Document and Entity Information
Document and Entity Information Document - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | FIRST SOLAR, INC. | ||
Entity Central Index Key | 1,274,494 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2.8 | ||
Entity Common Stock, Shares Outstanding | 101,767,670 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 1,126,826 | $ 1,482,054 |
Marketable securities | 703,454 | 509,032 |
Accounts receivable trade, net | 500,629 | 135,434 |
Accounts receivable, unbilled and retainage | 59,171 | 76,971 |
Inventories | 380,424 | 505,088 |
Balance of systems parts | 136,889 | 125,083 |
Deferred project costs | 187,940 | 29,354 |
Notes receivable, affiliate | 1,276 | 12,487 |
Prepaid expenses and other current assets | 248,977 | 202,151 |
Total current assets | 3,345,586 | 3,077,654 |
Property, plant and equipment, net | 1,284,136 | 1,419,988 |
PV solar power systems, net | 93,741 | 46,393 |
Project assets and deferred project costs | 1,111,137 | 810,348 |
Deferred tax assets, net | 357,693 | 313,891 |
Restricted cash and investments | 333,878 | 407,053 |
Investments in unconsolidated affiliates and joint ventures | 399,805 | 255,029 |
Goodwill | 84,985 | 84,985 |
Other intangibles, net | 110,002 | 119,236 |
Inventories | 107,759 | 115,617 |
Notes receivable, affiliates | 17,887 | 9,127 |
Other assets | 69,722 | 61,670 |
Total assets | 7,316,331 | 6,720,991 |
Current liabilities: | ||
Accounts payable | 337,668 | 214,656 |
Income taxes payable | 1,330 | 1,727 |
Accrued expenses | 409,452 | 388,156 |
Current portion of long-term debt | 38,090 | 51,399 |
Billings in excess of costs and estimated earnings | 87,942 | 195,346 |
Payments and billings for deferred project costs | 28,580 | 60,591 |
Other current liabilities | 57,738 | 88,664 |
Total current liabilities | 960,800 | 1,000,539 |
Accrued solar module collection and recycling liability | 163,407 | 246,307 |
Long-term debt | 251,325 | 162,074 |
Other liabilities | 392,312 | 320,584 |
Total liabilities | $ 1,767,844 | $ 1,729,504 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 101,766,797 and 100,288,942 shares issued and outstanding at December 31, 2015 and 2014, respectively | $ 102 | $ 100 |
Additional paid-in capital | 2,742,795 | 2,697,558 |
Accumulated earnings | 2,790,110 | 2,243,689 |
Accumulated other comprehensive income | 15,480 | 50,140 |
Total stockholders' equity | 5,548,487 | 4,991,487 |
Total liabilities and stockholders' equity | $ 7,316,331 | $ 6,720,991 |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares Issued | 101,766,797 | 100,288,942 |
Common Stock, Shares Outstanding | 101,766,797 | 100,288,942 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales | $ 3,578,995 | $ 3,391,187 | $ 3,309,616 |
Cost of sales | 2,659,728 | 2,566,246 | 2,444,984 |
Gross profit | 919,267 | 824,941 | 864,632 |
Operating expenses: | |||
Research and development | 130,593 | 143,969 | 134,300 |
Selling, general and administrative | 255,192 | 253,827 | 270,261 |
Production start-up | 16,818 | 5,146 | 2,768 |
Restructuring and asset impairments | 0 | 0 | 86,896 |
Total operating expenses | 402,603 | 402,942 | 494,225 |
Operating income | 516,664 | 421,999 | 370,407 |
Foreign currency (loss) gain, net | (6,868) | (1,461) | 893 |
Interest income | 22,516 | 18,030 | 16,752 |
Interest expense, net | (6,975) | (1,982) | (1,884) |
Other expense, net | (5,502) | (4,485) | (5,189) |
Income before taxes and equity in earnings of unconsolidated affiliates | 519,835 | 432,101 | 380,979 |
Income tax benefit (expense) | 6,156 | (31,188) | (30,098) |
Equity in earnings of unconsolidated affiliates, net of tax | 20,430 | (4,949) | (163) |
Net income | $ 546,421 | $ 395,964 | $ 350,718 |
Net income per share: | |||
Basic | $ 5.42 | $ 3.96 | $ 3.74 |
Diluted | $ 5.37 | $ 3.90 | $ 3.67 |
Weighted-average number of shares used in per share calculations: | |||
Basic | 100,886 | 100,048 | 93,697 |
Diluted | 101,815 | 101,643 | 95,468 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 546,421 | $ 395,964 | $ 350,718 |
Foreign currency translation adjustments | (16,432) | (19,147) | 4,295 |
Unrealized (loss) gain on marketable securities and restricted investments | (15,415) | 90,741 | (39,685) |
Unrealized (loss) gain on derivative instruments | (2,813) | 4,322 | (565) |
Other comprehensive (loss) income, net of tax | (34,660) | 75,916 | (35,955) |
Comprehensive income | $ 511,761 | $ 471,880 | $ 314,763 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Common stock, shares at Dec. 31, 2012 | 87,145,000 | ||||
Stockholders' equity at Dec. 31, 2012 | $ 3,573,294 | $ 87 | $ 2,066,021 | $ 1,497,007 | $ 10,179 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 350,718 | 350,718 | |||
Other comprehensive income (loss) | (35,955) | (35,955) | |||
Common stock issued for share-based compensation, shares | 1,244,000 | ||||
Common stock issued for share-based compensation | 5,347 | $ 1 | 5,346 | ||
Share-based compensation tax benefits | 21,017 | 21,017 | |||
Tax withholding related to vesting of restricted stock, shares | (380,000) | ||||
Tax withholding related to vesting of restricted stock | (11,979) | $ 0 | (11,979) | ||
Share-based compensation expense | 53,684 | 53,684 | |||
Common stock issued for acquisition, shares | 1,750,000 | ||||
Common stock issued for acquisition | 83,755 | $ 2 | 83,753 | ||
Common stock issued for public offering, shares | 9,747,000 | ||||
Common stock issued for public offering | 428,190 | $ 10 | 428,180 | ||
Common stock, shares at Dec. 31, 2013 | 99,506,000 | ||||
Stockholders' equity at Dec. 31, 2013 | 4,468,071 | $ 100 | 2,646,022 | 1,847,725 | (25,776) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 395,964 | 395,964 | |||
Other comprehensive income (loss) | 75,916 | 75,916 | |||
Common stock issued for share-based compensation, shares | 1,126,000 | ||||
Common stock issued for share-based compensation | 4,950 | $ 0 | 4,950 | ||
Share-based compensation tax benefits | 24,505 | 24,505 | |||
Tax withholding related to vesting of restricted stock, shares | (344,000) | ||||
Tax withholding related to vesting of restricted stock | (23,100) | $ 0 | (23,100) | ||
Share-based compensation expense | 45,181 | 45,181 | |||
Common stock issued for acquisition | $ 0 | ||||
Common stock, shares at Dec. 31, 2014 | 100,288,942 | 100,288,000 | |||
Stockholders' equity at Dec. 31, 2014 | $ 4,991,487 | $ 100 | 2,697,558 | 2,243,689 | 50,140 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 546,421 | 546,421 | |||
Other comprehensive income (loss) | (34,660) | (34,660) | |||
Common stock issued for share-based compensation, shares | 1,782,000 | ||||
Common stock issued for share-based compensation | 5,888 | $ 2 | 5,886 | ||
Share-based compensation tax benefits | 14,567 | 14,567 | |||
Tax withholding related to vesting of restricted stock, shares | (303,000) | ||||
Tax withholding related to vesting of restricted stock | (18,189) | $ 0 | (18,189) | ||
Share-based compensation expense | 42,973 | 42,973 | |||
Common stock issued for acquisition | $ 0 | ||||
Common stock, shares at Dec. 31, 2015 | 101,766,797 | 101,767,000 | |||
Stockholders' equity at Dec. 31, 2015 | $ 5,548,487 | $ 102 | $ 2,742,795 | $ 2,790,110 | $ 15,480 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 546,421 | $ 395,964 | $ 350,718 |
Adjustments to reconcile net income to cash (used in) provided by operating activities [Abstract] | |||
Depreciation, amortization and accretion | 257,825 | 245,798 | 234,370 |
Impairment and net loss on disposal of long-lived assets | 14,593 | 5,228 | 97,132 |
Share-based compensation | 44,899 | 43,810 | 54,585 |
Equity in earnings of unconsolidated affiliates, net of tax | (20,430) | 4,949 | 163 |
Remeasurement of monetary assets and liabilities | (4,043) | 7,216 | (16,261) |
Deferred income taxes | (17,534) | 14,068 | (20,878) |
Excess tax benefit from share-based compensation arrangements | (17,707) | (31,166) | (35,076) |
Other, net | 520 | 1,780 | 870 |
Changes in operating assets and liabilities [Abstract] | |||
Accounts receivable, trade, unbilled and retainage | (340,292) | 462,630 | 570,731 |
Prepaid expenses and other current assets | (38,635) | (36,805) | 119,241 |
Inventories and balance of systems parts | 113,537 | (99,870) | 15,394 |
Project assets and deferred project costs | (857,529) | 143,047 | (316,705) |
Other assets | (8,484) | (5,371) | (1,684) |
Accounts payable | 143,872 | (53,057) | (92,828) |
Income taxes payable | (13,281) | (1,131) | 36,392 |
Accrued expenses and other liabilities | (85,425) | (442,153) | (150,686) |
Accrued solar module collection and recycling liability | (79,226) | 26,052 | 10,648 |
Net cash (used in) provided by operating activities | (360,919) | 680,989 | 856,126 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (166,438) | (257,549) | (282,576) |
Proceeds from sales of property, plant, and equipment | 77 | 1,532 | 116,403 |
Purchases of marketable securities | (556,479) | (305,396) | (435,015) |
Proceeds from sales and maturities of marketable securities | 353,359 | 227,900 | 93,984 |
Purchases of equity and cost method investments | (27,475) | (24,967) | (17,905) |
Distributions received from equity method investments | 238,980 | 0 | 0 |
Investments in notes receivable, affiliates | (55,163) | (72,692) | 0 |
Payments received on notes receivable, affiliate | 57,866 | 49,517 | 17,108 |
Change in restricted cash | 44,037 | (124,061) | 5,173 |
Acquisitions, net of cash acquired | 0 | (4,306) | (30,745) |
Other investing activities | (904) | (1,857) | (3,533) |
Net cash used in investing activities | (112,140) | (511,879) | (537,106) |
Cash flows from financing activities: | |||
Repayment of borrowings under revolving credit facility | 0 | 0 | (605,000) |
Proceeds from borrowings under revolving credit facility | 0 | 0 | 335,000 |
Repayment of long-term debt | (47,078) | (60,063) | (64,954) |
Proceeds from borrowings under long-term debt, net of discounts and issuance costs | 146,027 | 65,563 | 0 |
Repayment of sale-leaseback financing | (3,702) | 0 | 0 |
Proceeds from sale-leaseback financing | 44,718 | 0 | 0 |
Excess tax benefits from share-based compensation arrangements | 17,707 | 31,166 | 35,076 |
Proceeds from equity offering, net of issuance costs | 0 | 0 | 428,190 |
Contingent consideration payments and other financing activities | (20,569) | (29,307) | (27,148) |
Net cash provided by financing activities | 137,103 | 7,359 | 101,164 |
Effect of exchange rate changes on cash and cash equivalents | (19,272) | (19,487) | 3,594 |
Net (decrease) increase in cash and cash equivalents | (355,228) | 156,982 | 423,778 |
Cash and cash equivalents, beginning of the period | 1,482,054 | 1,325,072 | 901,294 |
Cash and cash equivalents, end of the period | 1,126,826 | 1,482,054 | 1,325,072 |
Supplemental disclosure of noncash investing and financing activities: | |||
Equity interests retained from the partial sale of project assets | 324,430 | 220,679 | 0 |
Property, plant and equipment acquisitions funded by liabilities | 17,749 | 61,130 | 60,677 |
Acquisitions currently or previously funded by liabilities and contingent consideration | 17,988 | 53,894 | 97,885 |
Shares issued for acquisition | $ 0 | $ 0 | $ 83,755 |
Note 1. First Solar and Its Bus
Note 1. First Solar and Its Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation Disclosure [Text Block] | 1. First Solar and Its Business We are a leading global provider of comprehensive photovoltaic (“PV”) solar energy solutions. We design, manufacture, and sell PV solar modules with an advanced thin-film semiconductor technology and also develop, design, construct, and sell PV solar power systems that primarily use the modules we manufacture. Additionally, we provide operations and maintenance (“O&M”) services to system owners that use solar modules manufactured by us or by other third-party manufacturers. We have substantial, ongoing research and development efforts focused on module and systems level innovations. We are the world’s largest thin-film PV solar module manufacturer and one of the world’s largest PV solar module manufacturers. Our mission is to create enduring value by enabling a world powered by clean, affordable solar energy. First Solar Holdings, LLC was formed as a Delaware limited liability company in May 2003 to act as the holding company for First Solar, LLC, which was formed in 1999 and renamed First Solar US Manufacturing, LLC in the second quarter of 2006, and other subsidiaries formed during 2003 and later. On February 22, 2006, First Solar Holdings, LLC was incorporated in Delaware as First Solar Holdings, Inc. and, also during the first quarter of 2006, was renamed First Solar, Inc. Revision of Previously Issued Financial Statements During the three months ended September 30, 2015, we revised our previously issued financial statements from 2011 to 2014 to properly record a liability associated with an uncertain tax position, including penalties, related to income of a foreign subsidiary along with corresponding adjustments in each successive period for the effect of changes in foreign currency exchange rates associated with the liability. The prior periods also include revisions for previously disclosed errors from 2012 primarily related to “cut-off” of our inventories and balance of systems (“BoS”) parts and foreign tax credits. Additional revisions were made for previously identified errors related to sales taxes, use taxes, share-based compensation, and miscellaneous items that were corrected in a period subsequent to the period in which the error originated. As several of these errors affected the estimated costs for systems business sales arrangements accounted for under the percentage-of-completion method , we also recorded adjustments to revenue for the changes in the percentage completion of the affected projects. We evaluated the aggregate effects of the errors to our previously issued financial statements in accordance with SEC Staff Accounting Bulletins No. 99 and No. 108 and, based upon quantitative and qualitative factors, determined that the errors were not material to our previously issued financial statements. As part of this evaluation, we considered a number of qualitative factors, including, among others, that the errors did not change a net loss into net income or vice versa, did not have an impact on our long-term debt covenant compliance, and did not mask a change in earnings or other trends when considering the overall competitive and economic environment within the industry during the periods. However, the cumulative effect of the errors, including the uncertain tax position matter identified during the three months ended September 30, 2015, was significant to our financial results for the year ended December 31, 2015. Accordingly, we revised our historical financial statements, which resulted in decreases to our accumulated earnings of $36.0 million , $35.0 million , and $32.7 million as of December 31, 2014 , 2013 , and 2012 , respectively. All financial information presented in the accompanying notes to these consolidated financial statements was revised to reflect the correction of these errors. Periods not presented herein will be revised, as applicable, as they are included in future filings. The following table presents the effect of the aforementioned revisions on our consolidated balance sheet as of December 31, 2014 (in thousands): December 31, 2014 As Reported Adjustment As Revised Other liabilities $ 284,584 $ 36,000 $ 320,584 Total liabilities 1,693,504 36,000 1,729,504 Accumulated earnings 2,279,689 (36,000 ) 2,243,689 Total stockholders’ equity 5,027,487 (36,000 ) 4,991,487 The following tables present the effect of the aforementioned revisions on our consolidated statements of operations for the years ended December 31, 2014 and 2013 (in thousands, except per share amounts): Year Ended December 31, 2014 As Reported Adjustment As Revised Net sales $ 3,391,814 $ (627 ) $ 3,391,187 Cost of sales 2,564,709 1,537 2,566,246 Gross profit 827,105 (2,164 ) 824,941 Operating income 424,163 (2,164 ) 421,999 Foreign currency loss, net (3,017 ) 1,556 (1,461 ) Other expense, net (5,203 ) 718 (4,485 ) Income before taxes and equity in earnings of unconsolidated affiliates 431,991 110 432,101 Income tax expense (30,124 ) (1,064 ) (31,188 ) Net income 396,918 (954 ) 395,964 Comprehensive income 472,834 (954 ) 471,880 Basic net income per share $ 3.97 $ (0.01 ) $ 3.96 Diluted net income per share $ 3.91 $ (0.01 ) $ 3.90 Year Ended December 31, 2013 As Reported Adjustment As Revised Net sales $ 3,308,989 $ 627 $ 3,309,616 Cost of sales 2,446,235 (1,251 ) 2,444,984 Gross profit 862,754 1,878 864,632 Operating income 368,529 1,878 370,407 Foreign currency (loss) gain, net (259 ) 1,152 893 Other expense, net (4,758 ) (431 ) (5,189 ) Income before taxes and equity in earnings of unconsolidated affiliates 378,380 2,599 380,979 Income tax expense (25,179 ) (4,919 ) (30,098 ) Net income 353,038 (2,320 ) 350,718 Comprehensive income 317,083 (2,320 ) 314,763 Basic net income per share $ 3.77 $ (0.03 ) $ 3.74 Diluted net income per share $ 3.70 $ (0.03 ) $ 3.67 The following tables present the effect of the aforementioned revisions on our consolidated statements of cash flows for the years ended December 31, 2014 and 2013 (in thousands): Year Ended December 31, 2014 As Reported Adjustment As Revised Net income $ 396,918 $ (954 ) $ 395,964 Adjustments to reconcile net income to cash provided by operating activities: Remeasurement of monetary assets and liabilities 8,772 (1,556 ) 7,216 Changes in operating assets and liabilities: Accounts receivable, trade, unbilled and retainage 453,826 8,804 462,630 Prepaid expenses and other current assets (19,947 ) (16,858 ) (36,805 ) Project assets and deferred project costs 141,908 1,139 143,047 Accounts payable (52,339 ) (718 ) (53,057 ) Income taxes payable (989 ) (142 ) (1,131 ) Accrued expenses and other liabilities (452,438 ) 10,285 (442,153 ) Net cash provided by operating activities 680,989 — 680,989 Year Ended December 31, 2013 As Reported Adjustment As Revised Net income $ 353,038 $ (2,320 ) $ 350,718 Adjustments to reconcile net income to cash provided by operating activities: Share-based compensation 55,079 (494 ) 54,585 Remeasurement of monetary assets and liabilities (15,109 ) (1,152 ) (16,261 ) Changes in operating assets and liabilities: Accounts receivable, trade, unbilled and retainage 564,964 5,767 570,731 Prepaid expenses and other current assets 109,126 10,115 119,241 Project assets and deferred project costs (316,022 ) (683 ) (316,705 ) Accounts payable (93,259 ) 431 (92,828 ) Income taxes payable 36,307 85 36,392 Accrued expenses and other liabilities (138,937 ) (11,749 ) (150,686 ) Net cash provided by operating activities 856,126 — 856,126 |
Note 2. Summary of Significant
Note 2. Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies [Text Block] | 2. Summary of Significant Accounting Policies Basis of Presentation. These consolidated financial statements include the accounts of First Solar, Inc. and all of its subsidiaries and are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). We eliminated all intercompany transactions and balances during consolidation. Investments in unconsolidated affiliates in which we have less than a controlling interest are accounted for using the cost or equity method of accounting. Certain prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not have a material effect on our consolidated financial statements. In addition, the method of reporting the consolidated statements of cash flows was changed from the direct to the indirect method. Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and the accompanying notes. On an ongoing basis, we evaluate our estimates, including those related to percentage-of-completion revenue recognition, inventory valuation, recoverability of project assets and photovoltaic (“PV”) solar power systems, estimates of future cash flows from and the economic useful lives of long-lived assets, asset retirement obligations, certain accrued liabilities, income taxes and tax valuation allowances, reportable segment allocations, product warranties and manufacturing excursions, solar module collection and recycling liabilities, and applying the acquisition method of accounting for business combinations and goodwill. Despite our intention to establish accurate estimates and reasonable assumptions, actual results could differ materially from these estimates and assumptions. Fair Value Measurements. We measure certain financial assets and liabilities at fair value. As of December 31, 2015 , our financial assets and liabilities consisted principally of cash and cash equivalents, marketable securities, trade accounts receivable, unbilled accounts receivable and retainage, notes receivable, restricted cash and investments, derivative contracts, accounts payable, income taxes payable, accrued expenses, and debt. Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (i.e., an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. Accounting standards include disclosure requirements around fair values used for certain financial instruments and establish a fair value hierarchy. The hierarchy prioritizes valuation inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of three levels: • Level 1 – Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. • Level 2 – Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and value drivers are observable in active markets are Level 2 valuation techniques. • Level 3 – Valuation techniques in which one or more significant inputs or value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect our own assumptions about the assumptions that market participants would use to price an asset or liability. When available, we use quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, we measure fair value using valuation techniques that use, when possible, current market-based or independently-sourced market parameters, such as interest rates and currency rates. Cash and Cash Equivalents. We consider all highly liquid investments with original maturities of 90 days or less at the time of purchase to be cash equivalents. Marketable Securities – Current and Noncurrent and Restricted Investments. We determine the classification of our marketable securities and restricted investments at the time of purchase and reevaluate such designation at each balance sheet date. We have classified our marketable securities and restricted investments as available-for-sale. These marketable securities and restricted investments are recorded at fair value and unrealized gains and losses are recorded to “ Accumulated other comprehensive income ” until realized. Realized gains and losses on sales of these marketable securities and restricted investments are reported in earnings, computed using the specific identification method. We may sell marketable securities prior to their stated maturities after consideration of our liquidity requirements. We view unrestricted securities with maturities beyond 12 months as available to support current operations and, accordingly, classify all such securities as current assets under the caption marketable securities in the consolidated balance sheets. Restricted investments consist of long-term duration marketable securities that we hold through a custodial account to fund the estimated future costs of our solar module collection and recycling obligations. Accordingly, we classify all restricted investments as noncurrent assets under the caption “ Restricted cash and investments ” in the consolidated balance sheets. All of our available-for-sale marketable securities and restricted investments are subject to a periodic impairment review. We consider a marketable security or restricted investment to be impaired when its fair value is less than its carrying cost, in which case we would further review the marketable security or restricted investment to determine if it is other-than-temporarily impaired. When we evaluate a marketable security or restricted investment for other-than-temporary impairment, we review factors such as the length of time and the extent to which its fair value has been below its cost basis, the financial conditions of the issuer and any changes thereto, our intent to sell, and whether it is more likely than not that we will be required to sell the marketable security or restricted investment before we have recovered its cost basis. If a marketable security or restricted investment were other-than-temporarily impaired, we would write it down through “ Other expense, net ” to its impaired value and establish that value as a new cost basis for the marketable security or restricted investment. Derivative Instruments. We recognize derivative instruments on our consolidated balance sheets at their fair value. On the date that we enter into a derivative contract, we designate the derivative instrument as a fair value hedge, a cash flow hedge, a hedge of a net investment in a foreign operation, or a derivative instrument that will not be accounted for using hedge accounting methods. As of December 31, 2015 and 2014 , all of our derivative instruments were designated either as cash flow hedges or as derivative instruments not accounted for using hedge accounting methods. We record changes in the fair value of a derivative instrument that is highly effective and that is designated and qualifies as a cash flow hedge in “ Other comprehensive income, net of tax ” until our earnings are affected by the variability of cash flows of the underlying hedge. We record any hedge ineffectiveness and amounts excluded from effectiveness testing in current period earnings within “ Other expense, net .” We report changes in the fair values of derivative instruments that are not designated or do not qualify for hedge accounting in current period earnings. We classify cash flows from derivative instruments on the consolidated statements of cash flows in the same category as the item being hedged or on a basis consistent with the nature of the instrument. We formally document all relationships between hedging instruments and the underlying hedged items, as well as our risk-management objective and strategy for undertaking various hedge transactions, at the inception of the hedge. We support all of our derivatives with documentation specifying the underlying exposure being hedged. We also formally assess (both at the hedge’s inception and on an ongoing basis) whether the derivative instruments that we use in hedging transactions have been highly effective in offsetting changes in the fair value or cash flows of the underlying hedged items and whether those derivatives are expected to remain highly effective in future periods. When we determine that a derivative instrument is not highly effective as a hedge, we discontinue hedge accounting prospectively. In all situations in which we discontinue hedge accounting and the derivative instrument remains outstanding, we will carry the derivative instrument at its fair value on our consolidated balance sheets and recognize subsequent changes in its fair value in our current period earnings. Receivables and Allowance for Doubtful Accounts . The carrying value of our receivables, net of the allowance for doubtful accounts, represents their estimated net realizable value. We estimate our allowance for doubtful accounts based on historical collection trends, the age of outstanding receivables, and existing economic conditions. If events or changes in circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances, and the allowance is adjusted accordingly. Past-due receivable balances are written off when our internal collection efforts have been unsuccessful. Retainage. Certain of our engineering, procurement, and construction (“EPC”) contracts for solar power plants we build contain retainage provisions. 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. We consider whether collectability of such retainage is reasonably assured in connection with our overall assessment of the collectability of amounts due or that will become due under our EPC contracts. Retainage expected to be collected within 12 months is classified within “ Accounts receivable, unbilled and retainage ” on the consolidated balance sheets. Retainage expected to be collected after 12 months is classified within “ Other assets ” on the consolidated balance sheets. After we have met the EPC contract requirements to bill for retainage, we will reclassify such amounts to “ Accounts receivable trade, net .” Inventories – Current and Noncurrent. We report our inventories at the lower of cost or net realizable value. We determine cost on a first-in, first-out basis and include both the costs of acquisition and the costs of manufacturing in our inventory costs. These costs include direct material, direct labor, and indirect manufacturing costs, including depreciation and amortization. Our capitalization of costs into inventory is based on the normal utilization of our plants. If our plant utilization is abnormally low, the portion of our indirect manufacturing costs related to the abnormal utilization level is expensed as incurred. Finished goods inventory is comprised exclusively of solar modules that have not yet been installed in a solar power plant under construction or sold to a third-party customer. We regularly review the cost of inventories, including noncurrent inventories, against their estimated net realizable value and record write-downs if any inventories have costs in excess of their net realizable values. We also regularly evaluate the quantities and values of our inventories, including noncurrent inventories, in light of current market conditions and market trends, among other factors, and record write-downs for any quantities in excess of demand and for any new obsolescence. This evaluation considers the use of modules in our systems business, historical usage, expected demand, anticipated sales prices, desired strategic raw material requirements, new product development schedules, the effect new products might have on the sale of existing products, product obsolescence, customer concentrations, product merchantability, and other factors. Market conditions are subject to change, and actual consumption of our inventory could differ from forecasted demand. We purchase a critical raw material that is used in our core production process in quantities that exceed anticipated consumption within our normal operating cycle (which is 12 months). We classify such raw materials that we do not expect to be consumed within our operating cycle as noncurrent. Balance of Systems Parts. BoS parts represent mounting, electrical, and other construction parts purchased for PV solar power systems to be constructed or currently under construction, which we hold title to and are not yet installed in a system. Such construction parts include 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. We carry these parts at the lower of cost or net realizable value, with such value being based primarily on recoverability through installation in a solar power system or recoverability through a sales agreement. BoS parts do not include any solar modules that we manufacture. Asset Impairments. We assess long-lived assets classified as “held and used,” including our property, plant and equipment, project assets, and PV solar power systems for impairment whenever events or changes in business circumstances arise that may indicate that the carrying amount of our long-lived assets may not be recoverable. These events and changes can include significant current period operating losses or negative cash flows associated with the use of a long-lived asset, or group of assets, combined with a history of such factors, significant changes in the manner of use of the assets, and current expectations that it is more likely than not that a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. For purposes of recognition and measurement of an impairment loss, 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. When impairment indicators are present, we compare undiscounted future cash flows, including the eventual disposition of the asset group at market value, to the asset group’s carrying value to determine if the asset group is recoverable. If the carrying values are in excess of undiscounted expected future cash flows, we measure any impairment by comparing the fair value of the asset or asset group to its carrying value. Fair value is generally determined by considering (i) internally developed discounted projected cash flow analysis of the asset or asset group, (ii) actual third-party valuations, and/or (iii) information available regarding the current market for similar assets. If the fair value of an asset or asset group is determined to be less than the carrying amount of the asset or asset group, an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs and is included in “ Restructuring and asset impairments ” in our consolidated statement of operations. Estimating future cash flows requires significant judgment, and projections may vary from the cash flows eventually realized, which could impact our ability to accurately assess whether an asset has been impaired. We consider a long-lived asset to be abandoned after we have ceased use of such asset and we have no intent to use or re-purpose the asset in the future. We classify each long-lived tangible asset we plan to sell, excluding PV solar power systems, as an asset held for sale on our consolidated balance sheets only after certain criteria have been met including: (i) management has the authority and commits to a plan to sell the asset; (ii) the asset is available for immediate sale in its present condition; (iii) there is an active program to locate a buyer, and the plan to sell the asset has been initiated; (iv) the sale of the asset is probable within 12 months; (v) the asset is being actively marketed at a reasonable sales price relative to its current fair value; and (vi) it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made. We record assets held for sale at the lower of their carrying value or fair value less costs to sell. If, due to unanticipated circumstances, such assets are not sold in the 12 months after being classified as held for sale, then held for sale classification will continue as long as the above criteria are still met and the asset is being actively marketed at a reasonable sales price relative to its then current fair value. We assess held for sale long-lived assets for impairment whenever events or circumstances arise that may indicate that the carrying amount of our held for sale long-lived assets may not be recoverable. Depreciation and amortization expense is not recorded on assets once they are classified as assets held for sale. Property, Plant and Equipment. We report our property, plant and equipment at cost, less accumulated depreciation. Cost includes the price paid to acquire or construct the assets, required installation costs, interest capitalized during the construction period, and any expenditure that substantially adds to the value of or substantially extends the useful life of an existing asset. We expense repair and maintenance costs at the time we incur them. We begin depreciation for such assets when they are placed into service. We consider an asset to be placed into service when the asset is both in the location and condition for its intended use. We compute depreciation expense using the straight-line method over the estimated useful lives of assets, as presented in the table below. We depreciate leasehold improvements over the shorter of their estimated useful lives or the remaining term of the lease. The estimated useful life of an asset is reassessed whenever applicable facts and circumstances indicate a change in the estimated useful life of such asset has occurred. Useful Lives in Years Buildings and building improvements 25 – 40 Manufacturing machinery and equipment 5 – 7 Furniture, fixtures, computer hardware, and computer software 3 – 7 Leasehold improvements up to 15 Idle Property, Plant and Equipment. For property, plant and equipment that has been placed into service, but is subsequently idled temporarily, we continue to record depreciation expense during the idle period. We adjust the estimated useful lives of the idled assets if the estimated useful lives have changed. At December 31, 2015 , the current net book value of our temporarily idled equipment was $4.0 million . PV Solar Power Systems. PV solar power systems represent solar systems that we may temporarily own and operate after being placed into service. We report our PV solar power systems at cost, less accumulated depreciation. When we are entitled to incentive tax credits for our systems, we reduce the related carrying value of the assets by the amount of the tax credits, which reduces future depreciation. Any energy generated by the systems prior to being placed into service is accounted for as a reduction in the related carrying value of the assets. We begin depreciation for PV solar power systems when they are placed into service. We compute depreciation expense for the systems using the straight-line method over the shortest of the term of the related power purchase agreement (“PPA”), the lease on the land, or 25 years. Our current PV solar power systems have estimated useful lives ranging from 15 to 25 years. We sell energy generated by our PV solar power systems under PPAs or on an open contract basis. We recognize revenue from such sales at the time the energy is delivered to our customers or the grid (in the case of merchant power). For the year ended December 31, 2015 , we recognized revenue from our PV solar power systems of $9.8 million . Asset Retirement Obligations. We develop, construct, and operate certain project assets and PV solar power systems under power purchase or other agreements that include a requirement for the removal of the assets at the end of the term of the agreement. We recognize asset retirement obligations (“AROs”) at fair value in the period in which they are incurred, and the carrying amounts of the related project assets or PV solar power systems are correspondingly increased. AROs represent the present value of the expected costs and timing of the related decommissioning activities. At December 31, 2015 and 2014 , our AROs totaled $15.9 million and $6.7 million , respectively. Internal-Use Software Costs. We capitalize the costs related to computer software obtained or developed for internal use. Software obtained for internal use has generally been enterprise-level business and finance software that we customize to meet our specific operational requirements. The capitalized costs are amortized on a straight-line basis over the estimated useful life of the software, ranging from 3 to 7 years. Interest Capitalization . We capitalize interest as part of the historical cost of acquiring or constructing certain assets during the period of time required to place the assets into service or sell the assets to customers. These assets include property, plant and equipment and PV solar power system development and construction costs that we have capitalized as project assets. Interest capitalized for property, plant and equipment is depreciated over the estimated useful life of the related assets when they are placed into service. We charge interest capitalized for project assets to cost of sales when such assets are sold and we have met all revenue recognition criteria. We capitalize interest to the extent that expenditures to acquire, construct, or develop an asset have occurred and interest cost has been incurred. We cease capitalization of interest for projects in development or under construction if the projects are substantially complete or if we receive any payment for or have sold such projects. Project Assets. 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 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 consolidated balance sheets 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). In addition, we present all expenditures related to the development and construction of project assets or deferred project costs, whether fully or partially owned, as a component of cash flows from operating activities. 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. We review project assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. We consider a project commercially viable or recoverable if it is anticipated to be sold for a profit once it is either fully developed or fully constructed. We consider a partially developed or partially constructed project commercially viable or recoverable if the anticipated selling price is higher than the carrying value of the related project assets. We examine a number of factors to determine if the project will be recoverable, the most notable of which include whether there are any changes in environmental, ecological, permitting, market pricing, or regulatory conditions that impact the project. Such changes could cause the costs of the project to increase or the selling price of the project to decrease. If a project is not considered recoverable, we impair the respective project assets and adjust the carrying value to the estimated recoverable amount, with the resulting impairment recorded within operating expenses. Deferred Project Costs. 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 or our decision to temporarily hold such project. 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. The following table summarizes the balance sheet classification of project assets and deferred project costs: Milestone Arrangements Accounted for under ASC 360-20 (Real Estate Sales) Arrangements Accounted for under ASC 605-35 (Long-Term Construction Contracts) Execution of a definitive sales arrangement, but all revenue recognition criteria are not yet met Deferred project costs Deferred project costs Pre-execution of a definitive sales arrangement Project asset Deferred project costs (recoverable pre-contract costs) Accounts Receivable, Unbilled . 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. Billings in Excess of Costs and Estimated Earnings. The liability “ Billings in excess of costs and estimated earnings ” represents 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. The liability “ Payments and billings for deferred project costs ” represents 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 associated solar power project costs are included within 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. Deferred Revenue. Deferred revenue consists of payments received in advance of meeting all revenue recognition criteria (with the exception of payments and billings for deferred project costs) for the sale of solar modules or services performed under our O&M agreements. We recognize deferred revenue as net sales after all revenue recognition criteria are met. Business Combinations. We account for business acquisitions using the acquisition method of accounting and record intangible assets separate from goodwill. Intangible assets are recorded at fair value based on estimates as of the date of acquisition. Goodwill is recorded as the residual amount of the purchase price consideration less the fair value assigned to the individual assets acquired and liabilities assumed as of the date of acquisition. We charge acquisition related costs that are not part of the purchase price consideration to general and administrative expense as they are incurred. These costs typically include transaction and integration costs, such as legal, accounting, and other professional fees. Contingent consideration, which represents an obligation of the acquirer to transfer additional assets or equity interests to the former owner as part of the exchange if specified future events occur or conditions are met, is accounted for at fair value either as a liability or as equity depending on the terms of the acquisition agreement. Goodwill. 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 Accounting Standards Codification (“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. We may first make a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying value to determine whether it is necessary to perform the two-step goodwill impairment test. The qualitative impairment test considers various factors including macroeconomic conditions, industry and market considerations, cost factors, the overall financial performance of a reporting unit, and any other relevant events affecting the entity or its reporting units. If we determine through the qualitative assessment that a reporting unit’s fair value is more likely than not greater than its carrying value, the two-step impairment test is not required. If the qualitative assessment indicates it is more likely than not |
Note 3. Recent Accounting Prono
Note 3. Recent Accounting Pronouncements (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements [Text Block] | 3. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , to clarify the principles of recognizing revenue and create common revenue recognition guidance between U.S. GAAP and International Financial Reporting Standards. An entity has the option to apply the provisions of ASU 2014-09 either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this standard recognized at the date of initial application. ASU 2014-09 is effective for fiscal years and interim periods within those years beginning after December 15, 2017, and early adoption is permitted for periods beginning after December 15, 2016. We are currently evaluating our method of adoption and the impact ASU 2014-09 will have on our consolidated financial statements and associated disclosures. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810) – Amendments to the Consolidation Analysis . ASU 2015-02 modifies existing consolidation guidance related to (i) limited partnerships and similar legal entities, (ii) the evaluation of variable interests for fees paid to decision makers or service providers, (iii) the effect of fee arrangements and related parties on the primary beneficiary determination, and (iv) certain investment funds. These changes are expected to limit the number of consolidation models and place more emphasis on risk of loss when determining a controlling financial interest. ASU 2015-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2015. We do not expect the adoption of ASU 2015-02 to have a significant impact on our consolidated financial statements and associated disclosures. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs . ASU 2015-03 simplifies the presentation of debt issuance costs by requiring such costs to be presented in the balance sheet as a reduction to the carrying amount of the corresponding debt liability, consistent with debt discounts, rather than as a deferred charge. The adoption of ASU 2015-03 in the second quarter of 2015 resulted in reclassifications of $0.5 million in unamortized debt issuance costs from “Prepaid expenses and other current assets” to “Current portion of long-term debt” and $2.9 million in unamortized debt issuance costs from “Other assets” to “Long-term debt” on our consolidated balance sheet as of December 31, 2014. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) – Simplifying the Measurement of Inventory. ASU 2015-11 simplifies the subsequent measurement of inventory by replacing the current lower of cost or market test with a lower of cost or net realizable value test. The adoption of ASU 2015-11 in the fourth quarter of 2015 did not have a significant impact on the subsequent measurement of inventory included in our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740) – Balance Sheet Classification of Deferred Taxes . ASU 2015-17 simplifies the presentation of deferred taxes by requiring all deferred tax assets and liabilities to be classified as noncurrent. The adoption of ASU 2015-17 in the fourth quarter of 2015 resulted in reclassifications of $77.9 million and $91.6 million from current “Deferred tax assets, net” to noncurrent “Deferred tax assets, net” on our consolidated balance sheets as of December 31, 2015 and 2014, respectively. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 changes how entities measure certain equity investments and present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. The guidance also changes certain disclosure requirements and other aspects of current U.S. GAAP. ASU 2016-01 is effective for fiscal years and interim periods within those years beginning after December 15, 2017, and certain provisions of the guidance may be early adopted. We are currently evaluating the impact ASU 2016-01 will have on our consolidated financial statements and associated disclosures. |
Note 4. Asset Impairments (Note
