Discontinued Operations (Tables)

9 Months Ended

Sep. 27, 2020

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

The following table presents the assets and liabilities of Maxeon Solar as of December 29, 2019 presented as assets and liabilities of discontinued operations on the condensed consolidated balance sheet:

(In thousands)	December 29, 2019
Assets:
Current Assets:
Cash and cash equivalents	$	120,956
Restricted cash and cash equivalents, current portion	—
Restricted short-term marketable securities	6,187
Accounts receivable, net	98,598
Contract assets, current portion	—
Inventories	194,852
Advances to suppliers, current portion	75,545
Prepaid expenses and other current assets	34,489
Total current assets of discontinued operations	530,627
Property, plant and equipment, net	267,866
Operating lease right-of-use assets	10,559
Advances to suppliers, net of current portion	13,993
Other long-term assets	53,395
Total assets of discontinued operations	$	876,440
Liabilities:
Current Liabilities:
Accounts payable	$	234,697
Accrued and other current liabilities1	87,614
Contract liabilities, current portion	47,096
Short-term debt and current portion of long-term debt	60,383
Total current liabilities of discontinued operations	431,694
Long-term debt	1,487
Convertible debt, net of current portion	—
Contract liabilities, net of current portion	35,616
Other long-term liabilities	46,526
Total liabilities of discontinued operations	$	524,755

The following table presents financial results of Maxeon Solar presented as discontinued operations in the Company's income statement in the corresponding periods:

	Three Months Ended				Nine Months Ended
(In thousands)	September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
Net revenues1	$	63,272	$	189,916	$	357,164	$	569,856
Gross income (loss)1	(30,820)		2,756		(26,609)		(46,637)
Operating expenses2	33,177		30,601		92,581		82,191
Operating loss	(63,997)		(27,845)		119,191		(128,828)
Loss before income taxes and equity in earnings (losses) of unconsolidated investees	(70,761)		(29,417)		(125,599)		(131,181)
Provision for income taxes	6,137		(2,450)		3,191		(7,169)
Equity in earnings (losses) of unconsolidated investees	58		(807)		(586)		(1,334)
Net loss from discontinued operations, net of taxes	(64,566)		(32,674)		(122,994)		(139,684)
Net income from discontinued operations attributable to noncontrolling interests and redeemable noncontrolling interests	(258)		(987)		(1,313)		(3,057)
Net loss from discontinued operations attributable to stockholders	$	(64,824)	$	(33,661)	$	(124,307)	$	(142,741)

1 Excludes intersegment revenue and gross margin from sale of photovoltaic modules to SunPower prior to the Spin-Off, which is eliminated in consolidation.

2 Operating expenses include separation costs classified within discontinued operations.

The following table presents significant non-cash items and capital expenditures of discontinued operations:

	Nine Months Ended
(In thousands)	September 27, 2020		September 29, 2019
Depreciation and amortization	$	31,143	$	34,759
Stock-based compensation	6,401		5,246
Equity in losses of unconsolidated investees	586		1,334
Gain from sale of investments	—		6,275
Purchases of property, plant and equipment	10,707		31,523
Aged supplier financing balances reclassified from accounts payable to short-term debt	63,111		22,852

The assets and liabilities of our O&M business that were sold in the transaction are summarized below:

(In thousands)
Accounts receivable	$	5,693
Contract assets, current portion	3,239
Prepaid expenses, other current assets, and cash	4,786
Other long-term assets	634
Total assets	14,352
Accounts payable	3,434
Contract liabilities, current portion	4,204
Other current liabilities	808
Other long-term liabilities	2,245
Total liabilities	10,691
Net assets	$	3,661

Net proceeds received were as follows:

(In thousands)
Purchase price	$	36,300
Holdback receivables, including contracts not novated	(15,000)
Working capital adjustment, upon close	(5,324)
Net proceeds received	$	15,976

Net gain on sale for the nine months ended September 27, 2020 was as follows:

(In thousands)	Nine Months Ended
	September 27, 2020
Net proceeds received	$	15,976
Estimated receivable from amount held back for retained obligations	7,199
Liabilities for loss-making contracts retained	(6,026)
Book value of net assets sold	(3,661)
Working capital adjustment, post close	(3,030)
Net gain on sale	$	10,458