million, respectively, of previously deferred revenue that was included in contract liabilities as of January 2, 2022.

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| 3. INVESTMENTS AND FAIR VALUE MEASUREMENTS |

Strategic InvestmentsMarketable Equity SecuritiesOur short-term investments consist of marketable equity securities. As of July 3, 2022 and January 2, 2022, the fair value of our marketable equity securities totaled $38 million and $107 million, respectively. Net (losses) gains recognized in other (expense) income, net on our marketable equity securities were as follows:

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| In millions | Q2 2022 |  | Q2 2021 |  | YTD 2022 |  | YTD 2021 |
| Net (losses) gains recognized during the period on marketable equity securities | $ | (27) |  |  | $ | 4  |  |  | $ | (69) |  |  | $ | (68) |  |
| Less: Net gains (losses) recognized during the period on marketable equity securities sold during the period | —  |  |  | 7  |  |  | —  |  |  | (7) |  |
| Net unrealized losses recognized during the period on marketable equity securities still held at the reporting date | $ | (27) |  |  | $ | (3) |  |  | $ | (69) |  |  | $ | (61) |  |

Non-Marketable Equity SecuritiesAs of July 3, 2022 and January 2, 2022, the aggregate carrying amounts of our non-marketable equity securities without readily determinable fair values, included in other assets, were $42 million and $40 million, respectively.Revenue recognized from transactions with our strategic investees was $25 million and $55 million for Q2 2022 and YTD 2022, respectively, and $22 million and $35 million for Q2 2021 and YTD 2021, respectively.Venture FundsWe invest in two venture capital investment funds (the Funds) with capital commitments of $100 million, callable through April 2026, and up to $150 million, callable through July 2029, respectively, of which $14 million and up to $101 million, respectively, remained callable as of July 3, 2022. Our investments in the Funds are accounted for as equity-method investments. The aggregate carrying amounts of the Funds, included in other assets, were $187 million and $173 million as of July 3, 2022 and January 2, 2022, respectively. We recorded unrealized losses of $4 million and $6 million in Q2 2022 and YTD 2022, respectively, an unrealized net loss of $2 million in Q2 2021, and an unrealized net gain of $31 million in YTD 2021, in other (expense) income, net.14