Note 4. Asset Impairments (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Asset Impairment Charges [Text Block] | 4. Asset Impairments In October 2013, we entered into an agreement to sell our facility in Mesa, Arizona. The facility consisted of land, a building, and certain fixtures and improvements. The facility housed our O&M capabilities as well as certain equipment and inventory. The facility was originally designed to house CdTe PV module manufacturing lines; however, we never commissioned manufacturing at the facility. As a result of the sales agreement, we recognized a $56.5 million asset impairment charge, which lowered the carrying value of the facility to its fair value, less costs to sell. During the fourth quarter of 2013, we received cash proceeds, net of costs to sell, of $115.0 million in connection with the Mesa sales agreement. The transaction was completed during the first quarter of 2014. As a result of our February 2012 manufacturing restructuring, our Vietnam facility was made available for sale, and during 2013, we expanded our marketing strategy for the facility to include potential strategic and financial buyers. As a result of this change, we determined that the estimated fair value of our Vietnam facility, including the related equipment, was less than its carrying value and recorded an asset impairment charge of $25.2 million to lower the carrying value of the facility to its estimated fair value, less costs to sell. We continue to actively market the facility at a price that is at or above the current carrying value of the assets. Impairment charges recognized for our Mesa and Vietnam facilities are presented in “ Restructuring and asset impairments ” on the consolidated statements of operations. |
Note 5. Business Acquisitions
Note 5. Business Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 5. Business Acquisitions General Electric In August 2013, we acquired all of the CdTe PV specific intellectual property assets and CdTe solar manufacturing processes (“GE Intellectual Property”) of General Electric Company (“GE”) pursuant to a Master Transaction Agreement and an Intellectual Property Purchase Agreement (the “Agreements”), by and between First Solar and GE and certain of their subsidiaries. Pursuant to the Agreements, First Solar received the GE Intellectual Property and GE received 1,750,000 shares of First Solar common stock, which had a market value of $83.8 million on August 5, 2013 . The GE Intellectual Property included trade secrets, technology, business and technical information and know-how, databases, and other confidential and proprietary information as well as solar manufacturing processes and protocols. The combination of the GE Intellectual Property and our existing manufacturing capacity is expected to further advance CdTe technology and achieve a more rapid increase in module efficiency. In connection with applying the acquisition method of accounting, $73.7 million of the purchase price consideration was assigned to an IPR&D intangible asset to be amortized over its useful life upon successful completion of the project, and $10.1 million was assigned to goodwill. The underlying technology and IPR&D acquired from GE focuses on increasing the efficiency of CdTe solar modules while at the same time lowering production and installation costs. We valued the acquired IPR&D using the reproduction cost method and the income approach, as appropriate. The income approach reflected the present value of forecasted cash flows derived from the incremental module efficiency benefits. We integrated the acquired technology into our manufacturing process during 2015 as part of our efforts to increase the efficiency of our solar modules. The pro forma effect of this all-stock acquisition was not material to our historical consolidated balance sheets, results of operations, or cash flows. Substantially all of the goodwill and intangible assets recorded for this acquisition are deductible for tax purposes. TetraSun In April 2013, we acquired 100% of the stock not previously owned by us of TetraSun, Inc. (“TetraSun”), a development stage company with high-efficiency crystalline silicon technology that is expected to provide improvements in performance relative to conventional crystalline silicon solar modules. This all-cash acquisition was not material to our historical consolidated balance sheets, results of operations, or cash flows. We have included the financial results of TetraSun in our consolidated financial statements from the date of acquisition. In connection with applying the acquisition method of accounting, $39.1 million of the purchase price consideration was assigned to an IPR&D intangible asset to be amortized over its useful life upon successful completion of the project, and $6.1 million was assigned to goodwill. The acquired IPR&D involves a project to develop a lower cost and higher efficiency crystalline silicon cell. We valued the IPR&D using the multi-period excess earnings method under the income approach. The method reflected the present value of the projected cash flows that are expected to be generated by the IPR&D less charges representing the contribution of other assets to those cash flows. During 2015, we fully integrated the acquired technology into our manufacturing processes and began selling crystalline silicon modules with proprietary high-power density, mono-crystalline technology. Solar Chile In January 2013, we acquired a 100% ownership interest in Solar Chile S.A. (“Solar Chile”), a Chilean-based solar project development company with substantially all of its assets being a portfolio of early to mid-stage utility-scale PV solar power projects in northern Chile, in an all-cash transaction, which was not material to our historical consolidated balance sheets, results of operations, or cash flows. We have included the financial results of Solar Chile in our consolidated financial statements from the date of acquisition. In connection with applying the acquisition method of accounting, $3.4 million was assigned to goodwill. In connection with the TetraSun and Solar Chile acquisitions, we agreed to pay additional amounts to sellers contingent upon achievement by the acquired businesses of certain negotiated goals, such as targeted project and module shipment volume milestones. We recognized $2.5 million and $4.9 million of current liabilities and $4.9 million and $14.7 million of long-term liabilities for these contingent obligations based on their estimated fair value as of December 31, 2015 and 2014 , respectively. During 2015 , we made $2.5 million of payments for contingent consideration related to these acquisitions and recorded an additional adjustment to reduce the associated liabilities by $10.0 million . |
Note 6. Goodwill and Intangible
Note 6. Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 were as follows (in thousands): Reporting Unit Balance at December 31, 2014 Acquisitions Balance at December 31, 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 Reporting Unit Balance at December 31, 2013 Acquisitions Balance at December 31, 2014 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 At December 31, 2015 and 2014 , accumulated impairment losses related entirely to the CdTe components reporting unit. 2015 Goodwill Impairment Testing We performed our annual impairment analysis in the fourth quarter of 2015. ASC 350-20 provides that prior to performing the traditional two-step goodwill impairment test, companies are permitted to perform a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying value to determine whether it is necessary to perform the two-step goodwill impairment test. The qualitative impairment test considers various factors including macroeconomic conditions, industry and market considerations, cost factors, the overall financial performance of a reporting unit, and any other relevant events affecting the entity or its reporting units. We performed a qualitative assessment for each of our reporting units and concluded that it was not more likely than not that the fair value of each reporting unit was less than its carrying amount. Accordingly, the two-step goodwill impairment test for our reporting units was not considered necessary. 2014 and 2013 Goodwill Impairment Testing We performed our annual impairment analysis in the fourth quarter of 2014 and 2013 and determined that the carrying amount of goodwill for our CdTe components, crystalline silicon components, and systems reporting units to be recoverable because the results of the impairment tests indicated that the fair values of the reporting units significantly exceeded their carrying values. The underlying assumptions used in the first step of our 2014 and 2013 impairment tests considered our market capitalization as of October 1, 2014 and 2013, respectively, as well as the solar industry and market conditions when determining the fair value of our reporting units. Intangible Assets Intangible assets primarily include those assets acquired as part of our GE and TetraSun acquisitions described in Note 5 “Business Acquisitions” and our internally-generated intangible assets, which represent 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 2015, $73.7 million of IPR&D from the GE acquisition was reclassified to developed technology and began amortizing over its useful life of 10 years , and $39.1 million of IPR&D from the TetraSun acquisition was also reclassified to developed technology and began amortizing over its useful life of 12 years . The following table summarizes our intangible assets at December 31, 2015 and 2014 (in thousands): December 31, 2015 Gross Amount Accumulated Amortization Net Amount Patents $ 6,070 $ (1,824 ) $ 4,246 Developed technology 114,565 (8,809 ) 105,756 Total $ 120,635 $ (10,633 ) $ 110,002 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 $9.2 million , $1.2 million , and $0.9 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Estimated future amortization expense for our intangible assets was as follows at December 31, 2015 (in thousands): Amortization Expense 2016 $ 11,787 2017 11,403 2018 11,161 2019 11,161 2020 11,161 Thereafter 53,329 Total amortization expense $ 110,002 |
Note 7. Cash, Cash Equivalents,
Note 7. Cash, Cash Equivalents, and Marketable Securities | 12 Months Ended |
Dec. 31, 2015 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Cash, Cash Equivalents, and Marketable Securities | 7. Cash, Cash Equivalents, and Marketable Securities Cash, cash equivalents, and marketable securities consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Cash and cash equivalents: Cash $ 1,126,496 $ 1,480,452 Cash equivalents: Money market funds 330 1,602 Total cash and cash equivalents 1,126,826 1,482,054 Marketable securities: Foreign debt 663,454 462,731 Time deposits 40,000 40,000 U.S. debt — 2,800 U.S. government obligations — 3,501 Total marketable securities 703,454 509,032 Total cash, cash equivalents, and marketable securities $ 1,830,280 $ 1,991,086 We classify our marketable securities as available-for-sale. Accordingly, we record them at fair value and account for the net unrealized gains and losses as part of “ Accumulated other comprehensive income ” until realized. We record realized gains and losses on the sale or maturity of our marketable securities in “ Other expense, net ” computed using the specific identification method. During the years ended December 31, 2015 , 2014 , and 2013 , we realized gains on the sale or maturity of our marketable securities of less than $0.1 million , $0.2 million , and less than $0.1 million , respectively. See Note 11 “Fair Value Measurements” to our consolidated financial statements for information about the fair value of our marketable securities. As of December 31, 2015 and 2014 , we identified two investments totaling $31.5 million and $41.1 million , respectively, that had been in a loss position for a period of time greater than 12 months with unrealized losses of less than $0.1 million . The unrealized losses were primarily due to increases in interest rates relative to rates at the time of purchase. Based on the underlying credit quality of the investments, we do not intend to sell these securities prior to the recovery of our cost basis. Therefore, we did not consider these securities to be other-than-temporarily impaired. All of our available-for-sale marketable securities are subject to a periodic impairment review. We did not identify any of our marketable securities as other-than-temporarily impaired as of December 31, 2015 and 2014 . The following tables summarize the unrealized gains and losses related to our available-for-sale marketable securities, by major security type, as of December 31, 2015 and 2014 (in thousands): As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Foreign debt $ 665,900 $ 9 $ 2,455 $ 663,454 Time deposits 40,000 — — 40,000 Total $ 705,900 $ 9 $ 2,455 $ 703,454 As of December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Foreign debt $ 463,466 $ 18 $ 753 $ 462,731 Time deposits 40,000 — — 40,000 U.S. debt 2,800 — — 2,800 U.S. government obligations 3,500 1 — 3,501 Total $ 509,766 $ 19 $ 753 $ 509,032 The contractual maturities of our marketable securities as of December 31, 2015 and 2014 were as follows (in thousands): As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value One year or less $ 290,377 $ 9 $ 406 $ 289,980 One year to two years 228,492 — 1,183 227,309 Two years to three years 187,031 — 866 186,165 Total $ 705,900 $ 9 $ 2,455 $ 703,454 As of December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value One year or less $ 329,974 $ 14 $ 174 $ 329,814 One year to two years 125,892 5 380 125,517 Two years to three years 53,900 — 199 53,701 Total $ 509,766 $ 19 $ 753 $ 509,032 The net unrealized losses of $2.4 million and $0.7 million as of December 31, 2015 and 2014 , respectively, on our marketable securities were primarily the result of increases in interest rates relative to rates at the time of purchase. Our investment policy requires marketable securities to be highly rated and limits the security types, issuer concentration, and duration to maturity of our marketable securities portfolio. The following tables show gross unrealized losses and estimated fair values for those marketable securities that were in an unrealized loss position as of December 31, 2015 and 2014 , aggregated by major security type and the length of time the marketable securities have been in a continuous loss position (in thousands): As of December 31, 2015 In Loss Position for Less Than 12 Months In Loss Position for 12 Months or Greater Total Security Type Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Foreign debt $ 629,033 $ 2,386 $ 31,491 $ 69 $ 660,524 $ 2,455 Total $ 629,033 $ 2,386 $ 31,491 $ 69 $ 660,524 $ 2,455 As of December 31, 2014 In Loss Position for Less Than 12 Months In Loss Position for 12 Months or Greater Total Security Type Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Foreign debt $ 391,840 $ 740 $ 41,060 $ 13 $ 432,900 $ 753 Total $ 391,840 $ 740 $ 41,060 $ 13 $ 432,900 $ 753 |
Note 8. Restricted Cash and Inv
Note 8. Restricted Cash and Investments | 12 Months Ended |
Dec. 31, 2015 | |
Restricted Cash and Investments [Abstract] | |
Restricted Cash and Investments Disclosure | 8. Restricted Cash and Investments Restricted cash and investments consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Restricted cash $ 7,764 $ 49,818 Restricted investments 326,114 357,235 Total restricted cash and investments (1) $ 333,878 $ 407,053 (1) There was an additional $72.5 million and $74.7 million of restricted cash included within prepaid expenses and other current assets at December 31, 2015 and 2014 , respectively. At December 31, 2015 and 2014 , our restricted cash consisted of deposits held by various banks to secure certain of our letters of credit and deposits designated for the construction of systems projects and payment of amounts related to project construction credit facilities. Restricted cash for our letters of credit is classified as current or noncurrent based on the maturity date of the corresponding letter of credit. See Note 16 “Commitments and Contingencies” to our consolidated financial statements for further discussion relating to letters of credit. Restricted cash for project construction and financing is classified as current or noncurrent based on the projected use of the restricted funds. At December 31, 2015 and 2014 , our restricted investments consisted of long-term marketable securities that were held in custodial accounts to fund the estimated future costs of collecting and recycling modules covered under our solar module collection and recycling program. We classify our restricted investments as available-for-sale. Accordingly, we record them at fair value and account for the net unrealized gains and losses as a part of “ Accumulated other comprehensive income ” until realized. We record realized gains and losses on the sale or maturity of our restricted investments in “ Other expense, net ” computed using the specific identification method. Restricted investments are classified as noncurrent as the underlying accrued solar module collection and recycling liability is also noncurrent in nature. As necessary, we fund any incremental amounts for our estimated collection and recycling obligations within 90 days of the end of each year. We determine the funding requirement, if any, based on estimated costs of collecting and recycling covered modules, estimated rates of return on our restricted investments, and an estimated solar module life of 25 years less amounts already funded in prior years. To ensure that these funds will be available in the future regardless of any potential adverse changes in our financial condition (even in the case of our own insolvency), we have established a trust under which estimated funds are put into custodial accounts with an established and reputable bank, for which First Solar, Inc. (“FSI”), First Solar Malaysia Sdn. Bhd. (“FS Malaysia”), and First Solar Manufacturing GmbH are grantors. Only the trustee can distribute funds from the custodial accounts, and these funds cannot be accessed for any purpose other than to cover qualified costs of module collection and recycling, either by us or a third party performing the required collection and recycling services. Investments in these custodial accounts must meet certain investment quality criteria comparable to highly rated government or agency bonds. We closely monitor our exposure to European markets and maintain holdings primarily consisting of German and French sovereign debt securities that are not currently at risk of default. As of December 31, 2015 , we do not expect to fund any incremental amounts during the first quarter of 2016 for our module collection and recycling program. The following tables summarize the unrealized gains and losses related to our restricted investments, by major security type, as of December 31, 2015 and 2014 (in thousands): As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Foreign government obligations $ 177,507 $ 75,670 $ — $ 253,177 U.S. government obligations 61,228 11,709 — 72,937 Total $ 238,735 $ 87,379 $ — $ 326,114 As of December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Foreign government obligations $ 189,455 $ 93,280 $ — $ 282,735 U.S. government obligations 58,510 15,990 — 74,500 Total $ 247,965 $ 109,270 $ — $ 357,235 As of December 31, 2015 , the contractual maturities of these restricted investments were between 12 years and 21 years . As of December 31, 2014 , the contractual maturities of these restricted investments were between 13 years and 22 years . |
Note 9. Consolidated Balance Sh
Note 9. Consolidated Balance Sheet Details | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Disclosures | 9. Consolidated Balance Sheet Details Accounts receivable trade, net Accounts receivable trade, net consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Accounts receivable trade, gross $ 500,631 $ 142,542 Allowance for doubtful accounts (2 ) (7,108 ) Accounts receivable trade, net $ 500,629 $ 135,434 At December 31, 2015 and 2014 , $21.5 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 December 31, 2015 and 2014 (in thousands): 2015 2014 Accounts receivable, unbilled $ 40,205 $ 41,868 Retainage 18,966 35,103 Accounts receivable, unbilled and retainage $ 59,171 $ 76,971 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 December 31, 2015 and 2014 (in thousands): 2015 2014 Raw materials $ 159,078 $ 157,468 Work in process 19,736 20,829 Finished goods 309,369 442,408 Inventories $ 488,183 $ 620,705 Inventories – current $ 380,424 $ 505,088 Inventories – noncurrent $ 107,759 $ 115,617 Balance of systems parts Balance of systems parts were $136.9 million and $125.1 million as of December 31, 2015 and 2014 , respectively, and represented mounting, 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. We carry these parts at the lower of cost or net realizable value, with such value being based primarily on recoverability through installation in a solar power system or recoverability through a sales agreement. Balance of systems parts do not include any solar modules that we manufacture. Prepaid expenses and other current assets Prepaid expenses and other current assets consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Prepaid expenses $ 74,990 $ 42,193 Derivative instruments 2,691 9,791 Restricted cash 72,526 74,695 Other current assets 98,770 75,472 Prepaid expenses and other current assets $ 248,977 $ 202,151 Property, plant and equipment, net Property, plant and equipment, net consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Land $ 12,063 $ 12,378 Buildings and improvements (1) 410,898 397,087 Machinery and equipment (1) 1,824,717 1,649,363 Office equipment and furniture 144,773 134,268 Leasehold improvements 50,546 50,096 Construction in progress 37,734 154,497 Stored assets (2) 138,954 155,389 Property, plant and equipment, gross 2,619,685 2,553,078 Less: accumulated depreciation (1,335,549 ) (1,133,090 ) Property, plant and equipment, net $ 1,284,136 $ 1,419,988 (1) In 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 year ended December 31, 2015 , we transferred $16.4 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 $245.7 million , $245.0 million , and $237.9 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. PV solar power systems, net PV solar power systems, net consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 PV solar power systems, gross $ 97,991 $ 47,727 Accumulated depreciation (4,250 ) (1,334 ) PV solar power systems, net $ 93,741 $ 46,393 During 2015, we placed $52.2 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 $2.9 million , $1.4 million , and zero for the years ended December 31, 2015 , 2014 , and 2013 , 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 years ended December 31, 2015 , 2014 , and 2013 (in thousands): 2015 2014 2013 Interest cost incurred $ (19,367 ) $ (10,828 ) $ (11,703 ) Interest cost capitalized – property, plant and equipment 1,335 2,324 2,608 Interest cost capitalized – project assets 11,057 6,522 7,211 Interest expense, net $ (6,975 ) $ (1,982 ) $ (1,884 ) Project assets and deferred project costs Project assets and deferred project costs consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Project assets – development costs, including project acquisition and land costs 436,375 379,373 Project assets – construction costs 674,762 408,402 Project assets 1,111,137 787,775 Deferred project costs – current 187,940 29,354 Deferred project costs – noncurrent — 22,573 Deferred project costs 187,940 51,927 Total project assets and deferred project costs $ 1,299,077 $ 839,702 Other assets Other assets consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Notes receivable (1) $ 12,648 $ 12,096 Income taxes receivable 4,071 4,850 Deferred rent 23,317 23,823 Other 29,686 20,901 Other assets $ 69,722 $ 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 December 31, 2015 and 2014 , the balance on the credit facility was €7.0 million ( $7.6 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 December 31, 2015 and 2014 , the balance outstanding on the convertible loan was $5.0 million and $3.5 million respectively. Accrued expenses Accrued expenses consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Accrued compensation and benefits $ 63,699 $ 43,072 Accrued property, plant and equipment 7,808 30,723 Accrued inventory and balance of systems parts 53,542 36,233 Accrued project assets and deferred project costs 145,695 113,012 Product warranty liability (1) 38,468 69,656 Accrued expenses in excess of normal product warranty liability and related expenses (1) 5,040 7,800 Other 95,200 87,660 Accrued expenses $ 409,452 $ 388,156 (1) See Note 16 “Commitments and Contingencies” to our 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 $87.9 million and $195.3 million at December 31, 2015 and 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 $28.6 million and $60.6 million at December 31, 2015 and 2014 , respectively, 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 associated solar power project costs are included within 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 December 31, 2015 and 2014 (in thousands): 2015 2014 Deferred revenue $ 17,957 $ 21,879 Derivative instruments 16,450 7,657 Contingent consideration (1) 9,233 36,817 Financing liability (2) 5,277 — Other 8,821 22,311 Other current liabilities $ 57,738 $ 88,664 (1) See Note 16 “Commitments and Contingencies” to our consolidated financial statements for further discussion. (2) See Note 12 “Investments in Unconsolidated Affiliates and Joint Ventures” to our 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 December 31, 2015 and 2014 (in thousands): 2015 2014 Product warranty liability (1) $ 193,283 $ 153,401 Other taxes payable 66,549 82,555 Contingent consideration (1) 8,756 17,077 Liability in excess of normal product warranty liability and related expenses (1) 19,565 23,139 Financing liability (2) 36,706 — Other 67,453 44,412 Other liabilities $ 392,312 $ 320,584 (1) See Note 16 “Commitments and Contingencies” to our 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 12 “Investments in Unconsolidated Affiliates and Joint Ventures” to our consolidated financial statements for further discussion of the financing liabilities associated with our leaseback of the Maryland Solar project. |
Note 10. Derivative Financial I
Note 10. Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments [Text Block] | 10. Derivative Financial Instruments As a global company, we are exposed in the normal course of business to interest rate and foreign currency risks that could affect our consolidated net assets, financial position, results of operations, and cash flows. We use derivative instruments to hedge against these risks and only hold such instruments for hedging purposes, not for speculative or trading purposes. Depending on the terms of the specific derivative instruments and market conditions, some of our derivative instruments may be assets and others liabilities at any particular balance sheet date. We report all of our derivative instruments at fair value and account for changes in the fair value of derivative instruments within “ Accumulated other comprehensive income ” if the derivative instruments qualify for hedge accounting. For those derivative instruments that do not qualify for hedge accounting (“economic hedges”), we record the changes in fair value directly to earnings. See Note 11 “Fair Value Measurements” to our consolidated financial statements for information about the techniques we use to measure the fair value of our derivative instruments. The following tables present the fair values of derivative instruments included in our consolidated balance sheets as of December 31, 2015 and 2014 (in thousands): December 31, 2015 Prepaid Expenses and Other Current Assets Other Current Liabilities Other Liabilities Derivatives designated as hedging instruments: Foreign exchange forward contracts $ — $ 132 $ 285 Cross-currency swap contract — 6,909 13,835 Interest rate swap contract — 16 — Total derivatives designated as hedging instruments $ — $ 7,057 $ 14,120 Derivatives not designated as hedging instruments: Foreign exchange forward contracts $ 2,691 $ 9,393 $ — Total derivatives not designated as hedging instruments $ 2,691 $ 9,393 $ — Total derivative instruments $ 2,691 $ 16,450 $ 14,120 December 31, 2014 Prepaid Expenses and Other Current Assets Other Current Liabilities Other Liabilities Derivatives designated as hedging instruments: Foreign exchange forward contracts $ 1,213 $ — $ — Cross-currency swap contract — 2,996 8,995 Interest rate swap contract — 164 46 Total derivatives designated as hedging instruments $ 1,213 $ 3,160 $ 9,041 Derivatives not designated as hedging instruments: Foreign exchange forward contracts $ 8,578 $ 4,497 $ — Total derivatives not designated as hedging instruments $ 8,578 $ 4,497 $ — Total derivative instruments $ 9,791 $ 7,657 $ 9,041 The impact of offsetting balances associated with derivative instruments designated as hedging instruments is shown below (in thousands): December 31, 2015 Gross Amounts Not Offset in Consolidated Balance Sheet Gross Asset (Liability) Gross Offset in Consolidated Balance Sheet Net Amount Recognized in Financial Statements Financial Instruments Cash Collateral Pledged Net Amount Foreign exchange forward contracts $ (417 ) — (417 ) — — $ (417 ) Cross-currency swap contract $ (20,744 ) — (20,744 ) — — $ (20,744 ) Interest rate swap contract $ (16 ) — (16 ) — — $ (16 ) December 31, 2014 Gross Amounts Not Offset in Consolidated Balance Sheet Gross Asset (Liability) Gross Offset in Consolidated Balance Sheet Net Amount Recognized in Financial Statements Financial Instruments Cash Collateral Pledged Net Amount Foreign exchange forward contracts $ 1,213 — 1,213 — — $ 1,213 Cross-currency swap contract $ (11,991 ) — (11,991 ) — — $ (11,991 ) Interest rate swap contract $ (210 ) — (210 ) — — $ (210 ) The following table presents the effective amounts related to derivative instruments designated as cash flow hedges affecting accumulated other comprehensive income (loss) and our consolidated statements of operations for the years ended December 31, 2015 , 2014 , and 2013 (in thousands): Foreign Exchange Forward Contracts Interest Rate Swap Contract Cross Currency Swap Contract Total Balance in accumulated other comprehensive income (loss) at December 31, 2012 $ 8,980 $ (1,467 ) $ (8,031 ) $ (518 ) Amounts recognized in other comprehensive income (loss) 8,486 (30 ) (6,666 ) 1,790 Amounts reclassified to net sales as a result of forecasted transactions being probable of not occurring (13,115 ) — — (13,115 ) Amounts reclassified to earnings impacting: Foreign currency (loss) gain, net — — 8,426 8,426 Interest expense, net — 794 451 1,245 Balance in accumulated other comprehensive income (loss) at December 31, 2013 4,351 (703 ) (5,820 ) (2,172 ) Amounts recognized in other comprehensive income (loss) 1,769 12 (2,846 ) (1,065 ) Amounts reclassified to earnings impacting: Cost of sales 501 — — 501 Foreign currency (loss) gain, net — — 5,050 5,050 Interest expense, net — 481 217 698 Balance in accumulated other comprehensive income (loss) at December 31, 2014 6,621 (210 ) (3,399 ) 3,012 Amounts reclassified to net sales as a result of forecasted transactions being probable of not occurring (1,295 ) — — (1,295 ) Amounts recognized in other comprehensive income (loss) 832 23 (9,219 ) (8,364 ) Amounts reclassified to earnings impacting: Net sales (487 ) — — (487 ) Cost of sales (5,509 ) — — (5,509 ) Foreign currency (loss) gain, net — — 10,135 10,135 Interest expense, net — 171 466 637 Balance in accumulated other comprehensive income (loss) at December 31, 2015 $ 162 $ (16 ) $ (2,017 ) $ (1,871 ) We recorded no amounts related to ineffective portions of our derivative instruments designated as cash flow hedges during the years ended December 31, 2015 , 2014 , and 2013 . We recognized unrealized losses of $0.1 million , unrealized gains of $1.8 million , and unrealized losses of $2.1 million related to amounts excluded from effectiveness testing for our foreign exchange forward contracts designated as cash flow hedges within “ Other expense, net ” during the years ended December 31, 2015 , 2014 , and 2013 , respectively. The following table presents amounts related to derivative instruments not designated as hedges affecting our consolidated statements of operations for the years ended December 31, 2015 , 2014 , and 2013 (in thousands): Amount of Gain (Loss) Recognized in Income Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income 2015 2014 2013 Foreign exchange forward contracts Foreign currency (loss) gain, net $ (3,425 ) $ (8,066 ) $ 6,063 Foreign exchange forward contracts Cost of sales 12,422 13,240 (3,760 ) Foreign exchange forward contracts Net sales — — 5,324 Interest Rate Risk We use cross-currency swap and interest rate swap contracts to mitigate our exposure to interest rate fluctuations associated with certain of our debt instruments. We do not use such swap contracts for speculative or trading purposes. On September 30, 2011, we entered into a cross-currency swap contract to hedge the floating rate foreign currency denominated loan under our Malaysian Ringgit Facility Agreement. This swap had an initial notional value of Malaysian Ringgit (“MYR”) MYR 465.0 million and entitled us to receive a three-month floating Kuala Lumpur Interbank Offered Rate (“KLIBOR”) interest rate while requiring us to pay a U.S. dollar fixed rate of 3.495% . Additionally, this swap hedges the foreign currency risk of the Malaysian Ringgit denominated principal and interest payments as we make swap payments in U.S. dollars and receive swap payments in Malaysian Ringgits at a fixed exchange rate of 3.19 MYR to USD. The notional amount of the swap is scheduled to decline in line with our scheduled principal payments on the underlying hedged debt. As of December 31, 2015 and 2014 , the notional value of this cross-currency swap contract was MYR 232.6 million ( $54.2 million ) and MYR 310.1 million ( $88.6 million ), respectively. This swap is a derivative instrument that qualifies for accounting as a cash flow hedge in accordance with ASC 815, and we designated it as such. We determined that this swap was highly effective as a cash flow hedge at December 31, 2015 and 2014 . For the years ended December 31, 2015 and 2014 , there were no amounts of ineffectiveness from this cash flow hedge. On May 29, 2009, we entered into an interest rate swap contract to hedge a portion of the floating rate loans under our Malaysian Credit Facility, which became effective on September 30, 2009 with an initial notional value of €57.3 million and pursuant to which we are entitled to receive a six-month floating Euro Interbank Offered Rate (“EURIBOR”) interest rate while being required to pay a fixed rate of 2.80% . The notional amount of the interest rate swap contract is scheduled to decline in line with our scheduled principal payments on the underlying hedged debt. As of December 31, 2015 and 2014 , the notional value of this interest rate swap contract was €2.2 million ( $2.4 million ) and €10.3 million ( $12.5 million ), respectively. This derivative instrument qualifies for accounting as a cash flow hedge in accordance with ASC 815, and we designated it as such. We determined that our interest rate swap contract was highly effective as a cash flow hedge at December 31, 2015 and 2014 . For the years ended December 31, 2015 , 2014 , and 2013 , there were no amounts of ineffectiveness from this cash flow hedge. In the following 12 months, we expect to reclassify to earnings $0.7 million of net unrealized losses related to swap contracts that are included in “ Accumulated other comprehensive income ” at December 31, 2015 as we realize the earnings effect of the underlying loans. The amount we ultimately record to earnings will depend on the actual interest rates and foreign exchange rates when we realize the earnings effect of the underlying loans. Foreign Currency Exchange Risk Cash Flow Exposure We expect of our subsidiaries to have material future cash flows that will be denominated in currencies other than the subsidiaries’ functional currencies. Changes in the exchange rates between the functional currencies of our subsidiaries and the other currencies in which they transact will cause fluctuations in the cash flows we expect to receive or pay when these cash flows are realized or settled. Accordingly, we enter into foreign exchange forward contracts to hedge a portion of these forecasted cash flows. As of December 31, 2015 and 2014 , these foreign exchange forward contracts hedged our forecasted cash flows for 33 months and 6 months , respectively. These foreign exchange forward contracts qualify for accounting as cash flow hedges in accordance with ASC 815, and we designated them as such. We initially report the effective portion of a derivative’s unrealized gain or loss in “ Accumulated other comprehensive income ” and subsequently reclassify amounts into earnings when the hedged transaction occurs and impacts earnings. We determined that these derivative financial instruments were highly effective as cash flow hedges at December 31, 2015 and 2014 . During the years ended December 31, 2015 , 2014 , and 2013 , we did not discontinue any cash flow hedges because a hedging relationship was no longer highly effective. As of December 31, 2015 and 2014 , the notional values associated with our foreign exchange forward contracts qualifying as cash flow hedges were as follows (notional amounts and U.S. dollar equivalents in millions): December 31, 2015 Currency Notional Amount USD Equivalent Indian rupee INR1,290.0 $19.4 December 31, 2014 Currency Notional Amount USD Equivalent Australian dollar AUD 38.4 $31.5 Japanese yen JPY1,223.2 $10.3 As of December 31, 2015 and 2014 , the unrealized gains on these contracts were $0.2 million and $6.6 million , respectively. In the following 12 months, we expect to reclassify to earnings $0.1 million of net unrealized gains related to these forward contracts that are included in “ Accumulated other comprehensive income ” at December 31, 2015 as we realize the earnings effect of the related forecasted transactions. The amount we ultimately record to earnings will depend on the actual exchange rates when we realize the related forecasted transactions. Transaction Exposure and Economic Hedging Many of our subsidiaries have assets and liabilities (primarily cash, receivables, marketable securities, payables, debt, and solar module collection and recycling liabilities) that are denominated in currencies other than the subsidiaries’ functional currencies. Changes in the exchange rates between the functional currencies of our subsidiaries and the other currencies in which these assets and liabilities are denominated will create fluctuations in our reported consolidated statements of operations and cash flows. We may enter into foreign exchange forward contracts or other financial instruments to economically hedge assets and liabilities against the effects of currency exchange rate fluctuations. The gains and losses on such foreign exchange forward contracts will economically offset all or part of the transaction gains and losses that we recognize in earnings on the related foreign currency denominated assets and liabilities. We purchase foreign exchange forward contracts to economically hedge balance sheet and other exposures related to transactions between certain of our subsidiaries and transactions with third parties. Such contracts are considered economic hedges and do not qualify for hedge accounting. We recognize gains or losses from the fluctuation in foreign exchange rates and the fair value of these derivative contracts in “Net sales,” “Cost of sales,” and “ Foreign currency (loss) gain, net ” on our consolidated statements of operations, depending on where the gain or loss from the economically hedged item is classified. As of December 31, 2015 , the total net unrealized loss on our economic hedge foreign exchange forward contracts was $6.7 million . As of December 31, 2014 , the total net unrealized gain on our economic hedge foreign exchange forward contracts was $4.1 million . As these amounts do not qualify for hedge accounting, changes in the fair value of such derivative instruments are recorded directly to earnings. These contracts mature at dates within the next two years . As of December 31, 2015 and 2014 , the notional values of our foreign exchange forward contracts that do not qualify for hedge accounting were as follows (notional amounts and U.S. dollar equivalents in millions): December 31, 2015 Transaction Currency Notional Amount USD Equivalent Purchase Euro €42.0 $45.9 Sell Euro €150.1 $164.0 Purchase Australian dollar AUD 41.1 $29.9 Sell Australian dollar AUD 89.0 $64.8 Purchase Malaysian ringgit MYR 61.4 $14.3 Sell Malaysian ringgit MYR 80.7 $18.8 Sell Canadian dollar CAD 4.5 $3.2 Sell Japanese yen JPY 8,448.7 $70.1 Purchase British pound GBP 11.1 $16.5 Sell British pound GBP 16.0 $23.7 Sell Indian rupee INR 8,939.0 $134.6 Purchase South African rand ZAR 41.1 $2.7 Sell South African rand ZAR 81.5 $5.3 December 31, 2014 Transaction Currency Notional Amount USD Equivalent Purchase Euro €91.1 $110.9 Sell Euro €92.4 $112.5 Purchase Australian dollar AUD 26.0 $21.3 Sell Australian dollar AUD 118.0 $96.7 Purchase Malaysian ringgit MYR 146.0 $41.7 Sell Malaysian ringgit MYR 93.6 $26.7 Purchase Canadian dollar CAD 0.7 $0.6 Sell Canadian dollar CAD 8.3 $7.1 Purchase Japanese yen JPY 244.6 $2.1 Sell Japanese yen JPY 2,322.1 $19.5 Purchase British pound GBP 1.4 $2.2 Sell British pound GBP 37.7 $58.6 |
Note 11. Fair Value Measurement
Note 11. Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements Disclosure | 11. Fair Value Measurements The following is a description of the valuation techniques that we use to measure the fair value of assets and liabilities that we measure and report at fair value on a recurring basis: • Cash equivalents. At December 31, 2015 and 2014 , our cash equivalents consisted of money market funds. We value our money market cash equivalents using observable inputs that reflect quoted prices for securities with identical characteristics, and accordingly, we classify the valuation techniques that use these inputs as Level 1. • Marketable securities and restricted investments. At December 31, 2015 , our marketable securities consisted of foreign debt and time deposits, and our restricted investments consisted of foreign and U.S. government obligations. At December 31, 2014 , our marketable securities consisted of foreign debt, time deposits, U.S. debt, and U.S. government obligations, and our restricted investments consisted of foreign and U.S. government obligations. We value our marketable securities and restricted investments using observable inputs that reflect quoted prices for securities with identical characteristics or quoted prices for securities with similar characteristics and other observable inputs (such as interest rates that are observable at commonly quoted intervals). Accordingly, we classify the valuation techniques that use these inputs as either Level 1 or Level 2 depending on the inputs used. We also consider the effect of our counterparties’ credit standings in these fair value measurements. • Derivative assets and liabilities . At December 31, 2015 and 2014 , our derivative assets and liabilities consisted of foreign exchange forward contracts involving major currencies, an interest rate swap contract involving a benchmark of interest rates, and a cross-currency swap contract including both. Since our derivative assets and liabilities are not traded on an exchange, we value them using standard industry valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, credit risk, foreign exchange rates, and forward and spot prices for currencies. These inputs are observable in active markets over the contract term of the derivative instruments we hold, and accordingly, we classify these valuation techniques as Level 2. We consider the effect of our counterparties’ and our own credit standing in the fair value measurements of our derivative assets and liabilities, respectively. At December 31, 2015 and 2014 , the fair value measurements of our assets and liabilities that we measure on a recurring basis were as follows (in thousands): December 31, 2015 Fair Value Measurements at Reporting Date Using Total Fair Value and Carrying Value on Our Balance Sheet Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 330 $ 330 $ — $ — Marketable securities: Foreign debt 663,454 — 663,454 — Time deposits 40,000 40,000 — — Restricted investments 326,114 — 326,114 — Derivative assets 2,691 — 2,691 — Total assets $ 1,032,589 $ 40,330 $ 992,259 $ — Liabilities: Derivative liabilities $ 30,570 $ — $ 30,570 $ — December 31, 2014 Fair Value Measurements at Reporting Date Using Total Fair Value and Carrying Value on Our Balance Sheet Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 1,602 $ 1,602 $ — $ — Marketable securities: Foreign debt 462,731 — 462,731 — Time deposits 40,000 40,000 — — U.S debt 2,800 — 2,800 — U.S. government obligations 3,501 — 3,501 — Restricted investments 357,235 — 357,235 — Derivative assets 9,791 — 9,791 — Total assets $ 877,660 $ 41,602 $ 836,058 $ — Liabilities: Derivative liabilities $ 16,698 $ — $ 16,698 $ — Fair Value of Financial Instruments The carrying values and fair values of our financial and derivative instruments at December 31, 2015 and 2014 were as follows (in thousands): December 31, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value Assets: Marketable securities $ 703,454 $ 703,454 $ 509,032 $ 509,032 Foreign exchange forward contract assets 2,691 2,691 9,791 9,791 Restricted investments 326,114 326,114 357,235 357,235 Notes receivable – noncurrent 12,648 18,382 12,096 12,189 Notes receivable, affiliates – noncurrent 17,887 19,932 9,127 9,812 Liabilities: Long-term debt, including current maturities $ 288,350 $ 294,449 $ 211,915 $ 224,489 Interest rate swap contract liabilities 16 16 210 210 Cross-currency swap contract liabilities 20,744 20,744 11,991 11,991 Foreign exchange forward contract liabilities 9,810 9,810 4,497 4,497 The carrying values on our consolidated balance sheets of our cash and cash equivalents, trade accounts receivable, unbilled accounts receivable and retainage, current affiliate notes receivable, other assets, restricted cash, accounts payable, income taxes payable, and accrued expenses approximated their fair values due to their nature and relatively short maturities; therefore, we excluded them from the foregoing table. We estimated the fair value of our long-term debt and notes receivable using a discounted cash flow approach (an income approach) or a market approach based on observable market inputs. We incorporated the credit risk of our counterparty for all asset fair value measurements and our own credit risk for all liability fair value measurements. Such fair value measurements are considered Level 2 under the fair value hierarchy. Credit Risk We have certain financial and derivative instruments that subject us to credit risk. These consist primarily of cash, cash equivalents, marketable securities, restricted cash and investments, trade accounts receivable, notes receivable, interest rate swap and cross-currency swap contracts, and foreign exchange forward contracts. We are exposed to credit losses in the event of nonperformance by the counterparties to our financial and derivative instruments. We place cash, cash equivalents, marketable securities, restricted cash and investments, interest rate swap and cross-currency swap contracts, and foreign exchange forward contracts with various high-quality financial institutions and limit the amount of credit risk from any one counterparty. We continuously evaluate the credit standing of our counterparty financial institutions. Our net sales are primarily concentrated among a limited number of customers. We monitor the financial condition of our customers and perform credit evaluations whenever considered necessary. Depending upon the sales arrangement, we may require some form of payment security from our customers, including bank guarantees or commercial letters of credit. |
Note 12. Investments in Unconso
