Document
Document - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 26, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | 85288 | |
City Area Code | 602 | |
Local Phone Number | 414-9300 | |
Title of 12(b) Security | Common stock, $0.001 par value | |
Trading Symbol | FSLR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 107,041,420 | |
Entity Central Index Key | 0001274494 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net sales | $ 794,108 | $ 548,286 |
Cost of sales | 448,105 | 436,235 |
Gross profit | 346,003 | 112,051 |
Operating expenses: | ||
Selling, general and administrative | 45,827 | 44,028 |
Research and development | 42,742 | 30,510 |
Production start-up | 15,408 | 19,494 |
Total operating expenses | 103,977 | 94,032 |
Gain on sales of businesses, net | 1,115 | (17) |
Operating income | 243,141 | 18,002 |
Foreign currency loss, net | (2,858) | (5,947) |
Interest income | 27,245 | 25,822 |
Interest expense, net | (9,210) | (748) |
Other expense, net | (2,799) | (1,456) |
Income before taxes | 255,519 | 35,673 |
Income tax (expense) benefit | (18,903) | 6,888 |
Net income | $ 236,616 | $ 42,561 |
Net income per share: | ||
Basic | $ 2.21 | $ 0.40 |
Diluted | $ 2.20 | $ 0.40 |
Weighted-average number of shares used in per share calculations: | ||
Basic | 106,910 | 106,675 |
Diluted | 107,407 | 107,154 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net income | $ 236,616 | $ 42,561 |
Other comprehensive (loss) income | ||
Foreign currency translation adjustments | (8,533) | 2,655 |
Unrealized (loss) gain on marketable securities and restricted marketable securities, net of tax of $102 and $(402) | (2,003) | 6,966 |
Unrealized gain on derivative instruments, net of tax of $(308) and $(708) | 1,062 | 2,214 |
Other comprehensive (loss) income | (9,474) | 11,835 |
Comprehensive income | 227,142 | 54,396 |
Supplemental Income Statement Elements [Abstract] | ||
Unrealized (loss) gain on marketable securities and restricted marketable securities, tax | 102 | (402) |
Unrealized gain on derivative instruments, tax | $ (308) | $ (708) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,682,081 | $ 1,946,994 |
Marketable securities | 308,016 | 155,495 |
Accounts receivable trade, net | 669,745 | 660,776 |
Government grants receivable, net | 184,761 | 659,745 |
Inventories | 970,871 | 819,899 |
Other current assets | 425,919 | 391,900 |
Total current assets | 4,241,393 | 4,634,809 |
Property, plant and equipment, net | 4,915,686 | 4,397,285 |
Deferred tax assets, net | 169,767 | 142,819 |
Restricted marketable securities | 194,482 | 198,310 |
Government grants receivable | 347,845 | 152,208 |
Goodwill | 28,735 | 29,687 |
Intangibles assets, net | 61,889 | 64,511 |
Inventories | 265,034 | 266,899 |
Other assets | 535,751 | 478,604 |
Total assets | 10,760,582 | 10,365,132 |
Current liabilities: | ||
Accounts payable | 239,237 | 207,178 |
Income taxes payable | 52,060 | 22,134 |
Accrued expenses | 528,060 | 524,829 |
Current portion of debt | 200,907 | 96,238 |
Deferred revenue | 692,675 | 413,579 |
Other current liabilities | 45,778 | 42,200 |
Total current liabilities | 1,758,717 | 1,306,158 |
Accrued solar module collection and recycling liability | 134,250 | 135,123 |
Long-term debt | 418,695 | 464,068 |
Deferred revenue | 1,375,407 | 1,591,604 |
Other liabilities | 170,999 | 180,710 |
Total liabilities | 3,858,068 | 3,677,663 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 107,041,246 and 106,847,475 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 107 | 107 |
Additional paid-in capital | 2,878,330 | 2,890,427 |
Accumulated earnings | 4,207,682 | 3,971,066 |
Accumulated other comprehensive loss | (183,605) | (174,131) |
Total stockholders' equity | 6,902,514 | 6,687,469 |
Total liabilities and stockholders' equity | $ 10,760,582 | $ 10,365,132 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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 | 107,041,246 | 106,847,475 |
Common Stock, Shares Outstanding | 107,041,246 | 106,847,475 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Common stock, shares, beginning balance at Dec. 31, 2022 | 106,609,000 | ||||
Stockholders' equity, beginning balance at Dec. 31, 2022 | $ 5,836,055 | $ 107 | $ 2,887,476 | $ 3,140,289 | $ (191,817) |
Net income | 42,561 | 42,561 | |||
Other comprehensive (loss) income | 11,835 | 11,835 | |||
Common stock issued for share-based compensation, shares | 364,000 | ||||
Common stock issued for share-based compensation | 0 | $ 0 | 0 | ||
Tax withholding related to vesting of restricted stock, shares | (148,000) | ||||
Tax withholding related to vesting of restricted stock | (28,314) | $ 0 | (28,314) | ||
Share-based compensation expense | 6,591 | 6,591 | |||
Common stock, shares, ending balance at Mar. 31, 2023 | 106,825,000 | ||||
Stockholders' equity, ending balance at Mar. 31, 2023 | $ 5,868,728 | $ 107 | 2,865,753 | 3,182,850 | (179,982) |
Common stock, shares, beginning balance at Dec. 31, 2023 | 106,847,475 | 106,847,000 | |||
Stockholders' equity, beginning balance at Dec. 31, 2023 | $ 6,687,469 | $ 107 | 2,890,427 | 3,971,066 | (174,131) |
Net income | 236,616 | 236,616 | |||
Other comprehensive (loss) income | (9,474) | (9,474) | |||
Common stock issued for share-based compensation, shares | 316,000 | ||||
Common stock issued for share-based compensation | 0 | $ 0 | 0 | ||
Tax withholding related to vesting of restricted stock, shares | (122,000) | ||||
Tax withholding related to vesting of restricted stock | (18,952) | $ 0 | (18,952) | ||
Share-based compensation expense | $ 6,855 | 6,855 | |||
Common stock, shares, ending balance at Mar. 31, 2024 | 107,041,246 | 107,041,000 | |||
Stockholders' equity, ending balance at Mar. 31, 2024 | $ 6,902,514 | $ 107 | $ 2,878,330 | $ 4,207,682 | $ (183,605) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 236,616 | $ 42,561 |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | ||
Depreciation, amortization and accretion | 90,584 | 68,855 |
Share-based compensation | 6,791 | 6,600 |
Deferred income taxes | (29,033) | (55,282) |
Gain on sales of businesses, net | (1,115) | 17 |
Other, net | (814) | (698) |
Changes in operating assets and liabilities: | ||
Accounts receivable, trade | 17,499 | 33,933 |
Inventories | (149,470) | (122,996) |
Government grants receivable | 281,889 | (70,114) |
Other assets | (89,610) | (60,394) |
Income tax receivable and payable | 26,239 | 43,646 |
Accounts payable and accrued expenses | (160,939) | (61,552) |
Deferred revenue | 37,978 | 139,713 |
Other liabilities | 1,108 | 1,113 |
Net cash provided by (used in) operating activities | 267,723 | (34,598) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (413,456) | (370,961) |
Purchases of marketable securities and restricted marketable securities | (569,446) | (1,470,600) |
Proceeds from maturities of marketable securities | 416,971 | 1,196,334 |
Other investing activities | (2,697) | 0 |
Net cash used in investing activities | (568,628) | (645,227) |
Cash flows from financing activities: | ||
Proceeds from borrowings under debt arrangements, net of issuance costs | 105,420 | 136,000 |
Repayments of Debt | (45,771) | 0 |
Payments of tax withholdings for restricted shares | (18,952) | (28,314) |
Net cash provided by financing activities | 40,697 | 107,686 |
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | (1,938) | 1,495 |
Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents | (262,146) | (570,644) |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of the period | 1,965,069 | 1,493,462 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of the period | 1,702,923 | 922,818 |
Supplemental disclosure of noncash investing and financing activities: | ||
Property, plant and equipment acquisitions funded by liabilities | 445,963 | 330,830 |
Proceeds to be received from asset-based government grants | 154,754 | 0 |
Acquisitions funded by contingent consideration | $ 18,500 | $ 0 |
1. Basis of Presentation
1. Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or for any other period. The condensed consolidated balance sheet at December 31, 2023 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, 2023 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. Cash, Cash Equivalents, and
2. Cash, Cash Equivalents, and Marketable Securities (Notes) | 3 Months Ended |
Mar. 31, 2024 | |
Cash, Cash Equivalents, and Short-Term Investments [Abstract] | |
Cash, Cash Equivalents, and Marketable Securities | 2. Cash, Cash Equivalents, and Marketable Securities Cash, cash equivalents, and marketable securities consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Cash and cash equivalents: Cash $ 980,650 $ 841,310 Money market funds 701,431 1,105,684 Total cash and cash equivalents 1,682,081 1,946,994 Marketable securities: Foreign debt 34,965 34,895 U.S. debt 44,203 44,089 Time deposits 228,848 76,511 Total marketable securities 308,016 155,495 Total cash, cash equivalents, and marketable securities $ 1,990,097 $ 2,102,489 The following table provides a reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents reported within our condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023 to the total of such amounts as presented in the condensed consolidated statements of cash flows (in thousands): Balance Sheet Line Item March 31, December 31, Cash and cash equivalents Cash and cash equivalents $ 1,682,081 $ 1,946,994 Restricted cash – current Other current assets 8,252 8,262 Restricted cash – noncurrent Other assets 3,633 3,621 Restricted cash equivalents – noncurrent Other assets 8,957 6,192 Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 1,702,923 $ 1,965,069 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 March 31, 2024 and December 31, 2023 (in thousands): As of March 31, 2024 Amortized Unrealized Unrealized Allowance for Credit Losses Fair Foreign debt $ 35,000 $ — $ 20 $ 15 $ 34,965 U.S. debt 45,689 123 1,601 8 44,203 Time deposits 228,917 — — 69 228,848 Total $ 309,606 $ 123 $ 1,621 $ 92 $ 308,016 As of December 31, 2023 Amortized Unrealized Unrealized Allowance for Credit Losses Fair Foreign debt $ 35,000 $ — $ 91 $ 14 $ 34,895 U.S. debt 45,625 88 1,614 10 44,089 Time deposits 76,533 — — 22 76,511 Total $ 157,158 $ 88 $ 1,705 $ 46 $ 155,495 The contractual maturities of our marketable securities as of March 31, 2024 were as follows (in thousands): Fair One year or less $ 299,587 One year to two years 4,569 Two years to three years — Three years to four years — Four years to five years — More than five years 3,860 Total $ 308,016 |
3. Restricted Marketable Securi
3. Restricted Marketable Securities | 3 Months Ended |
Mar. 31, 2024 | |
Debt Securities, Available-for-Sale, Restricted [Abstract] | |
Restricted Cash and Investments | 3. Restricted Marketable Securities Restricted marketable securities consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Foreign government obligations $ 49,894 $ 51,229 Supranational debt 15,110 15,339 U.S. debt 110,826 113,326 U.S. government obligations 18,652 18,416 Total restricted marketable securities $ 194,482 $ 198,310 Our restricted marketable securities represent long-term investments to fund the estimated future cost of collecting and recycling modules covered under our solar module collection and recycling program. We have established a trust under which 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. As of March 31, 2024 and December 31, 2023, such custodial accounts also included noncurrent restricted cash and cash equivalents balances of $9.0 million and $6.2 million, respectively, which were reported within “Other assets.” 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. 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. 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 March 31, 2024 and December 31, 2023 (in thousands): As of March 31, 2024 Amortized Unrealized Unrealized Allowance for Credit Losses Fair Foreign government obligations $ 64,127 $ — $ 14,223 $ 10 $ 49,894 Supranational debt 17,634 — 2,524 — 15,110 U.S. debt 146,030 — 35,176 28 110,826 U.S. government obligations 24,437 — 5,780 5 18,652 Total $ 252,228 $ — $ 57,703 $ 43 $ 194,482 As of December 31, 2023 Amortized Unrealized Unrealized Allowance for Credit Losses Fair Foreign government obligations $ 65,202 $ — $ 13,963 $ 10 $ 51,229 Supranational debt 17,688 — 2,349 — 15,339 U.S. debt 146,484 — 33,129 29 113,326 U.S. government obligations 24,460 — 6,039 5 18,416 Total $ 253,834 $ — $ 55,480 $ 44 $ 198,310 As of March 31, 2024, the contractual maturities of these securities were between 7 years and 15 years. |
4. Consolidated Balance Sheet D
4. Consolidated Balance Sheet Details | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Consolidated Balance Sheet Details | 4. Consolidated Balance Sheet Details Accounts receivable trade, net Accounts receivable trade, net consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Accounts receivable trade, gross $ 671,648 $ 662,390 Allowance for credit losses (1,903) (1,614) Accounts receivable trade, net $ 669,745 $ 660,776 Inventories Inventories consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Raw materials $ 454,929 $ 478,138 Work in process 91,051 78,463 Finished goods 689,925 530,197 Inventories $ 1,235,905 $ 1,086,798 Inventories – current $ 970,871 $ 819,899 Inventories – noncurrent $ 265,034 $ 266,899 Other current assets Other current assets consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Spare maintenance materials and parts $ 157,756 $ 148,218 Indirect tax receivables 85,421 65,301 Prepaid expenses 63,541 62,480 Operating supplies 46,587 43,995 Insurance receivable for accrued litigation (1) 21,800 21,800 Restricted cash 8,252 8,262 Prepaid income taxes 6,267 7,064 Derivative instruments (2) 3,490 1,778 Other 32,805 33,002 Other current assets $ 425,919 $ 391,900 —————————— (1) See Note 10. “Commitments and Contingencies” to our condensed consolidated financial statements for discussion of our legal proceedings. (2) See Note 6. “Derivative Financial Instruments” to our condensed consolidated financial statements for discussion of our derivative instruments. Property, plant and equipment, net Property, plant and equipment, net consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Land $ 38,799 $ 35,364 Buildings and improvements 1,042,307 1,037,421 Machinery and equipment 3,651,426 3,593,347 Office equipment and furniture 170,156 161,187 Leasehold improvements 40,322 40,084 Construction in progress 1,748,622 1,223,998 Property, plant and equipment, gross 6,691,632 6,091,401 Accumulated depreciation (1,775,946) (1,694,116) Property, plant and equipment, net $ 4,915,686 $ 4,397,285 Depreciation of property, plant and equipment was $86.7 million and $65.9 million for the three months ended March 31, 2024 and 2023, respectively. Other assets Other assets consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Advance payments for raw materials $ 259,373 $ 204,370 Lease assets (1) 99,114 101,468 Income tax receivables 68,591 68,591 Project assets 26,551 28,430 Prepaid expenses 23,917 23,954 Restricted cash equivalents 8,957 6,192 Restricted cash 3,633 3,621 Other (2) 45,615 41,978 Other assets $ 535,751 $ 478,604 —————————— (1) See Note 7. “Leases” to our condensed consolidated financial statements for discussion of our lease arrangements. (2) In November 2023, First Solar entered into a power purchase agreement with Cleantech Solar (“Cleantech”), a leading provider of renewable energy solutions in India and Southeast Asia. Under the agreement, Cleantech plans to construct certain photovoltaic (“PV”) solar and wind generating assets, which are expected to supply electricity to our manufacturing facility in India. In February 2024, we purchased an ownership interest in a subsidiary of Cleantech for $3.0 million. This subsidiary owns certain of the generation assets that are expected to supply our facility, and we account for our investment in the subsidiary under the equity method of accounting. During the three months ended March 31, 2024, we received advance payments of $21.4 million from this subsidiary for future module sales and recognized $6.1 million of revenue therefrom on module sales of 24 megawatts. Accrued expenses Accrued expenses consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Accrued property, plant and equipment $ 308,432 $ 210,233 Accrued freight 64,703 58,494 Accrued inventory 32,243 101,161 Accrued other taxes 31,868 26,781 Accrued compensation and benefits 19,935 55,960 Product warranty liability (1) 5,900 5,920 Accrued interest 4,312 11,011 Other 60,667 55,269 Accrued expenses $ 528,060 $ 524,829 —————————— (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 March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Accrued litigation (1) $ 21,800 $ 21,800 Lease liabilities (2) 10,523 10,358 Contingent consideration (3) 7,500 7,500 Derivative instruments (4) 1,600 1,744 Other 4,355 798 Other current liabilities $ 45,778 $ 42,200 —————————— (1) See Note 10. “Commitments and Contingencies” to our condensed consolidated financial statements for discussion of our legal proceedings. (2) See Note 7. “Leases” to our condensed consolidated financial statements for discussion of our lease arrangements. (3) See Note 10. “Commitments and Contingencies” to our condensed consolidated financial statements for discussion of our contingent consideration arrangements. (4) See Note 6. “Derivative Financial Instruments” to our condensed consolidated financial statements for discussion of our derivative instruments. Other liabilities Other liabilities consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Lease liabilities (1) $ 51,400 $ 53,725 Deferred tax liabilities, net 41,288 42,771 Other taxes payable 34,775 39,431 Product warranty liability (2) 19,294 19,571 Contingent consideration (3) 11,000 11,000 Other 13,242 14,212 Other liabilities $ 170,999 $ 180,710 —————————— (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.” (3) See Note 10. “Commitments and Contingencies” to our condensed consolidated financial statements for discussion of our contingent consideration arrangements. |
