Balance Sheet Information

6 Months Ended

Jun. 28, 2015

Balance Sheet Information [Abstract]

Balance Sheet Information

Balance Sheet Information

Accounts Receivable, net. Accounts receivable, net was as follows:

	June 28, 2015			December 28, 2014
	(In thousands)
Accounts receivable	$	845,439		$	1,134,254
Allowance for doubtful accounts	(8,373		)	(9,622		)
Promotions, price protection and other activities	(196,224		)	(282,156		)
Total accounts receivable, net	$	640,842		$	842,476

Inventory. Inventory was as follows:

	June 28, 2015		December 28, 2014
	(In thousands)
Raw material	$	387,192	$	369,860
Work-in-process	121,784		138,594
Finished goods	271,797		189,557
Total inventory	$	780,773	$	698,011

Other Current Assets. Other current assets were as follows:

	June 28, 2015		December 28, 2014
	(In thousands)
Income tax receivables	$	116,449	$	18,579
Other tax-related receivables	92,342		84,432
Other non-trade receivables	44,996		69,033
Prepaid expenses	22,735		18,579
Other current assets	34,273		24,369
Total other current assets	$	310,795	$	214,992

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:

	June 28, 2015		December 28, 2014
	(In thousands)
Notes receivable, Flash Partners Ltd.	$	65,784	$	12,454
Notes receivable, Flash Alliance Ltd.	283,316		292,677
Notes receivable, Flash Forward Ltd.	98,878		161,906
Investment in Flash Partners Ltd.	164,147		167,102
Investment in Flash Alliance Ltd.	245,285		249,459
Investment in Flash Forward Ltd.	78,982		79,219
Total notes receivable and investments in Flash Ventures	$	936,392	$	962,817

Equity-method investments and the Company’s maximum loss exposure related to Flash Ventures are discussed further in Note 13, “Commitments, Contingencies and Guarantees – Flash Ventures” and Note 14, “Related Parties and Strategic Investments.”

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:

	June 28, 2015		December 28, 2014
	(In thousands)
Prepaid tax on intercompany transactions	$	32,344	$	33,375
Long-term income tax receivable	20,454		—
Other non-current assets	78,860		75,302
Total other non-current assets	$	131,658	$	108,677

Other Current Accrued Liabilities. Other current accrued liabilities were as follows:

	June 28, 2015		December 28, 2014
	(In thousands)
Accrued payroll and related expenses	$	153,231	$	233,702
Taxes payable	29,174		74,079
Derivative contract payables	1,284		8,224
Other current accrued liabilities	172,791		190,288
Total other current accrued liabilities	$	356,480	$	506,293

Non-current Liabilities. Non-current liabilities were as follows:

	June 28, 2015		December 28, 2014
	(In thousands)
Income tax liabilities	$	83,980	$	132,320
Deferred revenue	19,660		31,066
Deferred tax liabilities	75		22,360
Other non-current liabilities	59,365		59,808
Total non-current liabilities	$	163,080	$	245,554

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

	Three months ended						Six months ended
	June 28, 2015			June 29, 2014			June 28, 2015			June 29, 2014
	(In thousands)
Balance, beginning of period	$	44,632		$	47,565		$	48,555		$	43,624
Additions and adjustments to cost of revenue	7,333			4,927			7,577			12,358
Usage	(5,073		)	(3,750		)	(9,240		)	(7,240		)
Balance, end of period	$	46,892		$	48,742		$	46,892		$	48,742

Additions and adjustments to cost of revenue in the six months endedJune 28, 2015 included adjustments to certain warranty assumptions, related to future potential claims, resulting in a $3.1 millionreduction to the overall future warranty exposure.

Comprehensive Income (Loss) Note

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

	June 28, 2015			December 28, 2014
	(In thousands)
Accumulated net unrealized gain (loss) on:
Available-for-sale investments	$	1,202		$	3,359
Foreign currency translation	(225,136		)	(197,252		)
Cash flow hedging activities	356			(14,179		)
Total accumulated other comprehensive loss	$	(223,578	)	$	(208,072	)

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

	Three months ended					Six months ended
	June 28, 2015			June 29, 2014		June 28, 2015			June 29, 2014
	(In thousands)
Available-for-sale investments	$	(2,416	)	$	1,221	$	(1,317	)	$	1,598
Foreign currency translation	2,471			2,201		4,250			5,972
Total income tax expense allocated	$	55		$	3,422	$	2,933		$	7,570

The significant amounts reclassified out of each component of AOCI were as follows:

	Three months ended						Six months ended
AOCI Component	June 28, 2015			June 29, 2014			June 28, 2015			June 29, 2014			Statement of Operations Line Item
	(In thousands)
Unrealized gain on available-for-sale investments	$	522		$	3,413		$	2,519		$	3,983		Interest (expense) and other income (expense), net
Tax impact	(187		)	(1,199		)	(909		)	(1,394		)	Provision for income taxes
Unrealized gain on available-for-sale investments, net of tax	335			2,214			1,610			2,589
Unrealized holding loss on cash flow hedging activities:
Foreign exchange contracts	(2,150		)	(7,689		)	(13,755		)	(9,050		)	Cost of revenue
Foreign exchange contracts	—			(154		)	—			(357		)	Research and development
Loss on cash flow hedging activities	(2,150		)	(7,843		)	(13,755		)	(9,407		)
Total reclassifications for the period, net of tax	$	(1,815	)	$	(5,629	)	$	(12,145	)	$	(6,818	)