Document
Document - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 28, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | FIRST SOLAR, INC. | |
Entity Central Index Key | 1,274,494 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Par Value Per Share | $ 0.001 | |
Entity Common Stock Shares Outstanding | 103,913,066 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net sales | $ 688,029 | $ 1,271,245 | $ 2,470,894 | $ 2,636,671 |
Cost of sales | 501,749 | 786,880 | 1,830,504 | 1,948,842 |
Gross profit | 186,280 | 484,365 | 640,390 | 687,829 |
Operating expenses: | ||||
Research and development | 32,173 | 29,630 | 95,291 | 93,865 |
Selling, general and administrative | 60,345 | 53,716 | 191,624 | 192,305 |
Production start-up | 752 | 3,198 | 807 | 16,818 |
Restructuring and asset impairments | 4,314 | 0 | 89,846 | 0 |
Total operating expenses | 97,584 | 86,544 | 377,568 | 302,988 |
Operating income | 88,696 | 397,821 | 262,822 | 384,841 |
Foreign currency loss, net | (2,296) | (1,803) | (8,259) | (4,981) |
Interest income | 5,894 | 5,322 | 18,829 | 16,444 |
Interest expense, net | (5,563) | (1,775) | (17,356) | (2,795) |
Other income (expense), net | 6,419 | (1,678) | 48,725 | (3,729) |
Income before taxes and equity in earnings of unconsolidated affiliates | 93,150 | 397,887 | 304,761 | 389,780 |
Income tax benefit (expense) | 50,522 | (48,454) | 7,711 | (9,134) |
Equity in earnings of unconsolidated affiliates, net of tax | 10,474 | (115) | 25,647 | 1,640 |
Net income | $ 154,146 | $ 349,318 | $ 338,119 | $ 382,286 |
Net income per share: | ||||
Basic | $ 1.49 | $ 3.46 | $ 3.30 | $ 3.80 |
Diluted | $ 1.49 | $ 3.41 | $ 3.28 | $ 3.75 |
Weighted-average number of shares used in per share calculations: | ||||
Basic | 103,339 | 100,906 | 102,496 | 100,713 |
Diluted | 103,733 | 102,299 | 103,062 | 101,845 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 154,146 | $ 349,318 | $ 338,119 | $ 382,286 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | 1,418 | (1,103) | 4,635 | (14,001) |
Unrealized (loss) gain on marketable securities and restricted investments | (7,917) | 17,944 | 27,679 | (4,409) |
Unrealized (loss) gain on derivative instruments | (276) | (1,338) | 2,070 | (3,239) |
Other comprehensive (loss) income, net of tax | (6,775) | 15,503 | 34,384 | (21,649) |
Comprehensive income | $ 147,371 | $ 364,821 | $ 372,503 | $ 360,637 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 1,414,219 | $ 1,126,826 |
Marketable securities | 675,985 | 703,454 |
Accounts receivable trade, net | 323,049 | 500,629 |
Accounts receivable, unbilled and retainage | 245,782 | 59,171 |
Inventories | 369,086 | 380,424 |
Balance of systems parts | 77,942 | 136,889 |
Deferred project costs | 94,549 | 187,940 |
Notes receivable, affiliate | 0 | 1,276 |
Prepaid expenses and other current assets | 264,806 | 248,977 |
Total current assets | 3,465,418 | 3,345,586 |
Property, plant and equipment, net | 1,266,337 | 1,284,136 |
PV solar power systems, net | 487,246 | 93,741 |
Project assets and deferred project costs | 1,312,081 | 1,111,137 |
Deferred tax assets, net | 347,081 | 357,693 |
Restricted cash and investments | 409,640 | 333,878 |
Investments in unconsolidated affiliates and joint ventures | 448,963 | 399,805 |
Goodwill | 78,888 | 84,985 |
Other intangibles, net | 72,386 | 110,002 |
Inventories | 102,162 | 107,759 |
Notes receivable, affiliates | 20,313 | 17,887 |
Other assets | 77,145 | 69,722 |
Total assets | 8,087,660 | 7,316,331 |
Current liabilities: | ||
Accounts payable | 201,835 | 337,668 |
Income taxes payable | 10,486 | 1,330 |
Accrued expenses | 328,969 | 409,452 |
Current portion of long-term debt | 626,026 | 38,090 |
Billings in excess of costs and estimated earnings | 80,830 | 87,942 |
Payments and billings for deferred project costs | 103,337 | 28,580 |
Other current liabilities | 55,841 | 57,738 |
Total current liabilities | 1,407,324 | 960,800 |
Accrued solar module collection and recycling liability | 169,679 | 163,407 |
Long-term debt | 161,131 | 251,325 |
Other liabilities | 403,767 | 392,312 |
Total liabilities | 2,141,901 | 1,767,844 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 103,912,069 and 101,766,797 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively | 104 | 102 |
Additional paid-in capital | 2,767,562 | 2,742,795 |
Accumulated earnings | 3,128,229 | 2,790,110 |
Accumulated other comprehensive income | 49,864 | 15,480 |
Total stockholders' equity | 5,945,759 | 5,548,487 |
Total liabilities and stockholders' equity | $ 8,087,660 | $ 7,316,331 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
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 | 103,912,069 | 101,766,797 |
Common Stock, Shares Outstanding | 103,912,069 | 101,766,797 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 338,119 | $ 382,286 |
Adjustments to reconcile net income to cash used in operating activities: | ||
Depreciation, amortization and accretion | 172,221 | 193,923 |
Impairment of long-lived assets, intangible assets and goodwill | 85,251 | 8,307 |
Share-based compensation | 24,467 | 33,146 |
Equity in earnings of unconsolidated affiliates, net of tax | (25,647) | (1,640) |
Remeasurement of monetary assets and liabilities | (4,054) | (10,341) |
Deferred income taxes | (5,399) | (7,050) |
Excess tax benefits from share-based compensation arrangements | (18,169) | (23,333) |
Gain on sales of marketable securities and restricted investments | (38,101) | 0 |
Other, net | 2,481 | 473 |
Changes in operating assets and liabilities: | ||
Accounts receivable, trade, unbilled and retainage | (22,791) | (351,320) |
Prepaid expenses and other current assets | (47,300) | (37,282) |
Inventories and balance of systems parts | 75,308 | 147,271 |
Project assets and deferred project costs | (469,988) | (642,835) |
Other assets | (11,234) | (2,299) |
Accounts payable | (143,663) | 108,742 |
Income taxes payable | (14,798) | (19,169) |
Accrued expenses and other liabilities | (2,812) | (113,905) |
Accrued solar module collection and recycling liability | 5,536 | (78,990) |
Net cash used in operating activities | (100,573) | (414,016) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (175,868) | (139,270) |
Purchases of marketable securities and restricted investments | (422,607) | (429,352) |
Proceeds from sales and maturities of marketable securities and restricted investments | 448,354 | 313,359 |
Distributions received from equity method investments | 1,502 | 238,980 |
Investments in notes receivable, affiliates | (4,760) | (53,199) |
Payments received on notes receivable, affiliate | 1,089 | 57,866 |
Change in restricted cash | 44,171 | 21,360 |
Other investing activities | (11,484) | (12,149) |
Net cash used in investing activities | (119,603) | (2,405) |
Cash flows from financing activities: | ||
Proceeds from borrowings under revolving credit facility | 550,000 | 0 |
Repayment of long-term debt | (86,250) | (42,332) |
Proceeds from borrowings under long-term debt, net of discounts and issuance costs | 23,361 | 138,639 |
Repayment of sale-leaseback financing | (4,294) | (2,708) |
Proceeds from sale-leaseback financing | 0 | 44,718 |
Excess tax benefits from share-based compensation arrangements | 18,169 | 23,333 |
Contingent consideration payments and other financing activities | (159) | (19,155) |
Net cash provided by financing activities | 500,827 | 142,495 |
Effect of exchange rate changes on cash and cash equivalents | 6,742 | (18,425) |
Net increase (decrease) in cash and cash equivalents | 287,393 | (292,351) |
Cash and cash equivalents, beginning of the period | 1,126,826 | 1,482,054 |
Cash and cash equivalents, end of the period | 1,414,219 | 1,189,703 |
Supplemental disclosure of noncash investing and financing activities: | ||
Equity interests retained from the partial sale of project assets | (3,304) | 270,799 |
Property, plant and equipment acquisitions funded by liabilities | 29,341 | 24,266 |
Acquisitions currently or previously funded by liabilities and contingent consideration | $ 23,942 | $ 11,367 |
1. Basis of Presentation
1. Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of First Solar, Inc. and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, these interim financial statements do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of First Solar management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement have been included. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 or for any other period. The condensed consolidated balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These interim financial statements and notes should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2015 included in our Annual Report on Form 10-K, which has been filed with the SEC. Certain prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not have a material effect on the interim financial statements. Unless expressly stated or the context otherwise requires, the terms “the Company,” “we,” “our,” “us,” and “First Solar” refer to First Solar, Inc. and its subsidiaries. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in our condensed 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. 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 Accounting Standards Codification (“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 not required to be accounted for under ASC 605-35 (long-term construction contracts) or ASC 360-20 (real estate sales), 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 solar modules, direct materials, labor, subcontractor costs, and those indirect costs related to contract performance, such as indirect labor and supplies. We recognize solar module and direct material costs as incurred when such items have been installed in a system. When contracts specify that title to solar modules and direct materials 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 solar modules and direct materials 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 operations and maintenance (“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. 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 VIEs 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. 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 use the cost method of accounting for our investments when we do not have the ability to significantly influence the operations or financial activities of the investee. We record our cost method investments at their historical cost and subsequently record any distributions received from the net accumulated earnings of such investments as income. Distributions received from our cost method investments in excess of their earnings are considered returns of investment and are recorded as reductions in the cost of the investments. We use the equity method of accounting for our investments when we have the ability to significantly influence, but not control, 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. Distributions received from our equity method investments are recorded as reductions in the carrying value of such investments and are classified on the condensed consolidated statements of cash flows pursuant to the cumulative earnings approach. Under this approach, distributions received are considered returns on investment and are classified as cash inflows from operating activities unless our cumulative distributions received, less distributions received in prior periods that were determined to be returns of investment, exceed our cumulative equity in earnings recognized from the investment. When such an excess occurs, the current period distributions up to this excess are considered returns of investment and are classified as cash inflows from investing activities. We monitor our investments, which are included in “ Investments in unconsolidated affiliates and joint ventures ” in the accompanying condensed consolidated balance sheets, for impairment and record reductions in their carrying values if the carrying amount of an 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. We recorded no impairment losses related to our cost and equity method investments during the three and nine months ended September 30, 2016 and 2015 . See Note 2. “Summary of Significant Accounting Policies” to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015 for a more complete summary of our significant accounting policies. |
3. Recent Accounting Pronouncem
3. Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 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. Under ASU 2014-09, revenue is recognized when a customer obtains control of promised goods or services and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services. In addition, ASU 2014-09 requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. An entity has the option to apply the provisions of ASU 2014-09 either retrospectively to each prior reporting period presented (the “full retrospective method”) 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 expect to adopt ASU 2014-09 in the first quarter of 2017 using the full retrospective method. However, our ability to early adopt using the full retrospective method is subject to the completion of our analysis of certain matters, including sales arrangements accounted for as partial sales of real estate, and obtaining the information necessary to restate prior periods. We expect this adoption to primarily affect our systems business sales arrangements currently accounted for under ASC 360-20, which requires us to evaluate whether such arrangements have any forms of continuing involvement that may affect the revenue or profit recognition of the transactions, including arrangements with prohibited forms of continuing involvement requiring us to reduce the potential profit on a project sale by our maximum exposure to loss. We anticipate that ASU 2014-09, which supersedes the real estate sales guidance under ASC 360-20, will require us to recognize revenue and profit from our systems business sales arrangements earlier and in a more linear fashion than our historical practice under ASC 360-20, including the estimation of certain profits that would otherwise have been deferred. We expect revenue recognition for our other sales arrangements, including sales of solar modules and operation and maintenance services, to remain materially consistent. 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. The adoption of ASU 2015-02 in the first quarter of 2016 did not have a significant impact on our consolidated financial statements and associated disclosures. 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 early adoption is permitted for certain provisions of the guidance. We are currently evaluating the impact ASU 2016-01 will have on our consolidated financial statements and associated disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , to increase transparency and comparability among organizations by recognizing a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either operating or financing, with such classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2018, and early adoption is permitted. We are currently evaluating the impact ASU 2016-02 will have on our consolidated financial statements and associated disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years and interim periods within those years beginning after December 15, 2016, and early adoption is permitted. We are currently evaluating the impact ASU 2016-09 will have on our consolidated financial statements and associated disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), to provide financial statement users with more useful information about expected credit losses. ASU 2016-13 also changes how entities measure credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years and interim periods within those years beginning after December 15, 2019, and early adoption is permitted for periods beginning after December 15, 2018. We are currently evaluating the impact ASU 2016-13 will have on our consolidated financial statements and associated disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 clarifies the classification of certain cash receipts and cash payments in the statement of cash flows with the objective of reducing the existing diversity in practice related to such classifications. As a result of the adoption of ASU 2016-15 in the third quarter of 2016, we will continue to classify distributions received from our equity method investments pursuant to the cumulative earnings approach. See Note 2. “Summary of Significant Accounting Policies” to our condensed consolidated financial statements for additional information on this policy. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 230) – Intra-Entity Transfers of Assets Other Than Inventory . ASU 2016-16 requires the recognition of income tax consequences of intra-entity transfers of assets, other than inventory, when the transfer occurs. Two common examples of assets included in the scope of ASU 2016-16 are intellectual property and long-lived assets. ASU 2016-16 is effective for fiscal years and interim periods within those years beginning after December 15, 2017, and early adoption is permitted in annual reporting periods for which financial statements (interim or annual) have not been issued. We are currently evaluating the impact ASU 2016-16 will have on our consolidated financial statements and associated disclosures. |
4. Restructuring and Asset Impa
4. Restructuring and Asset Impairments (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | 4. Restructuring and Asset Impairments In June 2016, our executive management elected to reallocate our crystalline silicon module production capacity to support next generation cadmium telluride (“CdTe”) module offerings. As a result, we ended production of our crystalline silicon modules to focus on our core CdTe module technology and utility-scale PV solar power systems. The majority of our crystalline silicon module manufacturing associates are expected to be redeployed in other manufacturing operations. In connection with these restructuring activities, we incurred charges of $84.6 million during the three months ended June 30, 2016, which included (i) $35.5 million of impairment charges related to certain crystalline silicon module manufacturing equipment considered abandoned for accounting purposes; (ii) $35.8 million of impairment charges for developed technology intangible assets associated with our crystalline silicon module technology; (iii) $6.1 million of goodwill impairment charges from the disposal of our crystalline silicon components reporting unit; and (iv) $7.2 million of miscellaneous charges related to certain contract manufacturing agreements and the write-off of operating supplies. During the three months ended September 30, 2016, we incurred additional charges of $1.4 million for contract manufacturing agreements and long-lived asset impairments. All amounts associated with these charges related to our components segment and were classified as “Restructuring and asset impairments” on our condensed consolidated statements of operations. We expect to incur up to $5.0 million of additional charges related to the end of our crystalline silicon module production as we complete these restructuring activities during the remainder of 2016. During the three and nine months ended September 30, 2016, we also incurred charges of $2.9 million and $3.8 million , respectively, for severance benefits to terminated employees and certain other actions associated with restructuring activities unrelated to the end of our crystalline silicon module production. |
5. Cash, Cash Equivalents, and
5. Cash, Cash Equivalents, and Marketable Securities | 9 Months Ended |
Sep. 30, 2016 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Cash, Cash Equivalents, and Marketable Securities | 5. Cash, Cash Equivalents, and Marketable Securities Cash, cash equivalents, and marketable securities consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Cash and cash equivalents: Cash $ 1,414,219 $ 1,126,496 Cash equivalents: Money market funds — 330 Total cash and cash equivalents 1,414,219 1,126,826 Marketable securities: Foreign debt 635,985 663,454 Time deposits 40,000 40,000 Total marketable securities 675,985 703,454 Total cash, cash equivalents, and marketable securities $ 2,090,204 $ 1,830,280 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 of our marketable securities in “ Other income (expense), net ” computed using the specific identification method. During the three and nine months ended September 30, 2016 , we realized gains of $0.3 million on the sale of our marketable securities. During the three and nine months ended September 30, 2015 , we realized no gains or losses on the sale of our marketable securities. See Note 9. “Fair Value Measurements” to our condensed consolidated financial statements for information about the fair value of our marketable securities. As of September 30, 2016 , we identified three investments totaling $51.4 million 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 . As of December 31, 2015 , we identified two investments totaling $31.5 million 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 September 30, 2016 and December 31, 2015 . The following tables summarize the unrealized gains and losses related to our available-for-sale marketable securities, by major security type, as of September 30, 2016 and December 31, 2015 (in thousands): As of September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Foreign debt $ 636,179 $ 770 $ 964 $ 635,985 Time deposits 40,000 — — 40,000 Total $ 676,179 $ 770 $ 964 $ 675,985 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 The contractual maturities of our marketable securities as of September 30, 2016 and December 31, 2015 were as follows (in thousands): As of September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value One year or less $ 300,421 $ 9 $ 212 $ 300,218 One year to two years 148,578 203 94 148,687 Two years to three years 227,180 558 658 227,080 Total $ 676,179 $ 770 $ 964 $ 675,985 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 The net unrealized losses of $0.2 million and $2.4 million on our marketable securities as of September 30, 2016 and December 31, 2015 , respectively, were primarily the result of changes 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 September 30, 2016 and December 31, 2015 , aggregated by major security type and the length of time the marketable securities have been in a continuous loss position (in thousands): As of September 30, 2016 In Loss Position for Less Than 12 Months In Loss Position for 12 Months or Greater Total Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Foreign debt $ 318,445 $ 875 $ 51,405 $ 89 $ 369,850 $ 964 Total $ 318,445 $ 875 $ 51,405 $ 89 $ 369,850 $ 964 As of December 31, 2015 In Loss Position for Less Than 12 Months In Loss Position for 12 Months or Greater Total 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 |