5. Government Grants (Notes)
5. Government Grants (Notes) | 3 Months Ended |
Mar. 31, 2024 | |
Government Assistance [Abstract] | |
Government Assistance | 5. Government Grants Government grants represent benefits provided by federal, state, or local governments that are not subject to the scope of Accounting Standards Codification (“ASC”) 740. We recognize a grant when we have reasonable assurance that we will comply with the grant’s conditions and that the grant will be received. Government grants whose primary condition is the purchase, construction, or acquisition of a long-lived asset are considered asset-based grants and are recognized as a reduction to such asset’s cost-basis, which reduces future depreciation. Other government grants not related to long-lived assets are considered income-based grants, which are recognized as a reduction to the related cost of activities that generated the benefit. The following table presents the benefits recognized from asset-based government grants in our condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023 (in thousands): Balance Sheet Line Item March 31, December 31, Property, plant and equipment, net $ 148,906 $ 146,348 Other assets 5,848 5,860 In February 2021, the state government of Tamil Nadu, India granted First Solar certain incentives associated with the construction of our first manufacturing facility in the country. Among other things, such incentives provide a 24% subsidy for eligible capital investments, contingent upon meeting certain minimum investment and employment commitments. The capital subsidy funding application process begins in the fiscal year following the initial period of module production and is expected to be paid in six annual installments thereafter. The timing of cash receipts is subject to the completion of audit certifications, funding applications by First Solar, and review by state government authorities. Module production in India began during the year ended December 31, 2023. We expect to submit initial funding applications in the second half of 2024. Such credit is reflected on our condensed consolidated balance sheets within “Government grants receivable.” The following table presents the benefits recognized from income-based government grants in our condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended Income Statement Line Item 2024 2023 Cost of sales $ 194,427 $ 70,114 Research and development 4,000 — In August 2022, the U.S. President signed into law the Inflation Reduction Act of 2022 (“IRA”). Among other things, the IRA offers a tax credit, pursuant to Section 45X of the Internal Revenue Code (“IRC”), for solar modules and solar module components manufactured in the United States and sold to third parties. Such credit may be refundable by the Internal Revenue Service (“IRS”) or transferable to a third party and is available from 2023 to 2032, subject to phase down beginning in 2030. For eligible components, the credit is equal to (i) $12 per square meter for a PV wafer, (ii) 4 cents multiplied by the capacity of a PV cell, and (iii) 7 cents multiplied by the capacity of a PV module. Based on the current form factor of our modules, we expect to qualify for a credit of approximately 17 cents per watt for each module produced in the United States and sold to a third party. We recognize such credit as a reduction to “Cost of sales” in the period the modules are sold to customers. Such credit is also reflected on our condensed consolidated balance sheets within “Government grants receivable.” In December 2023, we entered into an agreement with Fiserv, Inc. (“Fiserv”) for the sale of $687.2 million of Section 45X tax credits we generated during 2023 for aggregate cash proceeds of $659.7 million. We received initial cash proceeds of $480.0 million during the three months ended March 31, 2024 and received the remaining cash proceeds of $179.7 million in April 2024. |
6. Derivative Financial Instrum
6. Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
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 various risks, including foreign currency and commodity price risks, that could affect our financial position, results of operations, and cash flows. We may 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 March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 Other Current Assets Other Current Liabilities Derivatives designated as hedging instruments: Commodity swap contracts $ 223 $ — Total derivatives designated as hedging instruments $ 223 $ — Derivatives not designated as hedging instruments: Foreign exchange forward contracts $ 3,267 $ 1,600 Total derivatives not designated as hedging instruments $ 3,267 $ 1,600 Total derivative instruments $ 3,490 $ 1,600 December 31, 2023 Other Current Assets Other Current Liabilities Derivatives designated as hedging instruments: Commodity swap contracts $ — $ 344 Total derivatives designated as hedging instruments $ — $ 344 Derivatives not designated as hedging instruments: Foreign exchange forward contracts $ 1,778 $ 1,400 Total derivatives not designated as hedging instruments $ 1,778 $ 1,400 Total derivative instruments $ 1,778 $ 1,744 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 three months ended March 31, 2024 and 2023 (in thousands): Commodity Swap Contracts Balance as of December 31, 2023 $ (1,493) Amounts recognized in other comprehensive income (loss) 221 Amount reclassified to cost of sales 1,149 Balance as of March 31, 2024 $ (123) Balance as of December 31, 2022 $ (7,242) Amounts recognized in other comprehensive income (loss) 254 Amount reclassified to cost of sales 2,668 Balance as of March 31, 2023 $ (4,320) The following table presents the effect of derivative instruments not designated as hedges on our condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 (in thousands): Amount of Loss Recognized in Income Three Months Ended Income Statement Line Item 2024 2023 Foreign exchange forward contracts Foreign currency loss, net $ (8,949) $ (4,683) Foreign Currency Risk Transaction Exposure and Economic Hedging Many of our subsidiaries have assets and liabilities (primarily cash, receivables, deferred taxes, payables, accrued expenses, lease liabilities, debt, and solar module collection and recycling liabilities) that are denominated in currencies other than the subsidiaries’ functional currencies. Changes in the exchange rates between the functional currencies of our subsidiaries and the other currencies in which these assets and liabilities are denominated will create fluctuations in our reported condensed consolidated statements of operations. 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, net” on our condensed consolidated statements of operations. As of March 31, 2024 and December 31, 2023, 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): March 31, 2024 Transaction Currency Notional Amount USD Equivalent Sell Canadian dollar CAD 4.2 $3.1 Purchase Euro €162.7 $175.5 Sell Euro €26.8 $28.9 Sell Indian rupee INR 67,848.1 $814.0 Purchase Japanese yen ¥1,340.0 $8.9 Sell Japanese yen ¥1,272.6 $8.4 Purchase Malaysian ringgit MYR 219.0 $46.3 Sell Malaysian ringgit MYR 62.5 $13.2 Sell Mexican peso MXN 34.6 $2.1 Purchase Singapore dollar SGD 25.8 $19.1 December 31, 2023 Transaction Currency Notional Amount USD Equivalent Sell Canadian dollar CAD 4.2 $3.2 Sell Chilean peso CLP 1,372.6 $1.6 Purchase Euro €98.3 $108.7 Sell Euro €14.1 $15.6 Sell Indian rupee INR 62,967.4 $756.9 Purchase Japanese yen ¥1,053.6 $7.5 Sell Japanese yen ¥705.2 $5.0 Purchase Malaysian ringgit MYR 160.7 $35.0 Sell Mexican peso MXN 34.6 $2.0 Purchase Singapore dollar SGD 6.5 $4.9 Commodity Price Risk From time to time, we use commodity swap contracts to mitigate our exposure to commodity price fluctuations for certain raw materials used in the production of our modules. During the year ended December 31, 2022, we entered into various commodity swap contracts to hedge a portion of our forecasted cash flows for purchases of aluminum frames between July 2022 and December 2023. Such swaps had an aggregate initial notional value based on metric tons of forecasted aluminum purchases, equivalent to $70.5 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 contracts proportionately adjusted with forecasted purchases of aluminum frames. During the three months ended March 31, 2024, we entered into various commodity swap contracts to hedge a portion of our forecasted cash flows for purchases of steel between April 2024 and December 2024. Such swaps had an aggregate initial notional value based on short tons of forecasted steel purchases, equivalent to $7.6 million, and entitle us to receive the price based on the U.S. Midwest Hot-Rolled Coil Steel Index while requiring us to pay certain fixed prices. The notional amount of the commodity swap contracts proportionately adjusts with forecasted purchases of steel. As of March 31, 2024, the notional value associated with these contracts was $5.9 million. These commodity swap 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 transactions occur and impact earnings. We determined that these derivative financial instruments were highly effective as cash flow hedges as of March 31, 2024 and December 31, 2023. In the following 12 months, we expect to reclassify into earnings $0.1 million of net unrealized losses related to these commodity swap contracts that are included in “Accumulated other comprehensive loss” at March 31, 2024 as we realize the earnings effects of the related forecasted transactions. |
7. Leases
7. Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Lessee, Operating Leases | 7. Leases Our lease arrangements include land associated with our corporate and administrative offices, land for our manufacturing facilities, and certain of our manufacturing equipment. Such leases primarily relate to assets located in the United States, Malaysia, India, and Vietnam. The following table presents certain quantitative information related to our lease arrangements for the three months ended March 31, 2024 and 2023, and as of March 31, 2024 and December 31, 2023 (in thousands): Three Months Ended 2024 2023 Finance lease cost: Amortization of right-of-use assets $ 116 $ — Interest on lease liabilities 230 — Operating lease cost 3,221 2,937 Variable lease cost 709 895 Short-term lease cost 184 70 Total lease cost $ 4,460 $ 3,902 Payments of amounts included in the measurement of: Operating lease liabilities $ 3,001 $ 2,753 Finance lease liabilities 46 — Lease assets obtained in exchange for operating lease liabilities 506 251 March 31, 2024 December 31, 2023 Operating Leases Finance Operating Leases Finance Lease assets $ 82,181 $ 16,933 $ 84,419 $ 17,049 Lease liabilities – current 10,287 236 10,307 51 Lease liabilities – noncurrent 34,337 17,063 36,662 17,063 Weighted-average remaining lease term 5 years 40 years 5 years 40 years Weighted-average discount rate 5.2 % 5.4 % 5.2 % 5.4 % As of March 31, 2024, the future payments associated with our lease liabilities were as follows (in thousands): Operating Leases Finance Leases Remainder of 2024 $ 9,075 $ 113 2025 11,525 196 2026 9,857 1,014 2027 7,324 1,014 2028 6,957 1,016 2029 5,294 1,064 Thereafter 13 42,201 Total future payments 50,045 46,618 Less: interest (5,421) (29,319) Total lease liabilities $ 44,624 $ 17,299 |
Lessee, Finance Leases | 7. Leases Our lease arrangements include land associated with our corporate and administrative offices, land for our manufacturing facilities, and certain of our manufacturing equipment. Such leases primarily relate to assets located in the United States, Malaysia, India, and Vietnam. The following table presents certain quantitative information related to our lease arrangements for the three months ended March 31, 2024 and 2023, and as of March 31, 2024 and December 31, 2023 (in thousands): Three Months Ended 2024 2023 Finance lease cost: Amortization of right-of-use assets $ 116 $ — Interest on lease liabilities 230 — Operating lease cost 3,221 2,937 Variable lease cost 709 895 Short-term lease cost 184 70 Total lease cost $ 4,460 $ 3,902 Payments of amounts included in the measurement of: Operating lease liabilities $ 3,001 $ 2,753 Finance lease liabilities 46 — Lease assets obtained in exchange for operating lease liabilities 506 251 March 31, 2024 December 31, 2023 Operating Leases Finance Operating Leases Finance Lease assets $ 82,181 $ 16,933 $ 84,419 $ 17,049 Lease liabilities – current 10,287 236 10,307 51 Lease liabilities – noncurrent 34,337 17,063 36,662 17,063 Weighted-average remaining lease term 5 years 40 years 5 years 40 years Weighted-average discount rate 5.2 % 5.4 % 5.2 % 5.4 % As of March 31, 2024, the future payments associated with our lease liabilities were as follows (in thousands): Operating Leases Finance Leases Remainder of 2024 $ 9,075 $ 113 2025 11,525 196 2026 9,857 1,014 2027 7,324 1,014 2028 6,957 1,016 2029 5,294 1,064 Thereafter 13 42,201 Total future payments 50,045 46,618 Less: interest (5,421) (29,319) Total lease liabilities $ 44,624 $ 17,299 |
8. Fair Value Measurements
8. Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
