| Leases | 12 Months Ended |
| Dec. 31, 2021 |
| Leases [Abstract] | |
| Leases | Leases Facilities, Energy Servers, and Vehicles We lease most of our facilities, Energy Servers, and vehicles under operating and finance leases that expire at various dates through February 2036. We lease various manufacturing facilities in California and Delaware. Our Sunnyvale, California manufacturing facility lease was entered into in April 2005 and expires in December 2023. In June 2020 and in March 2021, we signed leases in Fremont, California that will expire in 2027 and 2036, respectively, to replace our manufacturing facilities in Sunnyvale and Mountain View, California. These existing plants in California together comprise approximately 581,000 square feet of space. In 2021, we extended the lease term for our headquarters in San Jose, California to 2031 and leased three additional floors. We lease additional office space as field offices in the United States and around the world including in China, India, Japan, the Republic of Korea, Taiwan and the United Arab Emirates. Some of these arrangements have free rent periods or escalating rent payment provisions. We recognize lease cost under such arrangements on a straight-line basis over the life of the leases. For the years ended December 31, 2021 and 2020, rent expense for all occupied facilities was $16.0 million and $9.9 million, respectively. At inception of the contract, we assess whether a contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by us. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (financing lease) or not (operating lease). Our operating leases are comprised primarily of leases for facilities, office buildings, and vehicles, and our financing leases are comprised primarily of vehicles. Our leases have lease terms ranging from less than 1 year to 15 years, some of which include options to extend the leases. The lease term is the non-cancelable period of the lease and includes options to extend the lease when it is reasonably certain that an option will be exercised. Lease liabilities are measured at the lease commencement date as the present value of future lease payments. Lease right-of-use assets are measured as the lease liability plus initial direct costs and prepaid lease payments less lease incentives. In measuring the present value of the future lease payments, the discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the lessee is required to use its incremental borrowing rate. In computing our lease liabilities, we use the incremental borrowing rate based on the information available on the commencement date using an estimate of company-specific rate in the United States on a collateralized basis and consistent with the lease term for each lease. The lease term is the non-cancelable period of the lease and includes options to extend or terminate the lease when it is reasonably certain that an option will be exercised. Operating and financing lease right-of-use assets and lease liabilities for facilities, Energy Servers, and vehicles as of December 31, 2021 and 2020 were as follows (in thousands): December 31, 2021 2020 Assets : Operating lease right-of-use assets, net 1, 2 $ 106,660 $ 35,621 Financing lease right-of-use assets, net 2, 3, 4 2,944 334 Total $ 109,604 $ 35,955 Liabilities : Current: Operating lease liabilities $ 13,101 $ 7,899 Financing lease liabilities 5 863 74 Total current lease liabilities 13,964 7,973 Non-current: Operating lease liabilities 106,187 41,849 Financing lease liabilities 6 2,157 267 Total non-current lease liabilities 108,344 42,116 Total lease liabilities $ 122,308 $ 50,089 1 These assets primarily include leases for facilities, Energy Servers and vehicles. 2 Net of accumulated amortization. 3 These assets primarily include leases for vehicles. 4 Included in property, plant and equipment, net, in the consolidated balance sheets, net of accumulated amortization. 5 Included in accrued expenses and other current liabilities in the consolidated balance sheets. 6 Included in other long-term liabilities in the consolidated balance sheets. The components of our facilities, Energy Servers, and vehicles' lease costs for the years ended December 31, 2021 and 2020 were as follows (in thousands): Years Ended 2021 2020 Operating lease costs $ 15,850 $ 9,804 Financing lease costs: Amortization of financing lease right-of-use assets 1,345 51 Interest expense for financing lease liabilities 349 16 Total financing lease costs 1,694 67 Short-term lease costs 407 613 Total lease costs $ 17,951 $ 10,484 Weighted average remaining lease terms and discount rates for our facilities, Energy Servers and vehicles as of December 31, 2021 and 2020 were as follows: December 31, 2021 2020 Remaining lease term (years): Operating leases 8.9 years 6.7 years Finance leases 3.5 years 4.2 years Discount rate: Operating leases 9.6 % 8.7 % Finance leases 7.6 % 7.0 % Future lease payments under lease agreements for our facilities, Energy Servers and vehicles as of December 31, 2021 were as follows (in thousands): Operating Leases Finance Leases 2022 $ 13,153 $ 948 2023 14,994 944 2024 13,500 771 2025 13,524 301 2026 13,061 83 Thereafter 