Document
Document - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 23, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-33156 | |
Entity Registrant Name | First Solar, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-4623678 | |
Entity Address, Address Line One | 350 West Washington Street, Suite 600 | |
Entity Address, City or Town | Tempe | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85281 | |
City Area Code | 602 | |
Local Phone Number | 414-9300 | |
Title of 12(b) Security | Common stock, $0.001 par value | |
Trading Symbol | FSLR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 105,976,169 | |
Entity Central Index Key | 0001274494 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net sales | $ 927,565 | $ 546,806 | $ 2,102,100 | $ 1,663,740 |
Cost of sales | 634,550 | 408,443 | 1,581,287 | 1,448,083 |
Gross profit | 293,015 | 138,363 | 520,813 | 215,657 |
Operating expenses: | ||||
Selling, general and administrative | 49,861 | 53,542 | 160,218 | 149,828 |
Research and development | 22,972 | 24,912 | 71,068 | 71,184 |
Production start-up | 13,019 | 18,605 | 23,812 | 38,564 |
Litigation loss | 0 | 0 | 6,000 | 0 |
Total operating expenses | 85,852 | 97,059 | 261,098 | 259,576 |
Operating income (loss) | 207,163 | 41,304 | 259,715 | (43,919) |
Foreign currency (loss) income, net | (1,852) | 1,209 | (3,549) | 3,107 |
Interest income | 2,109 | 11,454 | 15,113 | 39,223 |
Interest expense, net | (10,975) | (4,976) | (21,018) | (24,018) |
Other expense, net | (3,236) | (3,399) | (8,653) | (4,328) |
Income (loss) before taxes and equity in earnings | 193,209 | 45,592 | 241,608 | (29,935) |
Income tax (expense) benefit | (38,107) | (15,035) | 40,894 | (25,385) |
Equity in earnings, net of tax | (65) | 65 | 150 | (205) |
Net income (loss) | $ 155,037 | $ 30,622 | $ 282,652 | $ (55,525) |
Net income (loss) per share: | ||||
Basic | $ 1.46 | $ 0.29 | $ 2.67 | $ (0.53) |
Diluted | $ 1.45 | $ 0.29 | $ 2.65 | $ (0.53) |
Weighted-average number of shares used in per share calculations: | ||||
Basic | 105,967 | 105,397 | 105,830 | 105,272 |
Diluted | 106,751 | 106,227 | 106,537 | 105,272 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net income (loss) | $ 155,037 | $ 30,622 | $ 282,652 | $ (55,525) |
Other comprehensive income: | ||||
Foreign currency translation adjustments | 3,242 | (6,570) | 552 | (6,245) |
Unrealized gain on marketable securities and restricted marketable securities, net of tax of $(236), $(376), $(822), and $184 | 6,148 | 13,258 | 20,826 | 21,816 |
Unrealized (loss) gain on derivative instruments, net of tax of $55, $98, $(31), and $429 | (1,827) | 714 | (1,741) | (623) |
Other comprehensive income | 7,563 | 7,402 | 19,637 | 14,948 |
Comprehensive income (loss) | 162,600 | 38,024 | 302,289 | (40,577) |
Unrealized gain on marketable securities and restricted marketable securities, tax | (236) | (376) | (822) | 184 |
Unrealized (loss) gain on derivative instruments, tax | $ 55 | $ 98 | $ (31) | $ 429 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,277,054 | $ 1,352,741 |
Marketable securities (amortized cost of $353,413 and allowance for credit losses of $48 at September 30, 2020) | 353,819 | 811,506 |
Accounts receivable trade | 221,196 | 476,425 |
Accounts Receivable, Allowance for Credit Loss | (2,413) | (1,386) |
Accounts receivable trade, net | 218,783 | 475,039 |
Accounts receivable, unbilled and retainage | 89,368 | 183,473 |
Accounts receivable, unbilled and retainage, allowance for credit losses | (919) | 0 |
Accounts receivable, unbilled and retainage, net | 88,449 | 183,473 |
Inventories | 567,785 | 443,513 |
Balance of systems parts | 34,280 | 53,583 |
Project assets | 1,222 | 3,524 |
Assets held for sale | 35,009 | 0 |
Prepaid expenses and other current assets | 224,092 | 276,455 |
Total current assets | 2,800,493 | 3,599,834 |
Property, plant and equipment, net | 2,386,591 | 2,181,149 |
PV solar power systems, net | 257,400 | 476,977 |
Project assets | 362,777 | 333,596 |
Deferred tax assets, net | 210,340 | 130,771 |
Restricted marketable securities (amortized cost $245,351 and allowance for credit losses of $0 at September 30, 2020) | 261,507 | 223,785 |
Goodwill | 14,462 | 14,462 |
Intangibles assets, net | 58,469 | 64,543 |
Inventories | 197,520 | 160,646 |
Other assets | 435,658 | 329,926 |
Total assets | 6,985,217 | 7,515,689 |
Current liabilities: | ||
Accounts payable | 153,925 | 218,081 |
Income taxes payable | 32,172 | 17,010 |
Accrued expenses | 298,133 | 351,260 |
Current portion of long-term debt | 40,412 | 17,510 |
Deferred revenue | 115,592 | 323,217 |
Accrued litigation | 0 | 363,000 |
Liabilities held for sale | 12,721 | 0 |
Other current liabilities | 78,136 | 28,130 |
Total current liabilities | 731,091 | 1,318,208 |
Accrued solar module collection and recycling liability | 125,594 | 137,761 |
Long-term debt | 220,456 | 454,187 |
Other liabilities | 511,963 | 508,766 |
Total liabilities | 1,589,104 | 2,418,922 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 105,974,984 and 105,448,921 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 106 | 105 |
Additional paid-in capital | 2,855,645 | 2,849,376 |
Accumulated earnings | 2,600,059 | 2,326,620 |
Accumulated other comprehensive loss | (59,697) | (79,334) |
Total stockholders' equity | 5,396,113 | 5,096,767 |
Total liabilities and stockholders' equity | $ 6,985,217 | $ 7,515,689 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
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 | 105,974,984 | 105,448,921 |
Common Stock, Shares Outstanding | 105,974,984 | 105,448,921 |
Marketable securities, Amortized Cost | $ 353,413 | $ 811,277 |
Marketable Securities, Allowance for Credit Loss | 48 | 0 |
Restricted Debt Securities [Member] | ||
Marketable securities, Amortized Cost | 245,351 | 229,199 |
Marketable Securities, Allowance for Credit Loss | $ 0 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity Statement - USD ($) $ in Thousands | Total | Cumulative effect adjustment for the adoption of ASU 2016-13 | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Earnings [Member] | Accumulated Earnings [Member]Cumulative effect adjustment for the adoption of ASU 2016-13 | Accumulated Other Comprehensive (Loss) Income [Member] |
Common stock, shares, beginning balance at Dec. 31, 2018 | 104,885,000 | ||||||
Stockholders' equity, beginning balance at Dec. 31, 2018 | $ 5,212,403 | $ 105 | $ 2,825,211 | $ 2,441,553 | $ (54,466) | ||
Net income (loss) | (55,525) | (55,525) | |||||
Other comprehensive income | 14,948 | 14,948 | |||||
Common stock issued for share-based compensation, shares | 826,000 | ||||||
Common stock issued for share-based compensation | 1,673 | $ 1 | 1,672 | ||||
Tax withholding related to vesting of restricted stock, shares | (305,000) | ||||||
Tax withholding related to vesting of restricted stock | (16,071) | $ (1) | (16,070) | ||||
Share-based compensation expense | 25,055 | 25,055 | |||||
Common stock, shares, ending balance at Sep. 30, 2019 | 105,406,000 | ||||||
Stockholders' equity, ending balance at Sep. 30, 2019 | 5,182,483 | $ 105 | 2,835,868 | 2,386,028 | (39,518) | ||
Common stock, shares, beginning balance at Jun. 30, 2019 | 105,390,000 | ||||||
Stockholders' equity, beginning balance at Jun. 30, 2019 | 5,135,124 | $ 105 | 2,826,533 | 2,355,406 | (46,920) | ||
Net income (loss) | 30,622 | 30,622 | |||||
Other comprehensive income | 7,402 | 7,402 | |||||
Common stock issued for share-based compensation, shares | 21,000 | ||||||
Common stock issued for share-based compensation | 0 | $ 0 | 0 | ||||
Tax withholding related to vesting of restricted stock, shares | (5,000) | ||||||
Tax withholding related to vesting of restricted stock | (339) | $ 0 | (339) | ||||
Share-based compensation expense | 9,674 | 9,674 | |||||
Common stock, shares, ending balance at Sep. 30, 2019 | 105,406,000 | ||||||
Stockholders' equity, ending balance at Sep. 30, 2019 | $ 5,182,483 | $ 105 | 2,835,868 | 2,386,028 | (39,518) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | Accounting Standards Update 2016-13 | $ (9,213) | $ (9,213) | |||||
Common stock, shares, beginning balance at Dec. 31, 2019 | 105,448,921 | 105,449,000 | |||||
Stockholders' equity, beginning balance at Dec. 31, 2019 | $ 5,096,767 | $ 105 | 2,849,376 | 2,326,620 | (79,334) | ||
Net income (loss) | 282,652 | 282,652 | |||||
Other comprehensive income | 19,637 | 19,637 | |||||
Common stock issued for share-based compensation, shares | 808,000 | ||||||
Common stock issued for share-based compensation | 1,363 | $ 1 | 1,362 | ||||
Tax withholding related to vesting of restricted stock, shares | (282,000) | ||||||
Tax withholding related to vesting of restricted stock | (13,053) | $ 0 | (13,053) | ||||
Share-based compensation expense | $ 17,960 | 17,960 | |||||
Common stock, shares, ending balance at Sep. 30, 2020 | 105,974,984 | 105,975,000 | |||||
Stockholders' equity, ending balance at Sep. 30, 2020 | $ 5,396,113 | $ 106 | 2,855,645 | 2,600,059 | (59,697) | ||
Common stock, shares, beginning balance at Jun. 30, 2020 | 105,961,000 | ||||||
Stockholders' equity, beginning balance at Jun. 30, 2020 | 5,226,796 | $ 106 | 2,848,928 | 2,445,022 | (67,260) | ||
Net income (loss) | 155,037 | 155,037 | |||||
Other comprehensive income | 7,563 | 7,563 | |||||
Common stock issued for share-based compensation, shares | 19,000 | ||||||
Common stock issued for share-based compensation | 0 | $ 0 | 0 | ||||
Tax withholding related to vesting of restricted stock, shares | (5,000) | ||||||
Tax withholding related to vesting of restricted stock | (289) | $ 0 | (289) | ||||
Share-based compensation expense | $ 7,006 | 7,006 | |||||
Common stock, shares, ending balance at Sep. 30, 2020 | 105,974,984 | 105,975,000 | |||||
Stockholders' equity, ending balance at Sep. 30, 2020 | $ 5,396,113 | $ 106 | $ 2,855,645 | $ 2,600,059 | $ (59,697) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 282,652 | $ (55,525) |
Adjustments to reconcile net income (loss) to cash used in operating activities: | ||
Depreciation, amortization and accretion | 173,277 | 149,970 |
Impairments and net losses on disposal of long-lived assets | 24,600 | 6,155 |
Share-based compensation | 18,189 | 25,408 |
Equity in earnings, net of tax | (150) | 205 |
Remeasurement of monetary assets and liabilities | 700 | 2,097 |
Deferred income taxes | (77,970) | 11,678 |
Gains on sales of marketable securities and restricted marketable securities | (15,346) | (15,016) |
Liabilities assumed by customers for the sale of systems | (136,745) | (88,050) |
Other, net | 15,739 | 925 |
Changes in operating assets and liabilities: | ||
Accounts receivable, trade, unbilled and retainage | 330,090 | 51,803 |
Prepaid expenses and other current assets | 8,467 | (29,311) |
Inventories and balance of systems parts | (142,017) | (223,756) |
Project assets and PV solar power systems | 183,163 | (253,260) |
Other assets | (30,804) | 18,326 |
Income tax receivable and payable | 9,160 | (24,585) |
Accounts payable | (58,311) | (532) |
Accrued expenses and other liabilities | (720,756) | (185,489) |
Accrued solar module collection and recycling liability | (13,136) | 1,465 |
Net cash used in operating activities | (149,198) | (607,492) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (327,284) | (510,571) |
Purchases of marketable securities and restricted marketable securities | (642,993) | (668,052) |
Proceeds from sales and maturities of marketable securities and restricted marketable securities | 1,100,176 | 1,120,961 |
Other investing activities | (13,577) | 3,027 |
Net cash provided by (used in) investing activities | 116,322 | (54,635) |
Cash flows from financing activities: | ||
Repayment of long-term debt | (224,643) | (10,583) |
Proceeds from borrowings under long-term debt, net of discounts and issuance costs | 140,304 | 107,396 |
Payments of tax withholdings for restricted shares | (13,053) | (16,070) |
Other financing activities | (804) | 999 |
Net cash (used in) provided by financing activities | (98,196) | 81,742 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,251 | (6,732) |
Net decrease in cash, cash equivalents and restricted cash | (129,821) | (587,117) |
Cash, cash equivalents and restricted cash, beginning of the period | 1,446,510 | 1,562,623 |
Cash, cash equivalents and restricted cash, end of the period | 1,316,689 | 975,506 |
Supplemental disclosure of noncash investing and financing activities: | ||
Property, plant and equipment acquisitions funded by liabilities | $ 129,384 | $ 111,791 |
1. Basis of Presentation
1. Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
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 in this Quarterly Report have been prepared in accordance with generally accepted accounting principles 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. Certain prior period balances have been reclassified to conform to the current period presentation. 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 the financial statements and accompanying notes. Despite our intention to establish accurate estimates and reasonable assumptions, actual results could differ materially from such estimates and assumptions. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or for any other period. The condensed consolidated balance sheet at December 31, 2019 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, 2019 included in our Annual Report on Form 10-K, which has been filed with the SEC. Unless expressly stated or the context otherwise requires, the terms “the Company,” “we,” “us,” “our,” and “First Solar” refer to First Solar, Inc. and its consolidated subsidiaries, and the term “condensed consolidated financial statements” refers to the accompanying unaudited condensed consolidated financial statements contained in this Quarterly Report. |
2. Recent Accounting Pronouncem
2. Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“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 replaces the historical incurred loss model with a model that reflects current expected credit losses (“CECL”), which requires consideration of a broader range of information to measure credit losses and determine the timing of when such losses are recorded. The CECL model is applicable to certain financial assets measured at amortized cost that subject us to credit risk, including cash equivalents, trade accounts receivable, unbilled accounts receivable and retainage, and notes receivable. In addition, ASU 2016-13 amended certain aspects of the accounting for available-for-sale debt securities, including the presentation of credit losses as an allowance against, rather than a write-down of, the fair value of such securities. Furthermore, a credit loss is only considered when a security is in an unrealized loss position, is limited to the difference between such security’s fair value and amortized cost basis, and is recorded directly to “Other expense, net.” Any remaining unrealized loss is recorded to “Accumulated other comprehensive loss” until realized. We adopted ASU 2016-13 in the first quarter of 2020 using the modified-retrospective approach, which resulted in the recognition of an initial allowance for credit losses for our various financial assets through a cumulative-effect adjustment that decreased retained earnings by $9.2 million, net of tax, as of January 1, 2020. The allowance for credit losses is a valuation account that is deducted from a financial asset’s amortized cost to present the net amount we expect to collect from such asset. We estimate allowances for credit losses using relevant available information from both internal and external sources. We monitor the estimated credit losses associated with our trade accounts receivable and unbilled accounts receivable based primarily on our collection history and the delinquency status of amounts owed to us, which we determine based on the aging of such receivables. For our notes receivable, we determine estimated credit losses through an assessment of the borrower’s credit quality based primarily on quarterly reviews of certain financial information, including financial statements and forecasts. We estimate credit losses associated with our marketable securities and restricted marketable securities based on the external credit rating for such investments and the historical loss rates associated with such credit ratings, which we obtain from third parties. Such methods and estimates are adjusted, as appropriate, for relevant past events, current conditions, such as the COVID-19 pandemic and related containment measures, and reasonable and supportable forecasts. We recognize writeoffs within the allowance for credit losses when cash receipts associated with our financial assets are deemed uncollectible. See Note 3. “Cash, Cash Equivalents, and Marketable Securities,” Note 4. “Restricted Marketable Securities,” and Note 5. “Consolidated Balance Sheet Details” to our condensed consolidated financial statements for further information about the allowance for credit losses associated with our various financial assets. |
3. Cash, Cash Equivalents, and
3. Cash, Cash Equivalents, and Marketable Securities | 9 Months Ended |
Sep. 30, 2020 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Cash, Cash Equivalents, and Marketable Securities | 3. Cash, Cash Equivalents, and Marketable Securities Cash, cash equivalents, and marketable securities consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Cash and cash equivalents: Cash $ 1,276,662 $ 1,345,419 Money market funds 392 7,322 Total cash and cash equivalents 1,277,054 1,352,741 Marketable securities: Foreign debt 214,436 387,820 Foreign government obligations — 22,011 U.S. debt 14,561 66,134 Time deposits 124,822 335,541 Total marketable securities 353,819 811,506 Total cash, cash equivalents, and marketable securities $ 1,630,873 $ 2,164,247 The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within our condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019 to the total of such amounts as presented in the condensed consolidated statement of cash flows (in thousands): Balance Sheet Line Item September 30, December 31, Cash and cash equivalents Cash and cash equivalents $ 1,277,054 $ 1,352,741 Restricted cash – current Prepaid expenses and other current assets 1,516 13,697 Restricted cash – noncurrent Other assets 38,119 80,072 Total cash, cash equivalents, and restricted cash $ 1,316,689 $ 1,446,510 During the three and nine months ended September 30, 2020, we sold marketable securities for proceeds of $27.6 million and $188.1 million, respectively, and realized gains of less than $0.1 million and $0.2 million, respectively, on such sales. During the three and nine months ended September 30, 2019, we sold marketable securities for proceeds of $32.0 million and $52.0 million, respectively, and realized no gain or loss on the sale. See Note 8. “Fair Value Measurements” to our condensed consolidated financial statements for information about the fair value of our marketable 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, 2020 and December 31, 2019 (in thousands): As of September 30, 2020 Amortized Unrealized Unrealized Allowance for Credit Losses Fair Foreign debt $ 214,045 $ 467 $ 66 $ 10 $ 214,436 U.S. debt 14,508 53 — — 14,561 Time deposits 124,860 — — 38 124,822 Total $ 353,413 $ 520 $ 66 $ 48 $ 353,819 As of December 31, 2019 Amortized Unrealized Unrealized Fair Foreign debt $ 387,775 $ 551 $ 506 $ 387,820 Foreign government obligations 21,991 20 — 22,011 U.S. debt 65,970 176 12 66,134 Time deposits 335,541 — — 335,541 Total $ 811,277 $ 747 $ 518 $ 811,506 The following table presents the change in the allowance for credit losses related to our available-for-sale marketable securities for the nine months ended September 30, 2020 (in thousands): Marketable Securities Balance as of December 31, 2019 $ — Cumulative-effect adjustment for the adoption of ASU 2016-13 207 Provision for credit losses, net 215 Sales and maturities of marketable securities (374) Balance as of September 30, 2020 $ 48 The contractual maturities of our marketable securities as of September 30, 2020 were as follows (in thousands): Fair One year or less $ 197,152 One year to two years 150,639 Two years to three years 6,028 Total $ 353,819 |
4. Restricted Marketable Securi
4. Restricted Marketable Securities | 9 Months Ended |
Sep. 30, 2020 | |
Debt Securities, Available-for-sale, Restricted [Abstract] | |
Restricted marketable securities | 4. Restricted Marketable Securities Restricted marketable securities consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Foreign government obligations $ 141,728 $ 126,066 U.S. government obligations 119,779 97,719 Total restricted marketable securities $ 261,507 $ 223,785 Our restricted marketable securities represent long-term marketable securities held in custodial accounts to fund the estimated future costs of collecting and recycling modules covered under our solar module collection and recycling program. As of September 30, 2020 and December 31, 2019, such custodial accounts also included noncurrent restricted cash balances of $0.7 million and less than $0.1 million, respectively, which were reported within “Other assets.” As necessary, we fund any incremental amounts for our estimated collection and recycling obligations on an annual basis based on the estimated costs of collecting and recycling covered modules, estimated rates of return on our restricted marketable securities, and an estimated solar module life of 25 years, less amounts already funded in prior years. To ensure that amounts previously funded will be available in the future regardless of 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.; First Solar Malaysia Sdn. Bhd.; and First Solar Manufacturing GmbH are grantors. Trust funds may be disbursed for qualified module collection and recycling costs (including capital and facility related recycling costs), payments to customers for assuming collection and recycling obligations, and reimbursements of any overfunded amounts. Investments in the trust must meet certain investment quality criteria comparable to highly rated government or agency bonds. During the nine months ended September 30, 2020, we sold certain restricted marketable securities for proceeds of $115.2 million, realized gains of $15.1 million on such sales, and repurchased $114.5 million of restricted marketable securities as part of our ongoing management of the custodial accounts. During the nine months ended September 30, 2019, we sold certain restricted marketable securities for proceeds of $47.9 million and realized gains of $15.0 million on such sales as part of efforts to align the currencies of the investments with those of the corresponding collection and recycling liabilities and disbursed $14.9 million of overfunded amounts. See Note 8. “Fair Value Measurements” to our condensed consolidated financial statements for information about the fair value of our restricted marketable securities. The following tables summarize the unrealized gains and losses related to our restricted marketable securities, by major security type, as of September 30, 2020 and December 31, 2019 (in thousands): As of September 30, 2020 Amortized Unrealized Unrealized Allowance for Credit Losses Fair Foreign government obligations $ 130,002 $ 11,726 $ — $ — $ 141,728 U.S. government obligations 115,349 4,430 — — 119,779 Total $ 245,351 $ 16,156 $ — $ — $ 261,507 As of December 31, 2019 Amortized Unrealized Unrealized Fair Foreign government obligations $ 129,499 $ — $ 3,433 $ 126,066 U.S. government obligations 99,700 — 1,981 97,719 Total $ 229,199 $ — $ 5,414 $ 223,785 The following table presents the change in the allowance for credit losses related to our restricted marketable securities for the nine months ended September 30, 2020 (in thousands): Restricted Marketable Securities Balance as of December 31, 2019 $ — Cumulative-effect adjustment for the adoption of ASU 2016-13 54 Provision for credit losses, net (29) Sales of restricted marketable securities (25) Balance as of September 30, 2020 $ — As of September 30, 2020, the contractual maturities of our restricted marketable securities were between 9 years and 21 years. |
5. Consolidated Balance Sheet D
5. Consolidated Balance Sheet Details | 9 Months Ended |