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 and Restricted Cash Equivalents. At March 31, 2024 and December 31, 2023, our cash equivalents and restricted cash equivalents consisted of money market funds. We value our cash equivalents and restricted 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 March 31, 2024 and December 31, 2023, our marketable securities consisted of foreign debt, U.S. debt, and time deposits, and our restricted marketable securities consisted of foreign and U.S. government obligations, supranational debt, and U.S. debt. 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 March 31, 2024 and December 31, 2023, our derivative assets and liabilities consisted of foreign exchange forward contracts involving major currencies 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 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 March 31, 2024 and December 31, 2023, the fair value measurements of our assets and liabilities measured on a recurring basis were as follows (in thousands): Fair Value Measurements at Reporting March 31, Quoted Prices Significant Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 701,431 $ 701,431 $ — $ — Restricted cash equivalents: Money market funds 8,957 8,957 — — Marketable securities: Foreign debt 34,965 — 34,965 — U.S. debt 44,203 — 44,203 — Time deposits 228,848 228,848 — — Restricted marketable securities 194,482 — 194,482 — Derivative assets 3,490 — 3,490 — Total assets $ 1,216,376 $ 939,236 $ 277,140 $ — Liabilities: Derivative liabilities $ 1,600 $ — $ 1,600 $ — Fair Value Measurements at Reporting December 31, Quoted Prices Significant Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 1,105,684 $ 1,105,684 $ — $ — Restricted cash equivalents: Money market funds 6,192 6,192 — — Marketable securities: Foreign debt 34,895 — 34,895 — U.S. debt 44,089 — 44,089 — Time deposits 76,511 76,511 — — Restricted marketable securities 198,310 — 198,310 — Derivative assets 1,778 — 1,778 — Total assets $ 1,467,459 $ 1,188,387 $ 279,072 $ — Liabilities: Derivative liabilities $ 1,744 $ — $ 1,744 $ — Fair Value of Financial Instruments At March 31, 2024 and December 31, 2023, the carrying values and fair values of our financial instruments not measured at fair value were as follows (in thousands): March 31, 2024 December 31, 2023 Carrying Fair Carrying Fair Assets: Government grants receivable - noncurrent $ 347,845 $ 310,688 $ 152,208 $ 107,111 Liabilities: Long-term debt (1) $ 500,000 $ 456,132 $ 500,000 $ 453,015 —————————— (1) Excludes unamortized issuance costs and debt arrangements with an original maturity of less than one year. The carrying values in our condensed consolidated balance sheets of our current trade accounts receivable, restricted cash, current government grants receivable, accounts payable, accrued expenses, and debt arrangements with an original maturity of less than one year 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 noncurrent government grants 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 cash equivalents, restricted marketable securities, 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 these instruments with various high-quality financial institutions and limit the amount of credit risk from any one counterparty. We monitor 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. We typically require some form of payment security from our customers, including, but not limited to, advance payments, parent guarantees, letters of credit, bank guarantees, or surety bonds. |
9. Debt
9. Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Instruments [Abstract] | |
Debt | 9. Debt Our debt arrangements consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): Balance (USD) Loan Agreement Currency March 31, December 31, Revolving Credit Facility USD $ — $ — India Credit Facility USD 500,000 500,000 India JPM Working Capital Facility INR 60,705 60,827 India HSBC Working Capital Facility INR 59,385 — Total debt principal 620,090 560,827 Less: unamortized issuance costs (488) (521) Total debt 619,602 560,306 Less: current portion (200,907) (96,238) Noncurrent portion $ 418,695 $ 464,068 Revolving Credit Facility In June 2023, we entered into a credit agreement with several financial institutions as lenders and JPMorgan Chase Bank, N.A. as administrative agent, which provides us with a senior secured credit facility (the “Revolving Credit Facility”) with an aggregate borrowing capacity of $1.0 billion. Borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to, at our option, (i) the Term Secured Overnight Financing Rate (“Term SOFR”), plus a credit spread of 0.10%, plus a margin that ranges from 1.25% to 2.25% or (ii) an alternate base rate as defined in the credit agreement, plus a margin that ranges from 0.25% to 1.25%. The margins under the Revolving Credit Facility are based on the Company’s net leverage ratio or, if the Company elects to switch to a credit ratings-based system after the investment grade ratings trigger date occurs (as defined in the credit agreement), the Company’s public debt rating. In addition to paying interest on outstanding principal under the Revolving Credit Facility, we are required to pay an unused commitment fee that ranges from 0.125% to 0.375% per annum based on the same factors discussed above and the daily unused commitments under the facility. We are also required to pay (i) a letter of credit fee based on the applicable margin for Term SOFR loans on the face amount of each letter of credit, (ii) a letter of credit fronting fee as agreed by the Company and such issuing lender, and (iii) other customary letter of credit fees. Our Revolving Credit Facility matures in June 2028. As of March 31, 2024 and December 31, 2023, we had no borrowings or letters of credit under our Revolving Credit Facility. Loans and letters of credit issued under the Revolving Credit Facility are secured by liens on substantially all of the Company’s tangible and intangible assets. India Credit Facility In July 2022, FS India Solar Ventures Private Limited (“FSISV”), our indirect wholly-owned subsidiary, entered into a finance agreement (the “India Credit Facility”) with the U.S. International Development Finance Corporation for aggregate borrowings of up to $500.0 million for the development and construction of a solar module manufacturing facility in India. Principal on the India Credit Facility is payable in scheduled semi-annual installments beginning in the second half of 2024 through the facility’s expected maturity in August 2029. The India Credit Facility is guaranteed by First Solar, Inc. India JPM Working Capital Facility In December 2022, FSISV entered into a working capital facility agreement (the “India JPM Working Capital Facility”) with JPMorgan Chase Bank, N.A. for the issuance of bank guarantees, bonds, and other similar forms of security. During 2023, the India JPM Working Capital Facility was amended to include certain working capital loans of up to INR 6.2 billion ($74.8 million). The outstanding balance matures during the second and third quarters of 2024. The India JPM Working Capital Facility is guaranteed by First Solar, Inc. India HSBC Working Capital Facility In February 2024, FSISV entered into a working capital facility agreement (the “India HSBC Working Capital Facility”) with the Hongkong and Shanghai Banking Corporation Limited, which provides certain working capital loans of up to INR 8.2 billion ($98.4 million). The outstanding balance matures in the third quarter of 2024. The India HSBC Working Capital Facility is guaranteed by First Solar, Inc. Interest Rates As of March 31, 2024, the borrowing rates for our debt arrangements were as follows: Loan Agreement Interest Rate Description Interest Rate India Credit Facility U.S. Treasury Constant Maturity Yield plus 1.75% 5.57% India JPM Working Capital Facility (1) India Treasury bill rate plus 2% 9.08% India HSBC Working Capital Facility (1) India Treasury bill rate plus 1.5% to 1.6% 8.44% —————————— (1) The weighted-average interest rate for our outstanding short-term debt arrangements was 8.76% as of March 31, 2024. Future Principal Payments At March 31, 2024, the future principal payments on our debt arrangements were due as follows (in thousands): Total Debt Remainder of 2024 $ 155,540 2025 90,900 2026 90,900 2027 90,950 2028 91,000 2029 100,800 Thereafter — Total debt future principal payments $ 620,090 |
10. Commitments and Contingenci
10. Commitments and Contingencies (Notes) | 3 Months Ended |
Mar. 31, 2024 | |
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 and surety bonds to provide financial and performance assurance to third parties. As of March 31, 2024, the issued and outstanding amounts and available capacities under these commitments were as follows (in millions): Issued and Outstanding Available Capacity Revolving Credit Facility (1) $ — $ 250.0 Bilateral facilities (2) 188.3 116.7 Surety bonds 28.6 225.0 —————————— (1) Our Revolving Credit Facility provides us with a sub-limit of $250.0 million to issue letters of credit, at a fee based on the applicable margin for Term SOFR loans, a fronting fee, and other customary letter of credit fees. (2) Of the total letters of credit issued under the bilateral facilities, $9.2 million was secured with cash. Product Warranties When we recognize revenue for sales of modules, we accrue liabilities for the estimated future costs of meeting our limited warranty obligations. 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. 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 months ended March 31, 2024 and 2023 were as follows (in thousands): Three Months Ended 2024 2023 Product warranty liability, beginning of period $ 25,491 $ 33,787 Accruals for new warranties issued 1,397 994 Settlements (2,192) (1,326) Changes in estimate of product warranty liability 498 (140) Product warranty liability, end of period $ 25,194 $ 33,315 Current portion of warranty liability $ 5,900 $ 10,236 Noncurrent portion of warranty liability $ 19,294 $ 23,079 Indemnifications In certain limited circumstances, we have provided indemnifications to customers or other parties under which we are contractually obligated to compensate such parties for losses they suffer resulting from a breach of a representation, warranty, or covenant; the resolution of specific matters associated with a project’s development or construction; guarantees of a third party’s payment or performance obligations; or any disallowance or lack of the right to claim all or any portion of certain tax credits. For 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 may base these estimates on the cost of insurance or other instruments that cover the underlying risks being indemnified and may purchase such instruments 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 earnings associated with the related transaction. After an indemnification liability is recorded, we derecognize such amount pursuant to ASC 460 depending on the nature of the indemnity, which derecognition typically occurs upon e xpiration or settlement of the arrangement, and any contingent aspects of the indemnity are accounted for in accordance with ASC 450. As of March 31, 2024 and December 31, 2023, we accrued $2.5 million and $3.3 million of current indemnification liabilities, respectively. As of March 31, 2024, the maximum potential amount of future payments under our indemnifications was $510.1 million. Contingent Consideration As part of our acquisition of Evolar AB (“Evolar”) in May 2023, we agreed to pay additional consideration of up to $42.5 million to the selling shareholders contingent upon the successful achievement of certain technical milestones. As of March 31, 2024 and December 31, 2023, we recorded $7.5 million of current liabilities and $11.0 million of long-term liabilities for such contingent obligations based on their estimated fair values. 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 are 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. Our module collection and recycling liability was $134.3 million and $135.1 million as of March 31, 2024 and December 31, 2023, respectively. See Note 3. “Restricted Marketable Securities” to our condensed consolidated financial statements for more information about our arrangements for funding this liability. Legal Proceedings In July 2021, Southern Power Company and certain of its affiliates (“Southern”) filed an arbitration demand with the American Arbitration Association against two subsidiaries of the Company, alleging breach of the engineering, procurement, and construction (“EPC”) agreements for five projects in the United States, for which the Company’s subsidiaries served as the EPC contractor. The arbitration demand asserts breach of obligations to design and engineer the projects in accordance with the EPC agreements, particularly as such obligations relate to the procurement of tracker systems and inverters. The Company and its subsidiaries denied the claims, and defended the claims in arbitration hearings, which concluded in February 2023. In May 2023, the parties submitted their final proposals of individual award claims to the arbitration panel. In July 2023, the arbitration panel entered an interim award to Southern for $35.6 million, which was paid during the year ended December 31, 2023. As a result, we recognized a loss for such interim award in our results of operations for the year ended December 31, 2023. The final arbitration award, which did not change the results of the interim award, was signed on November 6, 2023. On February 2, 2024, First Solar commenced an action in the New York County Supreme Court seeking to vacate certain aspects of the final award. As of April 29, 2024, the petition has been fully briefed, and we are awaiting a decision from the court. During the year ended December 31, 2022, we received several indemnification demands from certain customers, for whom we provided EPC services, regarding claims that such customers’ PV tracker systems infringe, in part, on patents owned by Rovshan Sade (“Sade”), the owner of a company called Trabant Solar, Inc. In January 2023, we were notified by two of our customers that Sade served them with patent infringement complaints, and we have assumed the defense of these claims. We have conducted due diligence on the patents and claims and believe that we will prevail in the actions. In April 2023, we commenced an Inter Partes Review (“IPR”) before the United States Patent and Trademark Office seeking to invalidate such claims. On November 16, 2023, the United States Patent Trial and Appeal Board declined to hear the First Solar IPR. As a result, the stays in the court actions have been lifted and the litigation will proceed. On March 25, 2024, a new case management order was entered, aligning the schedules for all of the Sade cases. Substantive discovery has not yet commenced. Because we remain in early stages of the litigation, at this time we are not in a position to assess the likelihood of any potential loss or adverse effect on our financial condition or to estimate the amount or range of possible loss, if any, from these actions. In April 2019, a subcontractor of First Solar sustained certain injuries while performing work at a former project site and, in May 2019, commenced legal action against a subsidiary of the Company. In June 2023, a jury awarded damages of approximately $51.3 million to the plaintiff. On September 21, 2023, the Superior Court of California for Monterey County ruled, in response to a motion for remittitur filed by the Company, that the damages awarded to the plaintiff were excessive and reduced the award from $51.3 million to $21.8 million. The plaintiff and defendant have appealed and cross appealed varying aspects of the verdict and the remittitur. Accordingly, due to the uncertainty surrounding the multiple decisions and appeals, as of March 31, 2024, we recorded a $21.8 million accrued litigation payable included in “Other current liabilities” in our condensed consolidated balance sheet. We believe the full amount of awarded damages will be covered by our various insurance policies. Accordingly, we also