61,636 — Total minimum lease payments 129,868 3,047 Less: amounts representing interest or imputed interest (10,581) (26) Present value of lease liabilities $ 119,287 $ 3,021 Managed Services and Portfolio Financings Through PPA Entities Certain of our customers enter into Managed Services or Portfolio Financings through a PPA Entity to finance their lease of Bloom Energy Servers. Prior to our adoption of ASC 842 as of January 1, 2020, such arrangements with customers that qualified as leases were classified as either sales-type leases or operating leases. For all pre-existing Managed Services Financings or Portfolio Financings through PPA Entities, we have carried over the accounting classifications for those transactions and continue to account for such transactions as either sales-type leases or operating leases under ASC 842. Customer arrangements under Managed Services and Portfolio Financings through PPA Entities entered into after January 1, 2021 do not contain a lease under ASC 842 and are accounted for under ASC 606 as revenue arrangements. Lease agreements under our Managed Services Financings and Portfolio Financings through PPA Entities include non-cancellable lease terms, during which terms the majority of our investment in Energy Servers under lease are typically recovered. We mitigate remaining residual value risk of its Energy Servers through its provision of maintenance on the Energy Servers during the lease term and through insurance whose proceeds are payable in the event of theft, loss, damage, or destruction. Managed Services - Our Managed Services Financings with financiers that result in failed sale-and-leaseback transactions are accounted for as financing transactions. Payments received from the financier are recognized as financing obligations in our consolidated balance sheets. Proceeds from the financiers in excess of fair value of Energy Servers under successful sale-and-leaseback transactions are also accounted for as financing liability. These financing obligations are included in each agreements' contract value and are recognized as short-term or long-term liabilities based on the estimated payment dates. The lease agreements expire on various dates through 2034. For successful sale-and-leaseback transactions, we recorded right-of-use assets and lease liabilities and recorded lease expense over the lease term. The recognized lease expense has been immaterial. We recognized $35.1 million of product revenue, $20.9 million of installation revenue, $10.0 million of financing obligations, and $29.4 million of right-of-use assets and lease liabilities from such successful sale and leaseback transactions for the year ended December 31, 2021. At December 31, 2021, future lease payments under the Managed Services Agreements financing obligations and the sublease payments from the customers under the related operating leases were as follows (in thousands): Financing Obligations 2022 $ 45,117 2023 44,173 2024 42,100 2025 41,075 2026 36,477 Thereafter 55,780 Total lease payments 264,722 Less: imputed interest (149,240) Total lease obligations 115,482 Less: current obligations (14,721) Long-term lease obligations $ 100,761 The long-term financing obligations, as reflected in our consolidated balance sheets, were $461.9 million and $460.0 million as of December 31, 2021 and 2020, respectively. The difference between these obligations and the principal obligations in the table above will be offset against the carrying value of the related Energy Servers at the end of the lease and the remainder recognized as a gain at that point. Portfolio Financings through PPA Entities - Customer arrangements entered into prior to January 1, 2020 under Portfolio Financing arrangements through a PPA Entity that qualified as leases are accounted for as either sales-type leases or operating leases. Since January 1, 2020, we have not entered into any new PPAs with customers under such arrangements. The components of our aggregate net investment in sales-type leases under our Portfolio Financings through PPA entities consisted of the following (in thousands): December 31, 2021 2020 Lease payment receivables, net 1 $ 44,378 $ 49,806 Estimated residual value of leased assets (unguaranteed) 890 890 Net investment in sales-type leases 45,268 50,696 Less: current portion (5,784) (5,428) Non-current portion of net investment in sales-type leases $ 39,484 $ 45,268 1 Net of current estimated credit losses of approximately $0.1 million as of December 31, 2021 and December 31, 2020. As of December 31, 2021, the future scheduled customer payments from sales-type leases were as follows (in thousands): Future minimum lease payments 2022 $ 6,110 2023 6,435 2024 6,797 2025 7,125 2026 7,491 Thereafter 11,690 Total undiscounted cash flows 45,648 Less: imputed interest (1,219) Present value of lease payments 1 $ 44,429 1 Amount comprises a current and long-term portion of lease receivables of $5.8 million and $39.5 million, respectively, after giving effect to a $0.1 million current expected credit loss reserve on the long-term portion, which is reflected as a component of the net investment in sales-type leases presented in our consolidated statement of financial position as customer financing receivables. Future estimated operating lease payments we expect to receive from Portfolio Financing arrangements through PPA Entities as of December 31, 2021, were as follows (in thousands): Operating Leases 2022 44,205 2023 45,290 2024 46,533 2025 47,553 2026 48,732 Thereafter 215,286 Total lease payments $ 447,599 |
