| Supplemental Balance Sheet Disclosures | 6. Consolidated Balance Sheet Details Accounts receivable trade, net Accounts receivable trade, net consisted of the following at September 30, 2015 and December 31, 2014 (in thousands): September 30, December 31, Accounts receivable trade, gross $ 328,929 $ 142,542 Allowance for doubtful accounts (2 ) (7,108 ) Accounts receivable trade, net $ 328,927 $ 135,434 At September 30, 2015 and December 31, 2014 , $20.6 million and $21.4 million , respectively, of our accounts receivable trade, net were secured by letters of credit, bank guarantees, or other forms of financial security issued by creditworthy financial institutions. Accounts receivable, unbilled and retainage Accounts receivable, unbilled and retainage consisted of the following at September 30, 2015 and December 31, 2014 (in thousands): September 30, December 31, Accounts receivable, unbilled $ 219,455 $ 41,868 Retainage 21,664 35,103 Accounts receivable, unbilled and retainage $ 241,119 $ 76,971 Accounts receivable, unbilled represents revenue that has been recognized in advance of billing the customer, which is common for long-term construction contracts. For example, we recognize revenue from contracts for the construction and sale of PV solar power systems, which include the sale of such assets over the construction period using applicable accounting methods. One such method is the percentage-of-completion method, which recognizes revenue and gross profit as work is performed based on the relationship between actual costs incurred compared to the total estimated costs for the contract. Under this accounting method, revenue could be recognized under applicable revenue recognition criteria in advance of billing the customer, resulting in an amount recorded to “ Accounts receivable, unbilled and retainage .” Once we meet the billing criteria under a construction contract, we bill our customer accordingly and reclassify the “ Accounts receivable, unbilled and retainage ” to “ Accounts receivable trade, net .” Billing requirements vary by contract but are generally structured around completion of certain construction milestones. The current portion of retainage is included within “ Accounts receivable, unbilled and retainage .” Retainage refers to the portion of the contract price earned by us for work performed, but held for payment by our customer as a form of security until we reach certain construction milestones. Retainage included within “ Accounts receivable, unbilled and retainage ” is expected to be billed and collected within the next 12 months. Inventories Inventories consisted of the following at September 30, 2015 and December 31, 2014 (in thousands): September 30, December 31, Raw materials $ 158,816 $ 157,468 Work in process 25,467 20,829 Finished goods 303,458 442,408 Inventories $ 487,741 $ 620,705 Inventories — current $ 379,183 $ 505,088 Inventories — noncurrent (1) $ 108,558 $ 115,617 (1) We purchase a critical raw material that is used in our core production process in quantities that exceed anticipated consumption within our operating cycle (which is 12 months). We classify the raw materials that we do not expect to be consumed within our operating cycle as noncurrent. Balance of systems parts Balance of systems parts were $104.4 million and $125.1 million as of September 30, 2015 and December 31, 2014 , respectively, and represented mounting and electrical and other construction parts purchased for PV solar power systems to be constructed or currently under construction, which we held title to and were not yet installed in a system. Such construction parts included items such as posts, tilt brackets, tables, harnesses, combiner boxes, inverters, cables, tracker equipment, and other parts we may purchase or assemble for the systems we construct. Balance of systems parts do not include any solar modules that we manufacture. We carry these parts at the lower of cost or market, with market being based primarily on recoverability through installation in a solar power plant or recoverability through a sales agreement. Prepaid expenses and other current assets Prepaid expenses and other current assets consisted of the following at September 30, 2015 and December 31, 2014 (in thousands): September 30, December 31, Prepaid expenses $ 64,337 $ 42,193 Derivative instruments 1,733 9,791 Restricted cash 39,756 74,695 Other current assets 104,573 75,472 Prepaid expenses and other current assets $ 210,399 $ 202,151 Property, plant and equipment, net Property, plant and equipment, net consisted of the following at September 30, 2015 and December 31, 2014 (in thousands): September 30, December 31, Land $ 12,155 $ 12,378 Buildings and improvements (1) 411,594 397,087 Machinery and equipment (1) 1,815,151 1,649,363 Office equipment and furniture 141,751 134,268 Leasehold improvements 