Balance Sheet Information

12 Months Ended

Dec. 28, 2014

Balance Sheet Information [Abstract]

Balance Sheet Information

Balance Sheet Information

Accounts Receivable, net. Accounts receivable, net was as follows (in thousands):

	December 28, 2014			December 29, 2013
Accounts receivable	$	1,134,254		$	904,551
Allowance for doubtful accounts	(9,622		)	(8,274		)
Promotions, price protection and other activities	(282,156		)	(213,468		)
Total accounts receivable, net	$	842,476		$	682,809

Allowance for Doubtful Accounts. The activity in the allowance for doubtful accounts was as follows (in thousands):

	Fiscal years ended
	December 28, 2014			December 29, 2013			December 30, 2012
Balance, beginning of year	$	8,274		$	6,627		$	5,717
Additions charged to costs and expenses	857			2,167			1,452
Allowance adjustment	1,272			—			—
Deductions/write-offs	(781		)	(520		)	(542		)
Balance, end of year	$	9,622		$	8,274		$	6,627

Inventory. Inventory was as follows (in thousands):

	December 28, 2014		December 29, 2013
Raw material	$	369,860	$	440,570
Work-in-process	138,594		102,543
Finished goods	189,557		213,862
Total inventory	$	698,011	$	756,975

Other Current Assets. Other current assets were as follows (in thousands):

	December 28, 2014		December 29, 2013
Income tax receivables	$	18,579	$	7,976
Other tax-related receivables	84,432		62,784
Other non-trade receivables	69,033		37,368
Prepaid expenses	18,579		12,630
Other current assets	24,369		46,127
Total other current assets	$	214,992	$	166,885

Property and Equipment. Property and equipment were as follows (in thousands):

	December 28, 2014			December 29, 2013
Machinery and equipment	$	1,318,454		$	1,148,150
Furniture and fixtures	24,090			20,481
Software	191,900			171,733
Buildings and building improvements	338,412			261,471
Leasehold improvements	26,525			6,559
Land	24,427			24,427
Capital land lease	12,827			6,644
Property and equipment, at cost	1,936,635			1,639,465
Accumulated depreciation and amortization	(1,212,278		)	(983,671		)
Property and equipment, net	$	724,357		$	655,794

Depreciation expense of property and equipment totaled $254.3 million, $226.3 million and $161.9 million in fiscal years 2014, 2013 and 2012, respectively.

Notes Receivable and Investments in Flash Ventures. Notes receivable and investments in Flash Partners Ltd., Flash Alliance Ltd. and Flash Forward Ltd. (collectively referred to as “Flash Ventures”) were as follows (in thousands):

	December 28, 2014		December 29, 2013
Notes receivable, Flash Partners Ltd.	$	12,454	$	100,057
Notes receivable, Flash Alliance Ltd.	292,677		323,995
Notes receivable, Flash Forward Ltd.	161,906		169,144
Investment in Flash Partners Ltd.	167,102		190,694
Investment in Flash Alliance Ltd.	249,459		283,999
Investment in Flash Forward Ltd.	79,219		66,731
Total notes receivable and investments in Flash Ventures	$	962,817	$	1,134,620

Equity-method investments and the Company’s maximum loss exposure related to Flash Ventures are discussed further in Note 14, “Commitments, Contingencies and Guarantees – Flash Ventures” and Note 15, “Related Parties and Strategic Investments.”

The Company assesses financing receivable credit quality through financial and operational reviews of the borrower and creditworthiness, including credit rating agency ratings, of significant investors of the borrower, where material or known. Impairments, when required for credit worthiness, are recorded in other income (expense). The Company makes or will make long-term loans to Flash Ventures to fund new process technologies and additional wafer capacity. The Company aggregates its Flash Ventures’ notes receivable into one class of financing receivables due to the similar ownership interest and common structure in each Flash Venture entity. For all reporting periods presented, no loans were past due and no loan impairments were recorded.

