Equity Investments Equity Investments (Tables)

3 Months Ended

Mar. 29, 2020

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

The carrying value of our equity investments, classified as "other long-term assets" on our condensed consolidated balance sheets, are as follows:

	As of
(In thousands)	March 29, 2020		December 29, 2019
Equity investments with readily determinable fair value:
Enphase Energy, Inc.	$	178,090	$	173,908
Total equity investments with readily determinable fair value	178,090		173,908
Equity investments without readily determinable fair value:
Project entities	2,802		2,802
Other equity investments without readily determinable fair value1	4,679		5,859
Total equity investments without readily determinable fair value	7,481		8,661
Equity investments with fair value option:
SunStrong Capital Holdings, LLC	8,000		8,000
SunStrong Partners, LLC	9,500		9,500
Total equity investment with fair value option	17,500		17,500
Equity method investments
Huansheng Corporation	27,193		26,533
Total equity method investments	27,193		26,533
Total equity investments	$	230,264	$	226,602

¹ Includes a change in value of our investment for an equity investee attributable to partial return of capital and revaluation of our remaining shareholding in accordance with ASC 321 Investments – Equity Securities. During the quarter ended March 29, 2020, we received a cash dividend of $2.5 million from an investee representing a return of capital. In addition, during the quarter ended March 29, 2020, we recorded a gain of $1.3 million related to an increase in the fair value of our investment, based on observable market transactions with a third-party investor. This gain is presented within "Other, net" on our condensed consolidated statement of operations.

Schedule of Other Ownership Interests

The following summary of unaudited financial information of the unconsolidated VIEs, is derived from the unaudited financial statements of such VIEs. The following table presents summarized financial statements for SunStrong, a significant investee, based on unaudited information provided to us by the investee:1

	Three Months Ended
(In thousands)	March 29, 2020		March 31, 2019
Summarized statements of operations information:
Revenue	$	29,464	$	22,626
Gross loss	(1,438)		(1,209)
Net income	21,640		3,256

	As of
(In thousands)	March 29, 2020		December 29, 2019
Summarized balance sheet information:
Current assets	$	149,248	$	225,576
Long-term assets	1,185,328		1,049,451
Current liabilities	113,980		125,601
Long-term liabilities	866,389		847,365

¹Note that amounts are reported one quarter in arrears as permitted by applicable guidance.

Schedule of Related Party Transactions

The following related-party balances and amounts are associated with transactions entered into with Total and its Affiliates. Refer to Note 9. Equity Investments for related-party transactions with unconsolidated entities in which we have a direct equity investment.

	As of
(In thousands)	March 29, 2020		December 29, 2019
Accounts receivable	$	15,360	$	6,707
Contract assets	16,027		8,133
Prepaid and other assets	3,978		—
Accounts payable	13,306		4,921
Contract liabilities, current portion1	19,236		18,786
Contract liabilities, net of current portion1	32,125		35,427

¹ Refer to Note 8. Commitments and Contingencies - Advances from Customers.

	Three Months Ended
(In thousands)	March 29, 2020		March 31, 2019
Revenue:
Solar power systems, components, and other	$	29,246	$	6,043
Cost of revenue:
Solar power systems, components, and other	27,849		4,342
Research and development expense:
Offsetting contributions received under the R&D Agreement	—		(158)
Other income
Gain on early retirement of convertible debt	1,850		—
Interest expense:
Guarantee fees incurred under the Credit Support Agreement	13		151
Interest expense incurred on the 0.875% debentures due 2021	404		547
Interest expense incurred on the 4.00% debentures due 2023	998		1,000

Related-party transactions with investees are as follows:

	As of
(In thousands)	March 29, 2020		December 29, 2019
Accounts receivable	$	28,393	$	23,900
Accounts payable	48,389		62,811
Accrued liabilities	5,356		11,219
Contract liabilities	36,288		29,599

	Three Months Ended
(In thousands)	March 29, 2020		March 31, 2019
Payments made to investees for products/services	$	74,281	$	23,521
Revenues and fees received from investees for products/services	55,935		900