Sep. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Consolidated Balance Sheet Details | 5. Consolidated Balance Sheet Details Accounts receivable trade, net Accounts receivable trade, net consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Accounts receivable trade, gross $ 221,196 $ 476,425 Allowance for credit losses (2,413) (1,386) Accounts receivable trade, net $ 218,783 $ 475,039 At September 30, 2020 and December 31, 2019, $25.0 million and $44.9 million, respectively, of our trade accounts receivable were secured by letters of credit, bank guarantees, surety bonds, or other forms of financial security issued by creditworthy financial institutions. Accounts receivable, unbilled and retainage, net Accounts receivable, unbilled and retainage, net consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Accounts receivable, unbilled $ 78,001 $ 162,057 Retainage 11,367 21,416 Allowance for credit losses (919) — Accounts receivable, unbilled and retainage, net $ 88,449 $ 183,473 Allowance for credit losses The following table presents the change in the allowances for credit losses related to our accounts receivable for the nine months ended September 30, 2020 (in thousands): Accounts Receivable Trade Accounts Receivable, Unbilled and Retainage Balance as of December 31, 2019 $ (1,386) $ — Cumulative-effect adjustment for the adoption of ASU 2016-13 (171) (459) Provision for credit losses, net (1) (1,421) (635) Writeoffs 565 175 Balance as of September 30, 2020 $ (2,413) $ (919) —————————— (1) Includes credit losses for trade accounts receivable and unbilled accounts receivable of $1.8 million and $0.7 million, respectively, to reflect our estimate of expected credit losses attributable to the current economic conditions resulting from the ongoing COVID-19 pandemic. Inventories Inventories consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Raw materials $ 275,309 $ 248,756 Work in process 67,273 59,924 Finished goods 422,723 295,479 Inventories $ 765,305 $ 604,159 Inventories – current $ 567,785 $ 443,513 Inventories – noncurrent $ 197,520 $ 160,646 Prepaid expenses and other current assets Prepaid expenses and other current assets consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Prepaid expenses $ 153,772 $ 137,927 Prepaid income taxes 50,173 47,811 Indirect tax receivables 3,238 29,908 Restricted cash 1,516 13,697 Derivative instruments (1) 1,320 1,199 Notes receivable, net (2) — 23,873 Other current assets 14,073 22,040 Prepaid expenses and other current assets $ 224,092 $ 276,455 —————————— (1) See Note 6. “Derivative Financial Instruments” to our condensed consolidated financial statements for discussion of our derivative instruments. (2) In November 2014 and February 2016, we entered into a term loan agreement and a convertible loan agreement, respectively, with Clean Energy Collective, LLC (“CEC”). Our term loan bears interest at 16% per annum, and our convertible loan bears interest at 10% per annum. In November 2018, we amended the terms of the loan agreements to (i) extend their maturity to June 2020, (ii) waive the conversion features on our convertible loan, and (iii) increase the frequency of interest payments, subject to certain conditions. We assess CEC’s credit quality based primarily on certain quarterly financial information, which was last provided during the three months ended September 30, 2020. As of December 31, 2019, the aggregate balance outstanding on the loans was $23.9 million. Upon the adoption of ASU 2016-13, we evaluated the estimated credit losses over the remaining contractual term of the loan agreements based on a discounted cash flow model. As a result of this evaluation, we recorded an allowance for credit losses of $10.8 million as of January 1, 2020. During the nine months ended September 30, 2020, we recorded incremental credit losses of $13.1 million due to CEC’s inability to repay the loans by their contractual maturity date. In September 2020, we wrote off the aggregate outstanding loan balance against the associated allowance for credit losses based on our determination that the loans are uncollectible. Property, plant and equipment, net Property, plant and equipment, net consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Land $ 14,363 $ 14,241 Buildings and improvements 666,637 664,266 Machinery and equipment 2,101,726 2,436,997 Office equipment and furniture 143,242 159,848 Leasehold improvements 43,795 48,772 Construction in progress 467,513 243,107 Property, plant and equipment, gross 3,437,276 3,567,231 Accumulated depreciation (1,050,685) (1,386,082) Property, plant and equipment, net $ 2,386,591 $ 2,181,149 We assess our property, plant and equipment for impairment whenever events or changes in circumstances arise that may indicate that the carrying amount of such assets may not be recoverable. We consider a long-lived asset to be abandoned after we have ceased use of the asset and we have no intent to use or repurpose it in the future, and such abandoned assets are recorded at their salvage value, if any. During the three months ended September 30, 2020, we recorded an impairment loss of $17.4 million in “Cost of sales” for certain abandoned module manufacturing equipment, including framing and assembly tools, as such equipment was no longer compatible with our long-term module technology roadmap. Depreciation of property, plant and equipment was $49.7 million and $145.5 million for the three and nine months ended September 30, 2020, respectively, and $42.8 million and $129.4 million for the three and nine months ended September 30, 2019, respectively. PV solar power systems, net Photovoltaic (“PV”) solar power systems, net consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, PV solar power systems, gross $ 313,048 $ 530,004 Accumulated depreciation (55,648) (53,027) PV solar power systems, net $ 257,400 $ 476,977 Depreciation of PV solar power systems was $4.8 million and $16.4 million for the three and nine months ended September 30, 2020, respectively, and $5.9 million and $12.9 million for the three and nine months ended September 30, 2019, respectively. Project assets Project assets consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Project assets – development costs, including project acquisition and land costs $ 232,116 $ 254,466 Project assets – construction costs 131,883 82,654 Project assets $ 363,999 $ 337,120 Project assets – current $ 1,222 $ 3,524 Project assets – noncurrent $ 362,777 $ 333,596 Capitalized interest The components of interest expense and capitalized interest were as follows during the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Interest cost incurred $ (11,672) $ (5,239) $ (22,362) $ (26,348) Interest cost capitalized – project assets 697 263 1,344 2,330 Interest expense, net $ (10,975) $ (4,976) $ (21,018) $ (24,018) Other assets Other assets consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Operating lease assets (1) $ 223,554 $ 145,711 Advanced payments for raw materials 98,733 59,806 Restricted cash 38,119 80,072 Indirect tax receivables 12,154 9,446 Notes receivable (2) 8,556 8,194 Income taxes receivable 4,132 4,106 Equity method investments 3,013 2,812 Other 47,397 19,779 Other assets $ 435,658 $ 329,926 —————————— (1) See Note 7. “Leases” to our condensed consolidated financial statements for discussion of our lease arrangements. (2) 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 bears interest at 8.0% per annum, payable quarterly, with the full amount due in December 2026. As of September 30, 2020 and December 31, 2019, the balance outstanding on the credit facility was €7.0 million ($8.2 million and $7.8 million, respectively). In October 2020, the project entity repaid the outstanding balance of the credit facility. Goodwill Goodwill for the relevant reporting unit consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): December 31, Acquisitions (Impairments) September 30, Modules $ 407,827 $ — $ 407,827 Accumulated impairment losses (393,365) — (393,365) Goodwill $ 14,462 $ — $ 14,462 Intangible assets, net The following tables summarize our intangible assets at September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Gross Amount Accumulated Amortization Net Amount Developed technology $ 99,964 $ (49,647) $ 50,317 Power purchase agreements 6,486 (1,216) 5,270 Patents 7,780 (4,898) 2,882 Intangible assets, net $ 114,230 $ (55,761) $ 58,469 December 31, 2019 Gross Amount Accumulated Amortization Net Amount Developed technology $ 97,964 $ (42,344) $ 55,620 Power purchase agreements 6,486 (972) 5,514 Patents 7,780 (4,371) 3,409 Intangible assets, net $ 112,230 $ (47,687) $ 64,543 Amortization of intangible assets was $2.7 million and $8.1 million for the three and nine months ended September 30, 2020, respectively, and $2.6 million and $7.6 million for the three and nine months ended September 30, 2019, respectively. Assets and liabilities held for sale We classify long-lived assets we plan to sell, excluding project assets and PV solar power systems, as held for sale on our condensed consolidated balance sheets only after certain criteria have been met, including: (i) management has the authority and commits to a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, (iii) an active program to locate a buyer and the plan to sell the asset have been initiated, (iv) the sale of the asset is probable within 12 months, (v) the asset is being actively marketed at a reasonable sales price relative to its current fair value, and (vi) it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made. We record assets held for sale at the lower of their carrying value or fair value less costs to sell. Following an evaluation of the long-term cost structure, competitiveness, and risk-adjusted returns of our operations and maintenance (“O&M”) business, we received an offer to purchase certain portions of the business and determined it is in the best interest of our stockholders to pursue this transaction. As a result, in August 2020 we entered into an agreement with a subsidiary of Clairvest Group, Inc. (“Clairvest”), pursuant to which Clairvest will acquire our North American O&M operations. Accordingly, we classified the assets and liabilities we expect to transfer to Clairvest as assets held for sale and liabilities held for sale on our condensed consolidated balance sheet as of September 30, 2020. The completion of the transaction is contingent on a number of closing conditions, including the receipt of certain third-party consents, a review of the transaction by the Committee on Foreign Investment in the United States, and other customary closing conditions. Assuming satisfaction of such closing conditions, we expect the sale to be completed in late 2020. The following table summarizes our assets and liabilities held for sale at September 30, 2020 (in thousands): September 30, Accounts receivable trade, net $ 16,604 Accounts receivable, unbilled and retainage, net 2,562 Inventories 127 Balance of systems parts 28 Prepaid expenses and other current assets 10,592 Property, plant and equipment, net 5,061 Other assets 35 Assets held for sale $ 35,009 Accounts payable $ 1,498 Accrued expenses 5,183 Deferred revenue 603 Other current liabilities 903 Other liabilities 4,534 Liabilities held for sale $ 12,721 Accrued expenses Accrued expenses consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Accrued property, plant and equipment $ 100,299 $ 42,834 Accrued project costs 61,198 91,971 Accrued compensation and benefits 39,698 65,170 Product warranty liability (1) 22,325 20,291 Accrued inventory 18,143 39,366 Other 56,470 91,628 Accrued expenses $ 298,133 $ 351,260 —————————— (1) See Note 10. “Commitments and Contingencies” to our condensed consolidated financial statements for discussion of our “Product Warranties.” Other current liabilities Other current liabilities consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Other taxes payable $ 31,715 $ 994 Operating lease liabilities (1) 14,506 11,102 Derivative instruments (2) 3,120 2,582 Contingent consideration (3) 2,082 2,395 Other 26,713 11,057 Other current liabilities $ 78,136 $ 28,130 —————————— (1) See Note 7. “Leases” to our condensed consolidated financial statements for discussion of our lease arrangements. (2) See Note 6. “Derivative Financial Instruments” to our condensed consolidated financial statements for discussion of our derivative instruments. (3) See Note 10. “Commitments and Contingencies” to our condensed consolidated financial statements for discussion of our “Contingent Consideration” arrangements Other liabilities Other liabilities consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Operating lease liabilities (1) $ 184,887 $ 112,515 Other taxes payable 95,536 90,201 Product warranty liability (2) 75,028 109,506 Transition tax liability 62,385 70,047 Deferred revenue 45,990 71,438 Contingent consideration (2) 4,500 4,500 Derivative instruments (3) 107 7,439 Other 43,530 43,120 Other liabilities $ 511,963 $ 508,766 —————————— (1) See Note 7. “Leases” to our condensed consolidated financial statements for discussion of our lease arrangements. (2) See Note 10. “Commitments and Contingencies” to our condensed consolidated financial statements for discussion of our “Product Warranties” and “Contingent Consideration” arrangements. (3) See Note 6. “Derivative Financial Instruments” to our condensed consolidated financial statements for discussion of our derivative instruments. |
6. Derivative Financial Instrum
6. Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 6. Derivative Financial Instruments As a global company, we are exposed in the normal course of business to interest rate, foreign currency, and commodity price 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 loss” if the derivative instruments qualify for hedge accounting. For those derivative instruments that do not qualify for hedge accounting (i.e., “economic hedges”), we record the changes in fair value directly to earnings. See Note 8. “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, 2020 and December 31, 2019 (in thousands): September 30, 2020 Prepaid Expenses and Other Current Assets Other Current Liabilities Other Liabilities Derivatives designated as hedging instruments: Foreign exchange forward contracts $ — $ 1,152 $ 107 Commodity swap contracts — 228 — Total derivatives designated as hedging instruments $ — $ 1,380 $ 107 Derivatives not designated as hedging instruments: Foreign exchange forward contracts $ 1,320 $ 1,740 $ — Total derivatives not designated as hedging instruments $ 1,320 $ 1,740 $ — Total derivative instruments $ 1,320 $ 3,120 $ 107 December 31, 2019 Prepaid Expenses and Other Current Assets Other Assets Other Current Liabilities Other Liabilities Derivatives designated as hedging instruments: Foreign exchange forward contracts $ 226 $ 139 $ 369 $ 230 Total derivatives designated as hedging instruments $ 226 $ 139 $ 369 $ 230 Derivatives not designated as hedging instruments: Foreign exchange forward contracts $ 973 $ — $ 1,807 $ — Interest rate swap contracts — — 406 7,209 Total derivatives not designated as hedging instruments $ 973 $ — $ 2,213 $ 7,209 Total derivative instruments $ 1,199 $ 139 $ 2,582 $ 7,439 The following table presents the pretax 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, 2020 and 2019 (in thousands): Foreign Exchange Forward Contracts Commodity Swap Contracts Total Balance as of December 31, 2019 $ (962) $ — $ (962) Amounts recognized in other comprehensive income (loss) (2,129) (228) (2,357) Amounts reclassified to earnings impacting: Cost of sales 647 — 647 Balance as of September 30, 2020 $ (2,444) $ (228) $ (2,672) Balance as of December 31, 2018 $ 1,329 $ — $ 1,329 Amounts recognized in other comprehensive income (loss) 153 — 153 Amounts reclassified to earnings impacting: Net sales (124) — (124) Cost of sales (1,081) — (1,081) Balance as of September 30, 2019 $ 277 $ — $ 277 During the three and nine months ended September 30, 2020, we recognized unrealized gains of $0.1 million and $1.2 million, respectively, within “Cost of sales” for amounts excluded from effectiveness testing for our foreign exchange forward contracts designated as cash flow hedges. During the three and nine months ended September 30, 2019, we recognized unrealized gains of $0.2 million and $0.3 million, respectively, within “Cost of sales” for amounts excluded from effectiveness testing for our foreign exchange forward contracts designated as cash flow hedges. The following table presents gains and losses related to derivative instruments not designated as hedges affecting our condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019 (in thousands): Amount of Gain (Loss) Recognized in Income Three Months Ended Nine Months Ended Income Statement Line Item 2020 2019 2020 2019 Interest rate swap contracts Cost of sales $ — $ — $ — $ (1,656) Foreign exchange forward contracts Cost of sales (195) — (73) — Foreign exchange forward contracts Foreign currency (loss) income, net (2,598) 3,635 (2,405) 883 Interest rate swap contracts Interest expense, net (5,878) (357) (7,259) (10,089) Interest Rate Risk We primarily use 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. During the nine months ended September 30, 2020 and 2019, the majority of our interest rate swap contracts related to project specific debt facilities. Such swap contracts did not qualify for accounting as cash flow hedges in accordance with Accounting Standards Codification (“ASC”) 815 due to our expectation to sell the associated projects before the maturity of their project specific debt financings and corresponding swap contracts. Accordingly, changes in the fair values of these swap contracts were recorded directly to “Interest expense, net.” In December 2019, FS Japan Project 31 GK, our indirectly wholly-owned subsidiary and project company, entered into an interest rate swap contract to hedge a portion of the floating rate term loan facility under the project’s Anamizu Credit Agreement (as defined in Note 9. “Debt” to our consolidated financial statements). Such swap had an initial notional value of ¥0.9 billion and entitled the project to receive a six-month floating Tokyo Interbank Offered Rate (“TIBOR”) plus 0.70% interest rate while requiring the project to pay a fixed rate of 1.1925%. In September 2020, we completed the sale of our Anamizu project, and its interest rate swap contract and outstanding loan balance were assumed by the customer. As of December 31, 2019, the notional value of the interest rate swap contract was ¥0.9 billion ($8.0 million). In January 2017, FS Japan Project 12 GK, our indirect wholly-owned subsidiary and project company, entered into an interest rate swap contract to hedge a portion of the floating rate senior loan facility under the project’s Ishikawa Credit Agreement (as defined in Note 9. “Debt” to our condensed consolidated financial statements). Such swap had an initial notional value of ¥5.7 billion and entitled the project to receive a six-month floating TIBOR plus 0.75% interest rate while requiring the project to pay a fixed rate of 1.482%. In September 2020, we repaid the remaining loan balance and settled the swap contract prior to completing the sale of our Ishikawa project. As of December 31, 2019, the notional value of the interest rate swap contract was ¥18.7 billion ($171.7 million). Foreign Currency 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, 2020 and December 31, 2019, these foreign exchange forward contracts hedged our forecasted cash flows for periods up to 18 months and 22 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 report unrealized gains or losses on such contracts in “Accumulated other comprehensive loss” and subsequently reclassify applicable 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, 2020 and December 31, 2019. As of September 30, 2020 and December 31, 2019, 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, 2020 Currency Notional Amount USD Equivalent U.S. dollar (1) $44.5 $44.5 December 31, 2019 Currency Notional Amount USD Equivalent U.S. dollar (1) $69.9 $69.9 —————————— (1) These derivative instruments represent hedges of outstanding payables denominated in U.S. dollars at certain of our foreign subsidiaries whose functional currencies are other than the U.S. dollar. In the following 12 months, we expect to reclassify to earnings $2.3 million of net unrealized loss related to foreign exchange forward contracts that are included in “Accumulated other comprehensive loss” at September 30, 2020 as we realize the earnings effects 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, deferred taxes, payables, accrued expenses, 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 also 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) income, net” on our condensed consolidated statements of operations. As of September 30, 2020 and December 31, 2019, 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, 2020 Transaction Currency Notional Amount USD Equivalent Purchase Australian dollar AUD 6.2 $4.4 Purchase Brazilian real BRL 2.6 $0.5 Sell Canadian dollar CAD 10.0 $7.5 Sell Chilean peso CLP 1,684.5 $2.2 Purchase Euro €102.7 $120.4 Sell Euro €58.5 $68.6 Purchase Indian rupee INR 126.2 $1.7 Sell Indian rupee INR 743.1 $10.1 Purchase Japanese yen ¥3,146.6 $29.8 Sell Japanese yen ¥45,682.0 $432.7 Purchase Malaysian ringgit MYR 44.9 $10.8 Sell Malaysian ringgit MYR 48.7 $11.7 Sell Mexican peso MXN 34.6 $1.6 Purchase Singapore dollar SGD 2.9 $2.1 December 31, 2019 Transaction Currency Notional Amount USD Equivalent Purchase Australian dollar AUD 14.9 $10.4 Sell Australian dollar AUD 11.1 $7.8 Purchase Brazilian real BRL 13.2 $3.3 Sell Brazilian real BRL 4.3 $1.1 Purchase Canadian dollar CAD 4.5 $3.4 Sell Canadian dollar CAD 1.6 $1.2 Purchase Chilean peso CLP 1,493.1 $2.0 Sell Chilean peso CLP 3,866.1 $5.1 Purchase Euro €86.1 $96.5 Sell Euro €116.3 $130.3 Sell Indian rupee INR 1,283.8 $18.0 Purchase Japanese yen ¥3,625.5 $33.3 Sell Japanese yen ¥23,089.5 $212.2 Purchase Malaysian ringgit MYR 88.6 $21.6 Sell Malaysian ringgit MYR 41.3 $10.1 Sell Mexican peso MXN 34.6 $1.8 Purchase Singapore dollar SGD 2.9 $2.2 Commodity Price Risk We use commodity swap contracts to mitigate our exposure to commodity price fluctuations for certain raw materials used in the production of our modules. In August 2020, we entered into a commodity swap contract to hedge a portion of our forecasted cash flows for purchases of aluminum frames for a one-year period. Such swap had an initial notional value based on metric tons of forecasted aluminum purchases, equivalent to $24.9 million, and entitled us to receive a three-month average London Metals Exchange price for aluminum while requiring us to pay certain fixed prices. The notional amount of the commodity swap contract proportionately adjusts with forecasted purchases of aluminum frames. As of September 30, 2020, the notional value associated with this contract was $18.5 million. This commodity swap contract qualifies for accounting as a cash flow hedge in accordance with ASC 815, and we designated it as such. We report unrealized gains or losses on such contract in “Accumulated other comprehensive loss” and subsequently reclassify applicable amounts into earnings when the hedged transaction occurs and impacts earnings. We determined that this derivative financial instrument was highly effective as a cash flow hedge as of September 30, 2020. In the following 12 months, we expect to reclassify into earnings $0.2 million of net unrealized losses related to this commodity swap contract that are included in “Accumulated other comprehensive loss” at September 30, 2020 as we realize the earnings effects of the related forecasted transactions. The amount we ultimately record to earnings will depend on the actual commodity pricing when we realize the related forecasted transactions. |
7. Leases (Notes)
7. Leases (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | 7. Leases Our lease arrangements include land associated with our systems projects, our corporate and administrative offices, land for our international manufacturing facilities, and certain of our manufacturing equipment. Such leases primarily relate to assets located in the United States, Japan, Malaysia, and Vietnam. The following table presents certain quantitative information related to our lease arrangements for the three and nine months ended September 30, 2020 and 2019, and as of September 30, 2020 and December 31, 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Operating lease cost $ 4,798 $ 5,788 $ 13,694 $ 16,607 Variable lease cost 628 904 1,919 2,592 Short-term lease cost 1,112 1,118 2,817 6,818 Total lease cost $ 6,538 $ 7,810 $ 18,430 $ 26,017 Payments of amounts included in the measurement of operating lease liabilities $ 15,756 $ 15,995 Lease assets obtained in exchange for operating lease liabilities $ 93,992 $ 172,760 September 30, December 31, Operating lease assets $ 223,554 $ 145,711 Operating lease liabilities – current 14,506 11,102 Operating lease liabilities – noncurrent 184,887 112,515 Weighted-average remaining lease term 20 years 15 years Weighted-average discount rate 3.0 % 4.3 % As of September 30, 2020, the future payments associated with our lease liabilities were as follows (in thousands): Total Lease Liabilities Remainder of 2020 $ 3,795 2021 18,354 2022 17,600 2023 17,104 2024 16,815 2025 16,360 Thereafter 159,244 Total future payments 249,272 Less: interest (49,879) Total lease liabilities $ 199,393 |
