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Equity Investments (Tables)
 6 Months Ended
Jul. 03, 2022
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Equity Method Investments The carrying value of our equity investments, classified as “other long-term assets” on our condensed consolidated balance sheets, are as follows:
As of
(In thousands)July 3, 2022January 2, 2022
Equity investments with readily determinable fair value:
Enphase Energy, Inc.$293,580 $457,352 
Total equity investments with readily determinable fair value 1
293,580 457,352 
Equity investments without readily determinable fair value:
OhmConnect investment2
5,000 — 
Sea Bright investment3
2,105 — 
Freedom Solar investment4
9,456 — 
Other equity investments without readily determinable fair value831 807 
Total equity investments without readily determinable fair value17,392 807 
Equity investments with fair value option:
SunStrong Capital Holdings, LLC8,374 8,374 
Dorado Development Partners, LLC3,318 — 
SunStrong Partners, LLC— — 
Total equity investment with fair value option11,692 8,374 
Total equity investments$322,664 $466,533 
1 During the six months ended July 3, 2022, we sold one million shares of Enphase common stock for cash proceeds. As of July 3, 2022, we had 1.5 million shares of Enphase common stock, all of which are within current assets as short-term investments. Refer to Note 7. Fair Value Measurements and Note 5. Balance Sheet Components for details.

2 During the six months ended July 3, 2022, we made an equity investment in OhmConnect, Inc. (“OhmConnect”) of $5.0 million cash in exchange for an equity interest of 1.8% at the time of purchase. The investment is accounted for as an equity investment without readily determinable fair value in accordance with the guidance in ASC 321, Investments - Equity Securities.

3 During the six months ended July 3, 2022, we made an equity investment in Sea Bright Solar, Inc. (“Sea Bright”) to purchase 20% of the outstanding equity of Sea Bright, and paid consideration of $2.0 million. In accordance with the guidance in ASC 323, Investments - Equity Method and Joint Ventures, this investment is accounted for as an equity method investment without readily determinable fair value as we exercise significant influence. During the three months ended July 3, 2022, we had $0.1 million of transaction costs on our investment, which we capitalized in accordance with the guidance on equity method investments.
4 During the three months ended July 3, 2022, we made an equity investment in Freedom Solar Holdings, LLC (“Freedom Solar”) of $9.4 million cash in exchange for an equity interest of 4.5% at the time of purchase. In accordance with the guidance in ASC 323, Investments - Equity Method and Joint Ventures, the investment is accounted for as an equity method investment without readily determinable fair value given the material intra-entity transactions that exist under our exclusive supplier agreement with Freedom Solar as a result of our investment.
Summarized Financial Information of Unconsolidated VIEs
The following table presents summarized consolidated financial statements for SunStrong, a significant investee, based on unaudited information provided to us by the investee:1

Three Months EndedSix Months Ended
(In thousands)July 3, 2022July 4, 2021July 3, 2022July 4, 2021
Summarized statements of operations information:
Revenues$36,004 $32,697 $72,160 $65,794 
Gross (loss) income(6,150)1,007 (7,124)2,221 
Net income (loss)7,029 2,716 8,782 (43,073)
As of
(In thousands)July 3, 2022January 2, 2022
Summarized balance sheet information:
      Current assets$92,674 $93,722 
      Long-term assets1,701,629 1,626,125 
      Current liabilities60,946 65,872 
      Long-term liabilities1,361,502 1,295,540 

1 Note that amounts are reported one quarter in arrears as permitted by applicable guidance.
Schedule of Related Party Transactions
The following are balances and transactions entered into with Total and its affiliates.

As of
(In thousands)July 3, 2022January 2, 2022
Accounts receivable$489 $238 
Prepaid expenses and other current assets$4,385 $— 
Other long-term assets$505 $— 
Accrued Liabilities$6,906 $— 

Three Months EndedSix Months Ended
(In thousands)July 3, 2022July 4, 2021July 3, 2022July 4, 2021
(Income) expense from transition services agreement, net$(518)$— $(518)$— 
Interest expense:
Interest expense incurred on the 4.00% debentures due 2023
$1,000 $1,000 2,000 2,000 
Related-party transactions and balances with SunStrong, SunStrong Partners, and Dorado DevCo are as follows:

As of
(In thousands)July 3, 2022January 2, 2022
Accounts receivable$14,957 $28,900 
Accrued liabilities214 53 
Contract liabilities64,845 17,442 

Three Months EndedSix Months Ended
(In thousands)July 3, 2022July 4, 2021July 3, 2022July 4, 2021
Revenues and fees received from investees for products/services$41,059 $50,475 $86,579 $100,122 
(Gain) loss on business divestitures, net— (224)— (224)
The below table summarizes our transactions with Maxeon Solar for the three and six months ended July 3, 2022:
Three Months EndedSix Months Ended
(In thousands)July 3, 2022July 4, 2021July 3, 2022July 4, 2021
Purchases of photo-voltaic modules (recorded in cost of revenues)$62,602 $58,154 $135,061 $105,346 
Research and development expenses reimbursement received$8,061 $9,373 $17,535 $18,023 
Income (expense) from transition services agreement, net$(24)$3,087 $(290)$4,743 

We had the following balances related to transactions with Maxeon Solar as of July 3, 2022:

As of
(In thousands)July 3, 2022January 2, 2022
Prepaid and other current assets$545 $1,928 
Accrued liabilities $12,132 $7,493 
Accounts payable$26,249 $27,724 
Other long-term liabilities$1,458 $1,458