0001796898-21-000016 | 20-F | XBRL Viewer | Maxeon Solar Technologies LTD

Impairment of manufacturing assets

^[1]

$ 844,836,000

$ 1,198,301,000

$ 912,313,000

Cost of revenue

^[1]

854,617,000

1,200,610,000

1,007,474,000

354,768,000

Gross loss

(9,781,000)

(2,309,000)

(449,929,000)

Operating expenses

Research and development

34,194,000

36,997,000

50,031,000

Sales, general and administrative

^[1]

86,202,000

96,857,000

82,041,000

Restructuring (benefits) charges

(517,000)

7,766,000

Total operating expenses

120,396,000

133,337,000

139,838,000

Operating loss

(130,177,000)

(135,646,000)

(589,767,000)

Other income (expense), net

Interest expense

^[1]

(31,859,000)

(25,831,000)

(25,889,000)

Other, net

36,349,000

(1,961,000)

13,469,000

Other income (expense), net

4,490,000

(27,792,000)

(12,420,000)

Loss before income taxes and equity in losses of unconsolidated investees

(125,687,000)

(163,438,000)

(602,187,000)

(Provision for) benefit from income taxes

(12,127,000)

(10,122,000)

1,050,000

Equity in losses of unconsolidated investees

(3,198,000)

(5,342,000)

(2,943,000)

Net loss

(141,012,000)

(178,902,000)

(604,080,000)

Net (income) loss attributable to noncontrolling interests

(1,619,000)

(4,157,000)

266,000

Net loss attributable to stockholders

$ (142,631,000)

$ (183,059,000)

$ (603,814,000)

Loss per share:

Basic and diluted (USD per share)

$ (5.82)

$ (8.61)

$ (28.39)

Weighted average shares used in loss per share computation:

Basic and diluted (shares)

24,502

21,265

[1]

We have related-party transactions with SunPower and Total S.A. and its affiliates as well as unconsolidated entities in which we have a direct equity investment. These related-party transactions are recorded within the “Revenue,” “Cost of revenue,” “Operating expenses: Sales, general and administrative,” and “Other expense, net: Interest expense” financial statement line items in our Consolidated and Combined Statements of Operations (see Note 3, Note 4 and Note 10).

CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (141,012)	$ (178,902)	$ (604,080)
Components of other comprehensive loss, net of taxes
Currency translation adjustment	(3,818)	(654)	(3,454)
Net gain (loss) in derivatives (Note 12)	782	(1,094)	397
Net gain (loss) on long-term pension liability adjustment	263	(1,862)	1,628
Total other comprehensive loss	(2,773)	(3,610)	(1,429)
Total comprehensive loss	(143,785)	(182,512)	(605,509)
Comprehensive (income) loss attributable to noncontrolling interests	(1,619)	(4,157)	266
Comprehensive loss attributable to stockholders	$ (145,404)	$ (186,669)	$ (605,243)

CONSOLIDATED AND COMBINED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional paid-in Capital	Net Parent Investment	Accumulated Deficit	Accumulated Other Comprehensive Loss	Equity Attributable to the Company	Noncontrolling Interests
Balances, beginning balance at Dec. 31, 2017	$ 844,216			$ 845,382		$ (2,579)	$ 842,803	$ 1,413
Increase (Decrease) in Stockholders' Equity
Net (loss) income	(604,080)			(603,814)			(603,814)	(266)
Other comprehensive loss	(1,429)					(1,429)	(1,429)
Net parent contribution	196,641			196,641			196,641
Balances, ending balance at Dec. 30, 2018	435,348			438,209		(4,008)	434,201	1,147
Increase (Decrease) in Stockholders' Equity
Net (loss) income	(178,902)			(183,059)			(183,059)	4,157
Other comprehensive loss	(3,610)					(3,610)	(3,610)
Net parent contribution	114,687			114,687			114,687
Balances, ending balance at Dec. 29, 2019	367,523	$ 0	$ 0	369,837	$ 0	(7,618)	362,219	5,304
Shares ending balance (shares) at Dec. 29, 2019		0
Increase (Decrease) in Stockholders' Equity
Net (loss) income	(141,012)			(134,190)	(8,441)		(142,631)	1,619
Other comprehensive loss	(2,773)					(2,773)	(2,773)
Net parent contribution	(129,586)			(129,586)			(129,586)
Issuance of common stock, net of issuance cost (shares)		8,933,007
Issuance of common stock, net of issuance cost	297,541		297,541				297,541
Issuance of physical delivery forwards (shares)		3,796,867
Issuance of Physical Delivery Forward	58,466		58,466				58,466
Reclassification of Physical Delivery Forward	(64,089)		(64,089)				(64,089)
Issuance of convertible debt, net of issuance cost	52,189		52,189				52,189
Conversion of Net parent investment into common stock, net of issuance cost (shares)		21,265,242
Conversion of Net parent investment into common stock, net of issuance cost	(776)		105,285	(106,061)			(776)
Distribution to noncontrolling interests	(278)							(278)
Recognition of share-based compensation	2,082		2,082				2,082
Balances, ending balance at Jan. 03, 2021	$ 439,287	$ 0	$ 451,474	$ 0	$ (8,441)	$ (10,391)	$ 432,642	$ 6,645
Shares ending balance (shares) at Jan. 03, 2021	33,995,116	33,995,116

CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

12 Months Ended

Jan. 03, 2021

Dec. 29, 2019

Dec. 30, 2018

Cash flows from operating activities

Net loss

$ (141,012)

$ (178,902)

$ (604,080)

Adjustments to reconcile net loss to net cash used in operating activities

Adjustments to reconcile net loss to net cash used in operating activities

47,328

53,448

82,894

Stock-based compensation

7,250

7,135

8,580

Non-cash interest expense

19,851

23,841

24,035

Equity in losses of unconsolidated investees

3,198

5,342

2,943

Gain on retirement of property, plant and equipment

(641)

Deferred income taxes

(1,330)

804

(2,243)

Gain on equity investments

(1,822)

Remeasurement gain on Physical Delivery Forward and Prepaid Forward

(38,236)

Impairment of property, plant and equipment

367,859

Gain from contractual obligations satisfied with inventory

(11,419)

Other, net

3,078

249

1,024

Changes in operating assets and liabilities

Accounts receivable

71,231

(77,830)

(32,540)

Contract assets

(1,806)

264

1,243

Inventories

25,212

28,415

18,076

Prepaid expenses and other assets

(5,590)

960

16,608

Operating lease right-of-use assets

2,264

2,449

Advances to suppliers

28,473

50,163

44,444

Advances to suppliers

(143,462)

53,451

(75,483)

Contract liabilities

(61,344)

6,460

1,236

Operating lease liabilities

(1,804)

(2,589)

Net cash used in operating activities

(189,162)

(26,340)

(156,823)

Cash flows from investing activities

Purchases of property, plant and equipment

(27,689)

(41,905)

(39,621)

Proceeds from disposal of short-term investments

6,572

Purchase of short-term investments

(1,340)

Proceeds from sale of assets

1,283

265

Purchases of intangibles

(231)

Installment payment for acquisition of subsidiary

(30,000)

Proceeds from sale of unconsolidated investee

3,220

Proceeds from equity method investment, distribution

2,462

Cash paid for equity method investments

(13,348)

Net cash used in investing activities

(45,492)

(41,871)

(52,969)

Cash flows from financing activities

Proceeds from debt

236,446

253,314

227,676

Repayment of debt

(226,664)

(254,649)

(231,870)

Net proceeds from issuance of convertible debt

190,330

Net proceeds from issuance of common stock

296,765

Payment for realized amount on underwriting physical delivery forward

(1,606)

Payment for prepaid forward

(40,000)

Distribution to noncontrolling interest

(278)

Repayment of finance lease obligations & other debt

(651)

(1,190)

(1,071)

Net parent (distribution) contribution

(133,996)

92,409

171,089

Net cash provided by financing activities

320,346

89,884

165,824

Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents

381

Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents

85,769

22,054

(43,907)

Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period

123,803

101,749

145,656

Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period

209,572

123,803

101,749

Non-cash transactions

Property, plant and equipment purchases funded by liabilities

27,736

13,377

8,410

Right-of-use assets obtained in exchange for lease obligations

^[1]

4,791

21,209

Interest expense financed by SunPower

11,333

17,000

Aged supplier financing balances reclassified from accounts payable to short-term debt

23,933

45,352

Supplemental cash flow information

Cash paid for interest

3,443

1,930

1,269

Cash paid for income taxes

$ 12,486

$ 8,109

$ 7,590

[1]	Amounts for fiscal year 2019 include the transition adjustment for the adoption of ASC 842 and new Right-of-Use (“ROU”) asset additions.

CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
Cash and cash equivalents	$ 206,744	$ 120,956	$ 101,713
Restricted cash and restricted cash equivalents	2,483	2,845	16
Restricted cash and restricted cash equivalents, net of current portion, included in other long-term assets	345	2	20
Total cash, cash equivalents, restricted cash and restricted cash equivalents shown in statements of cash flows	$ 209,572	$ 123,803	$ 101,749

BACKGROUND AND BASIS OF PRESENTATION	12 Months Ended
BACKGROUND AND BASIS OF PRESENTATION	Jan. 03, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BACKGROUND AND BASIS OF PRESENTATION	BACKGROUND AND BASIS OF PRESENTATION Background On November 11, 2019, SunPower Corporation (“SunPower”) announced its intention to separate into two independent publicly traded companies: one comprising its solar panel cell and solar manufacturing operations and supply to resellers and commercial and residential end customers outside of the United States of America and Canada (the “Domestic Territory”), which will conduct business as Maxeon Solar Technologies, Pte. Ltd. (the “Company,” “Maxeon,” “we,” “us,” and “our”), a company incorporated under the Laws of Singapore and a wholly owned subsidiary of SunPower, and one comprising its solar panel manufacturing operations, equipment supply, and sales of energy solutions and services in the Domestic Territory, including direct sales of turn-key engineering, procurement and construction services, sales to its third-party dealer network, sales of energy under power purchase agreements, storage and services solutions, cash sales and long-term leases directly to end customers which will continue as SunPower. On August 26, 2020 (the “Distribution Date”), SunPower completed the previously announced Spin-off (the “Spin-off”) of Maxeon. The Spin-off was completed by way of a pro rata distribution of all of the then-issued and outstanding ordinary shares, of Maxeon (the “Maxeon shares”) to holders of record of SunPower’s common stock (the “Distribution”) as of the close of business on August 17, 2020. As a result of the Distribution of the Maxeon shares, on the Distribution Date, Maxeon became an independent, public company under the name Maxeon Solar Technologies, Ltd. and the Maxeon shares started trading on the NASDAQ Global Select Market under the symbol “MAXN.” In connection with the Spin-off, Maxeon and SunPower entered into a number of agreements providing for the framework of the relationship between the two companies following the Spin-off. On November 8, 2019, we entered into the Separation and Distribution Agreement with SunPower which sets forth our agreements with SunPower regarding the principal actions to be taken in connection with the separation and distribution. Immediately after the Distribution and pursuant to the terms of the November 8, 2019 Investment Agreement (the “Investment Agreement”), Maxeon and Tianjin Zhonghuan Semiconductor Co., Ltd., a PRC joint stock limited company (“TZS”), completed the previously announced transaction in which Zhonghuan Singapore Investment and Development Pte. Ltd., a Singapore private limited company (“TZS SG”) and an affiliate of TZS, purchased from Maxeon, for $298.0 million, 8,915,692 of Maxeon shares (the “TZS Investment”), representing approximately 29.5% of the outstanding Maxeon shares after giving effect to the Spin-off and the TZS Investment. Following the TZS Investment, Total Solar INTL SAS (“Total Solar”), Total Gaz Electricité Holdings France SAS, (“Total Gaz”, with Total Solar, each an affiliate of Total SE and collectively “Total”) held approximately a 36.4% beneficial ownership of Maxeon’s ordinary shares. In connection with the TZS Investment, Maxeon, Total Solar, Total Gaz, and TZS SG, entered into a Shareholders Agreement relating to certain rights and obligations of each of Total and TZS SG bearing on Maxeon’s governance and the ability of Total and TZS SG to buy, sell or vote their Maxeon shares. At the closing of the TZS Investment, Maxeon also entered into a Registration Rights Agreement with Total and TZS SG, granting each of the shareholders certain registration rights with regard to their Maxeon shares. Liquidity Prior to the Spin-off, cash and the financing of our operations have historically been managed by SunPower. The components of Net parent (distribution) contribution include cash payments by SunPower to settle our obligations. These transactions were considered to be effectively settled for cash at the time the transaction is recorded. The Net parent (distribution) contribution represents the settlement as part of the Spin-off exercise. The global spread of COVID-19 has created significant uncertainty and economic disruptions worldwide. In our response to the COVID-19 pandemic, we instituted certain measures, including requirements to work remotely for the majority of our workforce, travel restrictions and the idling of our factories in France, Malaysia, Mexico, and the Philippines consistent with actions taken or recommended by governmental authorities. All of our factories resumed production as of May 2020, in compliance with the relevant local restrictions. We implemented several mitigating actions to prudently manage our business during the current industry uncertainty relating to the COVID-19 pandemic. These actions include reducing management salaries, freezing hiring and merit increases, reducing capital expenditures and discretionary spending, and temporarily moving most of our employees to a four day work week in recognition of reduced demand and workloads due to the pandemic. Most of our employees reverted back to a full work week during the last week of June 2020 and returned to full salary during the last week of July 2020. In addition, we rely on a limited number of suppliers for certain raw materials and components for our solar cells, panels and power systems, such as polysilicon, inverters and module material, and specifically our Huansheng joint venture for our Performance line modules. Events that disrupt production such as the recent polysilicon plant fires, flooding and COVID-19 would impact the overall supply of raw materials and components, which would in turn increase our costs and those of our suppliers. The resulting impact of such cost challenges at our Huansheng joint venture would negatively affect our results of operation as well. We continue to focus on improving our overall operating performance and liquidity, such as taking proactive steps to overcome freight and supply cost challenges, continuing optimization of our factories, controlling operating expenses, and managing cash flows and working capital. Despite the challenging and volatile economic conditions, we believe that our total cash and cash equivalents will be sufficient to meet our obligations over the next 12 months from the date of issuance of our financial statements. We have considered the amended supply agreements with SunPower and our Huansheng joint venture which provide for flexibility of expedited repayment and extended credit period, respectively at our discretion. We have historically been successful in our ability to work with our vendors to obtain favorable payment terms, when possible, and our ability to reduce manufacturing output to reduce inventory in order to optimize our working capital. We may also choose to explore additional options in connection with our short-term liquidity needs, such as selling raw materials inventory to third parties, liquidating certain investments, implementing additional restructuring plans, and deferring or canceling uncommitted capital expenditures and other investment or acquisition activities. From time to time, we evaluate our staffing levels in response to changes in our business needs and demand for our products in order to manage costs and improve performance which may result in restructuring of our workforce and associated costs. We may not be able to meet the financial covenants underlying the Bank Facilities (Note 11) which would limit our ability to draw under these facilities. We intend to either renegotiate the Bank Facilities or seek to raise additional financing on more favorable terms. Additionally, from time-to-time and under market conditions that we believe are favorable to us, we may consider capital market transactions, including the offering of debt and equity securities. We maintain an effective shelf registration statement to allow for optionality. Although we have historically been able to generate liquidity, we cannot predict, with certainty, the outcome of our actions to generate liquidity as planned. Additionally, we are uncertain of the impact over time of the COVID-19 pandemic to our supply chain, manufacturing, and distribution as well as overall construction and consumer spending. While we currently do not anticipate the need to do so, if the COVID-19 pandemic causes adverse cash flow and liquidity trends greater than those we currently expect and have planned for, or if our ability to generate cash to support our operations is affected due to our challenges in obtaining supplies at competitive prices, we may find it necessary to seek additional financing. Basis of Presentation Prior to Spin-off Standalone financial statements have not been historically prepared for our business. These consolidated and combined financial statements of the Company have been derived (i) from the consolidated financial statements and accounting records of SunPower as if we had operated on our own during the periods presented and were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) prior to August 26, 2020 and (ii) subsequent to August 26, 2020, the consolidated financial statements of the Company as an independent public company. Prior to Spin-off, as there is no controlling financial interest present between or among the entities that comprise our business, we are preparing the financial statements of the Company on a combined basis. Net parent investment in the Company’s business is shown in lieu of equity attributable to the Company as there is no consolidated entity in which SunPower holds an equity interest. Net parent’s investment represents its interest in the recorded net assets of the Company. See Note 3. Net Parent Investment and Transactions with SunPower and Total and Total S.A Following the Spin-off, the audited consolidated financial statements include the accounts of the Company and its subsidiaries. All periods presented have been accounted for in conformity with GAAP and pursuant to the regulations of the SEC. The following paragraphs describe the significant estimates and assumptions applied by management prior to Spin-off which is included in the Consolidated and Combined Statements of Operations and Comprehensive Loss. The Consolidated and Combined Statements of Operations and Comprehensive Loss of the Company include all sales and costs directly attributable to the Company, including costs for facilities, functions and services used by the Company. The Consolidated and Combined Statements of Operations and Comprehensive Loss also reflect allocations of general corporate expenses from SunPower including, but not limited to, executive management, finance, legal, information technology, employee benefits administration, treasury, risk management, procurement, and other shared services. These allocations were made on a direct usage basis when identifiable, with the remainder allocated on the basis of revenue or headcount as relevant measures. Management of the Company and SunPower consider these allocations to be a reasonable reflection of the utilization of services by, or the benefits provided to, the Company. The allocations may not, however, reflect the expense the Company would have incurred as a standalone company for the period presented. Actual costs that may have been incurred if the Company had been a standalone company would depend on a number of factors, including the chosen organizational structure, what functions were outsourced or performed by employees and strategic decisions made in areas such as information technology and infrastructure. In December 2015, SunPower issued $425.0 million in principal amount of its 4.00% senior convertible debentures due 2023 (the “4.00% debentures due 2023”), the proceeds of which were used to finance our solar cell manufacturing facility in the Philippines which relates to our historical business. As such, interest and other costs associated with the 4.00% debentures due 2023 are reflected in the Consolidated and Combined Statements of Operations and Comprehensive Loss up to the date of Spin-off. However, as the 4.00% debentures due 2023 are legal obligations of SunPower and were not transferred to the Company. SunPower manages its global currency exposure by engaging in hedging transactions where management deems appropriate. This includes derivatives not designated as hedging instruments consisting of forward and option contracts used to hedge re-measurement of foreign currency denominated monetary assets and liabilities primarily for intercompany transactions, receivables from customers, and payables to third parties. The Company’s consolidated and combined financial statements include these hedging instruments to the extent the derivative instrument was designated as a hedging instrument of a hedged item (e.g., inventory) that is included in the consolidated and combined financial statements. Any changes in fair value of the hedging instrument previously recognized in the SunPower’s accumulated other comprehensive income (“AOCI”) for cash flow hedges are also included. SunPower maintains various stock-based compensation plans at a corporate level. The Company’s employees participated in those programs and a portion of the cost of those plans is included in the Company’s combined financial statements. SunPower also has defined benefit plans at a subsidiary level for certain employees. Where a legal entity within the Company sponsors the plan, the related financial statement amounts are included in the consolidated and combined financial statements following the single employer accounting model. As described in Note 13. Income Taxes, current and deferred income taxes and related tax expense have been determined based on the standalone results of the Company by applying Accounting Standards Codification No. 740, Income Taxes (“ASC 740”), to the Company’s operations in each country using the separate return approach, under which current and deferred income taxes are calculated as if a separate tax return had been prepared in each tax jurisdiction. In various tax jurisdictions, the Company and SunPower’s businesses operated within the same legal entity and certain of SunPower’s subsidiaries were part of a SunPower’s tax group. This required an assumption that the subsidiaries and operations of the Company in those tax jurisdictions operated on a standalone basis and constitute separate taxable entities. Actual outcomes and results could differ from these separate tax return estimates, including those estimates and assumptions related to realization of tax benefits within the SunPower’s tax groups. Uncertain tax positions represent those tax positions to which the Company is the primary obligor and are evaluated and accounted for as uncertain tax positions pursuant to ASC 740. Determining which party is the primary obligor to the taxing authority is dependent on the specific facts and circumstances of their relationship to the taxing authority. Management believes that all allocations have been performed on a reasonable basis and reflect the services received by the Company, the cost incurred on behalf of the Company, and the assets and liabilities of the Company. Although the combined financial statements reflect management’s best estimate of all historical costs related to the Company, this may, however, not necessarily reflect what the results of operations, financial position, or cash flows would have been had the Company been a separate entity, nor the future results of the Company as it will exist upon completion of the proposed separation.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jan. 03, 2021

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Combination and consolidation

The consolidated and combined financial statements includes the Company’s net assets and results of operations as described above prior to Spin-off. Subsequent to Spin-off, it incorporates the financial statements, its subsidiaries and the VIEs for which the Company or a subsidiary of the Company is the primary beneficiary. All intercompany transactions and accounts within the consolidated and combined businesses of the Company have been eliminated.

Fiscal Periods

The Company has a 52-to-53-week fiscal year that ends on the Sunday closest to December 31. Accordingly, every fifth or sixth year will be a 53-week fiscal year. Fiscal year 2020 is a 53-week fiscal year while fiscal year 2019 and 2018 52-week fiscal years. Our fiscal year 2020 ended on January 3, 2021, our fiscal year 2019 ended on December 29, 2019 and our fiscal year 2018 ended on December 30, 2018.

Use of Estimates

The preparation of the consolidated and combined financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated and combined financial statements and accompanying notes. Significant estimates in these consolidated and combined financial statements include (i) revenue recognition, specifically, management’s assessment of market-based pricing terms related to sales of solar modules to SunPower for periods prior to the Spin-off, the nature and timing of satisfaction of performance obligations, standalone selling price of performance obligations and variable consideration; (ii) allowances for doubtful accounts receivable; (iii) inventory write-downs; (iv) stock-based compensation; (v) long-lived asset impairment, specifically estimates for valuation assumptions including discount rates and future cash flows, economic useful lives of property, plant and equipment, intangible assets, and investments; (vi) fair value of financial instruments; (vii) valuation of contingencies such as accrued warranty; (viii) the incremental borrowing rate used in discounting of lease liabilities; and (ix) income taxes and tax valuation allowances. Actual results could materially differ from those estimates.

Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. We are not aware of any specific event or circumstance that would require updates to our estimates and judgments or require us to revise the carrying value of our assets or liabilities as of the date of issuance of the financial statements. These estimates may change as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions.

Lease Accounting – Arrangements with Maxeon as a lessee

We determine if an arrangement is a lease at inception. Our operating lease agreements are primarily for real estate and are included within operating lease right-of-use (“ROU”) assets and operating lease liabilities on the Consolidated and Combined Balance Sheets. Finance leased assets are included in property, plant and equipment, net and finance lease liabilities are included in short-term debt and long-term debt on the Consolidated and Combined Balance Sheets. We elected the practical expedient to combine our lease and related non-lease components for all our leases. In addition, leases with an initial term of 12 months or less are not recorded on the Consolidated and Combined Balance Sheets and the Company recognizes lease expense for these leases on a straight-line basis over the lease term.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. ROU assets also include any lease prepayments made and exclude lease incentives. Many of our lessee agreements include options to extend the lease, which we do not include in our minimum lease terms unless they are reasonably certain to be exercised. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term.

Lease Accounting – Arrangements with Maxeon as a lessor

We account for a lease arrangement in which we act as the lessor as an operating lease as it does not meet the criteria for a sales-type lease or a direct financing lease. Initial direct costs incurred in negotiating and arranging an operating lease are deferred and recognized over the lease term on the same basis as the lease income. Lease income is recognized on a straight-line basis over the lease term. We exclude from our measurement of consideration in a contract all taxes assessed by governmental authorities on lease that are both (i) imposed on and concurrent with a specific lease revenue-producing transaction and (ii) collected from a lessee.

Financial instruments - Credit Losses

Effective December 30, 2019, we adopted ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) and subsequent amendments to the initial guidance: ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11, ASU 2020-02, and ASU 2020-03 (collectively, “Topic 326”). Topic 326 requires remeasurement and recognition of expected credit losses for financial assets held. The amendment applies to entities which hold financial assets and net investments in leases that are not accounted for at fair value through net income as well as loans, debt securities, accounts receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For additional information on the changes resulting from the new stand and the impact to our financial results on adoption, refer to the section Recently Adopted Accounting Pronouncement below.

We recognize an allowance for credit loss at the time a receivable is recorded based on our estimate of expected credit losses and adjust this estimate over the life of the receivable as needed. An account receivable is written off after all collection effort has ceased. We evaluate the aggregation and risk characteristics of a receivable pool and develop loss rates that reflect historical collections, current forecasts of future economic conditions over the time horizon we are exposed to credit risk, and payment terms or conditions that may materially affect future forecasts.

As of January 3, 2021, we reported $76.7 million of accounts receivable, net of credit loss allowance of $3.8 million. Based on the aging analysis as of January 3, 2021, 95% of our gross trade account receivable was outstanding less than 60 days. Refer to Note 6. Balance Sheet Components for more details on changes in allowance for credit losses. We have not seen significant changes to the recovery rate of our account receivable as a result of the COVID-19 pandemic, but we are continuing to actively monitor the impact of the COVID-19 pandemic on our expected credit losses.

Advances to Suppliers

Advances to suppliers relate to prepayments made under long-term agreements with suppliers for the procurement of polysilicon that specify future quantities and pricing of polysilicon to be supplied by the vendors and provide for certain consequences, such as forfeiture of advanced deposits, in the event that the Company terminates the arrangement. The credit loss allowance on our advanced prepayments to suppliers under long-term supply agreements are reviewed by management at each reporting period. We have no history of recording write-offs related to our advanced prepayments to suppliers, and given our purchase obligation to these suppliers significantly exceeds the remaining advanced prepayments balance as of January 3, 2021 and December 29, 2019, the likelihood of our suppliers terminating the existing contractual arrangements is considered to be remote. We also periodically evaluate the credit worthiness of these suppliers and have noted no material deterioration in their respective credit conditions that would call into question their abilities to continue to supply us with the quantities of polysilicon specified in our supply agreements. The typical time it takes for us to receive the delivery of raw materials under this agreement was approximately 40-50 days from the date the purchase order is submitted to the supplier. Of the $121.4 million of advances to suppliers as of December 29, 2019, $28.5 million was subsequently applied to polysilicon deliveries received through January 3, 2021, subsequent to an extension of the polysilicon agreement negotiated during the year. We had $92.9 million of advances to supplier as of January 3, 2021, which we expect to apply to polysilicon purchases received through the end of our fiscal year 2022 in accordance with the existing supply agreement.

Net Parent Investment

Net parent investment in the Consolidated and Combined Balance Sheets and Statements of Equity represents SunPower’s interest in the recorded net assets of the Company, the net effect of transactions with and allocations from SunPower and the Company’s accumulated deficit. See Note 3. Net Parent Investment and Transactions with SunPower and Total and Total S.A for further information about transactions between the Company and SunPower.

Fair Value of Financial Instruments

The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying values of cash and cash equivalents, accounts receivable, and accounts payable approximate their respective fair values due to their short-term maturities. Equity investments without readily determinable fair value are measured at cost less impairment and are adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. Derivative financial instruments are carried at fair value based on quoted market prices for financial instruments with similar characteristics. The effective portion of derivative financial instruments is excluded from earnings and reported as a component of “Accumulated other comprehensive loss” in the Consolidated and Combined Balance Sheets. The ineffective portion of derivatives financial instruments are included in “Other, net” in the Consolidated and Combined Statements of Operations.

Comprehensive Loss

Comprehensive loss is defined as the change in equity during a period from non-owner sources. Our comprehensive loss for the period presented is comprised of (i) our net loss; (ii) foreign currency translation adjustment of our foreign subsidiaries whose assets and liabilities are translated from their respective functional currencies at exchange rates in effect at the balance sheet dates, and revenues and expenses are translated at average exchange rates prevailing during the applicable period; (iii) changes in fair value for derivatives designated as hedging instruments (see Note 12. Derivative Financial Instruments); and (iv) net gain (loss) on long-term pension liability adjustment.

Cash Equivalents

Highly liquid investments with original or remaining maturities of ninety days or less at the date of purchase are considered cash equivalents.