8. Fair Value Measurements
8. Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. 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 September 30, 2020 and December 31, 2019, our cash equivalents consisted of money market funds. We value our cash equivalents using observable inputs that reflect quoted prices for securities with identical characteristics and classify the valuation techniques that use these inputs as Level 1. • Marketable Securities and Restricted Marketable Securities. At September 30, 2020 and December 31, 2019, our marketable securities consisted of foreign debt, foreign government obligations, U.S. debt, and time deposits, and our restricted marketable securities consisted of foreign and U.S. government obligations. We value our marketable securities and restricted marketable securities 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 standing in these fair value measurements. • Derivative Assets and Liabilities . At September 30, 2020 and December 31, 2019, our derivative assets and liabilities consisted of foreign exchange forward contracts involving major currencies, interest rate swap contracts involving major interest rates, and commodity swap contracts involving major commodity prices. Since our derivative assets and liabilities are not traded on an exchange, we value them using standard industry valuation models. As 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, forward and spot prices for currencies, and forward prices for commodities. 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, 2020 and December 31, 2019, the fair value measurements of our assets and liabilities measured on a recurring basis were as follows (in thousands): Fair Value Measurements at Reporting September 30, Quoted Prices Significant Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 392 $ 392 $ — $ — Marketable securities: Foreign debt 214,436 — 214,436 — U.S. debt 14,561 — 14,561 — Time deposits 124,822 124,822 — — Restricted marketable securities 261,507 — 261,507 — Derivative assets 1,320 — 1,320 — Total assets $ 617,038 $ 125,214 $ 491,824 $ — Liabilities: Derivative liabilities $ 3,227 $ — $ 3,227 $ — Fair Value Measurements at Reporting December 31, Quoted Prices Significant Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 7,322 $ 7,322 $ — $ — Marketable securities: Foreign debt 387,820 — 387,820 — Foreign government obligations 22,011 — 22,011 — U.S. debt 66,134 — 66,134 — Time deposits 335,541 335,541 — — Restricted marketable securities 223,785 — 223,785 — Derivative assets 1,338 — 1,338 — Total assets $ 1,043,951 $ 342,863 $ 701,088 $ — Liabilities: Derivative liabilities $ 10,021 $ — $ 10,021 $ — Fair Value of Financial Instruments At September 30, 2020 and December 31, 2019, the carrying values and fair values of our financial instruments not measured at fair value were as follows (in thousands): September 30, 2020 December 31, 2019 Carrying Fair Carrying Fair Assets: Notes receivable – current (1) $ — $ — $ 23,873 $ 24,929 Notes receivable – noncurrent (1) 8,556 9,872 8,194 10,276 Liabilities: Long-term debt, including current maturities (2) $ 269,097 $ 265,022 $ 482,892 $ 504,213 —————————— (1) See Note 5. “Consolidated Balance Sheet Details” for further information about the allowance for credit losses for our notes receivable. (2) Excludes unamortized discounts and issuance costs. The carrying values in our condensed consolidated balance sheets of our trade accounts receivable, unbilled accounts receivable and retainage, restricted cash, accounts payable, and accrued expenses approximated their fair values due to their nature and relatively short maturities; therefore, we excluded them from the foregoing table. The fair value measurements for our notes receivable and long-term debt are considered Level 2 measurements 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, accounts receivable, restricted cash, restricted marketable securities, notes receivable, foreign exchange forward contracts, and commodity swap 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 marketable securities, 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 advance payments, parent guarantees, letters of credit, bank guarantees, or surety bonds. We also have power purchase agreements (“PPAs”) that subject us to credit risk in the event our off-take counterparties are unable to fulfill their contractual obligations, which may adversely affect our project assets and certain receivables. Accordingly, we closely monitor the credit standing of existing and potential off-take counterparties to limit such risks. |
9. Debt
9. Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Instruments [Abstract] | |
Debt | 9. Debt Our long-term debt consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): Balance (USD) Loan Agreement Currency September 30, December 31, Revolving Credit Facility USD $ — $ — Luz del Norte Credit Facilities USD 186,931 188,017 Ishikawa Credit Agreement JPY — 215,879 Japan Credit Facility JPY 13,481 1,678 Tochigi Credit Facility JPY 38,452 37,304 Anamizu Credit Agreement JPY — 12,138 Kyoto Credit Facility JPY 30,233 — Anantapur Credit Facility INR — 15,123 Tungabhadra Credit Facility INR — 12,753 Long-term debt principal 269,097 482,892 Less: unamortized discounts and issuance costs (8,229) (11,195) Total long-term debt 260,868 471,697 Less: current portion (40,412) (17,510) Noncurrent portion $ 220,456 $ 454,187 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 borrowing capacity of $500.0 million, which we may increase to $750.0 million, subject to certain conditions. Borrowings under the credit facility bear interest at (i) London Interbank Offered Rate (“LIBOR”), adjusted for Eurocurrency reserve requirements, plus a margin of 2.00% or (ii) a base rate as defined in the credit agreement plus a margin of 1.00% depending on the type of borrowing requested. These margins are also subject to adjustment depending on our consolidated leverage ratio. We had no borrowings under our Revolving Credit Facility as of September 30, 2020 and December 31, 2019 and had issued $4.2 million and $39.3 million, respectively, of letters of credit using availability under the facility. 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. 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 0.30% per annum, based on the average daily unused commitments under the facility, which 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%. Our Revolving Credit Facility matures in July 2022. Luz del Norte Credit Facilities In August 2014, Parque Solar Fotovoltaico Luz del Norte SpA (“Luz del Norte”), our indirect wholly-owned subsidiary and project company, entered into credit facilities (the “Luz del Norte Credit Facilities”) with the U.S. International Development Finance Corporation (“DFC”) and the International Finance Corporation (“IFC”) to provide limited-recourse senior secured debt financing for the design, development, financing, construction, testing, commissioning, operation, and maintenance of a 141 MW AC PV solar power plant located near Copiapó, Chile. In March 2017, we amended the terms of the DFC and IFC credit facilities. Such amendments (i) allowed for the capitalization of accrued and unpaid interest through March 15, 2017, along with the capitalization of certain future interest payments as variable rate loans under the credit facilities, (ii) allowed for the conversion of certain fixed rate loans to variable rate loans upon scheduled repayment, (iii) extended the maturity of the DFC and IFC loans until June 2037, and (iv) canceled the remaining borrowing capacity under the DFC and IFC credit facilities with the exception of the capitalization of certain future interest payments. As of September 30, 2020 and December 31, 2019, the balance outstanding on the DFC loans was $139.9 million and $140.8 million, respectively. As of September 30, 2020 and December 31, 2019, the balance outstanding on the IFC loans was $47.0 million and $47.2 million, respectively. The DFC and IFC loans are secured by liens over all of Luz del Norte’s assets and by a pledge of all of the equity interests in the entity. Ishikawa Credit Agreement In December 2016, FS Japan Project 12 GK (“Ishikawa”), our indirect wholly-owned subsidiary and project company, entered into a credit agreement (the “Ishikawa Credit Agreement”) with Mizuho Bank, Ltd. for aggregate borrowings up to ¥27.3 billion ($233.9 million) for the development and construction of a 59 MW AC PV solar power plant located in Ishikawa, Japan. The credit agreement consists of a ¥24.0 billion ($205.6 million) senior loan facility, a ¥2.1 billion ($18.0 million) consumption tax facility, and a ¥1.2 billion ($10.3 million) letter of credit facility. In September 2020, we repaid the remaining $215.5 million principal balance on the credit agreement prior to completing the sale of the project. Japan Credit Facility In September 2015, First Solar Japan GK, our wholly-owned subsidiary, entered into a construction loan facility with Mizuho Bank, Ltd. for borrowings up to ¥4.0 billion ($33.4 million) for the development and construction of utility-scale PV solar power plants in Japan (the “Japan Credit Facility”). Borrowings under the facility generally mature within 12 months following the completion of construction activities for each financed project. The facility is guaranteed by First Solar, Inc. and secured by pledges of certain projects’ cash accounts and other rights in the projects. Tochigi Credit Facility In June 2017, First Solar Japan GK, our wholly-owned subsidiary, entered into a term loan facility with Mizuho Bank, Ltd. for borrowings up to ¥7.0 billion ($62.2 million) for the development of utility-scale PV solar power plants in Japan (the “Tochigi Credit Facility”). The term loan facility matures in March 2021. The facility is guaranteed by First Solar, Inc. and secured by pledges of certain of First Solar Japan GK’s accounts. Anamizu Credit Agreement In December 2019, FS Japan Project 31 GK (“Anamizu”), our indirect wholly-owned subsidiary and project company, entered into a credit agreement (the “Anamizu Credit Agreement”) with MUFG Bank, Ltd.; The Iyo Bank, Ltd.; The Hachijuni Bank, Ltd.; The Hyakugo Bank, Ltd.; and The Yamagata Bank, Ltd. for aggregate borrowings up to ¥7.7 billion ($70.8 million) for the development and construction of a 17 MW AC PV solar power plant located in Ishikawa, Japan. The credit agreement consisted of a ¥6.6 billion ($61.0 million) term loan facility, a ¥0.7 billion ($6.5 million) consumption tax facility, and a ¥0.4 billion ($3.3 million) debt service reserve facility. In September 2020, we completed the sale of our Anamizu project, and the outstanding balance of the Anamizu Credit Agreement of $31.3 million was assumed by the customer. Miyagi Credit Facility In July 2020, GK Marumori Hatsudensho (“Miyagi”), our indirectly wholly-owned subsidiary and project company, entered into a credit agreement (the “Miyagi Credit Facility”) with Shinsei Bank, Ltd. for aggregate borrowings up to ¥17.2 billion ($164.2 million) for the development and construction of a 40 MW AC PV solar power plant located in Miyagi, Japan. The credit facility consisted of a ¥15.2 billion ($145.1 million) term loan facility, a ¥1.5 billion ($14.4 million) consumption tax facility, and a ¥0.5 billion ($4.7 million) debt service reserve facility. In September 2020, we completed the sale of our Miyagi project, and the outstanding balance of the Miyagi Credit Facility of $79.4 million was assumed by the customer. Kyoto Credit Facility In July 2020, First Solar Japan GK, our wholly-owned subsidiary, entered into a construction loan facility with Mizuho Bank, Ltd. for borrowings up to ¥15.0 billion ($142.8 million), which are intended to be used for the construction of a 38 MW AC PV solar power plant located in Kyoto, Japan (the “Kyoto Credit Facility”). Borrowings under the facility generally mature within 12 months following the completion of construction activities at the project. The facility is guaranteed by First Solar, Inc. and First Solar Japan GK, our wholly-owned subsidiary, and secured by pledges of the project’s cash accounts and certain other assets. Anantapur Credit Facility In March 2018, Anantapur Solar Parks Private Limited, our indirect wholly-owned subsidiary and project company, entered into a term loan facility (the “Anantapur Credit Facility”) with J.P. Morgan Securities India Private Limited for borrowings up to INR 1.2 billion ($18.4 million) for costs related to a 20 MW AC PV solar power plant located in Karnataka, India. In July 2020, we completed the sale of our Anantapur project, and the outstanding balance of the Anantapur Credit Facility of $14.0 million was assumed by the customer. Tungabhadra Credit Facility In March 2018, Tungabhadra Solar Parks Private Limited, our indirect wholly-owned subsidiary and project company, entered into a term loan facility (the “Tungabhadra Credit Facility”) with J.P. Morgan Securities India Private Limited for borrowings up to INR 1.0 billion ($15.3 million) for costs related to a 20 MW AC PV solar power plant located in Karnataka, India. In July 2020, we completed the sale of our Tungabhadra project, and the outstanding balance of the Tungabhadra Credit Facility of $12.0 million was assumed by the customer. Variable Interest Rate Risk Certain of our long-term debt agreements bear interest at prime, LIBOR, TIBOR, BBSY, or equivalent variable rates. An increase in these variable rates would increase the cost of borrowing under our Revolving Credit Facility and certain project specific debt financings. Our long-term debt borrowing rates as of September 30, 2020 were as follows: Loan Agreement September 30, 2020 Revolving Credit Facility 2.15% Luz del Norte Credit Facilities (1) 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% Japan Credit Facility 1-month TIBOR plus 0.55% Tochigi Credit Facility 3-month TIBOR plus 1.00% Kyoto Credit Facility 1-month TIBOR plus 0.60% —————————— (1) Outstanding balance comprised of $146.4 million of fixed rate loans and $40.5 million of variable rate loans as of September 30, 2020. Future Principal Payments At September 30, 2020, the future principal payments on our long-term debt were due as follows (in thousands): Total Debt Remainder of 2020 $ 701 2021 40,853 2022 17,516 2023 36,318 2024 7,020 2025 7,560 Thereafter 159,129 Total long-term debt future principal payments $ 269,097 |
10. Commitments and Contingenci
10. Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. 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 amended and restated Revolving Credit Facility provides us with a sub-limit of $400.0 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, 2020, we had $4.2 million in letters of credit issued under our Revolving Credit Facility, leaving $395.8 million of availability for the issuance of additional letters of credit. As of September 30, 2020, we also had $10.1 million of letters of credit under separate agreements that were posted by certain of our foreign subsidiaries and $124.4 million of letters of credit issued under a bilateral facility, of which $1.2 million was secured with cash, leaving $434.2 million of aggregate available capacity under such agreements and facilities. We also had $97.0 million of surety bonds outstanding, leaving $619.3 million of available bonding capacity under our surety lines as of September 30, 2020. The majority of these letters of credit and surety bonds supported our systems projects. Product Warranties When we recognize revenue for module or system 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 solar modules under warranty installed at customer locations, our historical experience with and projections of warranty claims, and our estimated per-module replacement costs. We also monitor our expected future module performance through certain quality and reliability testing and actual performance in certain field installation sites. From time to time, we have taken remediation actions with respect to affected modules beyond our limited warranties and 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 may 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, 2020 and 2019 were as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Product warranty liability, beginning of period $ 123,194 $ 217,991 $ 129,797 $ 220,692 Accruals for new warranties issued 3,435 1,723 7,903 11,636 Settlements (9,289) (4,211) (18,772) (10,233) Changes in estimate of product warranty liability (19,987) (77,598) (21,575) (84,190) Product warranty liability, end of period $ 97,353 $ 137,905 $ 97,353 $ 137,905 Current portion of warranty liability $ 22,325 $ 19,526 $ 22,325 $ 19,526 Noncurrent portion of warranty liability $ 75,028 $ 118,379 $ 75,028 $ 118,379 We estimate our limited product warranty liability for power output and defects in materials and workmanship under normal use and service conditions based on return rates for each series of module technology. During the three months ended September 30, 2020, we revised this estimate downward based on updated information regarding our warranty claims, which reduced our product warranty liability by $19.7 million. This updated information reflected lower-than-expected settlements for our older series of module technology and revisions to projected settlements, resulting in a lower projected return rate. During the three months ended September 30, 2019, we revised this estimate downward based on updated information regarding our warranty claims, which reduced our product warranty liability by $80.0 million. This updated information reflected lower-than-expected return rates for our newer series of module technology, the evolving claims profile of each series, and certain changes to our warranty programs. In general, we expect the return rates for our newer series of module technology to be lower than our older series. We estimate that the return rate for such newer series of module technology will be less than 1%. As of September 30, 2020, a 1% increase in the return rate across all series of module technology would increase our product warranty liability by $101.1 million, and a 1% increase in the return rate for balance of systems (“BoS”) parts would not have a material impact on the associated warranty liability. 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 or second year of a system’s operation to demonstrate that the actual energy generation for the applicable period meets or exceeds the modeled energy expectation, after certain adjustments. If there is an underperformance event with regard to these tests, we may incur liquidated damages as specified in the applicable EPC agreement. In certain instances, a bonus payment may be received at the end of the applicable test period if the system performs above a specified level. As of September 30, 2020 and December 31, 2019, we accrued $19.3 million and $4.6 million, respectively, for our estimated obligations under such arrangements, which were classified as “Other current liabilities” in our 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 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. 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, 2020, we accrued $0.9 million of liquidated damages under our effective availability guarantees, which was classified as “Liabilities held for sale” in our condensed consolidated balance sheets. As of December 31, 2019, we accrued $0.6 million of liquidated damages under our effective availability guarantees, which was classified as “Other current liabilities” in our condensed consolidated balance sheets. Indemnifications In certain limited circumstances, we have provided indemnifications to customers, including project tax equity investors, under which we are contractually obligated to compensate such parties for losses they suffer resulting from a breach of a representation, warranty, or covenant; a reduction in tax benefits received, including investment tax credits; or the resolution of specific matters associated with a project’s development or construction. 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 contracts that have such indemnification provisions, we initially recognize a liability under ASC 460 for the estimated premium that would be required by a guarantor to issue the same indemnity in a standalone arm’s-length transaction with an unrelated party. We typically base these estimates on the cost of insurance policies that cover the underlying risks being indemnified and may purchase such policies to mitigate our exposure to potential indemnification payments. We subsequently measure such liabilities at the greater of the initially estimated premium or the contingent liability required to be recognized under ASC 450. We recognize any indemnification liabilities as a reduction of revenue in the related transaction. After an indemnification liability is recorded, we derecognize such amount pursuant to ASC 460-10-35-2 depending on the nature of the indemnity, which derecognition typically occurs upon expiration or settlement of the arrangement, and any contingent aspects of the indemnity are accounted for in accordance with ASC 450. As of September 30, 2020 and December 31, 2019, we accrued $5.2 million and $0.8 million of current indemnification liabilities, respectively, and $2.0 million and $4.2 million of noncurrent indemnification liabilities, respectively. As of September 30, 2020, the maximum potential amount of future payments under our tax related and other indemnifications was $202.9 million, and we held insurance policies allowing us to recover up to $43.8 million of potential amounts paid under the indemnifications covered by the policies. Contingent Consideration We may seek to make additions to our advanced-stage project pipeline by actively developing our early-to-mid-stage project pipeline and by pursuing opportunities to acquire projects at various stages of development. In connection with such project acquisitions, we may agree to pay additional amounts to project sellers upon the achievement of certain milestones, such as obtaining a PPA, obtaining financing, or selling the project to a new owner. We recognize a project acquisition contingent liability when we determine that such a liability is both probable and reasonably estimable, and the carrying amount of the related project asset is correspondingly increased. As of September 30, 2020 and December 31, 2019, we accrued $2.1 million and $2.4 million of current liabilities, respectively, and $4.5 million of long-term liabilities, for project related contingent obligations. Any future differences between the acquisition-date contingent obligation estimate and the ultimate settlement of the obligation are recognized as an adjustment to the project asset, as contingent payments are considered direct and incremental to the underlying value of the related project. Solar Module Collection and Recycling Liability We previously established a module collection and recycling program, which has since been discontinued, to collect and recycle modules sold and covered under such program once the modules reach the end of their service lives. For legacy customer sales contracts that were covered under this program, we agreed to pay the costs for the collection and recycling of qualifying solar modules, and the end-users agreed to notify us, disassemble their solar power systems, package the solar modules for shipment, and revert ownership rights over the modules back to us at the end of the modules’ service lives. Accordingly, we recorded any 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. We estimate the cost of our collection and recycling obligations based on the present value of the expected 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; material, labor, and capital costs; and by-product credits for certain materials recovered during the recycling process. We base these estimates on our experience collecting and recycling solar modules and certain assumptions regarding costs 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 and classify the corresponding expense within “Selling, general and administrative” expense on our condensed consolidated statements 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, 2020, we completed our annual cost study of obligations under our module collection and recycling program and reduced the associated liability by $18.9 million primarily due to changes to the estimated timing of cash flows associated with capital, labor, and maintenance costs and updates to certain valuation assumptions. Our module collection and recycling liability was $125.6 million and $137.8 million as of September 30, 2020 and December 31, 2019, respectively. As of September 30, 2020, a 1% increase in the annualized inflation rate used in our estimated future collection and recycling cost per module would increase the liability by $20.8 million, and a 1% decrease in that rate would decrease the liability by $18.0 million. See Note 4. “Restricted Marketable Securities” to our condensed consolidated financial statements for more information about our arrangements for funding this liability. Legal Proceedings 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 alleged 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 included claims for damages, including interest, and an award of reasonable costs and attorneys’ fees to the putative class. 