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Note 4 - Balance Sheet Components

12 Months Ended

Dec. 31, 2022

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.

	*December 31,*		*January 1,*
(In thousands)	*2022*		*2022*
Accounts receivable	$	94,018	$	79,859
Less: Allowance for credit losses		—		—
Accounts receivable, net of allowance for credit losses	$	94,018	$	79,859

We had no material bad debt expense in fiscal 2022, 2021, or 2020.

Inventories

	*December 31,*		*January 1,*
(In thousands)	*2022*		*2022*
Work in progress	$	58,269	$	43,546
Finished goods		52,106		24,048
Total inventories, net	$	110,375	$	67,594

Accrued Liabilities

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

	*December 31,*		*January 1,*
(In thousands)	*2022*		*2022*
Contract liability under ASC 606	$	17,666	$	4,768
Liability for non-cancelable contracts		10,498		9,930
Current portion of operating lease liabilities		6,454		5,696
Liability for production materials		6,002		—
Other accrued liabilities		7,847		6,050
Total accrued liabilities	$	48,467	$	26,444

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 the periods presented:

(In thousands)
Cloud based computing implementation costs as of January 2, 2021	$	2,831
Costs capitalized		324
Amortization		(775	)
Cloud based computing implementation costs as of January 1, 2022	$	2,380
Costs capitalized		63
Amortization		(841	)
Cloud based computing implementation costs as of December 31, 2022	$	1,602