Short-Term and Long-Term Investments

We may invest in money market funds and debt securities. In general, investments with original maturities of greater than ninety days and remaining maturities of one year or less are classified as short-term investments, and investments with maturities of more than one year are classified as long-term investments. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such investments represent the investment of cash that is available for current operations. Despite the long-term maturities, we have the ability and intent, if necessary, to liquidate any of these investments in order to meet our working capital needs within our normal operating cycles. We have classified these investments as available-for-sale securities.

Our debt securities, classified as held-to-maturity, are Philippine government bonds that we maintain as collateral for business transactions within the Philippines.

Cash in Restricted Accounts

Cash and cash equivalents in restricted accounts comprise primarily of monies held in escrow in connection with the Company’s module sales to a customer and accounts restricted for use in connection with our leases.

Inventories

Inventories are accounted for on a first-in-first-out basis and are valued at the lower of cost or net realizable value. We evaluate the realizability of our inventories, including purchase commitments under fixed-price long-term supply agreements, based on assumptions about expected demand and market conditions. Our assumption of expected demand is developed based on our analysis of bookings, sales backlog, sales pipeline, market forecast, and competitive intelligence. Our assumption of expected demand is compared to available inventory, production capacity, future polysilicon purchase commitments, available third-party inventory, and growth plans. Our factory production plans, which drive materials requirement planning, are established based on our assumptions of expected demand. We respond to reductions in expected demand by temporarily reducing manufacturing output and adjusting expected valuation assumptions as necessary. In addition, expected demand by geography has changed historically due to changes in the availability and size of government mandates and economic incentives.

We evaluate whether losses should be accrued on long-term inventory purchase commitments that may arise from firm, non-cancellable, and unhedged commitments for the future purchase of inventory items. Such losses are measured in the same way as inventory losses, and are recognized unless determined to be recoverable through firm sales contacts or when there are other circumstances that reasonably assure continuing sales without price decline.

Under the long-term polysilicon supply agreements for polysilicon between the Company and a supplier, pricing for purchases of polysilicon and specified quantities are set forth in the agreements. As a result of the significant declines in the prices of polysilicon available in the market due to an increase in industry-wide polysilicon manufacturing capacity and a decrease in global demand for polysilicon, the purchase prices set forth in the agreements currently exceed market prices.

We evaluate the terms of our long-term inventory purchase agreements with suppliers, including joint ventures, for the procurement of polysilicon, ingots, wafers, and solar cells and establish accruals for estimated losses on adverse purchase commitments as necessary, such as lower of cost or net realizable value adjustments, forfeiture of advanced deposits and liquidated damages. Obligations related to non-cancellable purchase orders for inventories match current and forecasted sales orders that will consume these ordered materials, and actual consumption of these ordered materials is compared to expected demand regularly. We anticipate total obligations related to long-term supply agreements for inventories will be realized because quantities are less than our expected demand for our solar power products for the foreseeable future and because the raw materials subject to these long-term supply agreements are not subject to spoilage or other factors that would deteriorate its usability; however, if raw materials inventory balances temporarily exceed near-term demand, we may elect to sell such inventory to third parties to optimize working capital needs. In addition, because the purchase prices required by our long-term polysilicon agreements are significantly higher than current market prices for similar materials, if we are not able to profitably utilize this material in our operations or elect to sell near-term excess, we may incur additional losses. Other market conditions that could affect the realizable value of our inventories and are periodically evaluated by us include historical inventory turnover ratio, anticipated sales price, new product development schedules, the effect new products might have on the sale of existing products, product obsolescence, customer concentrations, the current market price of polysilicon as compared to the price in our fixed-price arrangements, and product merchantability, among other factors. If, based on assumptions about expected demand and market conditions, we determine that the cost of inventories exceeds its net realizable value or inventory is excess or obsolete, or we enter into arrangements with third parties for the sale of raw materials that do not allow us to recover our current contractually committed price for such raw materials, we record a write-down or accrual equal to the difference between the cost of inventories and the estimated net realizable value, which may be material. If actual market conditions are more favorable, we may have higher gross margins when products that have been previously written down are sold in the normal course of business (see Note 6. Balance Sheet Components).

Property, Plant and Equipment

Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as presented below. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets and the remaining term of the lease. Repairs and maintenance costs are expensed as incurred.


			Useful Lives in Years
Buildings			20 to 30
Leasehold improvements			1 to 20
Manufacturing equipment			7 to 15
Computer equipment			2 to 7
Solar power systems			30
Furniture and fixtures			3 to 5

Intangible Assets

Intangible assets are stated at cost less accumulated amortization. Definite-lived intangible assets are amortized using the straight-line method over the estimated useful lives of the intangible assets as follows:


			Useful Lives in Years
Patents			12
Trademarks			2 to 3
Purchased technology			1 to 7

Long-Lived Assets

We evaluate our long-lived assets, including property, plant and equipment, and definite-lived intangible assets, for impairment whenever events or changes in circumstances arise. This evaluation includes consideration of technology obsolescence that may indicate that the carrying value of such assets may not be recoverable. The assessments require significant judgment in determining whether such events or changes have occurred. Factors considered important that could result in an impairment review include significant changes in the manner of use of a long-lived asset or in its physical condition, a significant adverse change in the business climate or economic trends that could affect the value of a long-lived asset, significant under-performance relative to expected historical or projected future operating results, or a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life.

For purposes of the impairment evaluation, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. We exercise judgment in assessing such groupings and levels. We then compare the estimated future undiscounted net cash flows expected to be generated by the asset group (including the eventual disposition of the asset group at residual value) to the asset group’s carrying value to determine if the asset group is recoverable. If our estimate of future undiscounted net cash flows is insufficient to recover the carrying value of the asset group, we record an impairment loss in the amount by which the carrying value of the asset group exceeds the fair value. Fair value is generally measured based on (i) internally developed discounted cash flows for the asset group, (ii) third-party valuations, and (iii) quoted market prices, if available. If the fair value of an asset group is determined to be less than its carrying value, an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs. See Note 6. Balance Sheet Components for additional information.

Product Warranties

We generally provide a 25-year standard warranty for the solar panels that we manufacture for defects in materials and workmanship and for greater than promised declines in power performance. The warranty provides that we will repair or replace any defective solar panels during the warranty period. In addition, we pass through to customers long-term warranties from the original equipment manufacturers of certain system components, such as inverters. Warranties of 25 years from solar panel suppliers are standard in the solar industry, while certain system components carry warranty periods ranging from 5 to 20 years.

The warranty excludes system output shortfalls attributable to force majeure events, customer curtailment, irregular weather, and other similar factors. In the event that the system output falls below the warrantied performance level during the applicable warranty period, and provided that the shortfall is not caused by a factor that is excluded from the performance warranty, the warranty provides that we will elect to either (a) repair; (b) replace; or (c) pay the customer a liquidated damage based on the computation stipulated in the warranty agreement.

We maintain reserves to cover the expected costs that could result from these warranties. Our expected costs are generally in the form of product replacement or repair. Warranty reserves are based on our best estimate of such costs and are recognized as a cost of revenue. We continuously monitor product returns for warranty failures and maintain a reserve for the related warranty expenses based on various factors including historical warranty claims, results of accelerated lab testing, field monitoring, vendor reliability estimates, and data on industry averages for similar products. Due to the potential for variability in these underlying factors, the difference between our estimated costs and our actual costs could be material to our combined financial statements. If actual product failure rates or the frequency or severity of reported claims differ from our estimates or if there are delays in our responsiveness to outages, we may be required to revise our estimated warranty liability. Historically, warranty costs have been within our expectations (see Note 9. Commitments and Contingencies).

Revenue Recognition

We sell our solar panels and balance of system components primarily to dealers, project developers, system integrators and distributors, and recognize revenue at a point in time when control of such products transfers to the customer, which generally occurs upon shipment or delivery depending on the terms of the contracts with the customer. In determining the transaction price for revenue recognition, the Company evaluates whether the price is subject to refund or adjustment in determining the consideration to which the Company expects to be entitled. There are no rights of return; however, the Company may be required to pay consideration to the customer in certain instances of delayed delivery. The Company then allocates the transaction price to each distinct performance obligation based on their relative standalone selling price, when applicable. Other than standard warranty obligations, there are no significant post-shipment obligations (including installation, training or customer acceptance clauses) with any of our customers that could have an impact on revenue recognition. Our revenue recognition policy is consistent across all geographic areas.

Cost of Revenue

Cost of revenue includes actual cost of materials, labor and manufacturing overheads incurred for revenue-producing units shipped and includes associated warranty costs and other costs.

Shipping and Handling Costs

We account for shipping and handling activities related to contracts with customers as costs to fulfill our promise to transfer goods and, accordingly, record such costs in cost of revenue.

Taxes Collected from Customers and Remitted to Governmental Authorities

We exclude from our measurement of transaction prices all taxes assessed by governmental authorities that are both (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers. Accordingly, such tax amounts are not included as a component of revenue or cost of revenue.

Stock-Based Compensation

The Company’s employees have historically participated in SunPower’s stock-based compensation plans. Stock-based compensation expense has been allocated to the Company based on the awards and terms previously granted to the Company’s employees as well as an allocation of SunPower’s corporate and shared functional employee expenses.

intention of preserving the intrinsic value of the awards prior to the Spin-off. The Company issued adjusted restricted stock units (“RSUs”) and performance-based stock units (“PSUs”) for the unvested awards under the Company’s stock-based compensation plans.

The stock-based compensation expense for the RSU is based on the measurement date fair value of the award and is recognized only for those awards expected to meet the service vesting conditions on a straight-line basis over the requisite service period of the award. For PSU grants, the expense is based on the measurement date fair value of the award and is recognized over the vesting term if the performance targets are considered probable of being achieved. Stock-based compensation expense is determined at the aggregate grant level for service-based awards and at the individual vesting tranche level for awards with performance and/or market conditions. The forfeiture rate is estimated based on SunPower’s historical experience.

Advertising Costs

Advertising costs are expensed as incurred. Advertising expense totaled approximately $2.4 million,$3.1 million and $0.8 million in fiscal years 2020 , 2019 and 2018, respectively.

Research and Development Expense

Research and development expense consists primarily of salaries and related personnel costs, depreciation and the cost of solar cell and solar panel materials. Research and development expense is reported net of contributions under collaborative arrangements. Subsequent to the Spin-off, the Company entered into the Collaboration Agreement with SunPower to perform research and development work in SunPower’s Silicon Valley research and development labs for the development of future technology improvements and continue to improve our expected product differentiation. All research and development costs are expensed as incurred.

Restructuring Charges

Prior to the Spin-off, the Company records charges associated with SunPower approved restructuring plans to reorganize one or more of the Company’s business segments, to remove duplicative headcount and infrastructure associated with business acquisitions or to simplify business processes and accelerate innovation. Restructuring charges can include severance costs in connection with the termination of a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, and contract cancellation costs. The Company records restructuring charges based on estimated employee terminations and site closure and consolidation plans. The Company accrues for severance and other employee separation costs under these actions when it was probable that benefits will be paid and the amount is reasonably estimable. The rates used in determining severance accruals are based on existing plans, historical experiences and negotiated settlements.

Translation of Foreign Currency

The Company and certain of its subsidiaries use their respective local currency as their functional currency. Accordingly, foreign currency assets and liabilities are translated using exchange rates in effect at the end of the period. Aggregate exchange gains and losses arising from the translation of foreign assets and liabilities are included in “Accumulated other comprehensive loss” in the Consolidated and Combined Balance Sheets. Foreign subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities using exchange rates in effect at the end of the period. Exchange gains and losses arising from the remeasurement of monetary assets and liabilities are included in “Other, net” in the Consolidated and Combined Statements of Operations. Non-monetary assets and liabilities are carried at their historical values.

We include gains or losses from foreign currency transactions in “Other, net” in the Consolidated and Combined Statements of Operations with the other hedging activities described in Note 12. Derivative Financial Instruments.

Concentration of Credit Risk

We are exposed to credit losses in the event of nonperformance by the counterparties to our financial and derivative instruments. Financial and derivative instruments that potentially subject us to concentrations of credit risk are primarily cash and cash equivalents, investments, accounts receivable, advances to suppliers, and foreign currency forward contracts. Our investment policy requires cash and cash equivalents and investments to be placed with high-quality financial institutions and to limit the amount of credit risk from any one issuer.

We perform ongoing credit evaluations of our customers’ financial condition whenever deemed necessary. We maintain an allowance for doubtful accounts based on the expected collectability of all accounts receivable, which takes into consideration an analysis of historical bad debts, specific customer creditworthiness and current economic trends. We believe that our concentration of credit risk is limited because of our large number of customers, credit quality of the customer base, small account balances for most of these customers, and customer geographic diversification. During fiscal years 2020, 2019 and 2018, we recorded revenues of $231.2 million, $426.5 million and $388.5 million, or 27.4%, 35.6% and 42.6% of total revenue, respectively, representing the sale of solar modules to SunPower. The pricing term prior to the Spin-off was made at transfer prices determined based on management’s assessment of market-based pricing terms. Subsequent to the Spin-off, pricing is based on the Supply Agreement with SunPower. Except for revenue transactions with SunPower, for fiscal years 2020 and 2019, we had no customers that accounted for at least 10% of revenue. As of January 3, 2021 and December 29, 2019, SunPower accounted for 39.5% and 33.7% of our accounts receivable, respectively. Three customers individually accounted for 15.1%, 11.6% and 10.6% of accounts receivable respectively as of January 3, 2021, and two customers individually accounted for 20.4% and 13.6% of accounts receivable, respectively as of December 29, 2019.

We have entered into agreements with vendors that specify future quantities and pricing of polysilicon to be supplied for the next two years. The purchase prices required by these polysilicon supply agreements are significantly higher than current market prices for similar materials. Under certain agreements, we were required to make prepayments to the vendors over the terms of the arrangements.

Income Taxes

The Company’s operations have historically been included in the tax returns filed by the respective SunPower entities of which the Company’s businesses are a part. Income tax expense and other income tax related information contained in these consolidated and combined financial statements are presented on a separate return basis as if the Company filed its own tax returns. The separate return method applies the accounting guidance for income taxes to the standalone financial statements as if the Company were a separate taxpayer and a standalone enterprise for the period presented. Current income tax liabilities related to entities which file jointly with SunPower were settled with SunPower and are relieved through Net parent investment in the Consolidated and Combined Balance Sheets and the Net parent (distribution) contribution in the Consolidated and Combined Statements of Cash Flows.

The Company recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. The Company records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized.

The Company records accruals for uncertain tax positions when the Company believes that it is not more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Company makes adjustments to these accruals when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. The provision for income taxes include the effects of adjustments for uncertain tax positions, as well as any related interest and penalties.

As applicable, interest and penalties on tax contingencies are included in “Provision for income taxes” in the Consolidated and Combined Statements of Operations and such amounts were not material for the period presented. In addition, foreign exchange gains (losses) may result from estimated tax liabilities, which are expected to be settled in currencies other than the U.S. dollar.

Investments in Equity Interests

Investments in entities in which we can exercise significant influence, but do not own a majority equity interest or otherwise control, are accounted for under the equity method. We record our share of the results of these entities as “Equity in losses of unconsolidated investees” on the Consolidated and Combined Statements of Operations. We monitor our investments for other-than-temporary impairment by considering factors such as current economic and market conditions and the operating performance of the entities and record reductions in carrying values when necessary. The fair value of privately-held investments is estimated using the best available information as of the valuation date, including current earnings trends, undiscounted cash flows, and other company specific information, including recent financing rounds (see Note 6. Balance Sheet Components and Note 7. Fair Value Measurements).

Variable Interest Entities (“VIE”)

We regularly evaluate our relationships and involvement with unconsolidated VIEs and our other equity and cost method investments, to determine whether we have a controlling financial interest in them or have become the primary beneficiary, thereby requiring us to consolidate their financial results into our financial statements. If we determine that we hold a variable interest, we then evaluate whether we are the primary beneficiary. If we determine that we are the primary beneficiary, we will consolidate the VIE. The determination of whether we are the primary beneficiary is based upon whether we have the power to direct the activities that most directly impact the economic performance of the VIE and whether we absorb any losses or receive any benefits that would be potentially significant to the VIE.

Noncontrolling Interests

Noncontrolling interests represents the portion of net assets in consolidated subsidiaries that are not attributable, directly or indirectly, to us and are presented as a separate component within Equity in the Consolidated and Combined Balance Sheets. Net (income) losses attributable to the non-controlling interests are recorded within “Net (income) losses attributable to noncontrolling interests” in the Consolidated and Combined Statements of Operations.

Recently Adopted Accounting Pronouncements

In June 2016, the Financial Accounting Standard Board (“FASB”) issued Topic 326, to replace the prior incurred loss impairment methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in Topic 326 apply to entities which hold financial assets and net investments in leases that are not accounted for at fair value through net income as well as loans, debt securities, accounts receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. We adopted the ASU during the first quarter of fiscal year 2020. The adoption did not have a material impact on our consolidated and combined financial statements.

In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20), to add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. We adopted the ASU during the first quarter of fiscal year 2020. The adoption did not have a material impact on our consolidated and combined financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) which changes the fair value measurement disclosure requirements of ASC 820. The guidance adds and clarifies certain disclosure requirements for fair value measurements with the objective of improving the effectiveness of disclosures in the notes to financial statements. The adoption did not have an impact on our combined financial statements.

In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40), requiring a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets. We

adopted the ASU during the first quarter of fiscal year 2020. The adoption did not have a material impact on our consolidated and combined financial statements.

In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities, which broadens the scope of the private company alternative to include all common control arrangements that meet specific criteria (not just leasing arrangements) and also eliminates the requirement that entities consider indirect interests held through related parties under common control in their entirety when assessing whether a decision-making fee is a variable interest. We adopted the ASU during the first quarter of fiscal year 2020. The adoption did not have a material impact on our consolidated and combined financial statements.

In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606, which (1) clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606; (2) adds unit-of-account guidance in Topic 808 to align with the guidance in Topic 606; and (3) requires that in a transaction with a collaborative arrangement participant that is not directly related to sales to third parties, presenting the transaction together with revenue recognized under Topic 606 is precluded if the collaborative arrangement participant is not a customer. We adopted the ASU during the first quarter of fiscal year 2020. The adoption did not have a material impact on our consolidated and combined financial statements.

Recent Accounting Pronouncements Not Yet Adopted

In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for us no later than the first quarter of fiscal year 2021. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. While we are still evaluating the impacts of the provisions of ASU 2019-12 on our financial statements and disclosures, the impact is not expected to be material.

In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323 and Topic 815. The amendment clarifies accounting for equity investments and non-derivative forward contracts or purchased call options under ASC 321. ASU 2020-01 is effective no later than the first quarter of fiscal year 2021 and the ASU should be applied prospectively. While we are still evaluating the impacts of the provisions of ASU 2020-01 on our financial statements and disclosures, the impact is not expected to be material.

In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) - Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The amendment reduces the number of accounting models used for convertible debt instruments and convertible preferred stock, which results in fewer embedded conversion features separately recognized from the host contracts. ASU 2020-06 is effective no later than the first quarter of fiscal year 2022. Early adoption is permitted no earlier than the first quarter of fiscal year 2021, and the ASU should be applied retrospectively. We are currently evaluating the impacts of the provisions of ASU 2020-06 on our financial statements and disclosure.

NET PARENT INVESTMENT AND TRANSACTIONS WITH SUNPOWER AND TOTAL AND TOTAL S.A

12 Months Ended

Jan. 03, 2021

NET PARENT INVESTMENT AND TRANSACTIONS WITH SUNPOWER AND TOTAL AND TOTAL S.A

NET PARENT INVESTMENT AND TRANSACTIONS WITH SUNPOWER AND TOTAL AND TOTAL S.A SunPower is a majority-owned subsidiary of Total Solar INTL SAS ("Total," formerly Total Solar International SAS) and Total Gaz Electricité Holdings France SAS (“Total Gaz”), each a subsidiary of TOTAL SE (“TOTAL

SE,” formerly Total SA). As of December 29, 2019, we were partially owned by Total through its ownership of SunPower.

In connection with the Spin-off, following the TZS investment whereby Zhonghuan Singapore Investment and Development Pte Ltd., a Singapore private limited company (“TZS SG”) and an affiliate of TZS, purchased from Maxeon, for $298.0 million, 8,915,692 of Maxeon shares. Total Solar INTL SAS (“Total Solar”), Total Gaz Electricité Holdings France SAS, (“Total Gaz” with Total Solar, each an affiliate of Total SE and collectively "Total") who were the holders of record of SunPower’s common stock, were issued with Maxeon’s share by way of pro rata distribution. As of January 3, 2021, Total’s and TZS SG’s ownership of the Company’s outstanding common stock was approximately 32.3% and 26.2%, respectively.

Transactions with SunPower

Sales to SunPower

During fiscal years 2020, 2019 and 2018, we had sales of $231.2 million, $426.5 million and $388.5 million to SunPower representing the sale of solar modules to SunPower. The pricing term prior to the Spin-off was made at transfer prices determined based on management’s assessment of market-based pricing terms. Subsequent to the Spin-off, pricing is based on the supply agreement with SunPower. Sales to SunPower were recognized in line with our revenue recognition policy for sales to third-party customers, as discussed in Note 2. Summary of Significant Accounting Policies. As of January 3, 2021 and December 29, 2019, accounts receivable due from SunPower related to these sales amounted to $32.0 million and $51.8 million, respectively.

Allocation of Corporate Expenses

As discussed in Note 2. Summary of Significant Accounting Policies, the Consolidated and Combined Statements of Operations and Comprehensive Loss include an allocation of general corporate expenses from SunPower for certain management and support functions, prior to the Spin-off. These allocations amounted to $9.2 million, $26.1 million and $18.8 million fiscal years 2020, 2019 and 2018, respectively, and are reflected in sales, general, and administrative expenses. Management believes the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of services provided to or the benefit received by us during the period presented. Allocated costs may differ from actual costs which would have been incurred if we had operated independently during the periods presented.

In December 2015, SunPower issued 4.00% debentures due 2023, the proceeds of which were used to finance our solar cell manufacturing facility in the Philippines which relates to our historical business. As such, $11.3 million, $17.0 million and $17.0 million of interest expense associated with the 4.00% debentures due 2023 is reflected in the Consolidated and Combined Statements of Operations for each of the fiscal years 2020, 2019 and 2018. Since the 4.00% debentures due 2023 represent legal obligations of SunPower which were not transferred to us, they are not reflected in our Consolidated and Combined Balance Sheets in the years presented. However, the associated interest expense and the debt issuance cost amortization are reflected in our Consolidated and Combined Statements of Operations prior to the Spin-off to reflect our historical cost of doing business. This cost may not be indicative of the actual expense that would have been incurred had we operated as an independent, public company for the period presented nor future periods.

Agreements with SunPower

In connection with the Spin-off, we also entered into certain ancillary agreements that govern the relationships between SunPower and us following the Distribution, including: a tax matters agreement, employee matters agreement, transition services agreement, back-to-back agreement, brand framework agreement, cross license agreement, collaboration agreement, and supply agreement (collectively, the “Ancillary Agreements”).

In addition, under the Separation and Distribution Agreement with SunPower, SunPower has agreed to indemnify us for certain litigation and claims to which are a party. The liabilities related to these claims and an offsetting receivable from SunPower are reflected on our Consolidated and Combined Balance Sheets. See Note 6. Balance Sheet Components and Note 9. Commitments and Contingencies - Indemnifications.

The below table summarizes our transactions with SunPower for fiscal year 2020 subsequent to the Spin-off, in relation to these agreements:



	Fiscal Year Ended
(In thousands)	January 3, 2021
Charges from product collaboration agreement	$	10,846
Net charges from transition service agreement	6,229

We had the following balances related to transactions with SunPower as of January 3, 2021 and December 29, 2019:


	As of
(In thousands)	January 3, 2021		December 29, 2019
Accounts receivable	$	31,967	$	51,767
Prepaid expenses and other current assets	9,665		—
Other receivables, non-current	1,458		—
Accounts payable	901		—
Accrued liabilities (Note 6)	7,942		—

Net Parent Investment

Net parent investment on the Consolidated and Combined Balance Sheets and Statements of Equity represents SunPower’s historical investment in the Company, the net effect of transactions with and allocations from SunPower and the Company’s accumulated earnings. Prior to the Spin-off, the Company was dependent on SunPower for its working capital and financing requirements as SunPower used a centralized approach for cash management and financing of its operations. SunPower provided funding for our operating and investing activities including pooled cash managed by SunPower treasury to fund operating expenses and capital expenditures. SunPower also directly collected our receivables. These activities were reflected as a component of net parent investment, and this arrangement is not reflective of the manner in which we would operate on a stand-alone business separate from SunPower during the period presented. Accordingly, none of SunPower’s cash, cash equivalents or debt at the corporate level have been assigned to the Company in the consolidated and combined financial statements. Net parent investment represents SunPower’s interest in the recorded net assets of the Company and the net parent (distribution) contribution represents the settlement as part of the Spin-off exercise. All significant transactions between the Company and SunPower have been included in the accompanying consolidated and combined financial statements. Transactions with SunPower are reflected in the accompanying Consolidated and Combined Statements of Equity as “Net parent (distribution) contribution”.

Net Parent (Distribution) Contribution

The components of Net parent (distribution) contribution on the Consolidated and Combined Statements of Equity for fiscal years 2020, 2019 and 2018 were as follows:


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019		December 30, 2018
General financing activities	$	(22,163)	$	61,971	$	152,239
Acquisition of intellectual property	(100,000)		—		—
Separation cost	(25,000)		—		—
Excess cash	(8,996)		—		—
Corporate allocations	9,238		26,096		18,822
Interest expense financed and paid by SunPower	12,167		19,485		17,000
Stock-based compensation expense	5,168		7,135		8,580
Total Net parent (distribution) contribution per Consolidated and Combined Statements of Equity	$	(129,586)	$	114,687	$	196,641

A reconciliation of Net parent (distribution) contribution in the Consolidated and Combined Statements of Equity to the corresponding amount presented on the Consolidated and Combined Statements of Cash Flows for the periods presented was as follows:


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019		December 30, 2018
Total Net parent (distribution) contribution per Consolidated and Combined Statements of Equity	$	(129,586)	$	114,687	$	196,641
Interest expense financed and paid by SunPower	(12,167)		(19,485)		(17,000)
Stock-based compensation expense	(5,168)		(7,135)		(8,580)
Other	12,925		4,342		28
Total Net parent (distribution) contribution per Consolidated and Combined Statements of Cash Flows	$	(133,996)	$	92,409	$	171,089

Transactions with Total and Total S.A.

The following related party balances and amounts are associated with transactions entered into with Total and its affiliates:


	As of
(In thousands)	January 3, 2021		December 29, 2019
Accounts receivable	$	1,273	$	2,734
Accounts payable(1)	3,100		4,921
Contract liabilities, current portion(1), (2)	9,405		18,786
Contract liabilities, net of current portion(2)	33,066		35,427

(1)In connection with obtaining solar module supplies related to one solar project, we incurred charges of $3.1 million, that will be paid directly to Total in fiscal year 2021.

(2)Refer to Note 9. Commitments and Contingencies—Advances from Customers.


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019		December 30, 2018
Revenue	$	73,599	$	33,371	$	27,785
Interest expense incurred on the 4.00% debentures acquired by Total(1)	2,667		4,000		4,000

(1)Represents Total share of the 4.00% debentures issued by SunPower in December 2015. The proceeds were used to finance our solar cell manufacturing facility in the Philippines which relates to our historical business. As such, the related interest expense was reflected in the Consolidated and Combined Statements of Operations prior to Spin-off. The related obligation on the 4.00% debentures were not transferred to us as part of the Spin-off.

Supply Agreements

In November 2016, SunPower and Total entered into a four-year, up to 200 megawatts (“MW”) supply agreement to support the solarization of certain Total facilities. The agreement covers the supply of 150 MW of Maxeon 2 panels with an option to purchase up to another 50 MW of Performance line solar panels. In March 2017, SunPower received a prepayment totaling $88.5 million. The prepayment is secured by certain of Maxeon’s assets located in Mexico.

