Equity Investments Equity Investments (Tables)

6 Months Ended

Jun. 28, 2020

Equity Method Investments and Joint Ventures [Abstract]

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)	June 28, 2020		December 29, 2019
Equity investments with readily determinable fair value:
Enphase Energy, Inc.	$	249,152	$	173,908
Total equity investments with readily determinable fair value	249,152		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 ²	7,500		8,000
SunStrong Partners, LLC ²	2,276		9,500
Total equity investment with fair value option	9,776		17,500
Equity method investments
Huansheng Photovoltaic (Jiangsu) Co., Ltd.	25,826		26,533

Total equity method investments	25,826		26,533
Total equity investments	$	292,235	$	226,602

¹Includes 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 three and six months ended June 28, 2020, we received a cash dividend of $0.0 million and $2.5 million, respectively from an investee representing a return of capital. In addition, during the three and six months ended June 28, 2020, we recorded a gain of $0.0 million and $1.3 million, respectively 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.

²During the three months ended June 28, 2020, we received a total of $7.7 million in cash proceeds, $7.2 million from SunStrong Partners and $0.5 million from SunStrong. The distribution was approved by the SunStrong Board of Directors on June 24, 2020. The distribution reduced our equity investment balance in SunStrong Partners and SunStrong classified in "other long-term assets" on our condensed consolidated balance sheet.

Schedule of Other Ownership Interests

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						Six Months Ended
(In thousands)	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
Summarized statements of operations information:
Revenue	$	29,293	$	22,626	$	58,757	$	22,626
Gross loss	(5,458)		(1,209)		(6,896)		(1,209)
Net (loss) income	(217)		3,256		21,423		3,256


	As of
(In thousands)	June 28, 2020		December 29, 2019
Summarized balance sheet information:
Current assets	$	93,297	$	225,576
Long-term assets	1,278,564		1,049,451
Current liabilities	42,048		125,601
Long-term liabilities	1,044,357		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 10. Equity Investments for related-party transactions with unconsolidated entities in which we have a direct equity investment.


	As of
(In thousands)	June 28, 2020		December 29, 2019
Accounts receivable	$	3,501	$	6,707
Contract assets	24,034		8,133
Prepaid and other assets	1,906		—
Accounts payable	13,309		4,921
Contract liabilities, current portion¹	13,217		18,786
Contract liabilities, net of current portion¹	31,896		35,427

¹Refer to Note 9. Commitments and Contingencies - Advances from Customers.


	Three Months Ended						Six Months Ended
(In thousands)	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
Revenue:
Solar power systems, components, and other	$	34,533	$	6,641	$	63,779	$	12,684
Cost of revenue:
Solar power systems, components, and other	16,475		5,032		44,324		9,374




Other income
Gain on early retirement of convertible debt	—		—		1,850		—
Interest expense:
Guarantee fees incurred under the Credit Support Agreement	—		93		13		244
Interest expense incurred on the 0.875% debentures due 2021	428		547		832		1,094
Interest expense incurred on the 4.00% debentures due 2023	1,000		1,000		1,998		2,000

Related-party transactions with investees are as follows:


	As of
(In thousands)	June 28, 2020		December 29, 2019
Accounts receivable	$	22,400	$	23,900
Accounts payable	42,749		62,811
Accrued liabilities	4,215		11,219
Contract liabilities	27,001		29,599


	Three Months Ended						Six Months Ended
(In thousands)	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
Payments made to investees for products/services	$	58,352	$	75,497	$	132,633	$	99,018
Revenues and fees received from investees for products/services	43,257		20,506		99,192		21,406