Note 12. Investments in Unconsolidated Affiliates and Joint Ventures (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Cost and Equity Method Investments Disclosure [Text Block] | 12. Investments in Unconsolidated Affiliates and Joint Ventures We have joint ventures or other strategic arrangements with partners in several markets, which are generally used to expedite our penetration of those markets and establish relationships with potential customers. We also enter into joint ventures or strategic arrangements with customers or other entities to maximize the value of particular projects. Some of these arrangements involve and are expected in the future to involve significant investments or other allocations of capital. Investments in unconsolidated entities for which we have significant influence, but not control, over the entities’ operating and financial activities are accounted for under the equity method of accounting. Investments in entities for which we do not have the ability to exert such significant influence are accounted for under the cost method of accounting. The following table summarizes our equity and cost method investments as of December 31, 2015 and 2014 (in thousands): 2015 2014 Equity method investments $ 375,355 $ 249,614 Cost method investments 24,450 5,415 Investments in unconsolidated affiliates and joint ventures $ 399,805 $ 255,029 8point3 Energy Partners LP In June 2015, 8point3 Energy Partners LP (the “Partnership”), a limited partnership formed by First Solar and SunPower Corporation (the “Sponsors”), completed its initial public offering (the “IPO”) of 20,000,000 Class A shares representing limited partner interests in the Partnership at $21.00 per share pursuant to a Registration Statement on Form S-1, as amended. As part of the IPO, the Sponsors contributed various projects to 8point3 Operating Company, LLC (“OpCo”) in exchange for voting and economic interests in the entity, and the Partnership acquired an economic interest in OpCo using proceeds from the IPO. Our contributions to OpCo included our 49% membership interests in SG2 Holdings, LLC; Lost Hills Blackwell Holdings, LLC; and NS Solar Holdings, LLC as well as our 100% membership interest in Maryland Solar LLC. After the closing of the IPO, we owned an aggregate of 22,116,925 Class B shares representing a 31% voting interest in the Partnership, and an aggregate of 6,721,810 common units and 15,395,115 subordinated units in OpCo together representing a 31% economic and voting interest in the entity. We also received a distribution from OpCo of $283.7 million following the IPO. Future quarterly distributions from OpCo are subject to certain forbearance and subordination periods. During the forbearance period, the Sponsors have agreed to forego any distributions declared on their common and subordinated units. The forbearance period will end on or after March 1, 2016 when the board of directors of the Partnership’s general partner, 8point3 General Partner, LLC (“General Partner”), with the concurrence of its conflicts committee, determines that OpCo will be able to earn and pay at least the minimum quarterly distribution on each of its outstanding common and subordinated units for such quarter and the successive quarter. During the subordination period, holders of the subordinated units are not entitled to receive any distributions until the common units have received their minimum quarterly distribution plus any arrearages in the payment of minimum distributions from prior quarters. The subordination period will end after OpCo has earned and paid minimum quarterly distributions for three years ending on or after August 31, 2018 and there are no outstanding arrearages on common units. Notwithstanding the foregoing, the subordination period could end after OpCo has earned and paid 150% of minimum quarterly distributions, plus the related distribution on the incentive distribution rights, for one year ending on or after August 31, 2016 and there are no outstanding arrearages on common units. At the end of the subordination period, all subordinated units will convert to common units on a one-for-one basis. We also hold certain incentive distribution rights in OpCo, which represent a right to incremental distributions after certain distribution thresholds are met. The Partnership is managed and controlled by its General Partner, and we account for our interest in OpCo, a subsidiary of the Partnership, under the equity method of accounting as we are able to exercise significant influence over the Partnership due to our representation on the board of directors of its General Partner. The Partnership owns, operates, and is expected to acquire additional solar energy generation projects from the Sponsors. The Partnership’s initial project portfolio includes interests in more than 0.4 GW of various solar energy generation projects, and the Partnership also has rights of first offer on interests in over 1.1 GW of additional solar energy generation projects that are currently contracted or are expected to be contracted prior to being sold by the Sponsors. Under the equity method of accounting, we recognize equity in earnings for our proportionate share of OpCo’s net income or loss including adjustments for the amortization of a $45.5 million basis difference resulting from the cost of our investment differing from our proportionate share of OpCo’s equity. We recognized equity in earnings, net of tax, from our investment in OpCo of $20.8 million for the year ended December 31, 2015 . As of December 31, 2015 , the carrying value of our investment in OpCo was $152.5 million . In connection with the IPO, we entered into an agreement with a subsidiary of the Partnership to lease back the Maryland Solar project until December 31, 2019. Under the terms of the agreement, we will make fixed rent payments to the Partnership’s subsidiary and be entitled to all the energy generated by the project. Due to our continuing involvement with the project, we account for the leaseback agreement as a financing transaction. As of December 31, 2015 , our financing obligation associated with the leaseback was $42.0 million , of which $5.3 million and $36.7 million was classified as “Other current liabilities” and “Other liabilities,” respectively, in the accompanying consolidated balance sheets. We have also entered into a Management Services Agreement with the Partnership whereby we will provide certain corporate support services for an annual management fee of $0.6 million , which is consistent with the prevailing market rates for such services. These services include functions such as general oversight and supervision of the preparation and filing of income taxes, information technology, internal audit and compliance services, and other management functions. Between December 1, 2015 and November 30, 2016, we have the one-time right to increase the management fee by an amount not to exceed 15% in the event that our costs exceed the amount of the management fee. Additionally, we entered into various Asset Management Agreements with project entities of the Partnership. Under each agreement, we will provide administrative services to the project entities for an annual fee of $0.3 million , which increases by 2% per year thereafter. These asset management fees are also consistent with the prevailing market rates for such services. We also provide O&M services to certain of the Partnership’s partially owned project entities, including SG2 Holdings, LLC; Lost Hills Blackwell Holdings, LLC; and NS Solar Holdings, LLC. During the year ended December 31, 2015 , we recognized revenue of $2.6 million for such O&M services. In June 2015, OpCo entered into a $525.0 million senior secured credit facility, consisting of a $300.0 million term loan facility, a $25.0 million delayed draw term loan facility, and a $200.0 million revolving credit facility (the “OpCo Credit Facility”). Proceeds from the term loan were used to make initial distributions to the Sponsors. The OpCo Credit Facility is secured by a pledge of the Sponsors’ equity interests in OpCo. SG2 Holdings, LLC In November 2014, we completed the sale of 51% of our 150 MW Solar Gen 2 project to a subsidiary of Southern Power Company. The Solar Gen 2 project spans three sites, each of which is an approximately 50 MW grid-connected PV solar power system, comprising a combined 1,451 acres of land in Imperial County, California. Electricity generated by the systems is contracted to serve a 25 -year PPA with a local utility company. Our remaining 49% membership interest in the project holding company, SG2 Holdings, LLC, was accounted for under the equity method of accounting as we were able to exercise significant influence over the project due to our representation on its management committee. Under the terms of the project LLC agreement, each member is entitled to receive cash distributions based on their respective membership interests, and Southern Power Company is entitled to substantially all of the project’s federal tax benefits. In June 2015, our 49% interest in SG2 Holdings, LLC with a carrying value of $224.5 million was contributed to OpCo. Prior to the contribution, we recognized equity in earnings, net of tax, from our investment in SG2 Holdings, LLC of $2.1 million for the six months ended June 30, 2015. As of December 31, 2014 , the carrying value of our investment was $219.9 million . Lost Hills Blackwell Holdings, LLC In April 2015, we sold 51% of our 32 MW Lost Hills Blackwell project to a subsidiary of Southern Power Company. Electricity generated by the system is contracted to serve a short-term PPA with a local municipality and a 25 -year PPA with a local utility company. Our remaining 49% membership interest in the project holding company, Lost Hills Blackwell Holdings, LLC, was accounted for under the equity method of accounting as we were able to exercise significant influence over the project due to our representation on its management committee. Under the terms of the project LLC agreement, each member is entitled to receive cash distributions based on their respective membership interests, and Southern Power Company is entitled to substantially all of the project’s federal tax benefits. In June 2015, our 49% interest in Lost Hills Blackwell Holdings, LLC with a carrying value of $34.1 million was contributed to OpCo. Prior to the contribution, we recognized equity in earnings, net of tax, from our investment in Lost Hills Blackwell Holdings, LLC of $0.2 million for the six months ended June 30, 2015. NS Solar Holdings, LLC In April 2015, we also sold 51% of our 60 MW North Star Solar project to a subsidiary of Southern Power Company. Electricity generated by the system is contracted to serve a 20 -year PPA with a local utility company. Our remaining 49% membership interest in the project holding company, NS Solar Holdings, LLC, was accounted for under the equity method of accounting as we were able to exercise significant influence over the project due to our representation on its management committee. Under the terms of the project LLC agreement, each member is entitled to receive cash distributions based on their respective membership interests, and Southern Power Company is entitled to substantially all of the project’s federal tax benefits. In June 2015, our 49% interest in NS Solar Holdings, LLC with a carrying value of $93.6 million was contributed to OpCo. Prior to the contribution, we recognized a loss, net of tax, from our investment in NS Solar Holdings, LLC of less than $0.1 million for the six months ended June 30, 2015. Desert Stateline Holdings, LLC In August 2015, we sold 51% of our partially constructed 300 MW Desert Stateline project to a subsidiary of Southern Power Company. Electricity generated by the system is contracted to serve a 20 -year PPA with a local utility company. Our remaining 49% membership interest in the project holding company, Desert Stateline Holdings, LLC, is accounted for under the equity method of accounting as we are able to exercise significant influence over the project due to our representation on its management committee. Under the terms of the project LLC agreement, each member is entitled to receive cash distributions based on their respective membership interests, and Southern Power Company is entitled to substantially all of the project’s federal tax benefits. During the year ended December 31, 2015 , we recognized no equity in earnings from our investment in Desert Stateline Holdings, LLC. As of December 31, 2015 , the carrying value of our investment was $196.9 million . Clean Energy Collective, LLC In November 2014, we entered into various agreements to purchase a minority ownership interest in Clean Energy Collective, LLC (“CEC”). This investment provided us with additional access to the distributed generation market and a partner to develop and market community solar offerings to North American residential customers and businesses directly on behalf of client utility companies. As part of the investment, we also received a warrant, valued at $1.8 million , to purchase additional ownership interests at prices at or above our initial investment price per unit. In addition to our equity investment in CEC, we also entered into a loan agreement to provide CEC with term loan advances up to $15.0 million . All loans are due in November 2017 on the third anniversary of the initial loan agreement. Interest is payable semiannually at rates ranging from 7% to 16% depending on CEC’s current capital structure. As of December 31, 2015 and 2014 , the balance outstanding on the loans was $15.0 million and $9.1 million , respectively. CEC is considered a variable interest entity, and our 27% ownership interest in and loans to the company are considered variable interests. We account for our investment in CEC under the equity method of accounting as we concluded we are not the primary beneficiary of the company given that we do not have the power to make decisions over the activities that most significantly impact the company’s economic performance. Under the equity method of accounting, we recognize equity in earnings for our proportionate share of CEC’s net income or loss including adjustments for the amortization of a basis difference resulting from the cost of our investment differing from our proportionate share of CEC’s equity. During the years ended December 31, 2015 and 2014 , we recognized losses, net of tax, of $1.9 million and $0.3 million , respectively, from our investment in CEC. As of December 31, 2015 and 2014 , the carrying value of our investment was $16.1 million and $19.5 million , respectively. Joint Venture with Customer In September 2013, we contributed an immaterial amount for a 50% ownership interest in a newly formed joint venture, which was established to develop solar power projects in Europe, North Africa, the United States, and the Middle East. One of our customers also contributed an immaterial amount for the remaining 50% ownership interest in the joint venture. The project development and related activities of the entity are governed by a joint venture agreement. The intent of this agreement is to outline the general parameters of the arrangement with our customer, whereby we will supply solar modules for various solar power projects and our customer will develop and construct the projects. The joint venture agreement also requires each party to consent to all decisions related to the most significant activities of the entity. There are no requirements for us to make further contributions to the joint venture, and the proceeds from the sale of any future projects are to be divided equally between us and our customer after the repayment of any project financing and project development related costs. In 2014 and 2015, we subsequently entered into various loan agreements with solar power project entities of the joint venture pursuant to which the project entities may borrow funds for the construction of PV solar power systems in the United Kingdom. The loans bear interest at rates ranging from 6% to 8% per annum and are payable at the earlier of the sale of the associated project entities or maturity in June 2016 or December 2018, depending on the terms of the individual loan. As of December 31, 2015 and 2014 , the balance outstanding on the loans was £2.8 million ( $4.2 million ) and £8.0 million ( $12.5 million ), respectively. The joint venture is considered a variable interest entity, and our ownership interest in and loans to the project entities of the joint venture are considered variable interests. We account for our investment in the joint venture under the equity method of accounting as we concluded we are not the primary beneficiary of the joint venture given that we currently share the power to make the decisions that most significantly impact the entity’s economic performance. The variable interest model may require a reconsideration as to whether we are the primary beneficiary of the variable interest entity due to changes in facts and circumstances. A failure of a project entity to repay its loan agreements by their respective maturity dates would be an event of default, if uncured, that triggers our ability to take over key decisions that would significantly impact the defaulting project entity’s economic performance. Our specific rights in the event of default would include (i) a unilateral right to terminate the EPC contractor, (ii) a unilateral right to negotiate the sale of the project, and (iii) an ability to enforce our rights over all of the project entity’s shares, which have been pledged as a form of security. Such a development would be a reconsideration event that could result in us concluding that we are the primary beneficiary of the defaulting project entity. Summarized Financial Information The following table presents summarized financial information, in the aggregate, for our significant equity method investees, as provided to us by the investees (in thousands): Fiscal 2015 Summary statement of operations information: Net sales $ 7,099 Operating loss (555 ) Net income 8,936 Net income attributable to equity method investees 111,135 As of Fiscal 2015 Summary balance sheet information: Current assets $ 70,135 Long-term assets 1,938,785 Current liabilities 150,313 Long-term liabilities 309,169 Noncontrolling interests, including redeemable noncontrolling interests 101,520 |
Note 13. Percentage-of-Completi
Note 13. Percentage-of-Completion Changes in Estimates (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Changes in Estimates for Systems Business [Abstract] | |
Changes in project estimates [Text Block] | 13. Percentage-of-Completion Changes in Estimates We recognize revenue for certain systems business sales arrangements under the percentage-of-completion method. The percentage-of-completion method of revenue recognition requires us to make estimates of net contract revenues and costs to complete our projects. In making such estimates, management judgments are required to evaluate significant assumptions including the amount of net contract revenues, the cost of materials and labor, expected labor productivity, the impact of potential variances in schedule completion, and the impact of any penalties, claims, change orders, or performance incentives. If estimated total costs on any contract are greater than the net contract revenues, we recognize the entire estimated loss in the period the loss becomes known. The cumulative effect of the revisions to estimates related to net contract revenues and costs to complete contracts are recorded in the period in which the revisions to estimates are identified and the amounts can be reasonably estimated. Changes in estimates for systems business sales arrangements accounted for under the percentage-of-completion method occur for a variety of reasons, including but not limited to (i) construction plan accelerations or delays, (ii) module cost forecast changes, (iii) cost related change orders, and (iv) changes in other information used to estimate costs. Changes in estimates could have a material effect on our consolidated statements of operations. The table below outlines the impact on gross profit of the aggregate net changes in systems business contract estimates (both increases and decreases) for the years ended December 31, 2015 and 2014 as well as the number of projects that comprise such aggregate net changes in estimates. For purposes of the following table, we only include projects with changes in estimates that have a net impact on gross profit of at least $1.0 million during the periods presented. Also included in the table is the net change in estimates as a percentage of the aggregate gross profit for such projects. 2015 2014 Number of projects 6 9 Increases (decreases) in gross profit resulting from net changes in estimates (in thousands) $ 31,928 $ 40,118 Net change in estimate as percentage of aggregate gross profit for associated projects 3.4 % 1.6 % |
Note 14. Solar Module Collectio
Note 14. Solar Module Collection and Recycling Liability | 12 Months Ended |
Dec. 31, 2015 | |
Solar Module Collection and Recycling Liability [Abstract] | |
Solar Module Collection and Recycling Liability [Text Block] | 14. Solar Module Collection and Recycling Liability We established a voluntary module collection and recycling program to collect and recycle modules sold and covered under such program once the modules reach the end of their useful lives. Historically, we included a description of our module collection and recycling obligations in customer sales contracts covered under the program. Based on the terms of these contracts, we agreed to cover the costs for the collection and recycling of qualifying solar modules, and the end-users agreed to notify us, disassemble their solar power systems, package the solar modules for shipment, and revert ownership rights over the modules back to us at the end of the modules’ service lives. For modules covered under this program, we record our collection and recycling obligation within “Cost of sales” at the time of sale based on the estimated cost to collect and recycle the covered solar modules. We estimate the cost of our collection and recycling obligations based on the present value of the expected probability weighted future cost of collecting and recycling the solar modules, which includes estimates for the cost of packaging materials, the cost of freight from the solar module installation sites to a recycling center, the material, labor, capital costs, and scale of recycling centers, and an estimated third-party profit margin and return on risk for collection and recycling services. We base these estimates on (i) our experience collecting and recycling our solar modules, (ii) the expected timing of when our solar modules will be returned for recycling, and (iii) expected economic conditions at the time the solar modules will be collected and recycled. In the periods between the time of sale and the related settlement of the collection and recycling obligation, we accrete the carrying amount of the associated liability by applying the discount rate used for its initial measurement. We classify accretion as an operating expense within “Selling, general and administrative” expense on our consolidated statement of operations. We periodically review our estimates of expected future recycling costs and may adjust our liability accordingly. During the year ended December 31, 2015 , we completed our annual cost study of obligations under our module collection and recycling program based on newly implemented recycling technologies at our manufacturing facility in Perrysburg, Ohio and reduced our associated liability by $80.0 million . The new recycling technology represents a significant improvement over previous technologies and contains a continuous flow recycling process, which increases the throughput of modules able to be recycled at a point in time. Such process improvements also result in corresponding reductions in capital, chemical, labor, maintenance, and other general recycling costs, which further contribute to the reduction in the recycling rate per module and corresponding change in the liability. Our module collection and recycling liability was $163.4 million and $246.3 million at December 31, 2015 and 2014 , respectively. During the year ended December 31, 2015 , we recognized a benefit of $67.6 million to cost of sales and a benefit of $4.4 million to accretion expense from the reduction in our module collection and recycling liability, net of the incremental costs associated with the program. During the years ended December 31, 2014 and 2013 , we recognized $30.7 million and $15.1 million , respectively, in cost of sales for the estimated costs of collection and recycling for modules sold during the period. During the years ended December 31, 2014 and 2013 , we also recognized accretion expense of $7.5 million and $4.6 million , respectively, associated with our module collection and recycling liability. A 1% increase in the annualized inflation rate used in our estimated future collection and recycling cost per module would increase our liability by $36.7 million , and a 1% decrease in that rate would decrease our liability by $30.7 million . The percentage of modules sold that were subject to our solar module collection and recycling liability was 1% and 56% for the years ended December 31, 2015 and 2014 , respectively. See Note 8 “Restricted Cash and Investments” to our consolidated financial statements for more information about our arrangements for funding this liability. |
Note 15. Debt
Note 15. Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Instruments [Abstract] | |
Debt | 15. Debt Our long-term debt consisted of the following at December 31, 2015 and 2014 (in thousands): Balance (USD) Loan Agreement Maturity Loan Denomination 2015 2014 Revolving credit facility July 2018 USD $ — $ — Project construction credit facilities Various Various 218,183 75,418 Malaysian ringgit facility agreement September 2018 MYR 54,175 88,606 Malaysian euro facility agreement April 2018 EUR 21,869 34,112 Malaysian facility agreement March 2016 EUR 5,100 25,818 Capital lease obligations Various Various 1,065 1,558 Long-term debt principal 300,392 225,512 Less: unamortized discount and issuance costs (10,977 ) (12,039 ) Total long-term debt 289,415 213,473 Less: current portion (38,090 ) (51,399 ) Noncurrent portion $ 251,325 $ 162,074 Revolving Credit Facility Our amended and restated credit agreement with several financial institutions as lenders and JPMorgan Chase Bank, N.A. as administrative agent provides us with a senior secured credit facility (the “Revolving Credit Facility”) with an aggregate available amount of $700.0 million , with the right to request an increase up to $900.0 million , subject to certain conditions. Borrowings under the Revolving Credit Facility bear interest at (i) LIBOR (adjusted for Eurocurrency reserve requirements) plus a margin of 2.25% or (ii) a base rate as defined in the credit agreement plus a margin of 1.25%, depending on the type of borrowing requested . These margins are subject to adjustment depending on our consolidated leverage ratio. We had no borrowings under our Revolving Credit Facility, as of December 31, 2015 and 2014 . We had issued $191.6 million and $202.5 million of letters of credit using availability under our Revolving Credit Facility, leaving $508.4 million and $397.5 million of availability at December 31, 2015 and 2014 , respectively. Loans and letters of credit issued under the Revolving Credit Facility are jointly and severally guaranteed by First Solar, Inc.; First Solar Electric, LLC; First Solar Electric (California), Inc.; and First Solar Development, LLC and are secured by security interest in substantially all of the grantors’ tangible and intangible assets other than certain excluded assets. The credit agreement contains financial covenants including: a leverage ratio covenant, a minimum EBITDA covenant, and a minimum liquidity covenant. Additionally, the credit agreement contains customary non-financial covenants and certain restrictions on our ability to pay dividends. We were in compliance with all covenants of the facility as of December 31, 2015 . In addition to paying interest on outstanding principal under the Revolving Credit Facility, we are required to pay a commitment fee at a rate of 0.375% per annum, based on the average daily unused commitments under the facility. The commitment fee may also be adjusted due to changes in our consolidated leverage ratio. We also pay a letter of credit fee based on the applicable margin for Eurocurrency revolving loans on the face amount of each letter of credit and a fronting fee of 0.125% . In June 2015, we entered into the fifth amendment (the “Amendment”) to the Revolving Credit Facility. The Amendment provided for, among other things, the conversion of the prior tranche B revolving commitments into tranche A revolving commitments, an increase in the aggregate commitment amount to $700.0 million , and a maturity date of July 15, 2018. The Amendment also contained changes to certain terms, restrictions, and covenants of the Revolving Credit Facility and provided us with the right to increase the commitments under the facility up to $900.0 million . Project Construction Credit Facilities Chile In August 2014, Parque Solar Fotovoltaico Luz del Norte SpA (“Luz del Norte”), our indirect wholly-owned subsidiary, entered into credit facilities with the Overseas Private Investment Corporation (“OPIC”) and the International Finance Corporation (“IFC”) to provide limited-recourse senior secured debt financing in an aggregate principal amount of up to $290.0 million for the design, development, financing, construction, testing, commissioning, operation, and maintenance of a 141 MW PV solar power plant located near Copiapó, Chile. In September 2015, Luz del Norte reduced the borrowing capacity on the credit facilities to $238.0 million . Up to $178.0 million of the aggregate principal amount of the loans will be funded by OPIC. The OPIC commitment is comprised of fixed rate loans in an aggregate principal amount of up to $133.3 million and variable rate loans in an aggregate principal amount of up to $44.7 million . The fixed rate loans mature on September 15, 2029 , and the variable rate loans mature on September 15, 2032 . As of December 31, 2015 and 2014 , the balances outstanding on the OPIC loans were $125.1 million and $47.3 million , respectively. Up to $60.0 million of the aggregate principal amount of the loans will be funded by IFC. The IFC commitment is comprised of fixed rate loans in an aggregate principal amount of up to $44.9 million and variable rate loans in an aggregate principal amount of up to $15.1 million . The fixed rate loans mature on September 15, 2029 , and the variable rate loans mature on September 15, 2032 . As of December 31, 2015 and 2014 , the balances outstanding on the IFC loans were $42.2 million and $16.0 million , respectively. The OPIC and IFC loans are secured by liens over all of Luz del Norte’s assets, which had an aggregate book value of $388.9 million , including intercompany charges, as of December 31, 2015 and by a pledge of all of the equity interests in the entity. The financing agreements contain customary representations and warranties, covenants, and events of default for comparable credit facilities. We were in compliance with all covenants related to the Luz del Norte Credit Facilities as of December 31, 2015 . In August 2014, Luz del Norte also entered into a Chilean peso facility (“VAT facility” and together with the OPIC and IFC loans, the “Luz del Norte Credit Facilities”) equivalent to $65.0 million with Banco de Crédito e Inversiones to fund Chilean value added tax associated with the construction of the Luz del Norte project described above. In connection with the VAT facility, FSI provided a guaranty of substantially all payment obligations of Luz del Norte thereunder. As of December 31, 2015 and 2014 , the balance outstanding on the VAT facility was $40.4 million and $12.2 million , respectively. Japan In September 2015, First Solar Japan GK, our wholly-owned subsidiary, entered into a construction loan facility with Mizuho Bank Ltd. for borrowings up to ¥4.0 billion ( $33.2 million ) for the development and construction of utility-scale PV solar power plants in Japan (the “Japan Credit Facility”). The facility matures in September 2016 and is renewable for an additional one-year period at the option of First Solar Japan GK, subject to certain conditions including timely payment of interest and compliance with all covenants. The facility is guaranteed by FSI and secured by pledges of certain projects’ cash accounts and other rights in the projects. The facility contains customary representations and warranties, covenants, and events of default for comparable construction loan facilities in Japan. As of December 31, 2015 , the balance outstanding on the facility was $5.3 million . We were in compliance with all covenants related to the Japan Credit Facility as of December 31, 2015 . India In March 2015, Marikal Solar Parks Private Limited and Mahabubnagar Solar Parks Private Limited, our indirect wholly-owned subsidiaries, entered into term loan facilities with Axis Bank, as administrative agent, for combined aggregate borrowings up to ₨1.1 billion ( $16.6 million ) for the development and construction of two 10 MW PV solar power plants located in Telangana, India (the “India Credit Facilities”). The term loan facilities have a combined letter of credit sub-limit of ₨0.8 billion ( $12.0 million ), which may also be used to support construction activities. As of December 31, 2015 , we had issued ₨0.8 billion ( $11.3 million ) of letters of credit under the facilities. The term loan facilities mature in December 2028 and are secured by certain assets of the borrowers, which had an aggregate book value of $90.3 million , including intercompany charges, as of December 31, 2015 and a pledge of a portion of the equity interests in the borrowers. The India Credit Facilities contain various financial covenants, including leverage ratio covenants, a debt service ratio covenant, and a fixed asset coverage ratio covenant. As of December 31, 2015 , the balance outstanding on the term loan facilities was $5.2 million . We were in compliance with all covenants associated with the India Credit Facilities as of December 31, 2015 . Malaysian Ringgit Facility Agreement FS Malaysia, our indirect wholly-owned subsidiary, entered into a credit facility agreement (“Malaysian Ringgit Facility Agreement”), among FSI as guarantor, CIMB Investment Bank Berhad, Maybank Investment Bank Berhad, and RHB Investment Bank Berhad as arrangers with CIMB Investment Bank Berhad also acting as facility agent and security agent, and the original lenders party thereto. The loans made to FS Malaysia are secured by, among other things, FS Malaysia’s leases for the lots on which our fifth and sixth manufacturing plants in Kulim, Malaysia (“Plants 5 and 6”) are located and all plant, machinery, and equipment purchased by FS Malaysia with the proceeds of the facility or otherwise installed in or utilized in Plants 5 and 6, to the extent not financed, or subject to a negative pledge under a separate financing facility related to Plants 5 and 6. In addition, FS Malaysia’s obligations under the Malaysian Ringgit Facility Agreement are guaranteed, on an unsecured basis, by FSI. As of December 31, 2015 , buildings, machinery, equipment, and land leases with an aggregate net book value of $240.8 million were pledged as collateral for this loan. The Malaysian Ringgit Facility Agreement contains negative covenants that, among other things, restrict, subject to certain exceptions, the ability of FS Malaysia to incur indebtedness, create liens, effect asset sales, engage in reorganizations, issue guarantees, and make loans. In addition, the agreement includes financial covenants relating to a net total leverage ratio, an interest coverage ratio, a total debt to equity ratio, a debt service coverage ratio, and tangible net worth. It also contains certain representations and warranties, affirmative covenants, and events of default provisions. We were in compliance with all covenants associated with the Malaysian Ringgit Facility Agreement as of December 31, 2015 . Malaysian Euro Facility Agreement FS Malaysia entered into a credit facility agreement (“Malaysian Euro Facility Agreement”) with Commerzbank Aktiengesellschaft and Natixis Zweigniederlassung Deutschland as arrangers and original lenders, and Commerzbank Aktiengesellschaft, Luxembourg Branch as facility agent and security agent. In connection with the Malaysian Euro Facility Agreement, FSI concurrently entered into a first demand guarantee agreement in favor of the lenders. Under this agreement, FS Malaysia’s obligations related to the credit facility are guaranteed, on an unsecured basis, by FSI. At the same time, FS Malaysia and FSI also entered into a subordination agreement, pursuant to which any payment claims of FSI against FS Malaysia are subordinated to the claims of the lenders. The Malaysian Euro Facility Agreement contains negative covenants that, among other things, restrict, subject to certain exceptions, the ability of FS Malaysia to grant liens over the equipment financed by the facilities, effect asset sales, provide guarantees, change its business, engage in mergers, consolidations, and restructurings, and enter into contracts with FSI and its subsidiaries. In addition, the agreement includes the following financial covenants: a maximum total debt to equity ratio, a maximum total leverage ratio, a minimum interest coverage ratio, and a minimum debt service coverage ratio. It also contains certain representations and warranties, affirmative covenants, and events of default provisions. We were in compliance with all covenants associated with the Malaysian Euro Facility Agreement through December 31, 2015 . Malaysian Facility Agreement FS Malaysia entered into an export financing facility agreement (“Malaysian Facility Agreement”) with a consortium of banks. FS Malaysia’s obligations related to the agreement are guaranteed, on an unsecured basis, by FSI. In connection with the Malaysian Facility Agreement, all of FS Malaysia’s obligations are secured by a first party, first legal charge over the machinery and equipment financed by the credit facilities, and any other documents, contracts, and agreements related to that machinery and equipment. Also in connection with the agreement, any payment claims of FSI against FS Malaysia are subordinated to the claims of the lenders. At December 31, 2015 , machinery and equipment with an aggregate net book value of $1.0 million was pledged as collateral for these loans. The Malaysian Facility Agreement contains negative covenants that, among other things, restrict, subject to certain exceptions, the ability of FS Malaysia to incur indebtedness, create liens, effect asset sales, engage in reorganizations, issue guarantees, and make loans. In addition, the Malaysian Facility Agreement includes financial covenants relating to a net total leverage ratio, an interest coverage ratio, a total debt to equity ratio, a debt service coverage ratio, and tangible net worth. The Malaysian Facility Agreement also contains certain representations and warranties, affirmative covenants, and events of default provisions. We were in compliance with all covenants associated with the Malaysian Facility Agreement as of December 31, 2015 . Variable Interest Rate Risk Certain of our long-term debt agreements bear interest at prime, Euro Interbank Offered Rate (“EURIBOR”), KLIBOR, LIBOR, Tokyo Interbank Offered Rate (“TIBOR”), or equivalent variable rates. A disruption of the credit environment, as previously experienced, could negatively impact interbank lending and, therefore, negatively impact these floating rates. An increase in EURIBOR would impact our cost of borrowing under our entire Malaysian Euro Facility Agreement, but would not impact our cost of borrowing of the floating-rate term loan under our Malaysian Facility Agreement as we entered into an interest rate swap contract to mitigate such risk. An increase in KLIBOR would not increase our cost of borrowing under our Malaysian Ringgit Facility Agreement as we entered into a cross-currency swap contract to mitigate such risk. An increase in prime, London Interbank Offered Rate (“LIBOR”), TIBOR, or equivalent variable rates would increase our cost of borrowing under our Revolving Credit Facility and various Project Construction Credit Facilities. Our long-term debt borrowing rates as of December 31, 2015 were as follows: Loan Agreement Borrowing Rate at December 31, 2015 Revolving Credit Facility 2.86% Luz del Norte Credit Facilities Fixed rate loans at bank rate plus 3.50% Variable rate loans at 91-Day U.S. Treasury Bill Yield or LIBOR plus 3.50% VAT loans at bank rate plus 1.30% Japan Credit Facility TIBOR plus 0.5% India Credit Facilities Bank rate plus 2.35% Malaysian Ringgit Facility Agreement KLIBOR plus 2.00% (2) Malaysian Euro Facility Agreement EURIBOR plus 1.00% Malaysian Facility Agreement (1) Fixed rate facility at 4.54% Floating rate facility at EURIBOR plus 0.55% (2) Capital lease obligations Various (1) Outstanding balance split equally between fixed and floating rates. (2) Interest rate hedges have been entered into relating to these variable rates. See Note 10 “Derivative Financial Instruments” to our consolidated financial statements. During the years ended December 31, 2015 , 2014 , and 2013 , we paid $15.2 million , $7.6 million , and $9.3 million , respectively, of interest related to our long-term debt arrangements. Future Principal Payments At December 31, 2015 , the future principal payments on our long-term debt, excluding payments related to capital leases, were due as follows (in thousands): Total Debt 2016 $ 38,331 2017 29,419 2018 67,692 2019 5,785 2020 11,930 Thereafter 146,170 Total long-term debt future principal payments $ 299,327 |
Note 16. Commitments and Contin
Note 16. Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Commercial Commitments During the normal course of business, we enter into commercial commitments in the form of letters of credit, bank guarantees, and surety bonds to provide financial and performance assurance to third parties. Our Revolving Credit Facility provides us with an aggregate available amount of $700.0 million , with a sub-limit of $500.0 million to issue letters of credit subject to certain limits depending on the currencies of the letters of credit, at a fee based on the applicable margin for Eurocurrency revolving loans and a fronting fee. As of December 31, 2015 , we had $191.6 million in letters of credit issued under our Revolving Credit Facility, leaving $308.4 million of availability which can be used for the issuance of letters of credit. The majority of these letters of credit were supporting our systems business projects. As of December 31, 2015 , we also had $16.8 million in bank guarantees and letters of credit under separate agreements that were posted by certain of our foreign subsidiaries, $103.2 million of letters of credit issued under two bilateral facilities, of which $71.5 million was secured with cash, and $154.0 million in surety bonds outstanding primarily for our systems business projects. The available bonding capacity under our surety lines was $639.0 million as of December 31, 2015 . Lease Commitments We lease our corporate headquarters in Tempe, Arizona and administrative, research and development, business development, customer support, and government affairs offices throughout the United States and the rest of the world under noncancelable operating leases. These leases may require us to pay property taxes, common area maintenance, and certain other costs in addition to base rent. We also lease certain machinery and equipment under operating and capital leases. Future minimum payments under all of our noncancelable leases are as follows as of December 31, 2015 (in thousands): 2016 2017 2018 2019 2020 Thereafter Total Minimum Lease Payments Less Amounts Representing Interest Present Value of Minimum Lease Payments Less Current Portion of Capital Leases Noncurrent Portion of Capital Leases Gross operating lease obligations $ 18,273 $ 16,025 $ 13,733 $ 10,505 $ 5,378 $ 104,860 $ 168,774 Sublease income (1,449 ) (1,449 ) (906 ) — — — (3,804 ) Net operating lease obligations 16,824 14,576 12,827 10,505 5,378 104,860 164,970 Capital leases 540 420 97 65 — — 1,122 (57 ) 1,065 (374 ) 691 Total $ 17,364 $ 14,996 $ 12,924 $ 10,570 $ 5,378 $ 104,860 $ 166,092 Our rent expense was $22.5 million , $18.0 million , and $14.4 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Purchase Commitments We purchase raw materials for inventory, construction materials, various services, and manufacturing equipment from a variety of vendors. During the normal course of business, in order to manage manufacturing and construction lead times and help assure an adequate supply of certain items, we enter into agreements with suppliers that either allow us to procure goods and services when we choose or that establish purchase requirements over the term of the agreement. In certain instances, the agreements with purchase requirements allow us the option to cancel, reschedule, or adjust our requirements based on our business needs prior to firm orders being placed. Consequently, only a portion of our purchase commitments are firm, noncancelable, enforceable, and legally binding. At December 31, 2015 , our obligations under such agreements were $789.7 million , of which $35.2 million was for commitments related to capital expenditures. $736.0 million of our purchase obligations are due in 2016 . Product Warranties When we recognize revenue for module or systems sales, we accrue liabilities for the estimated future costs of meeting our limited warranty obligations for both modules and the balance of the systems. We make and revise these estimates based primarily on the number of our solar modules under warranty installed at customer locations, our historical experience with warranty claims, our monitoring of field installation sites, our internal testing of and the expected future performance of our solar modules and BoS components, and our estimated replacement costs. From time to time, we have taken remediation actions with respect to affected modules beyond our limited warranties, and we may elect to do so in the future, in which case we would incur additional expenses. Such potential voluntary future remediation actions beyond our limited warranty obligations could be material to our consolidated statements of operations if we commit to any such remediation actions. Product warranty activities during the years ended December 31, 2015 , 2014 , and 2013 were as follows (in thousands): 2015 2014 2013 Product warranty liability, beginning of period $ 223,057 $ 198,041 $ 191,596 Accruals for new warranties issued 50,040 40,599 35,985 Settlements (13,392 ) (16,721 ) (33,499 ) Changes in estimate of product warranty liability (27,954 ) 1,138 3,959 Product warranty liability, end of period $ 231,751 $ 223,057 $ 198,041 Current portion of warranty liability $ 38,468 $ 69,656 $ 67,097 Noncurrent portion of warranty liability $ 193,283 $ 153,401 $ 130,944 We have historically estimated our limited product warranty liability for power output and defects in materials and workmanship under normal use and service conditions to have a warranty return rate of approximately 3% of modules covered under warranty. A 1% change in the estimated warranty return rate would change our module warranty liability by $71.5 million , and a 1% change in the estimated warranty return rate for BoS components would not have a material impact on the associated warranty liability. Accrued Expenses in Excess of Product Warranty We may also accrue expenses for the cost of any voluntary remediation programs beyond our normal product warranty. As of December 31, 2015 and 2014 , accrued expenses in excess of our product warranty were $24.6 million and $30.9 million , respectively, of which $5.0 million and $7.8 million , respectively, were classified as current and included in “ Accrued expenses ” on our consolidated balance sheets and $19.6 million and $23.1 million , respectively, were classified as noncurrent and included in “ Other liabilities ” on our consolidated balance sheets. Our estimates for such remediation programs are based on an evaluation of available information including the estimated number of potentially affected solar modules, historical experience related to our remediation efforts, customer-provided data related to potentially affected systems, estimated costs for performing removal, replacement, and logistical services, and any post-sale expenses covered under our voluntary remediation program. If any of our estimates prove incorrect, we could be required to accrue additional expenses. Performance Guarantees As part of our systems business, we conduct performance testing of a system prior to substantial completion to confirm the system meets its operational and capacity expectations noted in the EPC agreement. In addition, we may provide an energy performance test during the first year of a system’s operation to demonstrate that the actual energy generation for the first year meets or exceeds the modeled energy expectation, after certain adjustments. If there is an underperformance event with regards to these tests, we may incur liquidated damages as a percentage of the EPC contract price. In certain instances, a bonus payment may be received at the end of the first year if the system performs above a specified level. As of December 31, 2015 and 2014 , we accrued $0.3 million and $4.3 million , respectively, of estimated obligations under such arrangements, which were classified as “ Other current liabilities ” in the consolidated balance sheets. As part of our O&M service offerings, we typically offer an effective availability guarantee, which stipulates that a system will be available to generate a certain percentage of total possible energy during a specific period after adjusting for factors outside of our control as the service provider, such as weather, curtailment, outages, force majeure, and other conditions that may affect system availability. Effective availability guarantees are only offered as part of our O&M services and terminate at the end of an O&M arrangement. If we fail to meet the contractual threshold for these guarantees, we may incur liquidated damages for certain lost energy under the PPA. Our O&M agreements typically contain provisions limiting our total potential losses under an agreement, including amounts paid for liquidated damages, to a percentage of O&M fees. Many of our O&M agreements also contain provisions whereby we may receive a bonus payment if system availability exceeds a separate