50,392 50,096 Construction in progress 41,909 154,497 Stored assets (2) 139,507 155,389 Property, plant and equipment, gross 2,612,459 2,553,078 Less: accumulated depreciation (1,282,405 ) (1,133,090 ) Property, plant and equipment, net $ 1,330,054 $ 1,419,988 (1) In June 2015, we reclassified $15.2 million and $2.5 million from "Assets held for sale" to "Building and improvements" and "Machinery and equipment," respectively, as these assets no longer met the criteria to be classified as held for sale. (2) Consists of machinery and equipment (“stored assets”) that were originally purchased for installation in our previously planned manufacturing capacity expansions. We intend to install and place the stored assets into service when such assets are required or beneficial to our existing installed manufacturing capacity or when market demand supports additional or market-specific manufacturing capacity. During the nine months ended September 30, 2015 , we transferred $15.9 million of stored assets to our manufacturing facility in Perrysburg, Ohio for use in the production of solar modules. As the remaining stored assets are neither in the condition nor location to produce modules as intended, we will not begin depreciation until such assets are placed into service. The stored assets are evaluated for impairment under a held and used impairment model whenever events or changes in business circumstances arise, including consideration of technological obsolescence, that may indicate that the carrying amount of our long-lived assets may not be recoverable. We ceased the capitalization of interest on our stored assets once they were physically received from the related machinery and equipment vendors. Depreciation of property, plant and equipment was $61.3 million and $185.4 million for the three and nine months ended September 30, 2015 , respectively, and $59.7 million and $183.1 million for the three and nine months ended September 30, 2014 , respectively. PV solar power systems, net PV solar power systems, net consisted of the following at September 30, 2015 and December 31, 2014 (in thousands): September 30, December 31, PV solar power systems, gross $ 96,532 $ 47,727 Accumulated depreciation (3,112 ) (1,334 ) PV solar power systems, net $ 93,420 $ 46,393 In September 2015, we placed $50.7 million of projects into service, net of investment tax credits, including our 30 MW AC Barilla Solar project in Pecos County, Texas and various other projects in India and Australia. Depreciation of PV solar power systems was $0.6 million and $1.8 million for the three and nine months ended September 30, 2015 , respectively, and $0.6 million and $0.7 million for the three and nine months ended September 30, 2014 , respectively. Capitalized interest The cost of constructing facilities, equipment, and project assets includes interest costs incurred during the assets’ construction period. The components of interest expense and capitalized interest were as follows during the three and nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Interest cost incurred $ (5,697 ) $ (2,415 ) $ (13,923 ) $ (7,451 ) Interest cost capitalized — property, plant and equipment 290 544 1,152 1,566 Interest cost capitalized — project assets 3,632 1,782 9,976 4,456 Interest expense, net $ (1,775 ) $ (89 ) $ (2,795 ) $ (1,429 ) Project assets and deferred project costs Project assets primarily consist of costs relating to solar power projects in various stages of development that are capitalized prior to entering into a definitive sales agreement for the projects, including projects that have begun commercial operation under power purchase agreements (“PPAs”) and are actively marketed and intended to be sold. These project related costs include costs for land, development, and construction of a PV solar power system. Development costs may include legal, consulting, permitting, interconnection, and other similar costs. Once we enter into a definitive sales agreement, we reclassify project assets to deferred project costs on our condensed consolidated balance sheet until the sale is completed and we have met all of the criteria to recognize the sale as revenue, which is typically subject to real estate revenue recognition requirements. We expense project assets and deferred project costs to cost of sales after each respective project is sold to a customer and all revenue recognition criteria have been met (matching the expensing of costs to the underlying revenue recognition method). We classify project assets as noncurrent due to the nature of solar power projects (long-lived assets) and the time required to complete all activities to develop, construct, and sell projects, which is typically longer than 12 months. Deferred project costs represent (i) costs that we capitalize as project assets for arrangements that we account for as