| Leases | Leases Facilities, Energy Servers, and Vehicles We lease most of our facilities, Energy Servers, and vehicles under operating and finance leases that expire at various dates through February 2036. We lease various manufacturing facilities in California and Delaware. Our Sunnyvale, California manufacturing facility lease was entered into in April 2005 and expires in December 2023. In June 2020 and in March 2021, we signed leases in Fremont, California that will expire in 2027 and 2036, respectively, to replace our manufacturing facilities in Sunnyvale and Mountain View, California. These existing plants in California together comprise approximately 581,000 square feet of space. In 2021, we extended the lease term for our headquarters in San Jose, California to 2031 and leased three additional floors. We lease additional office space as field offices in the United States and around the world including in China, India, Japan, the Republic of Korea, Taiwan and the United Arab Emirates. Some of these arrangements have free rent periods or escalating rent payment provisions. We recognize lease cost under such arrangements on a straight-line basis over the life of the leases. For the years ended December 31, 2021 and 2020, rent expense for all occupied facilities was $16.0 million and $9.9 million, respectively. At inception of the contract, we assess whether a contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by us. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (financing lease) or not (operating lease). Our operating leases are comprised primarily of leases for facilities, office buildings, and vehicles, and our financing leases are comprised primarily of vehicles. Our leases have lease terms ranging from less than 1 year to 15 years, some of which include options to extend the leases. The lease term is the non-cancelable period of the lease and includes options to extend the lease when it is reasonably certain that an option will be exercised. Lease liabilities are measured at the lease commencement date as the present value of future lease payments. Lease right-of-use assets are measured as the lease liability plus initial direct costs and prepaid lease payments less lease incentives. In measuring the present value of the future lease payments, the discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the lessee is required to use its incremental borrowing rate. In computing our lease liabilities, we use the incremental borrowing rate based on the information available on the commencement date using an estimate of company-specific rate in the United States on a collateralized basis and consistent with the lease term for each lease. The lease term is the non-cancelable period of the lease and includes options to extend or terminate the lease when it is reasonably certain that an option will be exercised. Operating and financing lease right-of-use assets and lease liabilities for facilities, Energy Servers, and vehicles as of December 31, 2021 and 2020 were as follows (in thousands): December 31, 2021 2020 Assets : Operating lease right-of-use assets, net 1, 2 $ 106,660 $ 35,621 Financing lease right-of-use assets, net 2, 3, 4 2,944 334 Total $ 109,604 $ 35,955 Liabilities : Current: Operating lease liabilities $ 13,101 $ 7,899 Financing lease liabilities 5 863 74 Total current lease liabilities 13,964 7,973 Non-current: Operating lease liabilities 106,187 41,849 Financing lease liabilities 6 2,157 267 Total non-current lease liabilities 108,344 42,116 Total lease liabilities $ 122,308 $ 50,089 1 These assets primarily include leases for facilities, Energy Servers and vehicles. 2 Net of accumulated amortization. 3 These assets primarily include leases for vehicles. 4 Included in property, plant and equipment, net, in the consolidated balance sheets, net of accumulated amortization. 5 Included in accrued expenses and other current liabilities in the consolidated balance sheets. 6 Included in other long-term liabilities in the consolidated balance sheets. The components of our facilities, Energy Servers, and vehicles' lease costs for the years ended December 31, 2021 and 2020 were as follows (in thousands): Years Ended 2021 2020 Operating lease costs $ 15,850 $ 9,804 Financing lease costs: Amortization of financing lease right-of-use assets 1,345 51 Interest expense for financing lease liabilities 349 16 Total financing lease costs 1,694 67 Short-term lease costs 407 613 Total lease costs $ 17,951 $ 10,484 Weighted average remaining lease terms and discount rates for our facilities, Energy Servers and vehicles as of December 31, 2021 and 2020 were as follows: December 31, 2021 2020 Remaining lease term (years): Operating leases 8.9 years 6.7 years Finance leases 3.5 years 4.2 years Discount rate: Operating