threshold. As of December 31, 2015 and 2014 , we did not accrue any estimated obligations under our effective availability guarantees. Repurchase of Systems Projects From time to time under sales agreements for a limited number of our solar power projects, we may be required to repurchase the projects if certain events occur, such as not achieving commercial operation of the project within a certain timeframe. For any sales agreements that have such conditional repurchase clauses, we will not recognize revenue on such sales agreements until the conditional repurchase clauses are of no further force or effect and all other necessary revenue recognition criteria have been met. Contingent Consideration In connection with our TetraSun and Solar Chile acquisitions, we agreed to pay additional amounts to sellers contingent upon achievement by the acquired businesses of certain negotiated goals, such as targeted project and module shipment volume milestones. As of December 31, 2015 and 2014 , we recorded $2.5 million and $4.9 million of current liabilities, respectively, and $4.9 million and $14.7 million of long-term liabilities, respectively, for these contingent obligations based on their estimated fair value. We continually seek to make additions to our advanced-stage project pipeline and are also actively developing our early to mid-stage project pipeline in order to secure PPAs and are also pursuing opportunities to acquire advanced-stage projects, which already have PPAs in place. In connection with such project acquisitions, we may agree to pay additional amounts to project sellers upon achievement of certain project-related milestones, such as obtaining a PPA, obtaining financing, and selling to a new owner. We recognize an estimated project acquisition contingent liability when we determine that such liability is both probable and reasonably estimable, and the carrying amount of the related project asset is correspondingly increased. As of December 31, 2015 and 2014 , we recorded $6.7 million and $31.9 million of current liabilities, respectively, and $3.9 million and $2.4 million of long-term liabilities, respectively, for such contingent obligations. Any future differences between the acquisition-date contingent obligation estimate and the ultimate settlement of the obligations will be recognized primarily as an adjustment to project assets, as contingent payments are considered direct and incremental to the underlying value of the related projects. Legal Proceedings We are party to legal matters and claims that are normal in the course of our operations. While we believe that the ultimate outcome of these matters will not have a material adverse effect on our financial position, results of operations, or cash flows, the outcome of these matters is not determinable with certainty, and negative outcomes may adversely affect us. Class Action On March 15, 2012, a purported class action lawsuit titled Smilovits v. First Solar, Inc., et al., Case No. 2:12-cv-00555-DGC, was filed in the United States District Court for the District of Arizona (hereafter “Arizona District Court”) against the Company and certain of our current and former directors and officers. The complaint was filed on behalf of persons who purchased or otherwise acquired the Company’s publicly traded securities between April 30, 2008 and February 28, 2012 (the “Class Action”). The complaint generally alleges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making false and misleading statements regarding the Company’s financial performance and prospects. The action includes claims for damages, including interest, and an award of reasonable costs and attorneys’ fees to the putative class. The Company believes it has meritorious defenses and will vigorously defend this action. On July 23, 2012, the Arizona District Court issued an order appointing as lead plaintiffs in the Class Action the Mineworkers’ Pension Scheme and British Coal Staff Superannuation Scheme (collectively “Pension Schemes”). The Pension Schemes filed an amended complaint on August 17, 2012, which contains similar allegations and seeks similar relief as the original complaint. Defendants filed a motion to dismiss on September 14, 2012. On December 17, 2012, the court denied Defendants’ motion to dismiss. On October 8, 2013, the Arizona District Court granted the Pension Schemes’ motion for class certification, and certified a class comprised of all persons who purchased or otherwise acquired publicly traded securities of the Company between April 30, 2008 and February 28, 2012 and were damaged thereby, excluding defendants and certain related parties. Merits discovery closed on February 27, 2015. Defendants filed a motion for summary judgment on March 27, 2015. On August 11, 2015, the Arizona District Court granted defendants’ motion in part and denied it in part, and certified an issue for immediate appeal to the Ninth Circuit Court of Appeals. First Solar filed a petition for interlocutory appeal with the Ninth Circuit, and that petition was granted on November 18, 2015. First Solar’s opening brief is due on March 25, 2016. The Arizona District Court entered a stay of the proceedings in district court until the appeal is decided. Given the pending appeal, the need for further expert discovery, and the uncertainties of trial, we are not in a position to assess whether any loss or adverse effect on our financial condition is probable or remote or to estimate the range of potential loss, if any. Opt-Out Action On June 23, 2015, a suit titled Maverick Fund, L.D.C. v. First Solar, Inc., et al., Case No. 2:15-cv-01156-ROS, was filed in Arizona District Court by putative stockholders that opted out of the Class Action. The complaint names the Company and certain of our current and former directors and officers as defendants, and alleges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and violated state law, by making false and misleading statements regarding the Company’s financial performance and prospects. The action includes claims for recessionary and actual damages, interest, punitive damages, and an award of reasonable attorneys’ fees, expert fees, and costs. The Company believes it has meritorious defenses and will vigorously defend this action. The Arizona District Court has extended the deadline for responding to the complaint until after the Ninth Circuit Court of Appeals resolves the petition for appeal and/or the appeal in the Smilovits matter described above. Accordingly, we are not in a position to assess whether any loss or adverse effect on our financial condition is probable or remote or to estimate the range of potential loss, if any. Derivative Actions On April 3, 2012, a derivative action titled Tsevegmid v. Ahearn, et al., Case No. 1:12-cv-00417-CJB, was filed by a putative stockholder on behalf of the Company in the United States District Court for the District of Delaware (hereafter “Delaware District Court”) against certain current and former directors and officers of the Company, alleging breach of fiduciary duties and unjust enrichment. The complaint generally alleges that from June 1, 2008, to March 7, 2012, the defendants caused or allowed false and misleading statements to be made concerning the Company’s financial performance and prospects. The action includes claims for, among other things, damages in favor of the Company, certain corporate actions to purportedly improve the Company’s corporate governance, and an award of costs and expenses to the putative plaintiff stockholder, including attorneys’ fees. On April 10, 2012, a second derivative complaint was filed in the Delaware District Court. The complaint, titled Brownlee v. Ahearn, et al., Case No. 1:12-cv-00456-CJB, contains similar allegations and seeks similar relief to the Tsevegmid action. By court order on April 30, 2012, pursuant to the parties’ stipulation, the Tsevegmid action and the Brownlee action were consolidated into a single action in the Delaware District Court. On May 15, 2012, defendants filed a motion to challenge Delaware as the appropriate venue for the consolidated action. On March 4, 2013, the magistrate judge issued a Report and Recommendation recommending to the court that defendants’ motion be granted and that the case be transferred to the District of Arizona. On July 12, 2013, the court adopted the magistrate judge’s Report and Recommendation and ordered the case transferred to the District of Arizona. The transfer was completed on July 15, 2013. On April 12, 2012, a derivative complaint was filed in the United States District Court for the District of Arizona (hereafter “Arizona District Court”), titled Tindall v. Ahearn, et al., Case No. 2:12-cv-00769-ROS. In addition to alleging claims and seeking relief similar to the claims and relief asserted in the Tsevegmid and Brownlee actions, the Tindall complaint alleges violations of Sections 14(a) and 20(b) of the Securities Exchange Act of 1934. On April 19, 2012, a second derivative complaint was filed in the Arizona District Court, titled Nederhood v. Ahearn, et al., Case No. 2:12-cv-00819-JWS. The Nederhood complaint contains similar allegations and seeks similar relief to the Tsevegmid and Brownlee actions. On May 17, 2012 and May 30, 2012, respectively, two additional derivative complaints, containing similar allegations and seeking similar relief as the Nederhood complaint, were filed in Arizona District Court: Morris v. Ahearn, et al., Case No. 2:12-cv-01031-JAT and Tan v. Ahearn, et al., 2:12-cv-01144-NVW. On July 17, 2012, the Arizona District Court issued an order granting First Solar’s motion to transfer the derivative actions to Judge David Campbell, the judge to whom the Smilovits class action is assigned. On August 8, 2012, the court consolidated the four derivative actions pending in Arizona District Court, and on August 31, 2012, plaintiffs filed an amended complaint. Defendants filed a motion to stay the action on September 14, 2012. On December 17, 2012, the Arizona District Court granted Defendants’ motion to stay pending resolution of the Smilovits class action. On August 13, 2013, Judge Campbell consolidated the two derivative actions transferred from the Delaware District Court with the stayed Arizona derivative actions. On February 19, 2016, the Arizona District Court issued an order lifting the stay in part. Pursuant to the February 19, 2016 order, the plaintiffs shall file an amended complaint by March 11, 2016. Defendants shall file a motion to dismiss the amended complaint by April 1, 2016. All other litigation activity, including discovery, remains stayed. On July 16, 2013, a derivative complaint was filed in the Superior Court of Arizona, Maricopa County, titled Bargar, et al. v. Ahearn, et al., Case No. CV2013-009938, by a putative stockholder against certain current and former directors and officers of the Company. The complaint contains similar allegations to the Delaware and Arizona derivative cases, and includes claims for, among other things, breach of fiduciary duties, insider trading, unjust enrichment, and waste of corporate assets. By court order on October 3, 2013, the Superior Court of Arizona, Maricopa County granted the parties’ stipulation to defer defendants’ response to the complaint pending resolution of the Smilovits class action or expiration of the stay issued in the consolidated derivative actions in the Arizona District Court. On November 5, 2013, the matter was placed on the court’s inactive calendar. The parties have jointly sought and obtained multiple requests to continue the action on the inactive calendar. Most recently, on November 24, 2015, the court entered an order continuing the action on the inactive calendar until March 31, 2016. The Company believes that plaintiffs in the derivative actions lack standing to pursue litigation on behalf of First Solar. The derivative actions are still in the initial stages and there has been no discovery. Accordingly, we are not in a position to assess whether any loss or adverse effect on our financial condition is probable or remote or to estimate the range of potential loss, if any. Department of Labor Proceeding In March 2015, the Wage and Hour Division of the U.S. Department of Labor (the “DOL”) notified our wholly-owned subsidiary First Solar Electric, LLC (“FSE”) of the DOL’s findings following a labor standards compliance review under the Davis Bacon and Related Acts at the Agua Caliente project in southwestern Arizona. FSE served as the general contractor for the project. The DOL alleges that certain workers at the project were misclassified and, as a result of that misclassification, were not paid the required prevailing wage. We disagree with certain of the DOL’s investigative findings and are currently reviewing those issues of disagreement with the DOL. Possible adverse outcomes include the payment of back wages and debarment of FSE and its affiliates from doing certain business with the U.S. federal government. We cannot predict the ultimate outcome of the DOL proceeding. |
Note 17. Stockholders' Equity (
Note 17. Stockholders' Equity (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Class of Stock Disclosures [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 17. Stockholders’ Equity Preferred Stock We have authorized 30,000,000 shares of undesignated preferred stock, $0.001 par value, none of which was issued and outstanding at December 31, 2015 and 2014 . Our board of directors is authorized to determine the rights, preferences, and restrictions on any series of preferred stock that we may issue. Common Stock We have authorized 500,000,000 shares of common stock, $0.001 par value, of which 101,766,797 and 100,288,942 shares were issued and outstanding at December 31, 2015 and 2014 , respectively. Each share of common stock is entitled to a single vote. We have not declared or paid any dividends through December 31, 2015 . During June 2013, we completed an equity offering of 9,747,000 shares of our common stock at a public offering price of $46.00 per share. Net proceeds from the equity offering were $428.2 million , after deducting $17.9 million of underwriting discounts and offering expenses of $2.2 million . We have used proceeds from this offering for general corporate purposes, which includes items such as acquisitions of under development PV solar power system projects, investments in PV solar power system projects that will be jointly developed with strategic partners, and capital expenditures or strategic investments to develop certain business units and expand in new geographies. |
Note 18. Share-Based Compensati
Note 18. Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Disclosure [Text Block] | 18. Share-Based Compensation We measure share-based compensation cost at the grant date based on the fair value of the award and recognize this cost as share-based compensation expense over the required or estimated service period for awards expected to vest. The share-based compensation expense that we recognized in our consolidated statements of operations for the years ended December 31, 2015 , 2014 , and 2013 was as follows (in thousands): 2015 2014 2013 Cost of sales $ 10,713 $ 11,713 $ 17,116 Research and development 4,109 4,417 5,760 Selling, general and administrative 30,052 27,660 31,426 Production start-up 25 20 283 Total share-based compensation expense $ 44,899 $ 43,810 $ 54,585 The following table presents our share-based compensation expense by type of award for the years ended December 31, 2015 , 2014 , and 2013 (in thousands): 2015 2014 2013 Restricted and performance stock units $ 40,393 $ 42,852 $ 51,433 Unrestricted stock 1,326 1,326 1,253 Stock purchase plan 1,254 1,003 998 42,973 45,181 53,684 Net amount released from (absorbed into) inventory 1,926 (1,371 ) 901 Total share-based compensation expense $ 44,899 $ 43,810 $ 54,585 Share-based compensation expense capitalized in inventory was $3.4 million and $5.3 million as of December 31, 2015 and 2014 , respectively. As of December 31, 2015 , we had $28.3 million of unrecognized share-based compensation expense related to unvested restricted and performance stock units and rights under our stock purchase plan (the “Stock Purchase Plan”), which we expect to recognize as expense over a weighted-average period of approximately 0.7 years . The estimated forfeiture rate used to record compensation expense is based on historical forfeitures and is adjusted periodically based on actual results. At December 31, 2015 and 2014 , our forfeiture rate was 9.5% . During the years ended December 31, 2015 , 2014 , and 2013 , we recognized an income tax benefit in our statement of operations of $15.3 million , $15.8 million , and $19.4 million , respectively, related to share-based compensation expense. We authorize our transfer agent to issue new shares, net of shares withheld for minimum statutory withholding taxes as appropriate, for the vesting of restricted and performance stock units or grants of unrestricted stock. Share-Based Compensation Plans During 2010, we adopted our 2010 Omnibus Incentive Compensation Plan (“the 2010 Omnibus Plan”). Under the 2010 Omnibus Plan, directors, associates, and consultants of First Solar, Inc. (including any of its subsidiaries) were eligible to participate. The 2010 Omnibus Plan was administered by the compensation committee of our board of directors (or any other committee designated by our board of directors), which was authorized to, among other things, determine who would receive grants and determine the exercise price and vesting schedule of the awards made under the 2010 Omnibus Plan. The 2010 Omnibus Plan provided for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock units, performance units, cash incentive awards, and other equity-based and equity-related awards. During 2015, the 2010 Omnibus Plan was replaced by our 2015 Omnibus Incentive Compensation Plan (“the 2015 Omnibus Plan”). Upon approval by our shareholders, the 2010 Omnibus Plan share reserve was transferred to the 2015 Omnibus Plan and any forfeitures under the 2010 Omnibus Plan become available for grant under the 2015 Omnibus Plan. This new plan differs from prior equity compensation plans in that the 2015 Omnibus Plan (i) alters the definition of “Change of Control” to increase the percentage threshold for triggering a change of control and to better reflect the current ownership of our most significant stockholders, (ii) alters the number of, and manner in which we calculate, the 2015 Omnibus Plan share reserve (A) to eliminate recycling of shares surrendered or tendered to satisfy exercise price payments or applicable tax withholding with respect to options and stock appreciation rights (“SARs”) and (B) to count each share in respect of which a stock-settled SAR was exercised against the maximum aggregate limit of shares that may be awarded under the 2015 Omnibus Plan, regardless of the number of shares actually delivered upon settlement of such stock-settled SAR, (iii) reflects changes (actual or anticipated in the near future) in the law (such as clawback provisions that would satisfy Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as codified in Section 10D of the Exchange Act, and Section 304 of the Sarbanes-Oxley Act of 2002), (iv) clarifies that, to satisfy the exercise price due upon a participant’s exercise of a vested option under the 2015 Omnibus Plan, the Company may withhold from the shares otherwise deliverable to such participant a number of shares with an equivalent fair market value to such exercise price, (v) clarifies that for any awards under the 2015 Omnibus Plan that are subject to vesting based on the achievement of performance goals (or any performance compensation awards as described below) and for which the compensation committee has provided for the payment of dividends or dividend equivalents, participants would not be entitled to payment of such dividends or dividend equivalents unless and to the extent that such performance goals are achieved or otherwise deemed to be satisfied, and (vi) responds to other compensation and governance trends. Under the 2015 Omnibus Plan, directors, officers, employees, and consultants of FSI (including any of its subsidiaries) are eligible to participate. The 2015 Omnibus Plan is administered by the compensation committee of our board of directors (or any other committee designated by our board of directors), which is authorized to, among other things, determine who will receive grants and determine the exercise price and vesting schedule of the awards made under the 2015 Omnibus Plan. Our board of directors may amend, modify, or terminate the 2015 Omnibus Plan without the approval of our stockholders, except stockholder approval is required for amendments that would increase the maximum number of shares of our common stock available for awards under the 2015 Omnibus Plan, increase the maximum number of shares of our common stock that may be delivered by incentive stock options, or modify the requirements for participation in the 2015 Omnibus Plan. The 2015 Omnibus Plan provides for the grant of incentive stock options, non-qualified stock options, SARs, restricted shares, restricted stock units, performance units, cash incentive awards, performance compensation awards, and other equity-based and equity-related awards. The maximum number of new shares of our common stock that may be delivered by awards granted under the 2015 Omnibus Plan is 5,183,172 . Also, the shares underlying forfeited, expired, terminated, or canceled awards, or shares surrendered as payment for taxes required to be withheld become available for new award grants. We may not grant awards under the 2015 Omnibus Plan after 2025 , which is the tenth anniversary of the 2015 Omnibus Plan’s approval by our stockholders. At December 31, 2015 , 5,176,136 shares were available for grant under the 2015 Omnibus Plan. Restricted Stock Units and Performance Based Restricted Stock Units We issue shares to the holders of restricted units on the date the restricted stock units vest. The majority of shares issued are net of the minimum statutory withholding requirements, which we pay on behalf of our associates. As a result, the actual number of shares issued will be less than the number of restricted stock units granted. Prior to vesting, restricted stock units do not have dividend equivalent rights or voting rights, and the shares underlying the restricted stock units are not considered issued and outstanding. Some of our restricted stock units below are characterized as performance based restricted stock units. Our board of directors approved and adopted the Key Senior Talent Equity Performance Program (“KSTEPP”), a performance unit program under our prior 2010 Omnibus Plan applicable to our senior executives. The KSTEPP rewards achievement of certain performance objectives aligned to the success of our Long Term Strategic Plan. The performance objectives for the rolling annual measurement periods include KSTEPP adjusted operating income, sales in key geographic markets, and cash adjusted return on invested capital. The KSTEPP awards were designed so that the attainment of the performance criteria required for full or partial vesting would be attained over time. In November 2015, the compensation committee of our board of directors certified the Company’s achievement of the partial KSTEPP vesting conditions for the rolling annual period ended September 30, 2015. Accordingly, one-third of each KSTEPP award vested in 2015, and each KSTEPP participant received one share of common stock for each vested KSTEPP performance unit, net of any forfeitures or tax withholdings. The following is a summary of our restricted and performance stock unit activity for the year ended December 31, 2015 : Number of Shares Weighted Average Grant-Date Fair Value Unvested restricted stock units at December 31, 2014 4,319,461 $ 29.80 Restricted stock units granted 444,942 60.91 Restricted stock units vested (1,629,123) 33.88 Restricted stock units forfeited (160,787) 41.32 Unvested restricted stock units at December 31, 2015 2,974,493 $ 31.59 We estimate the fair value of our restricted stock unit awards based on our stock price on the grant date. For the years ended December 31, 2014 and 2013 , the weighted average grant-date fair value for restricted stock units granted in such years was $57.74 and $29.56 , respectively. The total fair value of restricted stock units vested during 2015 , 2014 , and 2013 was $96.4 million , $66.8 million , and $33.6 million , respectively. Stock Awards During the years ended December 31, 2015 , 2014 , and 2013 , we awarded 25,376 , 21,879 , and 31,891 , respectively, of fully vested, unrestricted shares of our common stock to the independent members of our board of directors. We recognized $1.3 million , $1.3 million , and $1.3 million of share-based compensation expense for these awards during the years ended December 31, 2015 , 2014 , and 2013 , respectively. Stock Purchase Plan Our shareholders approved our Stock Purchase Plan for employees in June 2010 . The plan allows employees to purchase our common stock through payroll withholdings over a six-month offering period at 85% of the closing share price on the last day of the offering period (the “exercise date”). We estimate the fair value of the Stock Purchase Plan compensation expense based primarily on our stock price on the exercise date. |
Note 19. Benefit Plans
Note 19. Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans Disclosure | 19. Benefit Plans We offer a 401(k) retirement savings plan into which all of our U.S. associates (our term for employees) can voluntarily contribute a portion of their annual salaries and wages, subject to legally prescribed dollar limits. Our contributions to our associates’ plan accounts are made at the discretion of our board of directors and are based on a percentage of the participating associates’ contributions. Associate contributions are matched dollar-for-dollar up to the first 4% . Our contributions to the plan were $7.4 million , $6.5 million , and $6.7 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Our 401(k) retirement savings plan does not offer participants an option to invest in our common stock. We also offer certain retirement savings plans to certain non-U.S. associates. These plans are managed in accordance with applicable local statutes and practices and are defined contribution plans. Our contributions to these plans were $0.9 million , $0.9 million , and $0.9 million during the years ended December 31, 2015 , 2014 , and 2013 , respectively. |
Note 20. Income Taxes
Note 20. Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes Disclosure [Text Block] | 20. Income Taxes The U.S. and non-U.S. components of our income before income taxes for the years ended December 31, 2015 , 2014 , and 2013 were as follows (in thousands): 2015 2014 2013 U.S. income $ 126,958 $ 139,137 $ 78,346 Non-U.S. income 392,877 292,964 302,633 Income before income taxes $ 519,835 $ 432,101 $ 380,979 The components of our income tax (benefit) expense for the years ended December 31, 2015 , 2014 , and 2013 were as follows (in thousands): 2015 2014 2013 Current expense: Federal $ 20,208 $ 15,492 $ 44,518 State 4,172 1,699 836 Foreign 23,215 8,123 5,622 Total current expense 47,595 25,314 50,976 Deferred (benefit) expense: Federal (716 ) 2,926 (12,022 ) State 3,118 5,133 2,229 Foreign (56,153 ) (2,185 ) (11,085 ) Total deferred (benefit) expense (53,751 ) 5,874 (20,878 ) Total income tax (benefit) expense $ (6,156 ) $ 31,188 $ 30,098 The current tax expense listed above does not reflect income tax benefits of $14.6 million , $24.5 million , and $21.0 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively, related to excess tax deductions on share-based compensation as we recorded such benefits directly to additional paid-in capital. We use the deferral method of accounting for investment tax credits under which the credits are recognized as reductions in the carrying value of the related assets. The use of the deferral method also results in a basis difference from the recognition of a deferred tax asset and an immediate income tax benefit for the future tax depreciation of the related assets. Such basis differences are accounted for pursuant to the income statement method. During 2015, we generated a $19.2 million investment tax credit from placing a project into service. Our Malaysian subsidiary has been granted a long-term tax holiday that expires in 2027 . The tax holiday, which generally provides for a full exemption from Malaysian income tax, is conditional upon our continued compliance in meeting certain employment and investment thresholds, which we are currently in compliance with and expect to continue to comply with through the expiration of the tax holiday in 2027 . Income tax expense decreased by $37.3 million during 2015 compared to 2014 . The decrease in income tax expense was primarily the result of a $41.7 million discrete tax benefit associated with the receipt of a private letter ruling. Income tax expense increased by $1.1 million during 2014 compared to 2013 . The increase in income tax expense was primarily attributable to an increase in pretax book income earned in higher tax jurisdictions in 2014 , partially offset by a discrete tax benefit due to the expiration of the statute of limitations for various uncertain tax positions. Our income tax results differed from the amount computed by applying the U.S. statutory federal income tax rate of 35.0% to our income before income taxes for the following reasons for the years ended December 31, 2015 , 2014 , and 2013 (in thousands): 2015 2014 2013 Tax Percent Tax Percent Tax Percent Statutory income tax expense $ 181,936 35.0 % $ 151,235 35.0 % $ 133,342 35.0 % Non-deductible expenses 4,161 0.8 % 3,001 0.7 % 707 0.2 % State tax, net of federal benefit 5,437 1.0 % 4,549 1.0 % 1,579 0.4 % Effect of tax holiday (126,324 ) (24.3 )% (80,049 ) (18.5 )% (80,076 ) (21.0 )% Foreign tax rate differential (9,637 ) (1.9 )% (7,524 ) (1.7 )% (19,839 ) (5.2 )% Effect of private letter ruling (41,694 ) (8.0 )% — — % — — % Tax credits (2,566 ) (0.5 )% (3,014 ) (0.7 )% (13,267 ) (3.5 )% Other (9,670 ) (1.8 )% (5,369 ) (1.2 )% 1,606 0.4 % Impact of changes in valuation allowance (7,799 ) (1.5 )% (31,641 ) (7.4 )% 6,046 1.6 % Reported income tax (benefit) expense $ (6,156 ) (1.2 )% $ 31,188 7.2 % $ 30,098 7.9 % For the years ended December 31, 2015 and 2014 , the tax benefit from the foreign tax rate differential primarily related to our income generated in Malaysia calculated at the statutory tax rate of 25.0% , compared to the U.S. statutory tax rate of 35.0% . For the year ended December 31, 2013 , the tax benefit from the foreign tax rate differential primarily related to our income generated in Germany and Malaysia calculated at statutory tax rates of 29.6% and 25.0% , respectively, compared to the U.S. statutory tax rate of 35.0% . During the years ended December 31, 2015 and 2014 , we made net tax payments of $30.8 million and $17.0 million , respectively. During the year ended December 31, 2013 , we received a net tax refund of $1.6 million . Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities calculated for U.S. GAAP financial reporting purposes and the amounts calculated for preparing our income tax returns in accordance with tax regulations. The items that gave rise to our deferred taxes for the years ended December 31, 2015 and 2014 were as follows (in thousands): 2015 2014 Deferred tax assets: Goodwill $ 32,022 $ 39,299 Compensation 38,938 38,890 Accrued expenses 74,432 59,517 Tax credits 211,066 174,633 Net operating losses 95,562 86,268 Inventory 5,961 11,435 Deferred expenses 8,559 3,778 Property, plant and equipment 38,869 48,026 Long-term contracts 2,522 11,120 Other 8,622 5,736 Deferred tax assets, gross 516,553 478,702 Valuation allowance (121,524 ) (129,323 ) Deferred tax assets, net of valuation allowance 395,029 349,379 Deferred tax liabilities: Capitalized interest (4,270 ) (5,216 ) Acquisition accounting / basis difference (3,527 ) (13,780 ) Restricted investments and derivatives (14,128 ) (18,124 ) Investments in foreign subsidiaries (379 ) (967 ) Equity in earnings (21,895 ) (1,020 ) Other (2,388 ) (5,044 ) Deferred tax liabilities (46,587 ) (44,151 ) Net deferred tax assets and liabilities $ 348,442 $ 305,228 In April 2015, we received a private letter ruling in a foreign jurisdiction related to the timing of the deduction for certain of our obligations. In accordance with this ruling, we will begin treating these obligations as deductible when we actually make payments on the obligations, which are expected to occur subsequent to the expiration of the tax holiday. As a result, we recorded a benefit of $41.7 million through the tax provision to establish a deferred tax asset associated with the future deductibility of these obligations. In December 2015, FS Malaysia prepaid a $96.6 million intellectual property royalty to First Solar, Inc. As a result of this transaction, FS Malaysia and First Solar, Inc. expect to recognize corresponding amounts for royalty expense and royalty revenue in 2016. Changes in our valuation allowance against our deferred tax assets were as follows during the years ended December 31, 2015 , 2014 , and 2013 (in thousands): 2015 2014 2013 Valuation allowance, beginning of year $ 129,323 $ 160,965 $ 154,919 Additions 368 2,068 15,059 Reversals (8,167 ) (33,710 ) (9,013 ) Valuation allowance, end of year $ 121,524 $ 129,323 $ 160,965 We maintained a valuation allowance of $121.5 million and $129.3 million as of December 31, 2015 and 2014 , respectively, against certain of our deferred tax assets, as it is more likely than not that such amounts will not be fully realized. In 2015, the valuation allowance decreased by $7.8 million primarily due to (i) the partial release of valuation allowances in jurisdictions with current year operating income and (ii) a reduction of deferred tax assets with a full valuation allowance due to a decrease in foreign exchange rates. These decreases were partially offset by an increase in valuation allowances due to current year operating losses. Except as required under U.S. tax law, we do not provide for U.S. or non-U.S. taxes on the cumulative undistributed earnings of our foreign subsidiaries that have not been previously taxed since we intend to invest such undistributed earnings indefinitely or repatriation of such earnings would not give rise to additional U.S. or non-U.S. taxes. If our intent changes or if these funds are needed for our U.S. or non-U.S. operations, we would be required to accrue or pay U.S. or non-U.S. taxes on some or all of these undistributed earnings. Accordingly, we have not provided for $1.0 billion of deferred income taxes on $2.9 billion of undistributed earnings of our foreign subsidiaries. These taxes would be required to be recognized when and if we determine that these amounts are not indefinitely reinvested. At December 31, 2015 , we had federal and aggregate state net operating loss carryforwards of $129.5 million and $23.8 million , respectively. At December 31, 2014 , we had federal and aggregate state net operating loss carryforwards of $117.3 million and $20.5 million , respectively. If not used, the federal net operating loss carryforwards will expire beginning in 2028 , and the state net operating loss carryforwards will begin to expire in 2016 . The utilization of a portion of our net operating loss carryforwards is subject to an annual limitation under Section 382 of the Internal Revenue Code due to changes in ownership. Based on our analysis, we do not believe such annual limitation will impact our realization of the net operating loss carryforwards as we anticipate utilizing them prior to 2028. At December 31, 2015 our deferred tax assets do not include $24.7 million of excess tax deductions from employee stock option exercises and vested restricted stock units that are included in our net operating loss carryforwards. Our stockholders’ equity will increase by up to $24.7 million if and when we ultimately realize these excess tax benefits. We use tax law ordering to determine when excess tax benefits have been realized. At December 31, 2015 we had gross federal and state research and development credit carryforwards of $32.7 million , U.S. foreign tax credit carryforwards of $167.0 million , and investment tax credits of $56.9 million available to reduce future federal and state income tax liabilities. If not used, the research and development credits, investment tax credits, and U.S. foreign tax credits will begin to expire in 2026 through 2034 , 2026 through 2034 , and 2016 through 2024 , respectively. A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions for the years ended December 31, 2015 , 2014 , and 2013 is as follows (in thousands): 2015 2014 2013 Unrecognized tax benefits, beginning of year $ 162,029 $ 183,239 $ 174,181 Increases related to prior year tax positions 484 522 6,178 Decreases related to prior year tax positions (2,693 ) (2,513 ) (15,245 ) Decreases from lapse in statute of limitations (13,827 ) (28,649 ) — Decreases relating to settlements with authorities (20,485 ) (3,111 ) — Increases related to current tax positions 16,247 12,541 18,125 Unrecognized tax benefits, end of year $ 141,755 $ 162,029 $ 183,239 If recognized, $141.8 million of unrecognized tax benefits would reduce our annual effective tax rate. Due to the uncertain and complex application of tax laws and regulations, it is possible that the ultimate resolution of uncertain tax positions may result in liabilities that could be materially different from these estimates. In such an event, we will record additional tax expense or tax benefit in the period in which such resolution occurs. Our policy is to recognize any interest and penalties that we might incur related to our tax positions as a component of income tax expense. We did not accrue any penalties related to these unrecognized tax benefits during 2015 , 2014 , or 2013 . We also did not accrue any interest related to these unrecognized tax benefits in 2015 and 2014 . We accrued interest related to these unrecognized tax benefits of $0.6 million during 2013 . Within the next twelve months, we do not expect to recognize any previously unrecognized tax benefits. We are subject to audit by U.S. federal, state, local, and foreign tax authorities. During the year ended December 31, 2015 , we settled a tax audit in Spain, which resulted in a discrete tax expense of $3.0 million . We are currently under examination in Chile and also continue to have discussions with the German tax authorities regarding an ongoing dispute. We believe that adequate provisions have been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed by our tax audits are not resolved in a manner consistent with our expectations, we could be required to adjust our provision for income taxes in the period such resolution occurs. The following table summarizes the tax years that are either currently under audit or remain open and subject to examination by the tax authorities in the most significant jurisdictions in which we operate: Tax Years Australia 2011 - 2015 Germany 2010 - 2014 Malaysia 2010 - 2014 United States 2008 - 2009; 2012 - 2014 In certain of the jurisdictions noted above, we operate through more than one legal entity, each of which has different open years subject to examination. The table above presents the open years subject to examination for the most material of the legal entities in each jurisdiction. Additionally, it is important to note that tax years are technically not closed until the statute of limitations in each jurisdiction expires. In the jurisdictions noted above, the statute of limitations can extend beyond the open years subject to examination. |
Note 21. Net Income Per Share
Note 21. Net Income Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Income per Share Disclosure [Text Block] | 21. Net Income per Share Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed giving effect to all potentially dilutive common stock, including restricted and performance stock units and Stock Purchase Plan shares, unless there is a net loss for the period. In computing diluted net income per share, we utilize the treasury stock method. The calculation of basic and diluted net income per share for the years ended December 31, 2015 , 2014 , and 2013 was as follows (in thousands, except per share amounts): 2015 2014 2013 Basic net income per share Numerator: Net income $ 546,421 $ 395,964 $ 350,718 Denominator: Weighted-average common stock outstanding 100,886 100,048 93,697 Diluted net income per share Denominator: Weighted-average common stock outstanding 100,886 100,048 93,697 Effect of restricted and performance stock units and stock purchase plan shares 929 1,595 1,771 Weighted-average shares used in computing diluted net income per share 101,815 101,643 95,468 2015 2014 2013 Per share information – basic: Net income per share $ 5.42 $ 3.96 $ 3.74 Per share information – diluted: Net income per share $ 5.37 $ 3.90 $ 3.67 The following table summarizes the potential shares of common stock that were excluded from the computation of diluted net income per share for the years ended December 31, 2015 , 2014 , and 2013 as they would have had an anti-dilutive effect (in thousands): 2015 2014 2013 Anti-dilutive shares 48 70 86 |
Note 22 Comprehensive Income an
Note 22 Comprehensive Income and Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income Disclosure [Text Block] | 22. Comprehensive Income and Accumulated Other Comprehensive Income Comprehensive income, which includes foreign currency translation adjustments, unrealized gains and losses on available-for-sale securities, and unrealized gains and losses on derivative instruments designated and qualifying as cash flow hedges, the impact of which has been excluded from net income and reflected as components of stockholders’ equity, was as follows for the years ended December 31, 2015 , 2014 , and 2013 (in thousands): 2015 2014 2013 Net income $ 546,421 $ 395,964 $ 350,718 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments (16,432 ) (19,147 ) 4,295 Unrealized (loss) gain on marketable securities and restricted investments for the period, net of tax of $1,248, $(6,644), and $3,334 (15,413 ) 90,868 (39,685 ) Less: reclassification for gains included in net income, net of tax of $0, $83, and $0 (2 ) (127 ) — Unrealized (loss) gain on marketable securities and restricted investments (15,415 ) 90,741 (39,685 ) Unrealized (loss) on derivative instruments for the period, net of tax of $(207), $(711), and $(2,387) (8,572 ) (1,777 ) (596 ) Less: reclassification for losses included in net income, net of tax of $2,278, $(150), and $3,475 5,759 6,099 31 Unrealized (loss) gain on derivative instruments (2,813 ) 4,322 (565 ) Other comprehensive (loss) income, net of tax (34,660 ) 75,916 (35,955 ) Comprehensive income $ 511,761 $ 471,880 $ 314,763 The following tables reflect the changes in accumulated other comprehensive income, net of tax, for the years ended December 31, 2015 and 2014 (in thousands): Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Marketable Securities Unrealized Gain (Loss) on Derivative Instruments Total Balance as of December 31, 2013 $ (34,190 ) $ 11,558 $ (3,144 ) $ (25,776 ) Other comprehensive (loss) income before reclassifications (19,147 ) 90,868 (1,777 ) 69,944 Amounts reclassified from accumulated other comprehensive income — (127 ) 6,099 5,972 Net other comprehensive (loss) income (19,147 ) 90,741 4,322 75,916 Balance as of December 31, 2014 (53,337 ) 102,299 1,178 50,140 Other comprehensive loss before reclassifications (16,432 ) (15,413 ) (8,572 ) (40,417 ) Amounts reclassified from accumulated other comprehensive income — (2 ) 5,759 5,757 Net other comprehensive loss (16,432 ) (15,415 ) (2,813 ) (34,660 ) Balance as of December 31, 2015 $ (69,769 ) $ 86,884 $ (1,635 ) $ 15,480 Details of Accumulated Other Comprehensive Income Amounts Reclassified for the Year Ended December 31, Income Statement Line Item 2015 2014 (Losses) and gains on marketable securities and restricted investments: $ 2 $ 210 Other expense, net — 83 Tax expense $ 2 $ 127 Total, net of tax Gains and (losses) on derivative contracts: Foreign exchange forward contracts $ 1,782 $ — Net sales Foreign exchange forward contracts 5,509 (501 ) Cost of sales Interest rate and cross currency swap contracts (10,135 ) (698 ) Interest expense, net Cross currency swap contract (637 ) (5,050 ) Foreign currency (loss) gain, net (3,481 ) (6,249 ) Total before tax (2,278 ) 150 Tax expense $ (5,759 ) $ (6,099 ) Total, net of tax |
Note 23. Segment and Geographic
Note 23. Segment and Geographical Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | 23. Segment and Geographical Information We operate our business in two segments. Our components segment involves the design, manufacture, and sale of solar modules which convert sunlight into electricity. We primarily manufacture CdTe modules and also manufacture high-efficiency crystalline silicon modules. Third-party customers of our components segment include integrators and operators of PV solar power systems. Our second segment is our fully integrated systems business (“systems segment”), through which we provide complete turn-key PV solar power systems, or solar solutions, that draw upon our capabilities, which include (i) project development, (ii) EPC services, and (iii) O&M services. We may provide our full EPC services or any combination of individual products and services within our EPC capabilities depending upon the customer and market opportunity. All of our systems segment products and services are for PV solar power systems, which primarily use our solar modules, and we sell such products and services to utilities, independent power producers, commercial and industrial companies, and other system owners. Additionally, within our systems segment, we may temporarily own and operate certain of our PV solar power systems for a period of time based on strategic opportunities. Our Chief Operating Decision Maker (“CODM”), consisting of certain members of our senior executive officers, views both the manufacturing of solar modules from our components segment and our ability to provide customers with a complete PV solar power system through our fully integrated systems segment as the primary drivers of our resource allocation, profitability, and cash flows. Our components segment contributes to our operating results by providing the fundamental technologies and solar modules that drive our business, and our systems segment contributes to our operating results by using these modules as part of a range of comprehensive PV solar energy solutions to meet our customers’ needs. In our reportable segment financial disclosures, we include an allocation of net sales value for all solar modules manufactured by our components segment and installed in projects sold or built by our systems segment in the net sales of our components segment. In the gross profit of our reportable segment disclosures, we include the corresponding cost of sales value for the solar modules installed in projects sold or built by our systems segment in the components segment. The cost of solar modules is comprised of the manufactured cost incurred by our components segment. After we have determined the amount of revenue earned for our systems projects following the applicable accounting guidance for the underlying sales arrangements, we allocate module revenue from the systems segment to the components segment based on how our CODM strategically views these segments. The amount of module revenue allocated from the systems segment to the components segment approximates the average selling price for such solar modules as if the modules were sold to a third-party EPC customer. In order to develop our estimate of the average selling price used for this revenue allocation, we utilize a combination of our actual third-party module sales transactions, our competitor benchmarking, and our internal pricing lists used to provide module price quotes to potential customers. This allocation methodology and the estimated average selling prices are consistent with how our CODM views the value proposition our components segment brings to a utility-scale systems project and how our CODM reviews financial information to assess the performance of the components segment. Our components and systems segments have certain of their own dedicated administrative key functions, such as accounting, legal, finance, project finance, human resources, procurement, and marketing. Costs for these functions are recorded and included within the respective selling, general and administrative costs for our components and systems segments. Our corporate key functions consist primarily of company-wide corporate tax, corporate treasury, corporate accounting/finance, corporate legal, investor relations, corporate communications, and executive management functions. These corporate functions and the assets supporting such functions benefit both the components and systems segments. We allocate corporate costs to the components and systems segments as part of selling, general and administrative costs, based upon the estimated benefits provided to each segment from these corporate functions. We determine the estimated benefits provided to each segment for these corporate costs based upon a combination of the estimated time spent by corporate employees supporting each segment and the average relative selling, general and administrative costs incurred by each segment before such corporate allocations. Infrequent and other miscellaneous costs including restructuring and manufacturing excursions are included in the components or systems segment operating results based upon which segment incurred the underlying costs. Financial information about our reportable segments during the years ended December 31, 2015 , 2014 , and 2013 was as follows (in thousands): Year Ended December 31, 2015 Components Systems Total Net sales $ 1,389,579 $ 2,189,416 $ 3,578,995 Gross profit (1) 347,853 571,414 919,267 Depreciation and amortization expense 243,898 14,124 258,022 Income before income taxes (1) 171,817 348,018 519,835 Goodwill 16,152 68,833 84,985 Total assets 4,037,955 3,278,376 7,316,331 Year Ended December 31, 2014 Components Systems Total Net sales $ 1,102,674 $ 2,288,513 $ 3,391,187 Gross profit 93,510 731,431 824,941 Depreciation and amortization expense 223,381 23,268 246,649 (Loss) income before income taxes (105,531 ) 537,632 432,101 Goodwill 16,152 68,833 84,985 Total assets 4,168,060 2,552,931 6,720,991 Year Ended December 31, 2013 Components Systems Total Net sales $ 1,173,947 $ 2,135,669 $ 3,309,616 Gross profit 88,506 776,126 864,632 Depreciation and amortization expense 211,357 27,417 238,774 (Loss) income before income taxes (221,230 ) 602,209 380,979 (1) The operating results for our components segment for the year ended December 31, 2015 include the impact of the $80.0 million reduction in our module collection and recycling liability. See Note 14 “Solar Module Collection and Recycling Liability” to our consolidated financial statements for more information regarding the change in this liability. Product Revenue The following table sets forth the total amounts of solar module and solar power system net sales recognized for the years ended December 31, 2015 , 2014 , and 2013 . For the purposes of the following table, (i) “Solar module revenue” is composed of total revenues from the sale of solar modules to third parties, which does not include any systems segment product or service offerings, and (ii) “Solar power system revenue” is composed of total revenues from the sale of our PV solar power systems and related products and services, including the solar modules installed in such solar power systems along with any revenue generated from our PV solar power systems (in thousands): 2015 2014 2013 Solar module revenue $ 227,461 $ 228,319 $ 380,869 Solar power system revenue 3,351,534 3,162,868 2,928,747 Net sales $ 3,578,995 $ 3,391,187 $ 3,309,616 The following table presents net sales for the years ended December 31, 2015 , 2014 , and 2013 by geographic region, which is based on the customer country of invoicing (in thousands): 2015 2014 2013 United States $ 3,117,797 $ 3,042,006 $ 2,832,102 Germany 63,709 121,941 142,028 India 134,462 44,118 8,253 Australia 185,064 157,152 604 France — 8,409 35,772 Canada 6,188 7,085 264,573 United Arab Emirates — 569 21,137 Honduras 48,773 — — All other foreign countries 23,002 9,907 5,147 Net sales $ 3,578,995 $ 3,391,187 $ 3,309,616 The following table presents long-lived assets, which includes property, plant and equipment, PV solar power systems, and project assets and deferred project costs as of December 31, 2015 and 2014 by geographic region, based on the physical location of the assets (in thousands): 2015 2014 United States $ 1,434,891 $ 1,206,333 Malaysia 788,086 936,482 Chile 270,623 103,604 All other foreign countries 183,354 59,664 Long-lived assets $ 2,676,954 $ 2,306,083 |