We recognize revenue for the solar panels supplied under this arrangement consistent with our revenue recognition policy for solar power components at a point in time when control of such products transfers to the customer, which generally occurs upon shipment or delivery depending on the terms of the contracts. In the second quarter of fiscal year 2017, we started to supply Total with solar panels under the supply agreement and as of January 3, 2021 and December 29, 2019, we had $9.3 million and $17.6 million, respectively, of “Contract liabilities, current portion”, and $33.1 million and $35.4 million, respectively, of “Contract liabilities, net of current portion” on our Consolidated and Combined Balance Sheets related to the aforementioned supply agreement (see Note 9. Commitments and Contingencies).

In March 2018, SunPower and Total, each through certain affiliates, entered into an agreement whereby we agreed to sell 3.42 MW of photovoltaic (“PV”) modules to Total for a development project in Chile. This agreement provided for payment from Total in the amount of approximately $1.3 million, 10% of which was paid upon execution of the agreement.

On January 7, 2019, SunPower and Total, each through certain affiliates, entered into an agreement whereby we agreed to sell 3.7 MW of PV modules to Total for a ground-mounted PV installation in Dubai. This agreement provided for payment from Total in the amount of approximately $1.4 million, 10% of which was received after execution of the agreement.

On March 4, 2019, SunPower and Total, each through certain affiliates, entered into an agreement whereby we agreed to sell 10 MW of PV modules to Total for commercial rooftop PV installations in Dubai. This agreement provided for payment from Total in the amount of approximately $3.2 million, 10% of which was received in April 2019.

In December 2019, SunPower and Total, each through certain affiliates, entered into an agreement whereby we agreed to sell 93 MW of PV modules to Total for commercial PV modules in France. This agreement provided for payment from Total in the amount of approximately $38.4 million, 10% of which was received in December 2019.

4.00% Debentures Due 2023

In December 2015, SunPower issued the 4.00% debentures due 2023. An aggregate principal amount of $100.0 million of the 4.00% debentures due 2023 were acquired by Total. The Consolidated and Combined Statements of Operations includes $2.7 million in interest expense related to interest charges incurred on the 4.00% debentures due

2023 for fiscal year 2020. See Note 1. Background and Basis for Presentation for additional details related to the 4.00% debentures due 2023.

NOTE 4. TRANSACTIONS WITH TIANJIN ZHONGHUAN SEMICONDUCTOR CO., LTD.

Transactions with Tianjin Zhonghuan Semiconductor Co., Ltd and its affiliates

During fiscal year 2020, the Company sold its entire equity interest in Hohhot Huanju New Energy Development Co. Ltd. (“Hohhot”) to Zhonghuan Energy (Inner Mongolia) Co., Ltd, an affiliate of TZS at a consideration of RMB 21,938,086.22 (equivalent to $3.2 mil) and this was determined based on valuation of Hohhot on December 31, 2019. The Company recognized a gain of $0.5 million from the disposal.

In March 2016, we entered into an agreement with Dongfang Electric Corporation and TZS. to form Huansheng Photovoltaic (Jiangsu) Co., Ltd., a jointly owned solar cell manufacturing facility to manufacture our Performance line modules in China. As at January 3, 2021, we had an equity ownership of 20% in the joint venture and account for the joint venture as an equity method investment. Please refer to Note 10 Equity Investments for transactions with the joint venture.

TRANSACTIONS WITH TIANJIN ZHONGHUAN SEMICONDUCTOR CO., LTD.

12 Months Ended

Jan. 03, 2021

TRANSACTIONS WITH TIANJIN ZHONGHUAN SEMICONDUCTOR CO., LTD.

SE,” formerly Total SA). As of December 29, 2019, we were partially owned by Total through its ownership of SunPower.

Transactions with SunPower

Sales to SunPower

Allocation of Corporate Expenses

Agreements with SunPower

The below table summarizes our transactions with SunPower for fiscal year 2020 subsequent to the Spin-off, in relation to these agreements:



	Fiscal Year Ended
(In thousands)	January 3, 2021
Charges from product collaboration agreement	$	10,846
Net charges from transition service agreement	6,229

We had the following balances related to transactions with SunPower as of January 3, 2021 and December 29, 2019:


	As of
(In thousands)	January 3, 2021		December 29, 2019
Accounts receivable	$	31,967	$	51,767
Prepaid expenses and other current assets	9,665		—
Other receivables, non-current	1,458		—
Accounts payable	901		—
Accrued liabilities (Note 6)	7,942		—

Net Parent Investment

Net Parent (Distribution) Contribution

The components of Net parent (distribution) contribution on the Consolidated and Combined Statements of Equity for fiscal years 2020, 2019 and 2018 were as follows:


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019		December 30, 2018
General financing activities	$	(22,163)	$	61,971	$	152,239
Acquisition of intellectual property	(100,000)		—		—
Separation cost	(25,000)		—		—
Excess cash	(8,996)		—		—
Corporate allocations	9,238		26,096		18,822
Interest expense financed and paid by SunPower	12,167		19,485		17,000
Stock-based compensation expense	5,168		7,135		8,580
Total Net parent (distribution) contribution per Consolidated and Combined Statements of Equity	$	(129,586)	$	114,687	$	196,641


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019		December 30, 2018
Total Net parent (distribution) contribution per Consolidated and Combined Statements of Equity	$	(129,586)	$	114,687	$	196,641
Interest expense financed and paid by SunPower	(12,167)		(19,485)		(17,000)
Stock-based compensation expense	(5,168)		(7,135)		(8,580)
Other	12,925		4,342		28
Total Net parent (distribution) contribution per Consolidated and Combined Statements of Cash Flows	$	(133,996)	$	92,409	$	171,089

Transactions with Total and Total S.A.

The following related party balances and amounts are associated with transactions entered into with Total and its affiliates:


	As of
(In thousands)	January 3, 2021		December 29, 2019
Accounts receivable	$	1,273	$	2,734
Accounts payable(1)	3,100		4,921
Contract liabilities, current portion(1), (2)	9,405		18,786
Contract liabilities, net of current portion(2)	33,066		35,427

(1)In connection with obtaining solar module supplies related to one solar project, we incurred charges of $3.1 million, that will be paid directly to Total in fiscal year 2021.

(2)Refer to Note 9. Commitments and Contingencies—Advances from Customers.


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019		December 30, 2018
Revenue	$	73,599	$	33,371	$	27,785
Interest expense incurred on the 4.00% debentures acquired by Total(1)	2,667		4,000		4,000

Supply Agreements

4.00% Debentures Due 2023

2023 for fiscal year 2020. See Note 1. Background and Basis for Presentation for additional details related to the 4.00% debentures due 2023.

NOTE 4. TRANSACTIONS WITH TIANJIN ZHONGHUAN SEMICONDUCTOR CO., LTD.

Transactions with Tianjin Zhonghuan Semiconductor Co., Ltd and its affiliates

REVENUE FROM CONTRACTS WITH CUSTOMERS	12 Months Ended
REVENUE FROM CONTRACTS WITH CUSTOMERS	Jan. 03, 2021
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	REVENUE FROM CONTRACTS WITH CUSTOMERS During fiscal years 2020, 2019 and 2018, we recognized revenue for sales of modules and components from contracts with customers of $0.8 billion, $1.2 billion and $0.9 billion, respectively. We recognize revenue for sales of modules and components at the point that control transfers to the customer, which typically occurs upon shipment or delivery to the customer, depending on the terms of the contract. Payment terms are typically between 30 and 45 days. Contract Assets and Liabilities Contract assets consist of unbilled receivables which represent revenue that has been recognized in advance of billing the customer and has been presented within “Prepaid expenses and other current assets” and “Other long-term assets”. During fiscal year 2020, the increase in contract assets of $1.8 million was primarily driven by revenue accrual which has yet to be billed. During fiscal year 2019, the decrease in contract assets of $0.3 million was primarily due to new billings of previously unbilled accounts receivable. Contract liabilities consist of deferred revenue and customer advances, which represent consideration received from a customer prior to transferring control of goods or services to the customer under the terms of a sales contract. During fiscal years 2020 and 2019, the decrease in contract liabilities of $60.7 million was mainly due to utilization of contract liabilities against the revenue earned. During fiscal year 2019, increase in contract liabilities of $6.5 million was primarily due to additional customer advances offset by utilization of contract liabilities previously recorded. During fiscal years 2020 and 2019, we recognized revenue of $56.6 million and $33.7 million that was included in contract liabilities as of December 29, 2019 and December 30, 2018, respectively. We had entered into contracts with customers for the future sale of modules and components for an aggregate transaction price of $200.9 million and $296.9 million during fiscal years 2020 and 2019, respectively, the substantial majority of which we expect to recognize as revenue within the next year.

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Organization, Consolidation and Presentation of Financial Statements [Abstract]

BALANCE SHEET COMPONENTS

12 Months Ended

Jan. 03, 2021

BALANCE SHEET COMPONENTS

Accounts Receivable, Net


	As of
(In thousands)	January 3, 2021		December 29, 2019
Accounts receivable, gross(1)	$	80,829	$	153,633
Less: allowance for doubtful accounts	(3,768)		(2,767)
Less: allowance for sales returns	(359)		(501)
Accounts receivable, net	$	76,702	$	150,365

(1)In December 2018 and May 2019, certain subsidiaries entered into factoring arrangements with two separate third-party factor agencies related to our accounts receivable from customers in Europe. As a result of these factoring arrangements, title of certain accounts receivable balances was transferred to third-party vendors, and both arrangements were accounted for as a sale of financial assets given effective control over these financial assets has been surrendered. As a result, these financial assets have been excluded from our Consolidated and Combined Balance Sheets. In connection with the factoring arrangements, we sold accounts receivable invoices amounting to $249.0 million and $119.4 million in fiscal years 2020 and 2019, respectively. As of January 3, 2021 and December 29, 2019, total uncollected accounts receivable from end customers under both arrangements were $34.1 million and $11.6 million, respectively.


(In thousands)	Balance at Beginning of Period		Charges (Releases) to Expense		Deductions		Balance at End of Period
Allowance for doubtful accounts
Year ended January 3, 2021	$	2,767	$	2,548	$	(1,547)	$	3,768
Year ended December 29, 2019	4,250		353		(1,836)		2,767

Allowance for sales returns
Year ended January 3, 2021	$	501	$	(142)	$	—	$	359
Year ended December 29, 2019	604		(103)		—		501

Inventories


	As of
(In thousands)	January 3, 2021		December 29, 2019
Raw materials	$	25,100	$	18,864
Work-in-process	61,059		62,045
Finished goods	83,081		113,943
Inventories	$	169,240	$	194,852

Prepaid Expenses and Other Current Assets


	As of
(In thousands)	January 3, 2021		December 29, 2019
VAT receivables, current portion	$	2,971	$	4,997
Derivative financial instruments	1,997		1,002
Other receivables	22,447		23,835
Deferred issuance cost (Note 11)	9,228		—
Other prepaid expenses and other current assets	12,827		8,535
Prepaid expenses and other current assets	$	49,470	$	38,369

As of January 3, 2021, $5.0 million relating to tax receivable is included in Other receivables.

Intangible Assets, Net


(In thousands)	Gross		Accumulated Amortization		Net
As of January 3, 2021
Trademarks and purchased technology	$	1,815	$	(1,359)	$	456

As of December 29, 2019
Trademarks and purchased technology	$	36,527	$	(31,435)	$	5,092

Aggregate amortization expense for intangible assets totaled $5.0 million and $7.3 million and $7.2 million for fiscal years 2020, 2019, and 2018 respectively.

As of January 3, 2021, the estimated future amortization expense related to definite-lived intangible assets is as follows:


(In thousands)
Fiscal Year
2021			253
2022			132
2023			43
2024			14
2025			8
Thereafter			6
Total future amortization expense			456

Property, Plant and Equipment, Net


	As of
(In thousands)	January 3, 2021		December 29, 2019
Manufacturing equipment	$	123,453	$	131,332
Land and buildings	137,975		137,723
Leasehold improvements	82,091		99,165
Solar power systems	1,382		1,326
Computer equipment	34,811		30,039
Furniture and fixtures	1,303		2,662
Construction-in-process	24,626		12,500
Property, plant and equipment, gross	405,641		414,747
Less: accumulated depreciation	(158,733)		(133,547)
Property, plant and equipment, net	$	246,908	$	281,200

Other Long-term Assets


	As of
(In thousands)	January 3, 2021		December 29, 2019
Equity investments without readily determinable fair value (Note 10)	$	4,000	$	7,860
Equity method investments (Note 10)	25,707		26,533
Prepaid Forward (Note 11)	66,718		—
Prepayment for capital expenditure	7,271		1,170
Deferred tax assets (Note 13)	9,620		8,927
Other	9,758		8,560
Other long-term assets	$	123,074	$	53,050

Accrued Liabilities


	As of
(In thousands)	January 3, 2021		December 29, 2019
Employee compensation and employee benefits	$	12,178	$	19,547
Short-term warranty reserves(1)	9,548		10,111
Restructuring reserve	—		515
Accrued interest payable	6,185		133
Other payables to SunPower (Note 3)	7,942		—
VAT payables	9,341		6,390
Derivative financial instruments	2,971		1,962
Legal expenses	3,450		5,265
Taxes payable	18,112		13,826
Liability due to supply agreement	—		28,031
Other	7,580		6,790
Accrued liabilities	$	77,307	$	92,570

(1)Included in the warranty reserve is the short-term system warranty reserve of $3.3 million as of January 3, 2021 relating to SunPower’s business which is indemnified by SunPower under the Separation and

Distribution Agreement and accordingly, the Company has recorded the corresponding receivables under “Prepaid expense and other current assets” on the Consolidated and Combined Balance Sheets.

Other Long-term Liabilities


	As of
(In thousands)	January 3, 2021		December 29, 2019
Long-term warranty reserves(1)	$	26,955	$	26,954
Unrecognized tax benefits	18,063		12,849
Long-term security deposit payable	2,148		2,728
Long-term pension liability	2,992		3,003
Deferred tax liabilities (Note 13)	—		337
Other	1,594		655
Other long-term liabilities	$	51,752	$	46,526

(1)Included in the warranty reserve is the long-term system warranty reserve of $2.0 million as of January 3, 2021 relating to SunPower’s business which is indemnified by SunPower under the Separation and Distribution Agreement and accordingly, the Company has recorded the corresponding receivables under “Prepaid expense and other current assets” on the Consolidated and Combined Balance Sheets.

Accumulated Other Comprehensive Loss


	As of
(In thousands)	January 3, 2021		December 29, 2019
Cumulative translation adjustment	$	(13,280)	$	(9,462)
Unrecognized gain on long-term pension liability adjustment	3,365		3,102
Net unrealized loss on derivative instruments	(476)		(1,258)
Accumulated other comprehensive loss	$	(10,391)	$	(7,618)

FAIR VALUE MEASUREMENTS

12 Months Ended

Jan. 03, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement (observable inputs are the preferred basis of valuation):

•Level 1—Quoted prices in active markets for identical assets or liabilities.

•Level 2—Measurements are inputs that are observable for assets or liabilities, either directly or indirectly, other than quoted prices included within Level 1.

•Level 3—Prices or valuations that require management inputs that are both significant to the fair value measurement and unobservable.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

We measure certain assets and liabilities at fair value on a recurring basis. There were no transfers between fair value measurement levels during the presented periods. We did not have any assets or liabilities measured at fair value on a recurring basis requiring Level 3 inputs as of January 3, 2021 or December 29, 2019.

The following table summarizes our assets and liabilities measured and recorded at fair value on a recurring basis as of January 3, 2021 and December 29, 2019:


	January 3, 2021				December 29, 2019
(In thousands)	Total Fair Value		Level 2		Total Fair Value		Level 2
Assets
Prepaid expenses and other current assets
Derivative financial instruments (Note 12)	$	1,997	$	1,997	$	1,002	$	1,002

Other long-term assets
Prepaid Forward	66,718		66,718		$	—	$	—
Total assets	$	68,715	$	68,715	$	1,002	$	1,002

Liabilities
Accrued liabilities
Derivative financial instruments (Note 12)	2,971		2,971		1,962		1,962
Total liabilities	$	2,971	$	2,971	$	1,962	$	1,962

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

We measure certain investments and non-financial assets (including property, plant and equipment) at fair value on a non-recurring basis in periods after initial measurement in circumstances when the fair value of such asset is impaired below its recorded cost. As of January 3, 2021 and December 29, 2019, there were no material items recorded at fair value.

Held-to-Maturity Debt Securities

Our debt securities, classified as held-to-maturity, are Philippine government bonds that we maintain as collateral for business transactions within the Philippines. These bonds have various maturity dates and are classified as “Restricted short-term marketable securities” on our Consolidated and Combined Balance Sheets. As of January 3, 2021 and December 29, 2019, these bonds had a carrying value of $1.4 million and $6.2 million, respectively. We record such held-to-maturity investments at amortized cost based on our ability and intent to hold the securities until maturity. We monitor for changes in circumstances and events that would affect our ability and intent to hold such securities until the recorded amortized costs are recovered. No other-than-temporary impairment loss was incurred during the periods presented.

Non-Marketable Equity Investments

Our non-marketable equity investments are securities in privately-held companies without readily determinable market values. On January 1, 2018, we adopted ASU 2016-01 and elected to adjust the carrying value of our non-marketable equity securities to cost less impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. As of January 3, 2021 and December 29, 2019, we had $4.0 million and $7.9 million in investments accounted for under the measurement alternative method, respectively.

Equity Method Investments

Our investments accounted for under the equity method are described in Note 10. Equity Investments. We monitor these investments, which are included within “Other long-term assets” in our Consolidated and Combined Balance Sheets, for impairment and record reductions in the carrying values when necessary. Circumstances that indicate an other-than-temporary decline include Level 3 measurements such as the valuation ascribed to the issuing

company in subsequent financing rounds, decreases in quoted market prices, and declines in the results of operations of the issuer.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Restructuring and Related Activities [Abstract]

RESTRUCTURING

12 Months Ended

Jan. 03, 2021

RESTRUCTURING

In connection with the Spin-off, the restructuring expenses were accounted for by SunPower and there were no restructuring expenses incurred in the books of Maxeon for fiscal year 2020.

February 2018 Restructuring Plan

During the first quarter of fiscal year 2018, SunPower adopted a restructuring plan and began implementing initiatives to reduce operating expenses and cost of revenue overhead in light of the known shorter-term impact of U.S. tariffs imposed on PV solar cells and modules pursuant to Section 201 of the Trade Act of 1974 and SunPower’s broader initiatives to control costs and improve cash flow. In connection with the plan, SunPower expects between 150 and 250 non-manufacturing employees to be affected, representing approximately 3% of its global workforce, with a portion of those employees exiting from us as part of a voluntary departure program. The changes to the workforce will vary by country, based on local legal requirements and consultations with employee works councils and other employee representatives, as appropriate.

The restructuring activities were substantially complete, and any remaining costs to be incurred were not expected to be material. We have incurred cumulative costs of $5.4 million as of December 29, 2019.

December 2016 Restructuring Plan

During the fourth quarter of fiscal year 2016, SunPower adopted a restructuring plan to reduce costs and focus on improving cash flow, primarily related to the closure of the Philippine-based Fab 2 manufacturing facility. There were charges of $1.8 million related to this plan recorded during fiscal year 2018 and charges during fiscal year 2019 were not material. The restructuring activities were substantially complete as of the second quarter of fiscal year 2018, and any remaining costs to be incurred are not expected to be material. Cumulative costs incurred under this plan were $157.4 million as of December 29, 2019.

Legacy Restructuring Plans

Prior to fiscal year 2016, SunPower implemented approved restructuring plans to align with changes in the global solar market, which included the consolidation of our Philippine manufacturing operations, as well as actions to accelerate operating cost reduction and improve overall operating efficiency. These restructuring activities were substantially complete as of the second quarter of fiscal year 2017, and any remaining costs to be incurred are not expected to be material. Cumulative costs incurred under these plans amounted to $164.3 million as of December 29, 2019.

The following table summarizes the period-to-date restructuring charges by plan recognized in our Consolidated and Combined Statements of Operations:


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019		December 30, 2018
February 2018 Restructuring Plan:
Severance and benefits	$	—	$	(234)	$	5,821
Other costs(1)	—		(299)		159
Total February 2018 Restructuring Plan	—		(533)		5,980
December 2016 Plan:
Severance and benefits	—		—		523
Lease and related termination costs	—		—		6
Other costs(1)	—		5		1,309
Total December 2016 Plan	—		5		1,838
Legacy Restructuring Plans:
Severance and benefits	—		—		(282)
Other costs(1)	—		11		230
Total Legacy Plan	—		11		(52)
Total restructuring charges	$	—	$	(517)	$	7,766

(1)Other costs primarily represent associated legal and advisory services, and costs of relocating employees.

The following table summarizes the restructuring reserve movements during fiscal year 2019:



(In thousands)	December 30, 2018		Charges (Benefits)		Recovery (Payments)		December 29, 2019
February 2018 Restructuring Plan:
Severance and benefits	$	4,516	$	(234)	$	(4,062)	$	220
Other costs(1)	—		(299)		299		—
Total February 2018 Restructuring Plan	4,516		(533)		(3,763)		220
December 2016 Plan:
Severance and benefits	—		—		—		—
Lease and related termination costs	—		—		—		—
Other costs(1)	—		5		(5)		—
Total December 2016 Plan	—		5		(5)		—
Legacy Restructuring Plans:
Severance and benefits	384		—		(141)		243
Other costs(1)	73		11		(32)		52
Total Legacy Plan	457		11		(173)		295
Total restructuring charges	$	4,973	$	(517)	$	(3,941)	$	515

(1)Other costs primarily represent associated legal and advisory services, and costs of relocating employees.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jan. 03, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Maxeon as a lessee

We lease certain facilities under non-cancellable operating leases from third parties. As of January 3, 2021 and December 29, 2019, future minimum lease payments for facilities under operating leases were $18.6 million and $28.3 million, respectively, to be paid over the remaining contractual terms of up to 6.2 years. We also lease certain buildings, machinery and equipment under non-cancellable finance leases. As of January 3, 2021 and December 29,

2019, future minimum lease payments for assets under finance leases were $1.6 million and $2.1 million, to be paid over the remaining contractual terms of up to 2.4 years and 3.4 years, respectively. Of the $1.6 million, $0.7 million is included in “Short-term debt” and $0.9 million is included in “Long-term debt” on the Consolidated and Combined Balance Sheets as of January 3, 2021.

We have disclosed quantitative information related to the lease contracts we have entered into as a lessee by aggregating the information based on the nature of the asset such that assets with similar characteristics and lease terms are shown within one single financial statement line item.

The table below presents the summarized quantitative information with regard to lease contracts we have entered into:


	Fiscal Year Ended
(In thousands)	January 3, 2021			December 29, 2019
Operating lease expense	$	4,016		$	5,119
Cash paid for amounts included in the measurement of lease liabilities
Cash paid for operating leases	$	3,556		$	5,259
Right-of-use assets obtained in exchange for lease obligations(1)	$	4,791		$	21,209
Weighted-average remaining lease term (in years) – operating leases	6.2			6.6
Weighted-average discount rate – operating leases	8.7		%	9.0		%

(1)Amounts for fiscal year 2019 included the transition adjustment for the adoption of ASC 842 and new ROU asset additions. See Note 2. Summary of Significant Accounting Policies.

The following table presents our minimum future rental payments on leases placed in service as of January 3, 2021:


(In thousands)	Operating Leases		Finance Lease
2021	$	3,547	$	703
2022	$	2,767	$	711
2023	$	2,831	$	196
2024	$	2,847	$	—
2025	$	2,097	$	—
Thereafter	$	4,476	$	—
Total lease payments	$	18,565	$	1,610
Less: imputed interest	$	(4,037)	$	(12)
Total	$	14,528	$	1,598

Maxeon as a lessor

We lease certain facilities under operating leases to third parties and an affiliate of SunPower. Some of these leases include an option to extend the lease either at the option of the lessees or upon mutual written agreement of both parties.

The following table presents our minimum future rental receivables on the operating leases as of January 3, 2021:


			Payments Due by Fiscal Year
(In thousands)	Total		2021		2022		2023		2024		2025		Thereafter
Minimum future rental receivable	$	10,914	$	2,623	$	2,623	$	2,623	$	2,623	$	422	$	—

Purchase Commitments

We purchase raw materials for inventory and manufacturing equipment from a variety of vendors. During the normal course of business, in order to manage manufacturing lead times and help assure adequate supply, we enter into agreements with contract manufacturers and suppliers that either allow them to procure goods and services based on specifications defined by us, or that establish parameters defining our requirements. In certain instances, these agreements allow us the option to cancel, reschedule or adjust our requirements based on our business needs before firm orders are placed. Consequently, purchase commitments arising from these agreements are excluded from our disclosed future obligations under non-cancellable and unconditional commitments.

We also have agreements with several suppliers, including one of our non-consolidated investees, for the procurement of polysilicon, ingots, and wafers, as well as certain module-level power electronics and related equipment. The agreements specify future quantities and pricing of products to be supplied by one vendor for periods of up to 2 years and provide for certain consequences, such as forfeiture of advanced deposits and liquidated damages relating to previous purchases, in the event that we terminate the arrangements or fail to satisfy our obligations under the agreements.

Future purchase obligations under non-cancellable purchase orders and long-term supply and service agreements as of January 3, 2021 are as follows:


(In thousands)	Fiscal Year 2021		Fiscal Year 2022		Total(1)
Future purchase obligations	$	214,845	$	125,804	$	340,649

(1)Total future purchase obligations comprised of $95.6 million related to non-cancellable purchase orders and $245.0 million related to long-term supply and service agreements.

We expect that all obligations related to non-cancellable purchase orders for manufacturing equipment will be recovered through future cash flows of the solar cell manufacturing lines and solar panel assembly lines when such long-lived assets are placed in service. Factors considered important that could result in an impairment review include significant under-performance relative to expected historical or projected future operating results, significant changes in the manner of use of acquired assets, and significant negative industry or economic trends. Obligations related to non-cancellable purchase orders for inventories match current and forecasted sales orders that will consume these ordered materials and actual consumption of these ordered materials is regularly compared to expected demand. We anticipate total obligations related to long-term supply agreements for inventories, some of which (in the case of polysilicon) are at purchase prices significantly above current market prices for similar materials available in the market, will be recovered because the quantities required to be purchased are expected to be utilized in the manufacture and profitable sale of solar power products in the future based on our long-term operating plans. Additionally, in order to reduce inventory and improve working capital, we have periodically elected to sell polysilicon inventory in the marketplace at prices below our purchase price, thereby incurring a loss. The terms of the long-term supply agreements are reviewed annually by us and we assess the need for any accruals for estimated losses on adverse purchase commitments, such as lower of cost or net realizable value adjustments that will not be recovered by future sales prices, forfeiture of advanced deposits and liquidated damages, as necessary.

Advances to Suppliers

As noted above, we have entered into agreements with various vendors, and such agreements with one of our vendors are structured as “take or pay” contracts, that specify future quantities and pricing of products to be supplied. Certain agreements also provide for penalties or forfeiture of advanced deposits in the event we terminate the arrangements. Under certain agreements, we were required to make prepayments to the vendors over the terms of the arrangements. As of January 3, 2021 and December 29, 2019, advances to suppliers totaled $92.9 million and $121.4 million, respectively, of which $43.7 million and $107.4 million are classified as “Advances to supplier, current portion” in our Consolidated and Combined Balance Sheets. One supplier accounted for 100% of total advances to suppliers as of January 3, 2021 and December 29, 2019.

Advances from Customers

The estimated utilization of advances from customers included within “Contract liabilities, current portion” and “Contract liabilities, net of current portion” on our Consolidated and Combined Balance Sheets as of January 3, 2021 is as follows:


(In thousands)	Fiscal Year 2021		Fiscal Year 2022		Fiscal Year 2023		Fiscal Year 2024		Thereafter		Total(1)
Estimated utilization of advances from customers	$	19,016	$	33,075	$	—	$	—	$	—	$	52,091

(1) We have entered into other agreements with customers who have made advance payments for solar power products and systems. These advances will be applied as shipments of product occur. In November 2016, SunPower and Total entered into a four-year, up to 200 MW supply agreement to support the solarization of Total facilities (see Note 3. Net Parent Investment and Transactions with SunPower and Total and Total S.A.); in March 2017, we received a prepayment totaling $88.5 million. In February 2020, we entered into an amendment agreement with Total to extend the term of the contract to December 2025. As of January 3, 2021 and December 29, 2019, the advance payment from Total was $42.4 million and $53.0 million, respectively, of which $9.3 million and $17.6 million were classified as short-term in our Consolidated and Combined Balance Sheets, based on projected shipment dates.