recorded a $21.8 million receivable included in “Other current assets” in our condensed consolidated balance sheet as of March 31, 2024. The plaintiff did not accept the reduced award by the court ordered deadline of October 10, 2023, and, as a result, the $21.8 million award has been vacated and a new trial will be scheduled. We, in conjunction with our insurance carriers, are challenging the initial verdict in an appellate court, and the plaintiff is cross appealing from the decision to reduce the award, among other issues, stemming from the trial. The parties are awaiting a briefing schedule from the Appellate Court. On September 29, 2023, the Company received a subpoena from the Division of Enforcement of the SEC seeking documents and information since 2019 relating to the Company’s operations in India, the Company's entry into a PV module supply agreement with an India-based customer, and certain aspects of the Company's technology roadmap, among other things. The Company is cooperating with the SEC and cannot predict the ultimate timing, scope, or outcome of this matter. We are party to other legal matters and claims in the normal course of our operations. While we believe the ultimate outcome of these 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) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers [Text Block] | 11. Revenue from Contracts with Customers 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. For certain contracts, we may also be required to make liquidated damage payments if we fail to deliver modules that meet certain U.S. domestic content requirements. We recognize these liquidated damages as a reduction of revenue in the period we transfer control of the modules to the customer. The following table reflects the changes in our contract liabilities, which we classify as “Deferred revenue,” for the three months ended March 31, 2024 (in thousands): March 31, December 31, Three Month Change Deferred revenue $ 2,068,082 $ 2,005,183 $ 62,899 3 % During the three months ended March 31, 2024, our contract liabilities increased by $62.9 million primarily due to advance payments received in the current year for future sales of solar modules, partially offset by the recognition of revenue for sales of solar modules for which payment was received in prior years. During the three months ended March 31, 2024 and 2023, we recognized revenue of $126.3 million and $90.4 million, respectively, that was included in the corresponding contract liability balance at the beginning of the periods. As of March 31, 2024, we had entered into contracts with customers for the future sale of 78.3 GW of solar modules for an aggregate transaction price of $23.4 billion, which we expect to recognize as revenue through 2030 as we transfer control of the modules to the customers. Such aggregate transaction price excludes estimates of variable consideration associated with (i) future module technology improvements, including enhancements to certain energy related attributes, (ii) sales freight in excess of defined thresholds, (iii) changes to certain commodity prices, and (iv) the module wattage committed for delivery, among other things. As a result, the revenue recognized from such contracts may increase or decrease in future periods relative to the original transaction price. These contracts may also be subject to amendments as agreed to by the parties to the contract. 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. See Note 16. “Segment Reporting” for the disaggregation of revenue by reportable segment. |
12. Share-Based Compensation
12. Share-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement, Recognized 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 months ended March 31, 2024 and 2023 (in thousands): Three Months Ended 2024 2023 Cost of sales $ 1,027 $ 926 Selling, general and administrative 4,869 4,782 Research and development 920 877 Production start-up (25) 15 Total share-based compensation expense $ 6,791 $ 6,600 As of March 31, 2024, we had $52.0 million of unrecognized share-based compensation expense related to unvested restricted stock and performance units, which we expect to recognize over a weighted-average period of approximately 1.7 years. In March 2020, the compensation committee of our board of directors approved grants of performance units (“PU” or “PUs”) for key executive officers to be earned over a multi-year performance period, which ended in December 2022. Vesting of the 2020 grants of PUs was contingent upon the relative attainment of target contracted revenue, module wattage, and return on capital metrics. In March 2023, the compensation committee certified the achievement of the vesting conditions applicable to the grants, which approximated the target level of performance. Accordingly, each participant received one share of common stock for each vested PU granted, net of any tax withholdings. In May 2021, the compensation committee approved grants of PUs for key executive officers to be earned over a multi-year performance period, which ended in December 2023. Vesting of the 2021 grants of PUs was contingent upon the relative attainment of target contracted revenue, cost per watt, incremental average selling price, and operating income metrics. In February 2024, the compensation committee certified the achievement of the vesting conditions applicable to the grants, which approximated the maximum level of performance. Accordingly, each participant received one share of common stock for each vested PU granted, net of any tax withholdings. In March 2022, the compensation committee approved additional grants of PUs for key executive officers. Such grants are expected to be earned over a multi-year performance period ending in December 2024. Vesting of the 2022 grants of PUs is contingent upon the relative attainment of target contracted revenue, cost per watt, and return on capital metrics. In March 2023, the compensation committee approved additional grants of PUs for key executive officers. Such grants are expected to be earned over a multi-year performance period ending in December 2025. Vesting of the 2023 grants of PUs is contingent upon the relative attainment of target contracted revenue, production, and operating margin metrics. In March 2024, the compensation committee approved additional grants of PUs for key executive officers. Such grants are expected to be earned over a multi-year performance period ending in December 2026. Vesting of the 2024 grants of PUs is contingent upon the relative attainment of target contracted revenue, production, incremental average selling price, and operating margin metrics. Vesting of PUs 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 PUs 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 | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes The Inflation Reduction Act. In August 2022, the U.S. President signed into law the IRA, which revised U.S. tax law by, among other things, including a new corporate alternative minimum tax of 15% on certain large corporations, imposing a 1% excise tax on stock buybacks, and providing various incentives to address climate change, including the introduction of the advanced manufacturing production credit under Section 45X of the IRC. The provisions of the IRA are generally effective for tax years beginning after 2022. Certain developments to technical guidance and regulations include the following: • In May 2023, the U.S. Treasury Department and the IRS issued initial guidance on the domestic content bonus credit under various sections of the IRC, including Section 45X. • In December 2023, the U.S. Treasury Department and the IRS issued a notice of proposed rulemaking and public hearing providing initial guidance that confirms certain key aspects of the Section 45X credit. • In March 2024, the U.S. Treasury Department and the IRS issued final regulations on the direct payment election under Section 6417 of the IRC. The final regulations apply to tax years ending on or after March 11, 2024 and mostly adopt and confirm the proposed regulations previously issued in June 2023. • In April 2024, the U.S. Treasury Department and the IRS issued final regulations on the elective transfer provisions under Section 6418 of the IRC. The final regulations will apply 60 days after publication in the Federal Register and mostly adopt and confirm the proposed regulations previously issued in June 2023. Given the complexities of the IRA, which is pending additional technical guidance and additional final regulations from the IRS and U.S. Treasury Department, we expect to continue to monitor these developments and evaluate the potential future impact to our results of operations. Foreign tax credit regulations . In November 2022, the U.S. Treasury Department released proposed foreign tax credit (“FTC”) regulations addressing various aspects of the U.S. FTC regime. Among other items, these proposed regulations provide certain exceptions for determining creditable foreign withholding taxes. Taxpayers may rely on these proposed regulations, which apply to tax years beginning on or after December 28, 2021. As a result of these proposed regulations, foreign withholding taxes will continue to be creditable. In July 2023, the U.S. Treasury Department issued Notice 2023-55, which provides temporary relief for taxpayers in determining whether a foreign tax is eligible for a foreign tax credit for taxable years beginning on or after December 28, 2021, and ending before December 31, 2023. In December 2023, the U.S. Treasury Department issued Notice 2023-80, which extends this relief period until future guidance is issued. Pillar Two . In December 2021, the Organization for Economic Co-operation and Development released model rules for a new global minimum tax framework (“Pillar Two”). Certain governments in countries in which we operate have enacted local Pillar Two legislation, with an effective date from January 1, 2024. We currently do not expect Pillar Two to have a material impact on our 2024 financial statements. As these legislative changes develop and expand, we expect to continue to monitor these changes and evaluate the potential impact to our financial results. Our effective tax rate was 7.4% and (19.3)% for the three months ended March 31, 2024 and 2023, respectively. The increase in our effective tax rate was primarily driven by the relative size of our pretax income in the prior period and higher prior period excess tax benefits associated with share-based compensation, partially offset by higher prior period losses in certain jurisdictions for which no tax benefit could be recorded. 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 IRA described above and excess tax benefits associated with share-based compensation. 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 has been granted a long-term tax incentive that generally provides a full exemption from Vietnamese income tax through 2023, followed by reduced annual tax rates of 5% through 2032 and 10% through 2036. Such long-term tax incentive is conditional upon our continued compliance with certain revenue and research and development (“R&D”) spending thresholds, which we are currently in compliance with and expect to continue to comply with through the expiration of the tax holiday. We are subject to audit by federal, state, local, and foreign tax authorities. We are currently under examination in India, Chile, Singapore, and Malaysia. 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 per Share
14. Net Income per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income per Share | 14. Net Income per Share The calculation of basic and diluted net income per share for the three months ended March 31, 2024 and 2023 was as follows (in thousands, except per share amounts): Three Months Ended 2024 2023 Basic net income per share Numerator: Net income $ 236,616 $ 42,561 Denominator: Weighted-average common shares outstanding 106,910 106,675 Diluted net income per share Denominator: Weighted-average common shares outstanding 106,910 106,675 Effect of restricted stock and performance units 497 479 Weighted-average shares used in computing diluted net income per share 107,407 107,154 Net income per share: Basic $ 2.21 $ 0.40 Diluted $ 2.20 $ 0.40 The following table summarizes the potential shares of common stock that were excluded from the computation of diluted net income per share for the three months ended March 31, 2024 and 2023 as such shares would have had an anti-dilutive effect (in thousands): Three Months Ended 2024 2023 Anti-dilutive shares 17 11 |
15. Accumulated Other Comprehen
15. Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2024 | |
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 three months ended March 31, 2024 (in thousands): Foreign Currency Translation Adjustment Unrealized (Loss) Gain on Marketable Securities and Restricted Marketable Securities Unrealized (Loss) Gain on Derivative Instruments Total Balance as of December 31, 2023 $ (118,366) $ (54,610) $ (1,155) $ (174,131) Other comprehensive (loss) income before reclassifications (8,533) (2,105) 221 (10,417) Amounts reclassified from accumulated other comprehensive loss — — 1,149 1,149 Net tax effect — 102 (308) (206) Net other comprehensive (loss) income (8,533) (2,003) 1,062 (9,474) Balance as of March 31, 2024 $ (126,899) $ (56,613) $ (93) $ (183,605) The following table presents the pretax amounts reclassified from accumulated other comprehensive loss into our condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 (in thousands): Comprehensive Income Components Income Statement Line Item Three Months Ended 2024 2023 Foreign currency translation adjustment: Foreign currency translation adjustment Cost of sales $ — $ 146 Foreign currency translation adjustment Other expense, net — (10) Total foreign currency translation adjustment — 136 Unrealized loss on derivative contracts: Commodity swap contracts Cost of sales (1,149) (2,668) Total loss reclassified $ (1,149) $ (2,532) |
16. Segment Reporting
16. Segment Reporting | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting Information, Profit (Loss) [Abstract] | |
Segment Reporting | 16. Segment Reporting Our primary segment is our modules business, which 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 system developers, independent power producers, utilities, commercial and industrial companies, and other system owners and operators. Our residual business operations include certain project development activities, O&M services, the results of operations from PV solar power systems we owned and operated in certain international regions, and the sale of such systems to third-party customers. See Note 21. “Segment and Geographical Information” in our Annual Report on Form 10-K for the year ended December 31, 2023 for additional discussion of our segment reporting. The following tables provide a reconciliation of certain financial information for our reportable segment to information presented in our condensed consolidated financial statements for the three months ended March 31, 2024 and 2023 and as of March 31, 2024 and December 31, 2023 (in thousands): Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Modules Other Total Modules Other Total Net sales $ 793,434 $ 674 $ 794,108 $ 536,590 $ 11,696 $ 548,286 Gross profit (loss) 346,168 (165) 346,003 106,894 5,157 112,051 Depreciation and amortization expense 81,062 3 81,065 61,583 2 61,585 March 31, 2024 December 31, 2023 Modules Other Total Modules Other Total Goodwill $ 28,735 $ — $ 28,735 $ 29,687 $ — $ 29,687 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 236,616 | $ 42,561 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | From time to time, our directors and officers may adopt plans for the purchase or sale of our securities. Such plans may be designed to satisfy the affirmative defense conditions of Rule 10b5-1 under the Exchange Act or may constitute non-Rule 10b5-1 trading arrangements (as defined in Item 408(c) of Regulation S-K). During the three months ended March 31, 2024, none of our officers or directors adopted or terminated non-Rule 10b5-1 trading arrangements. However, certain of our officers adopted Rule 10b5-1 trading plans for the sale of our securities. The following table provides certain terms of such plans: Name Position Action Adoption Date Expiration Date Aggregate Number of Alexander R. Bradley Chief Financial Officer Adoption March 1, 2024 October 31, 2024 16,051 Michael Koralewski Chief Supply Chain Officer Adoption March 1, 2024 February 28, 2025 6,022 Mark R. Widmar Chief Executive Officer Adoption March 4, 2024 March 4, 2025 65,576 Jason Dymbort General Counsel & Secretary Adoption March 5, 2024 March 5, 2025 2,308 Kuntal Kumar Verma Chief Manufacturing Officer Adoption March 6, 2024 July 31, 2024 1,621 Patrick Buehler Chief Product Officer Adoption March 6, 2024 January 31, 2025 9,587 —————————— (1) Represents the gross number of shares subject to the Rule 10b5-1(c) plan, excluding the potential effect of shares withheld for taxes. Amounts related to PUs are presented at their target amounts. The actual number of PUs that vest following the end of the applicable performance period, if any, will depend on the relative attainment of the performance metrics. |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Alexander R. Bradley [Member] | |