leases 9.6 % 8.7 % Finance leases 7.6 % 7.0 % Future lease payments under lease agreements for our facilities, Energy Servers and vehicles as of December 31, 2021 were as follows (in thousands): Operating Leases Finance Leases 2022 $ 13,153 $ 948 2023 14,994 944 2024 13,500 771 2025 13,524 301 2026 13,061 83 Thereafter 61,636 — Total minimum lease payments 129,868 3,047 Less: amounts representing interest or imputed interest (10,581) (26) Present value of lease liabilities $ 119,287 $ 3,021 Managed Services and Portfolio Financings Through PPA Entities Certain of our customers enter into Managed Services or Portfolio Financings through a PPA Entity to finance their lease of Bloom Energy Servers. Prior to our adoption of ASC 842 as of January 1, 2020, such arrangements with customers that qualified as leases were classified as either sales-type leases or operating leases. For all pre-existing Managed Services Financings or Portfolio Financings through PPA Entities, we have carried over the accounting classifications for those transactions and continue to account for such transactions as either sales-type leases or operating leases under ASC 842. Customer arrangements under Managed Services and Portfolio Financings through PPA Entities entered into after January 1, 2021 do not contain a lease under ASC 842 and are accounted for under ASC 606 as revenue arrangements. Lease agreements under our Managed Services Financings and Portfolio Financings through PPA Entities include non-cancellable lease terms, during which terms the majority of our investment in Energy Servers under lease are typically recovered. We mitigate remaining residual value risk of its Energy Servers through its provision of maintenance on the Energy Servers during the lease term and through insurance whose proceeds are payable in the event of theft, loss, damage, or destruction. Managed Services - Our Managed Services Financings with financiers that result in failed sale-and-leaseback transactions are accounted for as financing transactions. Payments received from the financier are recognized as financing obligations in our consolidated balance sheets. Proceeds from the financiers in excess of fair value of Energy Servers under successful sale-and-leaseback transactions are also accounted for as financing liability. These financing obligations are included in each agreements' contract value and are recognized as short-term or long-term liabilities based on the estimated payment dates. The lease agreements expire on various dates through 2034. For successful sale-and-leaseback transactions, we recorded right-of-use assets and lease liabilities and recorded lease expense over the lease term. The recognized lease expense has been immaterial. We recognized $35.1 million of product revenue, $20.9 million of installation revenue, $10.0 million of financing obligations, and $29.4 million of right-of-use assets and lease liabilities from such successful sale and leaseback transactions for the year ended December 31, 2021. At December 31, 2021, future lease payments under the Managed Services Agreements financing obligations and the sublease payments from the customers under the related operating leases were as follows (in thousands): Financing Obligations 2022 $ 45,117 2023 44,173 2024 42,100 2025 41,075 2026 36,477 Thereafter 55,780 Total lease payments 264,722 Less: imputed interest (149,240) Total lease obligations 115,482 Less: current obligations (14,721) Long-term lease obligations $ 100,761 The long-term financing obligations, as reflected in our consolidated balance sheets, were $461.9 million and $460.0 million as of December 31, 2021 and 2020, respectively. The difference between these obligations and the principal obligations in the table above will be offset against the carrying value of the related Energy Servers at the end of the lease and the remainder recognized as a gain at that point. Portfolio Financings through PPA Entities - Customer arrangements entered into prior to January 1, 2020 under Portfolio Financing arrangements through a PPA Entity that qualified as leases are accounted for as either sales-type leases or operating leases. Since January 1, 2020, we have not entered into any new PPAs with customers under such arrangements. The components of our aggregate net investment in sales-type leases under our Portfolio Financings through PPA entities consisted of the following (in thousands): December 31, 2021 2020 Lease payment receivables, net 1 $ 44,378 $ 49,806 Estimated residual value of leased assets (unguaranteed) 890 890 Net investment in sales-type leases 45,268 50,696 Less: current portion (5,784) (5,428) Non-current portion of net investment in sales-type leases $ 39,484 $ 45,268 1 Net of current estimated credit losses of approximately $0.1 million as of December 31, 2021 and December 31, 2020. As of December 31, 2021, the future scheduled customer payments from sales-type leases were as follows (in thousands): Future minimum lease payments 2022 $ 6,110 2023 6,435 2024 6,797 2025 7,125 2026 7,491 Thereafter 11,690 Total undiscounted cash flows 45,648 Less: imputed interest (1,219) Present value of lease payments 1 $ 44,429 1 Amount comprises a current and long-term portion of lease receivables of $5.8 million and $39.5 million, respectively, after giving effect to a $0.1 million current expected credit loss reserve on the long-term portion, which is reflected as a component of the net investment in sales-type leases presented in our consolidated statement of financial position as customer financing receivables. Future estimated operating lease payments we expect to receive from Portfolio Financing arrangements through PPA Entities as of December 31, 2021, were as follows (in thousands): Operating Leases 2022 44,205 2023 45,290 2024 46,533 2025 47,553 2026 48,732 Thereafter 215,286 Total lease payments $ 447,599 |