6. Restricted Cash and Investme
6. Restricted Cash and Investments | 9 Months Ended |
Sep. 30, 2016 | |
Restricted Cash and Investments [Abstract] | |
Restricted Cash and Investments Disclosure | 6. Restricted Cash and Investments Restricted cash and investments consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Restricted cash $ 3,022 $ 7,764 Restricted investments 406,618 326,114 Total restricted cash and investments (1) $ 409,640 $ 333,878 (1) There was an additional $33.4 million and $72.5 million of restricted cash included within prepaid expenses and other current assets at September 30, 2016 and December 31, 2015 , respectively. At September 30, 2016 , 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 13. “Commitments and Contingencies” to our condensed 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 September 30, 2016 and December 31, 2015 , 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 of our restricted investments in “ Other income (expense), net ” computed using the specific identification method. During the three months ended September 30, 2016 , we realized no gains on the sale of our restricted investments. During the nine months ended September 30, 2016 , we realized gains of $37.8 million on the sale of certain restricted investments as part of an effort to align the currencies of the investments with those of the corresponding collection and recycling liabilities. Restricted investments are classified as noncurrent as the underlying accrued solar module collection and recycling liabilities are also noncurrent in nature. See Note 9. “Fair Value Measurements” to our condensed consolidated financial statements for information about the fair value of our restricted investments. 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. No incremental funding was required in 2016 for covered module sales in 2015. 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. The following tables summarize the unrealized gains and losses related to our restricted investments, by major security type, as of September 30, 2016 and December 31, 2015 (in thousands): As of September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Foreign government obligations $ 119,103 $ 88,412 $ — $ 207,515 U.S. government obligations 171,204 27,899 — 199,103 Total $ 290,307 $ 116,311 $ — $ 406,618 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 September 30, 2016 , the contractual maturities of our restricted investments were between 11 years and 20 years . As of December 31, 2015 , the contractual maturities of our restricted investments were between 12 years and 21 years . |
7. Consolidated Balance Sheet D
7. Consolidated Balance Sheet Details | 9 Months Ended |
Sep. 30, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Disclosures | 7. Consolidated Balance Sheet Details Accounts receivable trade, net Accounts receivable trade, net consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Accounts receivable trade, gross $ 323,049 $ 500,631 Allowance for doubtful accounts — (2 ) Accounts receivable trade, net $ 323,049 $ 500,629 At September 30, 2016 and December 31, 2015 , $43.7 million and $21.5 million , respectively, of our accounts receivable trade, net were secured by letters of credit, bank guarantees, or other forms of financial security issued by creditworthy financial institutions. Accounts receivable, unbilled and retainage Accounts receivable, unbilled and retainage consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Accounts receivable, unbilled $ 224,219 $ 40,205 Retainage 21,563 18,966 Accounts receivable, unbilled and retainage $ 245,782 $ 59,171 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. Retainage refers to the portion of the contract price earned by us for work performed, but held for payment by our customer as a form of security until we reach certain construction milestones. Retainage included within “ Accounts receivable, unbilled and retainage ” is expected to be billed and collected within the next 12 months. Inventories Inventories consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Raw materials $ 155,591 $ 159,078 Work in process 22,916 19,736 Finished goods 292,741 309,369 Inventories $ 471,248 $ 488,183 Inventories – current $ 369,086 $ 380,424 Inventories – noncurrent (1) $ 102,162 $ 107,759 (1) As needed, we may 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 consume within our normal operating cycle as noncurrent. Balance of systems parts Balance of systems parts were $77.9 million and $136.9 million as of September 30, 2016 and December 31, 2015 , 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 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 September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Value added tax receivables $ 69,423 $ 51,473 Prepaid expenses 60,223 74,990 Derivative instruments 472 2,691 Restricted cash 33,440 72,526 Other current assets 101,248 47,297 Prepaid expenses and other current assets $ 264,806 $ 248,977 Property, plant and equipment, net Property, plant and equipment, net consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Land $ 8,752 $ 12,063 Buildings and improvements 411,990 410,898 Machinery and equipment 1,829,887 1,824,717 Office equipment and furniture 153,871 144,773 Leasehold improvements 56,988 50,546 Construction in progress 148,923 37,734 Stored assets (1) 138,667 138,954 Property, plant and equipment, gross 2,749,078 2,619,685 Less: accumulated depreciation (1,482,741 ) (1,335,549 ) Property, plant and equipment, net $ 1,266,337 $ 1,284,136 (1) 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 in service when such assets are required or beneficial to our existing installed manufacturing capacity or when market demand supports additional or market-specific manufacturing capacity. During the nine months ended September 30, 2016 , we transferred $0.3 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 in service. We ceased the capitalization of interest on our stored assets once they were physically received from the related machinery and equipment vendors. We evaluate our property, plant, and equipment, including our stored assets, for impairment under a held and used impairment model whenever events or changes in business circumstances arise that may indicate that the carrying amount of the assets may not be recoverable. Such events and changes include consideration of technological obsolescence, significant changes in the manner of use of the assets, and expectations that the assets may be sold or otherwise disposed of before the end of their useful lives. As of September 30, 2016, the recoverability of the property, plant, and equipment of our components segment was based on the continued use of our current module technologies. However, it is reasonably possible that the continued use of such technologies may be affected by potential near-term changes to our module technology development plans, which if adopted may result in certain manufacturing equipment and stored assets being sold or otherwise disposed of before the end of their previously estimated useful lives, which in turn could result in a decrease in the value, and possible impairment, of such manufacturing equipment and stored assets. Accordingly, any such changes to our technology development plans could be material to our condensed consolidated financial statements and have a significant adverse impact on our results of operations. Depreciation of property, plant and equipment was $51.6 million and $158.6 million for the three and nine months ended September 30, 2016 , respectively, and $61.3 million and $185.4 million for the three and nine months ended September 30, 2015 , respectively. PV solar power systems, net PV solar power systems, net consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, PV solar power systems, gross $ 498,332 $ 97,991 Accumulated depreciation (11,086 ) (4,250 ) PV solar power systems, net $ 487,246 $ 93,741 During the nine months ended September 30, 2016 , we placed $399.3 million of projects in service, including certain projects in Chile and India. Depreciation of PV solar power systems was $4.4 million and $6.8 million for the three and nine months ended September 30, 2016 , respectively, and $0.6 million and $1.8 million for the three and nine months ended September 30, 2015 , respectively. Capitalized interest The cost of constructing facilities, equipment, and project assets includes interest costs incurred during the assets’ construction period. The components of interest expense and capitalized interest were as follows during the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Interest cost incurred $ (5,998 ) $ (5,697 ) $ (20,365 ) $ (13,923 ) Interest cost capitalized – property, plant and equipment 314 290 1,381 1,152 Interest cost capitalized – project assets 121 3,632 1,628 9,976 Interest expense, net $ (5,563 ) $ (1,775 ) $ (17,356 ) $ (2,795 ) Project assets and deferred project costs Project assets primarily consist of costs related 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 may have begun commercial operation under power purchase agreements (“PPAs”) and are actively marketed and intended to be sold. These project related costs include costs for land, development, and construction of a PV solar power system. Development costs may include legal, consulting, permitting, transmission upgrade, interconnection, and other similar costs. Once we enter into a definitive sales agreement, we reclassify project assets to deferred project costs on our condensed consolidated balance 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. Deferred project costs represent (i) costs that we capitalize as project assets for arrangements that we account for as real estate transactions after we have entered into a definitive sales arrangement, but before the sale is completed or before we have met all criteria to recognize the sale as revenue, (ii) recoverable pre-contract costs that we capitalize for arrangements accounted for as long-term construction contracts prior to entering into a definitive sales agreement, or (iii) costs that we capitalize for arrangements accounted for as long-term construction contracts after we have signed a definitive sales agreement, but before all revenue recognition criteria have been met. We classify deferred project costs as current if completion of the sale and the meeting of all revenue recognition criteria are expected within the next 12 months. If a project is completed and begins commercial operation prior to entering into or the closing of a sales arrangement, the completed project will remain in project assets or deferred project costs until the earliest of the closing of the sale of such project, our decision to temporarily hold such project, or one year from the project’s commercial operations date. Any income generated by a project while it remains within project assets or deferred project costs is accounted for as a reduction to our basis in the project, which at the time of sale and meeting all revenue recognition criteria will be recorded within cost of sales. Project assets and deferred project costs consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Project assets – development costs, including project acquisition and land costs $ 407,107 $ 436,375 Project assets – construction costs 866,174 674,762 Project assets 1,273,281 1,111,137 Deferred project costs – current 94,549 187,940 Deferred project costs – noncurrent 38,800 — Deferred project costs 133,349 187,940 Total project assets and deferred project costs $ 1,406,630 $ 1,299,077 Other assets Other assets consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Notes receivable (1) $ 7,851 $ 12,648 Income taxes receivable 4,231 4,071 Deferred rent 32,832 23,317 Other 32,231 29,686 Other assets $ 77,145 $ 69,722 (1) In April 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 in December 2026. As of September 30, 2016 and December 31, 2015 , the balance on the credit facility was €7.0 million ( $7.9 million and $7.6 million , respectively, at the balance sheet dates). In February 2014 , we entered into a convertible loan agreement with a strategic entity for an available amount of up to $5.0 million . As of December 31, 2015 , the balance outstanding on the convertible loan was $5.0 million , which we converted into an equity interest in the entity in January 2016. Goodwill Goodwill, summarized by relevant reporting unit, consisted of the following as of September 30, 2016 and December 31, 2015 (in thousands): December 31, Acquisitions (Impairments) September 30, 2016 CdTe components $ 403,420 $ — $ 403,420 Crystalline silicon components 6,097 — 6,097 Systems 68,833 — 68,833 Accumulated impairment losses (393,365 ) (6,097 ) (399,462 ) Total $ 84,985 $ (6,097 ) $ 78,888 Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value assigned to the individual assets acquired and liabilities assumed. We do not amortize goodwill, but instead are required to test goodwill for impairment at least annually. If necessary, we would record any impairment in accordance with ASC 350, Intangibles – Goodwill and Other. We perform impairment tests between scheduled annual tests in the fourth quarter if facts and circumstances indicate that it is more likely than not that the fair value of a reporting unit that has goodwill is less than its carrying value. During the three months ended June 30, 2016, we impaired $6.1 million of goodwill associated with our crystalline silicon components reporting unit as a result of the decision to end the related manufacturing operations. See Note 4. “Restructuring and Asset Impairments” to our condensed consolidated financial statements for further discussion relating to these restructuring activities. Other intangibles, net Other intangibles, net consisted of intangible assets acquired as part of our General Electric and TetraSun acquisitions, certain power purchase agreements acquired after the associated PV solar power systems were placed in service, and our internally-generated intangible assets, substantially all of which were patents on technologies related to our products and production processes. We record an asset for patents, after the patent has been issued, based on the legal, filing, and other costs incurred to secure them. We amortize intangible assets on a straight-line basis over their estimated useful lives once the intangible assets meet the criteria to be amortized. The following tables summarize our intangible assets at September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Gross Amount Accumulated Amortization Accumulated Impairments Net Amount Developed technology $ 114,612 $ (16,365 ) $ (36,215 ) $ 62,032 Power purchase agreements 6,644 — — 6,644 Patents 6,070 (2,360 ) $ — $ 3,710 Total $ 127,326 $ (18,725 ) $ (36,215 ) $ 72,386 December 31, 2015 Gross Amount Accumulated Amortization Accumulated Impairments Net Amount Developed technology 114,565 $ (8,809 ) $ — $ 105,756 Patents 6,070 (1,824 ) — 4,246 Total $ 120,635 $ (10,633 ) $ — $ 110,002 During the three months ended June 30, 2016, we impaired $35.8 million of developed technology intangible assets acquired in our TetraSun acquisition as a result of the decision to end the related crystalline silicon manufacturing operations. See Note 4. “Restructuring and Asset Impairments” to our condensed consolidated financial statements for further discussion relating to these restructuring activities. Amortization expense for our intangible assets was $2.1 million and $8.1 million for the three and nine months ended September 30, 2016 , respectively, and $3.0 million and $6.3 million for the three and nine months ended September 30, 2015 , respectively. Accrued expenses Accrued expenses consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Accrued compensation and benefits $ 49,981 $ 63,699 Accrued property, plant and equipment 11,174 7,808 Accrued inventory and balance of systems parts 30,033 53,542 Accrued project assets and deferred project costs 115,159 145,695 Product warranty liability (1) 37,552 38,468 Accrued expenses in excess of normal product warranty liability and related expenses (1) 3,977 5,040 Other 81,093 95,200 Accrued expenses $ 328,969 $ 409,452 (1) See Note 13. “Commitments and Contingencies” to our condensed consolidated financial statements for further discussion of “Product warranty liability” and “Accrued expenses in excess of normal product warranty liability and related expenses.” Billings in excess of costs and estimated earnings Billings in excess of costs and estimated earnings was $80.8 million and $87.9 million at September 30, 2016 and December 31, 2015 , 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 $103.3 million and $28.6 million at September 30, 2016 and December 31, 2015 , respectively, and represented customer payments received or customer billings made under the terms of solar power project related sales contracts for which all revenue recognition criteria for real estate transactions have not yet been met. The associated solar power project costs are included within deferred project costs. We classify such amounts as current if all revenue recognition criteria are expected to be met within the next 12 months, consistent with the classification of the associated deferred project costs. Other current liabilities Other current liabilities consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Deferred revenue $ 8,482 $ 17,957 Derivative instruments 6,387 16,450 Contingent consideration (1) 16,954 9,233 Financing liability (2) 5,231 5,277 Other 18,787 8,821 Other current liabilities $ 55,841 $ 57,738 (1) See Note 13. “Commitments and Contingencies” to our condensed consolidated financial statements for further discussion. (2) See Note 10. “Investments in Unconsolidated Affiliates and Joint Ventures” to our condensed consolidated financial statements for further discussion of the financing liabilities associated with our leaseback of the Maryland Solar project. Other liabilities Other liabilities consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Product warranty liability (1) $ 217,332 $ 193,283 Other taxes payable 24,215 66,549 Contingent consideration (1) 6,987 8,756 Liability in excess of normal product warranty liability and related expenses (1) 15,174 19,565 Financing liability (2) 33,842 36,706 Other 106,217 67,453 Other liabilities $ 403,767 $ 392,312 (1) See Note 13. “Commitments and Contingencies” to our condensed consolidated financial statements for further discussion on “Product warranty liability,” “Contingent consideration,” and “Liability in excess of normal product warranty liability and related expenses.” (2) See Note 10. “Investments in Unconsolidated Affiliates and Joint Ventures” to our condensed consolidated financial statements for further discussion of the financing liabilities associated with our leaseback of the Maryland Solar project. |
8. Derivative Financial Instrum
8. Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 8. 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 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 9. “Fair Value Measurements” to our condensed 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 condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Prepaid Expenses and Other Current Assets Other Current Liabilities Other Liabilities Derivatives designated as hedging instruments: Foreign exchange forward contracts $ — $ 357 $ 358 Total derivatives designated as hedging instruments $ — $ 357 $ 358 Derivatives not designated as hedging instruments: Foreign exchange forward contracts $ 472 $ 6,030 $ — Total derivatives not designated as hedging instruments $ 472 $ 6,030 $ — Total derivative instruments $ 472 $ 6,387 $ 358 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 The impact of offsetting balances associated with derivative instruments designated as hedging instruments is shown below (in thousands): September 30, 2016 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 $ (715 ) — (715 ) — — $ (715 ) 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 ) The following tables present the effective amounts related to derivative instruments designated as cash flow hedges affecting accumulated other comprehensive income (loss) and our condensed consolidated statements of operations for the nine months ended September 30, 2016 and 2015 (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, 2015 $ 162 $ (16 ) $ (2,017 ) $ (1,871 ) Amounts recognized in other comprehensive income (loss) 37 (2 ) 5,108 5,143 Amounts reclassified to earnings impacting: Foreign currency loss, net — — (4,896 ) (4,896 ) Interest expense, net — 18 1,805 1,823 Balance in accumulated other comprehensive income (loss) at September 30, 2016 $ 199 $ — $ — $ 199 Balance in accumulated other comprehensive income (loss) at December 31, 2014 $ 6,621 $ (210 ) $ (3,399 ) $ 3,012 Amounts recognized in other comprehensive income (loss) 703 22 (11,373 ) (10,648 ) Amounts reclassified to earnings impacting: Net sales (1,782 ) — — (1,782 ) Cost of sales (5,509 ) — — (5,509 ) Foreign currency loss, net — — 12,126 12,126 Interest expense, net — 153 327 480 Balance in accumulated other comprehensive income (loss) at September 30, 2015 $ 33 $ (35 ) $ (2,319 ) $ (2,321 ) We recorded no amounts related to ineffective portions of our derivative instruments designated as cash flow hedges during the three and nine months ended September 30, 2016 and 2015 . We recognized unrealized losses of $0.2 million and $0.6 million related to amounts excluded from effectiveness testing for our foreign exchange forward contracts designated as cash flow hedges within “ Other income (expense), net ” during the three and nine months ended September 30, 2016 , respectively. We recognized unrealized losses of $0.2 million and unrealized gains of $0.3 million related to amounts excluded from effectiveness testing for our foreign exchange forward contracts designated as cash flow hedges within “ Other income (expense), net ” during the three and nine months ended September 30, 2015 , respectively. The following table presents amounts related to derivative instruments not designated as hedges affecting our condensed consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 (in thousands): Amount of Gain (Loss) Recognized in Income Three Months Ended Nine Months Ended Income Statement Line Items 2016 2015 2016 2015 Foreign exchange forward contracts Foreign currency loss, net $ (6,763 ) $ 9,527 $ (29,740 ) $ 1,543 Foreign exchange forward contracts Cost of sales $ — $ (2,232 ) $ — $ 7,731 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 hedged the foreign currency risk of the Malaysian ringgit denominated principal and interest payments as we made swap payments in U.S. dollars and received swap payments in Malaysian ringgits at a fixed exchange rate of 3.19 MYR to USD. This swap qualified for accounting as a cash flow hedge in accordance with ASC 815, and we designated it as such. The notional amount of the swap declined in line with our scheduled principal payments on the underlying hedged debt. In June 2016, we paid the remaining principal on the Malaysian Ringgit Facility Agreement and closed the corresponding cross-currency swap contract. As of December 31, 2015 , the notional value of this cross-currency swap contract was MYR 232.6 million ( $54.2 million ). 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 were 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 derivative instrument qualified for accounting as a cash flow hedge in accordance with ASC 815, and we designated it as such. The notional amount of the interest rate swap contract declined in line with our scheduled principal payments on the underlying hedged debt. In March 2016, we paid the remaining principal on the Malaysian Credit Facility and closed the corresponding interest rate swap contract. As of December 31, 2015 , the notional value of the interest rate swap contract was €2.2 million ( $2.4 million ). Foreign Currency Exchange Risk Cash Flow Exposure We expect certain of our subsidiaries to have 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 September 30, 2016 and December 31, 2015 , these foreign exchange forward contracts hedged our forecasted cash flows for 24 months and 33 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 as of September 30, 2016 and December 31, 2015 . As of September 30, 2016 and December 31, 2015 , 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): September 30, 2016 Currency Notional Amount USD Equivalent Indian rupee INR 860.0 $12.9 December 31, 2015 Currency Notional Amount USD Equivalent Indian rupee INR 1,290.0 $19.4 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 September 30, 2016 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 condensed 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 enter into 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. Accordingly, we recognize gains or losses from the fluctuations in foreign exchange rates and the fair value of these derivative contracts in “ Foreign currency loss, net ” on our condensed consolidated statements of operations. As of September 30, 2016 and December 31, 2015 , the total net unrealized loss on our economic hedge foreign exchange forward contracts was $5.6 million and $6.7 million , respectively. These contracts mature at various dates within the next 2.0 years . As of September 30, 2016 and December 31, 2015 , 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): September 30, 2016 Transaction Currency Notional Amount USD Equivalent Purchase Euro €61.9 $69.4 Sell Euro €116.2 $130.3 Sell Australian dollar AUD 14.5 $11.1 Sell Malaysian ringgit MYR 24.5 $5.9 Sell Canadian dollar CAD 19.1 $14.6 Purchase Chilean peso CLP 10,780.6 $16.4 Purchase Chinese yuan CNY 20.5 $3.1 Sell Japanese yen JPY 9,446.2 $93.0 Sell British pound GBP 1.9 $2.5 Purchase Indian rupee INR 121.2 $1.8 Sell Indian rupee INR 12,889.1 $192.8 Sell South African rand ZAR 54.2 $3.9 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 |
9. Fair Value Measurements
9. Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements Disclosure | 9. 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 , 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 September 30, 2016 and 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. 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 September 30, 2016 and December 31, 2015 , our derivative assets and liabilities consisted of foreign exchange forward contracts involving major currencies. At December 31, 2015 , our derivative assets and liabilities also consisted of a cross-currency swap contract involving certain currencies and interest rates and an interest rate swap. 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 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 the valuation techniques as Level 2. In evaluating credit risk, 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 September 30, 2016 and December 31, 2015 , the fair value measurements of our assets and liabilities that we measure on a recurring basis were as follows (in thousands): September 30, 2016 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: Marketable securities: Foreign debt 635,985 — 635,985 — Time deposits 40,000 40,000 — — Restricted investments 406,618 — 406,618 — Derivative assets 472 — 472 — Total assets $ 1,083,075 $ 40,000 $ 1,043,075 $ — Liabilities: Derivative liabilities $ 6,745 $ — $ 6,745 $ — 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 $ — Fair Value of Financial Instruments The carrying values and fair values of our financial and derivative instruments at September 30, 2016 and December 31, 2015 were as follows (in thousands): September 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Assets: Marketable securities $ 675,985 $ 675,985 $ 703,454 $ 703,454 Foreign exchange forward contract assets 472 472 2,691 2,691 Restricted investments 406,618 406,618 326,114 326,114 Notes receivable – noncurrent 7,851 8,007 12,648 18,382 Notes receivable, affiliates – noncurrent 20,313 22,590 17,887 19,932 Liabilities: Long-term debt, including current maturities $ 786,466 $ 798,488 $ 288,350 $ 294,449 Interest rate swap contract liabilities — — 16 16 Cross-currency swap contract liabilities — — 20,744 20,744 Foreign exchange forward contract liabilities 6,745 6,745 9,810 9,810 The carrying values on our condensed consolidated balance sheets of our cash and cash equivalents, trade accounts receivable, unbilled accounts receivable and retainage, current affiliate notes receivable, 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 notes receivable and long-term debt 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, trade accounts receivable, restricted cash and investments, notes receivable, 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, 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. |
10. Investments in Unconsolidat
10. Investments in Unconsolidated Affiliates and Joint Ventures (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Cost and Equity Method Investments Disclosure [Text Block] | 10. 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 unconsolidated 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 September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Equity method investments $ 424,116 $ 375,355 Cost method investments 24,847 24,450 Investments in unconsolidated affiliates and joint ventures $ 448,963 $ 399,805 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”) 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. The Partnership owns and operates a portfolio of solar energy generation projects and is expected to acquire additional projects from the Sponsors. As of September 30, 2016 , we owned an aggregate of 22,116,925 Class B shares representing a 28% 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 28% economic and voting interest in the entity. Future quarterly distributions from OpCo are subject to a subordination period in which 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 distributions to incentive distribution right holders, 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, 8point3 General Partner, LLC (“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. 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 $8.6 million and $25.9 million for the three and nine months ended September 30, 2016 , respectively. We recognized equity in earnings, net of tax, from our investment in OpCo of $1.4 million for the three and nine months ended September 30, 2015. As of September 30, 2016 and December 31, 2015 , the carrying value of our investment in OpCo was $197.0 million and $152.5 million , respectively. In connection with the IPO, we also entered into an agreement with a subsidiary of the Partnership to lease back one of our originally contributed projects, Maryland Solar, until December 31, 2019. Under the terms of the agreement, we make fixed rent payments to the Partnership’s subsidiary and are entitled to all of 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 September 30, 2016 and December 31, 2015 , our financing obligation associated with the leaseback was $39.1 million and $42.0 million , respectively. In May 2016, we completed the sale of our two 20 MW Kingbird projects (“Kingbird”) located in Kern County, California to OpCo and a third-party investor for net revenue of $57.4 million and accounted for the transaction as a partial sale of real estate pursuant to ASC 360-20. Due to certain continuing involvement associated with tax related indemnifications to the third-party investor, we did not recognize any profit on the sale as our maximum exposure to loss exceeded the profit on the transaction. All of the cash proceeds from the sale of the Kingbird project were classified as cash flows from operating activities on our condensed consolidated statements of cash flows. We provide O&M services to certain of the Partnership’s partially owned project entities, including SG2 Holdings, LLC; Lost Hills Blackwell Holdings, LLC; NS Solar Holdings, LLC; Kingbird Solar A, LLC; and Kingbird Solar B, LLC. During the three and nine months ended September 30, 2016 , we recognized revenue of $1.3 million and $4.0 million , respectively, for such O&M services. During the three and nine months ended September 30, 2015, we recognized revenue of $1.2 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”). In September 2016, OpCo amended its senior secured credit facility to include an incremental $250.0 million term loan facility, which increased the maximum borrowing capacity under the OpCo Credit Facility to $775.0 million . The OpCo Credit Facility is secured by a pledge of the Sponsors’ equity interests in OpCo. Desert Stateline Holdings, LLC In August 2015, we sold 51% of our partially constructed 300 MW Desert Stateline project (“Desert Stateline”) to a subsidiary of Southern Power Company. In March 2016, we amended the original sale agreement with Southern Power Company to include an additional 15% of the partially constructed project. Electricity generated by the system is contracted to serve a 20 -year PPA with a local utility company. Our remaining 34% 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 three and nine months ended September 30, 2016 , we recognized $2.4 million of equity in earnings, net of tax, from our investment in Desert Stateline Holdings, LLC. As of September 30, 2016 and December 31, 2015 , the carrying value of our investment was $199.4 million and $196.9 million , respectively. 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 term 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 September 30, 2016 and December 31, 2015 , the balance outstanding on the term loans was $15.0 million . In February 2016, we entered into a convertible loan agreement with CEC for $4.6 million , which was funded in April 2016. The convertible loan bears interest at 10% per annum, and the outstanding principal and interest are due in February 2018 on the second anniversary of the initial loan agreement unless converted earlier pursuant to a qualified equity financing by CEC. CEC is considered a VIE, 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 three and nine months ended September 30, 2016 we recognized losses, net of tax, of $0.6 million and $2.9 million , respectively, from our investment in CEC. During the three and nine months ended September 30, 2015 , we recognized losses, net of tax, of $0.5 million and $1.5 million , respectively, from our investment in CEC. As of September 30, 2016 and December 31, 2015 , the carrying value of our investment was $11.7 million and $16.1 million , respectively. |
11. Percentage-of-Completion Ch
11. Percentage-of-Completion Changes in Estimates (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Changes in Estimates for Systems Business [Abstract] | |
Changes in project estimates | 11. 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, 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, and (iii) changes in other information used to estimate costs. Changes in estimates could have a material effect on our condensed consolidated statements of operations. The table below outlines the impact on gross profit of the aggregate net change in systems business contract estimates (both increases and decreases) for the three and nine months ended September 30, 2016 and 2015 as well as the number of projects that comprise such aggregate net change. 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 estimate as a percentage of the aggregate gross profit for such projects. Three Months Ended Nine Months Ended 2016 2015 2016 2015 Number of projects 7 5 8 8 Increase in gross profit resulting from net change in estimate (in thousands) $ 25,557 $ 10,521 $ 68,687 $ 51,133 Net change in estimate as a percentage of aggregate gross profit for associated projects 3.3 % 2.0 % 7.5 % 3.0 % |
12. Debt
12. Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Instruments [Abstract] | |
Debt | 12. Debt Our long-term debt consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): Balance (USD) Loan Agreement Maturity Loan Denomination September 30, December 31, Revolving credit facility July 2018 USD $ 550,000 $ — Project construction credit facilities Various Various 245,457 218,183 Malaysian ringgit facility agreement September 2018 MYR — 54,175 Malaysian euro facility agreement April 2018 EUR — 21,869 Malaysian facility agreement March 2016 EUR — 5,100 Capital lease obligations Various Various 691 1,065 Long-term debt principal 796,148 300,392 Less: unamortized discount and issuance costs (8,991 ) (10,977 ) Total long-term debt 787,157 289,415 Less: current portion (626,026 ) (38,090 ) Noncurrent portion $ 161,131 $ 251,325 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. As of September 30, 2016 , we had borrowings outstanding of $550.0 million , which we expect to repay within the next 12 months, and had issued $128.6 million of letters of credit using availability under our Revolving Credit Facility, leaving a total remaining availability of $21.4 million . As of December 31, 2015 , we had no borrowings outstanding and had issued $191.6 million of letters of credit using availability under our Revolving Credit Facility, leaving a total remaining availability of $508.4 million . 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 interests in substantially all of the guarantors’ 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 September 30, 2016 . 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% . 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 in September 2029, and the variable rate loans mature in September 2032. As of September 30, 2016 and December 31, 2015 , the balance outstanding on the OPIC loans was $125.1 million . 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 in September 2029, and the variable rate loans mature in September 2032. As of September 30, 2016 and December 31, 2015 , the balance outstanding on the IFC loans was $42.2 million . 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, which matures in February 2017, FSI provided a guaranty of substantially all payment obligations of Luz del Norte thereunder. As of September 30, 2016 and December 31, 2015 , the balance outstanding on the VAT facility was $58.6 million and $40.4 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 $406.3 million , including intercompany charges, as of September 30, 2016 and by a pledge of all of the equity interests in the entity. The Luz del Norte Credit Facilities 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 September 30, 2016 . 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 ( $39.4 million ) for the development and construction of utility-scale PV solar power plants in Japan (the “Japan Credit Facility”). In September 2016, First Solar Japan GK renewed the facility for an additional one-year period until September 2017. The facility is guaranteed by FSI and secured by pledges of certain projects’ cash accounts and other rights in the projects. As of September 30, 2016 and December 31, 2015 , the balance outstanding on the facility was $15.3 million and $5.3 million , respectively. The facility contains customary representations and warranties, covenants, and events of default for comparable construction loan facilities in Japan. We were in compliance with all covenants related to the Japan Credit Facility as of September 30, 2016 . 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 ( $16.5 million ) for the development and construction of two 10 MW PV solar power plants located in Telangana, India. 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 September 30, 2016 , we had issued ₨0.8 billion ( $11.2 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 $85.2 million as of September 30, 2016 , including intercompany charges, and a pledge of a portion of the equity interests in the borrowers. As of September 30, 2016 and December 31, 2015 , the balance outstanding on the term loan facilities was $4.3 million and $5.2 million , respectively. The credit facilities contain various financial covenants including a leverage ratio covenant, a debt service ratio covenant, and a fixed asset coverage ratio covenant. We were in compliance with all covenants related to the credit facilities as of September 30, 2016 . In March 2016, Polepally Solar Parks Private Limited, our indirect wholly-owned subsidiary, entered into a term loan facility (together with the Marikal and Mahabubnagar term loans, the “India Credit Facilities”) with Axis Bank, as administrative agent, for borrowings up to ₨1.3 billion ( $19.4 million ) for costs related to a 25 MW PV solar power plant located in Telangana, India. The term loan facility has a letter of credit sub-limit of ₨1.1 billion ( $16.5 million ), which may also be used for project related costs. The term loan facility matures in September 2029 and is secured by certain assets of the borrower, which had an aggregate book value of $31.4 million as of September 30, 2016 , including intercompany charges, and a pledge of a portion of the equity interests in the borrower. In addition, the term loan facility is guaranteed by FSI until certain conditions are met, including the achievement of commercial operations by the plant and various other compliance and performance metrics. The term loan facility contains various covenants including a leverage ratio covenant, a debt service ratio covenant, and a fixed asset ratio covenant. 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 were 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 June 2016, we repaid the remaining $47.3 million principal balance on the Malaysian Ringgit Facility Agreement. There were no prepayment penalties associated with this early repayment. 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 were 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 were subordinated to the claims of the lenders. In April 2016, we repaid the remaining $22.7 million principal balance on the Malaysian Euro Facility Agreement. There were no prepayment penalties associated with this early repayment. Variable Interest Rate Risk Certain of our long-term debt agreements bear interest at prime, London Interbank Offered Rate (“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 prime, LIBOR, TIBOR, or equivalent variable rates would increase the cost of borrowing under our Revolving Credit Facility and various project construction credit facilities. Our long-term debt borrowing rates as of September 30, 2016 were as follows: Loan Agreement Borrowing Rate at September 30, 2016 Revolving Credit Facility 2.77% 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% Capital lease obligations Various Future Principal Payments At September 30, 2016 , the future principal payments on our long-term debt, excluding payments related to capital leases, were due as follows (in thousands): Total Debt Remainder of 2016 $ 550,161 2017 76,474 2018 4,808 2019 5,782 2020 11,927 Thereafter 146,305 Total long-term debt future principal payments $ 795,457 |
13. Commitments and Contingenci
13. Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. 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 a sub-limit of $500.0 million to issue letters of credit, subject to certain additional 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 September 30, 2016 , we had $128.6 million in letters of credit issued under our Revolving Credit Facility, leaving $21.4 million of availability for the issuance of letters of credit after adjusting for borrowings on the facility. The majority of these letters of credit were supporting our systems business projects. As of September 30, 2016 , we also had $7.7 million of bank guarantees and letters of credit under separate agreements that were posted by certain of our foreign subsidiaries, $251.5 million of letters of credit issued under three bilateral facilities, of which $30.3 million was secured with cash, and $141.1 million of surety bonds outstanding primarily for our systems business projects. The available bonding capacity under our surety lines was $639.2 million as of September 30, 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 balance of systems (“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 condensed consolidated statements of operations if we commit to any such remediation actions. Product warranty activities during the three and nine months ended September 30, 2016 and 2015 were as follows (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Product warranty liability, beginning of period $ 250,371 $ 222,304 $ 231,751 $ 223,057 Accruals for new warranties issued 6,158 16,700 26,854 34,948 Settlements (2,814 ) (4,722 ) (9,246 ) (9,817 ) Changes in estimate of product warranty liability 1,169 (1,212 ) 5,525 (15,118 ) Product warranty liability, end of period $ 254,884 $ 233,070 $ 254,884 $ 233,070 Current portion of warranty liability $ 37,552 $ 48,311 $ 37,552 $ 48,311 Noncurrent portion of warranty liability $ 217,332 $ 184,759 $ 217,332 $ 184,759 We estimate our limited product warranty liability for power output and defects in materials and workmanship under normal use and service conditions based on a warranty return rate of approximately 1% to 3% for modules covered under warranty. As of September 30, 2016 , a 1% change in the estimated warranty return rate would change our module warranty liability by $84.6 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 September 30, 2016 and December 31, 2015 , accrued expenses in excess of our product warranty were $19.2 million and $24.6 million , respectively, of which $4.0 million and $5.0 million , respectively, were classified as current and included in “Accrued expenses” on our condensed consolidated balance sheets and $15.2 million and $19.6 million , respectively, were classified as noncurrent and included in “Other liabilities” on our condensed 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 the voluntary remediation program. If any of our estimates prove incorrect, we may 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 engineering, procurement, and construction (“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 September 30, 2016 and December 31, 2015 , we accrued $5.7 million and $0.3 million , respectively, of estimated obligations under such arrangements, which were classified as “Other current liabilities” in the condensed 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 September 30, 2016 and December 31, 2015 , 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. Indemnifications In certain limited circumstances, we have provided indemnifications to customers or project tax equity investors under which we are contractually obligated to compensate such parties for losses they may suffer as a result of reductions in tax benefits received, including investment tax credits. Project related tax benefits are, in part, based on guidance provided by the Internal Revenue Service and U.S. Treasury Department, which includes assumptions regarding the fair value of qualifying PV solar power systems. For any sales agreements that have such indemnification provisions, we reduce the profit recognized, if any, by the maximum exposure to loss until the indemnification provisions are of no further force or effect and all other necessary revenue recognition criteria have been met. Contingent Consideration In connection with our previous TetraSun acquisition, we agreed to pay additional amounts to the sellers contingent upon achievement by the acquired business of certain negotiated goals, such as targeted module shipment volumes. In June 2016, we reversed the outstanding contingent consideration associated with our TetraSun acquisition of $7.4 million as a result of our executive management’s decision to end production of our crystalline silicon modules, which adversely affected the likelihood of achieving certain module shipment volume milestones. Such reversal resulted in a corresponding gain recorded within “ Other income (expense), net ” on our condensed consolidated statements of operations for the for the nine months ended September 30, 2016 . See Note 4. “Restructuring and Asset Impairments” to our condensed consolidated financial statements for further discussion related to these restructuring activities. As of December 31, 2015 , we had recorded $2.5 million of current liabilities and $4.9 million of long-term liabilities for such contingent obligations based on their estimated fair values. 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 September 30, 2016 and December 31, 2015 , we had recorded $17.0 million and $6.7 million of current liabilities, respectively, and $7.0 million and $3.9 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. Solar Module Collection and Recycling Liability We voluntarily established a 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. For customer sales contracts that include modules covered under this program, we agree to pay the costs for the collection and recycling of qualifying solar modules, and the end-users agree 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. Accordingly, we record our collection and recycling obligations within “Cost of sales” at the time of sale based on the estimated cost to collect and recycle the covered solar modules. During the three and nine months ended September 30, 2016 and 2015 , substantially all of our modules sold were not subject to our collection and recycling program. 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 condensed consolidated statement of operations. We periodically review our estimates of expected future recycling costs and may adjust our liability accordingly. During the three months ended September 30, 2015, we completed our annual cost study of obligations under our module collection and recycling program based on certain recycling technology advancements at our manufacturing facility in Perrysburg, Ohio and reduced the associated liability by $80.0 million . The recycling technology advancements represented a significant improvement over previous technologies and included a continuous flow recycling process, which increased the throughput of modules able to be recycled at a point in time. Such process improvements also resulted in corresponding reductions in capital, chemical, labor, maintenance, and other general recycling costs, which further contributed to the reduction in the recycling rate per module and corresponding change in the liability. Our module collection and recycling liability was $169.7 million and $163.4 million as of September 30, 2016 and December 31, 2015 , respectively. As of September 30, 2016 , a 1% increase in the annualized inflation rate used in our estimated future collection and recycling cost per module would increase our liability by $38.3 million , and a 1% decrease in that rate would decrease our liability by $31.5 million . See Note 6. “Restricted Cash and Investments” to our condensed consolidated financial statements for more information about our arrangements for funding this liability. Legal Proceedings We are party to legal matters and claims in the normal 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 (the “Ninth Circuit”). First Solar filed a petition for interlocutory appeal with the Ninth Circuit, and that petition was granted on November 18, 2015. On May 20, 2016, the Pension Schemes moved to vacate the order granting the petition, dismiss the appeal, and stay the merits briefing schedule. Briefing on the Pension Schemes’ motion is now complete. The Arizona District Court has 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 resolves 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 Arizona District Court. On July 12, 2013, the court adopted the magistrate judge’s Report and Recommendation and ordered the case transferred to the Arizona District Court. The transfer was completed on July 15, 2013. On April 12, 2012, a derivative complaint was filed in the 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 filed an amended complaint on March 11, 2016, and defendants filed a motion to dismiss the amended complaint on April 1, 2016. On June 30, 2016, the Arizona District Court granted defendants’ motion to dismiss the insider trading and unjust enrichment claims with prejudice, and further granted defendants’ motion to dismiss the claims for alleged breaches of fiduciary duties with leave to amend. On July 15, 2016, plaintiffs filed a motion to reconsider certain aspects of the order granting defendants’ motion to dismiss. The Arizona District Court denied the plaintiffs’ motion for reconsideration on August 4, 2016. On July 15, 2016, plaintiffs filed a motion to intervene, lift the stay, and unseal documents in the Securities Class Action. On September 30, 2016, the Arizona District Court denied plaintiffs’ motion. On October 17, 2016, plaintiffs filed a notice of appeal of the September 30, 2016 order. The Arizona District Court has set a deadline of October 31, 2016 for plaintiffs to file an amended complaint. On October 27, 2016, plaintiffs filed a motion to extend the deadline to file an amended complaint. The Arizona District Court has not ruled on plaintiffs’ motion to extend the deadline. 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 June 30, 2016, the court entered an order continuing the action on the inactive calendar until November 30, 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. |
14. Share-Based Compensation
14. Share-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Share-Based Compensation Disclosure | 14. 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 condensed consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 was as follows (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Cost of sales $ 1,612 $ 3,048 $ 6,255 $ 8,539 Research and development 849 997 2,704 3,099 Selling, general and administrative 3,435 8,164 15,508 21,483 Production start-up — 4 — 25 Total share-based compensation expense $ 5,896 $ 12,213 $ 24,467 $ 33,146 The following table presents our share-based compensation expense by type of award for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Restricted and performance stock units $ 4,939 $ 10,579 $ 21,969 $ 29,350 Unrestricted stock 420 332 1,258 995 Stock purchase plan 377 458 1,071 1,127 5,736 11,369 24,298 31,472 Net amount released from inventory 160 844 169 1,674 Total share-based compensation expense $ 5,896 $ 12,213 $ 24,467 $ 33,146 Share-based compensation expense capitalized in inventory was $3.2 million and $3.4 million at September 30, 2016 and December 31, 2015 , respectively. As of September 30, 2016 , we had $28.6 million of unrecognized share-based compensation expense related to unvested restricted stock units and rights under our stock purchase plan, which we expect to recognize as expense over a weighted-average period of approximately 1.4 years . The estimated forfeiture rate used to record compensation expense is based primarily on historical forfeitures and is adjusted periodically based on actual results. At September 30, 2016 and December 31, 2015 , our forfeiture rate was 9.5% . |
15. Income Taxes
15. Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes Disclosure | 15. Income Taxes Our effective tax rate was (2.5)% and 2.3% for the nine months ended September 30, 2016 and 2015 , respectively. The decrease in our effective tax rate was primarily driven by a higher percentage of profits earned in lower tax jurisdictions. The provision for income taxes differed from the amount computed by applying the statutory U.S. federal income tax rate of 35.0% primarily due to the benefit associated with foreign income taxed at lower rates, including the beneficial impact of our Malaysian tax holiday, and the reversal of liabilities for various uncertain tax positions, partially offset by additional tax expense attributable to losses in jurisdictions for which no tax benefits could be recorded. 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 with 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. In July 2016, we received a letter from a foreign tax authority confirming our residency status in that jurisdiction. In accordance with the letter, we reversed a liability associated with an uncertain tax position related to the income of a foreign subsidiary. Accordingly, we recorded a benefit of $35.4 million through the tax provision from the reversal of such liability during the three months ended September 30, 2016. 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 the private letter 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 our tax holiday. Accordingly, we recorded a net benefit of $30.3 million through the tax provision to establish a deferred tax asset associated with the future deductibility of these obligations during the nine months ended September 30, 2015. We account for uncertain tax positions pursuant to the recognition and measurement criteria under ASC 740. During the three months ended September 30, 2016, we recognized a benefit of $12.8 million from the expiration of the statute of limitations for various uncertain tax positions. It is reasonably possible that an additional $11.0 million of uncertain tax positions will be recognized within the next 12 months. 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. We are subject to audit by U.S. federal, state, local, and foreign tax authorities. During the nine months ended September 30, 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 India, Chile, and Germany. 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. |
16. Net Income Per Share
16. Net Income Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income per Share Disclosure | 16. 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 shares, 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 three and nine months ended September 30, 2016 and 2015 was as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Basic net income per share Numerator: Net income $ 154,146 $ 349,318 $ 338,119 $ 382,286 Denominator: Weighted-average common shares outstanding 103,339 100,906 102,496 100,713 Diluted net income per share Denominator: Weighted-average common shares outstanding 103,339 100,906 102,496 100,713 Effect of restricted and performance stock units and stock purchase plan shares 394 1,393 566 1,132 Weighted-average shares used in computing diluted net income per share 103,733 102,299 103,062 101,845 Net income per share: Basic $ 1.49 $ 3.46 $ 3.30 $ 3.80 Diluted $ 1.49 $ 3.41 $ 3.28 $ 3.75 The following table summarizes the potential shares of common stock that were excluded from the computation of diluted net income per share for the three and nine months ended September 30, 2016 and 2015 as they would have had an anti-dilutive effect (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Anti-dilutive shares 411 46 282 64 |
17. Comprehensive Income (Loss)
17. Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income | 17. 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 three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended 2016 2015 Net income $ 154,146 $ 349,318 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments 1,418 (1,103 ) Unrealized (loss) gain on marketable securities and restricted investments for the period, net of tax of $309 and $(1,366) (7,656 ) 17,944 Less: reclassification for gains included in net income, net of tax of $36 and $0 (261 ) — Unrealized (loss) gain on marketable securities and restricted investments (7,917 ) 17,944 Unrealized loss on derivative instruments for the period, net of tax of $59 and $18 (276 ) (7,360 ) Less: reclassification for losses included in net income, net of tax of $0 and $765 — 6,022 Unrealized loss on derivative instruments (276 ) (1,338 ) Other comprehensive (loss) income, net of tax (6,775 ) 15,503 Comprehensive income $ 147,371 $ 364,821 Nine Months Ended 2016 2015 Net income $ 338,119 $ 382,286 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments 4,635 (14,001 ) Unrealized gain (loss) on marketable securities and restricted investments for the period, net of tax of $(3,771) and $450 62,841 (4,409 ) Less: reclassification for gains included in net income, net of tax of $2,940 and $0 (35,162 ) — Unrealized gain (loss) on marketable securities and restricted investments 27,679 (4,409 ) Unrealized gain (loss) on derivative instruments for the period, net of tax of $1 and $(182) 5,143 (10,832 ) Less: reclassification for losses included in net income, net of tax of $0 and $2,278 (3,073 ) 7,593 Unrealized gain (loss) on derivative instruments 2,070 (3,239 ) Other comprehensive income (loss), net of tax 34,384 (21,649 ) Comprehensive income $ 372,503 $ 360,637 The following tables reflect the changes in accumulated other comprehensive income, net of tax, for the nine months ended September 30, 2016 and 2015 (in thousands): Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Marketable Securities and Restricted Investments Unrealized Gain (Loss) on Derivative Instruments Total Balance as of December 31, 2015 $ (69,769 ) $ 86,884 $ (1,635 ) $ 15,480 Other comprehensive income before reclassifications 4,635 62,841 5,143 72,619 Amounts reclassified from accumulated other comprehensive income — (35,162 ) (3,073 ) (38,235 ) Net other comprehensive income 4,635 27,679 2,070 34,384 Balance as of September 30, 2016 $ (65,134 ) $ 114,563 $ 435 $ 49,864 Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Marketable Securities and Restricted Investments Unrealized Gain (Loss) on Derivative Instruments Total Balance as of December 31, 2014 $ (53,337 ) $ 102,299 $ 1,178 $ 50,140 Other comprehensive loss before reclassifications (14,001 ) (4,409 ) (10,832 ) (29,242 ) Amounts reclassified from accumulated other comprehensive income — — 7,593 7,593 Net other comprehensive loss (14,001 ) (4,409 ) (3,239 ) (21,649 ) Balance as of September 30, 2015 $ (67,338 ) $ 97,890 $ (2,061 ) $ 28,491 Amount Reclassified for the Details of Accumulated Other Comprehensive Income Nine Months Ended Income Statement Line Item 2016 2015 Gains and (losses) on marketable securities and restricted investments: $ 38,102 $ — Other income (expense), net (2,940 ) — Tax expense $ 35,162 $ — Total, net of tax Gains and (losses) on derivative contracts: Foreign exchange forward contracts $ — $ 1,782 Net sales Foreign exchange forward contracts — 5,509 Cost of sales Cross currency swap contract 4,896 (12,126 ) Foreign currency loss, net Interest rate and cross currency swap contracts (1,823 ) (480 ) Interest expense, net 3,073 (5,315 ) Total before tax — (2,278 ) Tax expense $ 3,073 $ (7,593 ) Total net of tax |
18. Segment Reporting
18. Segment Reporting | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting Information, Profit (Loss) [Abstract] | |
Segment Reporting Disclosure | 18. Segment Reporting We operate our business in two segments. Our components segment involves the design, manufacture, and sale of CdTe solar modules, which convert sunlight into electricity. 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. 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. See Note 23. “Segment and Geographical Information” in our Annual Report on Form 10-K for the year ended December 31, 2015 for a complete discussion of our segment reporting. Financial information about our reportable segments during the three and nine months ended September 30, 2016 and 2015 was as follows (in thousands): Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Components Systems Total Components Systems Total Net sales $ 427,812 $ 260,217 $ 688,029 $ 441,530 $ 829,715 $ 1,271,245 Gross profit (2) 138,676 47,604 186,280 165,997 318,368 484,365 Depreciation and amortization expense 52,204 5,849 58,053 61,508 3,477 64,985 Income (loss) before taxes (1) (2) 109,217 (16,067 ) 93,150 137,878 260,009 397,887 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Components Systems Total Components Systems Total Net sales $ 1,167,721 $ 1,303,173 $ 2,470,894 $ 988,591 $ 1,648,080 $ 2,636,671 Gross profit (2) 329,803 310,587 640,390 243,222 444,607 687,829 Depreciation and amortization expense 160,770 12,698 173,468 183,286 10,274 193,560 Income before taxes (1) (2) 183,831 120,930 304,761 116,877 272,903 389,780 September 30, 2016 December 31, 2015 Components Systems Total Components Systems Total Goodwill (1) $ 10,055 $ 68,833 $ 78,888 $ 16,152 $ 68,833 $ 84,985 Total assets 4,817,929 3,269,731 8,087,660 4,037,955 3,278,376 7,316,331 (1) The operating results for our components segment for the three and nine months ended September 30, 2016 included $1.4 million and $86.0 million , respectively, of restructuring and asset impairment charges associated with the end of our crystalline silicon module production. See Note 4. “Restructuring and Asset Impairments” to our condensed consolidated financial statements for more information regarding these restructuring activities. (2) The operating result for our components segment for the three and nine months ended September 30, 2015 included the impact of an $80.0 million reduction in our module collection and recycling obligation. See Note 13. “Commitments and Contingencies” to our condensed consolidated financial statements for more information regarding the change in this obligation. Product Revenue The following table sets forth the total amounts of solar module and solar power system net sales recognized for the three and nine months ended September 30, 2016 and 2015 . For the purposes of the following table, (i) solar module revenue is composed of revenue from the sale of solar modules to third parties, which does not include any modules sold as part of our PV solar power systems, and (ii) solar power system revenue is composed of revenue from the sale of PV solar power systems and related products and services, including any modules installed in such systems and any revenue generated by such systems (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Solar module revenue $ 213,045 $ 60,836 $ 425,776 $ 180,792 Solar power system revenue 474,984 1,210,409 2,045,118 2,455,879 Net sales $ 688,029 $ 1,271,245 $ 2,470,894 $ 2,636,671 |
2. Summary of Significant Acc25
2. Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in our condensed 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. |
