Balance Sheet Information

3 Months Ended

Apr. 03, 2016

Balance Sheet Information [Abstract]

Balance Sheet Information

Balance Sheet Information

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

	April 3, 2016			January 3, 2016
	(In thousands)
Accounts receivable	$	721,274		$	889,574
Allowance for doubtful accounts	(7,350		)	(7,784		)
Promotions, price protection and other activities	(216,741		)	(263,599		)
Total accounts receivable, net	$	497,183		$	618,191

Inventory. Inventory was as follows:

	April 3, 2016		January 3, 2016
	(In thousands)
Raw material	$	420,558	$	383,655
Work-in-process	140,375		109,746
Finished goods	320,123		315,994
Total inventory	$	881,056	$	809,395

Other Current Assets. Other current assets were as follows:

	April 3, 2016		January 3, 2016
	(In thousands)
Income tax receivables	$	47,941	$	38,420
Other tax-related receivables	107,978		104,273
Non-trade receivables	22,646		23,108
Prepayment to Flash Ventures	13,758		13,758
Prepaid expenses	17,078		26,806
Other current assets	44,446		19,642
Total other current assets	$	253,847	$	226,007

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:

	April 3, 2016		January 3, 2016
	(In thousands)
Notes receivable, Flash Partners Ltd.	$	25,870	$	113,476
Notes receivable, Flash Alliance Ltd.	219,447		285,560
Notes receivable, Flash Forward Ltd.	100,357		105,994
Investment in Flash Partners Ltd.	184,035		170,423
Investment in Flash Alliance Ltd.	278,702		252,697
Investment in Flash Forward Ltd.	91,008		81,839
Total notes receivable and investments in Flash Ventures	$	899,419	$	1,009,989

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:

	April 3, 2016		January 3, 2016
	(In thousands)
Prepaid tax on intercompany transactions	$	27,944	$	29,412
Prepayment to Flash Ventures	22,930		26,370
Long-term income tax receivable	31,371		45,785
Other non-current assets	65,519		72,060
Total other non-current assets	$	147,764	$	173,627

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

	April 3, 2016		January 3, 2016
	(In thousands)
Accrued payroll and related expenses	$	153,698	$	138,757
Taxes payable	65,240		53,006
Derivative contract payables	512		1,747
Other current accrued liabilities	186,472		160,430
Total other current accrued liabilities	$	405,922	$	353,940

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

	April 3, 2016		January 3, 2016
	(In thousands)
Income tax liabilities	$	99,540	$	93,731
Deferred revenue	25,729		22,728
Deferred tax liabilities	1,237		30
Other non-current liabilities	52,913		53,604
Total non-current liabilities	$	179,419	$	170,093

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
	April 3, 2016			March 29, 2015
	(In thousands)
Balance, beginning of period	$	42,311		$	48,555
Additions and adjustments to cost of revenue	3,244			244
Usage	(1,874		)	(4,167		)
Balance, end of period	$	43,681		$	44,632

Additions and adjustments to cost of revenue included adjustments to certain warranty assumptions related to future potential claims, resulting in reductions to the overall future warranty exposure. There was no adjustment to warranty assumptions related to future potential claims in the three months endedApril 3, 2016 and there was $3.1 million in adjustments to warranty assumptions related to future potential claims in the three months endedMarch 29, 2015.

Comprehensive Income (Loss) Note

Accumulated Other Comprehensive Income (Loss). The changes in AOCI by component were as follows:

	Available-for-sale Investments			Foreign Currency Translation			Hedging Activities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance at January 3, 2016	$	842		$	(199,663	)	$	(118	)	$	(198,939	)
Other comprehensive income (loss) before reclassifications, net	(871		)	77,182			28,388			104,699
Amount reclassified from AOCI	(38		)	—			1,448			1,410
Reclassification adjustment for other-than-temporary impairment losses	524			—			—			524
Tax effects	145			(2,172		)	—			(2,027		)
Balance at April 3, 2016	$	602		$	(124,653	)	$	29,718		$	(94,333	)

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

	Three months ended
AOCI Component	April 3, 2016			March 29, 2015			Statement of Operations Line Item
	(In thousands)
Unrealized gain on available-for-sale investments	$	38		$	1,997		Interest (expense) and other income (expense), net
Other-than-temporary impairment losses on available-for-sale securities	(524		)	—			Interest (expense) and other income (expense), net
Tax impact	184			(722		)	Provision for (benefit from) income taxes
Unrealized gain (loss) on available-for-sale investments, net of tax	(302		)	1,275
Unrealized holding loss on cash flow hedging activities:
Foreign exchange contracts	(1,325		)	(11,605		)	Cost of revenue
Foreign exchange contracts	(123		)	—			Research and development
Unrealized holding loss on cash flow hedging activities	(1,448		)	(11,605		)
Total reclassifications for the period, net of tax	$	(1,750	)	$	(10,330	)