real estate transactions after we have entered into a definitive sales arrangement, but before the sale is completed or before we have met all criteria to recognize the sale as revenue, (ii) recoverable pre-contract costs that we capitalize for arrangements accounted for as long-term construction contracts prior to entering into a definitive sales agreement, or (iii) costs that we capitalize for arrangements accounted for as long-term construction contracts after we have signed a definitive sales agreement, but before all revenue recognition criteria have been met. We classify deferred project costs as current if completion of the sale and the meeting of all revenue recognition criteria are expected within the next 12 months. If a project is completed and begins commercial operation prior to entering into or the closing of a sales arrangement, the completed project will remain in project assets or deferred project costs until the earliest of the closing of the sale of such project, our decision to temporarily hold such project, or one year from the project’s commercial operations date. Any income generated by a project while it remains within project assets or deferred project costs is accounted for as a reduction to our basis in the project, which at the time of sale and meeting all revenue recognition criteria will be recorded within cost of sales. Project assets and deferred project costs consisted of the following at September 30, 2015 and December 31, 2014 (in thousands): September 30, December 31, Project assets — land $ 27,229 $ 20,170 Project assets — development costs including project acquisition costs 383,210 359,203 Project assets — construction costs 619,997 408,402 Project assets 1,030,436 787,775 Deferred project costs — current 98,421 29,354 Deferred project costs — noncurrent — 22,573 Deferred project costs 98,421 51,927 Total project assets and deferred project costs $ 1,128,857 $ 839,702 Other assets Other assets consisted of the following at September 30, 2015 and December 31, 2014 (in thousands): September 30, December 31, Notes receivable (1) $ 12,111 $ 12,096 Income taxes receivable 4,058 4,850 Deferred rent 23,433 23,823 Other 25,571 20,901 Other assets $ 65,173 $ 61,670 (1) On April 8, 2009 , we entered into a credit facility agreement with a solar power project entity of one of our customers for an available amount of €17.5 million to provide financing for a PV solar power system. The credit facility replaced a bridge loan that we had made to this entity. The credit facility bears interest at 8.0% per annum payable quarterly with the full amount due on December 31, 2026. As of September 30, 2015 and December 31, 2014 , the balance on the credit facility was €7.0 million ( $7.9 million and $8.5 million , respectively, at the balance sheet dates). On February 7, 2014 , we entered into a convertible loan agreement with a strategic entity for an available amount of up to $5.0 million . The loan bears interest at 8.0% per annum. As of September 30, 2015 and December 31, 2014 , the balance outstanding on the convertible loan was $4.3 million and $3.5 million , respectively. Goodwill Goodwill, summarized by relevant reporting unit, consisted of the following as of September 30, 2015 and December 31, 2014 (in thousands): December 31, Acquisitions September 30, 2015 CdTe components $ 403,420 $ — $ 403,420 Crystalline silicon components 6,097 — 6,097 Systems 68,833 — 68,833 Accumulated impairment losses (393,365 ) — (393,365 ) Total $ 84,985 $ — $ 84,985 Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value assigned to the individual assets acquired and liabilities assumed. We do not amortize goodwill, but instead are required to test goodwill for impairment at least annually. If necessary, we would record any impairment in accordance with ASC 350, Intangibles - Goodwill and Other. We perform impairment tests between scheduled annual tests in the fourth quarter if facts and circumstances indicate that it is more likely than not that the fair value of a reporting unit that has goodwill is less than its carrying value. Other intangibles, net Other intangibles, net consisted of intangible assets acquired as part of our GE and TetraSun acquisitions and our internally-generated intangible assets, substantially all of which were patents on technologies related to our products and production processes. We record an asset for patents, after the patent has been issued, based on the legal, filing, and other costs incurred to secure them. We amortize intangible assets on a straight-line basis over their estimated useful lives once the intangible assets meet the criteria to be amortized. During the nine months ended September 30, 2015 , $73.7 million of in-process research and development from the GE acquisition was reclassified to developed technology and began amortizing over