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 Accounting Standards Codification (“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 not required to be accounted for under ASC 605-35 (long-term construction contracts) or ASC 360-20 (real estate sales), 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 solar modules, direct materials, labor, subcontractor costs, and those indirect costs related to contract performance, such as indirect labor and supplies. We recognize solar module and direct material costs as incurred when such items have been installed in a system. When contracts specify that title to solar modules and direct materials 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 solar modules and direct materials 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 operations and maintenance (“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. |
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 VIEs 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 use the cost method of accounting for our investments when we do not have the ability to significantly influence the operations or financial activities of the investee. We record our cost method investments at their historical cost and subsequently record any distributions received from the net accumulated earnings of such investments as income. Distributions received from our cost method investments in excess of their earnings are considered returns of investment and are recorded as reductions in the cost of the investments. We use the equity method of accounting for our investments when we have the ability to significantly influence, but not control, 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. Distributions received from our equity method investments are recorded as reductions in the carrying value of such investments and are classified on the condensed consolidated statements of cash flows pursuant to the cumulative earnings approach. Under this approach, distributions received are considered returns on investment and are classified as cash inflows from operating activities unless our cumulative distributions received, less distributions received in prior periods that were determined to be returns of investment, exceed our cumulative equity in earnings recognized from the investment. When such an excess occurs, the current period distributions up to this excess are considered returns of investment and are classified as cash inflows from investing activities. We monitor our investments, which are included in “ Investments in unconsolidated affiliates and joint ventures ” in the accompanying condensed consolidated balance sheets, for impairment and record reductions in their carrying values if the carrying amount of an 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. We recorded no impairment losses related to our cost and equity method investments during the three and nine months ended September 30, 2016 and 2015 . |
5. Cash, Cash Equivalents, an26
5. Cash, Cash Equivalents, and Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Cash and cash equivalents: Cash $ 1,414,219 $ 1,126,496 Cash equivalents: Money market funds — 330 Total cash and cash equivalents 1,414,219 1,126,826 Marketable securities: Foreign debt 635,985 663,454 Time deposits 40,000 40,000 Total marketable securities 675,985 703,454 Total cash, cash equivalents, and marketable securities $ 2,090,204 $ 1,830,280 |
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 September 30, 2016 and December 31, 2015 (in thousands): As of September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Foreign debt $ 636,179 $ 770 $ 964 $ 635,985 Time deposits 40,000 — — 40,000 Total $ 676,179 $ 770 $ 964 $ 675,985 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 |
Available-for-sale Securities by Maturity | The contractual maturities of our marketable securities as of September 30, 2016 and December 31, 2015 were as follows (in thousands): As of September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value One year or less $ 300,421 $ 9 $ 212 $ 300,218 One year to two years 148,578 203 94 148,687 Two years to three years 227,180 558 658 227,080 Total $ 676,179 $ 770 $ 964 $ 675,985 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 |
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 September 30, 2016 and December 31, 2015 , aggregated by major security type and the length of time the marketable securities have been in a continuous loss position (in thousands): As of September 30, 2016 In Loss Position for Less Than 12 Months In Loss Position for 12 Months or Greater Total Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Foreign debt $ 318,445 $ 875 $ 51,405 $ 89 $ 369,850 $ 964 Total $ 318,445 $ 875 $ 51,405 $ 89 $ 369,850 $ 964 As of December 31, 2015 In Loss Position for Less Than 12 Months In Loss Position for 12 Months or Greater Total 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 |
6. Restricted Cash and Invest27
6. Restricted Cash and Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Restricted Cash and Investments [Abstract] | |
Restricted Cash And Investments | Restricted cash and investments consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Restricted cash $ 3,022 $ 7,764 Restricted investments 406,618 326,114 Total restricted cash and investments (1) $ 409,640 $ 333,878 (1) There was an additional $33.4 million and $72.5 million of restricted cash included within prepaid expenses and other current assets at September 30, 2016 and December 31, 2015 , 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 September 30, 2016 and December 31, 2015 (in thousands): As of September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Foreign government obligations $ 119,103 $ 88,412 $ — $ 207,515 U.S. government obligations 171,204 27,899 — 199,103 Total $ 290,307 $ 116,311 $ — $ 406,618 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 |
7. Consolidated Balance Sheet28
7. Consolidated Balance Sheet Details (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable trade, net Accounts receivable trade, net consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Accounts receivable trade, gross $ 323,049 $ 500,631 Allowance for doubtful accounts — (2 ) Accounts receivable trade, net $ 323,049 $ 500,629 At September 30, 2016 and December 31, 2015 , $43.7 million and $21.5 million , respectively, of our accounts receivable trade, net were secured by letters of credit, bank guarantees, or other forms of financial security issued by creditworthy financial institutions. Accounts receivable, unbilled and retainage Accounts receivable, unbilled and retainage consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Accounts receivable, unbilled $ 224,219 $ 40,205 Retainage 21,563 18,966 Accounts receivable, unbilled and retainage $ 245,782 $ 59,171 |
Schedule of Inventories, Current and Noncurrent | Inventories consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Raw materials $ 155,591 $ 159,078 Work in process 22,916 19,736 Finished goods 292,741 309,369 Inventories $ 471,248 $ 488,183 Inventories – current $ 369,086 $ 380,424 Inventories – noncurrent (1) $ 102,162 $ 107,759 (1) As needed, we may 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 consume within our normal operating cycle as noncurrent. |
Scheduel of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Value added tax receivables $ 69,423 $ 51,473 Prepaid expenses 60,223 74,990 Derivative instruments 472 2,691 Restricted cash 33,440 72,526 Other current assets 101,248 47,297 Prepaid expenses and other current assets $ 264,806 $ 248,977 |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Land $ 8,752 $ 12,063 Buildings and improvements 411,990 410,898 Machinery and equipment 1,829,887 1,824,717 Office equipment and furniture 153,871 144,773 Leasehold improvements 56,988 50,546 Construction in progress 148,923 37,734 Stored assets (1) 138,667 138,954 Property, plant and equipment, gross 2,749,078 2,619,685 Less: accumulated depreciation (1,482,741 ) (1,335,549 ) Property, plant and equipment, net $ 1,266,337 $ 1,284,136 (1) 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 in service when such assets are required or beneficial to our existing installed manufacturing capacity or when market demand supports additional or market-specific manufacturing capacity. During the nine months ended September 30, 2016 , we transferred $0.3 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 in service. 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 September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, PV solar power systems, gross $ 498,332 $ 97,991 Accumulated depreciation (11,086 ) (4,250 ) PV solar power systems, net $ 487,246 $ 93,741 |
Schedule of Capitalized Interest | The components of interest expense and capitalized interest were as follows during the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Interest cost incurred $ (5,998 ) $ (5,697 ) $ (20,365 ) $ (13,923 ) Interest cost capitalized – property, plant and equipment 314 290 1,381 1,152 Interest cost capitalized – project assets 121 3,632 1,628 9,976 Interest expense, net $ (5,563 ) $ (1,775 ) $ (17,356 ) $ (2,795 ) |
Schedule of Project Assets and Deferred Project Costs | Project assets and deferred project costs consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Project assets – development costs, including project acquisition and land costs $ 407,107 $ 436,375 Project assets – construction costs 866,174 674,762 Project assets 1,273,281 1,111,137 Deferred project costs – current 94,549 187,940 Deferred project costs – noncurrent 38,800 — Deferred project costs 133,349 187,940 Total project assets and deferred project costs $ 1,406,630 $ 1,299,077 |
Schedule of Other Assets, Noncurrent | Other assets consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Notes receivable (1) $ 7,851 $ 12,648 Income taxes receivable 4,231 4,071 Deferred rent 32,832 23,317 Other 32,231 29,686 Other assets $ 77,145 $ 69,722 (1) In April 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 in December 2026. As of September 30, 2016 and December 31, 2015 , the balance on the credit facility was €7.0 million ( $7.9 million and $7.6 million , respectively, at the balance sheet dates). In February 2014 , we entered into a convertible loan agreement with a strategic entity for an available amount of up to $5.0 million . As of December 31, 2015 , the balance outstanding on the convertible loan was $5.0 million , which we converted into an equity interest in the entity in January 2016. |
Schedule of Goodwill | Goodwill, summarized by relevant reporting unit, consisted of the following as of September 30, 2016 and December 31, 2015 (in thousands): December 31, Acquisitions (Impairments) September 30, 2016 CdTe components $ 403,420 $ — $ 403,420 Crystalline silicon components 6,097 — 6,097 Systems 68,833 — 68,833 Accumulated impairment losses (393,365 ) (6,097 ) (399,462 ) Total $ 84,985 $ (6,097 ) $ 78,888 |
Schedule of Other Intangibles, Net | The following tables summarize our intangible assets at September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Gross Amount Accumulated Amortization Accumulated Impairments Net Amount Developed technology $ 114,612 $ (16,365 ) $ (36,215 ) $ 62,032 Power purchase agreements 6,644 — — 6,644 Patents 6,070 (2,360 ) $ — $ 3,710 Total $ 127,326 $ (18,725 ) $ (36,215 ) $ 72,386 December 31, 2015 Gross Amount Accumulated Amortization Accumulated Impairments Net Amount Developed technology 114,565 $ (8,809 ) $ — $ 105,756 Patents 6,070 (1,824 ) — 4,246 Total $ 120,635 $ (10,633 ) $ — $ 110,002 |
Schedule of Accrued Expenses | Accrued expenses consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Accrued compensation and benefits $ 49,981 $ 63,699 Accrued property, plant and equipment 11,174 7,808 Accrued inventory and balance of systems parts 30,033 53,542 Accrued project assets and deferred project costs 115,159 145,695 Product warranty liability (1) 37,552 38,468 Accrued expenses in excess of normal product warranty liability and related expenses (1) 3,977 5,040 Other 81,093 95,200 Accrued expenses $ 328,969 $ 409,452 (1) See Note 13. “Commitments and Contingencies” to our condensed consolidated financial statements for further discussion of “Product warranty liability” and “Accrued expenses in excess of normal product warranty liability and related expenses.” |
Schedule of Other Current Liabilities | Other current liabilities Other current liabilities consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Deferred revenue $ 8,482 $ 17,957 Derivative instruments 6,387 16,450 Contingent consideration (1) 16,954 9,233 Financing liability (2) 5,231 5,277 Other 18,787 8,821 Other current liabilities $ 55,841 $ 57,738 (1) See Note 13. “Commitments and Contingencies” to our condensed consolidated financial statements for further discussion. (2) See Note 10. “Investments in Unconsolidated Affiliates and Joint Ventures” to our condensed consolidated financial statements for further discussion of the financing liabilities associated with our leaseback of the Maryland Solar project. |
Schedule of Other Liabilities | Other liabilities Other liabilities consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Product warranty liability (1) $ 217,332 $ 193,283 Other taxes payable 24,215 66,549 Contingent consideration (1) 6,987 8,756 Liability in excess of normal product warranty liability and related expenses (1) 15,174 19,565 Financing liability (2) 33,842 36,706 Other 106,217 67,453 Other liabilities $ 403,767 $ 392,312 (1) See Note 13. “Commitments and Contingencies” to our condensed consolidated financial statements for further discussion on “Product warranty liability,” “Contingent consideration,” and “Liability in excess of normal product warranty liability and related expenses.” (2) See Note 10. “Investments in Unconsolidated Affiliates and Joint Ventures” to our condensed consolidated financial statements for further discussion of the financing liabilities associated with our leaseback of the Maryland Solar project. |
8. Derivative Financial Instr29
8. Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Prepaid Expenses and Other Current Assets Other Current Liabilities Other Liabilities Derivatives designated as hedging instruments: Foreign exchange forward contracts $ — $ 357 $ 358 Total derivatives designated as hedging instruments $ — $ 357 $ 358 Derivatives not designated as hedging instruments: Foreign exchange forward contracts $ 472 $ 6,030 $ — Total derivatives not designated as hedging instruments $ 472 $ 6,030 $ — Total derivative instruments $ 472 $ 6,387 $ 358 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 |
Offsetting Derivatives [Table Text Block] | The impact of offsetting balances associated with derivative instruments designated as hedging instruments is shown below (in thousands): September 30, 2016 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 $ (715 ) — (715 ) — — $ (715 ) 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 ) |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | The following tables present the effective amounts related to derivative instruments designated as cash flow hedges affecting accumulated other comprehensive income (loss) and our condensed consolidated statements of operations for the nine months ended September 30, 2016 and 2015 (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, 2015 $ 162 $ (16 ) $ (2,017 ) $ (1,871 ) Amounts recognized in other comprehensive income (loss) 37 (2 ) 5,108 5,143 Amounts reclassified to earnings impacting: Foreign currency loss, net — — (4,896 ) (4,896 ) Interest expense, net — 18 1,805 1,823 Balance in accumulated other comprehensive income (loss) at September 30, 2016 $ 199 $ — $ — $ 199 Balance in accumulated other comprehensive income (loss) at December 31, 2014 $ 6,621 $ (210 ) $ (3,399 ) $ 3,012 Amounts recognized in other comprehensive income (loss) 703 22 (11,373 ) (10,648 ) Amounts reclassified to earnings impacting: Net sales (1,782 ) — — (1,782 ) Cost of sales (5,509 ) — — (5,509 ) Foreign currency loss, net — — 12,126 12,126 Interest expense, net — 153 327 480 Balance in accumulated other comprehensive income (loss) at September 30, 2015 $ 33 $ (35 ) $ (2,319 ) $ (2,321 ) |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following table presents amounts related to derivative instruments not designated as hedges affecting our condensed consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 (in thousands): Amount of Gain (Loss) Recognized in Income Three Months Ended Nine Months Ended Income Statement Line Items 2016 2015 2016 2015 Foreign exchange forward contracts Foreign currency loss, net $ (6,763 ) $ 9,527 $ (29,740 ) $ 1,543 Foreign exchange forward contracts Cost of sales $ — $ (2,232 ) $ — $ 7,731 |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | As of September 30, 2016 and December 31, 2015 , 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): September 30, 2016 Currency Notional Amount USD Equivalent Indian rupee INR 860.0 $12.9 December 31, 2015 Currency Notional Amount USD Equivalent Indian rupee INR 1,290.0 $19.4 |
Schedule of Notional Value of Foreign Exchange Forward Derivatives [Table Text Block] | As of September 30, 2016 and December 31, 2015 , 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): September 30, 2016 Transaction Currency Notional Amount USD Equivalent Purchase Euro €61.9 $69.4 Sell Euro €116.2 $130.3 Sell Australian dollar AUD 14.5 $11.1 Sell Malaysian ringgit MYR 24.5 $5.9 Sell Canadian dollar CAD 19.1 $14.6 Purchase Chilean peso CLP 10,780.6 $16.4 Purchase Chinese yuan CNY 20.5 $3.1 Sell Japanese yen JPY 9,446.2 $93.0 Sell British pound GBP 1.9 $2.5 Purchase Indian rupee INR 121.2 $1.8 Sell Indian rupee INR 12,889.1 $192.8 Sell South African rand ZAR 54.2 $3.9 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 |
9. Fair Value Measurements (Tab
9. Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value assets and liabilities measured on a recurring basis | At September 30, 2016 and December 31, 2015 , the fair value measurements of our assets and liabilities that we measure on a recurring basis were as follows (in thousands): September 30, 2016 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: Marketable securities: Foreign debt 635,985 — 635,985 — Time deposits 40,000 40,000 — — Restricted investments 406,618 — 406,618 — Derivative assets 472 — 472 — Total assets $ 1,083,075 $ 40,000 $ 1,043,075 $ — Liabilities: Derivative liabilities $ 6,745 $ — $ 6,745 $ — 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 $ — |
Fair value of financial instruments | The carrying values and fair values of our financial and derivative instruments at September 30, 2016 and December 31, 2015 were as follows (in thousands): September 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Assets: Marketable securities $ 675,985 $ 675,985 $ 703,454 $ 703,454 Foreign exchange forward contract assets 472 472 2,691 2,691 Restricted investments 406,618 406,618 326,114 326,114 Notes receivable – noncurrent 7,851 8,007 12,648 18,382 Notes receivable, affiliates – noncurrent 20,313 22,590 17,887 19,932 Liabilities: Long-term debt, including current maturities $ 786,466 $ 798,488 $ 288,350 $ 294,449 Interest rate swap contract liabilities — — 16 16 Cross-currency swap contract liabilities — — 20,744 20,744 Foreign exchange forward contract liabilities 6,745 6,745 9,810 9,810 |
10. Investments in Unconsolid31
10. Investments in Unconsolidated Affiliates and Joint Ventures (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 and December 31, 2015 (in thousands): September 30, December 31, Equity method investments $ 424,116 $ 375,355 Cost method investments 24,847 24,450 Investments in unconsolidated affiliates and joint ventures $ 448,963 $ 399,805 |
11. Percentage-of-Completion 32
11. Percentage-of-Completion Changes in Estimates (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Changes in Estimates for Systems Business [Abstract] | |
Changes in Estimates Systems Business | The table below outlines the impact on gross profit of the aggregate net change in systems business contract estimates (both increases and decreases) for the three and nine months ended September 30, 2016 and 2015 as well as the number of projects that comprise such aggregate net change. 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 estimate as a percentage of the aggregate gross profit for such projects. Three Months Ended Nine Months Ended 2016 2015 2016 2015 Number of projects 7 5 8 8 Increase in gross profit resulting from net change in estimate (in thousands) $ 25,557 $ 10,521 $ 68,687 $ 51,133 Net change in estimate as a percentage of aggregate gross profit for associated projects 3.3 % 2.0 % 7.5 % 3.0 % |
12. Debt (Tables)
12. Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments | Our long-term debt consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): Balance (USD) Loan Agreement Maturity Loan Denomination September 30, December 31, Revolving credit facility July 2018 USD $ 550,000 $ — Project construction credit facilities Various Various 245,457 218,183 Malaysian ringgit facility agreement September 2018 MYR — 54,175 Malaysian euro facility agreement April 2018 EUR — 21,869 Malaysian facility agreement March 2016 EUR — 5,100 Capital lease obligations Various Various 691 1,065 Long-term debt principal 796,148 300,392 Less: unamortized discount and issuance costs (8,991 ) (10,977 ) Total long-term debt 787,157 289,415 Less: current portion (626,026 ) (38,090 ) Noncurrent portion $ 161,131 $ 251,325 |
Schedule of Borrowing Rate on Debt | Our long-term debt borrowing rates as of September 30, 2016 were as follows: Loan Agreement Borrowing Rate at September 30, 2016 Revolving Credit Facility 2.77% 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% Capital lease obligations Various |
Schedule of Maturities of Long-term Debt | At September 30, 2016 , the future principal payments on our long-term debt, excluding payments related to capital leases, were due as follows (in thousands): Total Debt Remainder of 2016 $ 550,161 2017 76,474 2018 4,808 2019 5,782 2020 11,927 Thereafter 146,305 Total long-term debt future principal payments $ 795,457 |
13. Commitments and Contingen34
13. Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | Product warranty activities during the three and nine months ended September 30, 2016 and 2015 were as follows (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Product warranty liability, beginning of period $ 250,371 $ 222,304 $ 231,751 $ 223,057 Accruals for new warranties issued 6,158 16,700 26,854 34,948 Settlements (2,814 ) (4,722 ) (9,246 ) (9,817 ) Changes in estimate of product warranty liability 1,169 (1,212 ) 5,525 (15,118 ) Product warranty liability, end of period $ 254,884 $ 233,070 $ 254,884 $ 233,070 Current portion of warranty liability $ 37,552 $ 48,311 $ 37,552 $ 48,311 Noncurrent portion of warranty liability $ 217,332 $ 184,759 $ 217,332 $ 184,759 |
14. Share-Based Compensation (T
14. Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The share-based compensation expense that we recognized in our condensed consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 was as follows (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Cost of sales $ 1,612 $ 3,048 $ 6,255 $ 8,539 Research and development 849 997 2,704 3,099 Selling, general and administrative 3,435 8,164 15,508 21,483 Production start-up — 4 — 25 Total share-based compensation expense $ 5,896 $ 12,213 $ 24,467 $ 33,146 The following table presents our share-based compensation expense by type of award for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Restricted and performance stock units $ 4,939 $ 10,579 $ 21,969 $ 29,350 Unrestricted stock 420 332 1,258 995 Stock purchase plan 377 458 1,071 1,127 5,736 11,369 24,298 31,472 Net amount released from inventory 160 844 169 1,674 Total share-based compensation expense $ 5,896 $ 12,213 $ 24,467 $ 33,146 |
16. Net Income Per Share (Table
16. Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculation of basic and diluted net income per share for the three and nine months ended September 30, 2016 and 2015 was as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Basic net income per share Numerator: Net income $ 154,146 $ 349,318 $ 338,119 $ 382,286 Denominator: Weighted-average common shares outstanding 103,339 100,906 102,496 100,713 Diluted net income per share Denominator: Weighted-average common shares outstanding 103,339 100,906 102,496 100,713 Effect of restricted and performance stock units and stock purchase plan shares 394 1,393 566 1,132 Weighted-average shares used in computing diluted net income per share 103,733 102,299 103,062 101,845 Net income per share: Basic $ 1.49 $ 3.46 $ 3.30 $ 3.80 Diluted $ 1.49 $ 3.41 $ 3.28 $ 3.75 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the potential shares of common stock that were excluded from the computation of diluted net income per share for the three and nine months ended September 30, 2016 and 2015 as they would have had an anti-dilutive effect (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Anti-dilutive shares 411 46 282 64 |
17. Comprehensive Income (Los37
17. Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of 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 three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended 2016 2015 Net income $ 154,146 $ 349,318 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments 1,418 (1,103 ) Unrealized (loss) gain on marketable securities and restricted investments for the period, net of tax of $309 and $(1,366) (7,656 ) 17,944 Less: reclassification for gains included in net income, net of tax of $36 and $0 (261 ) — Unrealized (loss) gain on marketable securities and restricted investments (7,917 ) 17,944 Unrealized loss on derivative instruments for the period, net of tax of $59 and $18 (276 ) (7,360 ) Less: reclassification for losses included in net income, net of tax of $0 and $765 — 6,022 Unrealized loss on derivative instruments (276 ) (1,338 ) Other comprehensive (loss) income, net of tax (6,775 ) 15,503 Comprehensive income $ 147,371 $ 364,821 Nine Months Ended 2016 2015 Net income $ 338,119 $ 382,286 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments 4,635 (14,001 ) Unrealized gain (loss) on marketable securities and restricted investments for the period, net of tax of $(3,771) and $450 62,841 (4,409 ) Less: reclassification for gains included in net income, net of tax of $2,940 and $0 (35,162 ) — Unrealized gain (loss) on marketable securities and restricted investments 27,679 (4,409 ) Unrealized gain (loss) on derivative instruments for the period, net of tax of $1 and $(182) 5,143 (10,832 ) Less: reclassification for losses included in net income, net of tax of $0 and $2,278 (3,073 ) 7,593 Unrealized gain (loss) on derivative instruments 2,070 (3,239 ) Other comprehensive income (loss), net of tax 34,384 (21,649 ) Comprehensive income $ 372,503 $ 360,637 |
Schedule of Accumulated Other Comprehensive Income | The following tables reflect the changes in accumulated other comprehensive income, net of tax, for the nine months ended September 30, 2016 and 2015 (in thousands): Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Marketable Securities and Restricted Investments Unrealized Gain (Loss) on Derivative Instruments Total Balance as of December 31, 2015 $ (69,769 ) $ 86,884 $ (1,635 ) $ 15,480 Other comprehensive income before reclassifications 4,635 62,841 5,143 72,619 Amounts reclassified from accumulated other comprehensive income — (35,162 ) (3,073 ) (38,235 ) Net other comprehensive income 4,635 27,679 2,070 34,384 Balance as of September 30, 2016 $ (65,134 ) $ 114,563 $ 435 $ 49,864 Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Marketable Securities and Restricted Investments Unrealized Gain (Loss) on Derivative Instruments Total Balance as of December 31, 2014 $ (53,337 ) $ 102,299 $ 1,178 $ 50,140 Other comprehensive loss before reclassifications (14,001 ) (4,409 ) (10,832 ) (29,242 ) Amounts reclassified from accumulated other comprehensive income — — 7,593 7,593 Net other comprehensive loss (14,001 ) (4,409 ) (3,239 ) (21,649 ) Balance as of September 30, 2015 $ (67,338 ) $ 97,890 $ (2,061 ) $ 28,491 |
Reclassification out of Accumulated Other Comprehensive Income | Amount Reclassified for the Details of Accumulated Other Comprehensive Income Nine Months Ended Income Statement Line Item 2016 2015 Gains and (losses) on marketable securities and restricted investments: $ 38,102 $ — Other income (expense), net (2,940 ) — Tax expense $ 35,162 $ — Total, net of tax Gains and (losses) on derivative contracts: Foreign exchange forward contracts $ — $ 1,782 Net sales Foreign exchange forward contracts — 5,509 Cost of sales Cross currency swap contract 4,896 (12,126 ) Foreign currency loss, net Interest rate and cross currency swap contracts (1,823 ) (480 ) Interest expense, net 3,073 (5,315 ) Total before tax — (2,278 ) Tax expense $ 3,073 $ (7,593 ) Total net of tax |
18. Segment Reporting (Tables)
18. Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting Information, Profit (Loss) [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information about our reportable segments during the three and nine months ended September 30, 2016 and 2015 was as follows (in thousands): Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Components Systems Total Components Systems Total Net sales $ 427,812 $ 260,217 $ 688,029 $ 441,530 $ 829,715 $ 1,271,245 Gross profit (2) 138,676 47,604 186,280 165,997 318,368 484,365 Depreciation and amortization expense 52,204 5,849 58,053 61,508 3,477 64,985 Income (loss) before taxes (1) (2) 109,217 (16,067 ) 93,150 137,878 260,009 397,887 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Components Systems Total Components Systems Total Net sales $ 1,167,721 $ 1,303,173 $ 2,470,894 $ 988,591 $ 1,648,080 $ 2,636,671 Gross profit (2) 329,803 310,587 640,390 243,222 444,607 687,829 Depreciation and amortization expense 160,770 12,698 173,468 183,286 10,274 193,560 Income before taxes (1) (2) 183,831 120,930 304,761 116,877 272,903 389,780 September 30, 2016 December 31, 2015 Components Systems Total Components Systems Total Goodwill (1) $ 10,055 $ 68,833 $ 78,888 $ 16,152 $ 68,833 $ 84,985 Total assets 4,817,929 3,269,731 8,087,660 4,037,955 3,278,376 7,316,331 |
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 three and nine months ended September 30, 2016 and 2015 . For the purposes of the following table, (i) solar module revenue is composed of revenue from the sale of solar modules to third parties, which does not include any modules sold as part of our PV solar power systems, and (ii) solar power system revenue is composed of revenue from the sale of PV solar power systems and related products and services, including any modules installed in such systems and any revenue generated by such systems (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Solar module revenue $ 213,045 $ 60,836 $ 425,776 $ 180,792 Solar power system revenue 474,984 1,210,409 2,045,118 2,455,879 Net sales $ 688,029 $ 1,271,245 $ 2,470,894 $ 2,636,671 |
(Details)
(Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accounting Policies [Abstract] | ||||
Equity Method Investments, Other than Temporary Impairment | $ 0 | $ 0 | $ 0 | $ 0 |
4. Restructuring and Asset Im40
4. Restructuring and Asset Impairments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 4,314 | $ 0 | $ 89,846 | $ 0 | |
Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 2,900 | 3,800 | |||
Crystalline Silicon Components Segment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1,400 | $ 84,600 | 86,000 | ||
Restructuring and Related Cost, Expected Cost Remaining | 5,000 | $ 5,000 | |||
Crystalline Silicon Components Segment [Member] | Manufacturing Equipment Impairments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 35,500 | ||||
Crystalline Silicon Components Segment [Member] | Intangible Asset Impairments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 35,800 | ||||
Crystalline Silicon Components Segment [Member] | Goodwill Impairments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 6,100 | ||||
Crystalline Silicon Components Segment [Member] | Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 1,400 | $ 7,200 |
5. Cash, Cash Equivalents, an41
5. Cash, Cash Equivalents, and Marketable Securities (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016USD ($)Investments | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)Investments | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)Investments | Dec. 31, 2014USD ($) | |
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||||
Cash and cash equivalents | $ 1,414,219 | $ 1,189,703 | $ 1,414,219 | $ 1,189,703 | $ 1,126,826 | $ 1,482,054 |
Marketable securities | 675,985 | 675,985 | 703,454 | |||
Total cash, cash equivalents, and marketable securities | 2,090,204 | 2,090,204 | $ 1,830,280 | |||
Marketable securities, realized gain (loss) | $ 300 | $ 0 | $ 300 | $ 0 | ||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | Investments | 3 | 3 | 2 | |||
Available-for-sale securities, in loss position for 12 months or greater, estimated fair value | $ 51,405 | $ 51,405 | $ 31,491 | |||
Available-for-sale securities, continuous unrealized loss position, 12 months or greater, accumulated loss | 89 | 89 | 69 | |||
Maximum [Member] | ||||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||||
Available-for-sale securities, continuous unrealized loss position, 12 months or greater, accumulated loss | 100 | 100 | 100 | |||
Foreign debt [Member] | ||||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||||
Marketable securities | 635,985 | 635,985 | 663,454 | |||
Available-for-sale securities, in loss position for 12 months or greater, estimated fair value | 51,405 | 51,405 | 31,491 | |||
Available-for-sale securities, continuous unrealized loss position, 12 months or greater, accumulated loss | 89 | 89 | 69 | |||
Time deposits [Member] | ||||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||||
Marketable securities | 40,000 | 40,000 | 40,000 | |||
Cash [Member] | ||||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||||
Cash and cash equivalents | 1,414,219 | 1,414,219 | 1,126,496 | |||
Money market funds [Member] | ||||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||||
Cash and cash equivalents | $ 0 | $ 0 | $ 330 |
5. Cash, Cash Equivalents, an42
5. Cash, Cash Equivalents, and Marketable Securities (Details) - Available For Sale - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | $ 676,179 | $ 705,900 |
Available-for-sale securities, gross unrealized gains | 770 | 9 |
Available-for-sale securities, estimated fair value | 675,985 | 703,454 |
Available-for-sale securities, accumulated unrealized gain (loss) | (200) | (2,400) |
Available-for-sale securities, gross unrealized losses | 964 | 2,455 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Available-for-sale securities, in loss position for less than 12 months, estimated fair value | 318,445 | 629,033 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | 875 | 2,386 |
Available-for-sale securities, in loss position for 12 months or greater, estimated fair value | 51,405 | 31,491 |
Available-for-sale securities, continuous unrealized loss position, 12 months or greater, accumulated loss | 89 | 69 |
Available-for-sale securities, in loss position, estimated fair value | 369,850 | 660,524 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | 964 | 2,455 |
One year or less [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 300,421 | 290,377 |
Available-for-sale securities, gross unrealized gains | 9 | 9 |
Available-for-sale securities, estimated fair value | 300,218 | 289,980 |
Available-for-sale securities, gross unrealized losses | 212 | 406 |
One year to two years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 148,578 | 228,492 |
Available-for-sale securities, gross unrealized gains | 203 | 0 |
Available-for-sale securities, estimated fair value | 148,687 | 227,309 |
Available-for-sale securities, gross unrealized losses | 94 | 1,183 |
Two years to three years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 227,180 | 187,031 |
Available-for-sale securities, gross unrealized gains | 558 | 0 |
Available-for-sale securities, estimated fair value | 227,080 | 186,165 |
Available-for-sale securities, gross unrealized losses | 658 | 866 |
Foreign debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 636,179 | 665,900 |
Available-for-sale securities, gross unrealized gains | 770 | 9 |
Available-for-sale securities, estimated fair value | 635,985 | 663,454 |
Available-for-sale securities, gross unrealized losses | 964 | 2,455 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Available-for-sale securities, in loss position for less than 12 months, estimated fair value | 318,445 | 629,033 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | 875 | 2,386 |
Available-for-sale securities, in loss position for 12 months or greater, estimated fair value | 51,405 | 31,491 |
Available-for-sale securities, continuous unrealized loss position, 12 months or greater, accumulated loss | 89 | 69 |
Available-for-sale securities, in loss position, estimated fair value | 369,850 | 660,524 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | 964 | 2,455 |
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, estimated fair value | 40,000 | 40,000 |
Available-for-sale securities, gross unrealized losses | $ 0 | $ 0 |
6. Restricted Cash and Invest43
6. Restricted Cash and Investments (Details) - USD ($) $ in Thousands | 1 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Restricted Cash and Investments [Abstract] | ||
Restricted cash | $ 3,022 | $ 7,764 |
Restricted investments | 406,618 | 326,114 |
Restricted cash and investments, noncurrent | 409,640 | 333,878 |
Restricted cash, current | $ 33,440 | $ 72,526 |
Solar module collection and recycling custodial account | 90 days | |
Product minimum service life | 25 years |
6. Restricted Cash and Invest44
6. Restricted Cash and Investments (Details) - Available For Sale Securities - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, amortized cost | $ 676,179 | $ 676,179 | $ 676,179 | $ 705,900 |
Available-for-sale securities, gross unrealized gains | 770 | 770 | 770 | 9 |
Available-for-sale securities, gross unrealized losses | 964 | 964 | 964 | 2,455 |
Restricted investments | $ 406,618 | 406,618 | 406,618 | $ 326,114 |
Minimum [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Contractual Maturities Of Available-For-Sale Marketable Securities, Range Start (In Years) | 11 years | 12 years | ||
Maximum [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Contractual Maturities Of Available-For-Sale Marketable Securities, Range End (In Years) | 20 years | 21 years | ||
Restricted Investments [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, gross realized gains | 0 | 37,804 | ||
Available-for-sale securities, amortized cost | $ 290,307 | 290,307 | 290,307 | $ 238,735 |
Available-for-sale securities, gross unrealized gains | 116,311 | 116,311 | 116,311 | 87,379 |
Available-for-sale securities, gross unrealized losses | 0 | 0 | 0 | 0 |
Restricted investments | 406,618 | 406,618 | 406,618 | 326,114 |
Restricted Investments [Member] | Foreign government obligations [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, amortized cost | 119,103 | 119,103 | 119,103 | 177,507 |
Available-for-sale securities, gross unrealized gains | 88,412 | 88,412 | 88,412 | 75,670 |
Available-for-sale securities, gross unrealized losses | 0 | 0 | 0 | 0 |
Restricted investments | 207,515 | 207,515 | 207,515 | 253,177 |
Restricted Investments [Member] | U.S. government obligations [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, amortized cost | 171,204 | 171,204 | 171,204 | 61,228 |
Available-for-sale securities, gross unrealized gains | 27,899 | 27,899 | 27,899 | 11,709 |
Available-for-sale securities, gross unrealized losses | 0 | 0 | 0 | 0 |
Restricted investments | $ 199,103 | $ 199,103 | $ 199,103 | $ 72,937 |
7. Consolidated Balance Sheet45
7. Consolidated Balance Sheet Details (Details) $ in Thousands, € in Millions | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016EUR (€) | Sep. 30, 2016USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Feb. 28, 2014USD ($) | Apr. 30, 2009EUR (€) | |
Accounts receivable, trade, unbilled and retainage | |||||||||||
Accounts receivable trade, gross | $ 323,049 | $ 500,631 | |||||||||
Allowance for doubtful accounts | 0 | (2) | |||||||||
Accounts receivable trade, net | 323,049 | 500,629 | |||||||||
Secured Accounts Receivables | 43,700 | 21,500 | |||||||||
Accounts receivable, unbilled | 224,219 | 40,205 | |||||||||
Retainage | 21,563 | 18,966 | |||||||||
Accounts receivable, unbilled and retainage | 245,782 | 59,171 | |||||||||
Inventories and balance of systems parts | |||||||||||
Raw materials | 155,591 | 159,078 | |||||||||
Work in process | 22,916 | 19,736 | |||||||||
Finished goods | 292,741 | 309,369 | |||||||||
Inventories | 471,248 | 488,183 | |||||||||
Inventories - current | 369,086 | 380,424 | |||||||||
Inventories - noncurrent | 102,162 | 107,759 | |||||||||
Balance of systems parts | 77,942 | 136,889 | |||||||||
Prepaid expenses and other current assets | |||||||||||
Value added tax receivables | 69,423 | 51,473 | |||||||||
Prepaid expenses | 60,223 | 74,990 | |||||||||
Derivative instruments | 472 | 2,691 | |||||||||
Restricted cash | 33,440 | 72,526 | |||||||||
Other current assets | 101,248 | 47,297 | |||||||||
Prepaid expenses and other current assets | 264,806 | 248,977 | |||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, gross | 2,749,078 | 2,619,685 | |||||||||
Less: accumulated depreciation | (1,482,741) | (1,335,549) | |||||||||
Property, plant and equipment, net | 1,266,337 | 1,284,136 | |||||||||
PV solar power systems, net | |||||||||||
PV solar power systems, gross | 498,332 | 97,991 | |||||||||
Accumulated depreciation | (11,086) | (4,250) | |||||||||
PV solar power systems, net | 487,246 | 93,741 | |||||||||
PV Solar Power Systems Placed in Service | $ 399,300 | ||||||||||
Capitalized interest | |||||||||||
Interest cost incurred | $ (5,998) | $ (5,697) | (20,365) | $ (13,923) | |||||||
Interest expense, net | (5,563) | (1,775) | (17,356) | (2,795) | |||||||
Project assets and deferred project costs | |||||||||||
Project assets - development costs, including project acquisition and land costs | 407,107 | 436,375 | |||||||||
Project assets - construction costs | 866,174 | 674,762 | |||||||||
Project assets | 1,273,281 | 1,111,137 | |||||||||
Deferred project costs - current | 94,549 | 187,940 | |||||||||
Deferred project costs - noncurrent | 38,800 | 0 | |||||||||
Deferred project costs | 133,349 | 187,940 | |||||||||
Total project assets and deferred project costs | 1,406,630 | 1,299,077 | |||||||||
Other assets | |||||||||||
Notes receivable | 7,851 | 12,648 | |||||||||
Income taxes receivable | 4,231 | 4,071 | |||||||||
Deferred rent | 32,832 | 23,317 | |||||||||
Other | 32,231 | 29,686 | |||||||||
Other assets | 77,145 | 69,722 | |||||||||
Goodwill | |||||||||||
Goodwill | 78,888 | 84,985 | |||||||||
Accumulated impairment loss | (399,462) | (393,365) | |||||||||
Goodwill impairment | (6,097) | ||||||||||
Goodwill, period increase (decrease) | (6,097) | ||||||||||
Other intangibles, net | |||||||||||
Intangible assets, gross | 127,326 | 120,635 | |||||||||
Intangible assets, accumulated amortization | (18,725) | (10,633) | |||||||||
Intangible assets, accumulated impairments | (36,215) | 0 | |||||||||
Intangible assets, net | 72,386 | 110,002 | |||||||||
Amortization of intangible assets | 2,100 | 3,000 | 8,100 | 6,300 | |||||||
Accrued expenses | |||||||||||
Accrued compensation and benefits | 49,981 | 63,699 | |||||||||
Accrued property, plant, and equipment | 11,174 | 7,808 | |||||||||
Accrued inventory and balance of systems parts | 30,033 | 53,542 | |||||||||
Accrued project assets and deferred project costs | 115,159 | 145,695 | |||||||||
Product warranty liability | 37,552 | 38,468 | |||||||||
Accrued expenses in excess of normal product warranty liability and related expenses | 3,977 | 5,040 | |||||||||
Other | 81,093 | 95,200 | |||||||||
Accrued expenses | 328,969 | 409,452 | |||||||||
Billings in excess of costs and estimated earnings | 80,830 | 87,942 | |||||||||
Payments and billings for deferred project costs | 103,337 | 28,580 | |||||||||
Other current liabilities | |||||||||||
Deferred revenue | 8,482 | 17,957 | |||||||||
Derivative instruments | 6,387 | 16,450 | |||||||||