Trading Arrangements, by Individual | |
Name | Alexander R. Bradley |
Title | Chief Financial Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 1, 2024 |
Termination Date | October 31, 2024 |
Aggregate Available | 16,051 |
Michael Koralewski [Member] | |
Trading Arrangements, by Individual | |
Name | Michael Koralewski |
Title | Chief Supply Chain Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 1, 2024 |
Termination Date | February 28, 2025 |
Aggregate Available | 6,022 |
Mark R. Widmar [Member] | |
Trading Arrangements, by Individual | |
Name | Mark R. Widmar |
Title | Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 4, 2024 |
Termination Date | March 4, 2025 |
Aggregate Available | 65,576 |
Jason Dymbort [Member] | |
Trading Arrangements, by Individual | |
Name | Jason Dymbort |
Title | General Counsel & Secretary |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 5, 2024 |
Termination Date | March 5, 2025 |
Aggregate Available | 2,308 |
Kuntal Verma [Member] | |
Trading Arrangements, by Individual | |
Name | Kuntal Kumar Verma |
Title | Chief Manufacturing Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 6, 2024 |
Termination Date | July 31, 2024 |
Aggregate Available | 1,621 |
Patrick Buehler [Member] | |
Trading Arrangements, by Individual | |
Name | Patrick Buehler |
Title | Chief Product Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 6, 2024 |
Termination Date | January 31, 2025 |
Aggregate Available | 9,587 |
2. Cash, Cash Equivalents and M
2. Cash, Cash Equivalents and Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Cash, Cash Equivalents, and Short-Term Investments [Abstract] | |
Schedule of Cash, Cash Equivalents, and Marketable Securities | Cash, cash equivalents, and marketable securities consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Cash and cash equivalents: Cash $ 980,650 $ 841,310 Money market funds 701,431 1,105,684 Total cash and cash equivalents 1,682,081 1,946,994 Marketable securities: Foreign debt 34,965 34,895 U.S. debt 44,203 44,089 Time deposits 228,848 76,511 Total marketable securities 308,016 155,495 Total cash, cash equivalents, and marketable securities $ 1,990,097 $ 2,102,489 |
Reconciliation of Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents reported within our condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023 to the total of such amounts as presented in the condensed consolidated statements of cash flows (in thousands): Balance Sheet Line Item March 31, December 31, Cash and cash equivalents Cash and cash equivalents $ 1,682,081 $ 1,946,994 Restricted cash – current Other current assets 8,252 8,262 Restricted cash – noncurrent Other assets 3,633 3,621 Restricted cash equivalents – noncurrent Other assets 8,957 6,192 Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 1,702,923 $ 1,965,069 |
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 March 31, 2024 and December 31, 2023 (in thousands): As of March 31, 2024 Amortized Unrealized Unrealized Allowance for Credit Losses Fair Foreign debt $ 35,000 $ — $ 20 $ 15 $ 34,965 U.S. debt 45,689 123 1,601 8 44,203 Time deposits 228,917 — — 69 228,848 Total $ 309,606 $ 123 $ 1,621 $ 92 $ 308,016 As of December 31, 2023 Amortized Unrealized Unrealized Allowance for Credit Losses Fair Foreign debt $ 35,000 $ — $ 91 $ 14 $ 34,895 U.S. debt 45,625 88 1,614 10 44,089 Time deposits 76,533 — — 22 76,511 Total $ 157,158 $ 88 $ 1,705 $ 46 $ 155,495 |
Available-for-sale Marketable Securities by Maturity | The contractual maturities of our marketable securities as of March 31, 2024 were as follows (in thousands): Fair One year or less $ 299,587 One year to two years 4,569 Two years to three years — Three years to four years — Four years to five years — More than five years 3,860 Total $ 308,016 |
3. Restricted Marketable Secu_2
3. Restricted Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Securities, Available-for-Sale, Restricted [Abstract] | |
Schedule of Restricted Marketable Securities | Restricted marketable securities consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Foreign government obligations $ 49,894 $ 51,229 Supranational debt 15,110 15,339 U.S. debt 110,826 113,326 U.S. government obligations 18,652 18,416 Total restricted marketable securities $ 194,482 $ 198,310 |
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 March 31, 2024 and December 31, 2023 (in thousands): As of March 31, 2024 Amortized Unrealized Unrealized Allowance for Credit Losses Fair Foreign government obligations $ 64,127 $ — $ 14,223 $ 10 $ 49,894 Supranational debt 17,634 — 2,524 — 15,110 U.S. debt 146,030 — 35,176 28 110,826 U.S. government obligations 24,437 — 5,780 5 18,652 Total $ 252,228 $ — $ 57,703 $ 43 $ 194,482 As of December 31, 2023 Amortized Unrealized Unrealized Allowance for Credit Losses Fair Foreign government obligations $ 65,202 $ — $ 13,963 $ 10 $ 51,229 Supranational debt 17,688 — 2,349 — 15,339 U.S. debt 146,484 — 33,129 29 113,326 U.S. government obligations 24,460 — 6,039 5 18,416 Total $ 253,834 $ — $ 55,480 $ 44 $ 198,310 |
4. Consolidated Balance Sheet_2
4. Consolidated Balance Sheet Details (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts Receivable Trade, Net | Accounts receivable trade, net consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Accounts receivable trade, gross $ 671,648 $ 662,390 Allowance for credit losses (1,903) (1,614) Accounts receivable trade, net $ 669,745 $ 660,776 |
Schedule of Inventories, Current and Noncurrent | Inventories consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Raw materials $ 454,929 $ 478,138 Work in process 91,051 78,463 Finished goods 689,925 530,197 Inventories $ 1,235,905 $ 1,086,798 Inventories – current $ 970,871 $ 819,899 Inventories – noncurrent $ 265,034 $ 266,899 |
Schedule of Other Current Assets | Other current assets consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Spare maintenance materials and parts $ 157,756 $ 148,218 Indirect tax receivables 85,421 65,301 Prepaid expenses 63,541 62,480 Operating supplies 46,587 43,995 Insurance receivable for accrued litigation (1) 21,800 21,800 Restricted cash 8,252 8,262 Prepaid income taxes 6,267 7,064 Derivative instruments (2) 3,490 1,778 Other 32,805 33,002 Other current assets $ 425,919 $ 391,900 —————————— (1) See Note 10. “Commitments and Contingencies” to our condensed consolidated financial statements for discussion of our legal proceedings. (2) See Note 6. “Derivative Financial Instruments” to our condensed consolidated financial statements for discussion of our derivative instruments. |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Land $ 38,799 $ 35,364 Buildings and improvements 1,042,307 1,037,421 Machinery and equipment 3,651,426 3,593,347 Office equipment and furniture 170,156 161,187 Leasehold improvements 40,322 40,084 Construction in progress 1,748,622 1,223,998 Property, plant and equipment, gross 6,691,632 6,091,401 Accumulated depreciation (1,775,946) (1,694,116) Property, plant and equipment, net $ 4,915,686 $ 4,397,285 |
Schedule of Other Assets | Other assets consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Advance payments for raw materials $ 259,373 $ 204,370 Lease assets (1) 99,114 101,468 Income tax receivables 68,591 68,591 Project assets 26,551 28,430 Prepaid expenses 23,917 23,954 Restricted cash equivalents 8,957 6,192 Restricted cash 3,633 3,621 Other (2) 45,615 41,978 Other assets $ 535,751 $ 478,604 —————————— (1) See Note 7. “Leases” to our condensed consolidated financial statements for discussion of our lease arrangements. (2) In November 2023, First Solar entered into a power purchase agreement with Cleantech Solar (“Cleantech”), a leading provider of renewable energy solutions in India and Southeast Asia. Under the agreement, Cleantech plans to construct certain photovoltaic (“PV”) solar and wind generating assets, which are expected to supply electricity to our manufacturing facility in India. In February 2024, we purchased an ownership interest in a subsidiary of Cleantech for $3.0 million. This subsidiary owns certain of the generation assets that are expected to supply our facility, and we account for our investment in the subsidiary under the equity method of accounting. During the three months ended March 31, 2024, we received advance payments of $21.4 million from this subsidiary for future module sales and recognized $6.1 million of revenue therefrom on module sales of 24 megawatts. |
Schedule of Accrued Expenses | Accrued expenses consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Accrued property, plant and equipment $ 308,432 $ 210,233 Accrued freight 64,703 58,494 Accrued inventory 32,243 101,161 Accrued other taxes 31,868 26,781 Accrued compensation and benefits 19,935 55,960 Product warranty liability (1) 5,900 5,920 Accrued interest 4,312 11,011 Other 60,667 55,269 Accrued expenses $ 528,060 $ 524,829 —————————— (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 March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Accrued litigation (1) $ 21,800 $ 21,800 Lease liabilities (2) 10,523 10,358 Contingent consideration (3) 7,500 7,500 Derivative instruments (4) 1,600 1,744 Other 4,355 798 Other current liabilities $ 45,778 $ 42,200 —————————— (1) See Note 10. “Commitments and Contingencies” to our condensed consolidated financial statements for discussion of our legal proceedings. (2) See Note 7. “Leases” to our condensed consolidated financial statements for discussion of our lease arrangements. (3) See Note 10. “Commitments and Contingencies” to our condensed consolidated financial statements for discussion of our contingent consideration arrangements. (4) See Note 6. “Derivative Financial Instruments” to our condensed consolidated financial statements for discussion of our derivative instruments. |
Schedule of Other Liabilities | Other liabilities consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, Lease liabilities (1) $ 51,400 $ 53,725 Deferred tax liabilities, net 41,288 42,771 Other taxes payable 34,775 39,431 Product warranty liability (2) 19,294 19,571 Contingent consideration (3) 11,000 11,000 Other 13,242 14,212 Other liabilities $ 170,999 $ 180,710 —————————— (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.” (3) See Note 10. “Commitments and Contingencies” to our condensed consolidated financial statements for discussion of our contingent consideration arrangements. |
5. Government Grants (Tables)
5. Government Grants (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Government Assistance [Abstract] | |
Schedule of Benefits Recognized From Asset-Based Government Grants | The following table presents the benefits recognized from asset-based government grants in our condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023 (in thousands): Balance Sheet Line Item March 31, December 31, Property, plant and equipment, net $ 148,906 $ 146,348 Other assets 5,848 5,860 |
Schedule of Benefits Recognized From Income-Based Government Grants | The following table presents the benefits recognized from income-based government grants in our condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended Income Statement Line Item 2024 2023 Cost of sales $ 194,427 $ 70,114 Research and development 4,000 — |
6. Derivative Financial Instr_2
6. Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following tables present the fair values of derivative instruments included in our condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 Other Current Assets Other Current Liabilities Derivatives designated as hedging instruments: Commodity swap contracts $ 223 $ — Total derivatives designated as hedging instruments $ 223 $ — Derivatives not designated as hedging instruments: Foreign exchange forward contracts $ 3,267 $ 1,600 Total derivatives not designated as hedging instruments $ 3,267 $ 1,600 Total derivative instruments $ 3,490 $ 1,600 December 31, 2023 Other Current Assets Other Current Liabilities Derivatives designated as hedging instruments: Commodity swap contracts $ — $ 344 Total derivatives designated as hedging instruments $ — $ 344 Derivatives not designated as hedging instruments: Foreign exchange forward contracts $ 1,778 $ 1,400 Total derivatives not designated as hedging instruments $ 1,778 $ 1,400 Total derivative instruments $ 1,778 $ 1,744 |
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 three months ended March 31, 2024 and 2023 (in thousands): Commodity Swap Contracts Balance as of December 31, 2023 $ (1,493) Amounts recognized in other comprehensive income (loss) 221 Amount reclassified to cost of sales 1,149 Balance as of March 31, 2024 $ (123) Balance as of December 31, 2022 $ (7,242) Amounts recognized in other comprehensive income (loss) 254 Amount reclassified to cost of sales 2,668 Balance as of March 31, 2023 $ (4,320) |
Derivative Instruments, Gain (Loss) [Table Text Block] | The following table presents the effect of derivative instruments not designated as hedges on our condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 (in thousands): Amount of Loss Recognized in Income Three Months Ended Income Statement Line Item 2024 2023 Foreign exchange forward contracts Foreign currency loss, net $ (8,949) $ (4,683) |
Schedule of Notional Value of Foreign Exchange Forward Derivatives [Table Text Block] | As of March 31, 2024 and December 31, 2023, 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): March 31, 2024 Transaction Currency Notional Amount USD Equivalent Sell Canadian dollar CAD 4.2 $3.1 Purchase Euro €162.7 $175.5 Sell Euro €26.8 $28.9 Sell Indian rupee INR 67,848.1 $814.0 Purchase Japanese yen ¥1,340.0 $8.9 Sell Japanese yen ¥1,272.6 $8.4 Purchase Malaysian ringgit MYR 219.0 $46.3 Sell Malaysian ringgit MYR 62.5 $13.2 Sell Mexican peso MXN 34.6 $2.1 Purchase Singapore dollar SGD 25.8 $19.1 December 31, 2023 Transaction Currency Notional Amount USD Equivalent Sell Canadian dollar CAD 4.2 $3.2 Sell Chilean peso CLP 1,372.6 $1.6 Purchase Euro €98.3 $108.7 Sell Euro €14.1 $15.6 Sell Indian rupee INR 62,967.4 $756.9 Purchase Japanese yen ¥1,053.6 $7.5 Sell Japanese yen ¥705.2 $5.0 Purchase Malaysian ringgit MYR 160.7 $35.0 Sell Mexican peso MXN 34.6 $2.0 Purchase Singapore dollar SGD 6.5 $4.9 |
7. Leases (Tables)
7. Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of lease cost and related information | The following table presents certain quantitative information related to our lease arrangements for the three months ended March 31, 2024 and 2023, and as of March 31, 2024 and December 31, 2023 (in thousands): Three Months Ended 2024 2023 Finance lease cost: Amortization of right-of-use assets $ 116 $ — Interest on lease liabilities 230 — Operating lease cost 3,221 2,937 Variable lease cost 709 895 Short-term lease cost 184 70 Total lease cost $ 4,460 $ 3,902 Payments of amounts included in the measurement of: Operating lease liabilities $ 3,001 $ 2,753 Finance lease liabilities 46 — Lease assets obtained in exchange for operating lease liabilities 506 251 March 31, 2024 December 31, 2023 Operating Leases Finance Operating Leases Finance Lease assets $ 82,181 $ 16,933 $ 84,419 $ 17,049 Lease liabilities – current 10,287 236 10,307 51 Lease liabilities – noncurrent 34,337 17,063 36,662 17,063 Weighted-average remaining lease term 5 years 40 years 5 years 40 years Weighted-average discount rate 5.2 % 5.4 % 5.2 % 5.4 % |
Operating lease liability maturity | As of March 31, 2024, the future payments associated with our lease liabilities were as follows (in thousands): Operating Leases Finance Leases Remainder of 2024 $ 9,075 $ 113 2025 11,525 196 2026 9,857 1,014 2027 7,324 1,014 2028 6,957 1,016 2029 5,294 1,064 Thereafter 13 42,201 Total future payments 50,045 46,618 Less: interest (5,421) (29,319) Total lease liabilities $ 44,624 $ 17,299 |
Finance lease liabilities maturity | As of March 31, 2024, the future payments associated with our lease liabilities were as follows (in thousands): Operating Leases Finance Leases Remainder of 2024 $ 9,075 $ 113 2025 11,525 196 2026 9,857 1,014 2027 7,324 1,014 2028 6,957 1,016 2029 5,294 1,064 Thereafter 13 42,201 Total future payments 50,045 46,618 Less: interest (5,421) (29,319) Total lease liabilities $ 44,624 $ 17,299 |
8. Fair Value Measurements (Tab
8. Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair value of assets and liabilities measured on a recurring basis | At March 31, 2024 and December 31, 2023, the fair value measurements of our assets and liabilities measured on a recurring basis were as follows (in thousands): Fair Value Measurements at Reporting March 31, Quoted Prices Significant Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 701,431 $ 701,431 $ — $ — Restricted cash equivalents: Money market funds 8,957 8,957 — — Marketable securities: Foreign debt 34,965 — 34,965 — U.S. debt 44,203 — 44,203 — Time deposits 228,848 228,848 — — Restricted marketable securities 194,482 — 194,482 — Derivative assets 3,490 — 3,490 — Total assets $ 1,216,376 $ 939,236 $ 277,140 $ — Liabilities: Derivative liabilities $ 1,600 $ — $ 1,600 $ — Fair Value Measurements at Reporting December 31, Quoted Prices Significant Significant Unobservable Inputs (Level 3) Assets: Cash equivalents: Money market funds $ 1,105,684 $ 1,105,684 $ — $ — Restricted cash equivalents: Money market funds 6,192 6,192 — — Marketable securities: Foreign debt 34,895 — 34,895 — U.S. debt 44,089 — 44,089 — Time deposits 76,511 76,511 — — Restricted marketable securities 198,310 — 198,310 — Derivative assets 1,778 — 1,778 — Total assets $ 1,467,459 $ 1,188,387 $ 279,072 $ — Liabilities: Derivative liabilities $ 1,744 $ — $ 1,744 $ — |
Carrying value and fair value of financial instruments not measured at fair value | At March 31, 2024 and December 31, 2023, the carrying values and fair values of our financial instruments not measured at fair value were as follows (in thousands): March 31, 2024 December 31, 2023 Carrying Fair Carrying Fair Assets: Government grants receivable - noncurrent $ 347,845 $ 310,688 $ 152,208 $ 107,111 Liabilities: Long-term debt (1) $ 500,000 $ 456,132 $ 500,000 $ 453,015 —————————— (1) Excludes unamortized issuance costs and debt arrangements with an original maturity of less than one year. |
9. Debt (Tables)
9. Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Instruments [Abstract] | |
Schedule of Debt Arrangements | Our debt arrangements consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): Balance (USD) Loan Agreement Currency March 31, December 31, Revolving Credit Facility USD $ — $ — India Credit Facility USD 500,000 500,000 India JPM Working Capital Facility INR 60,705 60,827 India HSBC Working Capital Facility INR 59,385 — Total debt principal 620,090 560,827 Less: unamortized issuance costs (488) (521) Total debt 619,602 560,306 Less: current portion (200,907) (96,238) Noncurrent portion $ 418,695 $ 464,068 |
Schedule of Borrowing Rate on Debt | As of March 31, 2024, the borrowing rates for our debt arrangements were as follows: Loan Agreement Interest Rate Description Interest Rate India Credit Facility U.S. Treasury Constant Maturity Yield plus 1.75% 5.57% India JPM Working Capital Facility (1) India Treasury bill rate plus 2% 9.08% India HSBC Working Capital Facility (1) India Treasury bill rate plus 1.5% to 1.6% 8.44% |
Schedule of Maturities of Debt Arrangements | At March 31, 2024, the future principal payments on our debt arrangements were due as follows (in thousands): Total Debt Remainder of 2024 $ 155,540 2025 90,900 2026 90,900 2027 90,950 2028 91,000 2029 100,800 Thereafter — Total debt future principal payments $ 620,090 |
10. Commitments and Contingen_2
10. Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | As of March 31, 2024, the issued and outstanding amounts and available capacities under these commitments were as follows (in millions): Issued and Outstanding Available Capacity Revolving Credit Facility (1) $ — $ 250.0 Bilateral facilities (2) 188.3 116.7 Surety bonds 28.6 225.0 —————————— (1) Our Revolving Credit Facility provides us with a sub-limit of $250.0 million to issue letters of credit, at a fee based on the applicable margin for Term SOFR loans, a fronting fee, and other customary letter of credit fees. (2) Of the total letters of credit issued under the bilateral facilities, $9.2 million was secured with cash. |
Schedule of Product Warranty Liability | Product warranty activities during the three months ended March 31, 2024 and 2023 were as follows (in thousands): Three Months Ended 2024 2023 Product warranty liability, beginning of period $ 25,491 $ 33,787 Accruals for new warranties issued 1,397 994 Settlements (2,192) (1,326) Changes in estimate of product warranty liability 498 (140) Product warranty liability, end of period $ 25,194 $ 33,315 Current portion of warranty liability $ 5,900 $ 10,236 Noncurrent portion of warranty liability $ 19,294 $ 23,079 |
11. Revenue from Contracts wi_2
11. Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Changes in Contract Liabilities [Table Text Block] | The following table reflects the changes in our contract liabilities, which we classify as “Deferred revenue,” for the three months ended March 31, 2024 (in thousands): March 31, December 31, Three Month Change Deferred revenue $ 2,068,082 $ 2,005,183 $ 62,899 3 % |
12. Share-Based Compensation (T
12. Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement, Recognized Amount [Abstract] | |
Schedule of Share-Based Compensation Expense Recognized in the Condensed Consolidated Statements of Operations | The following table presents share-based compensation expense recognized in our condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended 2024 2023 Cost of sales $ 1,027 $ 926 Selling, general and administrative 4,869 4,782 Research and development 920 877 Production start-up (25) 15 Total share-based compensation expense $ 6,791 $ 6,600 |
14. Net Income per Share (Table
14. Net Income per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income per Share, Basic and Diluted | The calculation of basic and diluted net income per share for the three months ended March 31, 2024 and 2023 was as follows (in thousands, except per share amounts): Three Months Ended 2024 2023 Basic net income per share Numerator: Net income $ 236,616 $ 42,561 Denominator: Weighted-average common shares outstanding 106,910 106,675 Diluted net income per share Denominator: Weighted-average common shares outstanding 106,910 106,675 Effect of restricted stock and performance units 497 479 Weighted-average shares used in computing diluted net income per share 107,407 107,154 Net income per share: Basic $ 2.21 $ 0.40 Diluted $ 2.20 $ 0.40 |
Schedule of Antidilutive Securities Excluded from Computation of Net Income per Share | The following table summarizes the potential shares of common stock that were excluded from the computation of diluted net income per share for the three months ended March 31, 2024 and 2023 as such shares would have had an anti-dilutive effect (in thousands): Three Months Ended 2024 2023 Anti-dilutive shares 17 11 |
15. Accumulated Other Compreh_2
15. Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss, net of tax | The following table presents the changes in accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2024 (in thousands): Foreign Currency Translation Adjustment Unrealized (Loss) Gain on Marketable Securities and Restricted Marketable Securities Unrealized (Loss) Gain on Derivative Instruments Total Balance as of December 31, 2023 $ (118,366) $ (54,610) $ (1,155) $ (174,131) Other comprehensive (loss) income before reclassifications (8,533) (2,105) 221 (10,417) Amounts reclassified from accumulated other comprehensive loss — — 1,149 1,149 Net tax effect — 102 (308) (206) Net other comprehensive (loss) income (8,533) (2,003) 1,062 (9,474) Balance as of March 31, 2024 $ (126,899) $ (56,613) $ (93) $ (183,605) |
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 months ended March 31, 2024 and 2023 (in thousands): Comprehensive Income Components Income Statement Line Item Three Months Ended 2024 2023 Foreign currency translation adjustment: Foreign currency translation adjustment Cost of sales $ — $ 146 Foreign currency translation adjustment Other expense, net — (10) Total foreign currency translation adjustment — 136 Unrealized loss on derivative contracts: Commodity swap contracts Cost of sales (1,149) (2,668) Total loss reclassified $ (1,149) $ (2,532) |
16. Segment Reporting (Tables)
16. Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting Information, Profit (Loss) [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables provide a reconciliation of certain financial information for our reportable segment to information presented in our condensed consolidated financial statements for the three months ended March 31, 2024 and 2023 and as of March 31, 2024 and December 31, 2023 (in thousands): Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Modules Other Total Modules Other Total Net sales $ 793,434 $ 674 $ 794,108 $ 536,590 $ 11,696 $ 548,286 Gross profit (loss) 346,168 (165) 346,003 106,894 5,157 112,051 Depreciation and amortization expense 81,062 3 81,065 61,583 2 61,585 March 31, 2024 December 31, 2023 Modules Other Total Modules Other Total Goodwill $ 28,735 $ — $ 28,735 $ 29,687 $ — $ 29,687 |
2. Cash, Cash Equivalents, an_2
2. Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||||
Cash and cash equivalents | $ 1,682,081 | $ 1,946,994 | ||
Marketable securities | 308,016 | 155,495 | ||
Total cash, cash equivalents, and marketable securities | 1,990,097 | 2,102,489 | ||
Restricted cash - current | 8,252 | 8,262 | ||
Restricted cash - noncurrent | 3,633 | 3,621 | ||
Restricted cash equivalents - noncurrent | 8,957 | 6,192 | ||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | 1,702,923 | 1,965,069 | $ 922,818 | $ 1,493,462 |
Foreign debt [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Marketable securities | 34,965 | 34,895 | ||
U.S. debt [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Marketable securities | 44,203 | 44,089 | ||
Time deposits [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Marketable securities | 228,848 | 76,511 | ||
Cash [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cash and cash equivalents | 980,650 | 841,310 | ||
Money market funds [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cash and cash equivalents | $ 701,431 | $ 1,105,684 |
2. Cash, Cash Equivalents, an_3
2. Cash, Cash Equivalents, and Marketable Securities (Details) - Available For Sale - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 309,606 | $ 157,158 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 123 | 88 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 1,621 | 1,705 |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | 92 | 46 |
Marketable securities | 308,016 | 155,495 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Rolling Maturity, Fair Value [Abstract] | ||
Debt Securities, Available-for-sale, Maturity, Rolling within One Year | 299,587 | |
Debt securities, Available-for-sale, Debt Maturities, Rolling Year One Through Two | 4,569 | |
Debt securities, Available-for-sale, Debt Maturities, Rolling Year Two Through Three | 0 | |
Debt Securities, Available-for-sale, Maturities, Rolling Year Three Through Four | 0 | |
Debt Securities, Available-for-sale, Maturities, Rolling Year Four Through Five | 0 | |
Debt Securities, Available-for-sale, Maturities, Rolling Year More Than Five | 3,860 | |
Foreign debt [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 35,000 | 35,000 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 20 | 91 |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | 15 | 14 |
Marketable securities | 34,965 | 34,895 |
U.S. debt [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 45,689 | 45,625 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 123 | 88 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 1,601 | 1,614 |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | 8 | 10 |
Marketable securities | 44,203 | 44,089 |
Time deposits [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 228,917 | 76,533 |
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 |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | 69 | 22 |
Marketable securities | $ 228,848 | $ 76,511 |
3. Restricted Marketable Secu_3
3. Restricted Marketable Securities (Details) - Restricted Marketable Securities - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Securities, Available-for-sale [Line Items] | ||
Restricted marketable securities | $ 194,482 | $ 198,310 |
Product minimum service life | 25 years | |
Restricted Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Restricted marketable securities | $ 194,482 | 198,310 |
Cash Held In Trust [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Restricted cash and cash equivalents - noncurrent | 9,000 | 6,200 |
Foreign government obligations [Member] | Restricted Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Restricted marketable securities | 49,894 | 51,229 |
Supranational debt [Member] | Restricted Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Restricted marketable securities | 15,110 | 15,339 |
U.S. debt [Member] | Restricted Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Restricted marketable securities | 110,826 | 113,326 |
U.S. government obligations [Member] | Restricted Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Restricted marketable securities | $ 18,652 | $ 18,416 |
3. Restricted Marketable Secu_4
3. Restricted Marketable Securities (Details) - Available for sale - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 309,606 | $ 157,158 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 123 | 88 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 1,621 | 1,705 |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | 92 | 46 |
Restricted marketable securities | 194,482 | 198,310 |
Restricted Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 252,228 | 253,834 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 57,703 | 55,480 |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | 43 | 44 |
