Loan Receivables Held For Sale (Tables)

9 Months Ended

Oct. 01, 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 nine months ended October 1, 2023:

	Three Months Ended		Nine Months Ended
(In thousands)	October 1, 2023		October 1, 2023
Balance at beginning of period	$	11,947	$	—
Additions1	67,924		110,882
Proceeds from sales	(67,402)		(98,754)
Gain (loss) on sale2	3,310		3,676
(Increase) decrease in valuation allowance3	(336)		(361)
Balance at end of period	$	15,443	$	15,443

1 In the nine months ended October 1, 2023, we capitalized $5.3 million of transaction costs related to the structuring of the sale of receivables, which are presented within “prepaid expenses and other current assets” on our condensed consolidated balance sheets.

2 In the three and nine months ended October 1, 2023, we recognized a gain of $3.1 million and $3.6 million, respectively, recorded within our condensed consolidated statements of operations related to the loan receivables held for sale that were transferred and derecognized during the periods. In addition, we recorded an unrealized gain of $0.2 million and $0.1 million, respectively, from contracts sold during the three and nine months ended October 1, 2023 but not yet recognized as revenue, which was deferred and recorded within “contract liabilities” on our condensed consolidated balance sheets.

3 In the three and nine months ended October 1, 2023, we recorded a valuation allowance related to the write-down of our loan receivables held for sale to fair value on our condensed consolidated balance sheets.