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, the “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. On December 13, 2016, the Ninth Circuit denied the Pension Schemes’ motion. On January 31, 2018, the Ninth Circuit issued an opinion affirming the Arizona District Court’s order denying in part defendants’ motion for summary judgment. On March 16, 2018, First Solar filed a petition for panel rehearing or rehearing en banc with the Ninth Circuit. On May 7, 2018, the Ninth Circuit denied defendants’ petition. On August 6, 2018, defendants filed a petition for writ of certiorari to the U.S. Supreme Court. Meanwhile, in the Arizona District Court, expert discovery was completed on February 5, 2019. On June 24, 2019, the U.S. Supreme Court denied the petition. Following the denial of the petition, the Arizona District Court ordered that the trial begin on January 7, 2020. On January 5, 2020, First Solar entered into a Memorandum of Understanding (“MOU”) to settle the Class Action. First Solar agreed to pay a total of $350 million to settle the claims in the Class Action brought on behalf of all persons who purchased or otherwise acquired the Company’s shares between April 30, 2008 and February 28, 2012, in exchange for mutual releases and a dismissal with prejudice of the complaint upon court approval of the settlement. The proposed settlement contains no admission of liability, wrongdoing, or responsibility by any of the parties. As a result of the entry into the MOU, we accrued a loss for the above-referenced settlement in our results of operations for the year ended December 31, 2019. On January 24, 2020, First Solar paid $350 million to the settlement escrow agent. On February 13, 2020, First Solar entered into a stipulation of settlement with certain named plaintiffs on terms and conditions that are consistent with the MOU. On February 14, 2020, the lead plaintiffs filed a motion for preliminary approval of the settlement. Following a February 27, 2020 hearing, the Arizona District Court entered an order on March 2, 2020 that granted preliminary approval of the settlement and permitted notice to the class. Following a June 30, 2020 hearing, the Arizona District Court entered an order on June 30, 2020 that granted final approval of the settlement and dismissed the Class Action with prejudice. 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 “Opt-Out 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 rescissory and actual damages, interest, punitive damages, and an award of reasonable attorneys’ fees, expert fees, and costs. First Solar and the individual defendants filed a motion to dismiss the Opt-Out Action on July 16, 2018. On November 27, 2018, the Court granted defendants’ motion to dismiss the plaintiffs’ negligent misrepresentation claim under state law, but otherwise denied defendants’ motion. On June 3, 2020, First Solar and the plaintiffs in the Opt-Out Action entered into an agreement in principle to settle the claims in the Opt-Out Action. On July 17, 2020, the parties executed a definitive settlement agreement pursuant to which First Solar agreed to pay a total of $19 million in exchange for mutual releases and a dismissal with prejudice of the Opt-Out Action. The agreement contains no admission of liability, wrongdoing, or responsibility by any of the defendants. On July 30, 2020, First Solar funded the settlement, and on July 31, 2020, the parties filed a joint stipulation of dismissal. On September 10, 2020, the Arizona District Court entered an order dismissing the case with prejudice. As of December 31, 2019, we accrued $13 million of estimated losses for this action. As a result of the settlement, we accrued an incremental $6 million litigation loss during the nine months ended September 30, 2020. Derivative Actions On July 16, 2013, a derivative complaint was filed in the Superior Court of Arizona, Maricopa County, formerly titled Bargar, et al. v. Ahearn, et al., and now titled Kaufold v. Ahearn, et. al., Case No. CV2013-009938, by a putative stockholder against certain current and former directors and officers of the Company (“Kaufold”). The complaint generally alleges that 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, 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 Class Action or expiration of a stay issued in certain consolidated derivative actions in the Arizona District Court. On November 5, 2013, the matter was placed on the court’s inactive calendar. The parties jointly sought and obtained multiple requests to continue the stay in this action. On June 30, 2020, the parties jointly requested that the stay be lifted. On July 1, 2020, the Superior Court of Arizona, Maricopa County ordered that the stay be lifted. On July 14, 2020, defendants filed a motion to dismiss the complaint with prejudice. On September 14, 2020, First Solar and the plaintiff entered into an agreement in principle to settle the claims in the Kaufold action, providing for, among other things, payment of the plaintiff’s attorney’s fees in an immaterial sum, subject to the execution of a stipulation of settlement and approval by the Arizona District Court. Other Matters and Claims We are party to other legal matters and claims in the normal course of our operations. While we believe the ultimate outcome of such other matters and claims will not have a material adverse effect on our financial position, results of operations, or cash flows, the outcome of such matters and claims is not determinable with certainty, and negative outcomes may adversely affect us. |
11. Revenue from Contracts with
11. Revenue from Contracts with Customers (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers [Text Block] | 11. Revenue from Contracts with Customers The following table represents a disaggregation of revenue from contracts with customers for the three and nine months ended September 30, 2020 and 2019 along with the reportable segment for each category (in thousands): Three Months Ended Nine Months Ended Category Segment 2020 2019 2020 2019 Solar modules Modules $ 422,480 $ 371,184 $ 1,187,679 $ 798,744 Solar power systems Systems 471,174 79,792 776,724 454,841 O&M services Systems 28,061 28,245 89,237 82,397 Energy generation (1) Systems 14,335 20,366 54,884 40,488 EPC services (2) Systems (8,485) 47,219 (6,424) 287,270 Net sales $ 927,565 $ 546,806 $ 2,102,100 $ 1,663,740 —————————— (1) During the three and nine months ended September 30, 2020, the majority of energy generated and sold by our PV solar power systems was accounted for under ASC 840 consistent with the classification of the associated PPAs. (2) For certain of our EPC agreements, we provide an energy performance test during the first or second year of a system’s operation to demonstrate that the actual energy generation for the applicable period meets or exceeds the modeled energy expectation, after certain adjustments. If there is an underperformance event with regard to these tests, we may incur liquidated damages as specified in the applicable EPC agreement. During the three months ended September 30, 2020, we accrued liquidated damages for certain of these arrangements, which we recognized as a reduction to revenue. See Note 10. “Commitments and Contingencies” to our condensed consolidated financial statements for discussion of our performance guarantee arrangements. We recognize revenue for module sales at a point in time following the transfer of control of the modules to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts. Such contracts may contain provisions that require us to make liquidated damage payments to the customer if we fail to ship or deliver modules by scheduled dates. We recognize these liquidated damages as a reduction of revenue in the period we transfer control of the modules to the customer. For certain sales of solar power systems and/or EPC services, we recognize revenue over time using cost based input methods, in which significant judgment is required to evaluate assumptions including the amount of net contract revenues and the total estimated costs to determine our progress toward contract completion. If the 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 revisions to estimates related to net contract revenues or 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 sales of systems and EPC services occur for a variety of reasons, including but not limited to (i) construction plan accelerations or delays, (ii) module cost forecast changes, (iii) cost related change orders, or (iv) changes in other information used to estimate costs. Changes in estimates may have a material effect on our condensed consolidated statements of operations. The following table outlines the impact on revenue of net changes in estimated transaction prices and input costs for systems related sales contracts (both increases and decreases) for the three and nine months ended September 30, 2020 and 2019 as well as the number of projects that comprise such changes. For purposes of the table, we only include projects with changes in estimates that have a net impact on revenue 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 revenue for such projects. Three Months Ended Nine Months Ended 2020 2019 2020 2019 Number of projects 6 4 12 4 (Decrease) increase in revenue from net changes in transaction prices (in thousands) $ (16,319) $ (2,435) $ (25,470) $ 3,649 Increase (decrease) in revenue from net changes in input cost estimates (in thousands) 24 (6,676) (2,483) (15,645) Net decrease in revenue from net changes in estimates (in thousands) $ (16,295) $ (9,111) $ (27,953) $ (11,996) Net change in estimate as a percentage of aggregate revenue (1.3) % (0.6) % (1.3) % (1.6) % The following table reflects the changes in our contract assets, which we classify as “Accounts receivable, unbilled” or “Retainage,” and our contract liabilities, which we classify as “Deferred revenue,” for the nine months ended September 30, 2020, excluding any assets or liabilities classified as held for sale as of September 30, 2020 (in thousands): September 30, December 31, Nine Month Change Accounts receivable, unbilled (1) $ 97,281 $ 162,057 Retainage 11,367 21,416 Allowance for credit losses (919) — Accounts receivable, unbilled and retainage, net $ 107,729 $ 183,473 $ (75,744) (41) % Deferred revenue (2) $ 161,582 $ 394,655 $ (233,073) (59) % —————————— (1) Includes $19.3 million of long-term accounts receivable, unbilled classified as “Other assets” on our condensed consolidated balance sheet as of September 30, 2020. (2) Includes $46.0 million and $71.4 million of long-term deferred revenue classified as “Other liabilities” on our condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019, respectively. During the nine months ended September 30, 2020, our contract assets decreased by $75.7 million primarily due to billings associated with ongoing construction activities at the GA Solar 4, Sun Streams, and Sunshine Valley projects, partially offset by certain unbilled receivables associated with the sale of the Anamizu and Miyagi projects. During the nine months ended September 30, 2020, our contract liabilities decreased by $233.1 million primarily due to the recognition of revenue for sales of solar modules for which payment was received in 2019 prior to the step down in the U.S. investment tax credit, partially offset by advance payments received for sales of solar modules in the current period. During the nine months ended September 30, 2020 and 2019, we recognized revenue of $296.7 million and $123.2 million, respectively, that was included in the corresponding contract liability balance at the beginning of the periods. The following table represents our remaining performance obligations as of September 30, 2020 for sales of solar power systems, including uncompleted sold projects and projects under contracts subject to conditions precedent. Such table excludes remaining performance obligations for sales arrangements that had not fully satisfied the criteria to be considered a contract with a customer pursuant to the requirements of ASC 606. We expect to recognize $11.7 million of revenue for such contracts through the substantial completion dates of the projects. Project/Location Project Size in MW AC Revenue Category Customer Expected Year Revenue Recognition Will Be Completed Percentage of Revenue Recognized GA Solar 4, Georgia 200 Solar power systems Origis Energy USA 2020 96% Seabrook, South Carolina 72 Solar power systems Dominion Energy 2020 98% Total 272 As of September 30, 2020, we had entered into contracts with customers for the future sale of 10.8 GW DC of solar modules for an aggregate transaction price of $3.4 billion. We expect to recognize such amounts as revenue through 2023 as we transfer control of the modules to the customers. While our contracts with customers typically represent firm purchase commitments, these contracts may be subject to amendments made by us or requested by our customers. These amendments may increase or decrease the volume of modules to be sold under the contract, change delivery schedules, or otherwise adjust the expected revenue under these contracts. As of September 30, 2020, we had entered into O&M contracts covering approximately 14 GW DC of utility-scale PV solar power systems. We expect to recognize $0.5 billion of revenue during the noncancelable term of these O&M contracts over a weighted-average period of 10.8 years, including contracts expected to be transferred to Clairvest in connection with the sale of our North American O&M operations. See Note 5. “Consolidated Balance Sheet Details” to our condensed consolidated financial statements for further information. |
12. Share-Based Compensation
12. Share-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Abstract] | |
Share-Based Compensation | 12. Share-Based Compensation The following table presents share-based compensation expense recognized in our condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Cost of sales $ 1,099 $ 1,719 $ 2,554 $ 5,520 Selling, general and administrative 5,562 6,243 13,323 15,627 Research and development 548 1,525 2,312 4,067 Production start-up — 139 — 194 Total share-based compensation expense $ 7,209 $ 9,626 $ 18,189 $ 25,408 Share-based compensation expense capitalized in inventory, project assets, and PV solar power systems was $1.0 million as of September 30, 2020 and $1.2 million as of December 31, 2019. As of September 30, 2020, we had $33.3 million of unrecognized share-based compensation expense related to unvested restricted and performance stock units, which we expect to recognize over a weighted-average period of approximately 1.4 years. In February 2017, the compensation committee of our board of directors approved a long-term incentive program for key executive officers and associates. The program is intended to incentivize retention of our key executive talent, provide a smooth transition from our former key senior talent equity performance program, and align the interests of executive management and stockholders. Specifically, the program consists of (i) performance stock units to be earned over an approximately three-year performance period, which ended in December 2019, and (ii) stub-year grants of separate performance stock units to be earned over an approximately two-year performance period, which ended in December 2018. In February 2019, the compensation committee of our board of directors certified the achievement of the maximum vesting conditions applicable for the stub-year grants. Accordingly, each participant received one share of common stock for each vested performance unit, net of any tax withholdings. In February 2020, the compensation committee of our board of directors certified the achievement of the threshold vesting conditions applicable to the remaining 2017 grants of performance stock units. Accordingly, each participant received one share of common stock for each vested performance unit, net of any tax withholdings. In April 2018, in continuation of our long-term incentive program for key executive officers and associates, the compensation committee of our board of directors approved additional grants of performance stock units to be earned over an approximately three-year performance period ending in December 2020. Vesting of the 2018 grants of performance stock units is contingent upon the relative attainment of target gross margin, operating expense, and contracted revenue metrics. In July 2019, the compensation committee of our board of directors approved additional grants of performance stock units for key executive officers. Such grants are expected to be earned over a multi-year performance period ending in December 2021. Vesting of the 2019 grants of performance stock units is contingent upon the relative attainment of target cost per watt, module wattage, gross profit, and operating income metrics. In March 2020, the compensation committee of our board of directors approved additional grants of performance stock units for key executive officers. Such grants are expected to be earned over a multi-year performance period ending in December 2022. Vesting of the 2020 grants of performance stock units is contingent upon the relative attainment of contracted revenue, module wattage, and return on capital metrics. Vesting of performance stock units is also contingent upon the employment of program participants through the applicable vesting dates, with limited exceptions in case of death, disability, a qualifying retirement, or a change-in-control of First Solar. Outstanding performance stock units are included in the computation of diluted net income per share based on the number of shares that would be issuable if the end of the reporting period were the end of the contingency period. |
13. Income Taxes
13. Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act (the “CARES Act”) was signed into law. The CARES Act includes a number of federal corporate tax relief provisions that are intended to support the ongoing liquidity of U.S. corporations. Among other provisions, the CARES Act allows net operating losses incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years. Because changes in tax law are accounted for in the period of enactment, the retroactive effects of such changes are accounted for as a discrete item in our tax provision. Our effective tax rate was (16.9)% and (84.8)% for the nine months ended September 30, 2020 and 2019, respectively. The increase in our effective tax rate was primarily driven by the relative size of our pretax income in the current period and higher losses in the prior period in certain jurisdictions for which no tax benefit could be recorded, partially offset by a discrete tax benefit associated with the net operating loss carryback provisions of the CARES Act described above. Our provision for income taxes differed from the amount computed by applying the U.S. statutory federal income tax rate of 21% primarily due to the effect of tax law changes associated with the CARES Act. 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 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. Our Vietnamese subsidiary qualifies for certain tax incentives, which generally provide a two-year tax exemption and reduced tax rates for the subsequent four-year period. These incentives are available in the period an entity first generates taxable profit or, if earlier, four years after an entity’s first taxable sale. Given our anticipated earnings in Vietnam, we expect to receive such benefits in the current year. In the normal course of business, we establish valuation allowances for our deferred tax assets when the realization of the assets is not more likely than not. We intend to maintain such valuation allowances on our deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of the allowances. Given our anticipated future earnings in Vietnam, it is reasonably possible that, within the next 12 months, sufficient positive evidence may become available to allow us to reverse the valuation allowance in that jurisdiction. However, the exact timing and amount of such reversal is subject to change depending on our future earnings in Vietnam and other factors. We account for uncertain tax positions pursuant to the recognition and measurement criteria under ASC 740. It is reasonably possible that $63.3 million of uncertain tax positions will be recognized within the next 12 months due to the expiration of the statute of limitations associated with such positions. We are subject to audit by federal, state, local, and foreign tax authorities. We are currently under examination in Chile, India, Malaysia, and the state of California. We believe that adequate provisions have been made for any adjustments that may result from tax examinations. However, the outcome of tax examinations cannot be predicted with certainty. If any issues addressed by our tax examinations 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. |
14. Net Income (Loss) Per Share
14. Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | 14. Net Income (Loss) per Share The calculation of basic and diluted net income (loss) per share for the three and nine months ended September 30, 2020 and 2019 was as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Basic net income (loss) per share Numerator: Net income (loss) $ 155,037 $ 30,622 $ 282,652 $ (55,525) Denominator: Weighted-average common shares outstanding 105,967 105,397 105,830 105,272 Diluted net income (loss) per share Denominator: Weighted-average common shares outstanding 105,967 105,397 105,830 105,272 Effect of restricted and performance stock units and stock purchase plan shares 784 830 707 — Weighted-average shares used in computing diluted net income (loss) per share 106,751 106,227 106,537 105,272 Net income (loss) per share: Basic $ 1.46 $ 0.29 $ 2.67 $ (0.53) Diluted $ 1.45 $ 0.29 $ 2.65 $ (0.53) The following table summarizes the shares of common stock that were excluded from the computation of diluted net income (loss) per share for the three and nine months ended September 30, 2020 and 2019 as such shares would have had an anti-dilutive effect (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Anti-dilutive shares 1 — — 787 |
15. Accumulated Other Comprehen
15. Accumulated Other Comprehensive Loss (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 15. Accumulated Other Comprehensive Loss The following table presents the changes in accumulated other comprehensive loss, net of tax, for the nine months ended September 30, 2020 (in thousands): Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Marketable Securities and Restricted Marketable Securities Unrealized Gain (Loss) on Derivative Instruments Total Balance as of December 31, 2019 $ (73,429) $ (5,029) $ (876) $ (79,334) Other comprehensive income (loss) before reclassifications 922 36,994 (2,357) 35,559 Amounts reclassified from accumulated other comprehensive loss (370) (15,346) 647 (15,069) Net tax effect — (822) (31) (853) Net other comprehensive income (loss) 552 20,826 (1,741) 19,637 Balance as of September 30, 2020 $ (72,877) $ 15,797 $ (2,617) $ (59,697) The following table presents the pretax amounts reclassified from accumulated other comprehensive loss into our condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019 (in thousands): Comprehensive Income Components Income Statement Line Item Three Months Ended Nine Months Ended 2020 2019 2020 2019 Foreign currency translation adjustment Cost of sales $ 370 $ — $ 370 $ 1,190 Unrealized gain on marketable securities and restricted marketable securities Other expense, net 9 — 15,346 15,016 Unrealized (loss) gain on derivative contracts: Foreign exchange forward contracts Net sales — — — 124 Foreign exchange forward contracts Cost of sales (334) — (647) 1,081 Total unrealized (loss) gain on derivative contracts (334) — (647) 1,205 Total amount reclassified $ 45 $ — $ 15,069 $ 17,411 |
