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Balance Sheet Components
 6 Months Ended
Jul. 03, 2022
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Components BALANCE SHEET COMPONENTS
Accounts Receivable, Net
As of
(In thousands)July 3, 2022January 2, 2022
Accounts receivable, gross1
$165,065 $135,912 
Less: allowance for credit losses(15,659)(14,375)
Less: allowance for sales returns(240)(269)
     Accounts receivable, net$149,166 $121,268 

1 A lien exists on $106.9 million of our consolidated accounts receivable, gross, as of July 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 EndedSix Months Ended
(In thousands)July 3, 2022July 4, 2021July 3, 2022July 4, 2021
Balance at beginning of period$15,181 $14,244 $14,375 $13,850 
Provision for credit losses 628 244 1,928 1,464 
Write-offs(150)(289)(644)(1,115)
Balance at end of period$15,659 $14,199 $15,659 $14,199 

Inventories
As of
(In thousands)July 3, 2022January 2, 2022
Photo-voltaic modules$109,239 $130,671 
Microinverters22,958 24,040 
Energy Storage Systems52,287 26,849 
Other solar power system component materials 38,040 32,872 
Inventories1 2
$222,524 $214,432 

1 A lien exists on $196.1 million of our gross inventory as of July 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)July 3, 2022January 2, 2022
Deferred project costs$101,162 $52,165 
Deferred costs for solar power systems22,146 18,834 
Related-party receivables6,465 3,684 
Other36,591 25,529 
Prepaid expenses and other current assets$166,364 $100,212 
Property, Plant and Equipment, Net
As of
(In thousands)July 3, 2022January 2, 2022
Testing equipment and tools$191 $3,848 
Leasehold improvements15,424 28,936 
Solar power systems9,207 6,500 
Computer equipment12,040 23,112 
Internal-use software52,004 34,083 
Furniture and fixtures7,907 8,582 
Transportation equipment1,390 2,174 
Vehicle finance leases5,403 — 
Work-in-progress3,984 4,076 
   Property, plant and equipment, gross107,550 111,311 
Less: accumulated depreciation and impairment(56,875)(77,751)
   Property, plant, and equipment, net1
$50,675 $33,560 

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

Other Long-term Assets
As of
(In thousands)July 3, 2022January 2, 2022
Equity investments with readily determinable fair value$— $91,473 
Equity investments without readily determinable fair value17,392 807 
Equity investments with fair value option11,692 8,374 
Cloud computing arrangements implementation costs1
11,348 11,692 
Deposits with related parties11,399 11,000 
Retail installment contract receivables, net of current portion93,420 — 
Long-term deferred project costs4,286 4,542 
Long-term prepaid taxes1,302 4,145 
Other19,043 24,961 
Other long-term assets$169,882 $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 July 3, 2022 and January 2, 2022, $1.4 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)July 3, 2022January 2, 2022
Employee compensation and employee benefits$32,442 $15,641 
Interest payable7,855 8,005 
Short-term warranty reserves39,941 24,158 
Restructuring reserve268 2,137 
Legal expenses8,586 9,052 
Taxes payable5,630 4,606 
Payable to Related Parties1
6,265 — 
Short-term finance lease liabilities1,391 — 
Other52,895 38,381 
Accrued liabilities$155,273 $101,980 

1 Includes the payable to Total recorded on July 3, 2022 in connection with the sale of our C&I Solutions business, based on the latest estimate of closing date working capital.

Other Long-term Liabilities
As of
(In thousands)July 3, 2022January 2, 2022
Deferred revenue$38,102 $40,321 
Long-term warranty reserves38,643 56,124 
Unrecognized tax benefits15,385 14,689 
Long-term pension liability4,248 3,758 
Long-term deferred tax liabilities3,411 15,834 
Long-term taxes payable866 866 
Related-party liabilities1,458 1,458 
Long-term finance lease liabilities3,599 — 
Other12,230 8,147 
Other long-term liabilities$117,942 $141,197 

Accumulated Other Comprehensive Income
As of
(In thousands)July 3, 2022January 2, 2022
Cumulative translation adjustment$9,591 $9,620 
Net gain on long-term pension liability obligation1,548 1,548 
Accumulated other comprehensive income$11,139 $11,168