Equity Investments (Tables)

9 Months Ended

Oct. 03, 2021

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Equity Method Investments

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

	As of
(In thousands)	October 3, 2021		January 3, 2021
Equity investments with readily determinable fair value:
Enphase Energy, Inc.	$	388,403	$	614,148
Total equity investments with readily determinable fair value 1	388,403		614,148
Equity investments without readily determinable fair value:
Project entities	122		122
Other equity investments without readily determinable fair value	679		679
Total equity investments without readily determinable fair value	801		801
Equity investments with fair value option:
SunStrong Capital Holdings, LLC	8,374		7,645
SunStrong Partners, LLC	—		2,279
Total equity investment with fair value option	8,374		9,924
Total equity investments	$	397,578	$	624,873

1 During the three months ended October 3, 2021, we sold one million shares of Enphase common stock for cash proceeds. As of October 3, 2021, we currently have two million shares of Enphase common stock within current assets as short-term investments, and 0.5 million shares

of Enphase common stock within other long-term assets. Refer to Note 6. Fair Value Measurements and Note 4. Balance Sheet Components for details.

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				Nine Months Ended
(In thousands)	October 3, 2021		September 27, 2020		October 3, 2021		September 27, 2020
Summarized statements of operations information:
Revenues	$	34,363	$	31,299	$	100,157	$	90,056
Gross income (loss)	1,188		1,057		3,409		(5,839)
Net (loss) income	2,440		13,596		(40,633)		35,019

	As of
(In thousands)	October 3, 2021		January 3, 2021
Summarized balance sheet information:
Current assets	$	87,197	$	93,752
Long-term assets	1,536,690		1,378,382
Current liabilities	62,839		48,126
Long-term liabilities	1,219,489		1,130,484

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

Schedule of Related Party Transactions

The following are balances and transactions entered into with Total and its affiliates.

	As of
(In thousands)	October 3, 2021		January 3, 2021
Accounts receivable	$	289	$	76

	Three Months Ended				Nine Months Ended
(In thousands)	October 3, 2021		September 27, 2020		October 3, 2021		September 27, 2020
Revenue:
Solar power systems, components, and other	$	11,275	$	34,465	$	48,652	$	98,244
Cost of revenue:
Solar power systems, components, and other	11,945		26,177		43,762		70,501
Other income:
Gain on early retirement of convertible debt	—		104		—		1,954
Interest expense:
Guarantee fees incurred under the Credit Support Agreement	—		—		—		13
Interest expense incurred on the 0.875% debentures due 2021	—		384		—		1,216
Interest expense incurred on the 4.00% debentures due 2023	1,000		1,000		3,000		3,000

Related-party transactions and balances with SunStrong and SunStrong Partners are as follows:

	As of
(In thousands)	October 3, 2021		January 3, 2021
Accounts receivable	$	31,302	$	16,767
Accrued liabilities	—		7,996
Contract liabilities	29,033		27,426

	Three Months Ended				Nine Months Ended
(In thousands)	October 3, 2021		September 27, 2020		October 3, 2021		September 27, 2020
Revenues and fees received from investees for products/services	$	60,073	$	47,378	$	160,195	$	146,570
(Gain) loss on business divestitures, net1	—		—		(224)		—

1 The gain relates to the net impact of the sales of businesses to SunStrong during the second quarter of fiscal 2021. Refer to Note 5. Business Divestitures for additional details on the sales.

The below table summarizes our transactions with Maxeon Solar for the three and nine months ended October 3, 2021:

	Three Months Ended		Nine Months Ended
(In thousands)	October 3, 2021		October 3, 2021
Purchases of photovoltaic modules (recorded in cost of revenues)	$	61,967	$	167,313
Research and development expenses reimbursement received	$	7,736	$	25,759
Income from transition services agreement, net	$	468	$	5,211

The Company had the following balances related to transactions with Maxeon Solar as of October 3, 2021:

	As of
(In thousands)	October 3, 2021
Prepaid and other current assets	$	2,265
Accrued liabilities	$	7,838
Accounts payable	$	29,906
Other long-term liabilities	$	1,458