Product Warranties

The following table summarizes the product warranty activities for fiscal years 2020 and 2019:


	Fiscal Year
(In thousands)	2020		2019
Balance at the beginning of the period	$	37,065	$	50,754
Accruals for warranties issued during the period	5,418		10,571
Settlements and adjustments during the period	(11,354)		(24,260)
Balance at the end of the period	$	31,129	$	37,065

Liabilities Associated with Uncertain Tax Positions

Total liabilities associated with uncertain tax positions were $18.1 million and $12.8 million as of January 3, 2021 and December 29, 2019, respectively. These amounts are included within “Other long-term liabilities” in our Consolidated and Combined Balance Sheets as they are not expected to be paid within the next 12 months. Due to the complexity and uncertainty associated with our tax positions, we cannot make a reasonably reliable estimate of the period in which cash settlement, if any, would be made for our liabilities associated with uncertain tax positions in Other long-term liabilities.

Defined Benefit Pension Plans

Prior to the Spin-off, SunPower maintained defined benefit pension plans for certain of our employees and they continue to be part of these pension plans after the Spin-off and the maintenance of such defined benefit pension plans has been transferred to the Company. Benefits under these plans are generally based on an employee’s years of service and compensation. Funding requirements are determined on an individual country and plan basis and are subject to local country practices and market circumstances. The funded status of the pension plans, which represents the difference between the benefit obligation and fair value of plan assets, is calculated on a plan-by-plan basis. We have elected to measure plan assets and benefit obligation using the month-end that is closest to our fiscal year-end. The benefit obligation and related funded status are determined using assumptions as of the end of each fiscal year. We recognize the overfunded or underfunded status of our pension plans as an asset or liability on our Consolidated and Combined Balance Sheets. As of January 3, 2021 and December 29, 2019, the underfunded status of our pension plans presented within “Other long-term liabilities” on our Consolidated and Combined Balance Sheets was $3.0 million. The impact of transition assets and obligations and actuarial gains and losses are recorded within “Accumulated other comprehensive loss” and are generally amortized as a component of net periodic cost over the average remaining service period of participating employees. We recorded a gain of $0.3 million for fiscal year 2020, a loss of $1.9 million for fiscal year 2019 and a gain of $1.6 million for fiscal year 2018 related to our benefit plans.

Our entity in Philippine has a tax qualified defined benefit plan covering its regular employees. Under the plan, all employees of the entity who have not reached the age of 60 are qualified and become automatically members of the plan.

The Fund is administered by a trustee bank, under a Trust Agreement, designated by the Philippine’s subsidiary acting through the Retirement Committee. The Trustee shall have administrative control over the management of the Fund, and shall be vested with all powers, authority and discretion necessary or expedient for that purpose, in addition to any express powers conferred by the Trust Agreement. The Trustee may adopt and prescribe such rules and regulations as are necessary for the efficient administration of the Fund, provided such are not inconsistent with the Rules and Regulations of the Retirement Plan.

Under the existing regulatory framework in Philippine, it requires a provision for retirement pay to qualified private sector employees in the absence of any retirement plan in the entity, provided however that the employee’s retirement benefits under any collective bargaining and other agreement shall not be less than those provided under the law. The law does not requirement minimum funding of the plan.

Indemnifications

In the ordinary course of business, the Company enters into contractual arrangements under which the Company may agree to indemnify a third party to such arrangement from any losses incurred relating to the services they perform on behalf of the Company or for losses arising from certain events as defined within the particular contract, which may include, for example, litigation or claims relating to past performance. Historically, payments made related to these indemnifications have been immaterial.

Similarly, the Company enters into contractual arrangements under which SunPower or other third parties agrees to indemnify the Company for certain litigation and claims to which we are a party. As the exposure related to these claims are directly attributable to the Company’s historical operations, the Company has recognized a receivable from SunPower in the amount of $1.9 million as of January 3, 2021, consistent with the Company’s recognition and measurement principles and assumptions. The Company has also separately recognized a receivable for the indemnity provided by Total of $1.1 million as of December 29, 2019. This receivable is recognized utilizing the same recognition and measurement principles and assumptions that were used to measure the liability. The receivable were received during the year. The receivable balances are recorded in “Prepaid expenses and other current assets” in the Consolidated and Combined Balance Sheets.

Legal Matters

We are a party to various litigation matters and claims that arise from time to time in the ordinary course of our business. While we believe that the ultimate outcome of such matters will not have a material adverse effect on us, their outcomes are not determinable and negative outcomes may adversely affect our financial position, liquidity, or results of operations. In addition, under the Separation and Distribution Agreement entered into with SunPower in connection with the Spin-off, SunPower indemnifies us for certain litigation claims to which certain of our subsidiaries are named the defendant or party. The liabilities related to these legal claims and an offsetting receivable from SunPower are reflected on our Consolidated and Combined Balance Sheets as of January 3, 2021 and December 29, 2019. Please refer to Note 3. Net Parent Investment and Transactions with SunPower and Total and Total S.A

EQUITY INVESTMENTS

12 Months Ended

Jan. 03, 2021

Equity Method Investments and Joint Ventures [Abstract]

EQUITY INVESTMENTS

Our equity investments consist of equity method investments and equity investments without readily determinable fair value.

Equity Method Investments

Huansheng Photovoltaic (Jiangsu) Co., Ltd (“Huansheng”)

In March 2016, SunPower entered into an agreement with Dongfang Electric Corporation and TZS. to form Huansheng Photovoltaic (Jiangsu) Co., Ltd., a jointly owned solar cell manufacturing facility to manufacture our Performance line modules in China. The joint venture is based in Yixing City in Jiangsu Province, China. In March 2016, we made an initial $9.2 million investment for a 15% equity ownership interest in the joint venture, which was accounted for under the cost method. In February 2017, we invested an additional $9.0 million which included an investment of $7.7 million and reinvested dividends of $1.3 million, bringing our equity ownership to 20% of the joint venture. In February and April 2018, we invested an additional $6.3 million and $7.0 million (net of $0.7 million of dividends reinvested), respectively, maintaining our equity ownership at 20% of the joint venture.

We have concluded that we are not the primary beneficiary of the joint venture because, although we are obligated to absorb losses and has the right to receive benefits, we alone do not have the power to direct the activities of the joint venture that most significantly impact its economic performance. We account for our investment in the joint venture using the equity method because we are able to exercise significant influence over the joint venture due to our board position. The Company is not contractually obligated to provide additional funding to the joint venture and therefore, the maximum exposure to loss is restricted to the carrying amount of the investment as disclosed on the Consolidated and Combined Balance Sheets.

Huaxia CPV (Inner Mongolia) Power Co., Ltd. (“CCPV”)

In December 2012, SunPower entered into an agreement with Tianjin Zhonghuan Semiconductor Co. Ltd., Inner Mongolia Power Group Co. Ltd. and Hohhot Jinqiao City Development Company Co., Ltd. to form CCPV, a jointly owned entity to manufacture and deploy our low-concentration PV (“LCPV”) concentrator technology in Inner Mongolia and other regions in China. CCPV is based in Hohhot, Inner Mongolia. The establishment of the entity was subject to approval of the Chinese government, which was received in the fourth quarter of fiscal year 2013. In December 2013, we made a $16.4 million equity investment in CCPV, for a 25% equity ownership.

We have concluded that we are not the primary beneficiary of CCPV because, although we are obligated to absorb losses and have the right to receive benefits, we alone do not have the power to direct the activities of CCPV that most significantly impact its economic performance. We account for our investment in CCPV using the equity method because we are able to exercise significant influence over CCPV due to our board position. Due to changes in certain facts and circumstances, in fiscal year 2017, we impaired the entire amount of this investment.

Equity Investments without Readily Determinable Fair Value

Deca Technologies, Inc.

In September 2010, SunPower entered into an agreement to purchase preferred shares of Deca Technologies, Inc., a subsidiary of Cypress Semiconductor, that commercializes a proprietary electronic system interconnect technology. The investment was intended to monetize our intellectual property and capabilities in an adjacent field and potential co-development opportunities in the future. Pursuant to the share purchase agreement, we are entitled to certain liquidation and conversion rights of holders of such preferred shares. Concurrent with the purchase agreement, we also entered into a lease and facility service agreement and license agreement. During fiscal year 2020, in connection with an equity transaction with a third-party investor, the Company agreed to give up the liquidation and conversion rights in exchange for two transactions which increased the equity ownership to 8%, together with a cash dividend of $2.5 million representing a return of capital. In addition, 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 the third-party investor. The gain is presented within “Other, net” on our Consolidated and Combined Statements of Operations. As of January 3, 2021 and December 29, 2019, our total equity investment in Deca Technologies, Inc. was $4.0 million and $5.2 million, respectively.

Hohhot Huanju New Energy Development Co. Ltd. (“Hohhot”)

In November 2015, SunPower entered into an agreement with Zhonghuan Energy (Inner Mongolia) Co. Ltd and another investor to form Hohhot Huanju New Energy Development Co. Ltd, a jointly owned entity to develop, construct and operate a photovoltaic station up to 300 MW. Hohhot is based in Hohhot, Inner Mongolia. In December 2017, we made a $2.7 million equity investment in Hohhot, for a 4.6% equity ownership. During fiscal year 2020, we disposed the entire equity ownership in Hohhot to Zhonghuan Energy (Inner Mongolia) Co. Ltd at a consideration of RMB 21.9 million (equivalent to $3.2 million), determined based on valuation of Hohhot’s net assets and we recorded a gain of $0.5 million. This gain is presented within “Other, net” on our Consolidated and Combined Statements of Operations.


	As of
(In thousands)	January 3, 2021		December 29, 2019
Equity method investment	$	25,707	$	26,533
Equity investments without readily determinable fair value	4,000		7,860
Total equity investments	$	29,707	$	34,393

Related-party transactions with Huansheng are as follows:


	As of
(In thousands)	January 3, 2021		December 29, 2019
Accounts payable	$	35,477	$	62,811
Accrued liabilities	4,943		3,679


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019
Payments made to investee for products/services	$	267,247	$	295,415

Variable Interest Entities (“VIE”)

A VIE is an entity that has either (i) insufficient equity to permit the entity to finance its activities without additional subordinated financial support, or (ii) equity investors who lack the characteristics of a controlling financial interest. Under ASC 810, Consolidation, an entity that holds a variable interest in a VIE and meets certain requirements would be considered to be the primary beneficiary of the VIE and is required to consolidate the VIE in its consolidated financial statements. In order to be considered the primary beneficiary of a VIE, an entity must hold a variable interest in the VIE and have both:

•The power to direct the activities that most significantly impact the economic performance of the VIE; and

•The right to receive benefits from, or the obligation to absorb losses of the VIE that could be potentially significant to the VIE.

We follow guidance on the consolidation of VIEs that requires companies to utilize a qualitative approach to determine whether it is the primary beneficiary of a VIE. The process for identifying the primary beneficiary of a VIE requires consideration of the factors that indicate a party has the power to direct activities that most significantly impact the investees' economic performance, including powers granted to the investees' governing board and, to a certain extent, a company's economic interest in the investee. We analyze our investments in VIEs and classify them as either:

•A VIE that must be consolidated because we are the primary beneficiary or the investee is not a VIE and we hold the majority voting interest with no significant participative rights available to the other partners; or

•A VIE that does not require consolidation because we are not the primary beneficiary or the investee is not a VIE and we do not hold the majority voting interest.

As part of the above analysis, if it is determined that we have the power to direct the activities that most significantly impact the investees' economic performance, we consider whether or not we have the obligation to absorb losses or rights to receive benefits of the VIE that could potentially be significant to the VIE.

Consolidated VIE

To comply with local government laws in the Philippines, SPML Land, Inc. (“SPML Land”) was formed on July 20, 2006 to own land, buildings and equipment that is leased by SPML Land to SunPower Philippines Manufacturing Limited (“SPML”), which is a subsidiary of the Company. SPML owns 40% equity interest in SPML Land and certain SPML employees own the remaining 60% equity interest in SPML Land. Financing for the capital expenditure of SPML Land is provided by SPML.

Based on the relevant accounting guidance summarized above, we have concluded that we are the primary beneficiary as we have the power to direct the activities that significantly impact its economic performance and we have exposure to significant profits or losses, and as such, we consolidate the entity.

The aggregate carrying amounts of the total assets and total liabilities of SPML Land as of January 3, 2021 were $21.4 million and $9.9 million, respectively

EQUITY INVESTMENTS

Our equity investments consist of equity method investments and equity investments without readily determinable fair value.

Equity Method Investments

Huansheng Photovoltaic (Jiangsu) Co., Ltd (“Huansheng”)

Huaxia CPV (Inner Mongolia) Power Co., Ltd. (“CCPV”)

Equity Investments without Readily Determinable Fair Value

Deca Technologies, Inc.

Hohhot Huanju New Energy Development Co. Ltd. (“Hohhot”)


	As of
(In thousands)	January 3, 2021		December 29, 2019
Equity method investment	$	25,707	$	26,533
Equity investments without readily determinable fair value	4,000		7,860
Total equity investments	$	29,707	$	34,393

Related-party transactions with Huansheng are as follows:


	As of
(In thousands)	January 3, 2021		December 29, 2019
Accounts payable	$	35,477	$	62,811
Accrued liabilities	4,943		3,679


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019
Payments made to investee for products/services	$	267,247	$	295,415

Variable Interest Entities (“VIE”)

•The power to direct the activities that most significantly impact the economic performance of the VIE; and

•The right to receive benefits from, or the obligation to absorb losses of the VIE that could be potentially significant to the VIE.

•A VIE that does not require consolidation because we are not the primary beneficiary or the investee is not a VIE and we do not hold the majority voting interest.

Consolidated VIE

The aggregate carrying amounts of the total assets and total liabilities of SPML Land as of January 3, 2021 were $21.4 million and $9.9 million, respectively

DEBT AND CREDIT SOURCES	12 Months Ended
DEBT AND CREDIT SOURCES	Jan. 03, 2021
Debt Disclosure [Abstract]
DEBT AND CREDIT SOURCES	DEBT AND CREDIT SOURCES Convertible debt On July 17, 2020, Maxeon issued $200.0 million aggregate principal amount of its 6.5% Green Convertible Senior Notes due 2025 (“Green Convertible Notes”), if not earlier repurchased or converted. The Green Convertible Notes are senior, unsecured obligations of Maxeon and will accrue regular interest at a rate of 6.5% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2021. Upon satisfaction of the relevant conditions, the Green Convertible Notes will be convertible into the common stock of Maxeon at an initial conversion price of $18.19 per ordinary shares and an initial conversion rate of 54.9611 ordinary shares for $1,000 principal amount of Green Convertible Notes. The conversion rate and conversion price will be subjected to adjustment in specified circumstances. We will settle conversions by paying or delivering, as applicable, cash, ordinary shares of the Company or a combination of cash and ordinary shares of Maxeon, at our election. The Green Convertible Notes will be also redeemable, in whole or in part, at a cash redemption price equal to their principal amount, plus accrued and unpaid interest, if any, at Maxeon’s option at any time, and from time to time, on or after July 17, 2023 and on or before the 60th scheduled trading day immediately before the maturity date, but only if the last reported sale price per ordinary share of Maxeon exceeds 130% of the conversion price for a specified period of time. In addition, the Green Convertible Notes will be redeemable, in whole and not in part, at a cash redemption price equal to their principal amount, plus accrued and unpaid interest, if any, at Maxeon’s option in connection with certain changes in tax law. Upon the occurrence of a fundamental change (as defined in the Indenture), noteholders may require Maxeon to repurchase their Green Convertible Notes for cash. The repurchase price will be equal to the principal amount of the Green Convertible Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date. The Green Convertible Notes is classified as a financial instrument that has both an equity and liability component. The liability component is recorded at fair value on initial recognition with the residual accounted for in equity. Subsequently, the liability portion is recorded at amortized cost. As at January 3, 2021, the net carrying amount of this outstanding debt was $135.1 million, recorded in “Convertible debt” on the Consolidated and Combined Balance Sheets. The fair value of the Green Convertible Notes as at January 3, 2021, was $325.1 million, determined using Level 2 inputs based on market prices as reported by an independent pricing source and the face value of the debt is $200.0 million. Included in the net carrying amount of the Green Convertible Notes is the unamortized discount of $53.8 million, to be amortized over a term of the note until 2025, based on an effective interest rate of 15.7% and the unamortized debt issuance cost of $11.1 million. The interest expense arising from the convertible note that is recorded in the Consolidated and Combined Statements of Operation is $10.4 million for fiscal year 2020. As at January 3, 2021, the if-converted value of the Green Convertible Notes exceeds the outstanding principal amount by $111.9 million. Physical Delivery Forward On July 17, 2020 and in connection with the issuance of the Green Convertible Notes, the Company entered into a privately negotiated forward-starting physical delivery forward transaction (the “Physical Delivery Forward”) with Merrill Lynch International (the “Physical Delivery Forward Counterparty”), with respect to approximately $60.0 million worth of ordinary shares (the “Physical Delivery Maxeon Shares”), pursuant to which the Physical Delivery Forward Counterparty agreed to deliver the Physical Delivery Maxeon Shares to Maxeon or a third-party trustee designated by Maxeon for no consideration at or around the maturity of the Green Convertible Notes subject to the conditions set forth in the agreements governing the Physical Delivery Forward. The Physical Delivery Forward became effective on the first day of the 15 consecutive trading days commencing on September 9, 2020 and ended on September 29, 2020 (the “Note Valuation Period”). The Company filed a registration statement on Form F-3 with the SEC on September 2, 2020. On September 9, 2020, Maxeon filed a final prospectus supplement related to the offering of up to $60.0 million of its ordinary shares in connection with the Physical Delivery Forward. Up to Note Valuation date on September 29, 2020, we issued and sold $58.5 million out of the approximately $60.0 million worth of shares in the Physical Delivery Forward, representing 3.8 million shares issued with the weighted average underwritten price of $15.40. During the Note Valuation Period, the Physical Delivery Forward was a liability classified financial instrument that is remeasured to fair value as it represents a net cash settled provision that is akin to an obligation to repurchase the Company's stock. At the end of the Note Valuation Period, the carrying amount of the Physical Delivery Forward was $64.1 million and a gain of $8.5 million was recorded in Other income (expense), net in the Consolidated and Combined Statements of Operations. The fair value of the Physical Delivery Forward was affected by the Company’s share price and other factors impacting the valuation model. This was subsequently reclassified to equity after remeasurement, at the end of the Note Valuation Period, and thereafter will not be subsequently remeasured. Prepaid Forward On July 17, 2020 and in connection with the issuance of the Green Convertible Notes, Maxeon entered into a privately negotiated forward-starting forward share purchase transaction (the “Prepaid Forward”) with Merrill Lynch International (the “Prepaid Forward Counterparty”), pursuant to which Maxeon will repurchase approximately $40.0 million worth of ordinary shares, subject to the conditions set forth therein, including receipt of required shareholder approvals on an annual basis. The Prepaid Forward became effective on the first day of the Note Valuation Period. The number of ordinary shares of Maxeon to be repurchased under the Prepaid Forward is determined based on the arithmetic average of the volume-weighted average prices per ordinary share of Maxeon over the Note Valuation Period, subject to a floor price and subject under Singapore law to a limit in aggregate of no more than 20% of the total number of ordinary shares in Maxeon’s capital as of the date of the annual shareholder repurchase approval (calculated together with the number of ordinary shares to be repurchased in connection with the Physical Delivery Forward), and Maxeon will prepay the purchase price for the Prepaid Forward in cash using a portion of the net proceeds from the sale of the Green Convertible Notes. Under the terms of the Prepaid Forward, the Prepaid Forward Counterparty will be obligated to deliver the number of ordinary shares of Maxeon underlying the transaction to Maxeon which is 2.5 million shares, or pay cash to the extent Maxeon fails to provide to Prepaid Forward Counterparty evidence of a valid shareholder authorization, on or shortly after the maturity date of the Green Convertible Notes, subject to the ability of the Prepaid Forward Counterparty to elect to settle all or a portion of the transaction early. The Prepaid Forward is classified as an asset and remeasured to fair value at the end of each reporting period, with changes in fair value booked in earnings as the contract includes provisions that could require cash settlement. As of January 3, 2021, the carrying amount of the Prepaid Forward is $66.7 million and is recognized as Other long-term assets in the Consolidated and Combined Balance Sheets. The remeasurement to fair value for fiscal year 2020 was a gain of $29.7 million and recorded as Other income (expense), net in the Consolidated and Combined Statements of Operations. The fair value of the Prepaid Forward is affected by the Company’s share price and other factors impacting the valuation model. Other Debt and Credit Sources In 2019, SunPower entered into a Master Buyer Agreement, which entitles us to financing through HSBC Bank Malaysia Berhad to settle our outstanding vendor obligations. The agreement entitled us to combined financing of $25.0 million at an interest rate of 1.4% per annum over LIBOR interest rate over a maximum financing tenor of 90 days. As of December 29, 2019, the face value of this outstanding debt was $22.0 million recorded in “Short-term debt” on the Consolidated and Combined Balance Sheets. This facility was terminated prior to the Spin-off. In June 2018, SunPower entered into a Revolving Credit agreement which entitles us to import and export combined financing of $50.0 million through Standard Chartered Bank Malaysia Berhad at a 1.5% per annum over LIBOR interest rate over a maximum financing tenor of 90 days. As at January 3, 2021 and December 29, 2019, the outstanding amount and face value of this outstanding debt was $47.7 million and $37.7 million respectively. The total amount is recorded in “Short-term debt” on the Consolidated and Combined Balance Sheets and will mature in fiscal year 2021. During the fiscal years 2020 and 2019, the Company recorded interest expense of $1.0 million and $1.7 million, respectively, related to this debt, which is reported as interest expense on the Consolidated and Combined Statements of Operations. On July 14, 2020, certain of our subsidiaries entered into the following debt facilities with a syndicate of lenders (the “Bank Facilities”): •a $55.0 million term loan facility available to SunPower Philippines Manufacturing Ltd. (the “Philippines Term Loan”), which is a subsidiary of Maxeon; •a $50.0 million working capital facility available to Maxeon (the “Singapore Working Capital Facility”); and •$20.0 million term loan facility available to Maxeon (the “Singapore Term Loan” and, together with the Philippines Term Loan, the “Term Loans”). Each of the Bank Facilities mature and are repayable in full on July 14, 2023 (the “Termination Date”), subject to debt covenants and conditions that may limit our ability to access some or all of the funds under these facilities. The Singapore Working Capital Facility, bears interest at a rate of LIBOR plus 3.75% per annum, is available to be drawn through the date falling one month prior to the Termination Date. The Term Loans are available to be drawn by the relevant borrowers for a period of twelve months after the Spin-off and will be repayable, in equal quarterly installments over the 18-month period preceding the applicable maturity date. The Term Loans bear interest at a rate of LIBOR plus 3.90% per annum which is subjected to incremental adjustment as below, provided we meet all conditions stipulated for the Term loans of: •0.5% per annum from July 14, 2020 to the date falling 90 days after fulfilling the initial conditions; and •0.75% per annum thereafter. As of January 3, 2021, we have not drawn down on the Bank Facilities. We may not be able to meet the financial covenants underlying the Bank Facilities which would limit our ability to draw under these facilities. We intend to either renegotiate the Bank Facilities or seek to raise additional financing on more favorable terms. During fiscal year 2020, the Company recorded the related debt issuance cost of $9.2 million, in “Prepaid expense and other current assets” on the Consolidated and Combined Balance Sheets, and the charge to earnings of $1.7 million which is reported as “Interest expense” on the Consolidated and Combined Statements of Operations.

DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Jan. 03, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

The following tables present information about our hedge instruments measured at fair value on a recurring basis as of January 3, 2021 and December 29, 2019 all of which utilize Level 2 inputs under the fair value hierarchy:


(In thousands)	Balance Sheet Classification	January 3, 2021		December 29, 2019
Assets:
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Prepaid expenses and other current assets	$	328	$	514

Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Prepaid expenses and other current assets	$	1,669	$	488
		$	1,997	$	1,002

Liabilities:
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Accrued liabilities	$	—	$	461
Foreign currency option contracts	Accrued liabilities	2,814		922
		$	2,814	$	1,383
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Accrued liabilities	$	157	$	579
		$	2,971	$	1,962


	January 3, 2021
					Gross Amounts Not Offset in the Consolidated Balance Sheet, but Have Rights to Offset
(In thousands)	Gross Amounts		Net Amounts Presented		Financial Instruments
Derivative assets	$	1,997	$	1,997	$	1,997
Derivative liabilities	2,971		2,971		2,971


	December 29, 2019
					Gross Amounts Not Offset in the Combined Balance Sheet, but Have Rights to Offset
(In thousands)	Gross Amounts		Net Amounts Presented		Financial Instruments
Derivative assets	$	1,002	$	1,002	$	1,002
Derivative liabilities	1,962		1,962		1,962

We recorded a gain of $3.0 million, a loss of $1.7 million, and nil on these derivative instruments during fiscal year 2020, 2019 and 2018 respectively under “Other, net” in the Consolidated and Combined Statements of Operations.

As of December 29, 2019, there was a cumulative loss of $1.3 million recorded in “Accumulated Other Comprehensive Loss” (“OCL”) in connection with the derivatives designated as cash flow hedges. During fiscal year 2020, we recognized an unrealized loss of $2.6 million and reclassified $3.4 million of loss from OCL to profit or loss, with a net gain on derivatives of $0.8 million in the OCL. As of January 3, 2021, the cumulative loss in OCL for the derivatives was $0.5 million.

We classify cash flows related to derivative financial instruments as operating activities in our Consolidated and Combined Statements of Cash Flows

Foreign Currency Exchange Risk

Designated Derivatives Hedging Cash Flow Exposure

Our cash flow exposure primarily relates to anticipated third-party foreign currency revenues and expenses. We derive a portion of our revenues in foreign currencies, predominantly in Euros, as part of our ongoing business operations. In addition, a portion of our assets are held in foreign currencies. We enter into foreign currency forward contracts and option contracts designated as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than our functional currency. Our foreign currency forward and option contracts are entered into for periods consistent with the related underlying exposures and do not constitute positions that are independent of those exposures.

As of January 3, 2021, we had designated outstanding cash flow hedge option contracts with a notional value of $125.7 million. We designate either gross external or intercompany revenue up to our net economic exposure. These derivatives have a maturity of six months or less. The effective portion of these cash flow hedges is reclassified into revenue when third-party revenue is recognized in our Consolidated and Combined Statements of Operations.

Non-Designated Derivatives Hedging Transaction Exposure

Derivatives not designated as hedging instruments consist of forward and option contracts used to hedge re-measurement of foreign currency denominated monetary assets and liabilities primarily for intercompany transactions, receivables from customers, and payables to third parties. Changes in exchange rates between our subsidiaries’ functional currencies and the currencies in which these assets and liabilities are denominated can create fluctuations in our reported combined financial position, results of operations and cash flows. As of January 3, 2021, to hedge balance sheet exposure, we held foreign currency forward contracts with an aggregate notional value of $44.8 million. These foreign currency forward contracts have maturity of two months or less. As of December 29, 2019, to hedge balance sheet exposure, we held foreign currency forward contracts with an aggregate notional value of $17.5 million. These contracts matured in January 2020.

Credit Risk

Our option and forward contracts do not contain any credit-risk-related contingent features. We are exposed to credit losses in the event of nonperformance by the counterparties to these option and forward contracts. We enter into derivative contracts with high-quality financial institutions and limit the amount of credit exposure to any single counterparty. In addition, we continuously evaluate the credit standing of our counterparties.

INCOME TAXES

12 Months Ended

Jan. 03, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXESPrior to Spin-off, the Company’s income tax expense and deferred tax balances have been calculated on a separate return basis as if the Company filed its own tax returns, although its operations have been included in SunPower’s U.S. federal, state and non-U.S. tax returns. The separate return method applies the accounting guidance for income taxes to the standalone financial statements as if the Company were a separate taxpayer and a standalone enterprise for the period presented.