Note 24. Concentrations of Risk
Note 24. Concentrations of Risks | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure | 24. Concentrations of Risks Customer Concentration. The following customers each comprised 10% or more of our total net sales and/or 10% or more of our total accounts receivable during the years ended December 31, 2015 , 2014 , and 2013 (dollars in thousands): 2015 2014 2013 Net Sales % of Total NS A/R Outstanding % of Total A/R Net Sales % of Total NS A/R Outstanding % of Total A/R Net Sales % of Total NS Customer #1 * * $ 69,452 15 % * * * * * * Customer #2 * * * * * * $ 18,549 14 % * * Customer #3 $ 1,060,074 30 % $ 96,956 21 % $ 1,065,862 31 % * * * * Customer #4 * * * * $ 524,678 15 % $ 32,612 24 % $ 664,669 20 % Customer #5 * * * * * * $ 17,199 13 % * * Customer #6 $ 946,820 26 % $ 216,296 48 % $ 467,941 14 % * * $ 584,638 18 % * Net sales and/or accounts receivable to these customers were less than 10% of our total net sales and/or accounts receivable during the period. Geographic Risk. During 2015 , our third-party solar modules net sales were predominantly in India and Great Britain, and our solar power system net sales were predominantly in the United States. This concentration of our net sales in a limited number of geographic regions exposes us to local economic, public policy, and regulatory risks in such regions. Production. Our products include components that are available from a limited number of suppliers or sources. Shortages of essential components could occur due to increases in demand or interruptions of supply, thereby impairing our ability to meet customer demand for our products. Our solar modules are produced in facilities in Perrysburg, Ohio and Kulim, Malaysia. Damage to or disruption of these facilities could interrupt our business and impair our ability to generate net sales. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS For the Years Ended December 31, 2015 , 2014 , and 2013 Description Balance at Beginning of Year Additions Deductions Balance at End of Year (In thousands) Allowance for doubtful accounts receivable Year ended December 31, 2013 $ 14,503 $ 2,489 $ (4,682 ) $ 12,310 Year ended December 31, 2014 12,310 24 (5,226 ) 7,108 Year ended December 31, 2015 7,108 11 (7,117 ) 2 |
Note 2. Summary of Significan33
Note 2. Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. These consolidated financial statements include the accounts of First Solar, Inc. and all of its subsidiaries and are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). We eliminated all intercompany transactions and balances during consolidation. Investments in unconsolidated affiliates in which we have less than a controlling interest are accounted for using the cost or equity method of accounting. Certain prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not have a material effect on our consolidated financial statements. In addition, the method of reporting the consolidated statements of cash flows was changed from the direct to the indirect method. |
Use of Estimates | Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and the accompanying notes. On an ongoing basis, we evaluate our estimates, including those related to percentage-of-completion revenue recognition, inventory valuation, recoverability of project assets and photovoltaic (“PV”) solar power systems, estimates of future cash flows from and the economic useful lives of long-lived assets, asset retirement obligations, certain accrued liabilities, income taxes and tax valuation allowances, reportable segment allocations, product warranties and manufacturing excursions, solar module collection and recycling liabilities, and applying the acquisition method of accounting for business combinations and goodwill. Despite our intention to establish accurate estimates and reasonable assumptions, actual results could differ materially from these estimates and assumptions. |
Fair Value Measurements | Fair Value Measurements. We measure certain financial assets and liabilities at fair value. As of December 31, 2015 , our financial assets and liabilities consisted principally of cash and cash equivalents, marketable securities, trade accounts receivable, unbilled accounts receivable and retainage, notes receivable, restricted cash and investments, derivative contracts, accounts payable, income taxes payable, accrued expenses, and debt. Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (i.e., an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. Accounting standards include disclosure requirements around fair values used for certain financial instruments and establish a fair value hierarchy. The hierarchy prioritizes valuation inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of three levels: • Level 1 – Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. • Level 2 – Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and value drivers are observable in active markets are Level 2 valuation techniques. • Level 3 – Valuation techniques in which one or more significant inputs or value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect our own assumptions about the assumptions that market participants would use to price an asset or liability. When available, we use quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, we measure fair value using valuation techniques that use, when possible, current market-based or independently-sourced market parameters, such as interest rates and currency rates. |
Cash and Cash Equivalents | Cash and Cash Equivalents. We consider all highly liquid investments with original maturities of 90 days or less at the time of purchase to be cash equivalents. |
Marketable Securities - Current and Noncurrent and Restricted Investments | Marketable Securities – Current and Noncurrent and Restricted Investments. We determine the classification of our marketable securities and restricted investments at the time of purchase and reevaluate such designation at each balance sheet date. We have classified our marketable securities and restricted investments as available-for-sale. These marketable securities and restricted investments are recorded at fair value and unrealized gains and losses are recorded to “ Accumulated other comprehensive income ” until realized. Realized gains and losses on sales of these marketable securities and restricted investments are reported in earnings, computed using the specific identification method. We may sell marketable securities prior to their stated maturities after consideration of our liquidity requirements. We view unrestricted securities with maturities beyond 12 months as available to support current operations and, accordingly, classify all such securities as current assets under the caption marketable securities in the consolidated balance sheets. Restricted investments consist of long-term duration marketable securities that we hold through a custodial account to fund the estimated future costs of our solar module collection and recycling obligations. Accordingly, we classify all restricted investments as noncurrent assets under the caption “ Restricted cash and investments ” in the consolidated balance sheets. All of our available-for-sale marketable securities and restricted investments are subject to a periodic impairment review. We consider a marketable security or restricted investment to be impaired when its fair value is less than its carrying cost, in which case we would further review the marketable security or restricted investment to determine if it is other-than-temporarily impaired. When we evaluate a marketable security or restricted investment for other-than-temporary impairment, we review factors such as the length of time and the extent to which its fair value has been below its cost basis, the financial conditions of the issuer and any changes thereto, our intent to sell, and whether it is more likely than not that we will be required to sell the marketable security or restricted investment before we have recovered its cost basis. If a marketable security or restricted investment were other-than-temporarily impaired, we would write it down through “ Other expense, net ” to its impaired value and establish that value as a new cost basis for the marketable security or restricted investment. |
Derivatives Instruments | Derivative Instruments. We recognize derivative instruments on our consolidated balance sheets at their fair value. On the date that we enter into a derivative contract, we designate the derivative instrument as a fair value hedge, a cash flow hedge, a hedge of a net investment in a foreign operation, or a derivative instrument that will not be accounted for using hedge accounting methods. As of December 31, 2015 and 2014 , all of our derivative instruments were designated either as cash flow hedges or as derivative instruments not accounted for using hedge accounting methods. We record changes in the fair value of a derivative instrument that is highly effective and that is designated and qualifies as a cash flow hedge in “ Other comprehensive income, net of tax ” until our earnings are affected by the variability of cash flows of the underlying hedge. We record any hedge ineffectiveness and amounts excluded from effectiveness testing in current period earnings within “ Other expense, net .” We report changes in the fair values of derivative instruments that are not designated or do not qualify for hedge accounting in current period earnings. We classify cash flows from derivative instruments on the consolidated statements of cash flows in the same category as the item being hedged or on a basis consistent with the nature of the instrument. We formally document all relationships between hedging instruments and the underlying hedged items, as well as our risk-management objective and strategy for undertaking various hedge transactions, at the inception of the hedge. We support all of our derivatives with documentation specifying the underlying exposure being hedged. We also formally assess (both at the hedge’s inception and on an ongoing basis) whether the derivative instruments that we use in hedging transactions have been highly effective in offsetting changes in the fair value or cash flows of the underlying hedged items and whether those derivatives are expected to remain highly effective in future periods. When we determine that a derivative instrument is not highly effective as a hedge, we discontinue hedge accounting prospectively. In all situations in which we discontinue hedge accounting and the derivative instrument remains outstanding, we will carry the derivative instrument at its fair value on our consolidated balance sheets and recognize subsequent changes in its fair value in our current period earnings. |
Receivables and Allowance for Doubtful Accounts | Receivables and Allowance for Doubtful Accounts . The carrying value of our receivables, net of the allowance for doubtful accounts, represents their estimated net realizable value. We estimate our allowance for doubtful accounts based on historical collection trends, the age of outstanding receivables, and existing economic conditions. If events or changes in circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances, and the allowance is adjusted accordingly. Past-due receivable balances are written off when our internal collection efforts have been unsuccessful. |
Retainage | Retainage. Certain of our engineering, procurement, and construction (“EPC”) contracts for solar power plants we build contain retainage provisions. 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. We consider whether collectability of such retainage is reasonably assured in connection with our overall assessment of the collectability of amounts due or that will become due under our EPC contracts. Retainage expected to be collected within 12 months is classified within “ Accounts receivable, unbilled and retainage ” on the consolidated balance sheets. Retainage expected to be collected after 12 months is classified within “ Other assets ” on the consolidated balance sheets. After we have met the EPC contract requirements to bill for retainage, we will reclassify such amounts to “ Accounts receivable trade, net .” |
Inventories - Current and Noncurrent | Inventories – Current and Noncurrent. We report our inventories at the lower of cost or net realizable value. We determine cost on a first-in, first-out basis and include both the costs of acquisition and the costs of manufacturing in our inventory costs. These costs include direct material, direct labor, and indirect manufacturing costs, including depreciation and amortization. Our capitalization of costs into inventory is based on the normal utilization of our plants. If our plant utilization is abnormally low, the portion of our indirect manufacturing costs related to the abnormal utilization level is expensed as incurred. Finished goods inventory is comprised exclusively of solar modules that have not yet been installed in a solar power plant under construction or sold to a third-party customer. We regularly review the cost of inventories, including noncurrent inventories, against their estimated net realizable value and record write-downs if any inventories have costs in excess of their net realizable values. We also regularly evaluate the quantities and values of our inventories, including noncurrent inventories, in light of current market conditions and market trends, among other factors, and record write-downs for any quantities in excess of demand and for any new obsolescence. This evaluation considers the use of modules in our systems business, historical usage, expected demand, anticipated sales prices, desired strategic raw material requirements, new product development schedules, the effect new products might have on the sale of existing products, product obsolescence, customer concentrations, product merchantability, and other factors. Market conditions are subject to change, and actual consumption of our inventory could differ from forecasted demand. We purchase a critical raw material that is used in our core production process in quantities that exceed anticipated consumption within our normal operating cycle (which is 12 months). We classify such raw materials that we do not expect to be consumed within our operating cycle as noncurrent. |
Balance of Systems Parts | Balance of Systems Parts. BoS parts represent mounting, electrical, and other construction parts purchased for PV solar power systems to be constructed or currently under construction, which we hold title to and are not yet installed in a system. Such construction parts include 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. We carry these parts at the lower of cost or net realizable value, with such value being based primarily on recoverability through installation in a solar power system or recoverability through a sales agreement. BoS parts do not include any solar modules that we manufacture. |
Asset Impairments | Asset Impairments. We assess long-lived assets classified as “held and used,” including our property, plant and equipment, project assets, and PV solar power systems for impairment whenever events or changes in business circumstances arise that may indicate that the carrying amount of our long-lived assets may not be recoverable. These events and changes can include significant current period operating losses or negative cash flows associated with the use of a long-lived asset, or group of assets, combined with a history of such factors, significant changes in the manner of use of the assets, and current expectations that it is more likely than not that a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. For purposes of recognition and measurement of an impairment loss, 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. When impairment indicators are present, we compare undiscounted future cash flows, including the eventual disposition of the asset group at market value, to the asset group’s carrying value to determine if the asset group is recoverable. If the carrying values are in excess of undiscounted expected future cash flows, we measure any impairment by comparing the fair value of the asset or asset group to its carrying value. Fair value is generally determined by considering (i) internally developed discounted projected cash flow analysis of the asset or asset group, (ii) actual third-party valuations, and/or (iii) information available regarding the current market for similar assets. If the fair value of an asset or asset group is determined to be less than the carrying amount of the asset or asset group, an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs and is included in “ Restructuring and asset impairments ” in our consolidated statement of operations. Estimating future cash flows requires significant judgment, and projections may vary from the cash flows eventually realized, which could impact our ability to accurately assess whether an asset has been impaired. We consider a long-lived asset to be abandoned after we have ceased use of such asset and we have no intent to use or re-purpose the asset in the future. We classify each long-lived tangible asset we plan to sell, excluding PV solar power systems, as an asset held for sale on our consolidated balance sheets only after certain criteria have been met including: (i) management has the authority and commits to a plan to sell the asset; (ii) the asset is available for immediate sale in its present condition; (iii) there is an active program to locate a buyer, and the plan to sell the asset has been initiated; (iv) the sale of the asset is probable within 12 months; (v) the asset is being actively marketed at a reasonable sales price relative to its current fair value; and (vi) it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made. We record assets held for sale at the lower of their carrying value or fair value less costs to sell. If, due to unanticipated circumstances, such assets are not sold in the 12 months after being classified as held for sale, then held for sale classification will continue as long as the above criteria are still met and the asset is being actively marketed at a reasonable sales price relative to its then current fair value. We assess held for sale long-lived assets for impairment whenever events or circumstances arise that may indicate that the carrying amount of our held for sale long-lived assets may not be recoverable. Depreciation and amortization expense is not recorded on assets once they are classified as assets held for sale. |
Property, Plant and Equipment | Property, Plant and Equipment. We report our property, plant and equipment at cost, less accumulated depreciation. Cost includes the price paid to acquire or construct the assets, required installation costs, interest capitalized during the construction period, and any expenditure that substantially adds to the value of or substantially extends the useful life of an existing asset. We expense repair and maintenance costs at the time we incur them. We begin depreciation for such assets when they are placed into service. We consider an asset to be placed into service when the asset is both in the location and condition for its intended use. We compute depreciation expense using the straight-line method over the estimated useful lives of assets, as presented in the table below. We depreciate leasehold improvements over the shorter of their estimated useful lives or the remaining term of the lease. The estimated useful life of an asset is reassessed whenever applicable facts and circumstances indicate a change in the estimated useful life of such asset has occurred. Useful Lives in Years Buildings and building improvements 25 – 40 Manufacturing machinery and equipment 5 – 7 Furniture, fixtures, computer hardware, and computer software 3 – 7 Leasehold improvements up to 15 Idle Property, Plant and Equipment. For property, plant and equipment that has been placed into service, but is subsequently idled temporarily, we continue to record depreciation expense during the idle period. We adjust the estimated useful lives of the idled assets if the estimated useful lives have changed. At December 31, 2015 , the current net book value of our temporarily idled equipment was $4.0 million . |
PV Solar Power Systems | PV Solar Power Systems. PV solar power systems represent solar systems that we may temporarily own and operate after being placed into service. We report our PV solar power systems at cost, less accumulated depreciation. When we are entitled to incentive tax credits for our systems, we reduce the related carrying value of the assets by the amount of the tax credits, which reduces future depreciation. Any energy generated by the systems prior to being placed into service is accounted for as a reduction in the related carrying value of the assets. We begin depreciation for PV solar power systems when they are placed into service. We compute depreciation expense for the systems using the straight-line method over the shortest of the term of the related power purchase agreement (“PPA”), the lease on the land, or 25 years. Our current PV solar power systems have estimated useful lives ranging from 15 to 25 years. We sell energy generated by our PV solar power systems under PPAs or on an open contract basis. We recognize revenue from such sales at the time the energy is delivered to our customers or the grid (in the case of merchant power). For the year ended December 31, 2015 , we recognized revenue from our PV solar power systems of $9.8 million . |
Asset Retirement Obligations | Asset Retirement Obligations. We develop, construct, and operate certain project assets and PV solar power systems under power purchase or other agreements that include a requirement for the removal of the assets at the end of the term of the agreement. We recognize asset retirement obligations (“AROs”) at fair value in the period in which they are incurred, and the carrying amounts of the related project assets or PV solar power systems are correspondingly increased. AROs represent the present value of the expected costs and timing of the related decommissioning activities. At December 31, 2015 and 2014 , our AROs totaled $15.9 million and $6.7 million , respectively. |
Internal-Use Software Costs | Internal-Use Software Costs. We capitalize the costs related to computer software obtained or developed for internal use. Software obtained for internal use has generally been enterprise-level business and finance software that we customize to meet our specific operational requirements. The capitalized costs are amortized on a straight-line basis over the estimated useful life of the software, ranging from 3 to 7 years. |
Interest Capitalization | Interest Capitalization . We capitalize interest as part of the historical cost of acquiring or constructing certain assets during the period of time required to place the assets into service or sell the assets to customers. These assets include property, plant and equipment and PV solar power system development and construction costs that we have capitalized as project assets. Interest capitalized for property, plant and equipment is depreciated over the estimated useful life of the related assets when they are placed into service. We charge interest capitalized for project assets to cost of sales when such assets are sold and we have met all revenue recognition criteria. We capitalize interest to the extent that expenditures to acquire, construct, or develop an asset have occurred and interest cost has been incurred. We cease capitalization of interest for projects in development or under construction if the projects are substantially complete or if we receive any payment for or have sold such projects. |
Project Assets | Project Assets. 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 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 consolidated balance sheets 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). In addition, we present all expenditures related to the development and construction of project assets or deferred project costs, whether fully or partially owned, as a component of cash flows from operating activities. 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. We review project assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. We consider a project commercially viable or recoverable if it is anticipated to be sold for a profit once it is either fully developed or fully constructed. We consider a partially developed or partially constructed project commercially viable or recoverable if the anticipated selling price is higher than the carrying value of the related project assets. We examine a number of factors to determine if the project will be recoverable, the most notable of which include whether there are any changes in environmental, ecological, permitting, market pricing, or regulatory conditions that impact the project. Such changes could cause the costs of the project to increase or the selling price of the project to decrease. If a project is not considered recoverable, we impair the respective project assets and adjust the carrying value to the estimated recoverable amount, with the resulting impairment recorded within operating expenses. |
Deferred Project Costs | Deferred Project Costs. 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 or our decision to temporarily hold such project. 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. The following table summarizes the balance sheet classification of project assets and deferred project costs: Milestone Arrangements Accounted for under ASC 360-20 (Real Estate Sales) Arrangements Accounted for under ASC 605-35 (Long-Term Construction Contracts) Execution of a definitive sales arrangement, but all revenue recognition criteria are not yet met Deferred project costs Deferred project costs Pre-execution of a definitive sales arrangement Project asset Deferred project costs (recoverable pre-contract costs) |
Accounts Receivable, Unbilled | Accounts Receivable, Unbilled . 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. |
Billing in Excess of Cost and Estimated Earnings | Billings in Excess of Costs and Estimated Earnings. The liability “ Billings in excess of costs and estimated earnings ” represents 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. The liability “ Payments and billings for deferred project costs ” represents 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 associated solar power project costs are included within 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. |
Deferred Revenue | Deferred Revenue. Deferred revenue consists of payments received in advance of meeting all revenue recognition criteria (with the exception of payments and billings for deferred project costs) for the sale of solar modules or services performed under our O&M agreements. We recognize deferred revenue as net sales after all revenue recognition criteria are met. |
Business Combinations | Business Combinations. We account for business acquisitions using the acquisition method of accounting and record intangible assets separate from goodwill. Intangible assets are recorded at fair value based on estimates as of the date of acquisition. Goodwill is recorded as the residual amount of the purchase price consideration less the fair value assigned to the individual assets acquired and liabilities assumed as of the date of acquisition. We charge acquisition related costs that are not part of the purchase price consideration to general and administrative expense as they are incurred. These costs typically include transaction and integration costs, such as legal, accounting, and other professional fees. Contingent consideration, which represents an obligation of the acquirer to transfer additional assets or equity interests to the former owner as part of the exchange if specified future events occur or conditions are met, is accounted for at fair value either as a liability or as equity depending on the terms of the acquisition agreement. |
Goodwill | Goodwill. 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 Accounting Standards Codification (“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. We may first make a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying value to determine whether it is necessary to perform the two-step goodwill impairment test. The qualitative impairment test considers various factors including macroeconomic conditions, industry and market considerations, cost factors, the overall financial performance of a reporting unit, and any other relevant events affecting the entity or its reporting units. If we determine through the qualitative assessment that a reporting unit’s fair value is more likely than not greater than its carrying value, the two-step impairment test is not required. If the qualitative assessment indicates it is more likely than not that a reporting unit’s fair value is less than its carrying value, we must perform the two-step impairment test. We may also elect to proceed directly to the two-step impairment test without considering such qualitative factors. The first step in a two-step impairment test is the comparison of the fair value of a reporting unit with its carrying amount, including goodwill. Our reporting units consist of our fully integrated systems business, cadmium telluride (“CdTe”) module manufacturing business, and our crystalline silicon module manufacturing business from our TetraSun acquisition in 2013. In accordance with the authoritative guidance over fair value measurements, we define the fair value of a reporting unit as the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. We primarily use the income approach methodology of valuation, which includes the discounted cash flow method, to estimate the fair values of our reporting units. Significant management judgment is required when estimating the fair value of our reporting units including the forecasting of future operating results and the selection of discount and expected future growth rates that we use in determining the projected cash flows. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is not impaired and no further analysis is required. If the carrying value of a reporting unit exceeds its estimated fair value in the first step, then we are required to perform the second step of the impairment test. In this step, we assign the fair value of the reporting unit calculated in step one to all of the assets and liabilities of the reporting unit, as if a market participant just acquired the reporting unit in a business combination. The excess of the fair value of the reporting unit determined in the first step of the impairment test over the total amount assigned to the assets and liabilities in the second step of the impairment test represents the implied fair value of goodwill. If the carrying value of a reporting unit’s goodwill exceeds the implied fair value of goodwill, we would record an impairment loss equal to the difference. If there is no such excess, then all goodwill for a reporting unit is considered impaired. See Note 6 “Goodwill and Intangible Assets” for additional information on our goodwill impairment tests. |
In-Process Research and Development | In-Process Research and Development. In-process research and development (“IPR&D”) is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When the IPR&D project is complete, it is reclassified as a definite-lived intangible asset and amortized over its estimated useful life. If an IPR&D project is abandoned, we will record a charge for the value of the related intangible asset to our consolidated statement of operations in the period it is abandoned. |
Product Warranties | Product Warranties. We provide a limited PV solar module warranty covering defects in materials and workmanship under normal use and service conditions for 10 years following the transfer of title to our modules. We also typically warrant that modules installed in accordance with agreed-upon specifications will produce at least 97% of their labeled power output rating during the first year, with the warranty coverage reducing by 0.7% every year thereafter throughout the 25 -year performance warranty period. Prior to 2014, we warranted that modules installed in accordance with agreed-upon specifications would produce at least 90% of their labeled power output rating during the first 10 years following installation and at least 80% of their labeled power output rating during the following 15 years. In resolving claims under both the defect and power output warranties, we have the option of either repairing or replacing the covered modules or, under the power output warranty, providing additional modules to remedy the power shortfall. We also have the option to make a payment for the then current market price of modules to resolve the claims. Such limited module warranties are standard for module sales and are automatically transferred from the original purchasers of the solar modules to subsequent purchasers upon resale. As an alternative form of our standard limited module power output warranty, we also offer an aggregated or system level limited module performance warranty. This system level limited module performance warranty is designed for utility-scale systems and provides 25 -year system level energy degradation protection. In addition, this warranty represents a practical expedient to address the challenge of identifying, from the potential millions of modules installed in a utility-scale system, individual modules that may be performing below warranty thresholds by focusing on the aggregate energy generated by the system rather than the power output of individual modules. The system level module performance warranty typically is calculated as a percentage of a system’s expected energy production, adjusted for certain actual site conditions, with the warranted level of performance declining each year in a linear fashion, but never falling below 80% during the term of the warranty. In resolving claims under the system level limited module performance warranty to restore the system to warranted performance levels, we first must validate that the root cause of the issue is due to module performance; we then have the option of either repairing or replacing the covered modules, providing supplemental modules, or making a cash payment. Consistent with our limited module power output warranty, when we elect to satisfy a warranty claim by providing replacement or supplemental modules under the system level module performance warranty, we do not have any obligation to pay for the labor to remove or install modules. In addition to our limited solar module warranty described above, for PV solar power systems built by us, we typically provide a limited product warranty on BoS parts for defects in engineering design, installation, and workmanship for a period of one to two years following the substantial completion of a system. In resolving claims under such BoS warranties, we have the option of remedying the defect through repair or replacement. When we recognize revenue for module or systems sales, we accrue liabilities for the estimated future costs of meeting our limited warranty obligations. We make and revise these estimates based primarily on the number of our solar modules under warranty installed at customer locations, our historical experience with warranty claims, our monitoring of field installation sites, our internal testing of and the expected future performance of our solar modules and BoS components, and our estimated per-module replacement costs. From time to time, we have taken remediation actions with respect to affected modules beyond our limited warranties, and we may elect to do so in the future, in which case we would incur additional expenses. Such potential voluntary future remediation actions beyond our limited warranty obligations could be material to our consolidated statement of operations if we commit to any such remediation actions. |
Accrued Solar Module Collection and Recycling Liability | Accrued Solar Module Collection and Recycling Liability. We recognize expense at the time of sale for the estimated cost of our future obligations for collecting and recycling solar modules covered by our collection and recycling program. See Note 14 “Solar Module Collection and Recycling Liability” for further information. |
Income Taxes | Income Taxes. We use the asset and liability method to account for income taxes whereby we calculate the deferred tax asset or liability account balances using tax laws and rates in effect at that time. We establish valuation allowances, when necessary, to reduce deferred tax assets to the extent it is more likely than not that such deferred tax assets will not be realized. We do not provide deferred taxes related to the U.S. GAAP basis in excess of the outside tax basis in the investment in our foreign subsidiaries to the extent such amounts relate to indefinitely reinvested earnings and profits of such foreign subsidiaries. Income tax expense includes (i) deferred tax expense, which generally represents the net change in the deferred tax asset or liability balance during the year plus any change in valuation allowances, and (ii) current tax expense, which represents the amount of tax currently payable to or receivable from taxing authorities. We only recognize tax benefits related to uncertain tax positions that are more likely than not of being sustained upon examination. For those positions that satisfy such recognition criteria, the amount of tax benefit that we recognize is the largest amount of tax benefit that is more likely than not of being sustained on ultimate settlement of the uncertain tax position. |
Foreign Currency Translation | Foreign Currency Translation. The functional currencies of certain of our international subsidiaries are their local currencies. Accordingly, we apply the period-end exchange rates to translate their assets and liabilities, and the daily transaction exchange rates are used to translate their revenues, expenses, gains, and losses into U.S. dollars. We include the translation adjustments as a separate component of “ Accumulated other comprehensive income ” within stockholders’ equity. The functional currency of our subsidiaries in Canada, Malaysia, Singapore, and Chile is the U.S. dollar; therefore, we do not translate their financial statements. Gains and losses arising from the remeasurement of monetary assets and liabilities denominated in currencies other than a subsidiary’s functional currency are included in “ Foreign currency (loss) gain, net ” in the period in which they occur. |
Comprehensive Income | Comprehensive Income. Our comprehensive income consists of our net income, the effects on our consolidated financial statements of translating the financial statements of our subsidiaries that operate in foreign currencies, the unrealized gains or losses on available-for-sale marketable securities and restricted investments, and the unrealized gains or losses on derivative instruments that qualify for and have been designated as cash flow hedges. We present our comprehensive income in the consolidated statements of comprehensive income. Our “ Accumulated other comprehensive income ” is presented as a component of stockholders’ equity in our consolidated balance sheets. |
Per Share Data | Per Share Data. Basic net income per share is based on the weighted effect of all common shares outstanding and is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is based on the weighted effect of all common shares and dilutive potential common shares outstanding and is calculated by dividing net income by the weighted average number of common shares and dilutive potential common shares outstanding during the period. |
Revenue Recognition | Revenue Recognition – Systems Business . We recognize revenue for arrangements entered into by our systems business generally using two revenue recognition models, following the guidance in either ASC 605-35, Construction-Type and Production-Type Contracts , or ASC 360-20, Real Estate Sales, for arrangements which include land or land rights. Systems business sales arrangements in which we construct a PV solar power system for a specific customer on land that is controlled by the customer, and has not been previously controlled by First Solar, are accounted for under ASC 605-35. For such sales arrangements, we use the percentage-of-completion method, as described further below, using actual costs incurred over total estimated costs to develop and construct the system (including module costs) as our standard accounting policy. Systems business sales arrangements in which we convey control of land or land rights as part of the transaction are accounted for under ASC 360-20. Accordingly, we use one of the following revenue recognition methods, based upon an evaluation of the substance and form of the terms and conditions of such real estate sales: (i) We apply the percentage-of-completion method, as further described below, to certain real estate sales arrangements in which we convey control of land or land rights, when a sale has been consummated, we have transferred the usual risks and rewards of ownership to the buyer, the initial and continuing investment criteria have been met, we have the ability to estimate our costs and progress toward completion, and all other revenue recognition criteria have been met. When evaluating whether the usual risks and rewards of ownership have transferred to the buyer, we consider whether we have or may be contingently required to have any prohibited forms of continuing involvement with the project pursuant to ASC 360-20. The initial and continuing investment requirements, which demonstrate a buyer’s commitment to honor its obligations for the sales arrangement, can typically be met through the receipt of cash or an irrevocable letter of credit from a highly creditworthy lending institution. (ii) Depending on whether the initial and continuing investment requirements have been met and whether collectability from the buyer is reasonably assured, we may align our revenue recognition and release of project assets or deferred project costs to cost of sales with the receipt of payment from the buyer if the sale has been consummated and we have transferred the usual risks and rewards of ownership to the buyer. For any systems business sales arrangements containing multiple deliverables (including our solar modules) not required to be accounted for under ASC 605-35 (long-term construction contracts) or ASC 360-20 (real estate), we analyze each activity within the sales arrangement to adhere to the separation guidelines of ASC 605-25 for multiple-element arrangements. We allocate revenue for any transactions involving multiple elements to each unit of accounting based on its relative selling price and recognize revenue for each unit of accounting when all revenue recognition criteria for a unit of accounting have been met. Revenue Recognition – Percentage-of-Completion. In applying the percentage-of-completion method, we use the actual costs incurred relative to the total estimated costs (including module costs) in order to determine the progress towards completion and calculate the corresponding amount of revenue and profit to recognize. Costs incurred include direct materials, solar modules, labor, subcontractor costs, and those indirect costs related to contract performance, such as indirect labor and supplies. We recognize direct material and solar module costs as incurred when the direct materials and solar modules have been installed in the project. When contracts specify that title to direct materials and solar modules transfers to the customer before installation has been performed, we will not recognize revenue or the associated costs until those materials are installed and have met all other revenue recognition requirements. We consider direct materials and solar modules to be installed when they are permanently placed or affixed to a PV solar power system as required by engineering designs. Solar modules manufactured and owned by us that will be used in our systems remain within inventory until such modules are installed in a system. The percentage-of-completion method of revenue recognition requires us to make estimates of net contract revenues and costs to complete our projects. In making such estimates, management judgments are required to evaluate significant assumptions including the amount of net contract revenues, the cost of materials and labor, expected labor productivity, the impact of potential variances in schedule completion, and the impact of any penalties, claims, change orders, or performance incentives. If estimated total costs on any contract are greater than the net contract revenues, we recognize the entire estimated loss in the period the loss becomes known. The cumulative effect of the revisions to estimates related to net contract revenues and costs to complete contracts, including penalties, claims, change orders, performance incentives, anticipated losses, and others are recorded in the period in which the revisions to estimates are identified and the amounts can be reasonably estimated. The effect of the changes on future periods are recognized as if the revised estimates had been used since revenue was initially recognized under the contract. Such revisions could occur in any reporting period, and the effects may be material depending on the size of the contracts or the changes in estimates. Revenue Recognition – Operations and Maintenance. Our O&M revenue is billed and recognized as services are performed. Costs of these revenues are expensed in the period in which they are incurred. Revenue Recognition – Components Business. Our components business sells solar modules directly to third-party solar power system integrators and operators. We recognize revenue for module sales when persuasive evidence of an arrangement exists, delivery of the modules has occurred and title and risk of loss have passed to the customer, the sales price is fixed or determinable, and the collectability of the resulting receivable is reasonably assured. Under this policy, we record a trade receivable for the selling price of our module and reduce inventory for the cost of goods sold when delivery occurs in accordance with the terms of the sales contract. Our customers typically do not have extended payment terms or rights of return for our products. |
