Note 4 - Balance Sheet Components

12 Months Ended

Jan. 02, 2021

Notes to Financial Statements

Supplemental Balance Sheet Disclosures [Text Block]

Note 4 - Balance Sheet Components

Accounts Receivable

Accounts receivable do not bear interest and are shown net of an allowance for expected lifetime credit losses, which reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine this allowance through an assessment of known troubled accounts, analysis of our accounts receivable aging, historical experience, expectations for future economic conditions, management judgment, and other available evidence.

	January 2,			December 28,
(In thousands)	2021			2019
Accounts receivable	$	64,635		$	65,023
Less: Allowance for credit losses		(54	)		(106	)
Accounts receivable, net of allowance for credit losses	$	64,581		$	64,917

We had no material bad debt expense in fiscal 2020, 2019, or 2018.

Inventories

	January 2,		December 28,
(In thousands)	2021		2019
Work in progress	$	34,724	$	39,855
Finished goods		29,875		15,125
Total inventories, net	$	64,599	$	54,980

Accrued Expenses

Included in Accrued expenses in the Consolidated Balance Sheets are the following balances:

	January 2,		December 28,
(In thousands)	2021		2019
Liability for non-cancelable contracts	$	8,492	$	6,964
Current portion of operating lease liabilities		4,149		4,686
Other accrued expenses		8,770		8,941
Total accrued expenses	$	21,411	$	20,591

Cloud Based Computing Implementation Costs

Under the guidance in ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), we are capitalizing the implementation costs for cloud computing arrangements, mainly for our integrated distributor accounting management systems. These cloud-based computing implementation costs are recorded in Prepaid expenses and other current assets and Other long-term assets on our Consolidated Balance Sheets. The following table summarizes activity during fiscal 2020:

(In thousands)
Cloud based computing implementation costs as of December 28, 2019	$	2,543
Costs capitalized		983
Amortization		(695	)
Cloud based computing implementation costs as of January 2, 2021	$	2,831