Other Non-current Assets. Other non-current assets were as follows (in thousands):

	December 28, 2014		December 29, 2013
Prepaid tax onintercompany transactions	$	33,375	$	37,747
Long-term prepaid income tax	—		66,176
Other non-current assets	75,302		63,507
Total other non-current assets	$	108,677	$	167,430

Other Current Accrued Liabilities. Other current accrued liabilities were as follows (in thousands):

	December 28, 2014		December 29, 2013
Accrued payroll and related expenses	$	233,702	$	227,779
Taxes payable	74,079		59,618
Derivative contract payables	8,224		45,741
Other current accrued liabilities	190,288		176,594
Total other current accrued liabilities	$	506,293	$	509,732

Non-current Liabilities. Non-current liabilities were as follows (in thousands):

	December 28, 2014		December 29, 2013
Income tax liabilities	$	132,320	$	205,266
Deferred revenue	31,066		35,346
Deferred tax liabilities	22,360		3,482
Other non-current liabilities	59,808		62,989
Total non-current liabilities	$	245,554	$	307,083

Warranties. The liability for warranty expense is included in Other current accrued liabilities and Non-current liabilities in the Consolidated Balance Sheets, and the activity was as follows (in thousands):

	Fiscal years ended
	December 28, 2014			December 29, 2013			December 30, 2012
Balance, beginning of year	$	43,624		$	38,787		$	26,957
Additions and adjustments to cost of revenue	21,315			33,400			33,247
Warranty liability assumed from acquisition	3,794			2,363			—
Usage	(20,178		)	(30,926		)	(21,417		)
Balance, end of year	$	48,555		$	43,624		$	38,787

The majority of the Company’s products have a warranty of five years or less, with a small number of products having a warranty ranging up to ten years or more. For warranties ten years or greater, including lifetime warranties, the Company uses the estimated useful life of the product to calculate the warranty exposure. A provision for the estimated future cost related to warranty expense is recorded at the time of customer invoice. The Company’s warranty liability is affected by customer and consumer returns, product failures, number of units sold and repair or replacement costs incurred. Should actual product failure rates, or repair or replacement costs, differ from the Company’s estimates, increases or decreases to its warranty liability would be required. Additions and adjustments to cost of revenue in the fiscal year endedDecember 28, 2014 included adjustments to certain warranty assumptions, related to future potential claims, resulting in a $5.7 million reduction to the overall future warranty exposure.

Comprehensive Income (Loss) Note

Accumulated Other Comprehensive Income (Loss). AOCI presented in the Consolidated Balance Sheets consists of unrealized gains and losses on available-for-sale investments, foreign currency translation and hedging activities, net of tax, for all periods presented (in thousands):

	December 28, 2014			December 29, 2013
Accumulated net unrealized gain (loss) on:
Available-for-sale investments	$	3,359		$	10,479
Foreign currency translation	(197,252		)	(47,440		)
Hedging activities	(14,179		)	(39,498		)
Total accumulated other comprehensive loss	$	(208,072	)	$	(76,459	)

The amount of income tax benefit allocated to the unrealized gain (loss) on available-for-sale investments and foreign currency translation activities was as follows (in thousands):

	Fiscal years ended
	December 28, 2014			December 29, 2013			December 30, 2012
Available-for-sale investments	$	(3,934	)	$	(3,383	)	$	3,121
Foreign currency translation	(4,163		)	(38,006		)	(23,791		)
Total income tax benefit allocated	$	(8,097	)	$	(41,389	)	$	(20,670	)

The significant amounts reclassified out of each component of AOCI were as follows (in thousands):

	Fiscal years ended
AOCI Component	December 28, 2014			December 29, 2013			December 30, 2012			Statement of Operations Line Item
Unrealized gain on available-for-sale investments	$	7,543		$	2,375		$	2,969		Interest (expense) and other income (expense), net
Tax impact	(2,677		)	(1,122		)	(1,051		)	Provision for income taxes
Unrealized gain on available-for-sale investments, net of tax	4,866			1,253			1,918
Unrealized holding loss on derivatives:
Foreign exchange contracts	(24,142		)	(41,523		)	(10,946		)	Cost of revenue
Foreign exchange contracts	(1,276		)	—			—			Research and development
Loss on cash flow hedging activities	(25,418		)	(41,523		)	(10,946		)
Total reclassifications for the period, net of tax	$	(20,552	)	$	(40,270	)	$	(9,028	)