16. Segment Reporting
16. Segment Reporting | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting Information, Profit (Loss) [Abstract] | |
Segment Reporting | 16. Segment Reporting We operate our business in two segments. Our modules segment involves the design, manufacture, and sale of cadmium telluride (“CdTe”) solar modules, which convert sunlight into electricity. Third-party customers of our modules segment include integrators and operators of PV solar power systems. Our second segment is our systems segment, through which we provide power plant solutions, which include (i) project development, (ii) EPC services, and (iii) O&M services. We may provide any combination of individual products and services within such capabilities (including, with respect to EPC services, by contracting with third parties) depending upon the customer and market opportunity. Our systems segment customers include utilities, independent power producers, commercial and industrial companies, and other system owners. As part of our systems segment, we may also temporarily own and operate certain of our systems for a period of time based on strategic opportunities or market factors. See Note 21. “Segment and Geographical Information” in our Annual Report on Form 10-K for the year ended December 31, 2019 for additional discussion of our segment reporting. The following tables present certain financial information for our reportable segments for the three and nine months ended September 30, 2020 and 2019 and as of September 30, 2020 and December 31, 2019 (in thousands): Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Modules Systems Total Modules Systems Total Net sales $ 422,480 $ 505,085 $ 927,565 $ 371,184 $ 175,622 $ 546,806 Gross profit (loss) 124,822 168,193 293,015 147,806 (9,443) 138,363 Depreciation and amortization expense 43,137 4,982 48,119 38,063 6,628 44,691 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Modules Systems Total Modules Systems Total Net sales $ 1,187,679 $ 914,421 $ 2,102,100 $ 798,744 $ 864,996 $ 1,663,740 Gross profit 280,115 240,698 520,813 134,293 81,364 215,657 Depreciation and amortization expense 132,529 17,477 150,006 118,448 15,206 133,654 September 30, 2020 December 31, 2019 Modules Systems Total Modules Systems Total Goodwill $ 14,462 $ — $ 14,462 $ 14,462 $ — $ 14,462 |
3. Cash, Cash Equivalents, an_2
3. Cash, Cash Equivalents, and Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Schedule of Cash, Cash Equivalent, and Marketable Securities | Cash, cash equivalents, and marketable securities consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Cash and cash equivalents: Cash $ 1,276,662 $ 1,345,419 Money market funds 392 7,322 Total cash and cash equivalents 1,277,054 1,352,741 Marketable securities: Foreign debt 214,436 387,820 Foreign government obligations — 22,011 U.S. debt 14,561 66,134 Time deposits 124,822 335,541 Total marketable securities 353,819 811,506 Total cash, cash equivalents, and marketable securities $ 1,630,873 $ 2,164,247 |
Reconciliation of Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within our condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019 to the total of such amounts as presented in the condensed consolidated statement of cash flows (in thousands): Balance Sheet Line Item September 30, December 31, Cash and cash equivalents Cash and cash equivalents $ 1,277,054 $ 1,352,741 Restricted cash – current Prepaid expenses and other current assets 1,516 13,697 Restricted cash – noncurrent Other assets 38,119 80,072 Total cash, cash equivalents, and restricted cash $ 1,316,689 $ 1,446,510 |
Available-for-sale Marketable 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, 2020 and December 31, 2019 (in thousands): As of September 30, 2020 Amortized Unrealized Unrealized Allowance for Credit Losses Fair Foreign debt $ 214,045 $ 467 $ 66 $ 10 $ 214,436 U.S. debt 14,508 53 — — 14,561 Time deposits 124,860 — — 38 124,822 Total $ 353,413 $ 520 $ 66 $ 48 $ 353,819 As of December 31, 2019 Amortized Unrealized Unrealized Fair Foreign debt $ 387,775 $ 551 $ 506 $ 387,820 Foreign government obligations 21,991 20 — 22,011 U.S. debt 65,970 176 12 66,134 Time deposits 335,541 — — 335,541 Total $ 811,277 $ 747 $ 518 $ 811,506 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | The following table presents the change in the allowance for credit losses related to our available-for-sale marketable securities for the nine months ended September 30, 2020 (in thousands): Marketable Securities Balance as of December 31, 2019 $ — Cumulative-effect adjustment for the adoption of ASU 2016-13 207 Provision for credit losses, net 215 Sales and maturities of marketable securities (374) Balance as of September 30, 2020 $ 48 |
Available-for-sale Marketable Securities by Maturity | The contractual maturities of our marketable securities as of September 30, 2020 were as follows (in thousands): Fair One year or less $ 197,152 One year to two years 150,639 Two years to three years 6,028 Total $ 353,819 |
4. Restricted Marketable Secu_2
4. Restricted Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Securities, Available-for-sale, Restricted [Abstract] | |
Schedule of Restricted Marketable Securities | Restricted marketable securities consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Foreign government obligations $ 141,728 $ 126,066 U.S. government obligations 119,779 97,719 Total restricted marketable securities $ 261,507 $ 223,785 |
Restricted Available-for-sale Marketable Securities | The following tables summarize the unrealized gains and losses related to our restricted marketable securities, by major security type, as of September 30, 2020 and December 31, 2019 (in thousands): As of September 30, 2020 Amortized Unrealized Unrealized Allowance for Credit Losses Fair Foreign government obligations $ 130,002 $ 11,726 $ — $ — $ 141,728 U.S. government obligations 115,349 4,430 — — 119,779 Total $ 245,351 $ 16,156 $ — $ — $ 261,507 As of December 31, 2019 Amortized Unrealized Unrealized Fair Foreign government obligations $ 129,499 $ — $ 3,433 $ 126,066 U.S. government obligations 99,700 — 1,981 97,719 Total $ 229,199 $ — $ 5,414 $ 223,785 |
Restricted Debt Securities, Available-for-sale, Allowance for Credit Loss | The following table presents the change in the allowance for credit losses related to our restricted marketable securities for the nine months ended September 30, 2020 (in thousands): Restricted Marketable Securities Balance as of December 31, 2019 $ — Cumulative-effect adjustment for the adoption of ASU 2016-13 54 Provision for credit losses, net (29) Sales of restricted marketable securities (25) Balance as of September 30, 2020 $ — |
5. Consolidated Balance Sheet_2
5. Consolidated Balance Sheet Details (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable trade, net Accounts receivable trade, net consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Accounts receivable trade, gross $ 221,196 $ 476,425 Allowance for credit losses (2,413) (1,386) Accounts receivable trade, net $ 218,783 $ 475,039 At September 30, 2020 and December 31, 2019, $25.0 million and $44.9 million, respectively, of our trade accounts receivable were secured by letters of credit, bank guarantees, surety bonds, or other forms of financial security issued by creditworthy financial institutions. Accounts receivable, unbilled and retainage, net Accounts receivable, unbilled and retainage, net consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Accounts receivable, unbilled $ 78,001 $ 162,057 Retainage 11,367 21,416 Allowance for credit losses (919) — Accounts receivable, unbilled and retainage, net $ 88,449 $ 183,473 |
Schedule of Allowance for Credit Loss | The following table presents the change in the allowances for credit losses related to our accounts receivable for the nine months ended September 30, 2020 (in thousands): Accounts Receivable Trade Accounts Receivable, Unbilled and Retainage Balance as of December 31, 2019 $ (1,386) $ — Cumulative-effect adjustment for the adoption of ASU 2016-13 (171) (459) Provision for credit losses, net (1) (1,421) (635) Writeoffs 565 175 Balance as of September 30, 2020 $ (2,413) $ (919) —————————— (1) Includes credit losses for trade accounts receivable and unbilled accounts receivable of $1.8 million and $0.7 million, respectively, to reflect our estimate of expected credit losses attributable to the current economic conditions resulting from the ongoing COVID-19 pandemic. |
Schedule of Inventories, Current and Noncurrent | Inventories consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Raw materials $ 275,309 $ 248,756 Work in process 67,273 59,924 Finished goods 422,723 295,479 Inventories $ 765,305 $ 604,159 Inventories – current $ 567,785 $ 443,513 Inventories – noncurrent $ 197,520 $ 160,646 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Prepaid expenses $ 153,772 $ 137,927 Prepaid income taxes 50,173 47,811 Indirect tax receivables 3,238 29,908 Restricted cash 1,516 13,697 Derivative instruments (1) 1,320 1,199 Notes receivable, net (2) — 23,873 Other current assets 14,073 22,040 Prepaid expenses and other current assets $ 224,092 $ 276,455 —————————— (1) See Note 6. “Derivative Financial Instruments” to our condensed consolidated financial statements for discussion of our derivative instruments. (2) In November 2014 and February 2016, we entered into a term loan agreement and a convertible loan agreement, respectively, with Clean Energy Collective, LLC (“CEC”). Our term loan bears interest at 16% per annum, and our convertible loan bears interest at 10% per annum. In November 2018, we amended the terms of the loan agreements to (i) extend their maturity to June 2020, (ii) waive the conversion features on our convertible loan, and (iii) increase the frequency of interest payments, subject to certain conditions. We assess CEC’s credit quality based primarily on certain quarterly financial information, which was last provided during the three months ended September 30, 2020. As of December 31, 2019, the aggregate balance outstanding on the loans was $23.9 million. Upon the adoption of ASU 2016-13, we evaluated the estimated credit losses over the remaining contractual term of the loan agreements based on a discounted cash flow model. As a result of this evaluation, we recorded an allowance for credit losses of $10.8 million as of January 1, 2020. During the nine months ended September 30, 2020, we recorded incremental credit losses of $13.1 million due to CEC’s inability to repay the loans by their contractual maturity date. In September 2020, we wrote off the aggregate outstanding loan balance against the associated allowance for credit losses based on our determination that the loans are uncollectible. |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Land $ 14,363 $ 14,241 Buildings and improvements 666,637 664,266 Machinery and equipment 2,101,726 2,436,997 Office equipment and furniture 143,242 159,848 Leasehold improvements 43,795 48,772 Construction in progress 467,513 243,107 Property, plant and equipment, gross 3,437,276 3,567,231 Accumulated depreciation (1,050,685) (1,386,082) Property, plant and equipment, net $ 2,386,591 $ 2,181,149 |
Schedule of PV Solar Power Systems, Net | Photovoltaic (“PV”) solar power systems, net consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, PV solar power systems, gross $ 313,048 $ 530,004 Accumulated depreciation (55,648) (53,027) PV solar power systems, net $ 257,400 $ 476,977 |
Schedule of Project Assets | Project assets consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Project assets – development costs, including project acquisition and land costs $ 232,116 $ 254,466 Project assets – construction costs 131,883 82,654 Project assets $ 363,999 $ 337,120 Project assets – current $ 1,222 $ 3,524 Project assets – noncurrent $ 362,777 $ 333,596 |
Schedule of Capitalized Interest | The components of interest expense and capitalized interest were as follows during the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Interest cost incurred $ (11,672) $ (5,239) $ (22,362) $ (26,348) Interest cost capitalized – project assets 697 263 1,344 2,330 Interest expense, net $ (10,975) $ (4,976) $ (21,018) $ (24,018) |
Schedule of Other Assets, Noncurrent | Other assets consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Operating lease assets (1) $ 223,554 $ 145,711 Advanced payments for raw materials 98,733 59,806 Restricted cash 38,119 80,072 Indirect tax receivables 12,154 9,446 Notes receivable (2) 8,556 8,194 Income taxes receivable 4,132 4,106 Equity method investments 3,013 2,812 Other 47,397 19,779 Other assets $ 435,658 $ 329,926 —————————— (1) See Note 7. “Leases” to our condensed consolidated financial statements for discussion of our lease arrangements. (2) 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 bears interest at 8.0% per annum, payable quarterly, with the full amount due in December 2026. As of September 30, 2020 and December 31, 2019, the balance outstanding on the credit facility was €7.0 million ($8.2 million and $7.8 million, respectively). In October 2020, the project entity repaid the outstanding balance of the credit facility. |
Schedule of Goodwill | Goodwill for the relevant reporting unit consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): December 31, Acquisitions (Impairments) September 30, Modules $ 407,827 $ — $ 407,827 Accumulated impairment losses (393,365) — (393,365) Goodwill $ 14,462 $ — $ 14,462 |
Schedule of Intangible Assets, Net | The following tables summarize our intangible assets at September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Gross Amount Accumulated Amortization Net Amount Developed technology $ 99,964 $ (49,647) $ 50,317 Power purchase agreements 6,486 (1,216) 5,270 Patents 7,780 (4,898) 2,882 Intangible assets, net $ 114,230 $ (55,761) $ 58,469 December 31, 2019 Gross Amount Accumulated Amortization Net Amount Developed technology $ 97,964 $ (42,344) $ 55,620 Power purchase agreements 6,486 (972) 5,514 Patents 7,780 (4,371) 3,409 Intangible assets, net $ 112,230 $ (47,687) $ 64,543 |
Schedule of Assets and Liabilities Held-for-sale | The following table summarizes our assets and liabilities held for sale at September 30, 2020 (in thousands): September 30, Accounts receivable trade, net $ 16,604 Accounts receivable, unbilled and retainage, net 2,562 Inventories 127 Balance of systems parts 28 Prepaid expenses and other current assets 10,592 Property, plant and equipment, net 5,061 Other assets 35 Assets held for sale $ 35,009 Accounts payable $ 1,498 Accrued expenses 5,183 Deferred revenue 603 Other current liabilities 903 Other liabilities 4,534 Liabilities held for sale $ 12,721 |
Schedule of Accrued Expenses | Accrued expenses consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Accrued property, plant and equipment $ 100,299 $ 42,834 Accrued project costs 61,198 91,971 Accrued compensation and benefits 39,698 65,170 Product warranty liability (1) 22,325 20,291 Accrued inventory 18,143 39,366 Other 56,470 91,628 Accrued expenses $ 298,133 $ 351,260 —————————— (1) See Note 10. “Commitments and Contingencies” to our condensed consolidated financial statements for discussion of our “Product Warranties.” |
Schedule of Other Current Liabilities | Other current liabilities consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Other taxes payable $ 31,715 $ 994 Operating lease liabilities (1) 14,506 11,102 Derivative instruments (2) 3,120 2,582 Contingent consideration (3) 2,082 2,395 Other 26,713 11,057 Other current liabilities $ 78,136 $ 28,130 —————————— (1) See Note 7. “Leases” to our condensed consolidated financial statements for discussion of our lease arrangements. (2) See Note 6. “Derivative Financial Instruments” to our condensed consolidated financial statements for discussion of our derivative instruments. (3) See Note 10. “Commitments and Contingencies” to our condensed consolidated financial statements for discussion of our “Contingent Consideration” arrangements |
Schedule of Other Liabilities | Other liabilities consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, Operating lease liabilities (1) $ 184,887 $ 112,515 Other taxes payable 95,536 90,201 Product warranty liability (2) 75,028 109,506 Transition tax liability 62,385 70,047 Deferred revenue 45,990 71,438 Contingent consideration (2) 4,500 4,500 Derivative instruments (3) 107 7,439 Other 43,530 43,120 Other liabilities $ 511,963 $ 508,766 —————————— (1) See Note 7. “Leases” to our condensed consolidated financial statements for discussion of our lease arrangements. (2) See Note 10. “Commitments and Contingencies” to our condensed consolidated financial statements for discussion of our “Product Warranties” and “Contingent Consideration” arrangements. (3) See Note 6. “Derivative Financial Instruments” to our condensed consolidated financial statements for discussion of our derivative instruments. |
6. Derivative Financial Instr_2
6. Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables present the fair values of derivative instruments included in our condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Prepaid Expenses and Other Current Assets Other Current Liabilities Other Liabilities Derivatives designated as hedging instruments: Foreign exchange forward contracts $ — $ 1,152 $ 107 Commodity swap contracts — 228 — Total derivatives designated as hedging instruments $ — $ 1,380 $ 107 Derivatives not designated as hedging instruments: Foreign exchange forward contracts $ 1,320 $ 1,740 $ — Total derivatives not designated as hedging instruments $ 1,320 $ 1,740 $ — Total derivative instruments $ 1,320 $ 3,120 $ 107 December 31, 2019 Prepaid Expenses and Other Current Assets Other Assets Other Current Liabilities Other Liabilities Derivatives designated as hedging instruments: Foreign exchange forward contracts $ 226 $ 139 $ 369 $ 230 Total derivatives designated as hedging instruments $ 226 $ 139 $ 369 $ 230 Derivatives not designated as hedging instruments: Foreign exchange forward contracts $ 973 $ — $ 1,807 $ — Interest rate swap contracts — — 406 7,209 Total derivatives not designated as hedging instruments $ 973 $ — $ 2,213 $ 7,209 Total derivative instruments $ 1,199 $ 139 $ 2,582 $ 7,439 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the pretax 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, 2020 and 2019 (in thousands): Foreign Exchange Forward Contracts Commodity Swap Contracts Total Balance as of December 31, 2019 $ (962) $ — $ (962) Amounts recognized in other comprehensive income (loss) (2,129) (228) (2,357) Amounts reclassified to earnings impacting: Cost of sales 647 — 647 Balance as of September 30, 2020 $ (2,444) $ (228) $ (2,672) Balance as of December 31, 2018 $ 1,329 $ — $ 1,329 Amounts recognized in other comprehensive income (loss) 153 — 153 Amounts reclassified to earnings impacting: Net sales (124) — (124) Cost of sales (1,081) — (1,081) Balance as of September 30, 2019 $ 277 $ — $ 277 |
Schedule of Derivative Instruments, Gain (Loss) [Table Text Block] | The following table presents gains and losses related to derivative instruments not designated as hedges affecting our condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019 (in thousands): Amount of Gain (Loss) Recognized in Income Three Months Ended Nine Months Ended Income Statement Line Item 2020 2019 2020 2019 Interest rate swap contracts Cost of sales $ — $ — $ — $ (1,656) Foreign exchange forward contracts Cost of sales (195) — (73) — Foreign exchange forward contracts Foreign currency (loss) income, net (2,598) 3,635 (2,405) 883 Interest rate swap contracts Interest expense, net (5,878) (357) (7,259) (10,089) |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | As of September 30, 2020 and December 31, 2019, 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, 2020 Currency Notional Amount USD Equivalent U.S. dollar (1) $44.5 $44.5 December 31, 2019 Currency Notional Amount USD Equivalent U.S. dollar (1) $69.9 $69.9 —————————— (1) These derivative instruments represent hedges of outstanding payables denominated in U.S. dollars at certain of our foreign subsidiaries whose functional currencies are other than the U.S. dollar. |
Schedule of Notional Value of Foreign Exchange Forward Derivatives [Table Text Block] | As of September 30, 2020 and December 31, 2019, 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, 2020 Transaction Currency Notional Amount USD Equivalent Purchase Australian dollar AUD 6.2 $4.4 Purchase Brazilian real BRL 2.6 $0.5 Sell Canadian dollar CAD 10.0 $7.5 Sell Chilean peso CLP 1,684.5 $2.2 Purchase Euro €102.7 $120.4 Sell Euro €58.5 $68.6 Purchase Indian rupee INR 126.2 $1.7 Sell Indian rupee INR 743.1 $10.1 Purchase Japanese yen ¥3,146.6 $29.8 Sell Japanese yen ¥45,682.0 $432.7 Purchase Malaysian ringgit MYR 44.9 $10.8 Sell Malaysian ringgit MYR 48.7 $11.7 Sell Mexican peso MXN 34.6 $1.6 Purchase Singapore dollar SGD 2.9 $2.1 December 31, 2019 Transaction Currency Notional Amount USD Equivalent Purchase Australian dollar AUD 14.9 $10.4 Sell Australian dollar AUD 11.1 $7.8 Purchase Brazilian real BRL 13.2 $3.3 Sell Brazilian real BRL 4.3 $1.1 Purchase Canadian dollar CAD 4.5 $3.4 Sell Canadian dollar CAD 1.6 $1.2 Purchase Chilean peso CLP 1,493.1 $2.0 Sell Chilean peso CLP 3,866.1 $5.1 Purchase Euro €86.1 $96.5 Sell Euro €116.3 $130.3 Sell Indian rupee INR 1,283.8 $18.0 Purchase Japanese yen ¥3,625.5 $33.3 Sell Japanese yen ¥23,089.5 $212.2 Purchase Malaysian ringgit MYR 88.6 $21.6 Sell Malaysian ringgit MYR 41.3 $10.1 Sell Mexican peso MXN 34.6 $1.8 Purchase Singapore dollar SGD 2.9 $2.2 |
7. Leases (Tables)
7. Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of operating lease cost and related information | The following table presents certain quantitative information related to our lease arrangements for the three and nine months ended September 30, 2020 and 2019, and as of September 30, 2020 and December 31, 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Operating lease cost $ 4,798 $ 5,788 $ 13,694 $ 16,607 Variable lease cost 628 904 1,919 2,592 Short-term lease cost 1,112 1,118 2,817 6,818 Total lease cost $ 6,538 $ 7,810 $ 18,430 $ 26,017 Payments of amounts included in the measurement of operating lease liabilities $ 15,756 $ 15,995 Lease assets obtained in exchange for operating lease liabilities $ 93,992 $ 172,760 September 30, December 31, Operating lease assets $ 223,554 $ 145,711 Operating lease liabilities – current 14,506 11,102 Operating lease liabilities – noncurrent 184,887 112,515 Weighted-average remaining lease term 20 years 15 years Weighted-average discount rate 3.0 % 4.3 % |
Operating lease liability maturity | As of September 30, 2020, the future payments associated with our lease liabilities were as follows (in thousands): Total Lease Liabilities Remainder of 2020 $ 3,795 2021 18,354 2022 17,600 2023 17,104 2024 16,815 2025 16,360 Thereafter 159,244 Total future payments 249,272 Less: interest (49,879) Total lease liabilities $ 199,393 |
8. Fair Value Measurements (Tab
8. Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value of assets and liabilities measured on a recurring basis | At September 30, 2020 and December 31, 2019, the fair value measurements of our assets and liabilities measured on a recurring basis were as follows (in thousands): Fair Value Measurements at Reporting September 30, Quoted Prices Significant Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 392 $ 392 $ — $ — Marketable securities: Foreign debt 214,436 — 214,436 — U.S. debt 14,561 — 14,561 — Time deposits 124,822 124,822 — — Restricted marketable securities 261,507 — 261,507 — Derivative assets 1,320 — 1,320 — Total assets $ 617,038 $ 125,214 $ 491,824 $ — Liabilities: Derivative liabilities $ 3,227 $ — $ 3,227 $ — Fair Value Measurements at Reporting December 31, Quoted Prices Significant Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 7,322 $ 7,322 $ — $ — Marketable securities: Foreign debt 387,820 — 387,820 — Foreign government obligations 22,011 — 22,011 — U.S. debt 66,134 — 66,134 — Time deposits 335,541 335,541 — — Restricted marketable securities 223,785 — 223,785 — Derivative assets 1,338 — 1,338 — Total assets $ 1,043,951 $ 342,863 $ 701,088 $ — Liabilities: Derivative liabilities $ 10,021 $ — $ 10,021 $ — |