Restricted marketable securities | $ 194,482 | 198,310 |
Minimum [Member] | Restricted Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual maturities of Debt securities, Available-for-sale, range start (in years) | 7 years | |
Maximum [Member] | Restricted Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturities Of Debt securities, Available-for-sale, Range End (In Years) | 15 years | |
Foreign government obligations [Member] | Restricted Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 64,127 | 65,202 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 14,223 | 13,963 |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | 10 | 10 |
Restricted marketable securities | 49,894 | 51,229 |
Supranational debt [Member] | Restricted Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 17,634 | 17,688 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 2,524 | 2,349 |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | 0 | 0 |
Restricted marketable securities | 15,110 | 15,339 |
U.S. debt [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 45,689 | 45,625 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 123 | 88 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 1,601 | 1,614 |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | 8 | 10 |
U.S. debt [Member] | Restricted Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 146,030 | 146,484 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 35,176 | 33,129 |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | 28 | 29 |
Restricted marketable securities | 110,826 | 113,326 |
U.S. government obligations [Member] | Restricted Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 24,437 | 24,460 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 5,780 | 6,039 |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | 5 | 5 |
Restricted marketable securities | $ 18,652 | $ 18,416 |
4. Consolidated Balance Sheet_3
4. Consolidated Balance Sheet Details (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Accounts receivable trade | |||
Accounts receivable trade, gross | $ 671,648 | $ 662,390 | |
Allowance for credit losses | (1,903) | (1,614) | |
Accounts receivable trade, net | 669,745 | 660,776 | |
Inventories | |||
Raw materials | 454,929 | 478,138 | |
Work in process | 91,051 | 78,463 | |
Finished goods | 689,925 | 530,197 | |
Inventories | 1,235,905 | 1,086,798 | |
Inventories - current | 970,871 | 819,899 | |
Inventories - noncurrent | 265,034 | 266,899 | |
Other current assets | |||
Spare maintenance materials and parts | 157,756 | 148,218 | |
Indirect tax receivables, current | 85,421 | 65,301 | |
Prepaid expenses | 63,541 | 62,480 | |
Operating supplies | 46,587 | 43,995 | |
Insurance receivable for accrued litigation | 21,800 | 21,800 | |
Restricted cash | 8,252 | 8,262 | |
Prepaid income taxes | 6,267 | 7,064 | |
Derivative instruments | 3,490 | 1,778 | |
Other | 32,805 | 33,002 | |
Other current assets | 425,919 | 391,900 | |
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 6,691,632 | 6,091,401 | |
Accumulated depreciation | (1,775,946) | (1,694,116) | |
Property, plant and equipment, net | 4,915,686 | 4,397,285 | |
Other assets | |||
Advance payments for raw materials | 259,373 | 204,370 | |
Lease assets | 99,114 | 101,468 | |
Income tax receivables | 68,591 | 68,591 | |
Project assets | 26,551 | 28,430 | |
Prepaid expense | 23,917 | 23,954 | |
Restricted cash equivalents - noncurrent | 8,957 | 6,192 | |
Restricted cash - noncurrent | 3,633 | 3,621 | |
Other | 45,615 | 41,978 | |
Other assets | 535,751 | 478,604 | |
Net sales | 794,108 | $ 548,286 | |
Accrued expenses | |||
Accrued property, plant and equipment | 308,432 | 210,233 | |
Accrued freight | 64,703 | 58,494 | |
Accrued inventory | 32,243 | 101,161 | |
Accrued other taxes | 31,868 | 26,781 | |
Accrued compensation and benefits | 19,935 | 55,960 | |
Product warranty liability, current | 5,900 | 5,920 | |
Accrued interest | 4,312 | 11,011 | |
Other | 60,667 | 55,269 | |
Accrued expenses | 528,060 | 524,829 | |
Other current liabilities | |||
Accrued litigation | 21,800 | 21,800 | |
Lease liabilities, current | 10,523 | 10,358 | |
Contingent consideration, current | 7,500 | 7,500 | |
Derivative instruments | 1,600 | 1,744 | |
Other | 4,355 | 798 | |
Other current liabilities | 45,778 | 42,200 | |
Other liabilities | |||
Lease liabilities, noncurrent | 51,400 | 53,725 | |
Deferred tax liabilities, net | 41,288 | 42,771 | |
Other taxes payable | 34,775 | 39,431 | |
Product warranty liability, noncurrent | 19,294 | 19,571 | |
Contingent consideration, noncurrent | 11,000 | 11,000 | |
Other | 13,242 | 14,212 | |
Other liabilities | 170,999 | 180,710 | |
Cleantech Solar | |||
Other assets | |||
Payment to acquire equity method investments | 3,000 | ||
Advance payments received | 21,400 | ||
Net sales | 6,100 | ||
Property, Plant and Equipment [Member] | |||
Property, plant and equipment, net | |||
Depreciation | 86,700 | $ 65,900 | |
Land [Member] | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 38,799 | 35,364 | |
Buildings and improvements [Member] | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 1,042,307 | 1,037,421 | |
Machinery and equipment [Member] | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 3,651,426 | 3,593,347 | |
Office equipment and furniture [Member] | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 170,156 | 161,187 | |
Leasehold improvements [Member] | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | 40,322 | 40,084 | |
Construction in progress [Member] | |||
Property, plant and equipment, net | |||
Property, plant and equipment, gross | $ 1,748,622 | $ 1,223,998 |
5. Government Grants (Details)
5. Government Grants (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2024 | Dec. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Government Assistance [Line Items] | ||||
Government Assistance, Gross Amount Prior To Transfer | $ 687,200 | |||
Aggregate Transaction Price for Sale of Section 45X Tax Credits | 659,700 | |||
Cash Proceeds Received from Sale of Section 45X tax credits | $ 179,700 | $ 480,000 | ||
Cost of sales [Member] | ||||
Government Assistance [Line Items] | ||||
Government Assistance, Amount, Consolidated Statement of Operations | $ 194,427 | $ 70,114 | ||
Government Assistance, Consolidated Statement of Operations [Extensible Enumeration] | Cost of sales | Cost of sales | ||
Research and development | ||||
Government Assistance [Line Items] | ||||
Government Assistance, Amount, Consolidated Statement of Operations | $ 4,000 | $ 0 | ||
Government Assistance, Consolidated Statement of Operations [Extensible Enumeration] | Research and development | Research and development | ||
Property, Plant and Equipment [Member] | ||||
Government Assistance [Line Items] | ||||
Government Assistance, Amount, Noncurrent, Consolidated Balance Sheet | $ 146,348 | $ 148,906 | ||
Government Assistance, Noncurrent, Consolidated Balance Sheet [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net | ||
Other Assets [Member] | ||||
Government Assistance [Line Items] | ||||
Government Assistance, Amount, Noncurrent, Consolidated Balance Sheet | $ 5,860 | $ 5,848 | ||
Government Assistance, Noncurrent, Consolidated Balance Sheet [Extensible Enumeration] | Other assets | Other assets |
6. Derivative Financial Instr_3
6. Derivative Financial Instruments (Details) - Summary - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 3,490 | $ 1,778 |
Other Current Assets | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 223 | 0 |
Other Current Assets | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 3,267 | 1,778 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (1,600) | (1,744) |
Other Current Liabilities | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 344 |
Other Current Liabilities | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 1,600 | 1,400 |
Commodity swap contracts | Other Current Assets | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 223 | 0 |
Commodity swap contracts | Other Current Liabilities | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 344 |
Foreign exchange forward contracts | Other Current Assets | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 3,267 | 1,778 |
Foreign exchange forward contracts | Other Current Liabilities | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 1,600 | $ 1,400 |
6. Derivative Financial Instr_4
6. Derivative Financial Instruments (Details) - Hedging Relationship - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Commodity swap contracts | Designated as Hedging Instrument [Member] | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Balance in accumulated other comprehensive income (loss) | $ (123) | $ (4,320) | $ (1,493) | $ (7,242) |
Amounts recognized in other comprehensive income (loss) | 221 | 254 | ||
Derivative instruments, gain (loss) reclassified from accumulated OCI into income, effective portion, net | $ 1,149 | $ 2,668 | ||
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of sales | Cost of sales | ||
Foreign exchange forward contracts | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (8,949) | $ (4,683) | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Foreign currency loss, net | Foreign currency loss, net |
6. Derivative Financial Instr_5
6. Derivative Financial Instruments (Details) - Risk Management - Commodity swap contracts - Cash Flow Hedging - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Jan. 31, 2024 | Jul. 31, 2022 | |
Derivatives, Fair Value [Line Items] | |||
Derivative, notional amount | $ 5.9 | $ 7.6 | $ 70.5 |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 0.1 |
6. Derivative Financial Instr_6
6. Derivative Financial Instruments (Details) - Transaction Exposure - Foreign exchange forward contracts - Not Designated as Hedging Instrument [Member] € in Millions, ₨ in Millions, ¥ in Millions, RM in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Mar. 31, 2024 CAD ($) | Dec. 31, 2023 CAD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2024 EUR (€) | Mar. 31, 2024 INR (₨) | Mar. 31, 2024 JPY (¥) | Mar. 31, 2024 MYR (RM) | Mar. 31, 2024 MXN ($) | Mar. 31, 2024 SGD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 INR (₨) | Dec. 31, 2023 JPY (¥) | Dec. 31, 2023 MYR (RM) | Dec. 31, 2023 MXN ($) | Dec. 31, 2023 SGD ($) | Dec. 31, 2023 CLP ($) | |
Canada, Dollars | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Derivative, Currency Sold | Canadian dollar | Canadian dollar | |||||||||||||||
Chile, Pesos | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Derivative, Currency Sold | 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 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 | ||||||||||||||||
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] | Euro Member Countries, Euro | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Derivative, notional amount | $ 175.5 | € 162.7 | $ 108.7 | € 98.3 | |||||||||||||
Long [Member] | Japan, Yen | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Derivative, notional amount | 8.9 | ¥ 1,340 | 7.5 | ¥ 1,053.6 | |||||||||||||
Long [Member] | Malaysia, Ringgits | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Derivative, notional amount | 46.3 | RM 219 | 35 | RM 160.7 | |||||||||||||
Long [Member] | Singapore, Dollars | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Derivative, notional amount | 19.1 | $ 25.8 | 4.9 | $ 6.5 | |||||||||||||
Short [Member] | Canada, Dollars | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Derivative, notional amount | $ 4.2 | $ 4.2 | 3.1 | 3.2 | |||||||||||||
Short [Member] | Chile, Pesos | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Derivative, notional amount | 1.6 | $ 1,372.6 | |||||||||||||||
Short [Member] | Euro Member Countries, Euro | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Derivative, notional amount | 28.9 | € 26.8 | 15.6 | € 14.1 | |||||||||||||
Short [Member] | India, Rupees | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Derivative, notional amount | 814 | ₨ 67,848.1 | 756.9 | ₨ 62,967.4 | |||||||||||||
Short [Member] | Japan, Yen | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Derivative, notional amount | 8.4 | ¥ 1,272.6 | 5 | ¥ 705.2 | |||||||||||||
Short [Member] | Malaysia, Ringgits | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Derivative, notional amount | 13.2 | RM 62.5 | |||||||||||||||
Short [Member] | Mexico, Pesos | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Derivative, notional amount | $ 2.1 | $ 34.6 | $ 2 | $ 34.6 |
7. Leases (Details)
7. Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Leases [Abstract] | |||
Finance lease, amortization of right-of-use assets | $ 116 | $ 0 | |
Finance lease, interest on lease liabilities | 230 | 0 | |
Operating lease cost | 3,221 | 2,937 | |
Variable lease cost | 709 | 895 | |
Short-term lease cost | 184 | 70 | |
Total lease cost | 4,460 | 3,902 | |
Payments of amounts included in the measurement of operating lease liabilities | 3,001 | 2,753 | |
Payments of amounts included in the measurement of finance lease liabilities | 46 | 0 | |
Lease assets obtained in exchange for operating lease liabilities | 506 | $ 251 | |
Operating lease assets | 82,181 | $ 84,419 | |
Operating lease liabilities - current | 10,287 | 10,307 | |
Operating lease liabilities - noncurrent | $ 34,337 | $ 36,662 | |
Operating lease, Weighted-average remaining lease term | 5 years | 5 years | |
Operating lease, Weighted-average discount rate | 5.20% | 5.20% | |
Finance lease assets | $ 16,933 | $ 17,049 | |
Finance lease liabilities - current | 236 | 51 | |
Finance lease liabilities - noncurrent | $ 17,063 | $ 17,063 | |
Finance lease, Weighted-average remaining lease term | 40 years | 40 years | |
Finance lease, Weighted-average discount rate | 5.40% | 5.40% | |
Lessee, Operating Lease, Liability, to be Paid [Abstract] | |||
Operating lease, liability, to be paid, remainder of fiscal year | $ 9,075 | ||
Operating lease, liability, to be paid, year one | 11,525 | ||
Operating lease, liability, to be paid, year two | 9,857 | ||
Operating lease, liability, to be paid, year three | 7,324 | ||
Operating lease, liability, to be paid, year four | 6,957 | ||
Operating lease, liability, to be paid, year five | 5,294 | ||
Operating lease, liability, to be paid, after year five | 13 | ||
Operating lease liabilities, total future payments | 50,045 | ||
Less: interest on operating lease liabilities | (5,421) | ||
Total operating lease liabilities | 44,624 | ||
Finance Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | |||
Finance lease, liability, to be paid, remainder of fiscal year | 113 | ||
Finance lease, liability, to be paid, year one | 196 | ||
Finance lease, liability, to be paid, year two | 1,014 | ||
Finance lease, liability, to be paid, year three | 1,014 | ||
Finance lease, liability, to be paid, year four | 1,016 | ||
Finance lease, liability, to be paid, year five | 1,064 | ||
Finance lease, liability, to be paid, after year five | 42,201 | ||
Finance lease liabilities, total future payments | 46,618 | ||
Less: interest on finance lease liabilities | (29,319) | ||
Total finance lease liabilities | $ 17,299 | ||
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
8. Fair Value Measurements (Det
8. Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Marketable securities | $ 308,016 | $ 155,495 |
Restricted marketable securities | 194,482 | 198,310 |
Foreign debt [Member] | ||
Assets: | ||
Marketable securities | 34,965 | 34,895 |
U.S. debt [Member] | ||
Assets: | ||
Marketable securities | 44,203 | 44,089 |
Time deposits [Member] | ||
Assets: | ||
Marketable securities | 228,848 | 76,511 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Cash equivalents, Money market funds | 701,431 | 1,105,684 |