(Provision for) Benefit from Income Taxes

The components of current and deferred income tax expense reflected in the Consolidated and Combined Statements of Operations are as follows:


	Fiscal Year
(In thousands)	2020		2019		2018
(Provision for) Benefit from income taxes:
Current tax expense	$	(12,644)	$	(9,305)	$	(5,434)
Deferred tax benefit (expense)	517		(817)		6,484
(Provision for) Benefit from income taxes	$	(12,127)	$	(10,122)	$	1,050

The (provision for) benefit from income taxes differs from the amounts obtained by applying the statutory Singapore tax rate of 17% (2019 and 2018: U.S. statutory tax rate of 21%) to income before taxes as shown below:


	Fiscal Year
(In thousands)	2020			2019			2018
Statutory rate	17		%	21		%	21		%
Tax benefit at statutory rate	$	21,367		$	33,819		$	126,459
Foreign tax rate differential	(19,356)			1,116			(21,914)
Foreign income inclusion in the U.S.	—			(4,366)			(48,998)
Change in valuation allowance	(10,431)			(38,627)			(56,553)
Unrecognized tax (expense) benefits	(3,896)			(2,424)			1,187
Other	189			360			869
(Provision for) Benefit from income taxes	$	(12,127)		$	(10,122)		$	1,050

Tax incentives include a 5% preferential tax rate on gross income attributable to activities covered by Philippines Economic Zone Authority registrations in the Philippines. The Philippine net income attributable to all other activities will be taxed at the statutory Philippines corporate income tax rate, currently 30%. The earlier income tax holiday in the Philippines, granted for manufacturing lines, has since ended on January 1, 2020.

Maxeon Malaysia enjoys a tax holiday in Malaysia where we manufacture our solar power products, subject to certain terms and conditions imposed by the Malaysia Investment Development Authority. The current tax holiday in Malaysia was granted to our former joint venture AUOSP (now a wholly owned subsidiary). It reduces the tax rate from 24% to 0% (through June 2021 when the incentive would be subjected to review).

In 2020, Maxeon Singapore received a Development and Expansion Incentive - International Headquarters Award (“DEI-IHQ”) from the Singapore Economic Development Board (“EDB”). The incentive will take effect subsequent to fiscal year 2020 and will allow qualifying activities to be taxed at a concessionary tax rate, subject to certain terms and conditions imposed by EDB. All other non-qualifying income will be taxed at the statutory Singapore corporate income tax rate of 17%.

As part of the 2019 Federal Act and Tax Reform and AHV Financing in Switzerland, privileged corporate tax regimes on auxiliary companies in Switzerland will no longer be applicable from January 1, 2020 onwards. Hence, any prior preferential tax rate enjoyed on the auxiliary company status in Switzerland, where we sell our solar power products, was no longer valid. Starting January 1, 2020, our Swiss subsidiary is taxed at an effective tax rate of 14%.

Deferred Tax Assets and Liabilities

Long-term deferred tax assets and liabilities are presented in the Consolidated and Combined Balance Sheets as follows:


	As of
(In thousands)	January 3, 2021		December 29, 2019
Deferred tax assets:
Net operating loss carryforward(1)	$	19,659	$	142,052
Reserves and accruals	7,766		21,272
Fixed assets	40		1,684
Stock-based compensation—stock deductions	—		3,429
Total deferred tax assets	27,465		168,437
Valuation allowance(1)	(16,795)		(152,654)
Total deferred tax assets, net of valuation allowance	10,670		15,783
Deferred tax liabilities:
Intangible assets and accruals	(1,050)		(7,193)
Total deferred tax liabilities	(1,050)		(7,193)
Net deferred tax assets	$	9,620	$	8,590

(1)The federal and California state net operating losses from fiscal year 2019 will not be available to be carried forward because the U.S. corporation that generated them is no longer part of the Maxeon group and a valuation allowance was recorded in fiscal year 2019.

The Company’s deferred tax assets primarily relate to timing differences and net operating losses in Singapore, France, Malta, South Africa, Spain and Italy. The foreign net operating losses can be carried forward indefinitely and are available for offset against future tax liabilities.

Valuation Allowance

Valuation allowance is related to deferred tax assets in Singapore, Malta, South Africa and Spain and was determined by assessing both positive and negative evidence. In determining whether it is more likely than not that deferred tax assets are recoverable, the assessment is required to be done on a jurisdiction by jurisdiction basis; we believe that sufficient uncertainty exists with regard to the realizability of these assets such that a valuation allowance is necessary. Factors considered in providing a valuation allowance include the lack of a significant history of consistent profits, the lack of consistent profitability in the solar industry, the limited capacity of carrybacks to realize these assets, and other factors. Based on the absence of sufficient positive objective evidence, we are unable to assert that it is more likely than not that we will generate sufficient taxable income to realize net deferred tax assets. Should we achieve a certain level of profitability in the future, we may be able to reverse the valuation allowance which would result in a non-cash income statement benefit. The decrease in consolidated valuation allowance during fiscal year 2020 was $135.9 million. This is because the U.S. corporation that gave rise to the valuation allowance in fiscal year 2019 is no longer part of the Maxeon group. This was offset by an increase in other foreign valuation allowance during fiscal year 2020 of $10.4 million.

Unrecognized Tax Benefits

Current accounting guidance contains a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits during fiscal years 2020 and 2019 is as follows:


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019
Balance at beginning of period	$	33,502	$	32,119
Additions for tax positions related to the current year	10,839		2,380

Reductions for tax positions from prior years/statute of limitations expirations	(5,301)		(388)
Foreign exchange loss (gain)	466		(609)
Balance at end of the period	$	39,506	$	33,502

The unrecognized tax benefits for fiscal years 2020 and 2019 are $39.5 million and $33.0 million, respectively, that if recognized, would impact our effective tax rate. Certain components of the unrecognized tax benefits are recorded against deferred tax asset balances.

We believe that events that could occur in the next 12 months and cause a change in unrecognized tax benefits include, but are not limited to, the following:

•commencement, continuation or completion of examinations of our tax returns by foreign taxing authorities; and

•expiration of statutes of limitation on our tax returns.

The calculation of unrecognized tax benefits involves dealing with uncertainties in the application of complex global tax regulations. Uncertainties include, but are not limited to, the impact of legislative, regulatory and judicial developments, transfer pricing and the application of withholding taxes. We regularly assess our tax positions in light of legislative, bilateral tax treaty, regulatory and judicial developments in the countries in which we do business. We determined that an estimate of the range of reasonably possible change in the amounts of unrecognized tax benefits within the next 12 months cannot be made.

Classification of Interests and Penalties

We accrue interest and penalties on tax contingencies which are classified as “Provision for income taxes” in our Consolidated and Combined Statements of Operations. Accrued interest as of January 3, 2021 and December 29, 2019 was $0.6 million and $0.9 million, respectively. Accrued penalties were $0.8 million as of January 3, 2021 and nil as of December 29, 2019.

Tax Years and Examination

Tax returns are filed in each jurisdiction in which we are registered to do business. In many countries in which we file tax returns, a statute of limitations period exists. After the statute of limitations period expires, the respective tax authorities may no longer assess additional income tax for the expired period. Similarly, we are no longer eligible to file claims for refund for any tax that we may have overpaid. The following table summarizes our major tax jurisdictions and the tax years that remain subject to examination by these jurisdictions as of January 3, 2021:


Tax Jurisdictions			Tax Years
Switzerland			2015 and onward
Philippines			2010 and onward
Malaysia			2013 and onward
France			2017 and onward
Italy			2016 and onward

We are under tax examinations in Malaysia, Philippines, France, Italy. We do not expect the examinations to result in a material assessment outside of existing reserves. If a material assessment in excess of current reserves results, the amount that the assessment exceeds current reserves will be a current period charge to earnings.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Share-based Payment Arrangement [Abstract]

COMMON STOCK

12 Months Ended

Jan. 03, 2021

Equity [Abstract]

COMMON STOCK

Common Stock

Voting Rights - Common Stock

All common stockholders are entitled to one vote per share on all matters submitted to be voted on by our stockholders.

Dividends - Common Stock

All common stockholders are entitled to receive equal per share dividends when and if declared by the Board of Directors. Certain of our debt agreements place restrictions on us and our subsidiaries’ ability to pay cash dividends.

Shares Reserved for Future Issuance Under Equity Compensation Plans

We had shares of common stock reserved for future issuance as follows:


						As of
(In thousands)						January 3, 2021
Equity compensation plans						2,533

NET LOSS PER SHARE

12 Months Ended

Jan. 03, 2021

Earnings Per Share [Abstract]

NET LOSS PER SHARE

NET LOSS PER SHAREWe calculate basic net loss per share by dividing earnings allocated to common stockholders by the basic weighted-average number of common shares outstanding for the period. Shares issued in connection with the Physical Delivery Forward are excluded for the purpose of calculating net loss per share after its reclassification from liability to equity at the end of the Note Valuation Period as this constitutes a share lending arrangement. Diluted weighted-average shares is computed using basic weighted-average number of common shares outstanding plus any potentially dilutive securities outstanding during the period using the treasury-stock-type method and the if-converted method, except when their effect is anti-dilutive. Potentially dilutive securities include stock options, restricted stock units, and the outstanding Green Convertible Notes. The following table presents the calculation of basic and diluted net loss per share attributable to stockholders:


	Fiscal Year Ended
(In thousands, except per share data)	January 3, 2021	December 29, 2019	December 30, 2018
Net loss:
Net loss attributable to stockholders	(142,631)	(183,059)	(603,814)

Number of shares:
Basic and diluted weighted-average common shares(1), (2)	24,502	21,265	21,265

Basic and diluted net loss per share(1), (2)	(5.82)	(8.61)	(28.39)

(1)Basic and diluted loss per share for fiscal years 2019 and 2018 were calculated assuming the numbers of shares issued as part of the Spin-off to provide comparative figures to fiscal year 2020 results.

(2)As a result of our net loss attributable to stockholders for fiscal year 2020, the inclusion of all potentially dilutive restricted stock units, and common shares under the Green Convertible Notes would be anti-dilutive. Therefore, these were excluded from the computation of the weighted-average shares for diluted net loss per share.

STOCK-BASED COMPENSATION

12 Months Ended

Jan. 03, 2021

STOCK-BASED COMPENSATION

Prior to the Spin-off, certain of the Company’s employees participated in stock-based compensation plans sponsored by SunPower. SunPower’s stock-based compensation plans include incentive compensation plans. Certain awards granted under the plans were based on SunPower’s common shares and, as such, are not in the Company’s Consolidated and Combined Statements of Equity. Stock-based compensation expense include expense attributable to the Company based on the awards and terms previously granted to the Company’s employees and an allocation of SunPower’s corporate and shared functional employee expenses.

Subsequent to the Spin-off on August 26, 2020 and in accordance with the employee matters agreement entered with SunPower, certain adjustments were made to the unvested restricted stock-based compensation awards with the intention of preserving the intrinsic value of the awards prior to the Spin-off. Unvested restricted stock unit awards and performance-contingent awards have been adjusted to provide holders with restricted stock units awards and performance-contingent awards under the Company’s stock-based compensation plans.

The modification resulted in an issuance of 1.2 million shares to the employees of Maxeon in replacement of 2.1 million of unvested shares under SunPower’s Plan, with no changes to other terms of the original grant. There was no incremental compensation charge in relation to the modification.

Equity Incentive Programs

SunPower’s Stock-based Incentive Plans

During fiscal years 2020 and 2019, SunPower had two stock incentive plans applicable to our employees: (i) the Third Amended and Restated 2005 SunPower Corporation Stock Incentive Plan (“2005 Plan”) and (ii) the SunPower Corporation 2015 Omnibus Incentive Plan (“2015 Plan”). The 2005 Plan was adopted by SunPower’s Board of Directors in August 2005 and was approved by stockholders in November 2005. The 2015 Plan, which subsequently replaced the 2005 Plan, was adopted by SunPower’s Board of Directors in February 2015, and was approved by its stockholders in June 2015. On November 13, 2018, SunPower filed post-effective amendments to registration statements associated with the 2005 Plan, among others, to deregister shares no longer required to be registered for issuance under those plans, as no new awards had been made and all options had been exercised or had expired.

The 2015 Plan allows for the grant of options, as well as grant of stock appreciation rights, restricted stock grants, restricted stock units and other equity rights. The 2015 Plan also allows for tax withholding obligations related to stock option exercises or restricted stock awards to be satisfied through the retention of shares otherwise released upon vesting. The 2015 Plan includes an automatic annual increase mechanism equal to the lower of three percent of the outstanding shares of all classes of SunPower’s common stock measured on the last day of the immediately preceding fiscal year, 6 million shares, or such other number of shares as determined by SunPower’s Board of Directors. In fiscal year 2015, SunPower’s Board of Directors voted to reduce the stock incentive plan’s automatic increase from 3% to 2%. Under the 2015 Plan, the restricted stock grants and restricted stock units typically vest in equal installments annually over three years or four years.

The majority of shares issued are net of the minimum statutory withholding requirements that SunPower paid on behalf of our employees. During fiscal years 2020, 2019 and 2018, SunPower withheld 0.1 million, 0.2 million and 0.2 million shares to satisfy the employees’ tax obligations, respectively. SunPower paid such withholding requirements in cash to the appropriate taxing authorities. Shares withheld are treated as common stock repurchases for accounting and disclosure purposes and reduce the number of shares outstanding upon vesting.

Maxeon’s Stock-based Incentive Plans

On August 3, 2020, the Board of Maxeon adopted 2020 Omnibus Incentive Plan (“2020 Plan”) which was approved by SunPower, the sole shareholder prior to the Spin-off, on August 4, 2020. The 2020 Plan allows for the grant of awards representing the right to acquire, or based on the value of, Maxeon’s ordinary shares (“Maxeon Shares”), and includes non-statutory share options, share appreciation rights, restricted shares, restricted share units, and cash-based incentive awards. Replacement awards may also be granted under the Plan in substitution of awards of common stock of SunPower Corporation held by certain participants whose employment will be transferred to Maxeon. The 2020 Plan includes an automatic annual increase mechanism equal to three percent of the number of outstanding Maxeon Shares of all classes of Maxeon on the last day of the immediately preceding fiscal year or by a small number determined by the Board. Under the 2020 Plan, the restricted stock units typically vest in equal installments annually over four years.

The majority of shares issued are net of the minimum statutory withholding requirements that Maxeon pays on behalf our employees. During fiscal year 2020, Maxeon withheld 1,393 shares to satisfy the employees’ tax obligations. Maxeon pays such withholding requirements in cash to the appropriate taxing authorities. Shares withheld are treated as common stock repurchases for accounting and disclosure purposes and reduce the number of shares outstanding upon vesting.

The following table summarizes the stock-based compensation expense by line item in the Consolidated and Combined Statements of Operations:


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019		December 30, 2018
Cost of revenue	$	2,080	$	1,642	$	2,605
Research and development	1,217		1,880		2,519
Sales, general and administrative	3,953		3,613		3,456
Total stock-based compensation expense	$	7,250	$	7,135	$	8,580

The following table summarizes the non-vested restricted stock units' activities under the 2020 Plan:


	Restricted Stock Units	Performance Stock Units
(In thousands)	Shares	Shares
Assumption of 2015 Plan from SunPower	1,071	112
Activity between August 26, 2020 to January 3, 2021
Granted	116	—
Vested	(19)	—
Forfeited	(10)	—
Outstanding as of January 3, 2021	1,158	112

We estimate the fair value of our restricted stock awards and units at our stock price on the grant date. The weighted-average grant date fair value of restricted stock units and performance stock units granted under the 2020 Plan during fiscal year 2020 was $18.70. The total fair value of restricted stock units vested under the 2020 Plan during fiscal year 2020 was $0.4 million.

As of January 3, 2021, the total unrecognized stock-based compensation related to outstanding restricted stock units was $12.2 million, which we expect to recognize over a weighted-average period of 2.4 years.

SEGMENT AND GEOGRAPHICAL INFORMATION

12 Months Ended

Jan. 03, 2021

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHICAL INFORMATION

We determine operating segments based on how our chief operating decision maker (“CODM”) manages the business, including making operating decisions, deciding how to allocate resources and evaluating operating performance. Our CODM is our Chief Executive Officer who reviews our operating results on a consolidated basis. We operate in a single operating segment and a single reportable segment based on the operating results available and evaluated regularly by our CODM to make decisions about resource allocation and assess performance. The following table summarizes the allocation of net revenue based on geography:


	Fiscal Year
(In thousands)	2020		2019		2018
United States(1)	$	235,606	$	433,293	$	397,160
France	125,366		138,423		170,468
China	12,496		119,010		15,467
Japan	79,448		90,837		82,313
Rest of world(2)	391,920		416,738		246,905
Total revenue	$	844,836	$	1,198,301	$	912,313

(1)During fiscal years 2020, 2019 and 2018, we had sales of $231.2 million, $426.5 million and $388.5 million, respectively, to SunPower representing the sale of solar modules to SunPower. The pricing term prior to the Spin-off was made at transfer prices determined based on management’s assessment of market-based pricing terms. Subsequent to the Spin-off, pricing is based on the Supply Agreement with SunPower.

(2)Revenue included under “Rest of the world” comprise of countries that are individually less than 10% for the periods presented.

Revenues are attributed primarily based on the destination of the shipments.

The following table summarizes the allocation of net property, plant, and equipment based on geography:


	As of
(In thousands)	January 3, 2021		December 29, 2019
Malaysia	$	139,421	$	145,246
Philippines	79,506		92,275
United States	1,266		14,824
Mexico	17,792		18,862
Europe	8,896		9,855
Rest of world	27		138
Property, plant, and equipment, net, by geography	$	246,908	$	281,200

Long-lived assets are attributed based upon the country in which the asset is located or owned.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Property, Plant and Equipment