Carrying value and fair value of financial instruments not measured at fair value | At September 30, 2020 and December 31, 2019, the carrying values and fair values of our financial instruments not measured at fair value were as follows (in thousands): September 30, 2020 December 31, 2019 Carrying Fair Carrying Fair Assets: Notes receivable – current (1) $ — $ — $ 23,873 $ 24,929 Notes receivable – noncurrent (1) 8,556 9,872 8,194 10,276 Liabilities: Long-term debt, including current maturities (2) $ 269,097 $ 265,022 $ 482,892 $ 504,213 —————————— (1) See Note 5. “Consolidated Balance Sheet Details” for further information about the allowance for credit losses for our notes receivable. (2) Excludes unamortized discounts and issuance costs. |
9. Debt (Tables)
9. Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments | Our long-term debt consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): Balance (USD) Loan Agreement Currency September 30, December 31, Revolving Credit Facility USD $ — $ — Luz del Norte Credit Facilities USD 186,931 188,017 Ishikawa Credit Agreement JPY — 215,879 Japan Credit Facility JPY 13,481 1,678 Tochigi Credit Facility JPY 38,452 37,304 Anamizu Credit Agreement JPY — 12,138 Kyoto Credit Facility JPY 30,233 — Anantapur Credit Facility INR — 15,123 Tungabhadra Credit Facility INR — 12,753 Long-term debt principal 269,097 482,892 Less: unamortized discounts and issuance costs (8,229) (11,195) Total long-term debt 260,868 471,697 Less: current portion (40,412) (17,510) Noncurrent portion $ 220,456 $ 454,187 |
Schedule of Borrowing Rate on Debt | Our long-term debt borrowing rates as of September 30, 2020 were as follows: Loan Agreement September 30, 2020 Revolving Credit Facility 2.15% Luz del Norte Credit Facilities (1) 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% Japan Credit Facility 1-month TIBOR plus 0.55% Tochigi Credit Facility 3-month TIBOR plus 1.00% Kyoto Credit Facility 1-month TIBOR plus 0.60% —————————— (1) Outstanding balance comprised of $146.4 million of fixed rate loans and $40.5 million of variable rate loans as of September 30, 2020. |
Schedule of Maturities of Long-term Debt | At September 30, 2020, the future principal payments on our long-term debt were due as follows (in thousands): Total Debt Remainder of 2020 $ 701 2021 40,853 2022 17,516 2023 36,318 2024 7,020 2025 7,560 Thereafter 159,129 Total long-term debt future principal payments $ 269,097 |
10. Commitments and Contingen_2
10. Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | Product warranty activities during the three and nine months ended September 30, 2020 and 2019 were as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Product warranty liability, beginning of period $ 123,194 $ 217,991 $ 129,797 $ 220,692 Accruals for new warranties issued 3,435 1,723 7,903 11,636 Settlements (9,289) (4,211) (18,772) (10,233) Changes in estimate of product warranty liability (19,987) (77,598) (21,575) (84,190) Product warranty liability, end of period $ 97,353 $ 137,905 $ 97,353 $ 137,905 Current portion of warranty liability $ 22,325 $ 19,526 $ 22,325 $ 19,526 Noncurrent portion of warranty liability $ 75,028 $ 118,379 $ 75,028 $ 118,379 |
11. Revenue from Contracts wi_2
11. Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue, by Type of Revenue [Table Text Block] | The following table represents a disaggregation of revenue from contracts with customers for the three and nine months ended September 30, 2020 and 2019 along with the reportable segment for each category (in thousands): Three Months Ended Nine Months Ended Category Segment 2020 2019 2020 2019 Solar modules Modules $ 422,480 $ 371,184 $ 1,187,679 $ 798,744 Solar power systems Systems 471,174 79,792 776,724 454,841 O&M services Systems 28,061 28,245 89,237 82,397 Energy generation (1) Systems 14,335 20,366 54,884 40,488 EPC services (2) Systems (8,485) 47,219 (6,424) 287,270 Net sales $ 927,565 $ 546,806 $ 2,102,100 $ 1,663,740 —————————— (1) During the three and nine months ended September 30, 2020, the majority of energy generated and sold by our PV solar power systems was accounted for under ASC 840 consistent with the classification of the associated PPAs. (2) For certain of our EPC agreements, we provide an energy performance test during the first or second year of a system’s operation to demonstrate that the actual energy generation for the applicable period meets or exceeds the modeled energy expectation, after certain adjustments. If there is an underperformance event with regard to these tests, we may incur liquidated damages as specified in the applicable EPC agreement. During the three months ended September 30, 2020, we accrued liquidated damages for certain of these arrangements, which we recognized as a reduction to revenue. See Note 10. “Commitments and Contingencies” to our condensed consolidated financial statements for discussion of our performance guarantee arrangements. |
Changes in Estimates Systems Business [Table Text Block] | The following table outlines the impact on revenue of net changes in estimated transaction prices and input costs for systems related sales contracts (both increases and decreases) for the three and nine months ended September 30, 2020 and 2019 as well as the number of projects that comprise such changes. For purposes of the table, we only include projects with changes in estimates that have a net impact on revenue 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 revenue for such projects. Three Months Ended Nine Months Ended 2020 2019 2020 2019 Number of projects 6 4 12 4 (Decrease) increase in revenue from net changes in transaction prices (in thousands) $ (16,319) $ (2,435) $ (25,470) $ 3,649 Increase (decrease) in revenue from net changes in input cost estimates (in thousands) 24 (6,676) (2,483) (15,645) Net decrease in revenue from net changes in estimates (in thousands) $ (16,295) $ (9,111) $ (27,953) $ (11,996) Net change in estimate as a percentage of aggregate revenue (1.3) % (0.6) % (1.3) % (1.6) % |
Changes in Contract Assets and Liabilities [Table Text Block] | The following table reflects the changes in our contract assets, which we classify as “Accounts receivable, unbilled” or “Retainage,” and our contract liabilities, which we classify as “Deferred revenue,” for the nine months ended September 30, 2020, excluding any assets or liabilities classified as held for sale as of September 30, 2020 (in thousands): September 30, December 31, Nine Month Change Accounts receivable, unbilled (1) $ 97,281 $ 162,057 Retainage 11,367 21,416 Allowance for credit losses (919) — Accounts receivable, unbilled and retainage, net $ 107,729 $ 183,473 $ (75,744) (41) % Deferred revenue (2) $ 161,582 $ 394,655 $ (233,073) (59) % —————————— (1) Includes $19.3 million of long-term accounts receivable, unbilled classified as “Other assets” on our condensed consolidated balance sheet as of September 30, 2020. (2) Includes $46.0 million and $71.4 million of long-term deferred revenue classified as “Other liabilities” on our condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019, respectively. |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | The following table represents our remaining performance obligations as of September 30, 2020 for sales of solar power systems, including uncompleted sold projects and projects under contracts subject to conditions precedent. Such table excludes remaining performance obligations for sales arrangements that had not fully satisfied the criteria to be considered a contract with a customer pursuant to the requirements of ASC 606. We expect to recognize $11.7 million of revenue for such contracts through the substantial completion dates of the projects. Project/Location Project Size in MW AC Revenue Category Customer Expected Year Revenue Recognition Will Be Completed Percentage of Revenue Recognized GA Solar 4, Georgia 200 Solar power systems Origis Energy USA 2020 96% Seabrook, South Carolina 72 Solar power systems Dominion Energy 2020 98% Total 272 |
12. Share-Based Compensation (T
12. Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents share-based compensation expense recognized in our condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Cost of sales $ 1,099 $ 1,719 $ 2,554 $ 5,520 Selling, general and administrative 5,562 6,243 13,323 15,627 Research and development 548 1,525 2,312 4,067 Production start-up — 139 — 194 Total share-based compensation expense $ 7,209 $ 9,626 $ 18,189 $ 25,408 |
14. Net Income (Loss) Per Sha_2
14. Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculation of basic and diluted net income (loss) per share for the three and nine months ended September 30, 2020 and 2019 was as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Basic net income (loss) per share Numerator: Net income (loss) $ 155,037 $ 30,622 $ 282,652 $ (55,525) Denominator: Weighted-average common shares outstanding 105,967 105,397 105,830 105,272 Diluted net income (loss) per share Denominator: Weighted-average common shares outstanding 105,967 105,397 105,830 105,272 Effect of restricted and performance stock units and stock purchase plan shares 784 830 707 — Weighted-average shares used in computing diluted net income (loss) per share 106,751 106,227 106,537 105,272 Net income (loss) per share: Basic $ 1.46 $ 0.29 $ 2.67 $ (0.53) Diluted $ 1.45 $ 0.29 $ 2.65 $ (0.53) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the shares of common stock that were excluded from the computation of diluted net income (loss) per share for the three and nine months ended September 30, 2020 and 2019 as such shares would have had an anti-dilutive effect (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Anti-dilutive shares 1 — — 787 |
15. Accumulated Other Compreh_2
15. Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table presents the changes in accumulated other comprehensive loss, net of tax, for the nine months ended September 30, 2020 (in thousands): Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Marketable Securities and Restricted Marketable Securities Unrealized Gain (Loss) on Derivative Instruments Total Balance as of December 31, 2019 $ (73,429) $ (5,029) $ (876) $ (79,334) Other comprehensive income (loss) before reclassifications 922 36,994 (2,357) 35,559 Amounts reclassified from accumulated other comprehensive loss (370) (15,346) 647 (15,069) Net tax effect — (822) (31) (853) Net other comprehensive income (loss) 552 20,826 (1,741) 19,637 Balance as of September 30, 2020 $ (72,877) $ 15,797 $ (2,617) $ (59,697) |
Reclassification out of Accumulated Other Comprehensive Loss | The following table presents the pretax amounts reclassified from accumulated other comprehensive loss into our condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019 (in thousands): Comprehensive Income Components Income Statement Line Item Three Months Ended Nine Months Ended 2020 2019 2020 2019 Foreign currency translation adjustment Cost of sales $ 370 $ — $ 370 $ 1,190 Unrealized gain on marketable securities and restricted marketable securities Other expense, net 9 — 15,346 15,016 Unrealized (loss) gain on derivative contracts: Foreign exchange forward contracts Net sales — — — 124 Foreign exchange forward contracts Cost of sales (334) — (647) 1,081 Total unrealized (loss) gain on derivative contracts (334) — (647) 1,205 Total amount reclassified $ 45 $ — $ 15,069 $ 17,411 |
16. Segment Reporting (Tables)
16. Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting Information, Profit (Loss) [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables present certain financial information for our reportable segments for the three and nine months ended September 30, 2020 and 2019 and as of September 30, 2020 and December 31, 2019 (in thousands): Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Modules Systems Total Modules Systems Total Net sales $ 422,480 $ 505,085 $ 927,565 $ 371,184 $ 175,622 $ 546,806 Gross profit (loss) 124,822 168,193 293,015 147,806 (9,443) 138,363 Depreciation and amortization expense 43,137 4,982 48,119 38,063 6,628 44,691 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Modules Systems Total Modules Systems Total Net sales $ 1,187,679 $ 914,421 $ 2,102,100 $ 798,744 $ 864,996 $ 1,663,740 Gross profit 280,115 240,698 520,813 134,293 81,364 215,657 Depreciation and amortization expense 132,529 17,477 150,006 118,448 15,206 133,654 September 30, 2020 December 31, 2019 Modules Systems Total Modules Systems Total Goodwill $ 14,462 $ — $ 14,462 $ 14,462 $ — $ 14,462 |
2. Recent Accounting Pronounc_2
2. Recent Accounting Pronouncements (Details) - Accounting Standards Update 2016-13 - Cumulative effect adjustment for the adoption of ASU 2016-13 $ in Thousands | Dec. 31, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (9,213) |
Accumulated Earnings [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (9,213) |
3. Cash, Cash Equivalents, an_3
3. Cash, Cash Equivalents, and Marketable Securities (Details) - Cash, Cash Equivalents, and Marketable Securities - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||||
Cash and cash equivalents | $ 1,277,054 | $ 1,277,054 | $ 1,352,741 | |||
Marketable securities | 353,819 | 353,819 | 811,506 | |||
Total cash, cash equivalents, and marketable securities | 1,630,873 | 1,630,873 | 2,164,247 | |||
Restricted cash - current | 1,516 | 1,516 | 13,697 | |||
Restricted cash - noncurrent | 38,119 | 38,119 | 80,072 | |||
Cash, cash equivalents, and restricted cash | 1,316,689 | $ 975,506 | 1,316,689 | $ 975,506 | 1,446,510 | $ 1,562,623 |
Marketable Securities, Sale Proceeds | 27,600 | 32,000 | 188,100 | 52,000 | ||
Marketable Securities, Realized Gain | 100 | $ 0 | 200 | $ 0 | ||
Foreign debt [Member] | ||||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||||
Marketable securities | 214,436 | 214,436 | 387,820 | |||
Foreign government obligations [Member] | ||||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||||
Marketable securities | 0 | 0 | 22,011 | |||
U.S debt [Member] | ||||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||||
Marketable securities | 14,561 | 14,561 | 66,134 | |||
Time deposits [Member] | ||||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||||
Marketable securities | 124,822 | 124,822 | 335,541 | |||
Cash [Member] | ||||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||||
Cash and cash equivalents | 1,276,662 | 1,276,662 | 1,345,419 | |||
Money Market Funds [Member] | ||||||
Cash, Cash Equivalents, and Marketable Securities [Line Items] | ||||||
Cash and cash equivalents | $ 392 | $ 392 | $ 7,322 |
3. Cash, Cash Equivalents, an_4
3. Cash, Cash Equivalents, and Marketable Securities (Details) - Marketable Securities - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | $ 353,413 | $ 811,277 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 520 | 747 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 66 | 518 | ||
Marketable Securities, Allowance for Credit Loss | $ 0 | 48 | 0 | |
Marketable securities | 353,819 | 811,506 | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | 0 | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Cumulative-Effect Adjustment for the Adoption of ASU 2016-13 | $ 207 | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Period Increase (Decrease) | 215 | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Securities Sold | (374) | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | 48 | |||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling within One Year | 197,152 | |||
Debt securities, Available-for-sale, Debt Maturities, Rolling Year One Through Two | 150,639 | |||
Debt securities, Available-for-sale, Debt Maturities, Rolling Year Two Through Three | 6,028 | |||
Foreign debt [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | 214,045 | 387,775 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 467 | 551 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 66 | 506 | ||
Marketable Securities, Allowance for Credit Loss | 10 | 10 | ||
Marketable securities | 214,436 | 387,820 | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | 10 | |||
Foreign government obligations [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | 21,991 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 20 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | |||
Marketable securities | 0 | 22,011 | ||
U.S debt [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | 14,508 | 65,970 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 53 | 176 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 12 | ||
Marketable Securities, Allowance for Credit Loss | 0 | 0 | ||
Marketable securities | 14,561 | 66,134 | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | 0 | |||
Time deposits [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | 124,860 | 335,541 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 | ||
Marketable Securities, Allowance for Credit Loss | 38 | 38 | ||
Marketable securities | $ 124,822 | $ 335,541 | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | $ 38 |
4. Restricted Marketable Secu_3
4. Restricted Marketable Securities (Details) - Restricted Marketable Securities - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||
Restricted marketable securities | $ 261,507 | $ 223,785 | |
Restricted cash - noncurrent | $ 38,119 | 80,072 | |
Product minimum service life | 25 years | ||
Gains on sales of marketable securities and restricted marketable securities | $ 15,346 | $ 15,016 | |
Cash Held In Trust [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Restricted cash - noncurrent | 700 | 100 | |
Restricted Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Restricted marketable securities | 261,507 | 223,785 | |
Proceeds from sale of restricted marketable securities | 115,200 | 47,900 | |
Gains on sales of marketable securities and restricted marketable securities | 15,100 | 15,000 | |
Payments to Acquire Restricted Marketable Securities | 114,500 | ||
Proceeds from sale of restricted marketable securities withdrawn from custodial accounts | $ 14,900 | ||
Restricted Debt Securities [Member] | Foreign government obligations [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Restricted marketable securities | 141,728 | 126,066 | |
Restricted Debt Securities [Member] | US Government Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Restricted marketable securities | $ 119,779 | $ 97,719 |
4. Restricted Marketable Secu_4
4. Restricted Marketable Securities (Details) - Available for sale - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | $ 353,413 | $ 811,277 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 520 | 747 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 66 | 518 | ||
Marketable Securities, Allowance for Credit Loss | $ 0 | 48 | 0 | |
Restricted marketable securities | 261,507 | 223,785 | ||
Restricted available for sale securities, allowance for credit losses [Line Items] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | 0 | |||
Cumulative effect adjustment for the adoption of ASU 2016-13 | $ (207) | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Period Increase (Decrease) | 215 | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Securities Sold | (374) | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | 48 | |||
Restricted Debt Securities [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | 245,351 | 229,199 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 16,156 | 0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 5,414 | ||
Marketable Securities, Allowance for Credit Loss | 0 | 0 | 0 | |
Restricted marketable securities | 261,507 | 223,785 | ||
Restricted available for sale securities, allowance for credit losses [Line Items] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | 0 | |||
Cumulative effect adjustment for the adoption of ASU 2016-13 | $ (54) | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Period Increase (Decrease) | (29) | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Securities Sold | (25) | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | $ 0 | |||
Restricted Debt Securities [Member] | Minimum [Member] | ||||
Restricted available for sale securities, allowance for credit losses [Line Items] | ||||
Contractual maturities of Debt securities, Available-for-sale, range start (in years) | 9 years | |||
Restricted Debt Securities [Member] | Maximum [Member] | ||||
Restricted available for sale securities, allowance for credit losses [Line Items] | ||||
Contractual maturities of Debt securities, Available-for-sale, range end (in years) | 21 years | |||
Foreign government obligations [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | 21,991 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 20 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | |||
Foreign government obligations [Member] | Restricted Debt Securities [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | 130,002 | 129,499 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 11,726 | 0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 3,433 | ||
Marketable Securities, Allowance for Credit Loss | $ 0 | 0 | ||
Restricted marketable securities | 141,728 | 126,066 | ||
Restricted available for sale securities, allowance for credit losses [Line Items] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | 0 | |||
US Government Debt Securities [Member] | Restricted Debt Securities [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | 115,349 | 99,700 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 4,430 | 0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 1,981 | ||
Marketable Securities, Allowance for Credit Loss | 0 | 0 | ||
Restricted marketable securities | $ 119,779 | $ 97,719 | ||
Restricted available for sale securities, allowance for credit losses [Line Items] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | $ 0 |
5. Consolidated Balance Sheet_3
5. Consolidated Balance Sheet Details (Details) $ in Thousands, € in Millions | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020EUR (€) | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Feb. 29, 2016 | Nov. 30, 2014 | Apr. 30, 2009EUR (€) | |
Accounts receivable, trade, unbilled and retainage | |||||||||||
Accounts receivable trade, gross | $ 221,196 | $ 221,196 | $ 476,425 | ||||||||
Accounts Receivable Trade, Allowance for credit losses | (2,413) | (2,413) | (1,386) | ||||||||
Accounts receivable trade, net | 218,783 | 218,783 | 475,039 | ||||||||
Secured accounts receivable | 25,000 | 25,000 | 44,900 | ||||||||
Accounts receivable, unbilled | 78,001 | 78,001 | 162,057 | ||||||||
Contract Receivable Retainage, Current | 11,367 | 11,367 | 21,416 | ||||||||
Accounts receivable, unbilled and retainage, allowance for credit losses | (919) | (919) | 0 | ||||||||
Accounts Receivable, unbilled and retainage, net | 88,449 | 88,449 | 183,473 | ||||||||
Allowance for Credit Loss [Abstract] | |||||||||||
Accounts Receivable, Allowance for Credit Loss, Cumulative-effect adjustment for adoption of ASU 2016-13 | $ (171) | ||||||||||
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) | (1,421) | ||||||||||
Accounts Receivable Trade, Writeoffs | 565 | ||||||||||
Accounts Receivable Trade, Allowance for credit losses | (2,413) | (2,413) | (1,386) | ||||||||
Accounts Receivable, Unbilled and Retainage, Allowance for Credit Loss, Cumulative-effect adjustment for adoption of ASU 2016-13 | (459) | ||||||||||
Accounts Receivable, Unbilled and Retainage, Allowance for Credit Loss, Period Increase (Decrease) | (635) | ||||||||||
Accounts Receivable, Unbilled and Retainage, Writeoffs | 175 | ||||||||||
Accounts receivable, unbilled and retainage, allowance for credit losses | (919) | (919) | 0 | ||||||||
Inventories and balance of systems parts | |||||||||||
Raw materials | 275,309 | 275,309 | 248,756 | ||||||||
Work in process | 67,273 | 67,273 | 59,924 | ||||||||
Finished goods | 422,723 | 422,723 | 295,479 | ||||||||
Inventories | 765,305 | 765,305 | 604,159 | ||||||||
Inventories - current | 567,785 | 567,785 | 443,513 | ||||||||
Inventories - noncurrent | 197,520 | 197,520 | 160,646 | ||||||||
Prepaid expenses and other current assets | |||||||||||
Prepaid expenses | 153,772 | 153,772 | 137,927 | ||||||||
Prepaid income taxes | 50,173 | 50,173 | 47,811 | ||||||||
Indirect tax receivables | 3,238 | 3,238 | 29,908 | ||||||||
Restricted cash | 1,516 | 1,516 | 13,697 | ||||||||
Derivative instruments | 1,320 | 1,320 | 1,199 | ||||||||
Notes receivable - current | 0 | 0 | 23,873 | ||||||||
Other current assets | 14,073 | 14,073 | 22,040 | ||||||||
Prepaid expenses and other current assets | 224,092 | 224,092 | 276,455 | ||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, gross | 3,437,276 | 3,437,276 | 3,567,231 | ||||||||
Accumulated depreciation | (1,050,685) | (1,050,685) | (1,386,082) | ||||||||
Property, plant and equipment, net | 2,386,591 | 2,386,591 | 2,181,149 | ||||||||
PV solar power systems, net | |||||||||||
PV solar power systems, gross | 313,048 | 313,048 | 530,004 | ||||||||
