Loan Receivables Held For Sale (Tables)

6 Months Ended

Jul. 02, 2023

Receivables [Abstract]

Summary of Loan Receivables, Held For Sale

The following table summarizes the activity in the balance of loan receivables held for sale, net at the lower of costs or fair value for the three and six months ended July 2, 2023:

	Three and Six Months Ended
(In thousands)	July 2, 2023
Balance at beginning of period	$	—
Additions1	46,433
Proceeds from sales	(31,352)
(Loss) gain on sale2	(1,706)
(Increase) decrease in valuation allowance3	(458)
Balance at end of period	$	12,917

1 Our loan receivables held for sale are recorded at carrying value when purchased, and subsequently measured at the lower of cost or fair value on an aggregate portfolio basis until the loan receivables are sold. Additionally, in the three and six months ended July 2, 2023, we capitalized $5.4 million of transaction costs related to the creation of our solar loan funding structures.

2 In the three and six months ended July 2, 2023, we recognized a loss recorded within our condensed consolidated statements of operations related to the loan receivables held for sale that were transferred and derecognized during the three and six month periods ended July 2, 2023, equal to the net carrying value or fair value of the financial assets.

3 In the three and six months ended July 2, 2023, we recorded a valuation allowance of $0.5 million related to the write-down of our loan receivables held for sale to fair value on our condensed consolidated balance sheets.