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Balance Sheet Components (Tables)
 6 Months Ended
Jul. 02, 2023
Balance Sheet Related Disclosures [Abstract]  
Schedule of Accounts Receivable, Net
Accounts Receivable, Net
As of
(In thousands)July 2, 2023January 1, 2023
Accounts receivable, gross$228,415 $189,636 
Less: allowance for credit losses(13,871)(14,750)
Less: allowance for sales returns(166)(309)
     Accounts receivable, net$214,378 $174,577 
Schedule of Accounts Receivable, Allowance for Credit Loss
Allowance for Credit Losses
Three Months EndedSix Months Ended
(In thousands)July 2, 2023July 3, 2022July 2, 2023July 3, 2022
Balance at beginning of period$13,596 $15,181 $14,750 $14,375 
Provision for credit losses 865 628 1,307 1,928 
Write-offs(590)(150)(2,186)(644)
Balance at end of period$13,871 $15,659 $13,871 $15,659 
Schedule of Inventory
Inventories
As of
(In thousands)July 2, 2023January 1, 2023
Photovoltaic modules$244,068 $156,292 
Microinverters68,832 46,088 
Energy storage systems58,670 63,327 
Other solar power system component materials 52,470 51,108 
Inventories1
$424,040 $316,815 
1 Photovoltaic modules are classified as finished goods, while the remaining components of total inventories are classified as raw materials.
Schedule of Prepaid Expenses and Other Current Assets
Prepaid Expenses and Other Current Assets
As of
(In thousands)July 2, 2023January 1, 2023
Deferred project costs$101,283 $126,896 
Deferred costs for solar power systems86,637 34,124 
Related-party receivables10,119 3,959 
Derivative assets80 — 
Other30,164 32,781 
Prepaid expenses and other current assets$228,283 $197,760 
Schedule of Property, Plant and Equipment, Net
Property, Plant and Equipment, Net
As of
(In thousands)July 2, 2023January 1, 2023
Testing equipment and tools$1,804 $1,157 
Leasehold improvements17,368 14,342 
Solar power systems11,100 10,271 
Computer equipment15,576 14,411 
Internal-use software92,082 70,621 
Furniture and fixtures8,105 8,088 
Transportation equipment5,160 3,941 
Vehicle finance leases20,402 12,316 
Work-in-progress7,590 5,958 
   Property, plant and equipment, gross2
179,187 141,105 
Less: accumulated depreciation and impairment2,3
(83,472)(66,583)
   Property, plant, and equipment, net1,3
$95,715 $74,522 

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

2 When our property, plant, and equipment are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from our condensed consolidated balance sheets, and any resulting gain or loss is included within our condensed consolidated statements of operations. As of July 2, 2023 and January 1, 2023, $0.2 million and $0.1 million, respectively, of our gross property, plant, and equipment, which were fully depreciated, were retired, thus, no gain or loss was recognized from the disposal.

3 For the three and six months ended July 2, 2023, we recorded depreciation expense, including accretion expense related to our asset retirement obligations, of $11.8 million and $21.1 million, respectively. For the three and six months ended July 3, 2022, we recorded depreciation expense of $4.2 million and $7.6 million, respectively.
Schedule of Other Long-Term Assets
Other Long-term Assets
As of
(In thousands)July 2, 2023January 1, 2023
Equity investments without readily determinable fair value$39,180 $31,751 
Equity investments with fair value option (“FVO”)
26,023 18,346 
Cloud computing arrangements implementation costs, net of current portion1
5,609 9,179 
Deposits with related parties6,550 7,329 
Retail installment contract receivables, net of current portion2, 3
91,203 98,001 
Long-term deferred project costs2,925 3,110 
Derivative assets2,507 2,293 
Debt issuance costs— 3,556 
Loan receivables held to maturity, net of current portion3
1,205 — 
Other18,710 19,020 
Other long-term assets$193,912 $192,585 

1As of July 2, 2023 and January 1, 2023, we recorded $2.7 million and $5.1 million, respectively, of amortization expense related to the amortization of our capitalized CCA costs.

2 Our long-term retail installment contract receivables are presented net of the significant financing component of $21.8 million and $22.5 million, and allowance for credit losses of $0.7 million and $0.4 million as of July 2, 2023 and January 1, 2023, respectively.

3 We are exposed to credit risk from certain customers and their potential payment delinquencies on our retail installment contracts and other loan receivables held to maturity. As of July 2, 2023, the average Fair Isaac Corporation (“FICO”) score of our customers under a retail installment contract agreement remained at or above 750, which is generally categorized as a “Very Good” credit profile by the Fair Isaac Corporation. As of July 2, 2023, the average FICO score of our customers under other loan receivable agreements remained at or above 600, which is generally categorized as a “Fair” credit profile by the Fair Isaac Corporation.
Schedule of Accrued Liabilities
Accrued Liabilities
As of
(In thousands)July 2, 2023January 1, 2023
Employee compensation and employee benefits$18,959 $36,452 
Interest payable595 8,549 
Short-term warranty reserves33,495 29,657 
Legal expenses5,727 2,830 
Taxes payable7,032 8,167 
Payable to related parties
7,887 11,239 
Short-term finance lease liabilities4,724 2,949 
Indemnification obligations retained from C&I Solutions sale1
22,674 20,632 
Other30,601 24,754 
Accrued liabilities$131,694 $145,229 

1 As of July 2, 2023, we had a total of $22.5 million and $0.2 million of warranty reserves and other indemnifications, respectively, retained in connection with the sale of our C&I Solutions business to TotalEnergies Renewables. As of January 1, 2023, we retained a total of $13.5 million and $7.1 million of warranty reserves and other indemnifications, respectively.
Schedule of Other Long-Term Liabilities
Other Long-term Liabilities
As of
(In thousands)July 2, 2023January 1, 2023
Deferred revenue$33,642 $35,864 
Long-term warranty reserves25,269 28,082 
Unrecognized tax benefits12,939 12,295 
Related-party liabilities1,458 1,458 
Long-term finance lease liabilities12,376 7,878 
Indemnification obligations retained from C&I Solutions sale1
10,946 11,385 
Other18,075 11,013 
Other long-term liabilities$114,705 $112,797 

1 As of July 2, 2023, we had a total of $7.2 million and $3.7 million of warranty reserves and other indemnifications, respectively, retained in connection with the sale of our C&I Solutions business to TotalEnergies Renewables. As of January 1, 2023, we retained a total of $7.6 million and $3.8 million of warranty reserves and other indemnifications, respectively.
Schedule of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income
As of
(In thousands)July 2, 2023January 1, 2023
Cumulative translation adjustment$9,594 $9,576 
Net gain on long-term pension liability obligation1,992 1,992 
Accumulated other comprehensive income$11,586 $11,568