Accumulated depreciation | (55,648) | (55,648) | (53,027) | ||||||||
PV solar power systems, net | 257,400 | 257,400 | 476,977 | ||||||||
Project assets | |||||||||||
Project assets - development costs, including project acquisition and land costs | 232,116 | 232,116 | 254,466 | ||||||||
Project assets - construction costs | 131,883 | 131,883 | 82,654 | ||||||||
Total project assets | 363,999 | 363,999 | 337,120 | ||||||||
Project assets - current | 1,222 | 1,222 | 3,524 | ||||||||
Project assets - noncurrent | 362,777 | 362,777 | 333,596 | ||||||||
Capitalized interest | |||||||||||
Interest cost incurred | (11,672) | $ (5,239) | (22,362) | $ (26,348) | |||||||
Interest expense, net | (10,975) | (4,976) | (21,018) | (24,018) | |||||||
Other assets | |||||||||||
Operating lease assets | 223,554 | 223,554 | 145,711 | ||||||||
Advanced payments for raw materials | 98,733 | 98,733 | 59,806 | ||||||||
Restricted cash - noncurrent | 38,119 | 38,119 | 80,072 | ||||||||
Indirect tax receivables | 12,154 | 12,154 | 9,446 | ||||||||
Notes receivable - noncurrent | 8,556 | 8,556 | 8,194 | ||||||||
Income taxes receivable | 4,132 | 4,132 | 4,106 | ||||||||
Equity method investments | 3,013 | 3,013 | 2,812 | ||||||||
Other | 47,397 | 47,397 | 19,779 | ||||||||
Other assets | 435,658 | 435,658 | 329,926 | ||||||||
Goodwill | |||||||||||
Goodwill | 14,462 | 14,462 | 14,462 | ||||||||
Goodwill, period increase (decrease) | 0 | ||||||||||
Intangibles assets, net | |||||||||||
Intangible assets, gross | 114,230 | 114,230 | 112,230 | ||||||||
Intangible assets, accumulated amortization | (55,761) | (55,761) | (47,687) | ||||||||
Intangibles assets, net | 58,469 | 58,469 | 64,543 | ||||||||
Amortization of intangible assets | 2,700 | 2,600 | 8,100 | 7,600 | |||||||
Assets held for sale | |||||||||||
Accounts receivable trade, net | 16,604 | 16,604 | |||||||||
Accounts receivable, unbilled and retainage, net | 2,562 | 2,562 | |||||||||
Inventories | 127 | 127 | |||||||||
Disposal Group, Including Discontinued Operation, Balance of Systems Parts | 28 | 28 | |||||||||
Prepaid expenses and other current assets | 10,592 | 10,592 | |||||||||
Property, plant and equipment, net | 5,061 | 5,061 | |||||||||
Other assets | 35 | 35 | |||||||||
Assets held for sale | 35,009 | 35,009 | 0 | ||||||||
Liabilities held for sale | |||||||||||
Accounts payable | 1,498 | 1,498 | |||||||||
Accrued expenses | 5,183 | 5,183 | |||||||||
Deferred revenue | 603 | 603 | |||||||||
Other current liabilities | 903 | 903 | |||||||||
Other liabilities | 4,534 | 4,534 | |||||||||
Liabilities held for sale | 12,721 | 12,721 | 0 | ||||||||
Accrued expenses | |||||||||||
Accrued property, plant and equipment | 100,299 | 100,299 | 42,834 | ||||||||
Accrued project assets | 61,198 | 61,198 | 91,971 | ||||||||
Accrued compensation and benefits | 39,698 | 39,698 | 65,170 | ||||||||
Product warranty liability | 22,325 | 22,325 | 20,291 | ||||||||
Accrued inventory | 18,143 | 18,143 | 39,366 | ||||||||
Other | 56,470 | 56,470 | 91,628 | ||||||||
Accrued expenses | 298,133 | 298,133 | 351,260 | ||||||||
Other current liabilities | |||||||||||
Other taxes payable, current | 31,715 | 31,715 | 994 | ||||||||
Operating lease liabilities, current | 14,506 | 14,506 | 11,102 | ||||||||
Derivative instruments | 3,120 | 3,120 | 2,582 | ||||||||
Contingent consideration | 2,082 | 2,082 | 2,395 | ||||||||
Other | 26,713 | 26,713 | 11,057 | ||||||||
Other current liabilities | 78,136 | 78,136 | 28,130 | ||||||||
Other liabilities | |||||||||||
Operating lease liabilities, noncurrent | 184,887 | 184,887 | 112,515 | ||||||||
Other taxes payable, noncurrent | 95,536 | 95,536 | 90,201 | ||||||||
Product warranty liability | 75,028 | 75,028 | 109,506 | ||||||||
Transition tax liability | 62,385 | 62,385 | 70,047 | ||||||||
Deferred revenue, noncurrent | 45,990 | 45,990 | 71,438 | ||||||||
Contingent consideration | 4,500 | 4,500 | 4,500 | ||||||||
Derivative instruments | 107 | 107 | 7,439 | ||||||||
Other | 43,530 | 43,530 | 43,120 | ||||||||
Other liabilities | 511,963 | 511,963 | 508,766 | ||||||||
COVID-19 [Member] | |||||||||||
Accounts receivable, trade, unbilled and retainage | |||||||||||
Accounts Receivable Trade, Allowance for credit losses | (1,800) | (1,800) | |||||||||
Accounts receivable, unbilled and retainage, allowance for credit losses | (700) | (700) | |||||||||
Allowance for Credit Loss [Abstract] | |||||||||||
Accounts Receivable Trade, Allowance for credit losses | (1,800) | (1,800) | |||||||||
Accounts receivable, unbilled and retainage, allowance for credit losses | (700) | (700) | |||||||||
Developed Technology [Member] | |||||||||||
Intangibles assets, net | |||||||||||
Intangible assets, gross | 99,964 | 99,964 | 97,964 | ||||||||
Intangible assets, accumulated amortization | (49,647) | (49,647) | (42,344) | ||||||||
Intangibles assets, net | 50,317 | 50,317 | 55,620 | ||||||||
Power Purchase Agreements [Member] | |||||||||||
Intangibles assets, net | |||||||||||
Intangible assets, gross | 6,486 | 6,486 | 6,486 | ||||||||
Intangible assets, accumulated amortization | (1,216) | (1,216) | (972) | ||||||||
Intangibles assets, net | 5,270 | 5,270 | 5,514 | ||||||||
Patents [Member] | |||||||||||
Intangibles assets, net | |||||||||||
Intangible assets, gross | 7,780 | 7,780 | 7,780 | ||||||||
Intangible assets, accumulated amortization | (4,898) | (4,898) | (4,371) | ||||||||
Intangibles assets, net | 2,882 | 2,882 | 3,409 | ||||||||
Modules Segment [Member] | |||||||||||
Goodwill | |||||||||||
Goodwill, Gross | 407,827 | 407,827 | 407,827 | ||||||||
Accumulated impairment loss | (393,365) | (393,365) | (393,365) | ||||||||
Goodwill | 14,462 | 14,462 | 14,462 | ||||||||
Goodwill from acquisition | 0 | ||||||||||
Goodwill impairment | 0 | ||||||||||
Credit Facility Agreement [Member] | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Note Receivable Interest Rate | 8.00% | ||||||||||
Other assets | |||||||||||
Notes receivable - noncurrent | 8,200 | 8,200 | € 7 | 7,800 | € 7 | ||||||
Notes receivable initial available amount | € | € 17.5 | ||||||||||
Property, Plant and Equipment [Member] | |||||||||||
Property, plant and equipment, net | |||||||||||
Impairment loss | 17,400 | ||||||||||
Depreciation | 49,700 | 42,800 | 145,500 | 129,400 | |||||||
PV solar power systems [Member] | |||||||||||
Property, plant and equipment, net | |||||||||||
Depreciation | 4,800 | 5,900 | 16,400 | 12,900 | |||||||
Project Assets [Member] | |||||||||||
Capitalized interest | |||||||||||
Interest costs capitalized - project assets | 697 | $ 263 | 1,344 | $ 2,330 | |||||||
Land [Member] | |||||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, gross | 14,363 | 14,363 | 14,241 | ||||||||
Building and improvements [Member] | |||||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, gross | 666,637 | 666,637 | 664,266 | ||||||||
Machinery and equipment [Member] | |||||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, gross | 2,101,726 | 2,101,726 | 2,436,997 | ||||||||
Office equipment and furniture [Member] | |||||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, gross | 143,242 | 143,242 | 159,848 | ||||||||
Leasehold improvements [Member] | |||||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, gross | 43,795 | 43,795 | 48,772 | ||||||||
Construction in progress [Member] | |||||||||||
Property, plant and equipment, net | |||||||||||
Property, plant and equipment, gross | $ 467,513 | 467,513 | 243,107 | ||||||||
Clean Energy Collective, LLC [Member] | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Notes receivable - current | $ 23,900 | ||||||||||
Note Receivable Interest Rate | 16.00% | ||||||||||
Convertible Notes Receivable Interest Rate | 10.00% | ||||||||||
Note receivable, allowance for credit loss | $ 10,800 | ||||||||||
Note receivable, allowance for credit loss, period increase (decrease) | $ 13,100 |
6. Derivative Financial Instr_3
6. Derivative Financial Instruments (Details) - Summary - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 1,320 | $ 1,199 |
Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 226 |
Prepaid Expenses and Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1,320 | 973 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 139 | |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 139 | |
Other Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | |
Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (3,120) | (2,582) |
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 1,380 | 369 |
Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 1,740 | 2,213 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (107) | (7,439) |
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 107 | 230 |
Other Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 7,209 |
Foreign exchange forward contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maximum length of time hedged in foreign currency cash flow hedge | 18 months | 22 months |
Foreign exchange forward contracts [Member] | Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 0 | $ 226 |
Foreign exchange forward contracts [Member] | Prepaid Expenses and Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1,320 | 973 |
Foreign exchange forward contracts [Member] | Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 139 | |
Foreign exchange forward contracts [Member] | Other Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | |
Foreign exchange forward contracts [Member] | Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 1,152 | 369 |
Foreign exchange forward contracts [Member] | Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 1,740 | 1,807 |
Foreign exchange forward contracts [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 107 | 230 |
Foreign exchange forward contracts [Member] | Other Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Interest rate swap contract [Member] | Prepaid Expenses and Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | |
Interest rate swap contract [Member] | Other Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | |
Interest rate swap contract [Member] | Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 406 | |
Interest rate swap contract [Member] | Other Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 7,209 | |
Commodity swap contracts | Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | |
Commodity swap contracts | Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 228 | |
Commodity swap contracts | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 0 |
6. Derivative Financial Instr_4
6. Derivative Financial Instruments (Details) - Hedging Relationship - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Designated as Hedging Instrument [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Balance in accumulated other comprehensive income (loss) | $ (2,672) | $ 277 | $ (2,672) | $ 277 | $ (962) | $ 1,329 |
Amounts recognized in other comprehensive income (loss) | (2,357) | 153 | ||||
Designated as Hedging Instrument [Member] | Cost of sales | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 647 | (1,081) | ||||
Designated as Hedging Instrument [Member] | Sales | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (124) | |||||
Foreign exchange forward contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Balance in accumulated other comprehensive income (loss) | (2,444) | 277 | (2,444) | 277 | (962) | 1,329 |
Amounts recognized in other comprehensive income (loss) | (2,129) | 153 | ||||
Foreign exchange forward contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Cost of sales | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 647 | (1,081) | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Amount Excluded from Effectiveness Testing, Net | 100 | 200 | 1,200 | 300 | ||
Foreign exchange forward contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Sales | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (124) | |||||
Foreign exchange forward contracts [Member] | Not Designated as Hedging Instrument [Member] | Cost of sales | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, Gain (Loss) on Derivative, Net | (195) | 0 | (73) | 0 | ||
Foreign exchange forward contracts [Member] | Not Designated as Hedging Instrument [Member] | Foreign currency gain (loss), net | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, Gain (Loss) on Derivative, Net | (2,598) | 3,635 | (2,405) | 883 | ||
Interest rate swap contract [Member] | Not Designated as Hedging Instrument [Member] | Cost of sales | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | (1,656) | ||
Interest rate swap contract [Member] | Not Designated as Hedging Instrument [Member] | Interest expense, net | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, Gain (Loss) on Derivative, Net | (5,878) | (357) | (7,259) | (10,089) | ||
Commodity swap contracts | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Balance in accumulated other comprehensive income (loss) | $ (228) | $ 0 | (228) | 0 | $ 0 | $ 0 |
Amounts recognized in other comprehensive income (loss) | (228) | 0 | ||||
Commodity swap contracts | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Cost of sales | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 0 | 0 | ||||
Commodity swap contracts | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Sales | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 0 |
6. Derivative Financial Instr_5
6. Derivative Financial Instruments (Details) - Risk Management $ in Millions, ¥ in Billions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020USD ($) | Dec. 31, 2019JPY (¥) | Aug. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2017JPY (¥) | |
Foreign exchange forward contracts [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Maximum length of time hedged in foreign currency cash flow hedge | 18 months | 22 months | |||
Foreign exchange forward contracts [Member] | Cash Flow Hedging [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $ (2.3) | ||||
Foreign exchange forward contracts [Member] | Cash Flow Hedging [Member] | United States of America, Dollars | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | 44.5 | $ 69.9 | |||
Commodity swap contracts | Cash Flow Hedging [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | 18.5 | $ 24.9 | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (0.2) | ||||
Anamizu Credit Facility | Interest rate swap contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | ¥ 0.9 | $ 8 | |||
Derivative, Basis Spread on Variable Rate | 0.70% | 0.70% | |||
Derivative fixed interest rate paid on swap | 1.1925% | 1.1925% | |||
Ishikawa Credit Agreement [Member] | Interest rate swap contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | ¥ 18.7 | $ 171.7 | ¥ 5.7 | ||
Derivative, Basis Spread on Variable Rate | 0.75% | ||||
Derivative fixed interest rate paid on swap | 1.482% |
6. Derivative Financial Instr_6
6. Derivative Financial Instruments (Details) - Transaction Exposure - Foreign exchange forward contracts [Member] - Not Designated as Hedging Instrument [Member] € in Millions, ₨ in Millions, ¥ in Millions, RM in Millions, R$ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2020JPY (¥) | Dec. 31, 2019JPY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2020AUD ($) | Sep. 30, 2020BRL (R$) | Sep. 30, 2020CAD ($) | Sep. 30, 2020CLP ($) | Sep. 30, 2020EUR (€) | Sep. 30, 2020INR (₨) | Sep. 30, 2020MYR (RM) | Sep. 30, 2020MXN ($) | Sep. 30, 2020SGD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019AUD ($) | Dec. 31, 2019BRL (R$) | Dec. 31, 2019CAD ($) | Dec. 31, 2019CLP ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019INR (₨) | Dec. 31, 2019MYR (RM) | Dec. 31, 2019MXN ($) | Dec. 31, 2019SGD ($) | |
Australia, Dollars | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Bought | Australian dollar | Australian dollar | ||||||||||||||||||||
Derivative, Currency Sold | Australian dollar | |||||||||||||||||||||
Brazil, Brazil Real | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Bought | Brazilian real | Brazilian real | ||||||||||||||||||||
Derivative, Currency Sold | Brazilian real | |||||||||||||||||||||
Canada, Dollars | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Bought | Canadian dollar | |||||||||||||||||||||
Derivative, Currency Sold | Canadian dollar | Canadian dollar | ||||||||||||||||||||
Chile, Pesos | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Bought | Chilean peso | |||||||||||||||||||||
Derivative, Currency Sold | Chilean peso | Chilean peso | ||||||||||||||||||||
Euro Member Countries, Euro | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Bought | Euro | Euro | ||||||||||||||||||||
Derivative, Currency Sold | Euro | Euro | ||||||||||||||||||||
India, Rupees | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Bought | Indian rupee | |||||||||||||||||||||
Derivative, Currency Sold | Indian rupee | Indian rupee | ||||||||||||||||||||
Japan, Yen | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Bought | Japanese yen | Japanese yen | ||||||||||||||||||||
Derivative, Currency Sold | Japanese yen | Japanese yen | ||||||||||||||||||||
Malaysia, Ringgits | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Bought | Malaysian ringgit | Malaysian ringgit | ||||||||||||||||||||
Derivative, Currency Sold | Malaysian ringgit | Malaysian ringgit | ||||||||||||||||||||
Mexico, Pesos | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Sold | Mexican peso | Mexican peso | ||||||||||||||||||||
Singapore, Dollars | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Currency Bought | Singapore dollar | Singapore dollar | ||||||||||||||||||||
Long [Member] | Australia, Dollars | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | $ 4.4 | $ 6.2 | $ 10.4 | $ 14.9 | ||||||||||||||||||
Long [Member] | Brazil, Brazil Real | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 0.5 | R$ 2.6 | 3.3 | R$ 13.2 | ||||||||||||||||||
Long [Member] | Canada, Dollars | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 3.4 | $ 4.5 | ||||||||||||||||||||
Long [Member] | Chile, Pesos | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 2 | $ 1,493.1 | ||||||||||||||||||||
Long [Member] | Euro Member Countries, Euro | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 120.4 | € 102.7 | 96.5 | € 86.1 | ||||||||||||||||||
Long [Member] | India, Rupees | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 1.7 | ₨ 126.2 | ||||||||||||||||||||
Long [Member] | Japan, Yen | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | ¥ 3,146.6 | ¥ 3,625.5 | 29.8 | 33.3 | ||||||||||||||||||
Long [Member] | Malaysia, Ringgits | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 10.8 | RM 44.9 | 21.6 | RM 88.6 | ||||||||||||||||||
Long [Member] | Singapore, Dollars | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 2.1 | $ 2.9 | 2.2 | $ 2.9 | ||||||||||||||||||
Short [Member] | Australia, Dollars | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 7.8 | $ 11.1 | ||||||||||||||||||||
Short [Member] | Brazil, Brazil Real | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 1.1 | R$ 4.3 | ||||||||||||||||||||
Short [Member] | Canada, Dollars | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 7.5 | $ 10 | 1.2 | $ 1.6 | ||||||||||||||||||
Short [Member] | Chile, Pesos | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 2.2 | $ 1,684.5 | 5.1 | $ 3,866.1 | ||||||||||||||||||
Short [Member] | Euro Member Countries, Euro | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 68.6 | € 58.5 | 130.3 | € 116.3 | ||||||||||||||||||
Short [Member] | India, Rupees | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 10.1 | ₨ 743.1 | 18 | ₨ 1,283.8 | ||||||||||||||||||
Short [Member] | Japan, Yen | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | ¥ 45,682 | ¥ 23,089.5 | 432.7 | 212.2 | ||||||||||||||||||
Short [Member] | Malaysia, Ringgits | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | 11.7 | RM 48.7 | 10.1 | RM 41.3 | ||||||||||||||||||
Short [Member] | Mexico, Pesos | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Derivative, Notional Amount | $ 1.6 | $ 34.6 | $ 1.8 | $ 34.6 |
7. Leases (Details)
7. Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||||
Operating lease cost | $ 4,798 | $ 5,788 | $ 13,694 | $ 16,607 | |
Variable lease cost | 628 | 904 | 1,919 | 2,592 | |
Short-term lease cost | 1,112 | 1,118 | 2,817 | 6,818 | |
Total lease cost | 6,538 | $ 7,810 | 18,430 | 26,017 | |
Payments of amounts included in the measurement of operating lease liabilities | 15,756 | 15,995 | |||
Lease assets obtained in exchange for operating lease liabilities | 93,992 | $ 172,760 | |||
Operating lease assets | 223,554 | 223,554 | $ 145,711 | ||
Operating lease liabilities, current | 14,506 | 14,506 | 11,102 | ||
Operating lease liabilities, noncurrent | $ 184,887 | $ 184,887 | $ 112,515 | ||
Weighted-average remaining lease term | 20 years | 20 years | 15 years | ||
Weighted-average discount rate | 3.00% | 3.00% | 4.30% | ||
Operating lease liabilities, future payments, remainder of 2020 | $ 3,795 | $ 3,795 | |||
Operating lease liabilities, future payments, due 2021 | 18,354 | 18,354 | |||
Operating lease liabilities, future payments, due 2022 | 17,600 | 17,600 | |||
Operating lease liabilities, future payments, due 2023 | 17,104 | 17,104 | |||
Operating lease liabilities, future payments, due 2024 | 16,815 | 16,815 | |||
Operating lease liabilities, future payments, due 2025 | 16,360 | 16,360 | |||
Operating lease liabilities, future payments, due after 2025 | 159,244 | 159,244 | |||
Total future payments | 249,272 | 249,272 | |||
Less: interest | (49,879) | (49,879) | |||
Total lease liabilities | $ 199,393 | $ 199,393 |
8. Fair Value Measurements (Det
8. Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Marketable securities | $ 353,819 | $ 811,506 |
Restricted marketable securities | 261,507 | 223,785 |
Foreign debt [Member] | ||
Assets: | ||
Marketable securities | 214,436 | 387,820 |
Foreign government obligations [Member] | ||
Assets: | ||
Marketable securities | 0 | 22,011 |
U.S debt [Member] | ||
Assets: | ||
Marketable securities | 14,561 | 66,134 |
Time deposits [Member] | ||
Assets: | ||
Marketable securities | 124,822 | 335,541 |
Fair Value, Recurring [Member] | ||
Assets: | ||
Restricted marketable securities | 261,507 | 223,785 |
Derivative assets | 1,320 | 1,338 |
Total assets | 617,038 | 1,043,951 |
Liabilities: | ||
Derivative liabilities | 3,227 | 10,021 |
Fair Value, Recurring [Member] | Foreign debt [Member] | ||
Assets: | ||
Marketable securities | 214,436 | 387,820 |
Fair Value, Recurring [Member] | Foreign government obligations [Member] | ||
Assets: | ||
Marketable securities | 22,011 | |
Fair Value, Recurring [Member] | U.S debt [Member] | ||
Assets: | ||
Marketable securities | 14,561 | 66,134 |
Fair Value, Recurring [Member] | Time deposits [Member] | ||
Assets: | ||
Marketable securities | 124,822 | 335,541 |
Fair Value, Recurring [Member] | Money Market Funds [Member] | ||
Assets: | ||
Cash equivalents | 392 | 7,322 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Restricted marketable securities | 0 | 0 |
Derivative assets | 0 | 0 |
Total assets | 125,214 | 342,863 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign debt [Member] | ||
Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign government obligations [Member] | ||
Assets: | ||
Marketable securities | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S debt [Member] | ||
Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Time deposits [Member] | ||
Assets: | ||
Marketable securities | 124,822 | 335,541 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Assets: | ||
Cash equivalents | 392 | 7,322 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Restricted marketable securities | 261,507 | 223,785 |
Derivative assets | 1,320 | 1,338 |
Total assets | 491,824 | 701,088 |
Liabilities: | ||
Derivative liabilities | 3,227 | 10,021 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign debt [Member] | ||
Assets: | ||
Marketable securities | 214,436 | 387,820 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign government obligations [Member] | ||
Assets: | ||
Marketable securities | 22,011 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S debt [Member] | ||
Assets: | ||
Marketable securities | 14,561 | 66,134 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Time deposits [Member] | ||
Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Restricted marketable securities | 0 | 0 |
Derivative assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign debt [Member] | ||
Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign government obligations [Member] | ||
Assets: | ||
Marketable securities | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | U.S debt [Member] | ||
Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Time deposits [Member] | ||
Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member] | ||
Assets: | ||
Cash equivalents | $ 0 | $ 0 |
8. Fair Value Measurements (D_2
8. Fair Value Measurements (Details) - Balance Sheet Grouping - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Notes receivable - current | $ 0 | $ 23,873 |
Notes receivable - noncurrent | 8,556 | 8,194 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, including current maturities | 269,097 | |
Reported Value Measurement [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Notes receivable - current | 0 | 23,873 |
Notes receivable - noncurrent | 8,556 | 8,194 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, including current maturities | 269,097 | 482,892 |
Estimate of Fair Value Measurement [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Notes receivable - current | 0 | 24,929 |
Notes receivable - noncurrent | 9,872 | 10,276 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, including current maturities | $ 265,022 | $ 504,213 |
9. Debt (Details)
9. Debt (Details) $ in Thousands, ₨ in Billions, ¥ in Billions | 3 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Jul. 31, 2020USD ($) | Jul. 31, 2020JPY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019JPY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2018INR (₨) | Jun. 30, 2017USD ($) | Jun. 30, 2017JPY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016JPY (¥) | Sep. 30, 2015USD ($) | Sep. 30, 2015JPY (¥) | |
Long-term Debt [Abstract] | ||||||||||||||
Long-term debt, gross | $ 269,097 | $ 269,097 | $ 482,892 | |||||||||||
Less: unamortized discount and issuance costs | (8,229) | (8,229) | (11,195) | |||||||||||
Total long-term debt | 260,868 | 260,868 | 471,697 | |||||||||||
Less current portion | (40,412) | (40,412) | (17,510) | |||||||||||
Noncurrent portion | 220,456 | 220,456 | 454,187 | |||||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||||||||||
Long-term Debt, Maturity, Remainder of Fiscal Year | 701 | 701 | ||||||||||||
Long-Term Debt, Maturity, Year One | 40,853 | 40,853 | ||||||||||||
Long-term Debt, Maturity, Year Two | 17,516 | 17,516 | ||||||||||||
Long-Term Debt, Maturity, Year Three | 36,318 | 36,318 | ||||||||||||
Long-Term Debt, Maturity, Year Four | 7,020 | 7,020 | ||||||||||||
Long-Term Debt, Maturity, Year Five | 7,560 | 7,560 | ||||||||||||
Long-Term Debt, Maturity, after Year Five | 159,129 | 159,129 | ||||||||||||
Total long-term debt future principal payments | 269,097 | $ 269,097 | ||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Debt instrument, currency | USD | |||||||||||||
Revolving credit facility | 0 | $ 0 | 0 | |||||||||||
Line of Credit Facility, Current Borrowing Capacity | 500,000 | 500,000 | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 750,000 | 750,000 | ||||||||||||
Letters of Credit Outstanding, Amount | $ 4,200 | $ 4,200 | 39,300 | |||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | |||||||||||||
Fronting fee | 0.125% | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.15% | 2.15% | ||||||||||||
Debt Instrument, Description of Variable Rate Basis | Borrowings under the credit facility bear interest at (i) London Interbank Offered Rate (“LIBOR”), adjusted for Eurocurrency reserve requirements, plus a margin of 2.00% or (ii) a base rate as defined in the credit agreement plus a margin of 1.00% depending on the type of borrowing requested. | |||||||||||||
Revolving Credit Facility [Member] | Minimum [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||||
Revolving Credit Facility [Member] | Maximum [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||||||||
Luz del Norte Credit Facilities [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Debt instrument, currency | USD | |||||||||||||
Long-term debt, gross | $ 186,931 | $ 186,931 | 188,017 | |||||||||||
Luz del Norte Credit Facilities [Member] | DFC [Member] | Parque Solar Fotovoltaico Luz del Norte SpA [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Long-term debt, gross | 139,900 | 139,900 | 140,800 | |||||||||||
Luz del Norte Credit Facilities [Member] | IFC [Member] | Parque Solar Fotovoltaico Luz del Norte SpA [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Long-term debt, gross | 47,000 | $ 47,000 | 47,200 | |||||||||||
Luz del Norte Credit Facilities [Member] | DFC and IFC [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
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% | |||||||||||||
Luz del Norte Credit Facilities [Member] | Fixed Rate Term Loan [Member] | DFC and IFC [Member] | Parque Solar Fotovoltaico Luz del Norte SpA [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Long-term debt, gross | 146,400 | $ 146,400 | ||||||||||||
Luz del Norte Credit Facilities [Member] | Variable Rate Term Loan [Member] | DFC and IFC [Member] | Parque Solar Fotovoltaico Luz del Norte SpA [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Long-term debt, gross | 40,500 | $ 40,500 | ||||||||||||
Ishikawa Credit Agreement [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Debt instrument, currency | JPY | |||||||||||||
Long-term debt, gross | 0 | $ 0 | 215,879 | |||||||||||
Ishikawa Credit Agreement [Member] | Mizuho Bank [Member] | FS Japan Project 12 GK [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 233,900 | ¥ 27.3 | ||||||||||||
Repayments of Debt | 215,500 | |||||||||||||
Ishikawa Credit Agreement [Member] | Senior Loan Facility [Member] | Mizuho Bank [Member] | FS Japan Project 12 GK [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 205,600 | 24 | ||||||||||||
Ishikawa Credit Agreement [Member] | Consumption Tax Facility [Member] | Mizuho Bank [Member] | FS Japan Project 12 GK [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 18,000 | 2.1 | ||||||||||||
Ishikawa Credit Agreement [Member] | Letter of Credit Facility [Member] | Mizuho Bank [Member] | FS Japan Project 12 GK [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 10,300 | ¥ 1.2 | ||||||||||||
Japan Credit Facility [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Debt instrument, currency | JPY | |||||||||||||
Long-term debt, gross | 13,481 | $ 13,481 | 1,678 | |||||||||||
Japan Credit Facility [Member] | Mizuho Bank [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Debt Instrument, Description of Variable Rate Basis | 1-month TIBOR plus 0.55 | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.55% | |||||||||||||
Japan Credit Facility [Member] | Mizuho Bank [Member] | First Solar Japan GK [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 33,400 | ¥ 4 | ||||||||||||
Tochigi Credit Facility [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Debt instrument, currency | JPY | |||||||||||||
Long-term debt, gross | 38,452 | $ 38,452 | 37,304 | |||||||||||
Tochigi Credit Facility [Member] | Mizuho Bank [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Debt Instrument, Description of Variable Rate Basis | 3-month TIBOR plus 1.00% | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||||
Tochigi Credit Facility [Member] | Mizuho Bank [Member] | First Solar Japan GK [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 62,200 | ¥ 7 | ||||||||||||
Anamizu Credit Facility | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Debt instrument, currency | JPY | |||||||||||||
Long-term debt, gross | 0 | $ 0 | 12,138 | |||||||||||
Anamizu Credit Facility | MUFG Bank, Ltd.; The Iyo Bank, Ltd.; The Hachijuni Bank, Ltd.; The Hyakugo Bank, Ltd.; and The Yamagata Bank, Ltd. [Member] | FS Japan Project 31 GK [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Long-term debt, gross | 31,300 | 31,300 | ||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 70,800 | ¥ 7.7 | ||||||||||||
Anamizu Credit Facility | Consumption Tax Facility [Member] | MUFG Bank, Ltd.; The Iyo Bank, Ltd.; The Hachijuni Bank, Ltd.; The Hyakugo Bank, Ltd.; and The Yamagata Bank, Ltd. [Member] | FS Japan Project 31 GK [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 6,500 | 0.7 | ||||||||||||
Anamizu Credit Facility | Term Loan Facility [Member] | MUFG Bank, Ltd.; The Iyo Bank, Ltd.; The Hachijuni Bank, Ltd.; The Hyakugo Bank, Ltd.; and The Yamagata Bank, Ltd. [Member] | FS Japan Project 31 GK [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 61,000 | 6.6 | ||||||||||||
Anamizu Credit Facility | Debt Service Reserve Facility | MUFG Bank, Ltd.; The Iyo Bank, Ltd.; The Hachijuni Bank, Ltd.; The Hyakugo Bank, Ltd.; and The Yamagata Bank, Ltd. [Member] | FS Japan Project 31 GK [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 3,300 | ¥ 0.4 | ||||||||||||
Miyagi Credit Facility [Member] | Shinsei Bank, Ltd. [Member] | GK Marumori Hatsudensho [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Long-term debt, gross | 79,400 | $ 79,400 | ||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 164,200 | ¥ 17.2 | ||||||||||||
Miyagi Credit Facility [Member] | Consumption Tax Facility [Member] | Shinsei Bank, Ltd. [Member] | GK Marumori Hatsudensho [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 14,400 | 1.5 | ||||||||||||
Miyagi Credit Facility [Member] | Term Loan Facility [Member] | Shinsei Bank, Ltd. [Member] | GK Marumori Hatsudensho [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 145,100 | 15.2 | ||||||||||||
Miyagi Credit Facility [Member] | Debt Service Reserve Facility | Shinsei Bank, Ltd. [Member] | GK Marumori Hatsudensho [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 4,700 | 0.5 | ||||||||||||
Kyoto Credit Facility [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Debt instrument, currency | JPY | |||||||||||||
Long-term debt, gross | 30,233 | $ 30,233 | 0 | |||||||||||
Kyoto Credit Facility [Member] | Mizuho Bank [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Debt Instrument, Description of Variable Rate Basis | 1-month TIBOR plus 0.60% | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.60% | |||||||||||||
Kyoto Credit Facility [Member] | Mizuho Bank [Member] | First Solar Japan GK [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 142,800 | ¥ 15 | ||||||||||||
Anantapur Credit Facility [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Debt instrument, currency | INR | |||||||||||||
Long-term debt, gross | 0 | $ 0 | 15,123 | |||||||||||
Anantapur Credit Facility [Member] | J.P. Morgan Securities India Private Limited [Member] | Anantapur Solar Parks Private Limited [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Long-term debt, gross | 14,000 | |||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 18,400 | ₨ 1.2 | ||||||||||||
Tungabhadra Credit Facility [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Debt instrument, currency | INR | |||||||||||||
Long-term debt, gross | $ 0 | $ 0 | $ 12,753 | |||||||||||
Tungabhadra Credit Facility [Member] | J.P. Morgan Securities India Private Limited [Member] | Tungabhadra Solar Parks Private Limited [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Long-term debt, gross | $ 12,000 | |||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 15,300 | ₨ 1 |
10. Commitments and Contingen_3
10. Commitments and Contingencies (Details) - Commercial Commitments - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Bank Guarantees and Letters of Credit | $ 10.1 | |
Surety Bonds | 97 | |
Surety Bond Capacity | 619.3 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Letter of Credit Sub-Limit | 400 | |
Letters of Credit Outstanding, Amount | 4.2 | $ 39.3 |
Letters of Credit, Remaining Borrowing Capacity | 395.8 | |
Bilateral Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Letters of Credit Outstanding, Amount | 124.4 | |
Letters of Credit Outstanding, Secured by Cash | 1.2 | |
Bilateral Facilities, Bank Guarantees and Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Letters of Credit, Remaining Borrowing Capacity | $ 434.2 |
10. Commitments and Contingen_4
10. Commitments and Contingencies (Details) - Product Warranties - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Product warranty liability, beginning of period | $ 123,194 | $ 217,991 | $ 129,797 | $ 220,692 |
Accruals for new warranties issued | 3,435 | 1,723 | 7,903 | 11,636 |
Settlements | (9,289) | (4,211) | (18,772) | (10,233) |
Changes in estimate of product warranty liability | (19,987) | (77,598) | (21,575) | (84,190) |
Product warranty liability, end of period | 97,353 | 137,905 | 97,353 | 137,905 |
Current portion of warranty liability | 22,325 | 19,526 | 22,325 | 19,526 |
Noncurrent portion of warranty liability | 75,028 | 118,379 | $ 75,028 | $ 118,379 |
Standard Product Warranty Accrual, Period Increase (Decrease) | $ (19,700) | $ (80,000) | ||
Estimated Rate of Return for Module Warranty | 1.00% | 1.00% | ||
Percentage Point Change in Estimated Rate of Return of Module Warranty | 1.00% | 1.00% | ||
Estimated Change in Module Warranty from Sensitivity Analysis | $ 101,100 | $ 101,100 | ||
Percentage Point Change in Estimated Rate of Return of Balance of Systems Warranty | 1.00% | 1.00% |
10. Commitments and Contingen_5
10. Commitments and Contingencies (Details) - Performance Guarantees - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Energy Performance Testing Liability | $ 19.3 | $ 4.6 |
Effective Availability Guarantee Liability | $ 0.9 | $ 0.6 |
10. Commitments and Contingen_6
10. Commitments and Contingencies (Details) - Indemnifications - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Indemnification liabilities, current | $ 5.2 | $ 0.8 |
Indemnification liabilities, noncurrent | 2 | $ 4.2 |
Indemnification liabilities, maximum exposure | 202.9 | |
Indemnification liabilities, potential insurance recoveries | $ 43.8 |
10. Commitments and Contingen_7
10. Commitments and Contingencies (Details) - Contingent Consideration - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Project Acquisition, Contingent Consideration Liability, Current | $ 2.1 | $ 2.4 |
Project Acquisition, Contingent Consideration Liability, Noncurrent | $ 4.5 | $ 4.5 |
10. Commitments and Contingen_8
10. Commitments and Contingencies (Details) - Solar Module Collection and Recycling Liability - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Change in Estimate of Module Collection and Recycling Liability | $ (18,900) | |
Accrued solar module collection and recycling liability | $ 125,594 | $ 137,761 |
Percentage increase in annualized inflation rate | 1.00% | |
Estimated increase in solar module collection recycling liability from sensitivity analysis | $ 20,800 | |
Percentage decrease in annualized inflation rate | 1.00% | |
Estimated decrease in solar module collection recycling liability from sensitivity analysis | $ 18,000 |
10. Commitments and Contingen_9
10. Commitments and Contingencies (Details) - Legal proceedings - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Estimated Litigation Liability [Line Items] | |||||
Accrued litigation | $ 0 | $ 0 | $ 363,000 | ||
Litigation loss | 0 | $ 0 | 6,000 | $ 0 | |
Class Action [Member] | |||||
Estimated Litigation Liability [Line Items] | |||||
Accrued litigation | 350,000 | ||||
Payments for Legal Settlements | 350,000 | ||||
Opt-Out Action [Member] | |||||
Estimated Litigation Liability [Line Items] | |||||
Accrued litigation | $ 13,000 | ||||
Payments for Legal Settlements | $ 19,000 | ||||
Litigation loss | $ 6,000 |
11. Revenue from Contracts wi_3
11. Revenue from Contracts with Customers (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)Projects | Sep. 30, 2019USD ($)Projects | Sep. 30, 2020USD ($)Projects | Sep. 30, 2019USD ($)Projects | Dec. 31, 2019USD ($) | |
Revenue from Contracts with Customers [Line Items] | |||||
Net sales | $ 927,565 | $ 546,806 | $ 2,102,100 | $ 1,663,740 | |
Project Change in Estimate Disclosure Threshold | $ 1,000 | ||||
Number of projects with changes in estimates | Projects | 6 | 4 | 12 | 4 | |
(Decrease) increase in revenue from net changes in transaction prices | $ (16,319) | $ (2,435) | $ (25,470) | $ 3,649 | |
Increase (decrease) in revenue from net changes in input cost estimates | 24 | (6,676) | (2,483) | (15,645) | |
Net decrease in revenue from net changes in estimates | $ (16,295) | $ (9,111) | $ (27,953) | $ (11,996) | |
Net change in estimate as a percentage of aggregate revenue | (1.30%) | (0.60%) | (1.30%) | (1.60%) | |
Accounts receivable, unbilled | $ 97,281 | $ 97,281 | $ 162,057 | ||
Contract Receivable Retainage, Current | 11,367 | 11,367 | 21,416 | ||
Accounts receivable, unbilled and retainage, allowance for credit losses | (919) | (919) | 0 | ||
Accounts receivable, unbilled and retainage, net | 107,729 | 107,729 | 183,473 | ||
Contract Asset, Net Change | $ (75,744) | ||||
Contract Asset, Percent Change | (41.00%) | ||||
Deferred revenue | 161,582 | $ 161,582 | 394,655 | ||
Contract Liability, Net Change | $ (233,073) | ||||
Contract Liability, Percent Change | (59.00%) | ||||
Unbilled Receivables, Noncurrent | 19,300 | $ 19,300 | |||
Deferred Revenue, Noncurrent | 45,990 | 45,990 | $ 71,438 | ||
Sales Revenue Net, from Beginning Contract Liability | 296,700 | $ 123,200 | |||
Solar Modules [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Net sales | 422,480 | $ 371,184 | 1,187,679 | 798,744 | |
Remaining Performance Obligation, Transaction Price | 3,400,000 | 3,400,000 | |||
Solar Power Systems [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Net sales | 471,174 | 79,792 | 776,724 | 454,841 | |
Remaining Performance Obligation, Transaction Price | $ 11,700 | $ 11,700 | |||
Solar Power Systems [Member] | GA Solar 4 | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Remaining Performance Obligations, Percent of Revenue Recognized | 96.00% | 96.00% | |||
Solar Power Systems [Member] | Seabrook | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Remaining Performance Obligations, Percent of Revenue Recognized | 98.00% | 98.00% | |||
O&M Services [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Net sales | $ 28,061 | 28,245 | $ 89,237 | 82,397 | |
Remaining Performance Obligation, Transaction Price | $ 500,000 | $ 500,000 | |||
O&M Services [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenue, Remaining Performance Obligation, Period of Recognition | 10 years 9 months 18 days | 10 years 9 months 18 days | |||
Energy Generation [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Net sales | $ 14,335 | 20,366 | $ 54,884 | 40,488 | |
EPC Services [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Net sales | $ (8,485) | $ 47,219 | $ (6,424) | $ 287,270 |
12. Share-Based Compensation (D
12. Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Allocated share-based compensation expense | $ 7,209 | $ 9,626 | $ 18,189 | $ 25,408 | |
Employee service share-based compensation, capitalized in inventory | 1,000 | 1,000 | $ 1,200 | ||
Restricted and performance stock units [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized | 33,300 | $ 33,300 | |||
Employee service share-based compensation, unrecognized compensation costs on nonvested awards, weighted average period of recognition (in years) | 1 year 4 months 24 days | ||||
Cost of sales [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Allocated share-based compensation expense | 1,099 | 1,719 | $ 2,554 | 5,520 | |
Selling, general and administrative [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Allocated share-based compensation expense | 5,562 | 6,243 | 13,323 | 15,627 | |
Research and development [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Allocated share-based compensation expense | 548 | 1,525 | 2,312 | 4,067 | |
Production Startup [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Allocated share-based compensation expense | $ 0 | $ 139 | $ 0 | $ 194 |
13. Income Taxes (Details)
13. Income Taxes (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | (16.90%) | (84.80%) |
Statutory U.S. federal tax rate | 21.00% | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 63.3 |
14. Net Income (Loss) Per Sha_3
14. Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 155,037 | $ 30,622 | $ 282,652 | $ (55,525) |
Weighted-average common shares outstanding | 105,967 | 105,397 | 105,830 | 105,272 |
Effect of restricted and performance stock units and stock purchase plan shares | 784 | 830 | 707 | 0 |
Weighted-average shares used in computing diluted net income (loss) per share | 106,751 | 106,227 | 106,537 | 105,272 |
Net income (loss) per share, basic | $ 1.46 | $ 0.29 | $ 2.67 | $ (0.53) |
Net income (loss) per share, diluted | $ 1.45 | $ 0.29 | $ 2.65 | $ (0.53) |
Anti-dilutive shares | 1 | 0 | 0 | 787 |
15. Accumulated Other Compreh_3
15. Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stockholders' equity, beginning balance | $ 5,226,796 | $ 5,135,124 | $ 5,096,767 | $ 5,212,403 |
Amounts reclassified from accumulated other comprehensive loss | (45) | 0 | (15,069) | (17,411) |
Net other comprehensive income (loss) | 7,563 | 7,402 | 19,637 | 14,948 |
Stockholders' equity, ending balance | 5,396,113 | 5,182,483 | 5,396,113 | 5,182,483 |
Cost of sales | 634,550 | 408,443 | 1,581,287 | 1,448,083 |
Other expense, net | (3,236) | (3,399) | (8,653) | (4,328) |
Net sales | 927,565 | 546,806 | 2,102,100 | 1,663,740 |
Total unrealized (loss) gain on derivative contracts | 193,209 | 45,592 | 241,608 | (29,935) |
Total amount reclassified | 45 | 0 | 15,069 | 17,411 |
Foreign Currency Translation Adjustment [Member] | ||||
Stockholders' equity, beginning balance | (73,429) | |||
Other comprehensive (loss) income before reclassifications | 922 | |||
Amounts reclassified from accumulated other comprehensive loss | (370) | |||
Net tax effect | 0 | |||
Net other comprehensive income (loss) | 552 | |||
Stockholders' equity, ending balance | (72,877) | (72,877) | ||
Total amount reclassified | 370 | |||
Foreign Currency Translation Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||||
Cost of sales | 370 | 0 | 370 | 1,190 |
Unrealized Gain (Loss) on Marketable Securities and Restricted Marketable Securities [Member] | ||||
Stockholders' equity, beginning balance | (5,029) | |||
Other comprehensive (loss) income before reclassifications | 36,994 | |||
Amounts reclassified from accumulated other comprehensive loss | (15,346) | |||
Net tax effect | (822) | |||
Net other comprehensive income (loss) | 20,826 | |||
Stockholders' equity, ending balance | 15,797 | 15,797 | ||
Total amount reclassified | 15,346 | |||
Unrealized Gain (Loss) on Marketable Securities and Restricted Marketable Securities [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||||
Other expense, net | 9 | 0 | 15,346 | 15,016 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | ||||
Stockholders' equity, beginning balance | (876) | |||
Other comprehensive (loss) income before reclassifications | (2,357) | |||
Amounts reclassified from accumulated other comprehensive loss | 647 | |||
Net tax effect | (31) | |||
Net other comprehensive income (loss) | (1,741) | |||
Stockholders' equity, ending balance | (2,617) | (2,617) | ||
Total amount reclassified | (647) | |||
Unrealized Gain (Loss) on Derivative Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||||
Total unrealized (loss) gain on derivative contracts | (334) | 0 | (647) | 1,205 |
Total, Accumulated Other Comprehensive (Loss) Income [Member] | ||||
Stockholders' equity, beginning balance | (67,260) | (46,920) | (79,334) | (54,466) |
Other comprehensive (loss) income before reclassifications | 35,559 | |||
Amounts reclassified from accumulated other comprehensive loss | (15,069) | |||
Net tax effect | (853) | |||
Net other comprehensive income (loss) | 7,563 | 7,402 | 19,637 | 14,948 |
Stockholders' equity, ending balance | (59,697) | (39,518) | (59,697) | (39,518) |
Total amount reclassified | 15,069 | |||
Foreign exchange forward contracts [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||||
Cost of sales | (334) | 0 | (647) | 1,081 |
Net sales | $ 0 | $ 0 | $ 0 | $ 124 |
16. Segment Reporting (Details)
16. Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)segments | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segments | 2 | ||||
Net sales | $ 927,565 | $ 546,806 | $ 2,102,100 | $ 1,663,740 | |
Gross profit (loss) | 293,015 | 138,363 | 520,813 | 215,657 | |
Depreciation and amortization expense | 48,119 | 44,691 | 150,006 | 133,654 | |
Goodwill | 14,462 | 14,462 | $ 14,462 | ||
Modules Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 422,480 | 371,184 | 1,187,679 | 798,744 | |
Gross profit (loss) | 124,822 | 147,806 | 280,115 | 134,293 | |
Depreciation and amortization expense | 43,137 | 38,063 | 132,529 | 118,448 | |
Goodwill | 14,462 | 14,462 | 14,462 | ||
Systems Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 505,085 | 175,622 | 914,421 | 864,996 | |
Gross profit (loss) | 168,193 | (9,443) | 240,698 | 81,364 | |
Depreciation and amortization expense | 4,982 | $ 6,628 | 17,477 | $ 15,206 | |
Goodwill | $ 0 | $ 0 | $ 0 |