Balance Sheet Components

3 Months Ended

Apr. 03, 2022

Balance Sheet Related Disclosures [Abstract]

BALANCE SHEET COMPONENTS

Accounts Receivable, Net


	As of
(In thousands)	April 3, 2022		January 2, 2022
Accounts receivable, gross1	$	131,872	$	135,912
Less: allowance for credit losses	(15,181)		(14,375)
Less: allowance for sales returns	(337)		(269)
Accounts receivable, net	$	116,354	$	121,268

1 A lien exists on $83.8 million of our consolidated accounts receivable, gross, as of April 3, 2022 in connection with a Loan and Security Agreement entered into on March 29, 2019. See Note 11. Debt and Credit Sources.

Allowance for Credit Losses


	Three Months Ended
(In thousands)	April 3, 2022		April 4, 2021
Balance at beginning of period	$	14,375	$	13,850
Provision for credit losses	1,300		1,220
Write-offs	(494)		(826)
Balance at end of period	$	15,181	$	14,244

Inventories


	As of
(In thousands)	April 3, 2022		January 2, 2022
Photo-voltaic modules	$	134,417	$	130,671
Microinverters	30,926		24,040
Energy Storage Systems	42,660		26,849
Other solar power system component materials	37,609		32,872
Inventories1 2	$	245,612	$	214,432

1 A lien exists on $212.1 million of our gross inventory as of April 3, 2022 in connection with a Loan and Security Agreement entered into on March 29, 2019. See Note 11. Debt and Credit Sources.

2 Photovoltaic modules are classified as finished goods, while the remaining components of total inventories are classified as raw materials.

Prepaid Expenses and Other Current Assets


	As of
(In thousands)	April 3, 2022		January 2, 2022
Deferred project costs	$	76,069	$	52,165

Deferred costs for solar power systems	15,839		18,834


Related-party receivables	8,483		3,684
Other	27,880		25,529
Prepaid expenses and other current assets	$	128,271	$	100,212

Property, Plant and Equipment, Net


	As of
(In thousands)	April 3, 2022		January 2, 2022
Manufacturing equipment	$	3,848	$	3,848
Leasehold improvements	29,950		28,936
Solar power systems	7,784		6,500
Computer equipment	23,993		23,112
Internal-use software	35,471		34,083
Furniture and fixtures	8,906		8,582
Transportation equipment	2,224		2,174
Work-in-progress	11,295		4,076
Property, plant and equipment, gross	123,471		111,311
Less: accumulated depreciation and impairment	(80,976)		(77,751)
Property, plant, and equipment, net1	$	42,495	$	33,560

1 Property, plant, and equipment is predominantly located in the U.S.

Other Long-term Assets


	As of
(In thousands)	April 3, 2022		January 2, 2022
Equity investments with readily determinable fair value	$	—	$	91,473
Equity investments without readily determinable fair value	7,809		807
Equity investments with fair value option	8,528		8,374

Cloud computing arrangements implementation costs1	9,654		11,692

Deposits with related parties	11,000		11,000
Retail installment contract receivables, net of current portion	63,758		—
Long-term deferred project costs	4,422		4,542
Long-term prepaid taxes	1,464		4,145
Other	22,894		24,961
Other long-term assets	$	129,529	$	156,994

1 Includes our implementation costs incurred in cloud computing arrangements (“CCA”) which are capitalized as other long-term assets in accordance with the guidance in ASC 350-40, Internal-Use Software. As of April 3, 2022 and January 2, 2022, $0.5 million and $0.1 million, respectively, was included in amortization expense related to the amortization of our capitalized CCA costs.

Accrued Liabilities


	As of
(In thousands)	April 3, 2022		January 2, 2022
Employee compensation and employee benefits	$	24,429	$	15,641
Interest payable	3,579		8,005
Short-term warranty reserves	40,650		24,158
Restructuring reserve	1,500		2,137
Legal expenses	9,391		9,052
Taxes payable	5,525		4,606
Other	44,495		38,381
Accrued liabilities	$	129,569	$	101,980

Other Long-term Liabilities


	As of
(In thousands)	April 3, 2022		January 2, 2022
Deferred revenue	$	39,255	$	40,321
Long-term warranty reserves	37,846		56,124
Unrecognized tax benefits	15,189		14,689
Long-term pension liability	3,802		3,758
Long-term deferred tax liabilities	1,692		15,834
Long-term taxes payable	866		866
Related-party liabilities	1,458		1,458
Other	9,187		8,147
Other long-term liabilities	$	109,295	$	141,197

Accumulated Other Comprehensive Income


	As of
(In thousands)	April 3, 2022		January 2, 2022
Cumulative translation adjustment	$	9,622	$	9,620
Net gain on long-term pension liability obligation	1,548		1,548
Net gain on long-term derivative financial instrument	—		—
Deferred taxes	—		—
Accumulated other comprehensive income	$	11,170	$	11,168