Research and Development Expense | Research and Development Expense. We incur research and development costs during the process of researching and developing new products and enhancing our existing products, technologies, and manufacturing processes. Our research and development costs consist primarily of employee compensation, materials, outside services, and depreciation. We expense these costs as incurred until the resulting product has been completed, tested, and made ready for commercial manufacturing. |
Restructuring and Exit Activities | Restructuring and Exit Activities. We record costs associated with exit activities such as employee termination benefits that represent a one-time benefit when management approves and commits to a plan of termination, or over the future service period, if any. Other costs associated with exit activities may include contract termination costs, including costs related to leased facilities to be abandoned or subleased, and facility and employee relocation costs. |
Production Start-Up | Production Start-Up. Production start-up expense consists primarily of employee compensation and other costs associated with operating a production line before it has been qualified for full production, including the cost of raw materials for solar modules run through the production line during the qualification phase. Costs related to equipment upgrades and implementation of manufacturing process improvements are also included in production start-up expense as well as costs related to the selection of a new site, including related legal and regulatory costs, and costs to maintain our plant replication program, to the extent we cannot capitalize these expenditures. |
Share-Based Compensation | Share-Based Compensation. We recognize share-based compensation expense on the estimated grant-date fair value of equity instruments issued as compensation to employees over the requisite service period, which is generally four years. The share-based compensation expense that we recognize is based on the number of awards expected to ultimately vest; therefore, the amounts used to determine share-based compensation expense have been reduced for estimated forfeitures. We estimate the number of awards that we expect to vest at the time the awards are granted and revise those estimates, if necessary, in subsequent periods. We also estimate the number of awards that we expect to vest based on our historical experience with forfeitures, giving consideration to whether future forfeiture behavior might be expected to differ from past behavior. We recognize compensation expense for awards with graded vesting schedules on a straight-line basis over the requisite service periods for each separately vesting portion of the awards as if each award was in substance multiple awards. Our forfeiture rate assumptions, including estimates as to which share-based awards will ultimately vest, require judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period of change and could be materially different from share-based compensation expense recorded in prior periods. Additionally, when an associate’s employment is terminated, all previously unvested awards granted to such associate are forfeited, which results in a benefit to share-based compensation expense in the period of such associate’s termination equal to the cumulative expense recorded through the termination date for such forfeited unvested awards. |
Shipping and Handling Costs | Shipping and Handling Costs. We classify shipping and handling costs as a component of cost of sales. We record customer payments of shipping and handling costs as a component of net sales. |
Taxes Collected from Customers Policy [Policy Text Block] | Taxes Collected from Customers and Remitted to Governmental Authorities. We do not include tax amounts collected from customers in sales transactions as a component of net sales. |
Self-Insurance | Self-Insurance. We are self-insured for certain healthcare benefits provided to our U.S. employees. The liability for the self-insured benefits is limited by the purchase of stop-loss insurance. The stop-loss coverage provides payment for claims exceeding $0.2 million per covered person for any given year. Accruals for losses are made based on our claim experience and estimates based on historical data. Actual losses may differ from accrued amounts. Should actual losses exceed the amounts expected and, as a result, the recorded liabilities are determined to be insufficient, an additional expense will be recorded. |
Ventures and Variable Interest Entities | Ventures and Variable Interest Entities. In the normal course of business we establish wholly owned project companies which may be considered variable interest entities (“VIEs”). We consolidate wholly owned variable interest entities when we are considered the primary beneficiary of such entities. Additionally, we have, and may in the future form, joint venture type arrangements, including partnerships and partially owned limited liability companies or similar legal structures, with one or more third parties primarily to develop, construct, own, and/or sell solar power projects. These types of ventures are core to our business and long-term strategy related to providing PV solar generation solutions using our modules to key geographic markets. We analyze all of our ventures and classify them into two groups: (i) ventures that must be consolidated because they are either not VIEs and we hold a majority voting interest, or because they are VIEs and we are the primary beneficiary and (ii) ventures that do not need to be consolidated and are accounted for under either the cost or equity method of accounting because they are either not VIEs and we hold a minority voting interest, or because they are VIEs and we are not the primary beneficiary. Ventures are considered VIEs if (i) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (ii) as a group, the holders of the equity investment at risk lack the ability to make certain decisions, the obligation to absorb expected losses, or the right to receive expected residual returns; or (iii) an equity investor has voting rights that are disproportionate to its economic interest and substantially all of the entity’s activities are conducted on behalf of that investor. Our venture agreements typically require us to fund some form of capital for the development and construction of a project, depending upon the opportunity and the market in which our ventures are located. We are considered the primary beneficiary of and are required to consolidate a VIE if we have the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the entity. If we determine that we do not have the power to direct the activities that most significantly impact the entity, then we are not the primary beneficiary of the VIE. |
Cost and Equity Method Investments | Cost and Equity Method Investments. We account for our unconsolidated ventures using either the cost or equity method of accounting depending upon whether we have the ability to exercise significant influence over the venture. As part of this evaluation, we consider our participating and protective rights in the venture as well as its legal form. We record our cost method investments at their historical cost and subsequently record any dividends received from the net accumulated earnings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reductions in the cost of the investment. We use the equity method of accounting for our investments when we have the ability to significantly influence the operations or financial activities of the investee. We record our equity method investments at cost and subsequently adjust their carrying amount each period for our share of the earnings or losses of the investee and other adjustments required by the equity method of accounting. Dividends received from our equity method investments are recorded as reductions in the cost of such investments. We monitor our investments, which are included in “ Investments in unconsolidated affiliates and joint ventures ” in the accompanying consolidated balance sheets, for impairment and record reductions in their carrying values if the carrying amount of the investment exceeds its fair value. An impairment charge is recorded when such impairment is deemed to be other-than-temporary. To determine whether an impairment is other-than-temporary, we consider our ability and intent to hold the investment until the carrying amount is fully recovered. Circumstances that indicate an other-than-temporary impairment may have occurred include factors such as decreases in quoted market prices or declines in the operations of the investee. The evaluation of an investment for potential impairment requires us to exercise significant judgment and to make certain assumptions. The use of different judgments and assumptions could result in different conclusions. No impairment losses were recorded related to our cost and equity method investments during the year ended December 31, 2015 . We recorded impairment losses related to our cost and equity method investments of $7.1 million and $0.2 million during the years ended December 31, 2014 and 2013 , respectively. |
Note 1. First Solar and Its B34
Note 1. First Solar and Its Business Revisions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The following table presents the effect of the aforementioned revisions on our consolidated balance sheet as of December 31, 2014 (in thousands): December 31, 2014 As Reported Adjustment As Revised Other liabilities $ 284,584 $ 36,000 $ 320,584 Total liabilities 1,693,504 36,000 1,729,504 Accumulated earnings 2,279,689 (36,000 ) 2,243,689 Total stockholders’ equity 5,027,487 (36,000 ) 4,991,487 The following tables present the effect of the aforementioned revisions on our consolidated statements of operations for the years ended December 31, 2014 and 2013 (in thousands, except per share amounts): Year Ended December 31, 2014 As Reported Adjustment As Revised Net sales $ 3,391,814 $ (627 ) $ 3,391,187 Cost of sales 2,564,709 1,537 2,566,246 Gross profit 827,105 (2,164 ) 824,941 Operating income 424,163 (2,164 ) 421,999 Foreign currency loss, net (3,017 ) 1,556 (1,461 ) Other expense, net (5,203 ) 718 (4,485 ) Income before taxes and equity in earnings of unconsolidated affiliates 431,991 110 432,101 Income tax expense (30,124 ) (1,064 ) (31,188 ) Net income 396,918 (954 ) 395,964 Comprehensive income 472,834 (954 ) 471,880 Basic net income per share $ 3.97 $ (0.01 ) $ 3.96 Diluted net income per share $ 3.91 $ (0.01 ) $ 3.90 Year Ended December 31, 2013 As Reported Adjustment As Revised Net sales $ 3,308,989 $ 627 $ 3,309,616 Cost of sales 2,446,235 (1,251 ) 2,444,984 Gross profit 862,754 1,878 864,632 Operating income 368,529 1,878 370,407 Foreign currency (loss) gain, net (259 ) 1,152 893 Other expense, net (4,758 ) (431 ) (5,189 ) Income before taxes and equity in earnings of unconsolidated affiliates 378,380 2,599 380,979 Income tax expense (25,179 ) (4,919 ) (30,098 ) Net income 353,038 (2,320 ) 350,718 Comprehensive income 317,083 (2,320 ) 314,763 Basic net income per share $ 3.77 $ (0.03 ) $ 3.74 Diluted net income per share $ 3.70 $ (0.03 ) $ 3.67 The following tables present the effect of the aforementioned revisions on our consolidated statements of cash flows for the years ended December 31, 2014 and 2013 (in thousands): Year Ended December 31, 2014 As Reported Adjustment As Revised Net income $ 396,918 $ (954 ) $ 395,964 Adjustments to reconcile net income to cash provided by operating activities: Remeasurement of monetary assets and liabilities 8,772 (1,556 ) 7,216 Changes in operating assets and liabilities: Accounts receivable, trade, unbilled and retainage 453,826 8,804 462,630 Prepaid expenses and other current assets (19,947 ) (16,858 ) (36,805 ) Project assets and deferred project costs 141,908 1,139 143,047 Accounts payable (52,339 ) (718 ) (53,057 ) Income taxes payable (989 ) (142 ) (1,131 ) Accrued expenses and other liabilities (452,438 ) 10,285 (442,153 ) Net cash provided by operating activities 680,989 — 680,989 Year Ended December 31, 2013 As Reported Adjustment As Revised Net income $ 353,038 $ (2,320 ) $ 350,718 Adjustments to reconcile net income to cash provided by operating activities: Share-based compensation 55,079 (494 ) 54,585 Remeasurement of monetary assets and liabilities (15,109 ) (1,152 ) (16,261 ) Changes in operating assets and liabilities: Accounts receivable, trade, unbilled and retainage 564,964 5,767 570,731 Prepaid expenses and other current assets 109,126 10,115 119,241 Project assets and deferred project costs (316,022 ) (683 ) (316,705 ) Accounts payable (93,259 ) 431 (92,828 ) Income taxes payable 36,307 85 36,392 Accrued expenses and other liabilities (138,937 ) (11,749 ) (150,686 ) Net cash provided by operating activities 856,126 — 856,126 |
Note 2. Summary of Significan35
Note 2. Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment, Useful Lives [Table Text Block] | Useful Lives in Years Buildings and building improvements 25 – 40 Manufacturing machinery and equipment 5 – 7 Furniture, fixtures, computer hardware, and computer software 3 – 7 Leasehold improvements up to 15 |
Schedule Of Project Assets And Deferred Project Costs [Table Text Block] | The following table summarizes the balance sheet classification of project assets and deferred project costs: Milestone Arrangements Accounted for under ASC 360-20 (Real Estate Sales) Arrangements Accounted for under ASC 605-35 (Long-Term Construction Contracts) Execution of a definitive sales arrangement, but all revenue recognition criteria are not yet met Deferred project costs Deferred project costs Pre-execution of a definitive sales arrangement Project asset Deferred project costs (recoverable pre-contract costs) |
Note 6. Goodwill and Intangib36
Note 6. Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 were as follows (in thousands): Reporting Unit Balance at December 31, 2014 Acquisitions Balance at December 31, 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 Reporting Unit Balance at December 31, 2013 Acquisitions Balance at December 31, 2014 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 |
Schedule of Other Intangibles, Net | The following table summarizes our intangible assets at December 31, 2015 and 2014 (in thousands): December 31, 2015 Gross Amount Accumulated Amortization Net Amount Patents $ 6,070 $ (1,824 ) $ 4,246 Developed technology 114,565 (8,809 ) 105,756 Total $ 120,635 $ (10,633 ) $ 110,002 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 |
Schedule of Other Intangibles Future Amortization Expense | Estimated future amortization expense for our intangible assets was as follows at December 31, 2015 (in thousands): Amortization Expense 2016 $ 11,787 2017 11,403 2018 11,161 2019 11,161 2020 11,161 Thereafter 53,329 Total amortization expense $ 110,002 |
Note 7. Cash, Cash Equivalent37
Note 7. Cash, Cash Equivalents, and Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Schedule of Cash, Cash Equivalents, and Marketable Securities | Cash, cash equivalents, and marketable securities consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Cash and cash equivalents: Cash $ 1,126,496 $ 1,480,452 Cash equivalents: Money market funds 330 1,602 Total cash and cash equivalents 1,126,826 1,482,054 Marketable securities: Foreign debt 663,454 462,731 Time deposits 40,000 40,000 U.S. debt — 2,800 U.S. government obligations — 3,501 Total marketable securities 703,454 509,032 Total cash, cash equivalents, and marketable securities $ 1,830,280 $ 1,991,086 |
Available-for-sale Securities | The following tables summarize the unrealized gains and losses related to our available-for-sale marketable securities, by major security type, as of December 31, 2015 and 2014 (in thousands): As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Foreign debt $ 665,900 $ 9 $ 2,455 $ 663,454 Time deposits 40,000 — — 40,000 Total $ 705,900 $ 9 $ 2,455 $ 703,454 As of December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Foreign debt $ 463,466 $ 18 $ 753 $ 462,731 Time deposits 40,000 — — 40,000 U.S. debt 2,800 — — 2,800 U.S. government obligations 3,500 1 — 3,501 Total $ 509,766 $ 19 $ 753 $ 509,032 |
Available-for-sale Securities by Maturity | The contractual maturities of our marketable securities as of December 31, 2015 and 2014 were as follows (in thousands): As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value One year or less $ 290,377 $ 9 $ 406 $ 289,980 One year to two years 228,492 — 1,183 227,309 Two years to three years 187,031 — 866 186,165 Total $ 705,900 $ 9 $ 2,455 $ 703,454 As of December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value One year or less $ 329,974 $ 14 $ 174 $ 329,814 One year to two years 125,892 5 380 125,517 Two years to three years 53,900 — 199 53,701 Total $ 509,766 $ 19 $ 753 $ 509,032 |
Available-for-sale Securities Continuous Unrealized Loss Position | The following tables show gross unrealized losses and estimated fair values for those marketable securities that were in an unrealized loss position as of December 31, 2015 and 2014 , aggregated by major security type and the length of time the marketable securities have been in a continuous loss position (in thousands): As of December 31, 2015 In Loss Position for Less Than 12 Months In Loss Position for 12 Months or Greater Total Security Type Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Foreign debt $ 629,033 $ 2,386 $ 31,491 $ 69 $ 660,524 $ 2,455 Total $ 629,033 $ 2,386 $ 31,491 $ 69 $ 660,524 $ 2,455 As of December 31, 2014 In Loss Position for Less Than 12 Months In Loss Position for 12 Months or Greater Total Security Type Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Foreign debt $ 391,840 $ 740 $ 41,060 $ 13 $ 432,900 $ 753 Total $ 391,840 $ 740 $ 41,060 $ 13 $ 432,900 $ 753 |
Note 8. Restricted Cash and I38
Note 8. Restricted Cash and Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restricted Cash and Investments [Abstract] | |
Restricted Cash And Investments | Restricted cash and investments consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Restricted cash $ 7,764 $ 49,818 Restricted investments 326,114 357,235 Total restricted cash and investments (1) $ 333,878 $ 407,053 (1) There was an additional $72.5 million and $74.7 million of restricted cash included within prepaid expenses and other current assets at December 31, 2015 and 2014 , respectively. |
Restricted Available For Sale Securities | The following tables summarize the unrealized gains and losses related to our restricted investments, by major security type, as of December 31, 2015 and 2014 (in thousands): As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Foreign government obligations $ 177,507 $ 75,670 $ — $ 253,177 U.S. government obligations 61,228 11,709 — 72,937 Total $ 238,735 $ 87,379 $ — $ 326,114 As of December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Foreign government obligations $ 189,455 $ 93,280 $ — $ 282,735 U.S. government obligations 58,510 15,990 — 74,500 Total $ 247,965 $ 109,270 $ — $ 357,235 |
Note 9. Consolidated Balance 39
Note 9. Consolidated Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable trade, net consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Accounts receivable trade, gross $ 500,631 $ 142,542 Allowance for doubtful accounts (2 ) (7,108 ) Accounts receivable trade, net $ 500,629 $ 135,434 At December 31, 2015 and 2014 , $21.5 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 December 31, 2015 and 2014 (in thousands): 2015 2014 Accounts receivable, unbilled $ 40,205 $ 41,868 Retainage 18,966 35,103 Accounts receivable, unbilled and retainage $ 59,171 $ 76,971 |
Schedule of Inventory, Current and Noncurrent | Inventories consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Raw materials $ 159,078 $ 157,468 Work in process 19,736 20,829 Finished goods 309,369 442,408 Inventories $ 488,183 $ 620,705 Inventories – current $ 380,424 $ 505,088 Inventories – noncurrent $ 107,759 $ 115,617 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Prepaid expenses $ 74,990 $ 42,193 Derivative instruments 2,691 9,791 Restricted cash 72,526 74,695 Other current assets 98,770 75,472 Prepaid expenses and other current assets $ 248,977 $ 202,151 |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Land $ 12,063 $ 12,378 Buildings and improvements (1) 410,898 397,087 Machinery and equipment (1) 1,824,717 1,649,363 Office equipment and furniture 144,773 134,268 Leasehold improvements 50,546 50,096 Construction in progress 37,734 154,497 Stored assets (2) 138,954 155,389 Property, plant and equipment, gross 2,619,685 2,553,078 Less: accumulated depreciation (1,335,549 ) (1,133,090 ) Property, plant and equipment, net $ 1,284,136 $ 1,419,988 (1) In 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 year ended December 31, 2015 , we transferred $16.4 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. |
Schedule of PV Solar Power Systems, Net | PV solar power systems, net consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 PV solar power systems, gross $ 97,991 $ 47,727 Accumulated depreciation (4,250 ) (1,334 ) PV solar power systems, net $ 93,741 $ 46,393 |
Schedule of 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 years ended December 31, 2015 , 2014 , and 2013 (in thousands): 2015 2014 2013 Interest cost incurred $ (19,367 ) $ (10,828 ) $ (11,703 ) Interest cost capitalized – property, plant and equipment 1,335 2,324 2,608 Interest cost capitalized – project assets 11,057 6,522 7,211 Interest expense, net $ (6,975 ) $ (1,982 ) $ (1,884 ) |
Schedule of Project Assets and Deferred Project Costs | and deferred project costs consisted of the following at December 31, 2015 and 2014 (in thous |
Schedule of Other Assets, Noncurrent | Other assets consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Notes receivable (1) $ 12,648 $ 12,096 Income taxes receivable 4,071 4,850 Deferred rent 23,317 23,823 Other 29,686 20,901 Other assets $ 69,722 $ 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 December 31, 2015 and 2014 , the balance on the credit facility was €7.0 million ( $7.6 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 December 31, 2015 and 2014 , the balance outstanding on the convertible loan was $5.0 million and $3.5 million respectively. |
Schedule of Accrued Expenses | Accrued expenses consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Accrued compensation and benefits $ 63,699 $ 43,072 Accrued property, plant and equipment 7,808 30,723 Accrued inventory and balance of systems parts 53,542 36,233 Accrued project assets and deferred project costs 145,695 113,012 Product warranty liability (1) 38,468 69,656 Accrued expenses in excess of normal product warranty liability and related expenses (1) 5,040 7,800 Other 95,200 87,660 Accrued expenses $ 409,452 $ 388,156 (1) See Note 16 “Commitments and Contingencies” to our consolidated financial statements for further discussion of “Product warranty liability” and “Accrued expenses in excess of normal product warranty liability and related expenses.” |
Schedule of Other Current Liabilities | Other current liabilities consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Deferred revenue $ 17,957 $ 21,879 Derivative instruments 16,450 7,657 Contingent consideration (1) 9,233 36,817 Financing liability (2) 5,277 — Other 8,821 22,311 Other current liabilities $ 57,738 $ 88,664 (1) See Note 16 “Commitments and Contingencies” to our consolidated financial statements for further discussion. (2) See Note 12 “Investments in Unconsolidated Affiliates and Joint Ventures” to our consolidated financial statements for further discussion of the financing liabilities associated with our leaseback of the Maryland Solar project. |
Schedule of Other Liabilities | Other liabilities consisted of the following at December 31, 2015 and 2014 (in thousands): 2015 2014 Product warranty liability (1) $ 193,283 $ 153,401 Other taxes payable 66,549 82,555 Contingent consideration (1) 8,756 17,077 Liability in excess of normal product warranty liability and related expenses (1) 19,565 23,139 Financing liability (2) 36,706 — Other 67,453 44,412 Other liabilities $ 392,312 $ 320,584 (1) See Note 16 “Commitments and Contingencies” to our 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 12 “Investments in Unconsolidated Affiliates and Joint Ventures” to our consolidated financial statements for further discussion of the financing liabilities associated with our leaseback of the Maryland Solar project. |
Note 10. Derivative Financial40
Note 10. Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following tables present the fair values of derivative instruments included in our consolidated balance sheets as of December 31, 2015 and 2014 (in thousands): December 31, 2015 Prepaid Expenses and Other Current Assets Other Current Liabilities Other Liabilities Derivatives designated as hedging instruments: Foreign exchange forward contracts $ — $ 132 $ 285 Cross-currency swap contract — 6,909 13,835 Interest rate swap contract — 16 — Total derivatives designated as hedging instruments $ — $ 7,057 $ 14,120 Derivatives not designated as hedging instruments: Foreign exchange forward contracts $ 2,691 $ 9,393 $ — Total derivatives not designated as hedging instruments $ 2,691 $ 9,393 $ — Total derivative instruments $ 2,691 $ 16,450 $ 14,120 December 31, 2014 Prepaid Expenses and Other Current Assets Other Current Liabilities Other Liabilities Derivatives designated as hedging instruments: Foreign exchange forward contracts $ 1,213 $ — $ — Cross-currency swap contract — 2,996 8,995 Interest rate swap contract — 164 46 Total derivatives designated as hedging instruments $ 1,213 $ 3,160 $ 9,041 Derivatives not designated as hedging instruments: Foreign exchange forward contracts $ 8,578 $ 4,497 $ — Total derivatives not designated as hedging instruments $ 8,578 $ 4,497 $ — Total derivative instruments $ 9,791 $ 7,657 $ 9,041 |
Offsetting Derivatives [Table Text Block] | The impact of offsetting balances associated with derivative instruments designated as hedging instruments is shown below (in thousands): December 31, 2015 Gross Amounts Not Offset in Consolidated Balance Sheet Gross Asset (Liability) Gross Offset in Consolidated Balance Sheet Net Amount Recognized in Financial Statements Financial Instruments Cash Collateral Pledged Net Amount Foreign exchange forward contracts $ (417 ) — (417 ) — — $ (417 ) Cross-currency swap contract $ (20,744 ) — (20,744 ) — — $ (20,744 ) Interest rate swap contract $ (16 ) — (16 ) — — $ (16 ) December 31, 2014 Gross Amounts Not Offset in Consolidated Balance Sheet Gross Asset (Liability) Gross Offset in Consolidated Balance Sheet Net Amount Recognized in Financial Statements Financial Instruments Cash Collateral Pledged Net Amount Foreign exchange forward contracts $ 1,213 — 1,213 — — $ 1,213 Cross-currency swap contract $ (11,991 ) — (11,991 ) — — $ (11,991 ) Interest rate swap contract $ (210 ) — (210 ) — — $ (210 ) |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the effective amounts related to derivative instruments designated as cash flow hedges affecting accumulated other comprehensive income (loss) and our consolidated statements of operations for the years ended December 31, 2015 , 2014 , and 2013 (in thousands): Foreign Exchange Forward Contracts Interest Rate Swap Contract Cross Currency Swap Contract Total Balance in accumulated other comprehensive income (loss) at December 31, 2012 $ 8,980 $ (1,467 ) $ (8,031 ) $ (518 ) Amounts recognized in other comprehensive income (loss) 8,486 (30 ) (6,666 ) 1,790 Amounts reclassified to net sales as a result of forecasted transactions being probable of not occurring (13,115 ) — — (13,115 ) Amounts reclassified to earnings impacting: Foreign currency (loss) gain, net — — 8,426 8,426 Interest expense, net — 794 451 1,245 Balance in accumulated other comprehensive income (loss) at December 31, 2013 4,351 (703 ) (5,820 ) (2,172 ) Amounts recognized in other comprehensive income (loss) 1,769 12 (2,846 ) (1,065 ) Amounts reclassified to earnings impacting: Cost of sales 501 — — 501 Foreign currency (loss) gain, net — — 5,050 5,050 Interest expense, net — 481 217 698 Balance in accumulated other comprehensive income (loss) at December 31, 2014 6,621 (210 ) (3,399 ) 3,012 Amounts reclassified to net sales as a result of forecasted transactions being probable of not occurring (1,295 ) — — (1,295 ) Amounts recognized in other comprehensive income (loss) 832 23 (9,219 ) (8,364 ) Amounts reclassified to earnings impacting: Net sales (487 ) — — (487 ) Cost of sales (5,509 ) — — (5,509 ) Foreign currency (loss) gain, net — — 10,135 10,135 Interest expense, net — 171 466 637 Balance in accumulated other comprehensive income (loss) at December 31, 2015 $ 162 $ (16 ) $ (2,017 ) $ (1,871 ) |
Schedule of Derivative Instruments, Gain (Loss) [Table Text Block] | The following table presents amounts related to derivative instruments not designated as hedges affecting our consolidated statements of operations for the years ended December 31, 2015 , 2014 , and 2013 (in thousands): Amount of Gain (Loss) Recognized in Income Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income 2015 2014 2013 Foreign exchange forward contracts Foreign currency (loss) gain, net $ (3,425 ) $ (8,066 ) $ 6,063 Foreign exchange forward contracts Cost of sales 12,422 13,240 (3,760 ) Foreign exchange forward contracts Net sales — — 5,324 |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | As of December 31, 2015 and 2014 , the notional values associated with our foreign exchange forward contracts qualifying as cash flow hedges were as follows (notional amounts and U.S. dollar equivalents in millions): December 31, 2015 Currency Notional Amount USD Equivalent Indian rupee INR1,290.0 $19.4 December 31, 2014 Currency Notional Amount USD Equivalent Australian dollar AUD 38.4 $31.5 Japanese yen JPY1,223.2 $10.3 |
Schedule Of Notional Value Of Foreign Exchange Forward Derivatives [Table Text Block] | As of December 31, 2015 and 2014 , the notional values of our foreign exchange forward contracts that do not qualify for hedge accounting were as follows (notional amounts and U.S. dollar equivalents in millions): December 31, 2015 Transaction Currency Notional Amount USD Equivalent Purchase Euro €42.0 $45.9 Sell Euro €150.1 $164.0 Purchase Australian dollar AUD 41.1 $29.9 Sell Australian dollar AUD 89.0 $64.8 Purchase Malaysian ringgit MYR 61.4 $14.3 Sell Malaysian ringgit MYR 80.7 $18.8 Sell Canadian dollar CAD 4.5 $3.2 Sell Japanese yen JPY 8,448.7 $70.1 Purchase British pound GBP 11.1 $16.5 Sell British pound GBP 16.0 $23.7 Sell Indian rupee INR 8,939.0 $134.6 Purchase South African rand ZAR 41.1 $2.7 Sell South African rand ZAR 81.5 $5.3 December 31, 2014 Transaction Currency Notional Amount USD Equivalent Purchase Euro €91.1 $110.9 Sell Euro €92.4 $112.5 Purchase Australian dollar AUD 26.0 $21.3 Sell Australian dollar AUD 118.0 $96.7 Purchase Malaysian ringgit MYR 146.0 $41.7 Sell Malaysian ringgit MYR 93.6 $26.7 Purchase Canadian dollar CAD 0.7 $0.6 Sell Canadian dollar CAD 8.3 $7.1 Purchase Japanese yen JPY 244.6 $2.1 Sell Japanese yen JPY 2,322.1 $19.5 Purchase British pound GBP 1.4 $2.2 Sell British pound GBP 37.7 $58.6 |
Note 11. Fair Value Measureme41
Note 11. Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value assets and liabilities measured on recurring basis | At December 31, 2015 and 2014 , the fair value measurements of our assets and liabilities that we measure on a recurring basis were as follows (in thousands): December 31, 2015 Fair Value Measurements at Reporting Date Using Total Fair Value and Carrying Value on Our Balance Sheet Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 330 $ 330 $ — $ — Marketable securities: Foreign debt 663,454 — 663,454 — Time deposits 40,000 40,000 — — Restricted investments 326,114 — 326,114 — Derivative assets 2,691 — 2,691 — Total assets $ 1,032,589 $ 40,330 $ 992,259 $ — Liabilities: Derivative liabilities $ 30,570 $ — $ 30,570 $ — December 31, 2014 Fair Value Measurements at Reporting Date Using Total Fair Value and Carrying Value on Our Balance Sheet Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 1,602 $ 1,602 $ — $ — Marketable securities: Foreign debt 462,731 — 462,731 — Time deposits 40,000 40,000 — — U.S debt 2,800 — 2,800 — U.S. government obligations 3,501 — 3,501 — Restricted investments 357,235 — 357,235 — Derivative assets 9,791 — 9,791 — Total assets $ 877,660 $ 41,602 $ 836,058 $ — Liabilities: Derivative liabilities $ 16,698 $ — $ 16,698 $ — |
Fair value of financial instruments | The carrying values and fair values of our financial and derivative instruments at December 31, 2015 and 2014 were as follows (in thousands): December 31, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value Assets: Marketable securities $ 703,454 $ 703,454 $ 509,032 $ 509,032 Foreign exchange forward contract assets 2,691 2,691 9,791 9,791 Restricted investments 326,114 326,114 357,235 357,235 Notes receivable – noncurrent 12,648 18,382 12,096 12,189 Notes receivable, affiliates – noncurrent 17,887 19,932 9,127 9,812 Liabilities: Long-term debt, including current maturities $ 288,350 $ 294,449 $ 211,915 $ 224,489 Interest rate swap contract liabilities 16 16 210 210 Cross-currency swap contract liabilities 20,744 20,744 11,991 11,991 Foreign exchange forward contract liabilities 9,810 9,810 4,497 4,497 |
Note 12. Investments in Uncon42
Note 12. Investments in Unconsolidated Affiliates and Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Cost and Equity Method Investments [Table Text Block] | The following table summarizes our equity and cost method investments as of December 31, 2015 and 2014 (in thousands): 2015 2014 Equity method investments $ 375,355 $ 249,614 Cost method investments 24,450 5,415 Investments in unconsolidated affiliates and joint ventures $ 399,805 $ 255,029 |
Equity Method Investments [Table Text Block] | The following table presents summarized financial information, in the aggregate, for our significant equity method investees, as provided to us by the investees (in thousands): Fiscal 2015 Summary statement of operations information: Net sales $ 7,099 Operating loss (555 ) Net income 8,936 Net income attributable to equity method investees 111,135 As of Fiscal 2015 Summary balance sheet information: Current assets $ 70,135 Long-term assets 1,938,785 Current liabilities 150,313 Long-term liabilities 309,169 Noncontrolling interests, including redeemable noncontrolling interests 101,520 |
Note 13. Percentage-of-Comple43
Note 13. Percentage-of-Completion Changes in Estimates (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Changes in Estimates for Systems Business [Abstract] | |
Changes in Estimates Systems Business [Table Text Block] | The table below outlines the impact on gross profit of the aggregate net changes in systems business contract estimates (both increases and decreases) for the years ended December 31, 2015 and 2014 as well as the number of projects that comprise such aggregate net changes in estimates. For purposes of the following table, we only include projects with changes in estimates that have a net impact on gross profit of at least $1.0 million during the periods presented. Also included in the table is the net change in estimates as a percentage of the aggregate gross profit for such projects. 2015 2014 Number of projects 6 9 Increases (decreases) in gross profit resulting from net changes in estimates (in thousands) $ 31,928 $ 40,118 Net change in estimate as percentage of aggregate gross profit for associated projects 3.4 % 1.6 % |
Note 15. Debt (Tables)
Note 15. Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments | Our long-term debt consisted of the following at December 31, 2015 and 2014 (in thousands): Balance (USD) Loan Agreement Maturity Loan Denomination 2015 2014 Revolving credit facility July 2018 USD $ — $ — Project construction credit facilities Various Various 218,183 75,418 Malaysian ringgit facility agreement September 2018 MYR 54,175 88,606 Malaysian euro facility agreement April 2018 EUR 21,869 34,112 Malaysian facility agreement March 2016 EUR 5,100 25,818 Capital lease obligations Various Various 1,065 1,558 Long-term debt principal 300,392 225,512 Less: unamortized discount and issuance costs (10,977 ) (12,039 ) Total long-term debt 289,415 213,473 Less: current portion (38,090 ) (51,399 ) Noncurrent portion $ 251,325 $ 162,074 |
Schedule of Borrowing Rate on Debt | Our long-term debt borrowing rates as of December 31, 2015 were as follows: Loan Agreement Borrowing Rate at December 31, 2015 Revolving Credit Facility 2.86% Luz del Norte Credit Facilities Fixed rate loans at bank rate plus 3.50% Variable rate loans at 91-Day U.S. Treasury Bill Yield or LIBOR plus 3.50% VAT loans at bank rate plus 1.30% Japan Credit Facility TIBOR plus 0.5% India Credit Facilities Bank rate plus 2.35% Malaysian Ringgit Facility Agreement KLIBOR plus 2.00% (2) Malaysian Euro Facility Agreement EURIBOR plus 1.00% Malaysian Facility Agreement (1) Fixed rate facility at 4.54% Floating rate facility at EURIBOR plus 0.55% (2) Capital lease obligations Various (1) Outstanding balance split equally between fixed and floating rates. (2) Interest rate hedges have been entered into relating to these variable rates. See Note 10 “Derivative Financial Instruments” to our consolidated financial statements. |
Schedule of Maturities of Long-term Debt | At December 31, 2015 , the future principal payments on our long-term debt, excluding payments related to capital leases, were due as follows (in thousands): Total Debt 2016 $ 38,331 2017 29,419 2018 67,692 2019 5,785 2020 11,930 Thereafter 146,170 Total long-term debt future principal payments $ 299,327 |
Note 16. Commitments and Cont45
Note 16. Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Non Cancelable Leases Future Minimum Payments | Future minimum payments under all of our noncancelable leases are as follows as of December 31, 2015 (in thousands): 2016 2017 2018 2019 2020 Thereafter Total Minimum Lease Payments Less Amounts Representing Interest Present Value of Minimum Lease Payments Less Current Portion of Capital Leases Noncurrent Portion of Capital Leases Gross operating lease obligations $ 18,273 $ 16,025 $ 13,733 $ 10,505 $ 5,378 $ 104,860 $ 168,774 Sublease income (1,449 ) (1,449 ) (906 ) — — — (3,804 ) Net operating lease obligations 16,824 14,576 12,827 10,505 5,378 104,860 164,970 Capital leases 540 420 97 65 — — 1,122 (57 ) 1,065 (374 ) 691 Total $ 17,364 $ 14,996 $ 12,924 $ 10,570 $ 5,378 $ 104,860 $ 166,092 |
Schedule of Product Warranty Liability | Product warranty activities during the years ended December 31, 2015 , 2014 , and 2013 were as follows (in thousands): 2015 2014 2013 Product warranty liability, beginning of period $ 223,057 $ 198,041 $ 191,596 Accruals for new warranties issued 50,040 40,599 35,985 Settlements (13,392 ) (16,721 ) (33,499 ) Changes in estimate of product warranty liability (27,954 ) 1,138 3,959 Product warranty liability, end of period $ 231,751 $ 223,057 $ 198,041 Current portion of warranty liability $ 38,468 $ 69,656 $ 67,097 Noncurrent portion of warranty liability $ 193,283 $ 153,401 $ 130,944 |
Note 18. Share-Based Compensa46
Note 18. Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | The share-based compensation expense that we recognized in our consolidated statements of operations for the years ended December 31, 2015 , 2014 , and 2013 was as follows (in thousands): 2015 2014 2013 Cost of sales $ 10,713 $ 11,713 $ 17,116 Research and development 4,109 4,417 5,760 Selling, general and administrative 30,052 27,660 31,426 Production start-up 25 20 283 Total share-based compensation expense $ 44,899 $ 43,810 $ 54,585 The following table presents our share-based compensation expense by type of award for the years ended December 31, 2015 , 2014 , and 2013 (in thousands): 2015 2014 2013 Restricted and performance stock units $ 40,393 $ 42,852 $ 51,433 Unrestricted stock 1,326 1,326 1,253 Stock purchase plan 1,254 1,003 998 42,973 45,181 53,684 Net amount released from (absorbed into) inventory 1,926 (1,371 ) 901 Total share-based compensation expense $ 44,899 $ 43,810 $ 54,585 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The following is a summary of our restricted and performance stock unit activity for the year ended December 31, 2015 : Number of Shares Weighted Average Grant-Date Fair Value Unvested restricted stock units at December 31, 2014 4,319,461 $ 29.80 Restricted stock units granted 444,942 60.91 Restricted stock units vested (1,629,123) 33.88 Restricted stock units forfeited (160,787) 41.32 Unvested restricted stock units at December 31, 2015 2,974,493 $ 31.59 |
Note 20. Income Taxes (Tables)
Note 20. Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The U.S. and non-U.S. components of our income before income taxes for the years ended December 31, 2015 , 2014 , and 2013 were as follows (in thousands): 2015 2014 2013 U.S. income $ 126,958 $ 139,137 $ 78,346 Non-U.S. income 392,877 292,964 302,633 Income before income taxes $ 519,835 $ 432,101 $ 380,979 |
Schedule of Components of Income Tax (Benefit) Expense [Table Text Block] | The components of our income tax (benefit) expense for the years ended December 31, 2015 , 2014 , and 2013 were as follows (in thousands): 2015 2014 2013 Current expense: Federal $ 20,208 $ 15,492 $ 44,518 State 4,172 1,699 836 Foreign 23,215 8,123 5,622 Total current expense 47,595 25,314 50,976 Deferred (benefit) expense: Federal (716 ) 2,926 (12,022 ) State 3,118 5,133 2,229 Foreign (56,153 ) (2,185 ) (11,085 ) Total deferred (benefit) expense (53,751 ) 5,874 (20,878 ) Total income tax (benefit) expense $ (6,156 ) $ 31,188 $ 30,098 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Our income tax results differed from the amount computed by applying the U.S. statutory federal income tax rate of 35.0% to our income before income taxes for the following reasons for the years ended December 31, 2015 , 2014 , and 2013 (in thousands): 2015 2014 2013 Tax Percent Tax Percent Tax Percent Statutory income tax expense $ 181,936 35.0 % $ 151,235 35.0 % $ 133,342 35.0 % Non-deductible expenses 4,161 0.8 % 3,001 0.7 % 707 0.2 % State tax, net of federal benefit 5,437 1.0 % 4,549 1.0 % 1,579 0.4 % Effect of tax holiday (126,324 ) (24.3 )% (80,049 ) (18.5 )% (80,076 ) (21.0 )% Foreign tax rate differential (9,637 ) (1.9 )% (7,524 ) (1.7 )% (19,839 ) (5.2 )% Effect of private letter ruling (41,694 ) (8.0 )% — — % — — % Tax credits (2,566 ) (0.5 )% (3,014 ) (0.7 )% (13,267 ) (3.5 )% Other (9,670 ) (1.8 )% (5,369 ) (1.2 )% 1,606 0.4 % Impact of changes in valuation allowance (7,799 ) (1.5 )% (31,641 ) (7.4 )% 6,046 1.6 % Reported income tax (benefit) expense $ (6,156 ) (1.2 )% $ 31,188 7.2 % $ 30,098 7.9 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The items that gave rise to our deferred taxes for the years ended December 31, 2015 and 2014 were as follows (in thousands): 2015 2014 Deferred tax assets: Goodwill $ 32,022 $ 39,299 Compensation 38,938 38,890 Accrued expenses 74,432 59,517 Tax credits 211,066 174,633 Net operating losses 95,562 86,268 Inventory 5,961 11,435 Deferred expenses 8,559 3,778 Property, plant and equipment 38,869 48,026 Long-term contracts 2,522 11,120 Other 8,622 5,736 Deferred tax assets, gross 516,553 478,702 Valuation allowance (121,524 ) (129,323 ) Deferred tax assets, net of valuation allowance 395,029 349,379 Deferred tax liabilities: Capitalized interest (4,270 ) (5,216 ) Acquisition accounting / basis difference (3,527 ) (13,780 ) Restricted investments and derivatives (14,128 ) (18,124 ) Investments in foreign subsidiaries (379 ) (967 ) Equity in earnings (21,895 ) (1,020 ) Other (2,388 ) (5,044 ) Deferred tax liabilities (46,587 ) (44,151 ) Net deferred tax assets and liabilities $ 348,442 $ 305,228 |
Summary of Valuation Allowance [Table Text Block] | Changes in our valuation allowance against our deferred tax assets were as follows during the years ended December 31, 2015 , 2014 , and 2013 (in thousands): 2015 2014 2013 Valuation allowance, beginning of year $ 129,323 $ 160,965 $ 154,919 Additions 368 2,068 15,059 Reversals (8,167 ) (33,710 ) (9,013 ) Valuation allowance, end of year $ 121,524 $ 129,323 $ 160,965 |
Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions for the years ended December 31, 2015 , 2014 , and 2013 is as follows (in thousands): 2015 2014 2013 Unrecognized tax benefits, beginning of year $ 162,029 $ 183,239 $ 174,181 Increases related to prior year tax positions 484 522 6,178 Decreases related to prior year tax positions (2,693 ) (2,513 ) (15,245 ) Decreases from lapse in statute of limitations (13,827 ) (28,649 ) — Decreases relating to settlements with authorities (20,485 ) (3,111 ) — Increases related to current tax positions 16,247 12,541 18,125 Unrecognized tax benefits, end of year $ 141,755 $ 162,029 $ 183,239 |
Summary of Income Tax Examinations [Table Text Block] | The following table summarizes the tax years that are either currently under audit or remain open and subject to examination by the tax authorities in the most significant jurisdictions in which we operate: Tax Years Australia 2011 - 2015 Germany 2010 - 2014 Malaysia 2010 - 2014 United States 2008 - 2009; 2012 - 2014 |
Note 21. Net Income Per Share (
Note 21. Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The calculation of basic and diluted net income per share for the years ended December 31, 2015 , 2014 , and 2013 was as follows (in thousands, except per share amounts): 2015 2014 2013 Basic net income per share Numerator: Net income $ 546,421 $ 395,964 $ 350,718 Denominator: Weighted-average common stock outstanding 100,886 100,048 93,697 Diluted net income per share Denominator: Weighted-average common stock outstanding 100,886 100,048 93,697 Effect of restricted and performance stock units and stock purchase plan shares 929 1,595 1,771 Weighted-average shares used in computing diluted net income per share 101,815 101,643 95,468 2015 2014 2013 Per share information – basic: Net income per share $ 5.42 $ 3.96 $ 3.74 Per share information – diluted: Net income per share $ 5.37 $ 3.90 $ 3.67 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table summarizes the potential shares of common stock that were excluded from the computation of diluted net income per share for the years ended December 31, 2015 , 2014 , and 2013 as they would have had an anti-dilutive effect (in thousands): 2015 2014 2013 Anti-dilutive shares 48 70 86 |
Note 22 Comprehensive Income 49
Note 22 Comprehensive Income and Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Comprehensive Income (Loss) | Comprehensive income, which includes foreign currency translation adjustments, unrealized gains and losses on available-for-sale securities, and unrealized gains and losses on derivative instruments designated and qualifying as cash flow hedges, the impact of which has been excluded from net income and reflected as components of stockholders’ equity, was as follows for the years ended December 31, 2015 , 2014 , and 2013 (in thousands): 2015 2014 2013 Net income $ 546,421 $ 395,964 $ 350,718 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments (16,432 ) (19,147 ) 4,295 Unrealized (loss) gain on marketable securities and restricted investments for the period, net of tax of $1,248, $(6,644), and $3,334 (15,413 ) 90,868 (39,685 ) Less: reclassification for gains included in net income, net of tax of $0, $83, and $0 (2 ) (127 ) — Unrealized (loss) gain on marketable securities and restricted investments (15,415 ) 90,741 (39,685 ) Unrealized (loss) on derivative instruments for the period, net of tax of $(207), $(711), and $(2,387) (8,572 ) (1,777 ) (596 ) Less: reclassification for losses included in net income, net of tax of $2,278, $(150), and $3,475 5,759 6,099 31 Unrealized (loss) gain on derivative instruments (2,813 ) 4,322 (565 ) Other comprehensive (loss) income, net of tax (34,660 ) 75,916 (35,955 ) Comprehensive income $ 511,761 $ 471,880 $ 314,763 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables reflect the changes in accumulated other comprehensive income, net of tax, for the years ended December 31, 2015 and 2014 (in thousands): Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Marketable Securities Unrealized Gain (Loss) on Derivative Instruments Total Balance as of December 31, 2013 $ (34,190 ) $ 11,558 $ (3,144 ) $ (25,776 ) Other comprehensive (loss) income before reclassifications (19,147 ) 90,868 (1,777 ) 69,944 Amounts reclassified from accumulated other comprehensive income — (127 ) 6,099 5,972 Net other comprehensive (loss) income (19,147 ) 90,741 4,322 75,916 Balance as of December 31, 2014 (53,337 ) 102,299 1,178 50,140 Other comprehensive loss before reclassifications (16,432 ) (15,413 ) (8,572 ) (40,417 ) Amounts reclassified from accumulated other comprehensive income — (2 ) 5,759 5,757 Net other comprehensive loss (16,432 ) (15,415 ) (2,813 ) (34,660 ) Balance as of December 31, 2015 $ (69,769 ) $ 86,884 $ (1,635 ) $ 15,480 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Details of Accumulated Other Comprehensive Income Amounts Reclassified for the Year Ended December 31, Income Statement Line Item 2015 2014 (Losses) and gains on marketable securities and restricted investments: $ 2 $ 210 Other expense, net — 83 Tax expense $ 2 $ 127 Total, net of tax Gains and (losses) on derivative contracts: Foreign exchange forward contracts $ 1,782 $ — Net sales Foreign exchange forward contracts 5,509 (501 ) Cost of sales Interest rate and cross currency swap contracts (10,135 ) (698 ) Interest expense, net Cross currency swap contract (637 ) (5,050 ) Foreign currency (loss) gain, net (3,481 ) (6,249 ) Total before tax (2,278 ) 150 Tax expense $ (5,759 ) $ (6,099 ) Total, net of tax |