Contingent consideration | 16,954 | 9,233 | |||||||||
Financing liability | 5,231 | 5,277 | |||||||||
Other | 18,787 | 8,821 | |||||||||
Other current liabilities | 55,841 | 57,738 | |||||||||
Other liabilities | |||||||||||
Product warranty liability | 217,332 | 193,283 | |||||||||
Other taxes payable | 24,215 | 66,549 | |||||||||
Contingent consideration | 6,987 | 8,756 | |||||||||
Liability in excess of normal product warranty liability and related expenses | 15,174 | 19,565 | |||||||||
Financing liability | 33,842 | 36,706 | |||||||||
Other | 106,217 | 67,453 | |||||||||
Other liabilities | 403,767 | 392,312 | |||||||||
Developed Technology Rights [Member] | |||||||||||
Other intangibles, net | |||||||||||
Intangible assets, gross | 114,612 | 6,070 | |||||||||
Intangible assets, accumulated amortization | (16,365) | (1,824) | |||||||||
Intangible assets, accumulated impairments | (36,215) | 0 | |||||||||
Intangible assets, net | 62,032 | 4,246 | |||||||||
Power Purchase Agreements [Member] | |||||||||||
Other intangibles, net | |||||||||||
Intangible assets, gross | 6,644 | ||||||||||
Intangible assets, accumulated amortization | 0 | ||||||||||
Intangible assets, accumulated impairments | 0 | ||||||||||
Intangible assets, net | 6,644 | ||||||||||
Patents [Member] | |||||||||||
Other intangibles, net | |||||||||||
Intangible assets, gross | 6,070 | 114,565 | |||||||||
Intangible assets, accumulated amortization | (2,360) | (8,809) | |||||||||
Intangible assets, accumulated impairments | 0 | 0 | |||||||||
Intangible assets, net | 3,710 | 105,756 | |||||||||
CdTe Components Segment [Member] | |||||||||||
Goodwill | |||||||||||
Goodwill | 403,420 | 403,420 | |||||||||
Goodwill from acquisition | 0 | ||||||||||
Crystalline Silicon Components Segment [Member] | |||||||||||
Goodwill | |||||||||||
Goodwill | 6,097 | 6,097 | |||||||||
Goodwill from acquisition | 0 | ||||||||||
Goodwill impairment | $ (6,100) | ||||||||||
Crystalline Silicon Components Segment [Member] | Developed Technology Rights [Member] | |||||||||||
Other intangibles, net | |||||||||||
Impairment of intangible assets | $ 35,800 | ||||||||||
Systems Segment [Member] | |||||||||||
Goodwill | |||||||||||
Goodwill | 68,833 | 68,833 | |||||||||
Goodwill from acquisition | 0 | ||||||||||
Credit Facility Agreement [Member] | |||||||||||
Other assets | |||||||||||
Notes receivable | € 7 | 7,900 | € 7 | 7,600 | |||||||
Notes Receivable Initial Available Amount | € | € 17.5 | ||||||||||
Note Receivable Interest Rate | 8.00% | ||||||||||
Convertible Loan with Strategic Entity [Member] | |||||||||||
Other assets | |||||||||||
Notes receivable | 5,000 | ||||||||||
Notes Receivable Initial Available Amount | $ 5,000 | ||||||||||
Property, Plant and Equipment [Member] | |||||||||||
Property, plant and equipment, net | |||||||||||
Depreciation | 51,600 | 61,300 | 158,600 | 185,400 | |||||||
PV solar power systems, net | |||||||||||
Depreciation | 51,600 | 61,300 | 158,600 | 185,400 | |||||||
Capitalized interest | |||||||||||
Interest costs, capitalized during period | 314 | 290 | 1,381 | 1,152 | |||||||
PV solar power systems [Member] | |||||||||||
Property, plant and equipment, net | |||||||||||
Depreciation | 4,400 | 600 | 6,800 | 1,800 | |||||||
PV solar power systems, net | |||||||||||
Depreciation | 4,400 | 600 | 6,800 | 1,800 | |||||||
Project Assets And Deferred Project Costs [Member] | |||||||||||
Capitalized interest | |||||||||||
Interest costs, capitalized during period | $ 121 | $ 3,632 | 1,628 | $ 9,976 | |||||||
Land [Member] | |||||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, gross | 8,752 | 12,063 | |||||||||
Building and improvements [Member] | |||||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, gross | 411,990 | 410,898 | |||||||||
Machinery and equipment [Member] | |||||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, gross | 1,829,887 | 1,824,717 | |||||||||
Office equipment and furniture [Member] | |||||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, gross | 153,871 | 144,773 | |||||||||
Leasehold improvements [Member] | |||||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, gross | 56,988 | 50,546 | |||||||||
Construction in progress [Member] | |||||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, gross | 148,923 | 37,734 | |||||||||
Stored assets [Member] | |||||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, gross | $ 138,667 | $ 138,954 | |||||||||
Property, Plant and Equipment, Transfers and Changes | $ (300) |
8. Derivative Financial Instr46
8. Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 472 | $ 2,691 |
Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (6,387) | (16,450) |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (358) | (14,120) |
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 |
Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 357 | 7,057 |
Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 358 | 14,120 |
Not Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 472 | 2,691 |
Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 6,030 | 9,393 |
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 Liability, Fair Value, Gross Liability | 715 | 417 |
Derivative Assets (Liabilities), at Fair Value, Net | (715) | (417) |
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 | 0 |
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 | 357 | 132 |
Foreign exchange forward contracts [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 358 | 285 |
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 | 472 | 2,691 |
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 | 6,030 | 9,393 |
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 [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 20,744 | |
Derivative Assets (Liabilities), at Fair Value, Net | (20,744) | |
Cross-currency swap contract [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 | |
Cross-currency swap contract [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 6,909 | |
Cross-currency swap contract [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 13,835 | |
Interest rate swap contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 16 | |
Derivative Assets (Liabilities), at Fair Value, Net | (16) | |
Interest rate swap contract [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 | |
Interest rate swap contract [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 16 | |
Interest rate swap contract [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 0 |
8. Derivative Financial Instr47
8. Derivative Financial Instruments (Details) - Hedging Relationship - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Balance in accumulated other comprehensive income (loss) | $ 199,000 | $ (2,321,000) | $ 199,000 | $ (2,321,000) | $ (1,871,000) | $ 3,012,000 |
Amounts recognized in other comprehensive income (loss) | 5,143,000 | (10,648,000) | ||||
Net sales [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1,782,000) | |||||
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) | |||||
Foreign currency loss, net [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (4,896,000) | 12,126,000 | ||||
Interest expense, net [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1,823,000 | 480,000 | ||||
Designated as Hedging Instrument [Member] | Foreign exchange forward contracts [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Liability, Fair Value, Gross Liability | (715,000) | (715,000) | (417,000) | |||
Gross derivative liability (asset) offset in statement of financial position | 0 | 0 | 0 | |||
Derivative Assets (Liabilities), at Fair Value, Net | 715,000 | 715,000 | 417,000 | |||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | 0 | |||
Derivative, Collateral, Obligation to Return Cash | 0 | 0 | 0 | |||
Potential net amount of derivative asset (liability) | (715,000) | (715,000) | (417,000) | |||
Designated as Hedging Instrument [Member] | Cross-currency swap contract [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Liability, Fair Value, Gross Liability | (20,744,000) | |||||
Gross derivative liability (asset) offset in statement of financial position | 0 | |||||
Derivative Assets (Liabilities), at Fair Value, Net | 20,744,000 | |||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | |||||
Derivative, Collateral, Obligation to Return Cash | 0 | |||||
Potential net amount of derivative asset (liability) | (20,744,000) | |||||
Designated as Hedging Instrument [Member] | Interest rate swap contract [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Liability, Fair Value, Gross Liability | (16,000) | |||||
Gross derivative liability (asset) offset in statement of financial position | 0 | |||||
Derivative Assets (Liabilities), at Fair Value, Net | 16,000 | |||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | |||||
Derivative, Collateral, Obligation to Return Cash | 0 | |||||
Potential net amount of derivative asset (liability) | (16,000) | |||||
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 | 0 | (2,232,000) | 0 | 7,731,000 | ||
Not Designated as Hedging Instrument [Member] | Foreign exchange forward contracts [Member] | Foreign currency loss, net [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, Gain (Loss) on Derivative, Net | (6,763,000) | 9,527,000 | (29,740,000) | 1,543,000 | ||
Cash Flow Hedging [Member] | Foreign exchange forward contracts [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Balance in accumulated other comprehensive income (loss) | 199,000 | 33,000 | 199,000 | 33,000 | 162,000 | 6,621,000 |
Amounts recognized in other comprehensive income (loss) | 37,000 | 703,000 | ||||
Cash Flow Hedging [Member] | Foreign exchange forward contracts [Member] | Net sales [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1,782,000) | |||||
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) | |||||
Cash Flow Hedging [Member] | Foreign exchange forward contracts [Member] | Foreign currency loss, net [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] | 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 | ||||
Cash Flow Hedging [Member] | Foreign exchange forward contracts [Member] | Other Nonoperating Income (Expense) [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | 0 | 0 | 0 | ||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | (200,000) | (200,000) | (600,000) | 300,000 | ||
Cash Flow Hedging [Member] | Cross-currency swap contract [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Balance in accumulated other comprehensive income (loss) | 0 | (2,319,000) | 0 | (2,319,000) | (2,017,000) | (3,399,000) |
Amounts recognized in other comprehensive income (loss) | 5,108,000 | (11,373,000) | ||||
Cash Flow Hedging [Member] | Cross-currency swap contract [Member] | Net sales [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | |||||
Cash Flow Hedging [Member] | Cross-currency swap contract [Member] | Cost of sales [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | |||||
Cash Flow Hedging [Member] | Cross-currency swap contract [Member] | Foreign currency loss, net [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (4,896,000) | 12,126,000 | ||||
Cash Flow Hedging [Member] | Cross-currency swap contract [Member] | Interest expense, net [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1,805,000 | 327,000 | ||||
Cash Flow Hedging [Member] | Interest rate swap contract [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Balance in accumulated other comprehensive income (loss) | $ 0 | $ (35,000) | 0 | (35,000) | $ (16,000) | $ (210,000) |
Amounts recognized in other comprehensive income (loss) | (2,000) | 22,000 | ||||
Cash Flow Hedging [Member] | Interest rate swap contract [Member] | Net sales [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | |||||
Cash Flow Hedging [Member] | Interest rate swap contract [Member] | Cost of sales [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | |||||
Cash Flow Hedging [Member] | Interest rate swap contract [Member] | Foreign currency loss, net [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 [Member] | Interest expense, net [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 18,000 | $ 153,000 |
8. Derivative Financial Instr48
8. Derivative Financial Instruments (Details) - Risk Management € in Millions, ₨ in Millions, MYR in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2016USD ($) | Dec. 31, 2015EUR (€) | Sep. 30, 2016INR (₨) | Dec. 31, 2015MYR | Dec. 31, 2015USD ($) | Dec. 31, 2015INR (₨) | Sep. 30, 2011MYR | May 29, 2009EUR (€) | |
Foreign exchange forward contracts [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Maximum length of time hedged in foreign currency cash flow hedge | 24 months | 33 months | ||||||
Malaysian Ringgit Facility Agreement [Member] | Cross-currency swap contract [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative, Notional Amount | MYR 232.6 | $ 54.2 | MYR 465 | |||||
Derivative fixed interest rate paid on swap | 3.495% | |||||||
Derivative, Forward Exchange Rate | 3.19 | |||||||
Malaysian Facility Agreement [Member] | Interest rate swap contract [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative, Notional Amount | € 2.2 | 2.4 | € 57.3 | |||||
Derivative fixed interest rate paid on swap | 2.80% | |||||||
Cash Flow Hedging [Member] | Foreign exchange forward contracts [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $ 0.1 | |||||||
Cash Flow Hedging [Member] | India, Rupees | Foreign exchange forward contracts [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative, Notional Amount | $ 12.9 | ₨ 860 | $ 19.4 | ₨ 1,290 |
8. Derivative Financial Instr49
8. Derivative Financial Instruments (Details) - Transaction Exposure - Foreign exchange forward contracts [Member] € in Millions, ₨ in Millions, ¥ in Millions, ¥ in Millions, £ in Millions, ZAR in Millions, MYR in Millions, CLP in Millions, CAD in Millions, AUD in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2016AUD | Sep. 30, 2016GBP (£) | Sep. 30, 2016EUR (€) | Sep. 30, 2016CNY (¥) | Sep. 30, 2016CLP | Sep. 30, 2016ZAR | Sep. 30, 2016MYR | Sep. 30, 2016USD ($) | Sep. 30, 2016CAD | Sep. 30, 2016INR (₨) | Sep. 30, 2016JPY (¥) | Dec. 31, 2015AUD | Dec. 31, 2015GBP (£) | Dec. 31, 2015EUR (€) | Dec. 31, 2015ZAR | Dec. 31, 2015MYR | Dec. 31, 2015USD ($) | Dec. 31, 2015CAD | Dec. 31, 2015INR (₨) | Dec. 31, 2015JPY (¥) | |
Derivative [Line Items] | ||||||||||||||||||||||
Unrealized Gain (Loss) On Derivatives Not Designated As Hedging Instruments | $ (5.6) | $ 6.7 | ||||||||||||||||||||
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 | ||||||||||||||||||||
Australia, Dollars | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Bought | Australian dollar | |||||||||||||||||||||
Derivative, Currency Sold | Australian dollar | Australian dollar | ||||||||||||||||||||
Malaysia, Ringgits | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Bought | Malaysian ringgit | |||||||||||||||||||||
Derivative, Currency Sold | Malaysian ringgit | Malaysian ringgit | ||||||||||||||||||||
Canada, Dollars | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Sold | Canadian dollar | Canadian dollar | ||||||||||||||||||||
Chile, Pesos | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Bought | Chilean peso | |||||||||||||||||||||
China, Yuan Renminbi | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Bought | Chinese yuan | |||||||||||||||||||||
Japan, Yen | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Sold | Japanese yen | Japanese yen | ||||||||||||||||||||
United Kingdom, Pounds | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Bought | British pound | |||||||||||||||||||||
Derivative, Currency Sold | British pound | British pound | ||||||||||||||||||||
India, Rupees | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Bought | Indian rupee | |||||||||||||||||||||
Derivative, Currency Sold | Indian rupee | Indian rupee | ||||||||||||||||||||
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 African rand | ||||||||||||||||||||
Long [Member] | Euro Member Countries, Euro | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | € 61.9 | $ 69.4 | € 42 | $ 45.9 | ||||||||||||||||||
Long [Member] | Australia, Dollars | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | AUD 41.1 | 29.9 | ||||||||||||||||||||
Long [Member] | Malaysia, Ringgits | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | MYR 61.4 | 14.3 | ||||||||||||||||||||
Long [Member] | Chile, Pesos | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | CLP 10,780.6 | 16.4 | ||||||||||||||||||||
Long [Member] | China, Yuan Renminbi | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | ¥ 20.5 | 3.1 | ||||||||||||||||||||
Long [Member] | United Kingdom, Pounds | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | £ 11.1 | 16.5 | ||||||||||||||||||||
Long [Member] | India, Rupees | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 1.8 | ₨ 121.2 | ||||||||||||||||||||
Long [Member] | South Africa, Rand | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | ZAR 41.1 | 2.7 | ||||||||||||||||||||
Short [Member] | Euro Member Countries, Euro | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | € 116.2 | 130.3 | € 150.1 | 164 | ||||||||||||||||||
Short [Member] | Australia, Dollars | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | AUD 14.5 | 11.1 | AUD 89 | 64.8 | ||||||||||||||||||
Short [Member] | Malaysia, Ringgits | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | MYR 24.5 | 5.9 | MYR 80.7 | 18.8 | ||||||||||||||||||
Short [Member] | Canada, Dollars | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 14.6 | CAD 19.1 | 3.2 | CAD 4.5 | ||||||||||||||||||
Short [Member] | Japan, Yen | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 93 | ¥ 9,446.2 | 70.1 | ¥ 8,448.7 | ||||||||||||||||||
Short [Member] | United Kingdom, Pounds | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | £ 1.9 | 2.5 | £ 16 | 23.7 | ||||||||||||||||||
Short [Member] | India, Rupees | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 192.8 | ₨ 12,889.1 | 134.6 | ₨ 8,939 | ||||||||||||||||||
Short [Member] | South Africa, Rand | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | ZAR 54.2 | $ 3.9 | ZAR 81.5 | $ 5.3 |
9. Fair Value Measurements (Det
9. Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Available-for-sale securities, estimated fair value | $ 675,985 | $ 703,454 |
Restricted investments | 406,618 | 326,114 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Restricted investments | 406,618 | 326,114 |
Derivative assets | 472 | 2,691 |
Total assets | 1,083,075 | 1,032,589 |
Liabilities: | ||
Derivative liabilities | 6,745 | 30,570 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Restricted investments | 0 | 0 |
Derivative assets | 0 | 0 |
Total assets | 40,000 | 40,330 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Restricted investments | 406,618 | 326,114 |
Derivative assets | 472 | 2,691 |
Total assets | 1,043,075 | 992,259 |
Liabilities: | ||
Derivative liabilities | 6,745 | 30,570 |
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 |
Foreign debt [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 635,985 | 663,454 |
Foreign debt [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 635,985 | 663,454 |
Foreign debt [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 0 | 0 |
Foreign debt [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 635,985 | 663,454 |
Foreign debt [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 0 | 0 |
Time deposits [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 40,000 | 40,000 |
Time deposits [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 40,000 | 40,000 |
Time deposits [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 40,000 | 40,000 |
Time deposits [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | 0 | 0 |
Time deposits [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Available-for-sale securities, estimated fair value | $ 0 | 0 |
Money market funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Money market funds | 330 | |
Money market funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Money market funds | 330 | |
Money market funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Money market funds | 0 | |
Money market funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Money market funds | $ 0 |
9. Fair Value Measurements (D51
9. Fair Value Measurements (Details) - Balance Sheet Grouping - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Marketable securities | $ 675,985 | $ 703,454 |
Restricted investments | 406,618 | 326,114 |
Notes receivable - noncurrent | 7,851 | 12,648 |
Notes receivable, affiliates - noncurrent | 20,313 | 17,887 |
Reported Value Measurement [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Marketable securities | 675,985 | 703,454 |
Foreign exchange forward contract assets | 472 | 2,691 |
Restricted investments | 406,618 | 326,114 |
Notes receivable - noncurrent | 7,851 | 12,648 |
Notes receivable, affiliates - noncurrent | 20,313 | 17,887 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, including current maturities | 786,466 | 288,350 |
Foreign exchange forward contract liabilities | 6,745 | 9,810 |
Reported Value Measurement [Member] | Interest rate swap contract [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Interest rate derivative contract liabilities | 0 | 16 |
Reported Value Measurement [Member] | Cross-currency swap contract [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Interest rate derivative contract liabilities | 0 | 20,744 |
Estimate of Fair Value Measurement [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Marketable securities | 675,985 | 703,454 |
Foreign exchange forward contract assets | 472 | 2,691 |
Restricted investments | 406,618 | 326,114 |
Notes receivable - noncurrent | 8,007 | 18,382 |
Notes receivable, affiliates - noncurrent | 22,590 | 19,932 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, including current maturities | 798,488 | 294,449 |
Foreign exchange forward contract liabilities | 6,745 | 9,810 |
Estimate of Fair Value Measurement [Member] | Interest rate swap contract [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Interest rate derivative contract liabilities | 0 | 16 |
Estimate of Fair Value Measurement [Member] | Cross-currency swap contract [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Interest rate derivative contract liabilities | $ 0 | $ 20,744 |
10. Investments in Unconsolid52