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jan. 03, 2021
Accounting Policies [Abstract]
Basis of Presentation Prior to Spin-off	Basis of Presentation Prior to Spin-offStandalone financial statements have not been historically prepared for our business. These consolidated and combined financial statements of the Company have been derived (i) from the consolidated financial statements and accounting records of SunPower as if we had operated on our own during the periods presented and were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) prior to August 26, 2020 and (ii) subsequent to August 26, 2020, the consolidated financial statements of the Company as an independent public company.
Principles of Combination and consolidation	Principles of Combination and consolidation The consolidated and combined financial statements includes the Company’s net assets and results of operations as described above prior to Spin-off. Subsequent to Spin-off, it incorporates the financial statements, its subsidiaries and the VIEs for which the Company or a subsidiary of the Company is the primary beneficiary. All intercompany transactions and accounts within the consolidated and combined businesses of the Company have been eliminated.
Fiscal Periods	Fiscal PeriodsThe Company has a 52-to-53-week fiscal year that ends on the Sunday closest to December 31. Accordingly, every fifth or sixth year will be a 53-week fiscal year. Fiscal year 2020 is a 53-week fiscal year while fiscal year 2019 and 2018 52-week fiscal years. Our fiscal year 2020 ended on January 3, 2021, our fiscal year 2019 ended on December 29, 2019 and our fiscal year 2018 ended on December 30, 2018.
Use of Estimates	Use of Estimates The preparation of the consolidated and combined financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated and combined financial statements and accompanying notes. Significant estimates in these consolidated and combined financial statements include (i) revenue recognition, specifically, management’s assessment of market-based pricing terms related to sales of solar modules to SunPower for periods prior to the Spin-off, the nature and timing of satisfaction of performance obligations, standalone selling price of performance obligations and variable consideration; (ii) allowances for doubtful accounts receivable; (iii) inventory write-downs; (iv) stock-based compensation; (v) long-lived asset impairment, specifically estimates for valuation assumptions including discount rates and future cash flows, economic useful lives of property, plant and equipment, intangible assets, and investments; (vi) fair value of financial instruments; (vii) valuation of contingencies such as accrued warranty; (viii) the incremental borrowing rate used in discounting of lease liabilities; and (ix) income taxes and tax valuation allowances. Actual results could materially differ from those estimates. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. We are not aware of any specific event or circumstance that would require updates to our estimates and judgments or require us to revise the carrying value of our assets or liabilities as of the date of issuance of the financial statements. These estimates may change as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions.
Lease Accounting – Arrangements with Maxeon as a lessee	Lease Accounting – Arrangements with Maxeon as a lessee We determine if an arrangement is a lease at inception. Our operating lease agreements are primarily for real estate and are included within operating lease right-of-use (“ROU”) assets and operating lease liabilities on the Consolidated and Combined Balance Sheets. Finance leased assets are included in property, plant and equipment, net and finance lease liabilities are included in short-term debt and long-term debt on the Consolidated and Combined Balance Sheets. We elected the practical expedient to combine our lease and related non-lease components for all our leases. In addition, leases with an initial term of 12 months or less are not recorded on the Consolidated and Combined Balance Sheets and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. ROU assets also include any lease prepayments made and exclude lease incentives. Many of our lessee agreements include options to extend the lease, which we do not include in our minimum lease terms unless they are reasonably certain to be exercised. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term.
Lease Accounting – Arrangements with Maxeon as a lessor	Lease Accounting – Arrangements with Maxeon as a lessorWe account for a lease arrangement in which we act as the lessor as an operating lease as it does not meet the criteria for a sales-type lease or a direct financing lease. Initial direct costs incurred in negotiating and arranging an operating lease are deferred and recognized over the lease term on the same basis as the lease income. Lease income is recognized on a straight-line basis over the lease term. We exclude from our measurement of consideration in a contract all taxes assessed by governmental authorities on lease that are both (i) imposed on and concurrent with a specific lease revenue-producing transaction and (ii) collected from a lessee.
Financial Instruments - Credit Losses	Financial instruments - Credit Losses Effective December 30, 2019, we adopted ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) and subsequent amendments to the initial guidance: ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11, ASU 2020-02, and ASU 2020-03 (collectively, “Topic 326”). Topic 326 requires remeasurement and recognition of expected credit losses for financial assets held. The amendment applies to entities which hold financial assets and net investments in leases that are not accounted for at fair value through net income as well as loans, debt securities, accounts receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For additional information on the changes resulting from the new stand and the impact to our financial results on adoption, refer to the section Recently Adopted Accounting Pronouncement below. We recognize an allowance for credit loss at the time a receivable is recorded based on our estimate of expected credit losses and adjust this estimate over the life of the receivable as needed. An account receivable is written off after all collection effort has ceased. We evaluate the aggregation and risk characteristics of a receivable pool and develop loss rates that reflect historical collections, current forecasts of future economic conditions over the time horizon we are exposed to credit risk, and payment terms or conditions that may materially affect future forecasts.
Advances to Suppliers	Advances to SuppliersAdvances to suppliers relate to prepayments made under long-term agreements with suppliers for the procurement of polysilicon that specify future quantities and pricing of polysilicon to be supplied by the vendors and provide for certain consequences, such as forfeiture of advanced deposits, in the event that the Company terminates the arrangement. The credit loss allowance on our advanced prepayments to suppliers under long-term supply agreements are reviewed by management at each reporting period. We have no history of recording write-offs related to our advanced prepayments to suppliers, and given our purchase obligation to these suppliers significantly exceeds the remaining advanced prepayments balance as of January 3, 2021 and December 29, 2019, the likelihood of our suppliers terminating the existing contractual arrangements is considered to be remote. We also periodically evaluate the credit worthiness of these suppliers and have noted no material deterioration in their respective credit conditions that would call into question their abilities to continue to supply us with the quantities of polysilicon specified in our supply agreements. The typical time it takes for us to receive the delivery of raw materials under this agreement was approximately 40-50 days from the date the purchase order is submitted to the supplier.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying values of cash and cash equivalents, accounts receivable, and accounts payable approximate their respective fair values due to their short-term maturities. Equity investments without readily determinable fair value are measured at cost less impairment and are adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. Derivative financial instruments are carried at fair value based on quoted market prices for financial instruments with similar characteristics. The effective portion of derivative financial instruments is excluded from earnings and reported as a component of “Accumulated other comprehensive loss” in the Consolidated and Combined Balance Sheets. The ineffective portion of derivatives financial instruments are included in “Other, net” in the Consolidated and Combined Statements of Operations.
Net Parent Investment	Net Parent Investment Net parent investment in the Consolidated and Combined Balance Sheets and Statements of Equity represents SunPower’s interest in the recorded net assets of the Company, the net effect of transactions with and allocations from SunPower and the Company’s accumulated deficit. See Note 3. Net Parent Investment and Transactions with SunPower and Total and Total S.A for further information about transactions between the Company and SunPower.
Comprehensive Loss	Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from non-owner sources. Our comprehensive loss for the period presented is comprised of (i) our net loss; (ii) foreign currency translation adjustment of our foreign subsidiaries whose assets and liabilities are translated from their respective functional currencies at exchange rates in effect at the balance sheet dates, and revenues and expenses are translated at average exchange rates prevailing during the applicable period; (iii) changes in fair value for derivatives designated as hedging instruments (see Note 12. Derivative Financial Instruments); and (iv) net gain (loss) on long-term pension liability adjustment.
Cash Equivalents	Cash Equivalents Highly liquid investments with original or remaining maturities of ninety days or less at the date of purchase are considered cash equivalents.
Short-Term and Long-Term Investments	Short-Term and Long-Term Investments We may invest in money market funds and debt securities. In general, investments with original maturities of greater than ninety days and remaining maturities of one year or less are classified as short-term investments, and investments with maturities of more than one year are classified as long-term investments. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such investments represent the investment of cash that is available for current operations. Despite the long-term maturities, we have the ability and intent, if necessary, to liquidate any of these investments in order to meet our working capital needs within our normal operating cycles. We have classified these investments as available-for-sale securities. Our debt securities, classified as held-to-maturity, are Philippine government bonds that we maintain as collateral for business transactions within the Philippines.
Cash in Restricted Accounts	Cash in Restricted Accounts Cash and cash equivalents in restricted accounts comprise primarily of monies held in escrow in connection with the Company’s module sales to a customer and accounts restricted for use in connection with our leases.
Inventories	Inventories Inventories are accounted for on a first-in-first-out basis and are valued at the lower of cost or net realizable value. We evaluate the realizability of our inventories, including purchase commitments under fixed-price long-term supply agreements, based on assumptions about expected demand and market conditions. Our assumption of expected demand is developed based on our analysis of bookings, sales backlog, sales pipeline, market forecast, and competitive intelligence. Our assumption of expected demand is compared to available inventory, production capacity, future polysilicon purchase commitments, available third-party inventory, and growth plans. Our factory production plans, which drive materials requirement planning, are established based on our assumptions of expected demand. We respond to reductions in expected demand by temporarily reducing manufacturing output and adjusting expected valuation assumptions as necessary. In addition, expected demand by geography has changed historically due to changes in the availability and size of government mandates and economic incentives. We evaluate whether losses should be accrued on long-term inventory purchase commitments that may arise from firm, non-cancellable, and unhedged commitments for the future purchase of inventory items. Such losses are measured in the same way as inventory losses, and are recognized unless determined to be recoverable through firm sales contacts or when there are other circumstances that reasonably assure continuing sales without price decline. Under the long-term polysilicon supply agreements for polysilicon between the Company and a supplier, pricing for purchases of polysilicon and specified quantities are set forth in the agreements. As a result of the significant declines in the prices of polysilicon available in the market due to an increase in industry-wide polysilicon manufacturing capacity and a decrease in global demand for polysilicon, the purchase prices set forth in the agreements currently exceed market prices. We evaluate the terms of our long-term inventory purchase agreements with suppliers, including joint ventures, for the procurement of polysilicon, ingots, wafers, and solar cells and establish accruals for estimated losses on adverse purchase commitments as necessary, such as lower of cost or net realizable value adjustments, forfeiture of advanced deposits and liquidated damages. Obligations related to non-cancellable purchase orders for inventories match current and forecasted sales orders that will consume these ordered materials, and actual consumption of these ordered materials is compared to expected demand regularly. We anticipate total obligations related to long-term supply agreements for inventories will be realized because quantities are less than our expected demand for our solar power products for the foreseeable future and because the raw materials subject to these long-term supply agreements are not subject to spoilage or other factors that would deteriorate its usability; however, if raw materials inventory balances temporarily exceed near-term demand, we may elect to sell such inventory to third parties to optimize working capital needs. In addition, because the purchase prices required by our long-term polysilicon agreements are significantly higher than current market prices for similar materials, if we are not able to profitably utilize this material in our operations or elect to sell near-term excess, we may incur additional losses. Other market conditions that could affect the realizable value of our inventories and are periodically evaluated by us include historical inventory turnover ratio, anticipated sales price, new product development schedules, the effect new products might have on the sale of existing products, product obsolescence, customer concentrations, the current market price of polysilicon as compared to the price in our fixed-price arrangements, and product merchantability, among other factors. If, based on assumptions about expected demand and market conditions, we determine that the cost of inventories exceeds its net realizable value or inventory is excess or obsolete, or we enter into arrangements with third parties for the sale of raw materials that do not allow us to recover our current contractually committed price for such raw materials, we record a write-down or accrual equal to the difference between the cost of inventories and the estimated net realizable value, which may be material. If actual market conditions are more favorable, we may have higher gross margins when products that have been previously written down are sold in the normal course of business (see Note 6. Balance Sheet Components).
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as presented below. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets and the remaining term of the lease. Repairs and maintenance costs are expensed as incurred.
Intangible Assets	Intangible AssetsIntangible assets are stated at cost less accumulated amortization. Definite-lived intangible assets are amortized using the straight-line method over the estimated useful lives of the intangible assets
Long-Lived Assets	Long-Lived Assets We evaluate our long-lived assets, including property, plant and equipment, and definite-lived intangible assets, for impairment whenever events or changes in circumstances arise. This evaluation includes consideration of technology obsolescence that may indicate that the carrying value of such assets may not be recoverable. The assessments require significant judgment in determining whether such events or changes have occurred. Factors considered important that could result in an impairment review include significant changes in the manner of use of a long-lived asset or in its physical condition, a significant adverse change in the business climate or economic trends that could affect the value of a long-lived asset, significant under-performance relative to expected historical or projected future operating results, or a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. For purposes of the impairment evaluation, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. We exercise judgment in assessing such groupings and levels. We then compare the estimated future undiscounted net cash flows expected to be generated by the asset group (including the eventual disposition of the asset group at residual value) to the asset group’s carrying value to determine if the asset group is recoverable. If our estimate of future undiscounted net cash flows is insufficient to recover the carrying value of the asset group, we record an impairment loss in the amount by which the carrying value of the asset group exceeds the fair value. Fair value is generally measured based on (i) internally developed discounted cash flows for the asset group, (ii) third-party valuations, and (iii) quoted market prices, if available. If the fair value of an asset group is determined to be less than its carrying value, an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs. See Note 6. Balance Sheet Components for additional information.
Product Warranties	Product Warranties We generally provide a 25-year standard warranty for the solar panels that we manufacture for defects in materials and workmanship and for greater than promised declines in power performance. The warranty provides that we will repair or replace any defective solar panels during the warranty period. In addition, we pass through to customers long-term warranties from the original equipment manufacturers of certain system components, such as inverters. Warranties of 25 years from solar panel suppliers are standard in the solar industry, while certain system components carry warranty periods ranging from 5 to 20 years. The warranty excludes system output shortfalls attributable to force majeure events, customer curtailment, irregular weather, and other similar factors. In the event that the system output falls below the warrantied performance level during the applicable warranty period, and provided that the shortfall is not caused by a factor that is excluded from the performance warranty, the warranty provides that we will elect to either (a) repair; (b) replace; or (c) pay the customer a liquidated damage based on the computation stipulated in the warranty agreement. We maintain reserves to cover the expected costs that could result from these warranties. Our expected costs are generally in the form of product replacement or repair. Warranty reserves are based on our best estimate of such costs and are recognized as a cost of revenue. We continuously monitor product returns for warranty failures and maintain a reserve for the related warranty expenses based on various factors including historical warranty claims, results of accelerated lab testing, field monitoring, vendor reliability estimates, and data on industry averages for similar products. Due to the potential for variability in these underlying factors, the difference between our estimated costs and our actual costs could be material to our combined financial statements. If actual product failure rates or the frequency or severity of reported claims differ from our estimates or if there are delays in our responsiveness to outages, we may be required to revise our estimated warranty liability. Historically, warranty costs have been within our expectations (see Note 9. Commitments and Contingencies).
Revenue Recognition, Cost of Revenue, Shipping and Handling Costs	Revenue Recognition We sell our solar panels and balance of system components primarily to dealers, project developers, system integrators and distributors, and recognize revenue at a point in time when control of such products transfers to the customer, which generally occurs upon shipment or delivery depending on the terms of the contracts with the customer. In determining the transaction price for revenue recognition, the Company evaluates whether the price is subject to refund or adjustment in determining the consideration to which the Company expects to be entitled. There are no rights of return; however, the Company may be required to pay consideration to the customer in certain instances of delayed delivery. The Company then allocates the transaction price to each distinct performance obligation based on their relative standalone selling price, when applicable. Other than standard warranty obligations, there are no significant post-shipment obligations (including installation, training or customer acceptance clauses) with any of our customers that could have an impact on revenue recognition. Our revenue recognition policy is consistent across all geographic areas. Cost of Revenue Cost of revenue includes actual cost of materials, labor and manufacturing overheads incurred for revenue-producing units shipped and includes associated warranty costs and other costs. Shipping and Handling Costs We account for shipping and handling activities related to contracts with customers as costs to fulfill our promise to transfer goods and, accordingly, record such costs in cost of revenue.
Taxes Collected from Customers and Remitted to Governmental Authorities	Taxes Collected from Customers and Remitted to Governmental Authorities We exclude from our measurement of transaction prices all taxes assessed by governmental authorities that are both (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers. Accordingly, such tax amounts are not included as a component of revenue or cost of revenue.
Stock-Based Compensation	Stock-Based Compensation The Company’s employees have historically participated in SunPower’s stock-based compensation plans. Stock-based compensation expense has been allocated to the Company based on the awards and terms previously granted to the Company’s employees as well as an allocation of SunPower’s corporate and shared functional employee expenses. Subsequent to the Spin-off on August 26, 2020 and in accordance with the employee matters agreement entered with SunPower, certain adjustments were made to the unvested restricted stock-based compensation awards with the intention of preserving the intrinsic value of the awards prior to the Spin-off. The Company issued adjusted restricted stock units (“RSUs”) and performance-based stock units (“PSUs”) for the unvested awards under the Company’s stock-based compensation plans. The stock-based compensation expense for the RSU is based on the measurement date fair value of the award and is recognized only for those awards expected to meet the service vesting conditions on a straight-line basis over the requisite service period of the award. For PSU grants, the expense is based on the measurement date fair value of the award and is recognized over the vesting term if the performance targets are considered probable of being achieved. Stock-based compensation expense is determined at the aggregate grant level for service-based awards and at the individual vesting tranche level for awards with performance and/or market conditions. The forfeiture rate is estimated based on SunPower’s historical experience.
Advertising Costs	Advertising CostsAdvertising costs are expensed as incurred.
Research and Development Expense	Research and Development Expense Research and development expense consists primarily of salaries and related personnel costs, depreciation and the cost of solar cell and solar panel materials. Research and development expense is reported net of contributions under collaborative arrangements. Subsequent to the Spin-off, the Company entered into the Collaboration Agreement with SunPower to perform research and development work in SunPower’s Silicon Valley research and development labs for the development of future technology improvements and continue to improve our expected product differentiation. All research and development costs are expensed as incurred.
Restructuring Charges	Restructuring Charges Prior to the Spin-off, the Company records charges associated with SunPower approved restructuring plans to reorganize one or more of the Company’s business segments, to remove duplicative headcount and infrastructure associated with business acquisitions or to simplify business processes and accelerate innovation. Restructuring charges can include severance costs in connection with the termination of a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, and contract cancellation costs. The Company records restructuring charges based on estimated employee terminations and site closure and consolidation plans. The Company accrues for severance and other employee separation costs under these actions when it was probable that benefits will be paid and the amount is reasonably estimable. The rates used in determining severance accruals are based on existing plans, historical experiences and negotiated settlements.
Translation of Foreign Currency	Translation of Foreign Currency The Company and certain of its subsidiaries use their respective local currency as their functional currency. Accordingly, foreign currency assets and liabilities are translated using exchange rates in effect at the end of the period. Aggregate exchange gains and losses arising from the translation of foreign assets and liabilities are included in “Accumulated other comprehensive loss” in the Consolidated and Combined Balance Sheets. Foreign subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities using exchange rates in effect at the end of the period. Exchange gains and losses arising from the remeasurement of monetary assets and liabilities are included in “Other, net” in the Consolidated and Combined Statements of Operations. Non-monetary assets and liabilities are carried at their historical values. We include gains or losses from foreign currency transactions in “Other, net” in the Consolidated and Combined Statements of Operations with the other hedging activities described in Note 12. Derivative Financial Instruments.
Concentration of Credit Risk	Concentration of Credit Risk We are exposed to credit losses in the event of nonperformance by the counterparties to our financial and derivative instruments. Financial and derivative instruments that potentially subject us to concentrations of credit risk are primarily cash and cash equivalents, investments, accounts receivable, advances to suppliers, and foreign currency forward contracts. Our investment policy requires cash and cash equivalents and investments to be placed with high-quality financial institutions and to limit the amount of credit risk from any one issuer. We perform ongoing credit evaluations of our customers’ financial condition whenever deemed necessary. We maintain an allowance for doubtful accounts based on the expected collectability of all accounts receivable, which takes into consideration an analysis of historical bad debts, specific customer creditworthiness and current economic trends. We believe that our concentration of credit risk is limited because of our large number of customers, credit quality of the customer base, small account balances for most of these customers, and customer geographic diversification. We have entered into agreements with vendors that specify future quantities and pricing of polysilicon to be supplied for the next two years. The purchase prices required by these polysilicon supply agreements are significantly higher than current market prices for similar materials. Under certain agreements, we were required to make prepayments to the vendors over the terms of the arrangements.
Income Taxes	Income Taxes The Company’s operations have historically been included in the tax returns filed by the respective SunPower entities of which the Company’s businesses are a part. Income tax expense and other income tax related information contained in these consolidated and combined financial statements are presented on a separate return basis as if the Company filed its own tax returns. The separate return method applies the accounting guidance for income taxes to the standalone financial statements as if the Company were a separate taxpayer and a standalone enterprise for the period presented. Current income tax liabilities related to entities which file jointly with SunPower were settled with SunPower and are relieved through Net parent investment in the Consolidated and Combined Balance Sheets and the Net parent (distribution) contribution in the Consolidated and Combined Statements of Cash Flows. The Company recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. The Company records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. The Company records accruals for uncertain tax positions when the Company believes that it is not more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Company makes adjustments to these accruals when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. The provision for income taxes include the effects of adjustments for uncertain tax positions, as well as any related interest and penalties. As applicable, interest and penalties on tax contingencies are included in “Provision for income taxes” in the Consolidated and Combined Statements of Operations and such amounts were not material for the period presented. In addition, foreign exchange gains (losses) may result from estimated tax liabilities, which are expected to be settled in currencies other than the U.S. dollar.
Investments in Equity Interests	Investments in Equity Interests Investments in entities in which we can exercise significant influence, but do not own a majority equity interest or otherwise control, are accounted for under the equity method. We record our share of the results of these entities as “Equity in losses of unconsolidated investees” on the Consolidated and Combined Statements of Operations. We monitor our investments for other-than-temporary impairment by considering factors such as current economic and market conditions and the operating performance of the entities and record reductions in carrying values when necessary. The fair value of privately-held investments is estimated using the best available information as of the valuation date, including current earnings trends, undiscounted cash flows, and other company specific information, including recent financing rounds (see Note 6. Balance Sheet Components and Note 7. Fair Value Measurements).
Variable Interest Entities ("VIE")	Variable Interest Entities (“VIE”) We regularly evaluate our relationships and involvement with unconsolidated VIEs and our other equity and cost method investments, to determine whether we have a controlling financial interest in them or have become the primary beneficiary, thereby requiring us to consolidate their financial results into our financial statements. If we determine that we hold a variable interest, we then evaluate whether we are the primary beneficiary. If we determine that we are the primary beneficiary, we will consolidate the VIE. The determination of whether we are the primary beneficiary is based upon whether we have the power to direct the activities that most directly impact the economic performance of the VIE and whether we absorb any losses or receive any benefits that would be potentially significant to the VIE.
Noncontrolling Interests	Noncontrolling Interests Noncontrolling interests represents the portion of net assets in consolidated subsidiaries that are not attributable, directly or indirectly, to us and are presented as a separate component within Equity in the Consolidated and Combined Balance Sheets. Net (income) losses attributable to the non-controlling interests are recorded within “Net (income) losses attributable to noncontrolling interests” in the Consolidated and Combined Statements of Operations.
Recently Adopted Accounting Pronouncements/Recent Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standard Board (“FASB”) issued Topic 326, to replace the prior incurred loss impairment methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in Topic 326 apply to entities which hold financial assets and net investments in leases that are not accounted for at fair value through net income as well as loans, debt securities, accounts receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. We adopted the ASU during the first quarter of fiscal year 2020. The adoption did not have a material impact on our consolidated and combined financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20), to add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. We adopted the ASU during the first quarter of fiscal year 2020. The adoption did not have a material impact on our consolidated and combined financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) which changes the fair value measurement disclosure requirements of ASC 820. The guidance adds and clarifies certain disclosure requirements for fair value measurements with the objective of improving the effectiveness of disclosures in the notes to financial statements. The adoption did not have an impact on our combined financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40), requiring a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets. We adopted the ASU during the first quarter of fiscal year 2020. The adoption did not have a material impact on our consolidated and combined financial statements. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities, which broadens the scope of the private company alternative to include all common control arrangements that meet specific criteria (not just leasing arrangements) and also eliminates the requirement that entities consider indirect interests held through related parties under common control in their entirety when assessing whether a decision-making fee is a variable interest. We adopted the ASU during the first quarter of fiscal year 2020. The adoption did not have a material impact on our consolidated and combined financial statements. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606, which (1) clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606; (2) adds unit-of-account guidance in Topic 808 to align with the guidance in Topic 606; and (3) requires that in a transaction with a collaborative arrangement participant that is not directly related to sales to third parties, presenting the transaction together with revenue recognized under Topic 606 is precluded if the collaborative arrangement participant is not a customer. We adopted the ASU during the first quarter of fiscal year 2020. The adoption did not have a material impact on our consolidated and combined financial statements. Recent Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for us no later than the first quarter of fiscal year 2021. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. While we are still evaluating the impacts of the provisions of ASU 2019-12 on our financial statements and disclosures, the impact is not expected to be material. In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323 and Topic 815. The amendment clarifies accounting for equity investments and non-derivative forward contracts or purchased call options under ASC 321. ASU 2020-01 is effective no later than the first quarter of fiscal year 2021 and the ASU should be applied prospectively. While we are still evaluating the impacts of the provisions of ASU 2020-01 on our financial statements and disclosures, the impact is not expected to be material. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) - Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The amendment reduces the number of accounting models used for convertible debt instruments and convertible preferred stock, which results in fewer embedded conversion features separately recognized from the host contracts. ASU 2020-06 is effective no later than the first quarter of fiscal year 2022. Early adoption is permitted no earlier than the first quarter of fiscal year 2021, and the ASU should be applied retrospectively. We are currently evaluating the impacts of the provisions of ASU 2020-06 on our financial statements and disclosure.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jan. 03, 2021

Accounting Policies [Abstract]


			Useful Lives in Years
Buildings			20 to 30
Leasehold improvements			1 to 20
Manufacturing equipment			7 to 15
Computer equipment			2 to 7
Solar power systems			30
Furniture and fixtures			3 to 5

Property, Plant and Equipment, Net


	As of
(In thousands)	January 3, 2021		December 29, 2019
Manufacturing equipment	$	123,453	$	131,332
Land and buildings	137,975		137,723
Leasehold improvements	82,091		99,165
Solar power systems	1,382		1,326
Computer equipment	34,811		30,039
Furniture and fixtures	1,303		2,662
Construction-in-process	24,626		12,500
Property, plant and equipment, gross	405,641		414,747
Less: accumulated depreciation	(158,733)		(133,547)
Property, plant and equipment, net	$	246,908	$	281,200

Schedule of Finite-Lived Intangible Assets

Definite-lived intangible assets are amortized using the straight-line method over the estimated useful lives of the intangible assets as follows:


			Useful Lives in Years
Patents			12
Trademarks			2 to 3
Purchased technology			1 to 7

Intangible Assets, Net


(In thousands)	Gross		Accumulated Amortization		Net
As of January 3, 2021
Trademarks and purchased technology	$	1,815	$	(1,359)	$	456

As of December 29, 2019
Trademarks and purchased technology	$	36,527	$	(31,435)	$	5,092

NET PARENT INVESTMENT AND TRANSACTIONS WITH SUNPOWER AND TOTAL AND TOTAL S.A (Tables)

12 Months Ended

Jan. 03, 2021

Schedule of Related Party Transactions

The below table summarizes our transactions with SunPower for fiscal year 2020 subsequent to the Spin-off, in relation to these agreements:



	Fiscal Year Ended
(In thousands)	January 3, 2021
Charges from product collaboration agreement	$	10,846
Net charges from transition service agreement	6,229

We had the following balances related to transactions with SunPower as of January 3, 2021 and December 29, 2019:


	As of
(In thousands)	January 3, 2021		December 29, 2019
Accounts receivable	$	31,967	$	51,767
Prepaid expenses and other current assets	9,665		—
Other receivables, non-current	1,458		—
Accounts payable	901		—
Accrued liabilities (Note 6)	7,942		—

The following related party balances and amounts are associated with transactions entered into with Total and its affiliates:


	As of
(In thousands)	January 3, 2021		December 29, 2019
Accounts receivable	$	1,273	$	2,734
Accounts payable(1)	3,100		4,921
Contract liabilities, current portion(1), (2)	9,405		18,786
Contract liabilities, net of current portion(2)	33,066		35,427

(1)In connection with obtaining solar module supplies related to one solar project, we incurred charges of $3.1 million, that will be paid directly to Total in fiscal year 2021.

(2)Refer to Note 9. Commitments and Contingencies—Advances from Customers.


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019		December 30, 2018
Revenue	$	73,599	$	33,371	$	27,785
Interest expense incurred on the 4.00% debentures acquired by Total(1)	2,667		4,000		4,000

Related-party transactions with Huansheng are as follows:


	As of
(In thousands)	January 3, 2021		December 29, 2019
Accounts payable	$	35,477	$	62,811
Accrued liabilities	4,943		3,679


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019
Payments made to investee for products/services	$	267,247	$	295,415

Schedule of Net Parent Contribution (Distribution), By Component

The components of Net parent (distribution) contribution on the Consolidated and Combined Statements of Equity for fiscal years 2020, 2019 and 2018 were as follows:


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019		December 30, 2018
General financing activities	$	(22,163)	$	61,971	$	152,239
Acquisition of intellectual property	(100,000)		—		—
Separation cost	(25,000)		—		—
Excess cash	(8,996)		—		—
Corporate allocations	9,238		26,096		18,822
Interest expense financed and paid by SunPower	12,167		19,485		17,000
Stock-based compensation expense	5,168		7,135		8,580
Total Net parent (distribution) contribution per Consolidated and Combined Statements of Equity	$	(129,586)	$	114,687	$	196,641

Schedule of Net Parent Contribution (Distribution), Reconciliation To Cash Flow


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019		December 30, 2018
Total Net parent (distribution) contribution per Consolidated and Combined Statements of Equity	$	(129,586)	$	114,687	$	196,641
Interest expense financed and paid by SunPower	(12,167)		(19,485)		(17,000)
Stock-based compensation expense	(5,168)		(7,135)		(8,580)
Other	12,925		4,342		28
Total Net parent (distribution) contribution per Consolidated and Combined Statements of Cash Flows	$	(133,996)	$	92,409	$	171,089

BALANCE SHEET COMPONENTS (Tables)

12 Months Ended

Jan. 03, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Accounts Receivable, Net


	As of
(In thousands)	January 3, 2021		December 29, 2019
Accounts receivable, gross(1)	$	80,829	$	153,633
Less: allowance for doubtful accounts	(3,768)		(2,767)
Less: allowance for sales returns	(359)		(501)
Accounts receivable, net	$	76,702	$	150,365


(In thousands)	Balance at Beginning of Period		Charges (Releases) to Expense		Deductions		Balance at End of Period
Allowance for doubtful accounts
Year ended January 3, 2021	$	2,767	$	2,548	$	(1,547)	$	3,768
Year ended December 29, 2019	4,250		353		(1,836)		2,767

Allowance for sales returns
Year ended January 3, 2021	$	501	$	(142)	$	—	$	359
Year ended December 29, 2019	604		(103)		—		501

Schedule of Inventory, Current

Inventories


	As of
(In thousands)	January 3, 2021		December 29, 2019
Raw materials	$	25,100	$	18,864
Work-in-process	61,059		62,045
Finished goods	83,081		113,943
Inventories	$	169,240	$	194,852

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure

Prepaid Expenses and Other Current Assets


	As of
(In thousands)	January 3, 2021		December 29, 2019
VAT receivables, current portion	$	2,971	$	4,997
Derivative financial instruments	1,997		1,002
Other receivables	22,447		23,835
Deferred issuance cost (Note 11)	9,228		—
Other prepaid expenses and other current assets	12,827		8,535
Prepaid expenses and other current assets	$	49,470	$	38,369

Schedule of Finite-Lived Intangible Assets

Definite-lived intangible assets are amortized using the straight-line method over the estimated useful lives of the intangible assets as follows:


			Useful Lives in Years
Patents			12
Trademarks			2 to 3
Purchased technology			1 to 7

Intangible Assets, Net


(In thousands)	Gross		Accumulated Amortization		Net
As of January 3, 2021
Trademarks and purchased technology	$	1,815	$	(1,359)	$	456

As of December 29, 2019
Trademarks and purchased technology	$	36,527	$	(31,435)	$	5,092

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

As of January 3, 2021, the estimated future amortization expense related to definite-lived intangible assets is as follows:


(In thousands)
Fiscal Year
2021			253
2022			132
2023			43
2024			14
2025			8
Thereafter			6
Total future amortization expense			456

Property, Plant and Equipment


			Useful Lives in Years
Buildings			20 to 30
Leasehold improvements			1 to 20
Manufacturing equipment			7 to 15
Computer equipment			2 to 7
Solar power systems			30
Furniture and fixtures			3 to 5

Property, Plant and Equipment, Net


	As of
(In thousands)	January 3, 2021		December 29, 2019
Manufacturing equipment	$	123,453	$	131,332
Land and buildings	137,975		137,723
Leasehold improvements	82,091		99,165
Solar power systems	1,382		1,326
Computer equipment	34,811		30,039
Furniture and fixtures	1,303		2,662
Construction-in-process	24,626		12,500
Property, plant and equipment, gross	405,641		414,747
Less: accumulated depreciation	(158,733)		(133,547)
Property, plant and equipment, net	$	246,908	$	281,200

Schedule of Other Assets

Other Long-term Assets


	As of
(In thousands)	January 3, 2021		December 29, 2019
Equity investments without readily determinable fair value (Note 10)	$	4,000	$	7,860
Equity method investments (Note 10)	25,707		26,533
Prepaid Forward (Note 11)	66,718		—
Prepayment for capital expenditure	7,271		1,170
Deferred tax assets (Note 13)	9,620		8,927
Other	9,758		8,560
Other long-term assets	$	123,074	$	53,050

Schedule of Accrued Liabilities

Accrued Liabilities


	As of
(In thousands)	January 3, 2021		December 29, 2019
Employee compensation and employee benefits	$	12,178	$	19,547
Short-term warranty reserves(1)	9,548		10,111
Restructuring reserve	—		515
Accrued interest payable	6,185		133
Other payables to SunPower (Note 3)	7,942		—
VAT payables	9,341		6,390
Derivative financial instruments	2,971		1,962
Legal expenses	3,450		5,265
Taxes payable	18,112		13,826
Liability due to supply agreement	—		28,031
Other	7,580		6,790
Accrued liabilities	$	77,307	$	92,570

Distribution Agreement and accordingly, the Company has recorded the corresponding receivables under “Prepaid expense and other current assets” on the Consolidated and Combined Balance Sheets.

Other Noncurrent Liabilities

Other Long-term Liabilities


	As of
(In thousands)	January 3, 2021		December 29, 2019
Long-term warranty reserves(1)	$	26,955	$	26,954
Unrecognized tax benefits	18,063		12,849
Long-term security deposit payable	2,148		2,728
Long-term pension liability	2,992		3,003
Deferred tax liabilities (Note 13)	—		337
Other	1,594		655
Other long-term liabilities	$	51,752	$	46,526

Schedule of Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Loss


	As of
(In thousands)	January 3, 2021		December 29, 2019
Cumulative translation adjustment	$	(13,280)	$	(9,462)
Unrecognized gain on long-term pension liability adjustment	3,365		3,102
Net unrealized loss on derivative instruments	(476)		(1,258)
Accumulated other comprehensive loss	$	(10,391)	$	(7,618)

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jan. 03, 2021

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured 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 January 3, 2021 and December 29, 2019:


	January 3, 2021				December 29, 2019
(In thousands)	Total Fair Value		Level 2		Total Fair Value		Level 2
Assets
Prepaid expenses and other current assets
Derivative financial instruments (Note 12)	$	1,997	$	1,997	$	1,002	$	1,002

Other long-term assets
Prepaid Forward	66,718		66,718		$	—	$	—
Total assets	$	68,715	$	68,715	$	1,002	$	1,002

Liabilities
Accrued liabilities
Derivative financial instruments (Note 12)	2,971		2,971		1,962		1,962
Total liabilities	$	2,971	$	2,971	$	1,962	$	1,962

RESTRUCTURING (Tables)

12 Months Ended

Jan. 03, 2021

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Charges by Plan

The following table summarizes the period-to-date restructuring charges by plan recognized in our Consolidated and Combined Statements of Operations:


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019		December 30, 2018
February 2018 Restructuring Plan:
Severance and benefits	$	—	$	(234)	$	5,821
Other costs(1)	—		(299)		159
Total February 2018 Restructuring Plan	—		(533)		5,980
December 2016 Plan:
Severance and benefits	—		—		523
Lease and related termination costs	—		—		6
Other costs(1)	—		5		1,309
Total December 2016 Plan	—		5		1,838
Legacy Restructuring Plans:
Severance and benefits	—		—		(282)
Other costs(1)	—		11		230
Total Legacy Plan	—		11		(52)
Total restructuring charges	$	—	$	(517)	$	7,766

(1)Other costs primarily represent associated legal and advisory services, and costs of relocating employees.

Schedule of Restructuring Reserve

The following table summarizes the restructuring reserve movements during fiscal year 2019:



(In thousands)	December 30, 2018		Charges (Benefits)		Recovery (Payments)		December 29, 2019
February 2018 Restructuring Plan:
Severance and benefits	$	4,516	$	(234)	$	(4,062)	$	220
Other costs(1)	—		(299)		299		—
Total February 2018 Restructuring Plan	4,516		(533)		(3,763)		220
December 2016 Plan:
Severance and benefits	—		—		—		—
Lease and related termination costs	—		—		—		—
Other costs(1)	—		5		(5)		—
Total December 2016 Plan	—		5		(5)		—
Legacy Restructuring Plans:
Severance and benefits	384		—		(141)		243
Other costs(1)	73		11		(32)		52
Total Legacy Plan	457		11		(173)		295
Total restructuring charges	$	4,973	$	(517)	$	(3,941)	$	515

(1)Other costs primarily represent associated legal and advisory services, and costs of relocating employees.

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Jan. 03, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Lessee Quantitative Information

The table below presents the summarized quantitative information with regard to lease contracts we have entered into:


	Fiscal Year Ended
(In thousands)	January 3, 2021			December 29, 2019
Operating lease expense	$	4,016		$	5,119
Cash paid for amounts included in the measurement of lease liabilities
Cash paid for operating leases	$	3,556		$	5,259
Right-of-use assets obtained in exchange for lease obligations(1)	$	4,791		$	21,209
Weighted-average remaining lease term (in years) – operating leases	6.2			6.6
Weighted-average discount rate – operating leases	8.7		%	9.0		%

(1)Amounts for fiscal year 2019 included the transition adjustment for the adoption of ASC 842 and new ROU asset additions. See Note 2. Summary of Significant Accounting Policies.