Note 23. Segment and Geograph50
Note 23. Segment and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information about our reportable segments during the years ended December 31, 2015 , 2014 , and 2013 was as follows (in thousands): Year Ended December 31, 2015 Components Systems Total Net sales $ 1,389,579 $ 2,189,416 $ 3,578,995 Gross profit (1) 347,853 571,414 919,267 Depreciation and amortization expense 243,898 14,124 258,022 Income before income taxes (1) 171,817 348,018 519,835 Goodwill 16,152 68,833 84,985 Total assets 4,037,955 3,278,376 7,316,331 Year Ended December 31, 2014 Components Systems Total Net sales $ 1,102,674 $ 2,288,513 $ 3,391,187 Gross profit 93,510 731,431 824,941 Depreciation and amortization expense 223,381 23,268 246,649 (Loss) income before income taxes (105,531 ) 537,632 432,101 Goodwill 16,152 68,833 84,985 Total assets 4,168,060 2,552,931 6,720,991 Year Ended December 31, 2013 Components Systems Total Net sales $ 1,173,947 $ 2,135,669 $ 3,309,616 Gross profit 88,506 776,126 864,632 Depreciation and amortization expense 211,357 27,417 238,774 (Loss) income before income taxes (221,230 ) 602,209 380,979 (1) The operating results for our components segment for the year ended December 31, 2015 include the impact of the $80.0 million reduction in our module collection and recycling liability. See Note 14 “Solar Module Collection and Recycling Liability” to our consolidated financial statements for more information regarding the change in this liability. |
Revenue from External Customers by Products and Services | The following table sets forth the total amounts of solar module and solar power system net sales recognized for the years ended December 31, 2015 , 2014 , and 2013 . For the purposes of the following table, (i) “Solar module revenue” is composed of total revenues from the sale of solar modules to third parties, which does not include any systems segment product or service offerings, and (ii) “Solar power system revenue” is composed of total revenues from the sale of our PV solar power systems and related products and services, including the solar modules installed in such solar power systems along with any revenue generated from our PV solar power systems (in thousands): 2015 2014 2013 Solar module revenue $ 227,461 $ 228,319 $ 380,869 Solar power system revenue 3,351,534 3,162,868 2,928,747 Net sales $ 3,578,995 $ 3,391,187 $ 3,309,616 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The following table presents net sales for the years ended December 31, 2015 , 2014 , and 2013 by geographic region, which is based on the customer country of invoicing (in thousands): 2015 2014 2013 United States $ 3,117,797 $ 3,042,006 $ 2,832,102 Germany 63,709 121,941 142,028 India 134,462 44,118 8,253 Australia 185,064 157,152 604 France — 8,409 35,772 Canada 6,188 7,085 264,573 United Arab Emirates — 569 21,137 Honduras 48,773 — — All other foreign countries 23,002 9,907 5,147 Net sales $ 3,578,995 $ 3,391,187 $ 3,309,616 |
Schedule of Entity-Wide Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | The following table presents long-lived assets, which includes property, plant and equipment, PV solar power systems, and project assets and deferred project costs as of December 31, 2015 and 2014 by geographic region, based on the physical location of the assets (in thousands): 2015 2014 United States $ 1,434,891 $ 1,206,333 Malaysia 788,086 936,482 Chile 270,623 103,604 All other foreign countries 183,354 59,664 Long-lived assets $ 2,676,954 $ 2,306,083 |
Note 24. Concentrations of Ri51
Note 24. Concentrations of Risks (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | The following customers each comprised 10% or more of our total net sales and/or 10% or more of our total accounts receivable during the years ended December 31, 2015 , 2014 , and 2013 (dollars in thousands): 2015 2014 2013 Net Sales % of Total NS A/R Outstanding % of Total A/R Net Sales % of Total NS A/R Outstanding % of Total A/R Net Sales % of Total NS Customer #1 * * $ 69,452 15 % * * * * * * Customer #2 * * * * * * $ 18,549 14 % * * Customer #3 $ 1,060,074 30 % $ 96,956 21 % $ 1,065,862 31 % * * * * Customer #4 * * * * $ 524,678 15 % $ 32,612 24 % $ 664,669 20 % Customer #5 * * * * * * $ 17,199 13 % * * Customer #6 $ 946,820 26 % $ 216,296 48 % $ 467,941 14 % * * $ 584,638 18 % * Net sales and/or accounts receivable to these customers were less than 10% of our total net sales and/or accounts receivable during the period. |
Note 1. First Solar and Its B52
Note 1. First Solar and Its Business Revisions - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Other liabilities | $ 392,312 | $ 320,584 | ||
Total liabilities | 1,767,844 | 1,729,504 | ||
Accumulated earnings | 2,790,110 | 2,243,689 | ||
Total stockholders' equity | $ 5,548,487 | 4,991,487 | $ 4,468,071 | $ 3,573,294 |
Scenario, Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Other liabilities | 284,584 | |||
Total liabilities | 1,693,504 | |||
Accumulated earnings | 2,279,689 | |||
Total stockholders' equity | 5,027,487 | |||
Restatement Adjustment [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Other liabilities | 36,000 | |||
Total liabilities | 36,000 | |||
Accumulated earnings | (36,000) | $ (35,000) | $ (32,700) | |
Total stockholders' equity | $ (36,000) |
Note 1. First Solar and Its B53
Note 1. First Solar and Its Business Revisions - Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net sales | $ 3,578,995 | $ 3,391,187 | $ 3,309,616 |
Cost of sales | 2,659,728 | 2,566,246 | 2,444,984 |
Gross profit | 919,267 | 824,941 | 864,632 |
Operating income | 516,664 | 421,999 | 370,407 |
Foreign currency (loss) gain, net | (6,868) | (1,461) | 893 |
Other expense, net | (5,502) | (4,485) | (5,189) |
Income (loss) before income taxes | 519,835 | 432,101 | 380,979 |
Income tax benefit (expense) | 6,156 | (31,188) | (30,098) |
Net income | 546,421 | 395,964 | 350,718 |
Comprehensive income | $ 511,761 | $ 471,880 | $ 314,763 |
Net income per share, basic | $ 5.42 | $ 3.96 | $ 3.74 |
Net income per share, diluted | $ 5.37 | $ 3.90 | $ 3.67 |
Scenario, Previously Reported [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net sales | $ 3,391,814 | $ 3,308,989 | |
Cost of sales | 2,564,709 | 2,446,235 | |
Gross profit | 827,105 | 862,754 | |
Operating income | 424,163 | 368,529 | |
Foreign currency (loss) gain, net | (3,017) | (259) | |
Other expense, net | (5,203) | (4,758) | |
Income (loss) before income taxes | 431,991 | 378,380 | |
Income tax benefit (expense) | (30,124) | (25,179) | |
Net income | 396,918 | 353,038 | |
Comprehensive income | $ 472,834 | $ 317,083 | |
Net income per share, basic | $ 3.97 | $ 3.77 | |
Net income per share, diluted | $ 3.91 | $ 3.70 | |
Restatement Adjustment [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net sales | $ (627) | $ 627 | |
Cost of sales | 1,537 | (1,251) | |
Gross profit | (2,164) | 1,878 | |
Operating income | (2,164) | 1,878 | |
Foreign currency (loss) gain, net | 1,556 | 1,152 | |
Other expense, net | 718 | (431) | |
Income (loss) before income taxes | 110 | 2,599 | |
Income tax benefit (expense) | (1,064) | (4,919) | |
Net income | (954) | (2,320) | |
Comprehensive income | $ (954) | $ (2,320) | |
Net income per share, basic | $ (0.01) | $ (0.03) | |
Net income per share, diluted | $ (0.01) | $ (0.03) |
Note 1. First Solar and Its B54
Note 1. First Solar and Its Business Revisions - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net income | $ 546,421 | $ 395,964 | $ 350,718 |
Share-based compensation | 44,899 | 43,810 | 54,585 |
Remeasurement of monetary assets and liabilities | (4,043) | 7,216 | (16,261) |
Accounts receivable, trade, unbilled and retainage | (340,292) | 462,630 | 570,731 |
Prepaid expenses and other current assets | (38,635) | (36,805) | 119,241 |
Project assets and deferred project costs | (857,529) | 143,047 | (316,705) |
Accounts payable | 143,872 | (53,057) | (92,828) |
Income taxes payable | (13,281) | (1,131) | 36,392 |
Accrued expenses and other liabilities | (85,425) | (442,153) | (150,686) |
Net cash provided by operating activities | $ (360,919) | 680,989 | 856,126 |
Scenario, Previously Reported [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net income | 396,918 | 353,038 | |
Share-based compensation | 55,079 | ||
Remeasurement of monetary assets and liabilities | 8,772 | (15,109) | |
Accounts receivable, trade, unbilled and retainage | 453,826 | 564,964 | |
Prepaid expenses and other current assets | (19,947) | 109,126 | |
Project assets and deferred project costs | 141,908 | (316,022) | |
Accounts payable | (52,339) | (93,259) | |
Income taxes payable | (989) | 36,307 | |
Accrued expenses and other liabilities | (452,438) | (138,937) | |
Net cash provided by operating activities | 680,989 | 856,126 | |
Restatement Adjustment [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net income | (954) | (2,320) | |
Share-based compensation | (494) | ||
Remeasurement of monetary assets and liabilities | (1,556) | (1,152) | |
Accounts receivable, trade, unbilled and retainage | 8,804 | 5,767 | |
Prepaid expenses and other current assets | (16,858) | 10,115 | |
Project assets and deferred project costs | 1,139 | (683) | |
Accounts payable | (718) | 431 | |
Income taxes payable | (142) | 85 | |
Accrued expenses and other liabilities | 10,285 | (11,749) | |
Net cash provided by operating activities | $ 0 | $ 0 |
Note 2. Summary of Significan55
Note 2. Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
PV Solar Power Systems, Current Useful Life | 15 years |
Minimum [Member] | Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 25 years |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Minimum [Member] | Furniture Fixtures Computer Hardware And Computer Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
PV Solar Power Systems, Policy Useful Life | 25 years |
PV Solar Power Systems, Current Useful Life | 25 years |
Maximum [Member] | Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Maximum [Member] | Furniture Fixtures Computer Hardware And Computer Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Maximum [Member] | Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Note 2. Summary of Significan56
Note 2. Summary of Significant Accounting Policies (Details) - Textuals - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Line Items] | |||
Idled Property, Plant and Equipment, NBV | $ 4,000 | ||
Net sales | 3,578,995 | $ 3,391,187 | $ 3,309,616 |
Asset Retirement Obligation | $ 15,900 | 6,700 | |
Standard Limited Module Workmanship Warranty Term | 10 years | ||
Standard Limited Module Power Output Warranty, Annual Degradation Percentage | 0.70% | ||
Product minimum service life | 25 years | ||
Legacy Limited Module Power Output Warranty, Energy Threshold, First Period | 90.00% | ||
Legacy Limited Module Power Output Warranty, First Period | 10 years | ||
Legacy Limited Module Power Output Warranty, Energy Threshold, Second Period | 80.00% | ||
Legacy Limited Module Power Output Warranty, Second Period | 15 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Stop-Loss Coverage Amount Per Covered Person | $ 200 | ||
Equity Method Investment, Other than Temporary Impairment | $ 0 | $ 7,100 | $ 200 |
Minimum [Member] | |||
Accounting Policies [Line Items] | |||
Standard Limited Module Power Output Warranty | 80.00% | ||
Standard Limited EPC Warranty Term | 1 year | ||
Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Standard Limited Module Power Output Warranty | 97.00% | ||
Standard Limited EPC Warranty Term | 2 years | ||
PV solar power systems [Member] | |||
Accounting Policies [Line Items] | |||
Net sales | $ 9,800 | ||
Software and Software Development Costs [Member] | Minimum [Member] | |||
Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Software and Software Development Costs [Member] | Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 7 years |
Note 3. Recent Accounting Pro57
Note 3. Recent Accounting Pronouncements Note 3. Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Prepaid Expenses and Other Current Assets [Member] | Accounting Standards Update 2015-03 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 0.5 | |
Other Assets [Member] | Accounting Standards Update 2015-03 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 2.9 | |
Deferred Tax Assets, Current [Member] | Accounting Standards Update 2015-17 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 77.9 | $ 91.6 |
Note 4. Asset Impairments (Deta
Note 4. Asset Impairments (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||||
Proceeds from sales of property, plant, and equipment | $ 77 | $ 1,532 | $ 116,403 | ||
Mesa Plant [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment charges | $ 56,500 | ||||
Proceeds from sales of property, plant, and equipment | $ 115,000 | ||||
Vietnam Plant [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment charges | $ 25,200 |
Note 5. Business Acquisitions (
Note 5. Business Acquisitions (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 84,985 | $ 84,985 | $ 84,985 | |||
General Electric [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Common stock issued for acquisition, shares | 1,750,000 | |||||
Value of stock issued for acquisition | $ 83,800 | |||||
Goodwill | 10,100 | |||||
General Electric [Member] | In-process research and development [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, finite-lived intangibles | $ 73,700 | |||||
TetraSun [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 6,100 | |||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||||
TetraSun [Member] | In-process research and development [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, finite-lived intangibles | $ 39,100 | |||||
Solar Chile [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 3,400 | |||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||||
TetraSun and Solar Chile [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, contingent consideration liability, current | 2,500 | 4,900 | ||||
Business combination, contingent consideration liability, noncurrent | 4,900 | $ 14,700 | ||||
Payments for contingent consideration | 2,500 | |||||
Business combination, contingent consideration arrangements, change in amount of contingent consideration, liability | $ 10,000 |
Note 6. Goodwill and Intangib60
Note 6. Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Line Items] | |||
Accumulated impairment losses | $ (393,365) | $ (393,365) | $ (393,365) |
Goodwill | 84,985 | 84,985 | 84,985 |
Goodwill from acquisition | 0 | 0 | |
Goodwill impairment | 0 | 0 | |
CdTe Components Segment [Member] | |||
Goodwill [Line Items] | |||
Goodwill, gross | 403,420 | 403,420 | 403,420 |
Goodwill from acquisition | 0 | 0 | |
Crystalline Silicon Components Segment [Member] | |||
Goodwill [Line Items] | |||
Goodwill, gross | 6,097 | 6,097 | 6,097 |
Goodwill from acquisition | 0 | 0 | |
Systems Segment [Member] | |||
Goodwill [Line Items] | |||
Goodwill, gross | 68,833 | 68,833 | $ 68,833 |
Goodwill | 68,833 | 68,833 | |
Goodwill from acquisition | $ 0 | $ 0 |
Note 6. Goodwill and Intangib61
Note 6. Goodwill and Intangible Assets (Details) - Other Intangible Assets - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Intangible Assets, Net [Abstract] | |||
Intangible assets, gross | $ 120,635 | $ 120,904 | |
Intangible assets, accumulated amortization | (10,633) | (1,668) | |
Intangible assets, net | 110,002 | 119,236 | |
Amortization of intangible assets | 9,200 | 1,200 | $ 900 |
Other Intangible Assets, Future Amortization Expense, Current and Five Succeeding Fiscal Years [Abstract] | |||
Other Intangible Assets, Amortization Expense, Next Twelve Months | 11,787 | ||
Other Intangible Assets, Amortization Expense, Year Two | 11,403 | ||
Other Intangible Assets, Amortization Expense, Year Three | 11,161 | ||
Other Intangible Assets, Amortization Expense, Year Four | 11,161 | ||
Other Intangible Assets, Amortization Expense, Year Five | 11,161 | ||
Other Intangible Assets, Amortization Expense, Thereafter | 53,329 | ||
Patents [Member] | |||
Other Intangible Assets, Net [Abstract] | |||
Intangible assets, gross | 6,070 | 5,347 | |
Intangible assets, accumulated amortization | (1,824) | (1,208) | |
Intangible assets, net | 4,246 | 4,139 | |
Developed technology [Member] | |||
Other Intangible Assets, Net [Abstract] | |||
Intangible assets, gross | 114,565 | 2,757 | |
Intangible assets, accumulated amortization | (8,809) | (460) | |
Intangible assets, net | $ 105,756 | 2,297 | |
In-process research and development [Member] | |||
Other Intangible Assets, Net [Abstract] | |||
Intangible assets, gross | 112,800 | ||
Intangible assets, accumulated amortization | 0 | ||
Intangible assets, net | $ 112,800 | ||
General Electric [Member] | |||
Other Intangible Assets, Net [Abstract] | |||
Intangible assets, useful life | 10 years | ||
General Electric [Member] | Developed technology [Member] | |||
Other Intangible Assets, Net [Abstract] | |||
Intangible assets, gross | $ 73,700 | ||
TetraSun [Member] | |||
Other Intangible Assets, Net [Abstract] | |||
Intangible assets, useful life | 12 years | ||
TetraSun [Member] | Developed technology [Member] | |||
Other Intangible Assets, Net [Abstract] | |||
Intangible assets, gross | $ 39,100 |
Note 7. Cash, Cash Equivalent62
Note 7. Cash, Cash Equivalents, and Marketable Securities (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)Investments | Dec. 31, 2014USD ($)Investments | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||
Cash and cash equivalents | $ 1,126,826 | $ 1,482,054 | $ 1,325,072 | $ 901,294 |
Marketable securities | 703,454 | 509,032 | ||
Total cash, cash equivalents, marketable securities, and investments | $ 1,830,280 | 1,991,086 | ||
Marketable securities, realized gain (loss) | $ 200 | |||
Available-for-sale securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Investments | 2 | 2 | ||
Available-for-sale securities, in loss position for 12 months or greater, estimated fair value | $ 31,491 | $ 41,060 | ||
Available-for-sale securities, continuous unrealized loss position, 12 months or greater, accumulated loss | 69 | 13 | ||
Foreign debt [Member] | ||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||
Marketable securities | 663,454 | 462,731 | ||
Available-for-sale securities, in loss position for 12 months or greater, estimated fair value | 31,491 | 41,060 | ||
Available-for-sale securities, continuous unrealized loss position, 12 months or greater, accumulated loss | 69 | 13 | ||
Time deposits [Member] | ||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||
Marketable securities | 40,000 | 40,000 | ||
U.S. debt [Member] | ||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||
Marketable securities | 0 | 2,800 | ||
U.S. government obligations [Member] | ||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||
Marketable securities | 0 | 3,501 | ||
Cash [Member] | ||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||
Cash and cash equivalents | 1,126,496 | 1,480,452 | ||
Money Market Funds [Member] | ||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||
Cash and cash equivalents | 330 | 1,602 | ||
Maximum [Member] | ||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||
Marketable securities, realized gain (loss) | 100 | $ 100 | ||
Available-for-sale securities, continuous unrealized loss position, 12 months or greater, accumulated loss | $ 100 | $ 100 |
Note 7. Cash, Cash Equivalent63
Note 7. Cash, Cash Equivalents, and Marketable Securities (Details) - Available For Sale - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | $ 705,900 | $ 509,766 |
Available-for-sale securities, gross unrealized gains | 9 | 19 |
Available-for-sale securities, gross unrealized losses | 2,455 | 753 |
Available-for-sale securities, estimated fair value | 703,454 | 509,032 |
Available-for-sale securities, accumulated unrealized gain (loss) | (2,400) | (700) |
Marketable securities, continuous unrealized loss position: | ||
Available-for-sale securities, in loss position for less than 12 months, estimated fair value | 629,033 | 391,840 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | 2,386 | 740 |
Available-for-sale securities, in loss position for 12 months or greater, estimated fair value | 31,491 | 41,060 |
Available-for-sale securities, continuous unrealized loss position, 12 months or greater, accumulated loss | 69 | 13 |
Available-for-sale securities, in loss position, estimated fair value | 660,524 | 432,900 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | 2,455 | 753 |
One year or less [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 290,377 | 329,974 |
Available-for-sale securities, gross unrealized gains | 9 | 14 |
Available-for-sale securities, gross unrealized losses | 406 | 174 |
Available-for-sale securities, estimated fair value | 289,980 | 329,814 |
One year to two years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 228,492 | 125,892 |
Available-for-sale securities, gross unrealized gains | 0 | 5 |
Available-for-sale securities, gross unrealized losses | 1,183 | 380 |
Available-for-sale securities, estimated fair value | 227,309 | 125,517 |
Two years to three years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 187,031 | 53,900 |
Available-for-sale securities, gross unrealized gains | 0 | 0 |
Available-for-sale securities, gross unrealized losses | 866 | 199 |
Available-for-sale securities, estimated fair value | 186,165 | 53,701 |
Foreign debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 665,900 | 463,466 |
Available-for-sale securities, gross unrealized gains | 9 | 18 |
Available-for-sale securities, gross unrealized losses | 2,455 | 753 |
Available-for-sale securities, estimated fair value | 663,454 | 462,731 |
Marketable securities, continuous unrealized loss position: | ||
Available-for-sale securities, in loss position for less than 12 months, estimated fair value | 629,033 | 391,840 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | 2,386 | 740 |
Available-for-sale securities, in loss position for 12 months or greater, estimated fair value | 31,491 | 41,060 |
Available-for-sale securities, continuous unrealized loss position, 12 months or greater, accumulated loss | 69 | 13 |
Available-for-sale securities, in loss position, estimated fair value | 660,524 | 432,900 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | 2,455 | 753 |
Time deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 40,000 | 40,000 |
Available-for-sale securities, gross unrealized gains | 0 | 0 |
Available-for-sale securities, gross unrealized losses | 0 | 0 |
Available-for-sale securities, estimated fair value | 40,000 | 40,000 |
U.S. debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 2,800 | |
Available-for-sale securities, gross unrealized gains | 0 | |
Available-for-sale securities, gross unrealized losses | 0 | |
Available-for-sale securities, estimated fair value | 0 | 2,800 |
U.S. government obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 3,500 | |
Available-for-sale securities, gross unrealized gains | 1 | |
Available-for-sale securities, gross unrealized losses | 0 | |
Available-for-sale securities, estimated fair value | $ 0 | $ 3,501 |
Note 8. Restricted Cash and I64
Note 8. Restricted Cash and Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Cash and Investments [Abstract] | ||
Restricted cash | $ 7,764 | $ 49,818 |
Restricted investments | 326,114 | 357,235 |
Restricted cash and investments, noncurrent | 333,878 | 407,053 |
Restricted cash, current | $ 72,526 | $ 74,695 |
Solar module collection and recycling custodial account | 90 days | |
Product minimum service life | 25 years |
Note 8. Restricted Cash and I65
Note 8. Restricted Cash and Investments (Details) - Available For Sale - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | $ 705,900 | $ 509,766 |
Available-for-sale securities, gross unrealized gains | 9 | 19 |
Available-for-sale securities, gross unrealized losses | 2,455 | 753 |
Restricted investments | 326,114 | 357,235 |
U.S. government obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 3,500 | |
Available-for-sale securities, gross unrealized gains | 1 | |
Available-for-sale securities, gross unrealized losses | 0 | |
Restricted Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 238,735 | 247,965 |
Available-for-sale securities, gross unrealized gains | 87,379 | 109,270 |
Available-for-sale securities, gross unrealized losses | 0 | 0 |
Restricted investments | 326,114 | 357,235 |
Restricted Investments [Member] | Foreign government obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 177,507 | 189,455 |
Available-for-sale securities, gross unrealized gains | 75,670 | 93,280 |
Available-for-sale securities, gross unrealized losses | 0 | 0 |
Restricted investments | 253,177 | 282,735 |
Restricted Investments [Member] | U.S. government obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 61,228 | 58,510 |
Available-for-sale securities, gross unrealized gains | 11,709 | 15,990 |
Available-for-sale securities, gross unrealized losses | 0 | 0 |
Restricted investments | $ 72,937 | $ 74,500 |
Minimum [Member] | Restricted Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Contractual maturities of available-for-sale marketable securities, range start (in years) | 12 years | 13 years |
Maximum [Member] | Restricted Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Contractual maturities of available-for-sale marketable securities, range end (in years) | 21 years | 22 years |
Note 9. Consolidated Balance 66
Note 9. Consolidated Balance Sheet Details (Details) $ in Thousands, € in Millions | 12 Months Ended | ||||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2014EUR (€) | Feb. 07, 2014USD ($) | Apr. 08, 2009EUR (€) | |
Accounts receivable trade, net: | |||||||
Accounts receivable trade, gross | $ 500,631 | $ 142,542 | |||||
Allowance for doubtful accounts | (2) | (7,108) | |||||
Accounts receivable trade, net | 500,629 | 135,434 | |||||
Secured accounts receivables | 21,500 | 21,400 | |||||
Accounts receivable, unbilled | 40,205 | 41,868 | |||||
Retainage | 18,966 | 35,103 | |||||
Accounts receivable, unbilled and retainage | 59,171 | 76,971 | |||||
Inventories: | |||||||
Raw materials | 159,078 | 157,468 | |||||
Work in process | 19,736 | 20,829 | |||||
Finished goods | 309,369 | 442,408 | |||||
Inventories | 488,183 | 620,705 | |||||
Inventories - current | 380,424 | 505,088 | |||||
Inventories - noncurrent | 107,759 | 115,617 | |||||
Balance of systems parts | 136,889 | 125,083 | |||||
Prepaid expenses and other current assets: | |||||||
Prepaid expenses | 74,990 | 42,193 | |||||
Derivative instruments | 2,691 | 9,791 | |||||
Restricted cash | 72,526 | 74,695 | |||||
Other current assets | 98,770 | 75,472 | |||||
Prepaid expenses and other current assets | 248,977 | 202,151 | |||||
Property, plant and equipment, net: | |||||||
Property, plant and equipment, gross | 2,619,685 | 2,553,078 | |||||
Less: accumulated depreciation | (1,335,549) | (1,133,090) | |||||
Property, plant and equipment, net | 1,284,136 | 1,419,988 | |||||
PV solar power systems, net | |||||||
PV solar power systems, gross | 97,991 | 47,727 | |||||
Accumulated depreciation | (4,250) | (1,334) | |||||
PV solar power systems, net | 93,741 | 46,393 | |||||
PV solar power systems placed in service | 52,200 | ||||||
Interest Costs Incurred | |||||||
Interest cost incurred | (19,367) | (10,828) | $ (11,703) | ||||
Interest expense, net | (6,975) | (1,982) | (1,884) | ||||
Project Assets - Current and Noncurrent: | |||||||
Project assets - development costs, including project acquisition and land costs | 436,375 | 379,373 | |||||
Project assets - construction costs | 674,762 | 408,402 | |||||
Project assets | 1,111,137 | 787,775 | |||||
Deferred Project Costs | |||||||
Deferred project costs - current | 187,940 | 29,354 | |||||
Deferred project costs - noncurrent | 0 | 22,573 | |||||
Deferred project costs | 187,940 | 51,927 | |||||
Total project assets and deferred project costs | 1,299,077 | 839,702 | |||||
Other Assets, Noncurrent | |||||||
Notes receivable | 12,648 | 12,096 | |||||
Income taxes receivable | 4,071 | 4,850 | |||||
Deferred rent | 23,317 | 23,823 | |||||
Other | 29,686 | 20,901 | |||||
Other assets | 69,722 | 61,670 | |||||
Accrued Expenses | |||||||
Accrued compensation and benefits | 63,699 | 43,072 | |||||
Accrued property, plant, and equipment | 7,808 | 30,723 | |||||
Accrued inventory and balance of system parts | 53,542 | 36,233 | |||||
Accrued project assets and deferred project costs | 145,695 | 113,012 | |||||
Product warranty liability | 38,468 | 69,656 | |||||
Accrued expenses in excess of normal product warranty liability and related expenses | 5,040 | 7,800 | |||||
Other | 95,200 | 87,660 | |||||
Accrued expenses | 409,452 | 388,156 | |||||
Billings in excess of costs and estimated earnings | 87,942 | 195,346 | |||||
Payments and billings for deferred project costs | 28,580 | 60,591 | |||||
Other current liabilities | |||||||
Deferred revenue | 17,957 | 21,879 | |||||
Derivative instruments | 16,450 | 7,657 | |||||
Contingent consideration | 9,233 | 36,817 | |||||
Financing liability | 5,277 | 0 | |||||
Other | 8,821 | 22,311 | |||||
Other current liabilities | 57,738 | 88,664 | |||||
Other liabilities: | |||||||
Product warranty liability | 193,283 | 153,401 | |||||
Other taxes payable | 66,549 | 82,555 | |||||
Contingent consideration | 8,756 | 17,077 | |||||
Liability in excess of normal product warranty liability and related expenses | 19,565 | 23,139 | |||||
Financing liability | 36,706 | 0 | |||||
Other | 67,453 | 44,412 | |||||
Other liabilities | 392,312 | 320,584 | |||||
Credit Facility Agreement [Member] | |||||||
Other Assets, Noncurrent | |||||||
Notes receivable | 7,600 | 8,500 | € 7 | € 7 | |||
Notes Receivable Initial Available Amount | € | € 17.5 | ||||||
Note Receivable Interest Rate | 8.00% | ||||||
Convertible Loan with Strategic Entity [Member] | |||||||
Other Assets, Noncurrent | |||||||
Notes receivable | 5,000 | 3,500 | |||||
Notes Receivable Initial Available Amount | $ 5,000 | ||||||
Note Receivable Interest Rate | 8.00% | ||||||
Property, plant and equipment [Member] | |||||||
Property, plant and equipment, net: | |||||||
Depreciation | 245,700 | 245,000 | 237,900 | ||||
PV solar power systems, net | |||||||
Depreciation | 245,700 | 245,000 | 237,900 | ||||
Interest Costs Incurred | |||||||
Interest costs, capitalized during period | 1,335 | 2,324 | 2,608 | ||||
PV solar power systems [Member] | |||||||
Property, plant and equipment, net: | |||||||
Depreciation | 2,900 | 1,400 | 0 | ||||
PV solar power systems, net | |||||||
Depreciation | 2,900 | 1,400 | 0 | ||||
Project assets and deferred project costs [Member] | |||||||
Interest Costs Incurred | |||||||
Interest costs, capitalized during period | 11,057 | 6,522 | $ 7,211 | ||||
Land [Member] | |||||||
Property, plant and equipment, net: | |||||||
Property, plant and equipment, gross | 12,063 | 12,378 | |||||
Building and improvements [Member] | |||||||
Property, plant and equipment, net: | |||||||
Property, plant and equipment, gross | 410,898 | 397,087 | |||||
Property, Plant and Equipment, Transfers and Changes | (15,200) | ||||||
Machinery and equipment [Member] | |||||||
Property, plant and equipment, net: | |||||||
Property, plant and equipment, gross | 1,824,717 | 1,649,363 | |||||
Property, Plant and Equipment, Transfers and Changes | (2,500) | ||||||
Office equipment and furniture [Member] | |||||||
Property, plant and equipment, net: | |||||||
Property, plant and equipment, gross | 144,773 | 134,268 | |||||
Leasehold improvements [Member] | |||||||
Property, plant and equipment, net: | |||||||
Property, plant and equipment, gross | 50,546 | 50,096 | |||||
Construction in progress [Member] | |||||||
Property, plant and equipment, net: | |||||||
Property, plant and equipment, gross | 37,734 | 154,497 | |||||
Stored assets [Member] | |||||||
Property, plant and equipment, net: | |||||||
Property, plant and equipment, gross | 138,954 | $ 155,389 | |||||
Property, Plant and Equipment, Transfers and Changes | $ 16,400 |
Note 10. Derivative Financial67
Note 10. Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ (2,691) | $ (9,791) |
Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 16,450 | 7,657 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 14,120 | 9,041 |
Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 1,213 |
Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 7,057 | 3,160 |
Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 14,120 | 9,041 |
Not Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2,691 | 8,578 |
Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 9,393 | 4,497 |
Not Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Foreign exchange forward contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1,213 | |
Derivative Liability, Fair Value, Gross Liability | 417 | |
Derivative Assets (Liabilities), at Fair Value, Net | 417 | (1,213) |
Foreign exchange forward contracts [Member] | Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 1,213 |
Foreign exchange forward contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 132 | 0 |
Foreign exchange forward contracts [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 285 | 0 |
Foreign exchange forward contracts [Member] | Not Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2,691 | 8,578 |
Foreign exchange forward contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 9,393 | 4,497 |
Foreign exchange forward contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Cross-currency swap contract | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 20,744 | 11,991 |
Derivative Assets (Liabilities), at Fair Value, Net | 20,744 | 11,991 |
Cross-currency swap contract | Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Cross-currency swap contract | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 6,909 | 2,996 |
Cross-currency swap contract | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 13,835 | 8,995 |
Interest rate swap contract | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 16 | 210 |
Derivative Assets (Liabilities), at Fair Value, Net | 16 | 210 |
Interest rate swap contract | Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Interest rate swap contract | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 16 | 164 |
Interest rate swap contract | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 46 |
Note 10. Derivative Financial68
Note 10. Derivative Financial Instruments (Details) - Hedging Relationship - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Balance in accumulated other comprehensive income (loss) | $ (1,871,000) | $ 3,012,000 | $ (2,172,000) | $ (518,000) |
Amounts recognized in other comprehensive income (loss) | (8,364,000) | (1,065,000) | 1,790,000 | |
Net sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts reclassified to net sales as a result of forecasted transactions being probable of not occurring | (1,295,000) | (13,115,000) | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (487,000) | |||
Cost of sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (5,509,000) | 501,000 | ||
Foreign Currency Gain (Loss) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 10,135,000 | 5,050,000 | 8,426,000 | |
Interest expense, net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 637,000 | 698,000 | 1,245,000 | |
Designated as Hedging Instrument [Member] | Foreign exchange forward contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 1,213,000 | |||
Derivative Liability, Fair Value, Gross Liability | (417,000) | |||
Gross derivative liability (asset) offset in statement of financial position | 0 | 0 | ||
Derivative Assets (Liabilities), at Fair Value, Net | 417,000 | (1,213,000) | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | |||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | |||
Derivative, Collateral, Right to Reclaim Cash | 0 | |||
Derivative, Collateral, Obligation to Return Cash | 0 | |||
Potential net amount of derivative asset (liability) | (417,000) | 1,213,000 | ||
Designated as Hedging Instrument [Member] | Cross-currency swap contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | (20,744,000) | (11,991,000) | ||
Gross derivative liability (asset) offset in statement of financial position | 0 | 0 | ||
Derivative Assets (Liabilities), at Fair Value, Net | 20,744,000 | 11,991,000 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | ||
Derivative, Collateral, Obligation to Return Cash | 0 | 0 | ||
Potential net amount of derivative asset (liability) | (20,744,000) | (11,991,000) | ||
Designated as Hedging Instrument [Member] | Interest rate swap contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | (16,000) | (210,000) | ||
Gross derivative liability (asset) offset in statement of financial position | 0 | 0 | ||
Derivative Assets (Liabilities), at Fair Value, Net | 16,000 | 210,000 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | ||
Derivative, Collateral, Obligation to Return Cash | 0 | 0 | ||
Potential net amount of derivative asset (liability) | (16,000) | (210,000) | ||
Not Designated as Hedging Instrument [Member] | Foreign exchange forward contracts [Member] | Net sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 5,324,000 | |
Not Designated as Hedging Instrument [Member] | Foreign exchange forward contracts [Member] | Cost of sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 12,422,000 | 13,240,000 | (3,760,000) | |
Not Designated as Hedging Instrument [Member] | Foreign exchange forward contracts [Member] | Foreign Currency Gain (Loss) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (3,425,000) | (8,066,000) | 6,063,000 | |
Cash Flow Hedging [Member] | Foreign exchange forward contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Balance in accumulated other comprehensive income (loss) | 162,000 | 6,621,000 | 4,351,000 | 8,980,000 |
Amounts recognized in other comprehensive income (loss) | 832,000 | 1,769,000 | 8,486,000 | |
Cash Flow Hedging [Member] | Foreign exchange forward contracts [Member] | Net sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts reclassified to net sales as a result of forecasted transactions being probable of not occurring | (1,295,000) | (13,115,000) | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (487,000) | |||
Cash Flow Hedging [Member] | Foreign exchange forward contracts [Member] | Cost of sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (5,509,000) | 501,000 | ||
Cash Flow Hedging [Member] | Foreign exchange forward contracts [Member] | Foreign Currency Gain (Loss) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 | |
Cash Flow Hedging [Member] | Foreign exchange forward contracts [Member] | Interest expense, net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 | |
Cash Flow Hedging [Member] | Foreign exchange forward contracts [Member] | Other Nonoperating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | (100,000) | 1,800,000 | (2,100,000) | |
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | 0 | 0 | |
Cash Flow Hedging [Member] | Cross-currency swap contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Balance in accumulated other comprehensive income (loss) | (2,017,000) | (3,399,000) | (5,820,000) | (8,031,000) |
Amounts recognized in other comprehensive income (loss) | (9,219,000) | (2,846,000) | (6,666,000) | |
Cash Flow Hedging [Member] | Cross-currency swap contract | Net sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts reclassified to net sales as a result of forecasted transactions being probable of not occurring | 0 | 0 | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | |||
Cash Flow Hedging [Member] | Cross-currency swap contract | Cost of sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | ||
Cash Flow Hedging [Member] | Cross-currency swap contract | Foreign Currency Gain (Loss) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 10,135,000 | 5,050,000 | 8,426,000 | |
Cash Flow Hedging [Member] | Cross-currency swap contract | Interest expense, net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 466,000 | 217,000 | 451,000 | |
Cash Flow Hedging [Member] | Interest rate swap contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Balance in accumulated other comprehensive income (loss) | (16,000) | (210,000) | (703,000) | $ (1,467,000) |
Amounts recognized in other comprehensive income (loss) | 23,000 | 12,000 | (30,000) | |
Cash Flow Hedging [Member] | Interest rate swap contract | Net sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts reclassified to net sales as a result of forecasted transactions being probable of not occurring | 0 | 0 | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | |||
Cash Flow Hedging [Member] | Interest rate swap contract | Cost of sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | ||
Cash Flow Hedging [Member] | Interest rate swap contract | Foreign Currency Gain (Loss) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 | |
Cash Flow Hedging [Member] | Interest rate swap contract | Interest expense, net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 171,000 | $ 481,000 | $ 794,000 |
Note 10. Derivative Financial69
Note 10. Derivative Financial Instruments (Details) - Risk Management € in Millions, ₨ in Millions, ¥ in Millions, MYR in Millions, AUD in Millions | 12 Months Ended | |||||||||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015MYR | Dec. 31, 2015INR (₨) | Dec. 31, 2014AUD | Dec. 31, 2014EUR (€) | Dec. 31, 2014MYR | Dec. 31, 2014JPY (¥) | Sep. 30, 2011MYR | May. 29, 2009EUR (€) | |
Derivatives, Fair Value [Line Items] | ||||||||||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ 700,000 | |||||||||||
Foreign exchange forward contracts [Member] | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Maximum Length of Time, Foreign Currency Cash Flow Hedge | 33 months | 6 months | ||||||||||
Malaysian Ringgit Facility Agreement [Member] | Cross-currency swap contract | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 54,200,000 | $ 88,600,000 | MYR 232.6 | MYR 310.1 | MYR 465 | |||||||
Derivative, Fixed Interest Rate | 3.495% | |||||||||||
Derivative, Forward Exchange Rate | 3.19 | |||||||||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | 0 | $ 0 | |||||||||
Malaysian Facility Agreement [Member] | Interest rate swap contract | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative, Notional Amount | 2,400,000 | 12,500,000 | € 2.2 | € 10.3 | € 57.3 | |||||||
Derivative, Fixed Interest Rate | 2.80% | |||||||||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | 0 | 0 | |||||||||
Cash Flow Hedging [Member] | Foreign exchange forward contracts [Member] | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | 200,000 | 6,600,000 | ||||||||||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | 100,000 | |||||||||||
Other Nonoperating Income (Expense) [Member] | Cash Flow Hedging [Member] | Foreign exchange forward contracts [Member] | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | 0 | $ 0 | |||||||||
India, Rupees | Cash Flow Hedging [Member] | Foreign exchange forward contracts [Member] | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 19,400,000 | ₨ 1,290 | ||||||||||
Australia, Dollars | Cash Flow Hedging [Member] | Foreign exchange forward contracts [Member] | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative, Notional Amount | 31,500,000 | AUD 38.4 | ||||||||||
Japan, Yen | Cash Flow Hedging [Member] | Foreign exchange forward contracts [Member] | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 10,300,000 | ¥ 1,223.2 |
Note 10. Derivative Financial70
Note 10. Derivative Financial Instruments (Details) - Transaction Exposure - Foreign exchange forward contracts [Member] € in Millions, ₨ in Millions, ¥ in Millions, £ in Millions, ZAR in Millions, MYR in Millions, CAD in Millions, AUD in Millions, $ in Millions | 12 Months Ended | |||||||||||||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015AUD | Dec. 31, 2015GBP (£) | Dec. 31, 2015EUR (€) | Dec. 31, 2015ZAR | Dec. 31, 2015MYR | Dec. 31, 2015CAD | Dec. 31, 2015INR (₨) | Dec. 31, 2015JPY (¥) | Dec. 31, 2014AUD | Dec. 31, 2014GBP (£) | Dec. 31, 2014EUR (€) | Dec. 31, 2014MYR | Dec. 31, 2014CAD | Dec. 31, 2014JPY (¥) | |
Derivative [Line Items] | ||||||||||||||||
Unrealized Gain (Loss) On Derivatives Not Designated As Hedges | $ (6.7) | $ 4.1 | ||||||||||||||
Maximum Remaining Maturity of Foreign Currency Derivatives | 2 years | |||||||||||||||
Euro Member Countries, Euro | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Currency Bought | Euro | Euro | ||||||||||||||
Derivative, Currency Sold | Euro | Euro | ||||||||||||||
Euro Member Countries, Euro | Purchase [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | $ 45.9 | $ 110.9 | € 42 | € 91.1 | ||||||||||||
Euro Member Countries, Euro | Sell [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | $ 164 | $ 112.5 | € 150.1 | € 92.4 | ||||||||||||
Australia, Dollars | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Currency Bought | Australian dollar | Australian dollar | ||||||||||||||
Derivative, Currency Sold | Australian dollar | Australian dollar | ||||||||||||||
Australia, Dollars | Purchase [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | $ 29.9 | $ 21.3 | AUD 41.1 | AUD 26 | ||||||||||||
Australia, Dollars | Sell [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | $ 64.8 | $ 96.7 | AUD 89 | AUD 118 | ||||||||||||
Malaysia, Ringgits | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Currency Bought | Malaysian ringgit | Malaysian ringgit | ||||||||||||||
Derivative, Currency Sold | Malaysian ringgit | Malaysian ringgit | ||||||||||||||
Malaysia, Ringgits | Purchase [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | $ 14.3 | $ 41.7 | MYR 61.4 | MYR 146 | ||||||||||||
Malaysia, Ringgits | Sell [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | $ 18.8 | $ 26.7 | MYR 80.7 | MYR 93.6 | ||||||||||||
Canada, Dollars | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Currency Bought | Canadian dollar | |||||||||||||||
Derivative, Currency Sold | Canadian dollar | Canadian dollar | ||||||||||||||
Canada, Dollars | Purchase [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | $ 0.6 | CAD 0.7 | ||||||||||||||
Canada, Dollars | Sell [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | $ 3.2 | $ 7.1 | CAD 4.5 | CAD 8.3 | ||||||||||||
Japan, Yen | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Currency Bought | Japanese yen | |||||||||||||||
Derivative, Currency Sold | Japanese yen | Japanese yen | ||||||||||||||
Japan, Yen | Purchase [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | $ 2.1 | ¥ 244.6 | ||||||||||||||
Japan, Yen | Sell [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | $ 70.1 | $ 19.5 | ¥ 8,448.7 | ¥ 2,322.1 | ||||||||||||
United Kingdom, Pounds | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Currency Bought | British pound | British pound | ||||||||||||||
Derivative, Currency Sold | British pound | British pound | ||||||||||||||
United Kingdom, Pounds | Purchase [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | $ 16.5 | $ 2.2 | £ 11.1 | £ 1.4 | ||||||||||||
United Kingdom, Pounds | Sell [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | $ 23.7 | $ 58.6 | £ 16 | £ 37.7 | ||||||||||||
India, Rupees | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Currency Sold | Indian rupee | |||||||||||||||
India, Rupees | Sell [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | $ 134.6 | ₨ 8,939 | ||||||||||||||
South Africa, Rand | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Currency Bought | South African rand | |||||||||||||||
Derivative, Currency Sold | South African rand | |||||||||||||||
South Africa, Rand | Purchase [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | $ 2.7 | ZAR 41.1 | ||||||||||||||
South Africa, Rand | Sell [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | $ 5.3 | ZAR 81.5 |
Note 11. Fair Value Measureme71
Note 11. Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Available-for-sale securities, estimated fair value | $ 703,454 | $ 509,032 |
Restricted investments | 326,114 | 357,235 |
Foreign debt [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 663,454 | 462,731 |