10. Investments in Unconsolidated Affiliates and Joint Ventures (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2016 | May 31, 2016 | Aug. 31, 2015 | Jun. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | Feb. 29, 2016 | Dec. 31, 2015 | Nov. 30, 2014 | |
Schedule of Equity and Cost Method Investments [Line Items] | ||||||||||||
Equity method investments | $ 424,116 | $ 424,116 | $ 424,116 | $ 375,355 | ||||||||
Cost method investments | 24,847 | 24,847 | 24,847 | 24,450 | ||||||||
Investments in unconsolidated affiliates and joint ventures | 448,963 | 448,963 | 448,963 | 399,805 | ||||||||
Equity in earnings of unconsolidated affiliates, net of tax | 10,474 | $ (115) | 25,647 | $ 1,640 | ||||||||
Notes receivable, affiliates - noncurrent | 20,313 | 20,313 | 20,313 | 17,887 | ||||||||
Maryland Solar Project [Member] | ||||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | ||||||||||||
Sale Leaseback Transaction, Amount Due under Financing Arrangement | $ 39,100 | $ 39,100 | $ 39,100 | 42,000 | ||||||||
8point3 Energy Partners LP [Member] | ||||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | ||||||||||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Class B Shares Held | 22,116,925 | 22,116,925 | 22,116,925 | |||||||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 28.00% | |||||||||||
8point3 Energy Partners LP [Member] | Operations and Maintenance [Member] | ||||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | ||||||||||||
Revenue from Related Parties | $ 1,300 | 1,200 | $ 4,000 | 1,200 | ||||||||
8point3 Operating Company, LLC [Member] | ||||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | ||||||||||||
Equity method investments | $ 197,000 | $ 197,000 | $ 197,000 | 152,500 | ||||||||
Equity Method Investment, Common Units Held | 6,721,810 | 6,721,810 | 6,721,810 | |||||||||
Equity Method Investment, Subordinated Units Held | 15,395,115 | 15,395,115 | 15,395,115 | |||||||||
Equity Method Investment, Ownership Percentage | 28.00% | 28.00% | 28.00% | |||||||||
Minimum Quarterly Distribution, Threshold for Early Termination of Subordination Period | 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) | |||||||||||
Equity in earnings of unconsolidated affiliates, net of tax | $ 8,600 | 1,400 | $ 25,900 | 1,400 | ||||||||
Equity Method Investment, Financial Information, Senior Secured Credit Facility | $ 775,000 | 525,000 | 775,000 | 775,000 | ||||||||
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 | |||||||||||
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 | |||||||||||
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 | |||||||||||
8point3 Operating Company, LLC [Member] | Incremental Term Loan Facility [Member] | ||||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | ||||||||||||
Equity Method Investment, Financial Information, Senior Secured Credit Facility | 250,000 | 250,000 | 250,000 | |||||||||
8point3 Operating Company, LLC [Member] | Solar Power System [Member] | ||||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | ||||||||||||
Revenue from Related Parties | $ 57,400 | |||||||||||
Desert Stateline Holdings, LLC [Member] | ||||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | ||||||||||||
Equity method investments | $ 199,400 | $ 199,400 | $ 199,400 | 196,900 | ||||||||
Equity Method Investment, Ownership Percentage | 34.00% | 34.00% | 34.00% | |||||||||
Equity in earnings of unconsolidated affiliates, net of tax | $ 2,400 | $ 2,400 | ||||||||||
Equity Method Investment, Ownership Percentage Sold | 51.00% | 15.00% | ||||||||||
Power Purchase Agreement, Term | 20 years | |||||||||||
Clean Energy Collective, LLC Warrant [Member] | ||||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | ||||||||||||
Cost method investments | $ 1,800 | |||||||||||
Clean Energy Collective, LLC [Member] | ||||||||||||
Schedule of Equity and Cost Method Investments [Line Items] | ||||||||||||
Equity method investments | $ 11,700 | $ 11,700 | $ 11,700 | 16,100 | ||||||||
Equity Method Investment, Ownership Percentage | 27.00% | 27.00% | 27.00% | |||||||||
Equity in earnings of unconsolidated affiliates, net of tax | $ (600) | $ (500) | $ (2,900) | $ (1,500) | ||||||||
Notes Receivable, Related Parties, Borrowing Capacity | $ 15,000 | |||||||||||
Notes receivable, affiliates - noncurrent | $ 15,000 | $ 15,000 | $ 15,000 | $ 15,000 | ||||||||
Convertible Notes Receivable, Related Parties, Borrowing Capacity | $ 4,600 | |||||||||||
Convertible Notes Receivable Interest Rate | 10.00% | |||||||||||
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% |
11. Percentage-of-Completion 53
11. Percentage-of-Completion Changes in Estimates (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)Projects | Sep. 30, 2015USD ($)Projects | Sep. 30, 2016USD ($)Projects | Sep. 30, 2015USD ($)Projects | |
Changes in Estimates for Systems Business [Abstract] | ||||
Project Change in Estimate Disclosure Threshold | $ 1,000 | |||
Number of projects | Projects | 7 | 5 | 8 | 8 |
Increase in gross profit resulting from net change in estimate (in thousands) | $ 25,557 | $ 10,521 | $ 68,687 | $ 51,133 |
Net change in estimate as a percentage of aggregate gross profit for associated projects | 3.30% | 2.00% | 7.50% | 3.00% |
12. Debt (Details)
12. Debt (Details) $ in Thousands, ₨ in Billions, ¥ in Billions | 1 Months Ended | 9 Months Ended | ||||||||
Jun. 30, 2016USD ($) | Apr. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016INR (₨) | Dec. 31, 2015USD ($) | Sep. 30, 2015JPY (¥) | Jun. 30, 2015USD ($) | Jun. 30, 2015INR (₨) | Aug. 31, 2014USD ($) | |
Long-term Debt [Abstract] | ||||||||||
Long-term debt, gross | $ 796,148 | $ 300,392 | ||||||||
Less unamortized discount and issuance costs | (8,991) | (10,977) | ||||||||
Total long-term debt | 787,157 | 289,415 | ||||||||
Less current portion | (626,026) | (38,090) | ||||||||
Noncurrent portion | 161,131 | 251,325 | ||||||||
Repayment of long-term debt | 86,250 | $ 42,332 | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Remainder of Fiscal Year | 550,161 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 76,474 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 4,808 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 5,782 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 11,927 | |||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 146,305 | |||||||||
Total long-term debt future principal payments | $ 795,457 | |||||||||
Revolving Credit Facility [Member] | ||||||||||
Long-term Debt [Abstract] | ||||||||||
Debt Instrument, Maturity Date, Description | July 2,018 | |||||||||
Debt Instrument, Currency | USD | |||||||||
Revolving credit facility | $ 550,000 | 0 | ||||||||
Line of Credit Facility, Current Borrowing Capacity | 700,000 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 900,000 | |||||||||
Letters of Credit Outstanding, Amount | 128,600 | 191,600 | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 21,400 | 508,400 | ||||||||
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 | $ 245,457 | 218,183 | ||||||||
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 | $ 406,300 | |||||||||
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] | OPIC [Member] | ||||||||||
Long-term Debt [Abstract] | ||||||||||
Long-term debt, gross | $ 125,100 | 125,100 | ||||||||
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 | 42,200 | ||||||||
Line of Credit Facility, Current Borrowing Capacity | 60,000 | |||||||||
Project Construction Credit Facilities [Member] | Banco de Credito e Inversiones [Member] | ||||||||||
Long-term Debt [Abstract] | ||||||||||
Long-term debt, gross | 58,600 | 40,400 | ||||||||
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 | $ 15,300 | 5,300 | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 39,400 | ¥ 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] | ||||||||||
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] | Axis Bank [Member] | Marikal Solar Parks Private Limited and Mahabubnagar Solar Parks Private Limited [Member] | ||||||||||
Long-term Debt [Abstract] | ||||||||||
Long-term debt, gross | $ 4,300 | 5,200 | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 16,500 | ₨ 1.1 | ||||||||
Letters of Credit Outstanding, Amount | 11,200 | ₨ 0.8 | ||||||||
Debt Instrument, Collateral Amount | 85,200 | |||||||||
Line of Credit Facility, Letter of Credit Sub-Limit | $ 12,000 | ₨ 0.8 | ||||||||
Project Construction Credit Facilities [Member] | Axis Bank [Member] | Polepally Solar Parks Private Limited [Member] | ||||||||||
Long-term Debt [Abstract] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | 19,400 | 1.3 | ||||||||
Debt Instrument, Collateral Amount | 31,400 | |||||||||
Line of Credit Facility, Letter of Credit Sub-Limit | 16,500 | ₨ 1.1 | ||||||||
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 | $ 0 | 54,175 | ||||||||
Repayment of long-term debt | $ 47,300 | |||||||||
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 | $ 0 | 21,869 | ||||||||
Repayment of long-term debt | $ 22,700 | |||||||||
Malaysian Facility Agreement [Member] | ||||||||||
Long-term Debt [Abstract] | ||||||||||
Debt Instrument, Maturity Date, Description | March 2,016 | |||||||||
Debt Instrument, Currency | EUR | |||||||||
Long-term debt, gross | $ 0 | 5,100 | ||||||||
Capital Lease Obligations [Member] | ||||||||||
Long-term Debt [Abstract] | ||||||||||
Debt Instrument, Maturity Date, Description | Various | |||||||||
Debt Instrument, Currency | Various | |||||||||
Long-term debt, gross | $ 691 | $ 1,065 |
13. Commitments and Contingen55
13. Commitments and Contingencies (Details) - Commercial Commitments - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Bank Guarantees and Letters of Credit | $ 7.7 | |
Surety Bonds | 141.1 | |
Surety Bond Capacity | 639.2 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Letter of Credit Sub-Limit | 500 | |
Letters of Credit Outstanding, Amount | 128.6 | $ 191.6 |
Letters of Credit, Remaining Borrowing Capacity | 21.4 | |
Bilateral Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Letters of Credit Outstanding, Amount | 251.5 | |
Cash Collateral for Borrowed Securities | $ 30.3 |
13. Commitments and Contingen56
13. Commitments and Contingencies (Details) - Product Warranties - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Product warranty liability, beginning of period | $ 250,371 | $ 222,304 | $ 231,751 | $ 223,057 |
Accruals for new warranties issued | 6,158 | 16,700 | 26,854 | 34,948 |
Settlements | (2,814) | (4,722) | (9,246) | (9,817) |
Changes in estimate of product warranty liability | 1,169 | (1,212) | 5,525 | (15,118) |
Product warranty liability, end of period | 254,884 | 233,070 | 254,884 | 233,070 |
Current portion of warranty liability | 37,552 | 48,311 | 37,552 | 48,311 |
Noncurrent portion of warranty liability | $ 217,332 | $ 184,759 | $ 217,332 | $ 184,759 |
Percentage Point Change in Estimated Rate of Return of Module Warranty | 1.00% | 1.00% | ||
Estimated Change in Module Warranty from Sensitivity Analysis | $ 84,600 | $ 84,600 | ||
Percentage Point Change in Estimated Rate of Return of Balance of Systems Warranty | 1.00% | 1.00% | ||
Minimum [Member] | ||||
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Estimated Rate of Return for Module Warranty | 1.00% | 1.00% | ||
Maximum [Member] | ||||
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Estimated Rate of Return for Module Warranty | 3.00% | 3.00% |
13. Commitments and Contingen57
13. Commitments and Contingencies (Details) - Accrued Expenses in Excess of Product Warranty - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | ||
Total Product Warranty Accrual in Excess of Normal Product Warranty Liability | $ 19,200 | $ 24,600 |
Product Warranty Accrual in Excess of Normal Product Warranty Current Liability | 3,977 | 5,040 |
Product Warranty Accrual in Excess of Normal Product Warranty Noncurrent Liability | $ 15,174 | $ 19,565 |
13. Commitments and Contingen58
13. Commitments and Contingencies (Details) - Performance Guarantees - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | ||
Energy Performance Testing Liability | $ 5.7 | $ 0.3 |
13. Commitments and Contingen59
13. Commitments and Contingencies (Details) - Contingent Consideration - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Business Acquisition, Contingent Consideration [Line Items] | |||
Project Acquisition, Contingent Consideration Liability, Current | $ 17 | $ 6.7 | |
Project Acquisition, Contingent Consideration Liability, Noncurrent | $ 7 | 3.9 | |
TetraSun [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ (7.4) | ||
Business Combination, Contingent Consideration Liability, Current | 2.5 | ||
Business Combination, Contingent Consideration Liability, Noncurrent | $ 4.9 |
13. Commitments and Contingen60
13. Commitments and Contingencies (Details) - Solar Module Collection and Recycling Liability - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Increase (Decrease) in accrued solar module collection and recycling liability | $ (80,000) | $ 5,536 | $ (78,990) | |
Accrued solar module collection and recycling liability | $ 169,679 | $ 163,407 | ||
Percentage increase in annualized inflation rate | 1.00% | |||
Estimated Increase in Solar Module Collection Recycling Liability from Sensitivity Analysis | $ 38,300 | |||
Percentage decrease in annualized inflation rate | 1.00% | |||
Estimated Decrease in Solar Module Collection Recycling Liability from Sensitivity Analysis | $ 31,500 |
14. Share-Based Compensation (D
14. Share-Based Compensation (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Allocated Share-based Compensation Expense | $ 5,896 | $ 12,213 | $ 24,467 | $ 33,146 | ||
Allocated Share-based Compensation Expense, Gross | 5,736 | 11,369 | 24,298 | 31,472 | ||
Net amount (absorbed into) released from inventory | 160 | 844 | 169 | 1,674 | ||
Employee service share-based compensation, capitalized in inventory | $ 3,200 | $ 3,200 | $ 3,200 | $ 3,400 | ||
Employee service share-based compensation, forfeiture rate | 9.50% | 9.50% | 9.50% | 9.50% | ||
Restricted and performance stock units [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Allocated Share-based Compensation Expense | $ 4,939 | 10,579 | $ 21,969 | 29,350 | ||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized | $ 28,600 | 28,600 | 28,600 | |||
Employee service share-based compensation, unrecognized compensation costs on nonvested awards, weighted average period of recognition (in years) | 1 year 5 months | |||||
Unrestricted stock [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Allocated Share-based Compensation Expense | 420 | 332 | 1,258 | 995 | ||
Stock purchase plan [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Allocated Share-based Compensation Expense | 377 | 458 | 1,071 | 1,127 | ||
Cost of sales [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Allocated Share-based Compensation Expense | 1,612 | 3,048 | 6,255 | 8,539 | ||
Research and development [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Allocated Share-based Compensation Expense | 849 | 997 | 2,704 | 3,099 | ||
Selling, general and administrative [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Allocated Share-based Compensation Expense | 3,435 | 8,164 | 15,508 | 21,483 | ||
Production start-up [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Allocated Share-based Compensation Expense | $ 0 | $ 4 | $ 0 | $ 25 |
15. Income Taxes (Details)
15. Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Examination [Line Items] | |||
Effective income tax rate | (2.50%) | 2.30% | |
Statutory U.S. federal tax rate | 35.00% | ||
Unrecognized tax benefits, reduction resulting from lapse of applicable statute of limitations | $ 12.8 | ||
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit | 11 | $ 11 | |
Foreign Tax Authority [Member] | |||
Income Tax Examination [Line Items] | |||
Tax adjustments, settlements, and unusual provisions | $ 35.4 | $ 30.3 | |
Tax Authority, Spain [Member] | |||
Income Tax Examination [Line Items] | |||
Tax adjustments, settlements, and unusual provisions | $ (3) |
16. Net Income Per Share (Detai
16. Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 154,146 | $ 349,318 | $ 338,119 | $ 382,286 |
Weighted-average common shares outstanding | 103,339 | 100,906 | 102,496 | 100,713 |
Effect of restricted and performance stock units and stock purchase plan shares | 394 | 1,393 | 566 | 1,132 |
Weighted-average shares used in computing diluted net income per share | 103,733 | 102,299 | 103,062 | 101,845 |
Net income per share, basic | $ 1.49 | $ 3.46 | $ 3.30 | $ 3.80 |
Net income per share, diluted | $ 1.49 | $ 3.41 | $ 3.28 | $ 3.75 |
Anti-dilutive shares | 411 | 46 | 282 | 64 |
17. Comprehensive Income (Los64
17. Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 154,146 | $ 349,318 | $ 338,119 | $ 382,286 | ||
Foreign currency translation adjustments | 1,418 | (1,103) | 4,635 | (14,001) | ||
Unrealized gain (loss) on marketable securities and restricted investments for the period, net of tax | (7,656) | 17,944 | 62,841 | (4,409) | ||
Less: reclassification for gains included in net income (loss), net of tax | (261) | 0 | (35,162) | 0 | ||
Unrealized gain on marketable securities and restricted investments | (7,917) | 17,944 | 27,679 | (4,409) | ||
Unrealized gain (loss) on derivative instruments for the period, net of tax | (276) | (7,360) | 5,143 | (10,832) | ||
Less: reclassification for (gains) losses included in net income (loss), net of tax | 0 | 6,022 | (3,073) | 7,593 | ||
Unrealized gain (loss) on derivative instruments | (276) | (1,338) | 2,070 | (3,239) | ||
Other comprehensive income, net of tax | (6,775) | 15,503 | 34,384 | (21,649) | ||
Comprehensive income (loss) | 147,371 | 364,821 | 372,503 | 360,637 | ||
Accumulated other comprehensive income | 49,864 | 28,491 | 49,864 | 28,491 | $ 15,480 | $ 50,140 |
Other comprehensive (loss) income, before reclassifications | 72,619 | (29,242) | ||||
Amounts reclassified from accumulated other comprehensive income | (38,235) | 7,593 | ||||
Other income (expense), net | 6,419 | (1,678) | 48,725 | (3,729) | ||
Net sales | 688,029 | 1,271,245 | 2,470,894 | 2,636,671 | ||
Cost of sales | 501,749 | 786,880 | 1,830,504 | 1,948,842 | ||
Foreign currency loss, net | (2,296) | (1,803) | (8,259) | (4,981) | ||
Interest expense, net | 5,563 | 1,775 | 17,356 | 2,795 | ||
Total before tax | 93,150 | 397,887 | 304,761 | 389,780 | ||
Tax expense | (50,522) | 48,454 | (7,711) | 9,134 | ||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | (309) | 1,336 | 4,128 | (450) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | 36 | 0 | 2,940 | 0 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (59) | (18) | 56 | 182 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax | 0 | 765 | 0 | 2,278 | ||
Accumulated Translation Adjustment [Member] | ||||||
Other comprehensive income, net of tax | 4,635 | (14,001) | ||||
Accumulated other comprehensive income | (65,134) | (67,338) | (65,134) | (67,338) | (69,769) | (53,337) |
Other comprehensive (loss) income, before reclassifications | 4,635 | (14,001) | ||||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | ||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||
Other comprehensive income, net of tax | 27,679 | (4,409) | ||||
Accumulated other comprehensive income | 114,563 | 97,890 | 114,563 | 97,890 | 86,884 | 102,299 |
Other comprehensive (loss) income, before reclassifications | 62,841 | (4,409) | ||||
Amounts reclassified from accumulated other comprehensive income | (35,162) | 0 | ||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||||
Other comprehensive income, net of tax | 2,070 | (3,239) | ||||
Accumulated other comprehensive income | $ 435 | $ (2,061) | 435 | (2,061) | $ (1,635) | $ 1,178 |
Other comprehensive (loss) income, before reclassifications | 5,143 | (10,832) | ||||
Amounts reclassified from accumulated other comprehensive income | (3,073) | 7,593 | ||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||
Net income | 35,162 | 0 | ||||
Other income (expense), net | 38,102 | 0 | ||||
Tax expense | (2,940) | 0 | ||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||||
Net income | 3,073 | (7,593) | ||||
Net sales | 0 | 1,782 | ||||
Cost of sales | 0 | 5,509 | ||||
Foreign currency loss, net | 4,896 | (12,126) | ||||
Interest expense, net | (1,823) | (480) | ||||
Total before tax | 3,073 | (5,315) | ||||
Tax expense | $ 0 | $ (2,278) |
18. Segment Reporting (Details)
18. Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)segments | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | segments | 2 | |||||
Net sales | $ 688,029 | $ 1,271,245 | $ 2,470,894 | $ 2,636,671 | ||
Gross profit | 186,280 | 484,365 | 640,390 | 687,829 | ||
Depreciation and amortization expense | 58,053 | 64,985 | 173,468 | 193,560 | ||
Income before income taxes | 93,150 | 397,887 | 304,761 | 389,780 | ||
Goodwill | 78,888 | 78,888 | $ 84,985 | |||
Total assets | 8,087,660 | 8,087,660 | 7,316,331 | |||
Restructuring charges | 4,314 | 0 | 89,846 | 0 | ||
Increase (decrease) in solar module collection and recycling liability | 80,000 | 80,000 | ||||
Solar module revenue [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 213,045 | 60,836 | 425,776 | 180,792 | ||
Solar power system revenue [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 474,984 | 1,210,409 | 2,045,118 | 2,455,879 | ||
Crystalline Silicon Components Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill | 6,097 | 6,097 | 6,097 | |||
Restructuring charges | 1,400 | $ 84,600 | 86,000 | |||
Components Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 427,812 | 441,530 | 1,167,721 | 988,591 | ||
Gross profit | 138,676 | 165,997 | 329,803 | 243,222 | ||
Depreciation and amortization expense | 52,204 | 61,508 | 160,770 | 183,286 | ||
Income before income taxes | 109,217 | 137,878 | 183,831 | 116,877 | ||
Goodwill | 10,055 | 10,055 | 16,152 | |||
Total assets | 4,817,929 | 4,817,929 | 4,037,955 | |||
Systems Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 260,217 | 829,715 | 1,303,173 | 1,648,080 | ||
Gross profit | 47,604 | 318,368 | 310,587 | 444,607 | ||
Depreciation and amortization expense | 5,849 | 3,477 | 12,698 | 10,274 | ||
Income before income taxes | (16,067) | $ 260,009 | 120,930 | $ 272,903 | ||
Goodwill | 68,833 | 68,833 | 68,833 | |||
Total assets | $ 3,269,731 | $ 3,269,731 | $ 3,278,376 |