Schedule of Lessee, Operating Lease, Liability, Maturity

The following table presents our minimum future rental payments on leases placed in service as of January 3, 2021:


(In thousands)	Operating Leases		Finance Lease
2021	$	3,547	$	703
2022	$	2,767	$	711
2023	$	2,831	$	196
2024	$	2,847	$	—
2025	$	2,097	$	—
Thereafter	$	4,476	$	—
Total lease payments	$	18,565	$	1,610
Less: imputed interest	$	(4,037)	$	(12)
Total	$	14,528	$	1,598

Schedule of Finance Lease, Liability, Fiscal Year Maturity

The following table presents our minimum future rental payments on leases placed in service as of January 3, 2021:


(In thousands)	Operating Leases		Finance Lease
2021	$	3,547	$	703
2022	$	2,767	$	711
2023	$	2,831	$	196
2024	$	2,847	$	—
2025	$	2,097	$	—
Thereafter	$	4,476	$	—
Total lease payments	$	18,565	$	1,610
Less: imputed interest	$	(4,037)	$	(12)
Total	$	14,528	$	1,598

Schedule of Minimum Future Rental Receivables

The following table presents our minimum future rental receivables on the operating leases as of January 3, 2021:


			Payments Due by Fiscal Year
(In thousands)	Total		2021		2022		2023		2024		2025		Thereafter
Minimum future rental receivable	$	10,914	$	2,623	$	2,623	$	2,623	$	2,623	$	422	$	—

Schedule of Purchase Obligations

Future purchase obligations under non-cancellable purchase orders and long-term supply and service agreements as of January 3, 2021 are as follows:


(In thousands)	Fiscal Year 2021		Fiscal Year 2022		Total(1)
Future purchase obligations	$	214,845	$	125,804	$	340,649

(1)Total future purchase obligations comprised of $95.6 million related to non-cancellable purchase orders and $245.0 million related to long-term supply and service agreements.

Schedule Of Advances From Customers


(In thousands)	Fiscal Year 2021		Fiscal Year 2022		Fiscal Year 2023		Fiscal Year 2024		Thereafter		Total(1)
Estimated utilization of advances from customers	$	19,016	$	33,075	$	—	$	—	$	—	$	52,091

Schedule of Product Warranty

The following table summarizes the product warranty activities for fiscal years 2020 and 2019:


	Fiscal Year
(In thousands)	2020		2019
Balance at the beginning of the period	$	37,065	$	50,754
Accruals for warranties issued during the period	5,418		10,571
Settlements and adjustments during the period	(11,354)		(24,260)
Balance at the end of the period	$	31,129	$	37,065

EQUITY INVESTMENTS (Tables)

12 Months Ended

Jan. 03, 2021

Equity Method Investments and Joint Ventures [Abstract]

Debt Securities, Trading, and Equity Securities, FV-NI


	As of
(In thousands)	January 3, 2021		December 29, 2019
Equity method investment	$	25,707	$	26,533
Equity investments without readily determinable fair value	4,000		7,860
Total equity investments	$	29,707	$	34,393

Schedule of Related Party Transactions

The below table summarizes our transactions with SunPower for fiscal year 2020 subsequent to the Spin-off, in relation to these agreements:



	Fiscal Year Ended
(In thousands)	January 3, 2021
Charges from product collaboration agreement	$	10,846
Net charges from transition service agreement	6,229

We had the following balances related to transactions with SunPower as of January 3, 2021 and December 29, 2019:


	As of
(In thousands)	January 3, 2021		December 29, 2019
Accounts receivable	$	31,967	$	51,767
Prepaid expenses and other current assets	9,665		—
Other receivables, non-current	1,458		—
Accounts payable	901		—
Accrued liabilities (Note 6)	7,942		—

The following related party balances and amounts are associated with transactions entered into with Total and its affiliates:


	As of
(In thousands)	January 3, 2021		December 29, 2019
Accounts receivable	$	1,273	$	2,734
Accounts payable(1)	3,100		4,921
Contract liabilities, current portion(1), (2)	9,405		18,786
Contract liabilities, net of current portion(2)	33,066		35,427

(1)In connection with obtaining solar module supplies related to one solar project, we incurred charges of $3.1 million, that will be paid directly to Total in fiscal year 2021.

(2)Refer to Note 9. Commitments and Contingencies—Advances from Customers.


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019		December 30, 2018
Revenue	$	73,599	$	33,371	$	27,785
Interest expense incurred on the 4.00% debentures acquired by Total(1)	2,667		4,000		4,000

Related-party transactions with Huansheng are as follows:


	As of
(In thousands)	January 3, 2021		December 29, 2019
Accounts payable	$	35,477	$	62,811
Accrued liabilities	4,943		3,679


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019
Payments made to investee for products/services	$	267,247	$	295,415

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Jan. 03, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position


(In thousands)	Balance Sheet Classification	January 3, 2021		December 29, 2019
Assets:
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Prepaid expenses and other current assets	$	328	$	514

Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Prepaid expenses and other current assets	$	1,669	$	488
		$	1,997	$	1,002

Liabilities:
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Accrued liabilities	$	—	$	461
Foreign currency option contracts	Accrued liabilities	2,814		922
		$	2,814	$	1,383
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Accrued liabilities	$	157	$	579
		$	2,971	$	1,962

Schedule of Offsetting Assets


	January 3, 2021
					Gross Amounts Not Offset in the Consolidated Balance Sheet, but Have Rights to Offset
(In thousands)	Gross Amounts		Net Amounts Presented		Financial Instruments
Derivative assets	$	1,997	$	1,997	$	1,997
Derivative liabilities	2,971		2,971		2,971


	December 29, 2019
					Gross Amounts Not Offset in the Combined Balance Sheet, but Have Rights to Offset
(In thousands)	Gross Amounts		Net Amounts Presented		Financial Instruments
Derivative assets	$	1,002	$	1,002	$	1,002
Derivative liabilities	1,962		1,962		1,962

Schedule of Offsetting Liabilities


	January 3, 2021
					Gross Amounts Not Offset in the Consolidated Balance Sheet, but Have Rights to Offset
(In thousands)	Gross Amounts		Net Amounts Presented		Financial Instruments
Derivative assets	$	1,997	$	1,997	$	1,997
Derivative liabilities	2,971		2,971		2,971


	December 29, 2019
					Gross Amounts Not Offset in the Combined Balance Sheet, but Have Rights to Offset
(In thousands)	Gross Amounts		Net Amounts Presented		Financial Instruments
Derivative assets	$	1,002	$	1,002	$	1,002
Derivative liabilities	1,962		1,962		1,962

INCOME TAXES (Tables)

12 Months Ended

Jan. 03, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Current and Deferred Income Tax Expense (Benefit)

The components of current and deferred income tax expense reflected in the Consolidated and Combined Statements of Operations are as follows:


	Fiscal Year
(In thousands)	2020		2019		2018
(Provision for) Benefit from income taxes:
Current tax expense	$	(12,644)	$	(9,305)	$	(5,434)
Deferred tax benefit (expense)	517		(817)		6,484
(Provision for) Benefit from income taxes	$	(12,127)	$	(10,122)	$	1,050

Schedule of Effective Income Tax Rate Reconciliation


	Fiscal Year
(In thousands)	2020			2019			2018
Statutory rate	17		%	21		%	21		%
Tax benefit at statutory rate	$	21,367		$	33,819		$	126,459
Foreign tax rate differential	(19,356)			1,116			(21,914)
Foreign income inclusion in the U.S.	—			(4,366)			(48,998)
Change in valuation allowance	(10,431)			(38,627)			(56,553)
Unrecognized tax (expense) benefits	(3,896)			(2,424)			1,187
Other	189			360			869
(Provision for) Benefit from income taxes	$	(12,127)		$	(10,122)		$	1,050

Schedule of Deferred Tax Assets and Liabilities

Long-term deferred tax assets and liabilities are presented in the Consolidated and Combined Balance Sheets as follows:


	As of
(In thousands)	January 3, 2021		December 29, 2019
Deferred tax assets:
Net operating loss carryforward(1)	$	19,659	$	142,052
Reserves and accruals	7,766		21,272
Fixed assets	40		1,684
Stock-based compensation—stock deductions	—		3,429
Total deferred tax assets	27,465		168,437
Valuation allowance(1)	(16,795)		(152,654)
Total deferred tax assets, net of valuation allowance	10,670		15,783
Deferred tax liabilities:
Intangible assets and accruals	(1,050)		(7,193)
Total deferred tax liabilities	(1,050)		(7,193)
Net deferred tax assets	$	9,620	$	8,590

Summary of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits during fiscal years 2020 and 2019 is as follows:


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019
Balance at beginning of period	$	33,502	$	32,119
Additions for tax positions related to the current year	10,839		2,380

Reductions for tax positions from prior years/statute of limitations expirations	(5,301)		(388)
Foreign exchange loss (gain)	466		(609)
Balance at end of the period	$	39,506	$	33,502

Summary of Income Tax Examinations and Jurisdictions

The following table summarizes our major tax jurisdictions and the tax years that remain subject to examination by these jurisdictions as of January 3, 2021:


Tax Jurisdictions			Tax Years
Switzerland			2015 and onward
Philippines			2010 and onward
Malaysia			2013 and onward
France			2017 and onward
Italy			2016 and onward

COMMON STOCK (Tables)

12 Months Ended

Jan. 03, 2021

Equity [Abstract]

Schedule Of Shares Reserved For Future Issuance Under Equity Compensation Plans

We had shares of common stock reserved for future issuance as follows:


						As of
(In thousands)						January 3, 2021
Equity compensation plans						2,533

NET LOSS PER SHARE (Tables)

12 Months Ended

Jan. 03, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table presents the calculation of basic and diluted net loss per share attributable to stockholders:


	Fiscal Year Ended
(In thousands, except per share data)	January 3, 2021	December 29, 2019	December 30, 2018
Net loss:
Net loss attributable to stockholders	(142,631)	(183,059)	(603,814)

Number of shares:
Basic and diluted weighted-average common shares(1), (2)	24,502	21,265	21,265

Basic and diluted net loss per share(1), (2)	(5.82)	(8.61)	(28.39)

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Jan. 03, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Stock-based Compensation Expense

The following table summarizes the stock-based compensation expense by line item in the Consolidated and Combined Statements of Operations:


	Fiscal Year Ended
(In thousands)	January 3, 2021		December 29, 2019		December 30, 2018
Cost of revenue	$	2,080	$	1,642	$	2,605
Research and development	1,217		1,880		2,519
Sales, general and administrative	3,953		3,613		3,456
Total stock-based compensation expense	$	7,250	$	7,135	$	8,580

Schedule of Nonvested Restricted Stock Units Activity

The following table summarizes the non-vested restricted stock units' activities under the 2020 Plan:


	Restricted Stock Units	Performance Stock Units
(In thousands)	Shares	Shares
Assumption of 2015 Plan from SunPower	1,071	112
Activity between August 26, 2020 to January 3, 2021
Granted	116	—
Vested	(19)	—
Forfeited	(10)	—
Outstanding as of January 3, 2021	1,158	112

SEGMENT AND GEOGRAPHICAL INFORMATION (Tables)

12 Months Ended

Jan. 03, 2021

Segment Reporting [Abstract]

Schedule of Allocation of Net Revenues Based on Geography

The following table summarizes the allocation of net revenue based on geography:


	Fiscal Year
(In thousands)	2020		2019		2018
United States(1)	$	235,606	$	433,293	$	397,160
France	125,366		138,423		170,468
China	12,496		119,010		15,467
Japan	79,448		90,837		82,313
Rest of world(2)	391,920		416,738		246,905
Total revenue	$	844,836	$	1,198,301	$	912,313

(2)Revenue included under “Rest of the world” comprise of countries that are individually less than 10% for the periods presented.

Schedule of Property, Plant and Equipment by Geography

The following table summarizes the allocation of net property, plant, and equipment based on geography:


	As of
(In thousands)	January 3, 2021		December 29, 2019
Malaysia	$	139,421	$	145,246
Philippines	79,506		92,275
United States	1,266		14,824
Mexico	17,792		18,862
Europe	8,896		9,855
Rest of world	27		138
Property, plant, and equipment, net, by geography	$	246,908	$	281,200

BACKGROUND AND BASIS OF PRESENTATION (Details) $ in Millions	Aug. 26, 2020 USD ($) shares	Nov. 11, 2019 vote	Dec. 31, 2015 USD ($)
Debt Instrument [Line Items]
Independent publicly traded companies \| vote		2
TZS SG
Debt Instrument [Line Items]
Consideration received on transaction	$ 298.0
Number of shares issued in transaction \| shares	8,915,692
Percentage of ownership before transaction	29.50%
Total
Debt Instrument [Line Items]
Percentage of ownership after transaction	36.40%
Debentures Due 2023 \| SunPower
Debt Instrument [Line Items]
Principal amount			$ 425.0
Stated percentage			4.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018
Concentration [Line Items]
Advances to suppliers	$ 92,900	$ 121,400
Accounts receivable, net	76,700
Less: allowance for doubtful accounts	$ (3,768)	(2,767)	$ (4,250)
Trade account receivable, percentage outstanding	95.00%
Advertising expense	$ 2,400	3,100	800
SunPower
Concentration [Line Items]
Sales from related party	$ 231,200	$ 426,500	$ 388,500
Customer Concentration Risk \| Total Revenue
Concentration [Line Items]
Concentration risk, percentage	27.40%	35.60%	42.60%
Customer Concentration Risk \| Accounts Receivable \| SunPower
Concentration [Line Items]
Concentration risk, percentage	39.50%	33.70%
Customer Concentration Risk \| Accounts Receivable \| Customer One of Three
Concentration [Line Items]
Concentration risk, percentage	15.10%
Customer Concentration Risk \| Accounts Receivable \| Customer Two of Three
Concentration [Line Items]
Concentration risk, percentage	11.60%
Customer Concentration Risk \| Accounts Receivable \| Customer Three of Three
Concentration [Line Items]
Concentration risk, percentage	10.60%
Customer Concentration Risk \| Accounts Receivable \| Customer One of Two
Concentration [Line Items]
Concentration risk, percentage		20.40%
Customer Concentration Risk \| Accounts Receivable \| Customer Two of Two
Concentration [Line Items]
Concentration risk, percentage		13.60%
Minimum
Concentration [Line Items]
Advances to suppliers, term	40 days
Standard warranty term	5 years
Maximum
Concentration [Line Items]
Advances to suppliers, term	50 days
Standard warranty term	20 years
Solar power systems
Concentration [Line Items]
Standard warranty term	25 years
Polysilicon
Concentration [Line Items]
Advances to suppliers		$ 28,500
Concentration risk, term	2 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment (Details)	12 Months Ended
	Jan. 03, 2021
Buildings \| Minimum
Property, Plant and Equipment [Line Items]
Useful Lives in Years	20 years
Buildings \| Maximum
Property, Plant and Equipment [Line Items]
Useful Lives in Years	30 years
Leasehold improvements \| Minimum
Property, Plant and Equipment [Line Items]
Useful Lives in Years	1 year
Leasehold improvements \| Maximum
Property, Plant and Equipment [Line Items]
Useful Lives in Years	20 years
Manufacturing equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful Lives in Years	7 years
Manufacturing equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful Lives in Years	15 years
Computer equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful Lives in Years	2 years
Computer equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful Lives in Years	7 years
Solar power systems
Property, Plant and Equipment [Line Items]
Useful Lives in Years	30 years
Furniture and fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Useful Lives in Years	3 years
Furniture and fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Useful Lives in Years	5 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets (Details)	12 Months Ended
	Jan. 03, 2021
Patents
Finite-Lived Intangible Assets [Line Items]
Useful Lives in Years	12 years
Trademarks \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Lives in Years	2 years
Trademarks \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Lives in Years	3 years
Purchased technology \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Lives in Years	1 year
Purchased technology \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Lives in Years	7 years

NET PARENT INVESTMENT AND TRANSACTIONS WITH SUNPOWER AND TOTAL AND TOTAL S.A - Narrative and Agreements With SunPower (Details) - USD ($) $ in Thousands		12 Months Ended
	Aug. 26, 2020	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018	Dec. 31, 2015
SunPower
Related Party Transaction [Line Items]
Sales from related party		$ 231,200	$ 426,500	$ 388,500
Accounts receivable		31,967	51,767
Corporate allocations		9,200	26,100	18,800
Interest expense financed by SunPower		12,167	19,485	17,000
Prepaid expenses and other current assets		9,665	0
Other receivables, non-current		1,458	0
Accounts payable		901	0
Accrued liabilities		7,942	0
SunPower \| Debentures Due 2023
Related Party Transaction [Line Items]
Stated percentage					4.00%
Interest expense financed by SunPower		11,300	$ 17,000	$ 17,000
SunPower \| Expense From Collaboration Agreement
Related Party Transaction [Line Items]
Expenses		10,846
SunPower \| Expense From Transition Service Agreement
Related Party Transaction [Line Items]
Expenses		$ 6,229
Total
Related Party Transaction [Line Items]
Ownership percentage		32.30%
TZS SG
Related Party Transaction [Line Items]
Ownership percentage		26.20%
TZS SG
Related Party Transaction [Line Items]
Consideration received on transaction	$ 298,000
Number of shares issued in transaction	8,915,692

NET PARENT INVESTMENT AND TRANSACTIONS WITH SUNPOWER AND TOTAL AND TOTAL S.A - Components of Net Parent Contribution (Details) - USD ($)	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018
Related Party Transaction [Line Items]
Separation cost	$ 0	$ 517,000	$ (7,766,000)
Stock-based compensation	7,250,000	7,135,000	8,580,000
Net parent contribution	(129,586,000)	114,687,000	196,641,000
Total Net parent (distribution) contribution per Consolidated and Combined Statements of Equity	(129,586,000)	114,687,000	196,641,000
Stock-based compensation expense	(7,250,000)	(7,135,000)	(8,580,000)
Total Net parent (distribution) contribution per Consolidated and Combined Statements of Cash Flows	(133,996,000)	92,409,000	171,089,000
SunPower
Related Party Transaction [Line Items]
Corporate allocations	9,200,000	26,100,000	18,800,000
Interest expense financed by SunPower	12,167,000	19,485,000	17,000,000
Stock-based compensation	5,168,000	7,135,000	8,580,000
Net parent contribution	(129,586,000)	114,687,000	196,641,000
Total Net parent (distribution) contribution per Consolidated and Combined Statements of Equity	(129,586,000)	114,687,000	196,641,000
Interest expense financed by SunPower	(12,167,000)	(19,485,000)	(17,000,000)
Stock-based compensation expense	(5,168,000)	(7,135,000)	(8,580,000)
Other	12,925,000	4,342,000	28,000
Total Net parent (distribution) contribution per Consolidated and Combined Statements of Cash Flows	(133,996,000)	92,409,000	171,089,000
Net Parent Investment
Related Party Transaction [Line Items]
Net parent contribution	(129,586,000)	114,687,000	196,641,000
Total Net parent (distribution) contribution per Consolidated and Combined Statements of Equity	(129,586,000)	114,687,000	196,641,000
Net Parent Investment \| SunPower
Related Party Transaction [Line Items]
General financing activities	(22,163,000)	61,971,000	152,239,000
Acquisition of intellectual property	(100,000,000)	0	0
Separation cost	(25,000,000)	0	0
Excess cash	(8,996,000)	0	0
Corporate allocations	9,238,000	26,096,000	18,822,000
Interest expense financed by SunPower	12,167,000	19,485,000	17,000,000
Stock-based compensation	5,168,000	7,135,000	8,580,000
Net parent contribution	(129,586,000)	114,687,000	196,641,000
Total Net parent (distribution) contribution per Consolidated and Combined Statements of Equity	(129,586,000)	114,687,000	196,641,000
Interest expense financed by SunPower	(12,167,000)	(19,485,000)	(17,000,000)
Stock-based compensation expense	$ (5,168,000)	$ (7,135,000)	$ (8,580,000)

NET PARENT INVESTMENT AND TRANSACTIONS WITH SUNPOWER AND TOTAL AND TOTAL S.A - Transactions with Total and Total S.A (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018	Dec. 31, 2015
Related Party Transaction [Line Items]
Accounts payable	$ 3,100
Total And Total S.A
Related Party Transaction [Line Items]
Accounts receivable	1,273	$ 2,734
Accounts payable	3,100	4,921
Contract liabilities, current portion	9,405	18,786
Contract liabilities, net of current portion	33,066	35,427
Total
Related Party Transaction [Line Items]
Contract liabilities, current portion	9,300	17,600
Contract liabilities, net of current portion	33,100	35,400
Sales from related party	73,599	33,371	$ 27,785
Debentures Due 2023 \| Total
Related Party Transaction [Line Items]
Interest expense	2,667	4,000	4,000
SunPower
Related Party Transaction [Line Items]
Sales from related party	231,200	426,500	388,500
Interest expense	12,167	19,485	17,000
SunPower \| Debentures Due 2023
Related Party Transaction [Line Items]
Interest expense	$ 11,300	$ 17,000	$ 17,000
Stated percentage				4.00%

NET PARENT INVESTMENT AND TRANSACTIONS WITH SUNPOWER AND TOTAL AND TOTAL S.A - Supply Agreements (Details) $ in Millions			1 Months Ended
	Mar. 04, 2019 USD ($) MW	Jan. 07, 2019 USD ($) MW	Dec. 29, 2019 USD ($) MW	Mar. 31, 2018 USD ($) MW	Nov. 30, 2016 MW	Jan. 03, 2021 USD ($)	Mar. 31, 2017 USD ($)
Sunpower and Total
Supply Commitment [Line Items]
Period for commitment					4 years
Power commitment (MW) \| MW	10	3.7	93	3.42	200
Maximum power covered (MW) \| MW					150
Option to purchase performance line solar panels (MW) \| MW					50
Total
Supply Commitment [Line Items]
Contract liabilities							$ 88.5
Contract liabilities, current portion			$ 17.6			$ 9.3
Contract liabilities, net of current portion			35.4			$ 33.1
Remaining amount committed	$ 3.2	$ 1.4	$ 38.4	$ 1.3
Percent of commitment paid	10.00%	10.00%	10.00%	10.00%

NET PARENT INVESTMENT AND TRANSACTIONS WITH SUNPOWER AND TOTAL AND TOTAL S.A - 4.00% Debentures Due 2023 (Details) - SunPower - USD ($)	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018	Dec. 31, 2015
Related Party Transaction [Line Items]
Interest expense financed by SunPower	$ 12,167,000	$ 19,485,000	$ 17,000,000
Debentures Due 2023
Related Party Transaction [Line Items]
Stated percentage				4.00%
Principal amount				$ 425,000,000.0
Interest expense financed by SunPower	11,300,000	$ 17,000,000.0	$ 17,000,000.0
Debentures Due 2023 \| Total
Related Party Transaction [Line Items]
Principal amount				$ 100,000,000.0
Interest expense financed by SunPower	$ 2,700,000

TRANSACTIONS WITH TIANJIN ZHONGHUAN SEMICONDUCTOR CO., LTD. - Transactions with Tianjin Zhonghuan Semiconductor Co., Ltd and its affiliates (Details) $ in Thousands	12 Months Ended
	Jan. 03, 2021 USD ($)	Jan. 03, 2021 CNY (¥)	Dec. 29, 2019 USD ($)	Dec. 30, 2018 USD ($)	Apr. 30, 2018	Feb. 28, 2017
Related Party Transaction [Line Items]
Proceeds from sale of unconsolidated investee	$ 3,220		$ 0	$ 0
Huansheng Photovoltaic (Jiangsu) Co., Ltd.
Related Party Transaction [Line Items]
Equity method investment, ownership percentage	20.00%	20.00%			20.00%	20.00%
Hohhot
Related Party Transaction [Line Items]
Sale of equity \| ¥		¥ 21,938,086.22
Proceeds from sale of unconsolidated investee	$ 3,200
Gain on sale of investments	$ 500

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($)
$ in Thousands

12 Months Ended

Jan. 03, 2021

Dec. 29, 2019

Dec. 30, 2018

Disaggregation of Revenue [Line Items]

Increase (decrease) in contract with customer, asset

^[1]

$ 844,836

$ 1,198,301

$ 912,313

1,806

(264)

$ (1,243)

Increase (decrease) in contract with customer, liability

(60,700)

6,500

Revenue recognized

56,600

33,700

Transaction price

$ 200,900

$ 296,900

Minimum

Disaggregation of Revenue [Line Items]

Payment term

30 days

Maximum

Disaggregation of Revenue [Line Items]

Payment term

45 days

[1]

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BALANCE SHEET COMPONENTS - Accounts Receivable, Net (Details) - USD ($)
$ in Thousands

Jan. 03, 2021

Dec. 29, 2019

Dec. 30, 2018

Accounts receivable, gross

$ 80,829

$ 153,633

Less: allowance for doubtful accounts

(3,768)

(2,767)

$ (4,250)

Less: allowance for sales returns

(359)

(501)

$ (604)

Accounts receivable, net

^[1]

$ 76,702

$ 150,365

[1]

BALANCE SHEET COMPONENTS - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, sale	$ 249.0	$ 119.4
Accounts receivable, allowance for credit loss, current, receivables sold	34.1	11.6
Amortization	5.0	$ 7.3	$ 7.2
Other Receivables, Net, Current
Accounts, Notes, Loans and Financing Receivable [Line Items]
Taxes receivable	$ 5.0

BALANCE SHEET COMPONENTS - Allowance For Credit Loss and Sales Returns (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019
Allowance for doubtful accounts
Balance at Beginning of Period	$ 2,767	$ 4,250
Charges (Releases) to Expense	2,548	353
Deductions	(1,547)	(1,836)
Balance at End of Period	3,768	2,767
Allowance for sales returns
Balance at Beginning of Period	501	604
Charges (Releases) to Expense	(142)	(103)
Deductions	0	0
Balance at End of Period	$ 359	$ 501

BALANCE SHEET COMPONENTS - Inventories (Details) - USD ($) $ in Thousands	Jan. 03, 2021	Dec. 29, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 25,100	$ 18,864
Work-in-process	61,059	62,045
Finished goods	83,081	113,943
Inventories	$ 169,240	$ 194,852

BALANCE SHEET COMPONENTS - Prepaid Expenses And Other Current Assets (Details) - USD ($)
$ in Thousands

Jan. 03, 2021

Dec. 29, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VAT receivables, current portion

$ 2,971

$ 4,997

Derivative financial instruments

1,997

1,002

Other receivables

22,447

23,835

Deferred issuance cost

9,228

Other prepaid expenses and other current assets

12,827

8,535

Prepaid expenses and other current assets(1)

^[1]

$ 49,470

$ 38,369

[1]

BALANCE SHEET COMPONENTS - Intangible Assets, Net (Details) - USD ($) $ in Thousands	Jan. 03, 2021	Dec. 29, 2019
Finite-Lived Intangible Assets [Line Items]
Total future amortization expense	$ 456
Trademarks and purchased technology
Finite-Lived Intangible Assets [Line Items]
Gross	1,815	$ 36,527
Accumulated Amortization	(1,359)	(31,435)
Total future amortization expense	$ 456	$ 5,092

BALANCE SHEET COMPONENTS - Estimated Future Amortization Expense (Details) $ in Thousands	Jan. 03, 2021 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
2021	$ 253
2022	132
2023	43
2024	14
2025	8
Thereafter	6
Total future amortization expense	$ 456

BALANCE SHEET COMPONENTS - Property Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Jan. 03, 2021	Dec. 29, 2019
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 405,641	$ 414,747
Less: accumulated depreciation	(158,733)	(133,547)
Property, plant and equipment, net	246,908	281,200
Manufacturing equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	123,453	131,332
Land and buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	137,975	137,723
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	82,091	99,165
Solar power systems
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,382	1,326
Computer equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	34,811	30,039
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,303	2,662
Construction-in-process
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 24,626	$ 12,500

BALANCE SHEET COMPONENTS - Other Long-term Assets (Details) - USD ($)
$ in Thousands

Jan. 03, 2021

Dec. 29, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Equity investments without readily determinable fair value

$ 4,000

$ 7,860

Equity method investments

25,707

26,533

Prepaid Forward

66,718

Prepayment for capital expenditure

7,271

1,170

Deferred tax assets (Note 13)

