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Balance Sheet Components
 12 Months Ended
Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Components
BALANCE SHEET COMPONENTS
 
 
As of
(In thousands)
 
December 31, 2017
 
January 1, 2017
Accounts receivable, net:
 
 
 
 
Accounts receivable, gross1,2,3
 
$
252,840

 
$
242,451

Less: allowance for doubtful accounts4
 
(35,387
)
 
(20,380
)
Less: allowance for sales returns
 
(1,974
)
 
(2,433
)
 
 
$
215,479

 
$
219,638


1 
Includes short-term financing receivables associated with solar power systems leased of $19.1 million and $19.3 million as of December 31, 2017 and January 1, 2017, respectively (see Note 6).

2 
Includes short-term retainage of $13.2 million and $8.8 million as of December 31, 2017 and January 1, 2017, respectively. Retainage refers to the earned, but unbilled, portion of a construction and development project for which payment is deferred by the customer until certain contractual milestones are met.

3 
The Company pledged accounts receivable of $1.7 million and $0.3 million, respectively, as of December 31, 2017 and January 1, 2017, to third-party investors as security for the Company's contractual obligations.

4 For the year ended December 31, 2017, the Company recognized an allowance for losses of $5.8 million on the short-term financing receivables associated with solar power systems leased.


(In thousands)

 
Balance at Beginning of Period
 
Charges (Releases) to Expenses / Revenues
 
Deductions
 
Balance at End of Period
Allowance for doubtful accounts:
 
 
 
 
 
 
 
 
   Year ended December 31, 2017
 
$
20,380

 
$
15,609

 
$
(7,094
)
 
$
28,895

   Year ended January 1, 2017
 
15,505

 
7,319

 
(2,445
)
 
20,380

   Year ended January 3, 2016
 
18,152

 
1,163

 
(3,810
)
 
15,505

Allowance for sales returns:
 
 
 
 
 
 
 
 
   Year ended December 31, 2017
 
2,433

 
(459
)
 
—

 
1,974

   Year ended January 1, 2017
 
1,907

 
526

 
—

 
2,433

   Year ended January 3, 2016
 
1,145

 
762

 
—

 
1,907

Valuation allowance for deferred tax assets:
 
 
 
 
 
 
 
 
   Year ended December 31, 2017
 
497,236

 
61,610

 
—

 
558,846

   Year ended January 1, 2017
 
268,671

 
228,565

 
—

 
497,236

   Year ended January 3, 2016
 
118,748

 
149,923

 
—

 
268,671





As of
(In thousands)

December 31, 2017

January 1, 2017
Inventories:




Raw materials

$
59,288


$
136,906

Work-in-process

111,164


184,967

Finished goods

182,377


79,834

 

$
352,829


$
401,707



 
 
As of
(In thousands)
 
December 31, 2017
 
January 1, 2017
Prepaid expenses and other current assets:
 
 
 
 
Deferred project costs1
 
$
39,770

 
$
68,338

VAT receivables, current portion
 
11,561

 
14,260

Deferred costs for solar power systems to be leased
 
25,076

 
28,705

Derivative financial instruments
 
2,612

 
4,802

Prepaid inventory
 
—

 
83,943

Other receivables
 
49,015

 
85,834

Prepaid taxes
 
426

 
5,468

Other prepaid expenses
 
23,433

 
24,260

Other current assets
 
551

 
60

 
 
$
152,444

 
$
315,670


1 
As of December 31, 2017 and January 1, 2017, the Company had pledged deferred project costs of $2.9 million, and $2.3 million, respectively, to third-party investors as security for the Company's contractual obligations.

 
 
As of
(In thousands)
 
December 31, 2017
 
January 1, 2017
Project assets - plants and land:
 
 
 
 
Project assets — plants
 
$
90,879

 
$
389,103

Project assets — land
 
12,184

 
18,927

 
 
$
103,063

 
$
408,030

Project assets — plants and land, current portion
 
$
103,063

 
$
374,459

Project assets — plants and land, net of current portion
 
$
—

 
$
33,571



 
 
As of
(In thousands)
 
December 31, 2017
 
January 1, 2017
Property, plant and equipment, net:
 
 
 
 
Manufacturing equipment1
 
$
406,026

 
$
403,808

Land and buildings
 
197,084

 
130,080

Leasehold improvements
 
297,522

 
280,620

Solar power systems2
 
451,875

 
207,277

Computer equipment
 
111,183

 
185,518

Furniture and fixtures
 
12,621

 
12,591

Construction-in-process
 
14,166

 
39,849

 
 
1,490,477

 
1,259,743

Less: accumulated depreciation
 
(342,435
)
 
(232,677
)
 
 
$
1,148,042

 
$
1,027,066


1 
The Company's mortgage loan agreement with International Finance Corporation ("IFC") was collateralized by certain manufacturing equipment with a net book value of $14.3 million as of January 1, 2017. During the first quarter of 2017, the entire outstanding balance, and the associated interest, of the mortgage loan agreement with IFC has been repaid.

