Fair Value Measurements (Tables)

6 Months Ended

Jul. 03, 2022

Schedule of Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis

The following table summarizes our assets measured and recorded at fair value on a recurring basis as of July 3, 2022 and January 2, 2022. We had no liabilities to measure and record at fair value on a recurring basis as of July 3, 2022 and January 2, 2022.


	July 3, 2022								January 2, 2022
(In thousands)	Total Fair Value		Level 3		Level 2		Level 1		Total Fair Value		Level 3		Level 2		Level 1
Assets



Equity investments with fair value option ("FVO")	$	11,692	$	11,692	$	—	$	—	$	8,374	$	8,374	$	—	$	—
Equity investments with readily determinable fair value	293,580		—		—		293,580		457,352		—		—		457,352
Total assets	$	305,272	$	11,692	$	—	$	293,580	$	465,726	$	8,374	$	—	$	457,352

Schedule of Equity Method Investment Movements

The following table summarizes movements in equity investments for the six months ended July 3, 2022. There were no internal movements between Level 1 or Level 2 fair value measurements to or from Level 3 fair value measurements for the six months ended July 3, 2022.


(In thousands)	Beginning balance as of January 2, 2022		Equity Distribution		Additional Investment		Other adjustment		Ending balance as of July 3, 2022
Equity investments with FVO	$	8,374	$	—	$	3,318	$	—	$	11,692

Schedule of Level 3 Significant Unobservable Input Sensitivity

The following table summarizes the significant unobservable inputs used in Level 3 valuation of our investments carried at fair value as of July 3, 2022. Included in the table are the inputs and range of possible inputs that have an effect on the overall valuation of the financial instruments.


2022
Assets:	Fair value		Valuation Technique	Unobservable input	Range (Weighted Average)



Equity investments	$	11,692	Discounted cash flows	Discount rate Residual value	12.5%-13% 1 7.5% 1

Total assets	$	11,692

1 The primary unobservable inputs used in the fair value measurement of our equity investments, when using a discounted cash flow model, are the discount rate and residual value. Significant increases (decreases) in the discount rate in isolation would result in a significantly lower (higher) fair value measurement. We estimate the discount rate based on risk appropriate projected cost of equity. We estimate the residual value based on the contracted systems in place in the years being projected. Significant increases (decreases) in the residual value in isolation would result in a significantly higher (lower) fair value measurement.