9,620

8,927

Other

9,758

8,560

Other long-term assets(1)

^[1]

$ 123,074

$ 53,050

[1]

BALANCE SHEET COMPONENTS - Accrued Liabilities (Details) - USD ($)
$ in Thousands

Jan. 03, 2021

Dec. 29, 2019

Employee compensation and employee benefits

$ 12,178

$ 19,547

Short-term warranty reserves

9,548

10,111

Restructuring reserve

515

Accrued interest payable

6,185

133

Other payables to SunPower (Note 3)

7,942

VAT payables

9,341

6,390

Derivative financial instruments

2,971

1,962

Legal expenses

3,450

5,265

Taxes payable

18,112

13,826

Liability due to supply agreement

28,031

Other

7,580

6,790

Accrued liabilities

^[1]

77,307

$ 92,570

SunPower

Short-term warranty reserves

$ 3,300

[1]

BALANCE SHEET COMPONENTS - Other Long-term Liabilities (Details) - USD ($) $ in Thousands	Jan. 03, 2021	Dec. 29, 2019
Related Party Transaction [Line Items]
Long-term warranty reserves(1)	$ 26,955	$ 26,954
Unrecognized tax benefits	18,063	12,849
Long-term security deposit payable	2,148	2,728
Long-term pension liability	2,992	3,003
Deferred tax liabilities (Note 13)	0	337
Other	1,594	655
Other long-term liabilities	51,752	$ 46,526
SunPower
Related Party Transaction [Line Items]
Long-term warranty reserves(1)	$ 2,000

BALANCE SHEET COMPONENTS - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Jan. 03, 2021	Dec. 29, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cumulative translation adjustment	$ (13,280)	$ (9,462)
Unrecognized gain on long-term pension liability adjustment	3,365	3,102
Net unrealized loss on derivative instruments	(476)	(1,258)
Accumulated other comprehensive loss	$ (10,391)	$ (7,618)

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

Commitments and Contingencies Disclosure [Abstract]

FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)	Jan. 03, 2021	Dec. 29, 2019
Assets
Derivative financial instruments	$ 1,997,000	$ 1,002,000
Prepaid Forward	66,718,000	0
Liabilities
Derivative financial instruments	2,971,000	1,962,000
Recurring Basis
Assets
Derivative financial instruments	1,997,000	1,002,000
Prepaid Forward	66,718,000	0
Total assets	68,715,000	1,002,000
Liabilities
Derivative financial instruments	2,971,000	1,962,000
Total liabilities	2,971,000	1,962,000
Recurring Basis \| Level 3
Assets
Total assets	0	0
Liabilities
Total liabilities	0	0
Recurring Basis \| Level 2
Assets
Derivative financial instruments	1,997,000	1,002,000
Prepaid Forward	66,718,000	0
Total assets	68,715,000	1,002,000
Liabilities
Derivative financial instruments	2,971,000	1,962,000
Total liabilities	$ 2,971,000	$ 1,962,000

FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($)	12 Months Ended
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($)	Jan. 03, 2021	Dec. 29, 2019
Fair Value Disclosures [Abstract]
Restricted short-term marketable securities	$ 1,359,000	$ 6,187,000
Other-than-temporary impairment loss	0	0
Equity investments without readily determinable fair value	$ 4,000,000	$ 7,860,000

RESTRUCTURING - Narrative (Details)	12 Months Ended
RESTRUCTURING - Narrative (Details)	Jan. 03, 2021 USD ($)	Dec. 29, 2019 USD ($)	Dec. 30, 2018 USD ($) employee
Restructuring Cost and Reserve [Line Items]
Restructuring (benefits) charges	$ 0	$ (517,000)	$ 7,766,000
February 2018 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring (benefits) charges	0	(533,000)	$ 5,980,000
Percent of workforce affected			3.00%
Cumulative costs		5,400,000
February 2018 Restructuring Plan \| Minimum
Restructuring Cost and Reserve [Line Items]
Expected number of positions eliminated \| employee			150
February 2018 Restructuring Plan \| Maximum
Restructuring Cost and Reserve [Line Items]
Expected number of positions eliminated \| employee			250
December 2016 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring (benefits) charges	0	5,000	$ 1,838,000
Cumulative costs		157,400,000
Legacy Restructuring Plans
Restructuring Cost and Reserve [Line Items]
Restructuring (benefits) charges	$ 0	11,000	$ (52,000)
Cumulative costs		$ 164,300,000

RESTRUCTURING - Restructuring Charges (Details) - USD ($)	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring (benefits) charges	$ 0	$ (517,000)	$ 7,766,000
February 2018 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Severance and benefits	0	(234,000)	5,821,000
Other costs	0	(299,000)	159,000
Restructuring (benefits) charges	0	(533,000)	5,980,000
December 2016 Plan
Restructuring Cost and Reserve [Line Items]
Severance and benefits	0	0	523,000
Lease and related termination costs	0	0	6,000
Other costs	0	5,000	1,309,000
Restructuring (benefits) charges	0	5,000	1,838,000
Legacy Restructuring Plans
Restructuring Cost and Reserve [Line Items]
Severance and benefits	0	0	(282,000)
Other costs	0	11,000	230,000
Restructuring (benefits) charges	$ 0	$ 11,000	$ (52,000)

RESTRUCTURING - Restructuring Reserve (Details) - USD ($)	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	$ 515,000	$ 4,973,000
Restructuring (benefits) charges	0	(517,000)	$ 7,766,000
Recovery (Payments)		(3,941,000)
Restructuring reserve, ending balance		515,000	4,973,000
February 2018 Restructuring Plan
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	220,000	4,516,000
Restructuring (benefits) charges	0	(533,000)	5,980,000
Recovery (Payments)		(3,763,000)
Restructuring reserve, ending balance		220,000	4,516,000
February 2018 Restructuring Plan \| Severance and benefits
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	220,000	4,516,000
Restructuring (benefits) charges		(234,000)
Recovery (Payments)		(4,062,000)
Restructuring reserve, ending balance		220,000	4,516,000
February 2018 Restructuring Plan \| Other costs
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	0	0
Restructuring (benefits) charges		(299,000)
Recovery (Payments)		299,000
Restructuring reserve, ending balance		0	0
December 2016 Plan
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	0	0
Restructuring (benefits) charges	0	5,000	1,838,000
Recovery (Payments)		(5,000)
Restructuring reserve, ending balance		0	0
December 2016 Plan \| Severance and benefits
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	0	0
Restructuring (benefits) charges		0
Recovery (Payments)		0
Restructuring reserve, ending balance		0	0
December 2016 Plan \| Lease and related termination costs
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	0	0
Restructuring (benefits) charges		0
Recovery (Payments)		0
Restructuring reserve, ending balance		0	0
December 2016 Plan \| Other costs
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	0	0
Restructuring (benefits) charges		5,000
Recovery (Payments)		(5,000)
Restructuring reserve, ending balance		0	0
Legacy Restructuring Plans
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	295,000	457,000
Restructuring (benefits) charges	0	11,000	(52,000)
Recovery (Payments)		(173,000)
Restructuring reserve, ending balance		295,000	457,000
Legacy Restructuring Plans \| Severance and benefits
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	243,000	384,000
Restructuring (benefits) charges		0
Recovery (Payments)		(141,000)
Restructuring reserve, ending balance		243,000	384,000
Legacy Restructuring Plans \| Other costs
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	$ 52,000	73,000
Restructuring (benefits) charges		11,000
Recovery (Payments)		(32,000)
Restructuring reserve, ending balance		$ 52,000	$ 73,000

COMMITMENTS AND CONTINGENCIES - Lessee Narrative (Details) - USD ($) $ in Thousands	Jan. 03, 2021	Dec. 29, 2019
Lessee, Lease, Description [Line Items]
Future minimum lease payments for facilities under operating leases	$ 18,565	$ 28,300
Operating lease, term of contract	6 years 2 months 12 days
Future minimum lease payments for assets under finance leases	$ 1,610	$ 2,100
Finance lease, term of contract	2 years 4 months 24 days	3 years 4 months 24 days
Short-term Debt
Lessee, Lease, Description [Line Items]
Future minimum lease payments for assets under finance leases	$ 700
Long-term Debt
Lessee, Lease, Description [Line Items]
Future minimum lease payments for assets under finance leases	$ 900

COMMITMENTS AND CONTINGENCIES - Lessee Quantitative Information (Details) - USD ($)
$ in Thousands

12 Months Ended

Jan. 03, 2021

Dec. 29, 2019

Dec. 30, 2018

Operating lease expense

$ 4,016

$ 5,119

Cash paid for amounts included in the measurement of lease liabilities

Cash paid for operating leases

3,556

5,259

Right-of-use assets obtained in exchange for lease obligations

^[1]

$ 4,791

$ 21,209

$ 0

Weighted-average remaining lease term (in years) – operating leases

6 years 2 months 12 days

6 years 7 months 6 days

Weighted-average discount rate – operating leases

8.70%

9.00%

[1]	Amounts for fiscal year 2019 include the transition adjustment for the adoption of ASC 842 and new Right-of-Use (“ROU”) asset additions.

COMMITMENTS AND CONTINGENCIES - Lessee Minimum Future Rental Payments (Details) - USD ($) $ in Thousands	Jan. 03, 2021	Dec. 29, 2019
Operating Leases
2021	$ 3,547
2022	2,767
2023	2,831
2024	2,847
2025	2,097
Thereafter	4,476
Total lease payments	18,565	$ 28,300
Less: imputed interest	(4,037)
Total	14,528
Finance Lease
2021	703
2022	711
2023	196
2024	0
2025	0
Thereafter	0
Total lease payments	1,610	$ 2,100
Less: imputed interest	(12)
Total	$ 1,598

COMMITMENTS AND CONTINGENCIES - Lessor Minimum Future Rental Receivables (Details) $ in Thousands	Jan. 03, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Total	$ 10,914
2021	2,623
2022	2,623
2023	2,623
2024	2,623
2025	422
Thereafter	$ 0

COMMITMENTS AND CONTINGENCIES - Purchase Commitments (Details) $ in Thousands	12 Months Ended
	Jan. 03, 2021 USD ($) vendor
Commitments and Contingencies Disclosure [Abstract]
Number of vendors \| vendor	1
Commitment term	2 years
Fiscal Year 2021	$ 214,845
Fiscal Year 2022	125,804
Total	340,649
Non-cancellable purchase orders	95,600
Long-term supply agreements	$ 245,000

COMMITMENTS AND CONTINGENCIES - Advances to Suppliers (Details) $ in Thousands	Jan. 03, 2021 USD ($) vendor	Dec. 29, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Number of vendors \| vendor	1
Advances to supplier	$ 92,900	$ 121,400
Advances to supplier, current portion	$ 43,680	$ 107,388

COMMITMENTS AND CONTINGENCIES - Advances from Customers (Details) $ in Thousands			1 Months Ended
	Mar. 04, 2019 MW	Jan. 07, 2019 MW	Dec. 29, 2019 USD ($) MW	Mar. 31, 2018 MW	Nov. 30, 2016 MW	Jan. 03, 2021 USD ($)	Mar. 31, 2017 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Fiscal Year 2021						$ 19,016
Fiscal Year 2022						33,075
Fiscal Year 2023						0
Fiscal Year 2024						0
Thereafter						0
Total						52,091
Sunpower and Total
Supply Commitment [Line Items]
Period for commitment					4 years
Power commitment (MW) \| MW	10	3.7	93	3.42	200
Total
Supply Commitment [Line Items]
Contract liabilities							$ 88,500
Advance payment			$ 53,000			42,400
Contract liabilities, current portion			$ 17,600			$ 9,300

COMMITMENTS AND CONTINGENCIES - Product Warranties (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Balance at the beginning of the period	$ 37,065	$ 50,754
Accruals for warranties issued during the period	5,418	10,571
Settlements and adjustments during the period	(11,354)	(24,260)
Balance at the end of the period	$ 31,129	$ 37,065

COMMITMENTS AND CONTINGENCIES - Liabilities Associated with Uncertain Tax Positions (Details) - USD ($) $ in Thousands	Jan. 03, 2021	Dec. 29, 2019
Commitments and Contingencies Disclosure [Abstract]
Unrecognized tax benefits	$ 18,063	$ 12,849

COMMITMENTS AND CONTINGENCIES - Defined Benefit Pension Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Long-term pension liability	$ 2,992	$ 3,003
Net gain (loss) on long-term pension liability adjustment	$ 263	$ (1,862)	$ 1,628

COMMITMENTS AND CONTINGENCIES - Indemnifications (Details) - Indemnification Agreement - USD ($) $ in Millions	Jan. 03, 2021	Dec. 29, 2019
SunPower
Guarantor Obligations [Line Items]
Indemnification lability	$ 1.9
Total
Guarantor Obligations [Line Items]
Indemnification lability		$ 1.1

EQUITY INVESTMENTS (Details) ¥ in Thousands, $ in Thousands	1 Months Ended			3 Months Ended	12 Months Ended
EQUITY INVESTMENTS (Details) ¥ in Thousands, $ in Thousands	Apr. 30, 2018 USD ($)	Feb. 28, 2018 USD ($)	Feb. 28, 2017 USD ($)	Apr. 30, 2018 USD ($)	Jan. 03, 2021 USD ($)	Jan. 03, 2021 CNY (¥)	Dec. 29, 2019 USD ($)	Dec. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)	Mar. 31, 2016 USD ($)	Nov. 30, 2015 MW	Dec. 31, 2013 USD ($)
Schedule of Equity Method Investments [Line Items]
Equity investments without readily determinable fair value					$ 4,000		$ 7,860
Additional amount invested					0		0	$ 13,348
Equity method investments					25,707		26,533
Proceeds from sale of unconsolidated investee					3,200	¥ 21,900
Assets					980,343		990,211
Liabilities					541,056		622,688
SPML Land, Inc. \| Variable Interest Entity, Primary Beneficiary
Schedule of Equity Method Investments [Line Items]
Assets					21,400
Liabilities					$ 9,900
Huansheng Photovoltaic (Jiangsu) Co., Ltd.
Schedule of Equity Method Investments [Line Items]
Equity investments without readily determinable fair value										$ 9,200
Equity securities without readily determinable fair value, ownership percentage										15.00%
Equity method investment, ownership percentage	20.00%		20.00%	20.00%	20.00%
Additional amount invested	$ 7,000	$ 6,300	$ 9,000
Amount invested, less reinvested dividends			7,700
Reinvested dividends			$ 1,300	$ 700
Equity method investments					$ 25,707		26,533
CCPV
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage												25.00%
Equity method investments												$ 16,400
Deca Technologies, Inc.
Schedule of Equity Method Investments [Line Items]
Equity investments without readily determinable fair value					$ 4,000		$ 5,200
Equity securities without readily determinable fair value, ownership percentage					8.00%
Proceeds from dividends received					$ 2,500
Equity securities, gain					1,300
Hohhot
Schedule of Equity Method Investments [Line Items]
Equity investments without readily determinable fair value									$ 2,700
Power capacity (in mw) \| MW											300
Gain on disposal					$ 500
Hohhot \| SunPower
Schedule of Equity Method Investments [Line Items]
Equity securities without readily determinable fair value, ownership percentage									460.00%
SPML Land, Inc.
Schedule of Equity Method Investments [Line Items]
Variable interest entity, ownership percentage					40.00%	40.00%
Ownership by employees					60.00%

EQUITY INVESTMENTS - Schedule of Equity Investments (Details) - USD ($) $ in Thousands	Jan. 03, 2021	Dec. 29, 2019	Mar. 31, 2016
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 25,707	$ 26,533
Equity investments without readily determinable fair value	4,000	7,860
Total equity investments	29,707	34,393
Huansheng Photovoltaic (Jiangsu) Co., Ltd.
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 25,707	$ 26,533
Equity investments without readily determinable fair value			$ 9,200

EQUITY INVESTMENTS - Related Party Transactions (Details) - Huansheng - USD ($) $ in Thousands	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019
Schedule of Equity Method Investments [Line Items]
Accounts payable	$ 35,477	$ 62,811
Accrued liabilities	4,943	3,679
Payments made to investee for products/services	$ 267,247	$ 295,415

DEBT AND CREDIT SOURCES - Convertible Debt (Details)		12 Months Ended
DEBT AND CREDIT SOURCES - Convertible Debt (Details)	Jul. 17, 2020 USD ($) d $ / shares shares	Jan. 03, 2021 USD ($)
Debt Instrument [Line Items]
Threshold trading days \| d	60
Interest expense		$ 1,700,000
Convertible Debt \| Green Convertible Notes
Debt Instrument [Line Items]
Principal amount	$ 200,000,000.0
Stated percentage	6.50%
Conversion price (USD per share) \| $ / shares	$ 18.19
Conversion ratio, number of shares \| shares	54.9611
Conversion ratio, principal amount	$ 1,000
Threshold percentage of stock price trigger	130.00%
Convertible debt		135,100,000
Unamortized discount		$ 53,800,000
Effective percentage		15.70%
Debt issuance cost		$ 11,100,000
Interest expense		10,400,000
If-converted value in excess of principal		111,900,000
Convertible Debt \| Green Convertible Notes \| Level 2
Debt Instrument [Line Items]
Fair value of debt		$ 325,100,000

DEBT AND CREDIT SOURCES - Physical Delivery Forward (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions				12 Months Ended
	Sep. 29, 2020	Sep. 09, 2020	Jul. 17, 2020	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018
Subsidiary or Equity Method Investee [Line Items]
Remeasurement gain on Physical Delivery Forward and Prepaid Forward				$ 38,236	$ 0	$ 0
Own-Share Lending Arrangement
Subsidiary or Equity Method Investee [Line Items]
Maximum amount allowed under physical delivery forward			$ 60,000
Physical Delivery Forward
Subsidiary or Equity Method Investee [Line Items]
Maximum amount allowed under physical delivery forward	$ 60,000	$ 60,000
Consecutive trading days		15 days
Consideration received on transaction	$ 58,500
Number of shares issued in transaction	3.8
Price per share (USD per share)	$ 15.40
Carrying amount	$ 64,100
Remeasurement gain on Physical Delivery Forward and Prepaid Forward				$ 8,500

DEBT AND CREDIT SOURCES - Prepaid Forward (Details) - USD ($) $ in Thousands, shares in Millions	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018	Sep. 29, 2020	Jul. 17, 2020
Equity, Class of Treasury Stock [Line Items]
Remeasurement gain on Physical Delivery Forward and Prepaid Forward	$ 38,236	$ 0	$ 0
Prepaid Forward
Equity, Class of Treasury Stock [Line Items]
Authorized amount					$ 40,000
Floor percentage				20.00%
Remaining shares to be delivered (in shares)				2.5
Prepaid Forward	66,700
Remeasurement gain on Physical Delivery Forward and Prepaid Forward	$ 29,700

DEBT AND CREDIT SOURCES - Other Debt and Credit Sources (Details) - USD ($)		12 Months Ended
	Jul. 14, 2020	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018	Jul. 15, 2020
Debt Instrument [Line Items]
Short-term debt		$ 48,421,000	$ 60,383,000
Interest expense		1,700,000
Debt issuance costs		9,200,000
Master Buyer Agreement
Debt Instrument [Line Items]
Principal amount			$ 25,000,000.0
Term			90 days
Short-term debt			$ 22,000,000.0
Master Buyer Agreement \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate			0.014%
Revolving Credit Agreement \| Revolving Credit Facility
Debt Instrument [Line Items]
Principal amount				$ 50,000,000.0
Term				90 days
Short-term debt		47,700,000	$ 37,700,000
Interest expense		$ 1,000,000.0	$ 1,700,000
Revolving Credit Agreement \| Revolving Credit Facility \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate				0.015%
Philippines Term Loan
Debt Instrument [Line Items]
Current borrowing capacity	$ 55,000,000.0
Singapore Working Capital Facility
Debt Instrument [Line Items]
Current borrowing capacity	$ 50,000,000.0
Singapore Working Capital Facility \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	3.75%
Term Loans
Debt Instrument [Line Items]
Current borrowing capacity	$ 20,000,000.0
Stated percentage	0.50%				0.75%
Term Loans \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	3.90%

DERIVATIVE FINANCIAL INSTRUMENTS - Balance Sheet Location (Details) - USD ($) $ in Thousands	Jan. 03, 2021	Dec. 29, 2019
Derivatives, Fair Value [Line Items]
Derivative asset, current	$ 1,997	$ 1,002
Derivative liability, current	2,971	1,962
Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative liability, current	2,814	1,383
Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative asset, current	1,997	1,002
Derivative liability, current	2,971	1,962
Prepaid expenses and other current assets \| Foreign currency forward exchange contracts \| Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative asset, current	328	514
Prepaid expenses and other current assets \| Foreign currency forward exchange contracts \| Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative asset, current	1,669	488
Accrued liabilities \| Foreign currency forward exchange contracts \| Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative liability, current	0	461
Accrued liabilities \| Foreign currency forward exchange contracts \| Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative liability, current	157	579
Accrued liabilities \| Foreign currency option contracts \| Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative liability, current	$ 2,814	$ 922

DERIVATIVE FINANCIAL INSTRUMENTS - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands	Jan. 03, 2021	Dec. 29, 2019
Derivative assets
Gross Amounts	$ 1,997	$ 1,002
Derivative financial instruments	1,997	1,002
Gross Amounts Not Offset in the Consolidated Balance Sheet, but Have Rights to Offset	1,997	1,002
Derivative liabilities
Gross Amounts	2,971	1,962
Derivative financial instruments	2,971	1,962
Gross Amounts Not Offset in the Combined Balance Sheet, but Have Rights to Offset	$ 2,971	$ 1,962

DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($)	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018
Derivative [Line Items]
(Gain) loss on derivatives	$ (3,000,000.0)	$ 1,700,000	$ 0
Net unrealized loss on derivative instruments	(476,000)	(1,258,000)
Unrealized gain (loss) on derivatives	(2,600,000)
Gain (loss) reclassified	(3,400,000)
Net gain (loss) in derivatives (Note 12)	782,000	(1,094,000)	$ 397,000
Foreign currency forward exchange contracts \| Designated as Hedging Instrument
Derivative [Line Items]
Notional value	$ 125,700,000
Maturity term or less	6 months
Foreign currency forward exchange contracts \| Not Designated as Hedging Instrument
Derivative [Line Items]
Notional value	$ 44,800,000	$ 17,500,000
Maturity term or less	2 months

INCOME TAXES - Narrative (Details) - USD ($)	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($)	Jan. 03, 2021	Dec. 29, 2019
Income Tax Disclosure [Abstract]
Decrease in valuation allowance	$ 135,900,000
Increase in foreign valuation allowance	10,400,000
Unrecognized tax benefits that would impact effective tax rate	39,500,000	$ 33,000,000.0
Accrued interest	600,000	900,000
Accrued penalties	$ 800,000	$ 0

INCOME TAXES - Components of Current and Deferred Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018
Income Tax Disclosure [Abstract]
Current tax expense	$ (12,644)	$ (9,305)	$ (5,434)
Deferred tax benefit (expense)	517	(817)	6,484
(Provision for) benefit from income taxes	$ (12,127)	$ (10,122)	$ 1,050

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018
Income Tax Disclosure [Abstract]
Statutory rate	17.00%	21.00%	21.00%
Tax benefit at statutory rate	$ 21,367	$ 33,819	$ 126,459
Foreign tax rate differential	(19,356)	1,116	(21,914)
Foreign income inclusion in the U.S.	0	(4,366)	(48,998)
Change in valuation allowance	(10,431)	(38,627)	(56,553)
Unrecognized tax (expense) benefits	(3,896)	(2,424)	1,187
Other	189	360	869
(Provision for) benefit from income taxes	$ (12,127)	$ (10,122)	$ 1,050

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Jan. 03, 2021	Dec. 29, 2019
Deferred tax assets:
Net operating loss carryforward(1)	$ 19,659	$ 142,052
Reserves and accruals	7,766	21,272
Fixed assets	40	1,684
Stock-based compensation—stock deductions	0	3,429
Total deferred tax assets	27,465	168,437
Valuation allowance(1)	(16,795)	(152,654)
Total deferred tax assets, net of valuation allowance	10,670	15,783
Deferred tax liabilities:
Intangible assets and accruals	(1,050)	(7,193)
Total deferred tax liabilities	(1,050)	(7,193)
Net deferred tax assets	$ 9,620	$ 8,590

INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of period	$ 33,502	$ 32,119
Additions for tax positions related to the current year	10,839	2,380
Reductions for tax positions from prior years/statute of limitations expirations	(5,301)	(388)
Foreign exchange loss (gain)	466
Foreign exchange loss (gain)		(609)
Balance at end of the period	$ 39,506	$ 33,502

COMMON STOCK (Details)	Jan. 03, 2021 vote shares
Equity [Abstract]
Number of votes per share \| vote	1
Equity compensation plans \| shares	2,533,000

NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018
Net loss:
Net loss attributable to stockholders	$ (142,631)	$ (183,059)	$ (603,814)
Number of shares:
Basic and diluted (shares)	24,502	21,265	21,265
Basic and diluted (USD per share)	$ (5.82)	$ (8.61)	$ (28.39)

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Revenues from External Customers and Long-Lived Assets [Line Items]

STOCK-BASED COMPENSATION - Narrative (Details) $ / shares in Units, $ in Millions	8 Months Ended	12 Months Ended
	Aug. 25, 2020 shares	Jan. 03, 2021 USD ($) plan $ / shares shares	Dec. 29, 2019 plan shares	Dec. 30, 2018 shares	Aug. 26, 2020 shares	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of plans \| plan		2	2
Restricted Stock Units (RSUs) And Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value (in USD per share) \| $ / shares		$ 18.70
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested shares (in shares)		1,158,000
Fair value of restricted stock units vested \| $		$ 0.4
Unrecognized stock-based compensation \| $		$ 12.2
Unrecognized stock-based compensation, period for recognition		2 years 4 months 24 days
SunPower Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares replaced due to spin-off (in shares)					2,100,000
2015 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual increase percentage					2.00%	3.00%
Number of shares available for grant (in shares)					6,000,000
Shares withheld for tax withholding obligation (in shares)	100,000		200,000	200,000
2015 Plan \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
2015 Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested shares (in shares)					1,200,000
Annual increase percentage		3.00%
Shares withheld for tax withholding obligation (in shares)		1,393
2020 Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		4 years

STOCK-BASED COMPENSATION - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 03, 2021	Dec. 29, 2019	Dec. 30, 2018
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Payment Arrangement, Expense	$ 7,250	$ 7,135	$ 8,580
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Payment Arrangement, Expense	2,080	1,642	2,605
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Payment Arrangement, Expense	1,217	1,880	2,519
Sales, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Payment Arrangement, Expense	$ 3,953	$ 3,613	$ 3,456

STOCK-BASED COMPENSATION - Nonvested Restricted and Performance Stock Unit Activity (Details) - shares shares in Thousands	4 Months Ended
	Jan. 03, 2021	Aug. 26, 2020
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Assumption of 2015 Plan from SunPower		1,071
Shares
Granted	116
Vested	(19)
Forfeited	(10)
Outstanding as of January 3, 2021	1,158
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Assumption of 2015 Plan from SunPower		112
Shares
Granted	0
Vested	0
Forfeited	0
Outstanding as of January 3, 2021	112

SEGMENT AND GEOGRAPHICAL INFORMATION - Revenues (Details) - USD ($)
$ in Thousands

12 Months Ended

Jan. 03, 2021

Dec. 29, 2019

Dec. 30, 2018

Revenues from External Customers and Long-Lived Assets [Line Items]

^[1]

$ 844,836

$ 1,198,301

$ 912,313

SunPower

Sales from related party

231,200

426,500

388,500

United States

Revenues from External Customers and Long-Lived Assets [Line Items]

Revenues from External Customers and Long-Lived Assets [Line Items]

235,606

433,293

397,160

France

Revenues from External Customers and Long-Lived Assets [Line Items]

125,366

138,423

170,468

China

Revenues from External Customers and Long-Lived Assets [Line Items]

12,496

119,010

15,467

Japan

Revenues from External Customers and Long-Lived Assets [Line Items]

79,448

90,837

82,313

Rest of world

$ 391,920

$ 416,738

$ 246,905

[1]