2 
Includes $419.0 million and $177.1 million of solar power systems associated with sale-leaseback transactions under the financing method as of December 31, 2017 and January 1, 2017, respectively, which are depreciated using the straight-line method to their estimated residual values over the lease terms of up to 20 years (see Note 6).
 
 
As of
(In thousands)
 
December 31, 2017
 
January 1, 2017
Property, plant and equipment, net by geography1:
 
 
 
 
United States
 
$
489,167

 
$
276,053

Philippines
 
325,601

 
373,286

Malaysia
 
233,824

 
275,980

Mexico
 
80,560

 
81,419

Europe
 
18,767

 
20,154

Other
 
123

 
174

 
 
$
1,148,042

 
$
1,027,066


1 
Property, plant and equipment, net by geography is based on the physical location of the assets.



 
 
As of
(In thousands)
 
December 31, 2017
 
January 1, 2017
Other long-term assets:
 
 
 
 
Equity method investments1
 
$
(15,515
)
 
$
(6,931
)
Derivative financial instruments
 
—

 
11,429

Cost method investments
 
35,840

 
39,423

Other2
 
59,821

 
141,598

 
 
$
80,146

 
$
185,519


1 
Includes the carrying value of the Company's investment in the 8point3 Group, which had a negative value of $82.8 million and $60.6 million as of December 31, 2017 and January 1, 2017, respectively (see Note 10).
l
2 
As of December 31, 2017 and January 1, 2017, the Company had pledged deferred project costs of $6.4 million and $0.4 million, respectively, to third-party investors as security for the Company's contractual obligations.
 
 
As of
(In thousands)
 
December 31, 2017
 
January 1, 2017
Accrued liabilities:
 
 
 
 
Employee compensation and employee benefits
 
$
53,225

 
$
43,370

Deferred revenue
 
41,121

 
27,649

Interest payable
 
15,396

 
15,329

Short-term warranty reserves
 
25,222

 
4,894

Restructuring reserve
 
3,886

 
18,001

VAT payables
 
8,691

 
4,743

Derivative financial instruments
 
1,452

 
2,023

Inventory payable
 
—

 
83,943

Proceeds from 8point3 Energy Partners attributable to projects prior to Commercial Operation Date ("COD")
 
—

 
3,665

Contributions from noncontrolling interests attributable to projects prior to COD
 
—

 
93,875

Taxes payable
 
21,352

 
25,602

Liability due to AU Optronics
 
21,389

 
31,714

Other
 
76,026

 
36,418

 
 
$
267,760

 
$
391,226



 
 
As of
(In thousands)
 
December 31, 2017
 
January 1, 2017
Other long-term liabilities:
 
 
 
 

Deferred revenue
 
$
183,601

 
$
188,932

Long-term warranty reserves
 
156,082

 
156,315

Long-term sale-leaseback financing
 
479,597

 
204,879

Long-term residential lease financing with 8point3 Energy Partners
 
29,245

 
29,370

Unrecognized tax benefits
 
19,399

 
47,203

Long-term pension liability
 
4,465

 
3,381

Derivative financial instruments
 
1,174

 
448

Long-term liability due to AU Optronics
 
57,611

 
71,639

Other
 
23,472

 
18,865

 
 
$
954,646

 
$
721,032



 
 
As of
(In thousands)
 
December 31, 2017
 
January 1, 2017
Accumulated other comprehensive loss:
 
 
 
 

Cumulative translation adjustment
 
$
(6,631
)
 
$
(12,249
)
Net unrealized gain (loss) on derivatives
 
(541
)
 
1,203

Net gain on long-term pension liability adjustment
 
4,164

 
4,228

Deferred taxes
 
—

 
(420
)
 
 
$
(3,008
)
 
$
(7,238
)