Time deposits [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 40,000 | 40,000 |
U.S. debt [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 0 | 2,800 |
U.S. government obligations | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 0 | 3,501 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Restricted investments | 326,114 | 357,235 |
Derivative assets | 2,691 | 9,791 |
Total assets | 1,032,589 | 877,660 |
Liabilities: | ||
Derivative liabilities | 30,570 | 16,698 |
Fair Value, Measurements, Recurring [Member] | Foreign debt [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 663,454 | 462,731 |
Fair Value, Measurements, Recurring [Member] | Time deposits [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 40,000 | 40,000 |
Fair Value, Measurements, Recurring [Member] | U.S. debt [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 2,800 | |
Fair Value, Measurements, Recurring [Member] | U.S. government obligations | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 3,501 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Restricted investments | 0 | 0 |
Derivative assets | 0 | 0 |
Total assets | 40,330 | 41,602 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign debt [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Time deposits [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 40,000 | 40,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. debt [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. government obligations | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Restricted investments | 326,114 | 357,235 |
Derivative assets | 2,691 | 9,791 |
Total assets | 992,259 | 836,058 |
Liabilities: | ||
Derivative liabilities | 30,570 | 16,698 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign debt [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 663,454 | 462,731 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Time deposits [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. debt [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 2,800 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. government obligations | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 3,501 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Restricted investments | 0 | 0 |
Derivative assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign debt [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Time deposits [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. debt [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. government obligations | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 0 | |
Money market funds | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Money market funds | 330 | 1,602 |
Money market funds | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Money market funds | 330 | 1,602 |
Money market funds | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Money market funds | 0 | 0 |
Money market funds | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Money market funds | $ 0 | $ 0 |
Note 11. Fair Value Measureme72
Note 11. Fair Value Measurements (Details) - Balance Sheet Grouping - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Marketable securities | $ 703,454 | $ 509,032 |
Restricted investments | 326,114 | 357,235 |
Notes receivable - noncurrent | 12,648 | 12,096 |
Notes receivable, affiliates - noncurrent | 17,887 | 9,127 |
Restricted Investments [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Restricted investments | 326,114 | 357,235 |
Reported Value Measurement [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Marketable securities | 703,454 | 509,032 |
Foreign exchange forward contract assets | 2,691 | 9,791 |
Notes receivable - noncurrent | 12,648 | 12,096 |
Notes receivable, affiliates - noncurrent | 17,887 | 9,127 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, including current maturities | 288,350 | 211,915 |
Foreign exchange forward contract liabilities | 9,810 | 4,497 |
Reported Value Measurement [Member] | Restricted Investments [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Restricted investments | 326,114 | 357,235 |
Reported Value Measurement [Member] | Interest rate swap contract liabilities | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Interest rate derivative contract liabilities | 16 | 210 |
Reported Value Measurement [Member] | Cross-currency swap contract liabilities | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Interest rate derivative contract liabilities | 20,744 | 11,991 |
Estimate of Fair Value Measurement [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Marketable securities | 703,454 | 509,032 |
Foreign exchange forward contract assets | 2,691 | 9,791 |
Notes receivable - noncurrent | 18,382 | 12,189 |
Notes receivable, affiliates - noncurrent | 19,932 | 9,812 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, including current maturities | 294,449 | 224,489 |
Foreign exchange forward contract liabilities | 9,810 | 4,497 |
Estimate of Fair Value Measurement [Member] | Restricted Investments [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Restricted investments | 326,114 | 357,235 |
Estimate of Fair Value Measurement [Member] | Interest rate swap contract liabilities | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Interest rate derivative contract liabilities | 16 | 210 |
Estimate of Fair Value Measurement [Member] | Cross-currency swap contract liabilities | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Interest rate derivative contract liabilities | $ 20,744 | $ 11,991 |
Note 12. Investments in Uncon73
Note 12. Investments in Unconsolidated Affiliates and Joint Ventures (Details) $ / shares in Units, $ in Thousands, £ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Aug. 31, 2015 | Jun. 30, 2015USD ($)$ / sharesshares | Apr. 30, 2015 | Nov. 30, 2014USD ($) | Jun. 30, 2015USD ($)$ / sharesshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015GBP (£) | Dec. 31, 2014GBP (£) | Sep. 30, 2013 | |
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Equity method investments | $ 375,355 | $ 249,614 | |||||||||
Cost method investments | 24,450 | 5,415 | |||||||||
Investments in unconsolidated affiliates and joint ventures | 399,805 | 255,029 | |||||||||
Equity in earnings of unconsolidated affiliates, net of tax | 20,430 | (4,949) | $ (163) | ||||||||
Sale Leaseback Transaction, Amount Due under Financing Arrangement, Current | 5,277 | 0 | |||||||||
Sale Leaseback Transaction, Amount Due under Financing Arrangement, Noncurrent | 36,706 | 0 | |||||||||
Net sales | 3,578,995 | 3,391,187 | $ 3,309,616 | ||||||||
Notes receivable, affiliates - noncurrent | 17,887 | 9,127 | |||||||||
Notes receivable, affiliate | 1,276 | 12,487 | |||||||||
Summarized financial information, net sales | 7,099 | ||||||||||
Summarized financial information, operating loss | (555) | ||||||||||
Summarized financial information, net income | 8,936 | ||||||||||
Summarized financial information, net income attributable to equity method investees | 111,135 | ||||||||||
Summarized financial information, current assets | 70,135 | ||||||||||
Summarized financial information, long-term assets | 1,938,785 | ||||||||||
Summarized financial information, current liabilities | 150,313 | ||||||||||
Summarized financial information, long-term liabilities | 309,169 | ||||||||||
Summarized financial information, noncontrolling interests, including redeemable noncontrolling interests | 101,520 | ||||||||||
Maryland Solar Project [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Sale Leaseback Transaction, Amount Due under Financing Arrangement | 42,000 | ||||||||||
Sale Leaseback Transaction, Amount Due under Financing Arrangement, Current | 5,277 | ||||||||||
Sale Leaseback Transaction, Amount Due under Financing Arrangement, Noncurrent | 36,706 | ||||||||||
Maryland Solar LLC [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Subsidiary, Ownership Percentage by Parent | 100.00% | 100.00% | |||||||||
8point3 Energy Partners LP [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Sale of Stock, Number of Shares Issued in Transaction | shares | 20,000,000 | ||||||||||
Sale of Stock, Price Per Share | $ / shares | $ 21 | $ 21 | |||||||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Class B Shares Held | shares | 22,116,925 | 22,116,925 | |||||||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 31.00% | ||||||||||
Administrative Fees Expense | $ 600 | ||||||||||
Administrative Fees Expense, Right to Increase Percentage | 15.00% | ||||||||||
Management Fee Expense | $ 300 | ||||||||||
Management Fee Expense, Annual Escalation Percentage | 2.00% | ||||||||||
8point3 Energy Partners LP [Member] | Operations and Maintenance [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Net sales | 2,600 | ||||||||||
8point3 Operating Company, LLC [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Equity method investments | 152,500 | ||||||||||
Equity Method Investment, Common Units Held | shares | 6,721,810 | 6,721,810 | |||||||||
Equity Method Investment, Subordinated Units Held | shares | 15,395,115 | 15,395,115 | |||||||||
Equity Method Investment, Ownership Percentage | 31.00% | 31.00% | |||||||||
Proceeds from Equity Method Investment, Gross Distributions | $ 283,700 | ||||||||||
Minimum Quarterly Distribution, Threshold for Early Termination of Subordination Period | 150.00% | 150.00% | |||||||||
Minimum Quarterly Distribution, Measurement Period for Early Termination of Subordination Period | 1 year | ||||||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ 45,500 | $ 45,500 | |||||||||
Equity in earnings of unconsolidated affiliates, net of tax | 20,800 | ||||||||||
Equity Method Investment, Financial Information, Senior Secured Credit Facility | 525,000 | 525,000 | |||||||||
8point3 Operating Company, LLC [Member] | Term Loan Facility [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Equity Method Investment, Financial Information, Senior Secured Credit Facility | 300,000 | 300,000 | |||||||||
8point3 Operating Company, LLC [Member] | Delayed Draw Term Loan Facility [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Equity Method Investment, Financial Information, Senior Secured Credit Facility | 25,000 | 25,000 | |||||||||
8point3 Operating Company, LLC [Member] | Revolving Credit Facility [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Equity Method Investment, Financial Information, Senior Secured Credit Facility | 200,000 | 200,000 | |||||||||
SG2 Holdings, LLC [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Equity method investments | $ 224,500 | $ 224,500 | 219,900 | ||||||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | 49.00% | ||||||||
Equity in earnings of unconsolidated affiliates, net of tax | $ 2,100 | ||||||||||
Equity Method Investment, Ownership Percentage Sold | 51.00% | ||||||||||
Power Purchase Agreement, Term | 25 years | ||||||||||
Lost Hills Blackwell Holdings, LLC [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Equity method investments | $ 34,100 | $ 34,100 | |||||||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | 49.00% | ||||||||
Equity in earnings of unconsolidated affiliates, net of tax | $ 200 | ||||||||||
Equity Method Investment, Ownership Percentage Sold | 51.00% | ||||||||||
Power Purchase Agreement, Term | 25 years | ||||||||||
NS Solar Holdings, LLC [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Equity method investments | $ 93,600 | $ 93,600 | |||||||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | 49.00% | ||||||||
Equity Method Investment, Ownership Percentage Sold | 51.00% | ||||||||||
Power Purchase Agreement, Term | 20 years | ||||||||||
NS Solar Holdings, LLC [Member] | Maximum [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Equity in earnings of unconsolidated affiliates, net of tax | $ (100) | ||||||||||
Desert Stateline Holdings, LLC [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Equity method investments | 196,900 | ||||||||||
Equity Method Investment, Ownership Percentage | 49.00% | ||||||||||
Equity in earnings of unconsolidated affiliates, net of tax | 0 | ||||||||||
Equity Method Investment, Ownership Percentage Sold | 51.00% | ||||||||||
Power Purchase Agreement, Term | 20 years | ||||||||||
Clean Energy Collective, LLC [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Equity method investments | $ 16,100 | 19,500 | |||||||||
Equity Method Investment, Ownership Percentage | 27.00% | 27.00% | |||||||||
Equity in earnings of unconsolidated affiliates, net of tax | $ 1,900 | 300 | |||||||||
Notes Receivable, Related Parties, Borrowing Capacity | $ 15,000 | ||||||||||
Notes receivable, affiliates - noncurrent | 15,000 | 9,100 | |||||||||
Clean Energy Collective, LLC [Member] | Minimum [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Note Receivable Interest Rate | 7.00% | ||||||||||
Clean Energy Collective, LLC [Member] | Maximum [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Note Receivable Interest Rate | 16.00% | ||||||||||
Clean Energy Collective, LLC Warrant [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Cost method investments | $ 1,800 | ||||||||||
Unconsolidated JV [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||||||
Equity Method Investment, Ownership Percentage by Third Party | 50.00% | ||||||||||
Notes receivable, affiliate | $ 4,200 | $ 12,500 | £ 2.8 | £ 8 | |||||||
Unconsolidated JV [Member] | Minimum [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Note Receivable Interest Rate | 6.00% | 6.00% | |||||||||
Unconsolidated JV [Member] | Maximum [Member] | |||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | |||||||||||
Note Receivable Interest Rate | 8.00% | 8.00% |
Note 13. Percentage-of-Comple74
Note 13. Percentage-of-Completion Changes in Estimates (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)Projects | Dec. 31, 2014USD ($)Projects | |
Changes in Estimates for Systems Business [Abstract] | ||
Project change in estimate disclosure threshold | $ 1,000 | |
Number of projects | Projects | 6 | 9 |
Increases (decreases) in gross profit resulting from net changes in estimates (in thousands) | $ 31,928 | $ 40,118 |
Net change in estimates as percentage of aggregate gross profit for assoiated projects | 3.40% | 1.60% |
Note 14. Solar Module Collect75
Note 14. Solar Module Collection and Recycling Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Solar Module Collection and Recycling Liability [Abstract] | |||
Decrease in solar module collection and recycling liability | $ 80,000 | ||
Accrued solar module collection and recycling liability | 163,407 | $ 246,307 | |
Solar module collection and recycling expense, cost of sales | (67,600) | 30,700 | $ 15,100 |
Solar module collection and recycling expense, accretion expense | $ (4,400) | $ 7,500 | $ 4,600 |
Percentage increase in annualized inflation rate | 1.00% | ||
Estimated increase in solar module collection recycling liability from sensitivity analysis | $ 36,700 | ||
Percentage decrease in annualized inflation rate | 1.00% | ||
Estimated decrease in solar module collection recycling liability from sensitivity analysis | $ 30,700 | ||
Percentage of modules sold subject to solar module collection and recycling liability | 1.00% | 56.00% |
Note 15. Debt (Details)
Note 15. Debt (Details) $ in Thousands, ₨ in Billions, ¥ in Billions | 12 Months Ended | ||||||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015INR (₨) | Sep. 30, 2015USD ($) | Sep. 30, 2015JPY (¥) | Mar. 31, 2015USD ($) | Mar. 31, 2015INR (₨) | Aug. 31, 2014USD ($) | |
Long-term Debt [Abstract] | |||||||||
Long-term debt, gross | $ 300,392 | $ 225,512 | |||||||
Less: unamortized discount discount and issuance costs | (10,977) | (12,039) | |||||||
Total long-term debt | 289,415 | 213,473 | |||||||
Less: current portion | (38,090) | (51,399) | |||||||
Noncurrent portion | 251,325 | 162,074 | |||||||
Interest Paid | 15,200 | 7,600 | $ 9,300 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 38,331 | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 29,419 | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 67,692 | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 5,785 | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 11,930 | ||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 146,170 | ||||||||
Total long-term debt future principal payments | $ 299,327 | ||||||||
Revolving Credit Facility [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Debt Instrument, Maturity Date, Description | July 2,018 | ||||||||
Debt Instrument, Currency | USD | ||||||||
Revolving credit facility | $ 0 | 0 | |||||||
Line of Credit Facility, Current Borrowing Capacity | 700,000 | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 900,000 | ||||||||
Letters of Credit Outstanding, Amount | 191,600 | 202,500 | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 508,400 | 397,500 | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | ||||||||
fronting fee | 0.125% | ||||||||
Line of Credit Facility, Letter of Credit Sub-Limit | $ 500,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | 0.00% | |||||||
Debt Instrument, Description of Variable Rate Basis | Borrowings under the Revolving Credit Facility bear interest at (i) LIBOR (adjusted for Eurocurrency reserve requirements) plus a margin of 2.25% or (ii) a base rate as defined in the credit agreement plus a margin of 1.25%, depending on the type of borrowing requested | ||||||||
Revolving Credit Facility [Member] | Minimum [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||||||
Revolving Credit Facility [Member] | Maximum [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||||
Project Construction Credit Facilities [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Debt Instrument, Maturity Date, Description | Various | ||||||||
Debt Instrument, Currency | Various | ||||||||
Long-term debt, gross | $ 218,183 | 75,418 | |||||||
Project Construction Credit Facilities [Member] | OPIC [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt, gross | 125,100 | 47,300 | |||||||
Line of Credit Facility, Current Borrowing Capacity | 178,000 | ||||||||
Project Construction Credit Facilities [Member] | IFC [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt, gross | 42,200 | 16,000 | |||||||
Line of Credit Facility, Current Borrowing Capacity | 60,000 | ||||||||
Project Construction Credit Facilities [Member] | OPIC and IFC [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 238,000 | $ 290,000 | |||||||
Debt Instrument, Collateral Amount | $ 388,900 | ||||||||
Debt Instrument, Description of Fixed Rate Basis | Fixed rate loans at bank rate plus 3.50% | ||||||||
Debt Instrument, Description of Variable Rate Basis | Variable rate loans at 91-Day U.S. Treasury Bill Yield or LIBOR plus 3.50% | ||||||||
Debt Instrument, Basis Spread on Fixed Rate | 3.50% | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | ||||||||
Project Construction Credit Facilities [Member] | Banco de Crédito e Inversiones [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt, gross | $ 40,400 | 12,200 | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 65,000 | ||||||||
Debt Instrument, Description of Variable Rate Basis | VAT loans at bank rate plus 1.30% | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.30% | ||||||||
Project Construction Credit Facilities [Member] | Mizuho Bank [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt, gross | $ 5,300 | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 33,200 | ¥ 4 | |||||||
Debt Instrument, Description of Variable Rate Basis | TIBOR plus 0.5% | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||||
Project Construction Credit Facilities [Member] | Axis Bank [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Long-term debt, gross | $ 5,200 | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 16,600 | ₨ 1.1 | |||||||
Letters of Credit Outstanding, Amount | 11,300 | ₨ 0.8 | |||||||
Debt Instrument, Collateral Amount | $ 90,300 | ||||||||
Line of Credit Facility, Letter of Credit Sub-Limit | $ 12,000 | ₨ 0.8 | |||||||
Debt Instrument, Description of Variable Rate Basis | Bank rate plus 2.35% | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.35% | ||||||||
Project Construction Credit Facilities [Member] | Fixed Rate Term Loan [Member] | OPIC [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 133,300 | ||||||||
Project Construction Credit Facilities [Member] | Fixed Rate Term Loan [Member] | IFC [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Line of Credit Facility, Current Borrowing Capacity | 44,900 | ||||||||
Project Construction Credit Facilities [Member] | Variable Rate Term Loan [Member] | OPIC [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Line of Credit Facility, Current Borrowing Capacity | 44,700 | ||||||||
Project Construction Credit Facilities [Member] | Variable Rate Term Loan [Member] | IFC [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 15,100 | ||||||||
Malaysian Ringgit Facility Agreement [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Debt Instrument, Maturity Date, Description | September 2,018 | ||||||||
Debt Instrument, Currency | MYR | ||||||||
Long-term debt, gross | $ 54,175 | 88,606 | |||||||
Debt Instrument, Collateral Amount | $ 240,800 | ||||||||
Debt Instrument, Description of Variable Rate Basis | KLIBOR plus 2.00% (2) | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||||||
Malaysian Euro Facility Agreement [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Debt Instrument, Maturity Date, Description | April 2,018 | ||||||||
Debt Instrument, Currency | EUR | ||||||||
Long-term debt, gross | $ 21,869 | 34,112 | |||||||
Debt Instrument, Description of Variable Rate Basis | EURIBOR plus 1.00% | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||||
Malaysian Facility Agreement [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Debt Instrument, Maturity Date, Description | March 2,016 | ||||||||
Debt Instrument, Currency | EUR | ||||||||
Long-term debt, gross | $ 5,100 | 25,818 | |||||||
Debt Instrument, Collateral Amount | $ 1,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.54% | 4.54% | |||||||
Debt Instrument, Description of Variable Rate Basis | Floating rate facility at EURIBOR plus 0.55% (2) | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.55% | ||||||||
Capital Lease Obligations [Member] | |||||||||
Long-term Debt [Abstract] | |||||||||
Debt Instrument, Maturity Date, Description | Various | ||||||||
Debt Instrument, Currency | Various | ||||||||
Long-term debt, gross | $ 1,065 | $ 1,558 |
Note 16. Commitments and Cont77
Note 16. Commitments and Contingencies (Details) - Commercial Commitments - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Bank Guarantees and Letters of Credit | $ 16.8 | |
Surety Bonds | 154 | |
Surety Bond Capacity | 639 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | 700 | |
Line of Credit Facility, Letter of Credit Sub-Limit | 500 | |
Letters of Credit Outstanding, Amount | 191.6 | $ 202.5 |
Letters of Credit, Remaining Borrowing Capacity | 308.4 | |
Bilateral Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Letters of Credit Outstanding, Amount | 103.2 | |
Cash Collateral for Borrowed Securities | $ 71.5 |
Note 16. Commitments and Cont78
Note 16. Commitments and Contingencies (Details) - Lease Commitments - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases, Future Minimum Payments, Due Next Twelve Months | $ 18,273 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 16,025 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 13,733 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 10,505 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 5,378 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 104,860 | ||
Total Minimum Operating Lease Payments | 168,774 | ||
Operating Leases, Future Minimum Payments, Due Next Twelve Months, Sublease Rentals | (1,449) | ||
Operating Leases, Future Minimum Payments, Due in Two Years, Sublease Rentals | (1,449) | ||
Operating Leases, Future Minimum Payments, Due in Three Years, Sublease Rentals | (906) | ||
Operating Leases, Future Minimum Payments, Due in Four Years, Sublease Rentals | 0 | ||
Operating Leases, Future Minimum Payments, Due in Five Years, Sublease Rentals | 0 | ||
Operating Leases, Future Minimum Payments, Due Thereafter, Sublease Rentals | 0 | ||
Operating Leases, Future Minimum Payments, Due Future Minimum Sublease Rentals | (3,804) | ||
Net Operating Leases, Future Minimum Payments, Due Next Twelve Months | 16,824 | ||
Net Operating Leases, Future Minimum Payments, Due in Two Years | 14,576 | ||
Net Operating Leases, Future Minimum Payments, Due in Three Years | 12,827 | ||
Net Operating Leases, Future Minimum Payments, Due in Four Years | 10,505 | ||
Net Operating Leases, Future Minimum Payments, Due in Five Years | 5,378 | ||
Net Operating Leases, Future Minimum Payments, Due Thereafter | 104,860 | ||
Net Operating Leases, Future Minimum Payments Due | 164,970 | ||
Capital Leases, Future Minimum Payments, Due Next Twelve Months | 540 | ||
Capital Leases Future Minimum Payments, Due in Two Years | 420 | ||
Capital Leases Future Minimum Payments, Due in Three Years | 97 | ||
Capital Leases Future Minimum Payments, Due in Four Years | 65 | ||
Capital Leases Future Minimum Payments, Due in Five Years | 0 | ||
Capital Leases Future Minimum Payments, Due Thereafter | 0 | ||
Total Minimum Capital Lease Payments | 1,122 | ||
Less Amounts Representing Interest | (57) | ||
Present Value of Minimum Capital Lease Payments | 1,065 | ||
Less Current Portion of Obligations Under Capital Leases | (374) | ||
Noncurrent Portion of Obligations Under Capital Leases | 691 | ||
Aggregate Leases, Future Minimum Payments, Due in Next Twelve Months | 17,364 | ||
Aggregate Leases, Future Minimum Payments, Due in Two Years | 14,996 | ||
Aggregate Leases, Future Minimum Payments, Due in Three Years | 12,924 | ||
Aggregate Leases, Future Minimum Payments, Due in Four Years | 10,570 | ||
Aggregate Leases, Future Minimum Payments, Due in Five Years | 5,378 | ||
Aggregate Leases, Future Minimum Payments, Due Thereafter | 104,860 | ||
Aggregate Leases Future Minimum Payments Due | 166,092 | ||
Rent Expense | $ 22,500 | $ 18,000 | $ 14,400 |
Note 16. Commitments and Cont79
Note 16. Commitments and Contingencies (Details) - Purchase Commitments $ in Millions | Dec. 31, 2015USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation | $ 789.7 |
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months | 736 |
Capital Addition Purchase Commitments [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation | $ 35.2 |
Note 16. Commitments and Cont80
Note 16. Commitments and Contingencies (Details) - Product Warranties - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Product warranty liability, beginning of period | $ 223,057 | $ 198,041 | $ 191,596 |
Accruals for new warranties issued | 50,040 | 40,599 | 35,985 |
Settlements | (13,392) | (16,721) | (33,499) |
Changes in estimate of product warranty liability | (27,954) | 1,138 | 3,959 |
Product warranty liability, end of period | 231,751 | 223,057 | 198,041 |
Current portion of warranty liability | 38,468 | 69,656 | 67,097 |
Noncurrent portion of warranty liability | $ 193,283 | $ 153,401 | $ 130,944 |
Estimated Rate of Return for Module Warranty | 3.00% | ||
Percentage Point Change in Estimated Rate of Return of Module Warranty | 1.00% | ||
Estimated Change in Module Warranty from Sensitivity Analysis | $ 71,500 | ||
Percentage Point Change in Estimated Rate of Return of Balance of Systems Warranty | 1.00% |
Note 16. Commitments and Cont81
Note 16. Commitments and Contingencies (Details) - Accrual in Excess of Normal Warranty - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||
Total Product Warranty Accrual in Excess of Normal Product Warranty Liability | $ 24,600 | $ 30,900 |
Product Warranty Accrual in Excess of Normal Product Warranty Liability | 5,040 | 7,800 |
Product Warranty Accrual in Excess of Normal Product Warranty Noncurrent Liability | $ 19,565 | $ 23,139 |
Note 16. Commitments and Cont82
Note 16. Commitments and Contingencies (Details) - Performance Guarantees - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||
Energy Performance Testing Liability | $ 0.3 | $ 4.3 |
Note 16. Commitments and Cont83
Note 16. Commitments and Contingencies (Details) - Contingent Consideration - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition, Contingent Consideration [Line Items] | ||
Project Acquisition, Contingent Consideration Liability, Current | $ 6.7 | $ 31.9 |
Project Acquisition, Contingent Consideration Liability, Noncurrent | 3.9 | 2.4 |
TetraSun and Solar Chile [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Business combination, contingent consideration liability, current | 2.5 | 4.9 |
Business combination, contingent consideration liability, noncurrent | $ 4.9 | $ 14.7 |
Note 17. Stockholders' Equity84
Note 17. Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Stock Disclosures [Abstract] | ||||
Preferred Stock, Shares Authorized | 30,000,000 | 30,000,000 | ||
Preferred Stock, Par Value | $ 0.001 | $ 0.001 | ||
Preferred Stock, Shares Issued | 0 | 0 | ||
Preferred Stock, Shares Outstanding | 0 | 0 | ||
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | ||
Common Stock, Shares Issued | 101,766,797 | 100,288,942 | ||
Common Stock, Shares Outstanding | 101,766,797 | 100,288,942 | ||
Common stock issued for public offering, shares | 9,747,000 | |||
Shares Issued, Price Per Share | $ 46 | |||
Proceeds from equity offering, net of issuance costs | $ 428,190 | $ 0 | $ 0 | $ 428,190 |
Underwriting Discounts on Equity Offering | 17,900 | |||
Other Offering Expenses | $ 2,200 |
Note 18. Share-Based Compensa85
Note 18. Share-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-Based Comp Expense | $ 44,899 | $ 43,810 | $ 54,585 |
Allocated Share-based Compensation Expense, Gross | 42,973 | 45,181 | 53,684 |
Net amount released from (absorbed into) inventory | 1,926 | (1,371) | 901 |
Employee service share-based compensation, capitalized in inventory | $ 3,400 | $ 5,300 | |
Employee Service Share-Based Compensation, Forfeiture Rate | 9.50% | 9.50% | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 15,300 | $ 15,800 | 19,400 |
Restricted and performance stock units [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-Based Comp Expense | 40,393 | 42,852 | 51,433 |
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized | $ 28,300 | ||
Employee service share-based compensation, unrecognized compensation costs on nonvested awards, weighted average period of recognition (in years) | 8 months | ||
Unrestricted stock [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-Based Comp Expense | $ 1,326 | 1,326 | 1,253 |
Stock purchase plan [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-Based Comp Expense | 1,254 | 1,003 | 998 |
Cost of sales [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-Based Comp Expense | 10,713 | 11,713 | 17,116 |
Research and development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-Based Comp Expense | 4,109 | 4,417 | 5,760 |
Selling, general and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-Based Comp Expense | 30,052 | 27,660 | 31,426 |
Production start-up [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-Based Comp Expense | $ 25 | $ 20 | $ 283 |
Note 18. Share-Based Compensa86
Note 18. Share-Based Compensation (Details) - RSUs - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted and performance stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested restricted stock units at beginning of period (shares) | 4,319,461 | ||
Unvested restricted stock units at beginning of period (weighted average gant-date fair value) | $ 29.80 | ||
Restricted stock units granted (shares) | 444,942 | ||
Restricted stock units granted (weighted average grant-date fair value) | $ 60.91 | $ 57.74 | $ 29.56 |
Restricted stock units vested (shares) | (1,629,123) | ||
Restricted stock units vested (weighted average grant-date fair value) | $ 33.88 | ||
Restricted stock units forfeited (shares) | (160,787) | ||
Restricted stock units forfeited (weighted average grant-date fair value) | $ 41.32 | ||
Unvested restricted stock units at end of period (shares) | 2,974,493 | 4,319,461 | |
Unvested restricted stock units at end of period (weighted average grant-date fair value) | $ 31.59 | $ 29.80 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 96.4 | $ 66.8 | $ 33.6 |
Omnibus Incentive Compensation Plan 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,183,172 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,176,136 |
Note 18. Share-Based Compensa87
Note 18. Share-Based Compensation (Details) - Stock Awards - Stock Compensation Plan [Member] - Director [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Shares awarded | 25,376 | 21,879 | 31,891 |
Share-based compensation expense | $ 1.3 | $ 1.3 | $ 1.3 |
Note 18. Share-Based Compensa88
Note 18. Share-Based Compensation (Details) - Stock Purchase Plan - Stock purchase plan [Member] | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | 85.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Period For Purchase | 6 months |
Note 19. Benefit Plans (Details
Note 19. Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Plan, 401(k) Plan [Member] | |||
Defined Contribution Plan [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 7.4 | $ 6.5 | $ 6.7 |
Defined Contribution Plan, 401(k) Plan [Member] | Maximum [Member] | |||
Defined Contribution Plan [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent | 4.00% | ||
Defined Contribution Plan, Foreign Plan [Member] | |||
Defined Contribution Plan [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0.9 | $ 0.9 | $ 0.9 |
Note 20. Income Taxes (Details)
Note 20. Income Taxes (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||||
U.S. income | $ 126,958 | $ 139,137 | $ 78,346 | ||
Non-U.S. income | 392,877 | 292,964 | 302,633 | ||
Income before taxes and equity in earnings of unconsolidated affiliates | 519,835 | 432,101 | 380,979 | ||
Current Expense (Benefit) [Abstract] | |||||
Federal | 20,208 | 15,492 | 44,518 | ||
State | 4,172 | 1,699 | 836 | ||
Foreign | 23,215 | 8,123 | 5,622 | ||
Total current expense | 47,595 | 25,314 | 50,976 | ||
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||
Federal | (716) | 2,926 | (12,022) | ||
State | 3,118 | 5,133 | 2,229 | ||
Foreign | (56,153) | (2,185) | (11,085) | ||
Total deferred (benefit) expense | (53,751) | 5,874 | (20,878) | ||
Total income tax (benefit) expense | (6,156) | 31,188 | 30,098 | ||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 14,567 | 24,505 | 21,017 | ||
Investment Tax Credit | 19,200 | ||||
Increase (Decrease) in Income Tax Expense | 37,300 | (1,100) | |||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||
Statutory income tax expense ($) | $ 181,936 | $ 151,235 | $ 133,342 | ||
Statutory income tax expense (%) | 35.00% | 35.00% | 35.00% | ||
Non-deductible expenses ($) | $ 4,161 | $ 3,001 | $ 707 | ||
Non-deductible expenses (%) | 0.80% | 0.70% | 0.20% | ||
State tax, net of federal benefit ($) | $ 5,437 | $ 4,549 | $ 1,579 | ||
State tax, net of federal benefit (%) | 1.00% | 1.00% | 0.40% | ||
Effect of tax holiday ($) | $ (126,324) | $ (80,049) | $ (80,076) | ||
Effect of tax holiday (%) | (24.30%) | (18.50%) | (21.00%) | ||
Foreign tax rate differential ($) | $ (9,637) | $ (7,524) | $ (19,839) | ||
Foreign tax rate differential (%) | (1.90%) | (1.70%) | (5.20%) | ||
Effect of private letter ruling ($) | $ (41,694) | $ 0 | $ 0 | ||
Effect of private letter ruling (%) | (8.00%) | (0.00%) | (0.00%) | ||
Tax credits ($) | $ (2,566) | $ (3,014) | $ (13,267) | ||
Tax credits (%) | (0.50%) | (0.70%) | (3.50%) | ||
Other ($) | $ (9,670) | $ (5,369) | $ 1,606 | ||
Other (%) | (1.80%) | (1.20%) | 0.40% | ||
Impact of changes in valuation allowance ($) | $ (7,799) | $ (31,641) | $ 6,046 | ||
Impact of changes in valuation allowance (%) | (1.50%) | (7.40%) | 1.60% | ||
Reported income tax (benefit) expense (%) | (1.20%) | 7.20% | 7.90% | ||
Income Taxes Paid, Net | $ 30,800 | $ 17,000 | $ (1,600) | ||
Deferred tax assets [Abstract] | |||||
Goodwill | $ 32,022 | 32,022 | 39,299 | ||
Compensation | 38,938 | 38,938 | 38,890 | ||
Accrued expenses | 74,432 | 74,432 | 59,517 | ||
Tax credits | 211,066 | 211,066 | 174,633 | ||
Net operating losses | 95,562 | 95,562 | 86,268 | ||
Inventory | 5,961 | 5,961 | 11,435 | ||
Deferred expenses | 8,559 | 8,559 | 3,778 | ||
Property, plant and equipment | 38,869 | 38,869 | 48,026 | ||
Long-term contracts | 2,522 | 2,522 | 11,120 | ||
Other | 8,622 | 8,622 | 5,736 | ||
Deferred tax assets, gross | 516,553 | 516,553 | 478,702 | ||
Valuation allowance | (121,524) | (121,524) | (129,323) | $ (160,965) | $ (154,919) |
Deferred tax assets, net of valuation allowance | 395,029 | 395,029 | 349,379 | ||
Deferred tax liabilities [Abstract] | |||||
Capitalized interest | (4,270) | (4,270) | (5,216) | ||
Acquisition accounting / basis difference | (3,527) | (3,527) | (13,780) | ||
Deferred tax liabilities restricted investments and derivatives | (14,128) | (14,128) | (18,124) | ||
Investment in foreign subsidiaries | (379) | (379) | (967) | ||
Equity in earnings | (21,895) | (21,895) | (1,020) | ||
Other | (2,388) | (2,388) | (5,044) | ||
Deferred tax liabilities | (46,587) | (46,587) | (44,151) | ||
Net deferred tax assets and liabilities | 348,442 | 348,442 | $ 305,228 | ||
Foreign Tax Authority | |||||
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||
Private letter ruling tax benefit | $ 41,694 | ||||
Germany | |||||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||
Effective Income Tax Rate Reconciliation Foreign Statutory Tax Rate | 29.60% | ||||
Malaysia | |||||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||
Effective Income Tax Rate Reconciliation Foreign Statutory Tax Rate | 25.00% | 25.00% | 25.00% | ||
First Solar Malaysia Sdn. Bhd. [Member] | |||||
Deferred tax liabilities [Abstract] | |||||
Royalty prepayments | $ 96,600 |
Note 20. Income Taxes (Detail91
Note 20. Income Taxes (Details) - Valuation Allowance - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation Of Valuation Allowance [Roll Forward] | |||
Valuation allowance, beginning of year | $ 129,323 | $ 160,965 | $ 154,919 |
Additions | 368 | 2,068 | 15,059 |
Reversals | (8,167) | (33,710) | (9,013) |
Valuation allowance, end of year | 121,524 | 129,323 | $ 160,965 |
Valuation Allowance, Deferred Tax Asset, Change in Amount | 7,800 | ||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 1,000,000 | ||
Undistributed Earnings From Non US Subsidiaries | 2,900,000 | ||
Amount Not Included In Deferred Tax Asset In Relation To Excess Tax Deductions | 24,700 | ||
Domestic Country [Member] | |||
Reconciliation Of Valuation Allowance [Roll Forward] | |||
Operating Loss Carryforwards | 129,500 | 117,300 | |
State and Local Jurisdiction [Member] | |||
Reconciliation Of Valuation Allowance [Roll Forward] | |||
Operating Loss Carryforwards | 23,800 | $ 20,500 | |
Research Tax Credit Carryforward [Member] | |||
Reconciliation Of Valuation Allowance [Roll Forward] | |||
Tax Credit Carryforward, Amount | 32,700 | ||
Foreign Tax Credit Carryforward [Member] | |||
Reconciliation Of Valuation Allowance [Roll Forward] | |||
Tax Credit Carryforward, Amount | 167,000 | ||
Investment Tax Credit Carryforward [Member] | |||
Reconciliation Of Valuation Allowance [Roll Forward] | |||
Tax Credit Carryforward, Amount | $ 56,900 |
Note 20. Income Taxes (Detail92
Note 20. Income Taxes (Details) - Uncertainties - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Unrecognized tax benefits, beginning of year | $ 141,755 | $ 162,029 | $ 183,239 | $ 141,755 | $ 183,239 | $ 174,181 |
Increases related to prior year tax positions | 484 | 522 | 6,178 | |||
Decreases related to prior year tax positions | (2,693) | (2,513) | (15,245) | |||
Decreases from lapse in statute of limitations | (13,827) | (28,649) | 0 | |||
Decreases relating to settlements with authorities | (20,485) | (3,111) | 0 | |||
Increases related to current tax positions | 16,247 | 12,541 | 18,125 | |||
Unrecognized tax benefits, end of year | 141,755 | $ 162,029 | $ 183,239 | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 141,800 | |||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 600 | |||||
Spain | ||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 3,000 | |||||
Australia | ||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Open Tax Years | 2011 - 2015 | |||||
Germany | ||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Open Tax Years | 2010 - 2014 | |||||
Malaysia | ||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Open Tax Years | 2010 - 2014 | |||||
United States | ||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Open Tax Years | 2008 - 2009; 2012 - 2014 |
Note 21. Net Income Per Share93
Note 21. Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: | |||
Net income | $ 546,421 | $ 395,964 | $ 350,718 |
Denominator, basic: | |||
Weighted-average common stock outstanding | 100,886 | 100,048 | 93,697 |
Net income per share, basic | $ 5.42 | $ 3.96 | $ 3.74 |
Denominator, diluted: | |||
Weighted-average common stock outstanding | 100,886 | 100,048 | 93,697 |
Effect of restricted and performance stock units and stock purchase plans | 929 | 1,595 | 1,771 |
Weighted-average shares used in computing diluted net income (loss) per share | 101,815 | 101,643 | 95,468 |
Net income per share, diluted | $ 5.37 | $ 3.90 | $ 3.67 |
Anti-dilutive shares | 48 | 70 | 86 |
Note 22 Comprehensive Income 94
Note 22 Comprehensive Income and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 546,421 | $ 395,964 | $ 350,718 |
Foreign currency translation adjustments | (16,432) | (19,147) | 4,295 |
Unrealized (loss) gain on marketable securities and restricted investments for the period, net of tax | (15,413) | 90,868 | (39,685) |
Less: reclassification for gains included in net income, net of tax | (2) | (127) | 0 |
Unrealized (loss) gain on marketable securities and restricted investments | (15,415) | 90,741 | (39,685) |
Unrealized (loss) on derivatives instruments for the period, net of tax | (8,572) | (1,777) | (596) |
Less: reclassification for losses included in net income, net of tax | 5,759 | 6,099 | 31 |
Unrealized (loss) gain on derivative instruments | (2,813) | 4,322 | (565) |
Other comprehensive (loss) income, net of tax | (34,660) | 75,916 | (35,955) |
Comprehensive income | 511,761 | 471,880 | 314,763 |
Accumulated other comprehensive income (loss) | 15,480 | 50,140 | (25,776) |
Other comprehensive (loss) income, before reclassifications | (40,417) | 69,944 | |
Amounts reclassified from accumulated other comprehensive income | 5,757 | 5,972 | |
Net other comprehensive (loss) income | (34,660) | 75,916 | |
Other expense, net | (5,502) | (4,485) | (5,189) |
Tax expense | (6,156) | 31,188 | 30,098 |
Net sales | 3,578,995 | 3,391,187 | 3,309,616 |
Cost of sales | 2,659,728 | 2,566,246 | 2,444,984 |
Interest expense, net | 6,975 | 1,982 | 1,884 |
Foreign currency (loss) gain, net | (6,868) | (1,461) | 893 |
Total before tax | 519,835 | 432,101 | 380,979 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | (1,248) | 6,644 | (3,334) |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 207 | 711 | 2,387 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | 0 | 83 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax | 2,278 | (150) | 3,475 |
Accumulated Translation Adjustment [Member] | |||
Accumulated other comprehensive income (loss) | (69,769) | (53,337) | (34,190) |
Other comprehensive (loss) income, before reclassifications | (16,432) | (19,147) | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |
Net other comprehensive (loss) income | (16,432) | (19,147) | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated other comprehensive income (loss) | 86,884 | 102,299 | 11,558 |
Other comprehensive (loss) income, before reclassifications | (15,413) | 90,868 | |
Amounts reclassified from accumulated other comprehensive income | (2) | (127) | |
Net other comprehensive (loss) income | (15,415) | 90,741 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated other comprehensive income (loss) | (1,635) | 1,178 | $ (3,144) |
Other comprehensive (loss) income, before reclassifications | (8,572) | (1,777) | |
Amounts reclassified from accumulated other comprehensive income | 5,759 | 6,099 | |
Net other comprehensive (loss) income | (2,813) | 4,322 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Net income | 2 | 127 | |
Other expense, net | 2 | 210 | |
Tax expense | 0 | 83 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Net income | (5,759) | (6,099) | |
Tax expense | (2,278) | 150 | |
Net sales | 1,782 | 0 | |
Cost of sales | 5,509 | (501) | |
Interest expense, net | (10,135) | (698) | |
Foreign currency (loss) gain, net | (637) | (5,050) | |
Total before tax | $ (3,481) | $ (6,249) |
Note 23. Segment and Geograph95
Note 23. Segment and Geographical Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)segments | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segments | 2 | ||
Net sales | $ 3,578,995 | $ 3,391,187 | $ 3,309,616 |
Gross profit | 919,267 | 824,941 | 864,632 |
Depreciation and amortization expense | 258,022 | 246,649 | 238,774 |
Income (loss) before income taxes | 519,835 | 432,101 | 380,979 |
Goodwill | 84,985 | 84,985 | 84,985 |
Total assets | 7,316,331 | 6,720,991 | |
Decrease in solar module collection and recycling liability | 80,000 | ||
Long-lived assets | 2,676,954 | 2,306,083 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,117,797 | 3,042,006 | 2,832,102 |
Long-lived assets | 1,434,891 | 1,206,333 | |
Germany | |||
Segment Reporting Information [Line Items] | |||
Net sales | 63,709 | 121,941 | 142,028 |
India | |||
Segment Reporting Information [Line Items] | |||
Net sales | 134,462 | 44,118 | 8,253 |
Australia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 185,064 | 157,152 | 604 |
France | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 8,409 | 35,772 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Net sales | 6,188 | 7,085 | 264,573 |
United Arab Emirates | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 569 | 21,137 |
Honduras | |||
Segment Reporting Information [Line Items] | |||
Net sales | 48,773 | 0 | 0 |
All other foreign countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 23,002 | 9,907 | 5,147 |
Long-lived assets | 183,354 | 59,664 | |
Malaysia | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 788,086 | 936,482 | |
Chile | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 270,623 | 103,604 | |
Solar module revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 227,461 | 228,319 | 380,869 |
Solar power system [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,351,534 | 3,162,868 | 2,928,747 |
Components segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,389,579 | 1,102,674 | 1,173,947 |
Gross profit | 347,853 | 93,510 | 88,506 |
Depreciation and amortization expense | 243,898 | 223,381 | 211,357 |
Income (loss) before income taxes | 171,817 | (105,531) | (221,230) |
Goodwill | 16,152 | 16,152 | |
Total assets | 4,037,955 | 4,168,060 | |
Systems segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,189,416 | 2,288,513 | 2,135,669 |
Gross profit | 571,414 | 731,431 | 776,126 |
Depreciation and amortization expense | 14,124 | 23,268 | 27,417 |
Income (loss) before income taxes | 348,018 | 537,632 | $ 602,209 |
Goodwill | 68,833 | 68,833 | |
Total assets | $ 3,278,376 | $ 2,552,931 |
Note 24. Concentrations of Ri96
Note 24. Concentrations of Risks (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||
Net sales | $ 3,578,995 | $ 3,391,187 | $ 3,309,616 |
Accounts receivable trade, net | 500,629 | 135,434 | |
Customer Concentration Risk [Member] | Net sales [Member] | Customer Three [Member] | |||
Concentration Risk [Line Items] | |||
Net sales | $ 1,060,074 | $ 1,065,862 | |
Concentration risk, percentage | 30.00% | 31.00% | |
Customer Concentration Risk [Member] | Net sales [Member] | Customer Four [Member] | |||
Concentration Risk [Line Items] | |||
Net sales | $ 524,678 | $ 664,669 | |
Concentration risk, percentage | 15.00% | 20.00% | |
Customer Concentration Risk [Member] | Net sales [Member] | Customer Six [Member] | |||
Concentration Risk [Line Items] | |||
Net sales | $ 946,820 | $ 467,941 | $ 584,638 |
Concentration risk, percentage | 26.00% | 14.00% | 18.00% |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 15.00% | ||
Accounts receivable trade, net | $ 69,452 | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% | ||
Accounts receivable trade, net | $ 18,549 | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer Three [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 21.00% | ||
Accounts receivable trade, net | $ 96,956 | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer Four [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 24.00% | ||
Accounts receivable trade, net | $ 32,612 | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer Five [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 13.00% | ||
Accounts receivable trade, net | $ 17,199 | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer Six [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 48.00% | ||
Accounts receivable trade, net | $ 216,296 |
Schedule II - Valuation and Q97
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 7,108 | $ 12,310 | $ 14,503 |
Additions | 11 | 24 | 2,489 |
Deductions | (7,117) | (5,226) | (4,682) |
Balance at end of period | $ 2 | $ 7,108 | $ 12,310 |