Restricted cash equivalents, Money market funds | 8,957 | 6,192 |
Restricted marketable securities | 194,482 | 198,310 |
Derivative assets | 3,490 | 1,778 |
Total assets | 1,216,376 | 1,467,459 |
Liabilities: | ||
Derivative liabilities | 1,600 | 1,744 |
Fair Value, Measurements, Recurring [Member] | Foreign debt [Member] | ||
Assets: | ||
Marketable securities | 34,965 | 34,895 |
Fair Value, Measurements, Recurring [Member] | U.S. debt [Member] | ||
Assets: | ||
Marketable securities | 44,203 | 44,089 |
Fair Value, Measurements, Recurring [Member] | Time deposits [Member] | ||
Assets: | ||
Marketable securities | 228,848 | 76,511 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash equivalents, Money market funds | 701,431 | 1,105,684 |
Restricted cash equivalents, Money market funds | 8,957 | 6,192 |
Restricted marketable securities | 0 | 0 |
Derivative assets | 0 | 0 |
Total assets | 939,236 | 1,188,387 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign debt [Member] | ||
Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. debt [Member] | ||
Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Time deposits [Member] | ||
Assets: | ||
Marketable securities | 228,848 | 76,511 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Cash equivalents, Money market funds | 0 | 0 |
Restricted cash equivalents, Money market funds | 0 | 0 |
Restricted marketable securities | 194,482 | 198,310 |
Derivative assets | 3,490 | 1,778 |
Total assets | 277,140 | 279,072 |
Liabilities: | ||
Derivative liabilities | 1,600 | 1,744 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign debt [Member] | ||
Assets: | ||
Marketable securities | 34,965 | 34,895 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. debt [Member] | ||
Assets: | ||
Marketable securities | 44,203 | 44,089 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Time deposits [Member] | ||
Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Cash equivalents, Money market funds | 0 | 0 |
Restricted cash equivalents, Money market funds | 0 | 0 |
Restricted marketable securities | 0 | 0 |
Derivative assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign debt [Member] | ||
Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. debt [Member] | ||
Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Time deposits [Member] | ||
Assets: | ||
Marketable securities | $ 0 | $ 0 |
8. Fair Value Measurements (D_2
8. Fair Value Measurements (Details) - Balance Sheet Grouping - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Government grants receivable | $ 347,845 | $ 152,208 |
Carrying Value Measurement [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Government grants receivable | 347,845 | 152,208 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt | 500,000 | 500,000 |
Estimate of Fair Value Measurement [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Government grants receivable | 310,688 | 107,111 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt | $ 456,132 | $ 453,015 |
9. Debt (Details)
9. Debt (Details) $ in Thousands, ₨ in Billions | 1 Months Ended | 3 Months Ended | |||||
Jun. 30, 2023 USD ($) | Mar. 31, 2024 USD ($) | Feb. 29, 2024 USD ($) | Feb. 29, 2024 INR (₨) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 INR (₨) | Jul. 27, 2022 USD ($) | |
Debt | |||||||
Total debt principal | $ 620,090 | $ 560,827 | |||||
Less: unamortized issuance costs | (488) | (521) | |||||
Total debt | 619,602 | 560,306 | |||||
Current portion of debt | 200,907 | 96,238 | |||||
Noncurrent portion of debt | $ 418,695 | 464,068 | |||||
Short-term debt, weighted-average interest rate | 8.76% | ||||||
Total Debt, Fiscal Year Maturity | |||||||
Total Debt, Maturity, Remainder of Fiscal Year | $ 155,540 | ||||||
Total Debt, Maturity, Year One | 90,900 | ||||||
Total Debt, Maturity, Year Two | 90,900 | ||||||
Total Debt, Maturity, Year Three | 90,950 | ||||||
Total Debt, Maturity, Year Four | 91,000 | ||||||
Total Debt, Maturity, Year Five | 100,800 | ||||||
Total Debt, Maturity, after Year Five | $ 0 | ||||||
Revolving Credit Facility | |||||||
Debt | |||||||
Debt instrument, currency | USD | ||||||
Revolving credit facility | $ 0 | 0 | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,000,000 | ||||||
Debt Instrument, Description of Variable Rate Basis | Borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to, at our option, (i) the Term Secured Overnight Financing Rate (“Term SOFR”), plus a credit spread of 0.10%, plus a margin that ranges from 1.25% to 2.25% or (ii) an alternate base rate as defined in the credit agreement, plus a margin that ranges from 0.25% to 1.25%. | ||||||
Revolving Credit Facility | Minimum [Member] | |||||||
Debt | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.125% | ||||||
Revolving Credit Facility | Maximum [Member] | |||||||
Debt | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | ||||||
India Credit Facility | |||||||
Debt | |||||||
Debt instrument, currency | USD | ||||||
Long-term debt, gross | $ 500,000 | 500,000 | |||||
India Credit Facility | DFC | |||||||
Debt | |||||||
Debt Instrument, Description of Variable Rate Basis | U.S. Treasury Constant Maturity Yield plus 1.75% | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||
Long-term debt, weighted-average interest rate | 5.57% | ||||||
India Credit Facility | DFC | FS India Solar Ventures Private Limited | |||||||
Debt | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 500,000 | ||||||
India JPM Working Capital Facility | |||||||
Debt | |||||||
Debt instrument, currency | INR | ||||||
Short-term debt | $ 60,705 | 60,827 | |||||
India JPM Working Capital Facility | JPMorgan Chase Bank, N.A. | |||||||
Debt | |||||||
Debt Instrument, Description of Variable Rate Basis | India Treasury bill rate plus 2% | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2% | ||||||
Short-term debt, weighted-average interest rate | 9.08% | ||||||
India JPM Working Capital Facility | JPMorgan Chase Bank, N.A. | FS India Solar Ventures Private Limited | |||||||
Debt | |||||||
Line of Credit Facility, Current Borrowing Capacity | 74,800 | ₨ 6.2 | |||||
India HSBC Working Capital Facility | |||||||
Debt | |||||||
Debt instrument, currency | INR | ||||||
Short-term debt | $ 59,385 | $ 0 | |||||
India HSBC Working Capital Facility | Hong Kong and Shanghai Banking Corporation Limited | |||||||
Debt | |||||||
Debt Instrument, Description of Variable Rate Basis | India Treasury bill rate plus 1.5% to 1.6% | ||||||
Short-term debt, weighted-average interest rate | 8.44% | ||||||
India HSBC Working Capital Facility | Hong Kong and Shanghai Banking Corporation Limited | Minimum [Member] | |||||||
Debt | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||||
India HSBC Working Capital Facility | Hong Kong and Shanghai Banking Corporation Limited | Maximum [Member] | |||||||
Debt | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.60% | ||||||
India HSBC Working Capital Facility | Hong Kong and Shanghai Banking Corporation Limited | FS India Solar Ventures Private Limited | |||||||
Debt | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 98,400 | ₨ 8.2 |
10. Commitments and Contingen_3
10. Commitments and Contingencies (Details) - Commercial Commitments $ in Millions | Mar. 31, 2024 USD ($) |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Letters of Credit Outstanding, Amount | $ 0 |
Letters of Credit, Remaining Borrowing Capacity | 250 |
Line of Credit Facility, Letter of Credit Sub-Limit | 250 |
Bilateral Facilities [Member] | |
Debt Instrument [Line Items] | |
Letters of Credit Outstanding, Amount | 188.3 |
Letters of Credit, Remaining Borrowing Capacity | 116.7 |
Letters of Credit Outstanding, Secured by Cash | 9.2 |
Surety Bond | |
Debt Instrument [Line Items] | |
Surety Bonds Outstanding, Amount | 28.6 |
Surety Bonds, Remaining Borrowing Capacity | $ 225 |
10. Commitments and Contingen_4
10. Commitments and Contingencies (Details) - Product Warranties - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Product warranty liability, beginning of period | $ 25,491 | $ 33,787 |
Accruals for new warranties issued | 1,397 | 994 |
Settlements | (2,192) | (1,326) |
Changes in estimate of product warranty liability | 498 | (140) |
Product warranty liability, end of period | 25,194 | 33,315 |
Current portion of warranty liability | 5,900 | 10,236 |
Noncurrent portion of warranty liability | $ 19,294 | $ 23,079 |
10. Commitments and Contingen_5
10. Commitments and Contingencies (Details) - Indemnifications - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Indemnification liabilities, current | $ 2.5 | $ 3.3 |
Indemnification liabilities, maximum exposure | $ 510.1 |
10. Commitments and Contingen_6
10. Commitments and Contingencies (Details) - Contingent Consideration - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Business Acquisition, Contingent Consideration [Line Items] | ||
Contingent consideration, current | $ 7,500 | $ 7,500 |
Contingent consideration, noncurrent | 11,000 | 11,000 |
Evolar AB | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 42,500 | |
Contingent consideration, current | 7,500 | 7,500 |
Contingent consideration, noncurrent | $ 11,000 | $ 11,000 |
10. Commitments and Contingen_7
10. Commitments and Contingencies (Details) - Solar Module Collection and Recycling Liability - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued solar module collection and recycling liability | $ 134,250 | $ 135,123 |
10. Commitments and Contingen_8
10. Commitments and Contingencies (Details) - Legal Proceedings - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2023 | Mar. 31, 2024 | |
Estimated Litigation Liability [Line Items] | ||||
Accrued litigation | $ 21,800 | $ 21,800 | ||
Insurance receivable for accrued litigation | 21,800 | 21,800 | ||
Southern Power Company Arbitration [Member] | ||||
Estimated Litigation Liability [Line Items] | ||||
Litigation loss | $ 35,600 | |||
Other Matters and Claims - Workplace Injury [Member] | ||||
Estimated Litigation Liability [Line Items] | ||||
Litigation Settlement, Amount Awarded to Other Party | $ 21,800 | $ 51,300 | ||
Accrued litigation | 21,800 | |||
Insurance receivable for accrued litigation | $ 21,800 |
11. Revenue from Contracts wi_3
11. Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue from Contracts with Customers [Line Items] | |||
Deferred revenue | $ 2,068,082 | $ 2,005,183 | |
Contract Liabilities, Net Change | $ 62,899 | ||
Contract Liabilities, Percent Change | 3% | ||
Sales Revenue Net, from Beginning Contract Liability | $ 126,300 | $ 90,400 | |
Solar modules [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Remaining Performance Obligation, Aggregate Transaction Price | $ 23,400,000 |
12. Share-Based Compensation (D
12. Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 6,791 | $ 6,600 |
Restricted Stock and Performance Units | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense, unrecognized, unvested restricted stock and performance units | $ 52,000 | |
Share-based compensation expense, unrecognized, unvested weighted average period of recognition (in years) | 1 year 8 months 12 days | |
Cost of sales [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 1,027 | 926 |
Selling, general and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 4,869 | 4,782 |
Research and development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 920 | 877 |
Production start-up [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ (25) | $ 15 |
13. Income Taxes (Details)
13. Income Taxes (Details) | 1 Months Ended | 3 Months Ended | 48 Months Ended | 108 Months Ended | |
Aug. 31, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2036 | Dec. 31, 2032 | |
Income Tax Disclosure [Abstract] | |||||
Corporate Alternative Minimum Tax, Inflation Reduction Act, Percent | 15% | ||||
Excise Tax on Stock Buybacks, Inflation Reduction Act, Percent | 1% | ||||
Effective income tax rate | 7.40% | (19.30%) | |||
U.S. statutory federal income tax rate | 21% | ||||
Forecast | |||||
Income Tax Holiday [Line Items] | |||||
Vietnam long-term tax incentive tax rate | 10% | 5% |
14. Net Income per Share (Detai
14. Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net income | $ 236,616 | $ 42,561 |
Weighted-average common shares outstanding | 106,910 | 106,675 |
Effect of restricted stock and performance units | 497 | 479 |
Weighted-average shares used in computing diluted net income per share | 107,407 | 107,154 |
Net income per share, basic | $ 2.21 | $ 0.40 |
Net income per share, diluted | $ 2.20 | $ 0.40 |
Anti-dilutive shares | 17 | 11 |
15. Accumulated Other Compreh_3
15. Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stockholders' equity, beginning balance | $ 6,687,469 | $ 5,836,055 |
Amounts reclassified from accumulated other comprehensive loss | 1,149 | 2,532 |
Net other comprehensive (loss) income | (9,474) | 11,835 |
Stockholders' equity, ending balance | 6,902,514 | 5,868,728 |
Cost of sales | 448,105 | 436,235 |
Other expense, net | (2,799) | (1,456) |
Total loss reclassified | (1,149) | (2,532) |
Foreign Currency Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stockholders' equity, beginning balance | (118,366) | |
Other comprehensive (loss) income before reclassifications | (8,533) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | |
Net tax effect | 0 | |
Net other comprehensive (loss) income | (8,533) | |
Stockholders' equity, ending balance | (126,899) | |
Total loss reclassified | 0 | |
Foreign Currency Translation Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Cost of sales | 0 | 146 |
Other expense, net | 0 | (10) |
Total amount reclassified | 0 | 136 |
Unrealized (Loss) Gain on Marketable Securities and Restricted Marketable Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stockholders' equity, beginning balance | (54,610) | |
Other comprehensive (loss) income before reclassifications | (2,105) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | |
Net tax effect | 102 | |
Net other comprehensive (loss) income | (2,003) | |
Stockholders' equity, ending balance | (56,613) | |
Total loss reclassified | 0 | |
Unrealized (Loss) Gain on Derivative Instruments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stockholders' equity, beginning balance | (1,155) | |
Other comprehensive (loss) income before reclassifications | 221 | |
Amounts reclassified from accumulated other comprehensive loss | 1,149 | |
Net tax effect | (308) | |
Net other comprehensive (loss) income | 1,062 | |
Stockholders' equity, ending balance | (93) | |
Total loss reclassified | (1,149) | |
Total, Accumulated Other Comprehensive (Loss) Income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stockholders' equity, beginning balance | (174,131) | (191,817) |
Other comprehensive (loss) income before reclassifications | (10,417) | |
Amounts reclassified from accumulated other comprehensive loss | 1,149 | |
Net tax effect | (206) | |
Net other comprehensive (loss) income | (9,474) | 11,835 |
Stockholders' equity, ending balance | (183,605) | (179,982) |
Total loss reclassified | (1,149) | |
Commodity swap contracts | Unrealized (Loss) Gain on Derivative Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Cost of sales | $ (1,149) | $ (2,668) |
16. Segment Reporting (Details)
16. Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 794,108 | $ 548,286 | |
Gross profit (loss) | 346,003 | 112,051 | |
Depreciation and amortization expense | 81,065 | 61,585 | |
Goodwill | 28,735 | $ 29,687 | |
Modules [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 793,434 | 536,590 | |
Gross profit (loss) | 346,168 | 106,894 | |
Depreciation and amortization expense | 81,062 | 61,583 | |
Goodwill | 28,735 | 29,687 | |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 674 | 11,696 | |
Gross profit (loss) | (165) | 5,157 | |
Depreciation and amortization expense | 3 | $ 2 | |
Goodwill | $ 0 | $ 0 |