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Balance Sheet Components (Tables)

9 Months Ended

Oct. 01, 2023

Balance Sheet Related Disclosures [Abstract]

Accounts Receivable, Net


	As of
	October 1, 2023		January 1, 2023
(In thousands)			(As Restated)
Accounts receivable, gross	$	217,748	$	184,733
Less: allowance for credit losses	(13,829)		(14,750)
Less: allowance for sales returns	(230)		(309)
Accounts receivable, net	$	203,689	$	169,674

Schedule of Accounts Receivable, Allowance for Credit Loss

Allowance for Credit Losses


	Three Months Ended				Nine Months Ended
(In thousands)	October 1, 2023		October 2, 2022		October 1, 2023		October 2, 2022
Balance at beginning of period	$	13,871	$	15,659	$	14,750	$	14,375
Provision (recoveries) for credit losses	33		(74)		1,340		1,854
Write-offs	(75)		(330)		(2,261)		(974)
Balance at end of period	$	13,829	$	15,255	$	13,829	$	15,255

Schedule of Inventory

Inventories


	As of
	October 1, 2023		January 1, 2023
(In thousands)			(As Restated)
Photovoltaic modules	$	172,178	$	136,006
Microinverters	54,610		48,645
Energy storage systems	47,106		62,861
Other solar power system component materials	50,590		48,219
Inventories1	$	324,484	$	295,731

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
	October 1, 2023		January 1, 2023
(In thousands)			(As Restated)
Deferred project costs	$	74,777	$	125,604

Deferred costs for solar power systems	118,302		34,124



Related-party receivables	7,499		3,959



Other	32,980		34,124
Prepaid expenses and other current assets	$	233,558	$	197,811

Schedule of Property, Plant and Equipment, Net

Property, Plant and Equipment, Net


	As of
	October 1, 2023		January 1, 2023
(In thousands)			(As Restated)
Testing equipment and tools	$	1,973	$	1,157
Leasehold improvements	17,137		16,960
Solar power systems	12,709		10,271
Computer equipment	15,015		14,411
Internal-use software	82,515		71,477
Furniture and fixtures	7,895		8,088
Transportation equipment	6,481		3,941
Vehicle finance leases	26,221		12,316
Work-in-progress	9,187		5,958
Property, plant and equipment, gross2	179,133		144,579
Less: accumulated depreciation and impairment2,3	(73,064)		(68,106)
Property, plant, and equipment, net1,3	$	106,069	$	76,473

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

2 Our property, plant, and equipment includes fully depreciated fixed assets. When any of 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 October 1, 2023 and January 1, 2023, $21.9 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 nine months ended October 1, 2023, we recorded depreciation expense, including accretion expense related to our asset retirement obligations, of $11.4 million and $30.5 million, respectively. For the three and nine months ended October 2, 2022, we recorded depreciation expense of $6.0 million and $14.0 million, respectively.

Schedule of Other Long-Term Assets

Other Long-term Assets


	As of
	October 1, 2023		January 1, 2023
(In thousands)			(As Restated)

Equity investments without readily determinable fair value	$	39,803	$	31,699
Equity investments with fair value option (“FVO”)	29,594		18,346

Cloud computing arrangements (“CCA”) implementation costs, net of current portion1	2,759		7,934

Deposits with related parties	6,549		7,329
Retail installment contract receivables, net of current portion2, 3	88,026		98,001
Long-term deferred project costs	2,837		3,109

Derivative assets	3,712		2,293
Debt issuance costs	—		3,556
Loan receivables held to maturity, net of current portion3	811		—
Other	13,217		14,660
Other long-term assets	$	187,308	$	186,927

1 For the three and nine months ended October 1, 2023, we recorded $1.4 million and $4.3 million, respectively, of amortization expense related to the amortization of our capitalized CCA costs. For the three and nine months ended October 2, 2022, we recorded $1.6 million and $3.5 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 $21.4 million and $22.5 million, and allowance for credit losses of $1.1 million and $0.4 million as of October 1, 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 October 1, 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 October 1, 2023, the average FICO score of our customers under other loan receivable agreements is above 760, which is also categorized as a “Very Good” credit profile by the Fair Isaac Corporation.

Schedule of Accrued Liabilities

Accrued Liabilities


	As of
	October 1, 2023		January 1, 2023
(In thousands)			(As Restated)
Employee compensation and employee benefits	$	22,415	$	36,452
Interest payable	734		8,549
Short-term warranty reserves	26,157		29,677
Restructuring reserve	1,674		2
Legal expenses	3,989		2,681
Taxes payable	9,429		9,641
Payable to related parties	7,959		11,239
Short-term finance lease liabilities	5,958		2,949

Indemnification obligations retained from C&I Solutions sale1	22,608		20,781
Short-term asset retirement obligation liability	1,773		1,396
Other	27,947		24,752
Accrued liabilities	$	130,643	$	148,119

1 As of October 1, 2023, we had a total of $20.4 million and $2.2 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 $7.3 million of warranty reserves and other indemnifications, respectively.

Schedule of Other Long-Term Liabilities

Other Long-term Liabilities


	As of
	October 1, 2023		January 1, 2023
(In thousands)			(As Restated)
Deferred revenue	$	32,597	$	35,864
Long-term warranty reserves	27,278		23,931
Unrecognized tax benefits	13,098		12,295



Related-party liabilities	1,458		1,458
Long-term finance lease liabilities	15,709		7,878

Indemnification obligations retained from C&I Solutions sale1	10,904		11,385
Long-term asset retirement obligation liability	2,536		2,395
Other	18,826		19,496
Other long-term liabilities	$	122,406	$	114,702

1 As of October 1, 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)	October 1, 2023		January 1, 2023
Cumulative translation adjustment	$	9,577	$	9,576
Net gain on long-term pension liability obligation	1,992		1,992


Accumulated other comprehensive income	$	11,569	$	11,568