its useful life of 10 years , and $39.1 million of in-process research and development from the TetraSun acquisition was also reclassified to developed technology and began amortizing over its useful life of 12 years . The following tables summarize our intangible assets at September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 Gross Amount Accumulated Amortization Net Amount Patents $ 5,523 $ (1,610 ) $ 3,913 Developed technology 114,614 (6,057 ) 108,557 Total $ 120,137 $ (7,667 ) $ 112,470 December 31, 2014 Gross Amount Accumulated Amortization Net Amount Patents 5,347 $ (1,208 ) $ 4,139 Developed technology 2,757 (460 ) 2,297 In-process research and development 112,800 — 112,800 Total $ 120,904 $ (1,668 ) $ 119,236 Amortization expense for our intangible assets was $3.0 million and $6.3 million for the three and nine months ended September 30, 2015 , respectively, and $0.4 million and $0.9 million for the three and nine months ended and September 30, 2014 , respectively. Accrued expenses Accrued expenses consisted of the following at September 30, 2015 and December 31, 2014 (in thousands): September 30, December 31, Accrued compensation and benefits $ 57,641 $ 43,072 Accrued property, plant and equipment 12,077 30,723 Accrued inventory and balance of systems parts 58,471 36,233 Accrued project assets and deferred project costs 163,164 113,012 Product warranty liability (1) 48,311 69,656 Accrued expenses in excess of normal product warranty liability and related expenses (1) 6,383 7,800 Other 66,120 87,660 Accrued expenses $ 412,167 $ 388,156 (1) See Note 12. “Commitments and Contingencies” to our condensed consolidated financial statements for further discussion of “Product warranty liability” and “Accrued expenses in excess of normal product warranty liability and related expenses.” Billings in excess of costs and estimated earnings Billings in excess of costs and estimated earnings was $74.1 million and $195.3 million at September 30, 2015 and December 31, 2014 , respectively, and represented billings made or payments received in excess of revenue recognized on contracts accounted for under the percentage-of-completion method. Typically, billings are made based on the completion of certain construction milestones as provided for in the sales arrangement, and the timing of revenue recognition may be different from when we can bill or collect from a customer. Payments and billings for deferred project costs Payments and billings for deferred project costs was $22.7 million and $60.6 million at September 30, 2015 and December 31, 2014 , respectively, and represented customer payments received or customer billings made under the terms of solar power project related sales contracts for which all revenue recognition criteria for real estate transactions have not yet been met. The corresponding solar power project related costs are included as deferred project costs. We classify such amounts as current or noncurrent depending on when all revenue recognition criteria are expected to be met, consistent with the classification of the associated deferred project costs. Other current liabilities Other current liabilities consisted of the following at September 30, 2015 and December 31, 2014 (in thousands): September 30, December 31, Deferred revenue $ 9,199 $ 21,879 Derivative instruments 10,299 7,657 Contingent consideration (1) 4,132 36,817 Financing liability (2) 5,289 — Other 14,116 22,349 Other current liabilities $ 43,035 $ 88,702 (1) See Note 12. “Commitments and Contingencies” to our condensed consolidated financial statements for further discussion. (2) See Note 9. “Investments in Unconsolidated Affiliates and Joint Ventures” to our condensed consolidated financial statements for further discussion of the financing liabilities associated with our leaseback of the Maryland Solar project. Other liabilities Other liabilities consisted of the following at September 30, 2015 and December 31, 2014 (in thousands): September 30, December 31, Product warranty liability (1) $ 184,759 $ 153,401 Other taxes payable 54,523 82,555 Derivative instruments 15,364 9,041 Contingent consideration (1) 7,237 17,077 Liability in excess of normal product warranty liability and related expenses (1) 20,111 23,139 Financing liability (2) 37,207 — Other 45,308 35,333 Other liabilities $ 364,509 $ 320,546 (1) See Note 12. “Commitments and Contingencies” to our condensed consolidated financial statements for further discussion on “Product warranty liability,” “Contingent consideration,” and “Liability in excess of normal product warranty liability and related expenses.” (2) See Note 9. “Investments in Unconsolidated Affiliates and Joint Ventures” to our condensed consolidated financial statements for further discussion of the financing liabilities associated with our leaseback of the Maryland Solar project. |
