Fair Value Measurements (Tables)

9 Months Ended

Sep. 27, 2020

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis

The following table summarizes our assets and liabilities measured and recorded at fair value on a recurring basis as of September 27, 2020 and December 29, 2019:

	September 27, 2020								December 29, 2019
(In thousands)	Total Fair Value		Level 3		Level 2		Level 1		Total Fair Value		Level 3		Level 2		Level 1
Assets
Other long-term assets:
Equity investments with fair value option ("FVO")	9,924		9,924		—		—		17,500		17,500		—		—
Equity investments with readily determinable fair value	331,293		—		—		331,293		173,908		—		—		173,908
Total assets	$	341,217	$	9,924	$	—	$	331,293	$	191,408	$	17,500	$	—	$	173,908
Liabilities
Other long-term liabilities:
Interest rate swap contracts	633		—		633		—		373		—		373		—
Total liabilities	$	633	$	—	$	633	$	—	$	373	$	—	$	373	$	—

Equity Method Investment Movements

The following table summarizes movements in equity investments for the nine months ended September 27, 2020. There were no internal movements to or from Level 3 from Level 1 or Level 2 for the nine months ended September 27, 2020.

(In thousands)	Beginning balance as of December 29, 2019	Equity Distribution1	Additional Investment2	Ending balance as of September 27, 2020
Equity investments with FVO	$17,500	$(7,724)	$148	$9,924

1 During the second quarter of fiscal 2020, we received a total of $7.7 million in cash proceeds. Proceeds of $7.2 million were received from SunStrong Partners and proceeds of $0.5 million were received 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.

2 During the three months ended September 27, 2020, we contributed a total of $0.1 million additional capital to purchase Class B member units in Ultralight 2 HoldCo, LLC.

Level 3 significant unobservable input sensitivity

The following table summarizes the significant unobservable inputs used in Level 3 valuation of our investments carried at fair value as of September 27, 2020. Included in the table are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments.

2020
Assets:	Fair value		Valuation Technique	Unobservable input	Range (Weighted Average)
Other long-term assets:
Equity investments	$	9,924	Discounted cash flows	Discount rate Residual value	12.5%-13% 1 7.5% - 7.75% 1
Total assets	$	9,924

1 The primary unobservable inputs used in the fair value measurement of our equity investments, when using a discounted cash flow model, are the discount rate and residual value. Significant increases (decreases) in the discount rate in isolation would result in a significantly lower (higher) fair value measurement. We estimate the discount rate based on our projected cost of equity. We estimate the residual value based on the contracted systems in place in the years being projected. Significant increases (decreases) in the residual value in isolation would result in a significantly higher (lower) fair value measurement.