| Leases | Leases Facilities, Energy Servers, and Vehicles We lease most of our facilities, Energy Servers, and vehicles under operating and finance leases that expire at various dates through February 2036. We lease various manufacturing facilities in California and Delaware. Our Sunnyvale, California manufacturing facility lease was entered into in April 2005 and expires in December 2023. In June 2020 and in March 2021, we signed leases in Fremont, California that will expire in 2027 and 2036, respectively, to replace our manufacturing facilities in Sunnyvale and Mountain View, California. These existing plants in California together comprise approximately 581,000 square feet of space. In 2021, we extended the lease term for our headquarters in San Jose, California to 2031 and leased three additional floors. We lease additional office space as field offices in the United States and around the world including in China, India, Japan, the Republic of Korea, Taiwan and the United Arab Emirates. Some of these arrangements have free rent periods or escalating rent payment provisions. We recognize lease cost under such arrangements on a straight-line basis over the life of the leases. For the years ended December 31, 2021 and 2020, rent expense for all occupied facilities was $16.0 million and $9.9 million, respectively. At inception of the contract, we assess whether a contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by us. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (financing lease) or not (operating lease). Our operating leases are comprised primarily of leases for facilities, office buildings, and vehicles, and our financing leases are comprised primarily of vehicles. Our leases have lease terms ranging from less than 1 year to 15 years, some of which include options to extend the leases. The lease term is the non-cancelable period of the lease and includes options to extend the lease when it is reasonably certain that an option will be exercised. Lease liabilities are measured at the lease commencement date as the present value of future lease payments. Lease right-of-use assets are measured as the lease liability plus initial direct costs and prepaid lease payments less lease incentives. In measuring the present value of the future lease payments, the discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the lessee is required to use its incremental borrowing rate. In computing our lease liabilities, we use the incremental borrowing rate based on the information available on the commencement date using an estimate of company-specific rate in the United States on a collateralized basis and consistent with the lease term for each lease. The lease term is the non-cancelable period of the lease and includes options to extend or terminate the lease when it is reasonably certain that an option will be exercised. Operating and financing lease right-of-use assets and lease liabilities for facilities, Energy Servers, and vehicles as of December 31, 2021 and 2020 were as follows (in thousands): December 31, 2021 2020 Assets : Operating lease right-of-use assets, net 1, 2 $ 106,660 $ 35,621 Financing lease right-of-use assets, net 2, 3, 4 2,944 334 Total $ 109,604 $ 35,955 Liabilities : Current: Operating lease liabilities $ 13,101 $ 7,899 Financing lease liabilities 5 863 74 Total current lease liabilities 13,964 7,973 Non-current: Operating lease liabilities 106,187 41,849 Financing lease liabilities 6 2,157 267 Total non-current lease liabilities 108,344 42,116 Total lease liabilities $ 122,308 $ 50,089 1 These assets primarily include leases for facilities, Energy Servers and vehicles. 2 Net of accumulated amortization. 3 These assets primarily include leases for vehicles. 4 Included in property, plant and equipment, net, in the consolidated balance sheets, net of accumulated amortization. 5 Included in accrued expenses and other current liabilities in the consolidated balance sheets. 6 Included in other long-term liabilities in the consolidated balance sheets. The components of our facilities, Energy Servers, and vehicles' lease costs for the years ended December 31, 2021 and 2020 were as follows (in thousands): Years Ended 2021 2020 Operating lease costs $ 15,850 $ 9,804 Financing lease costs: Amortization of financing lease right-of-use assets 1,345 51 Interest expense for financing lease liabilities 349 16 Total financing lease costs 1,694 67 Short-term lease costs 407 613 Total lease costs $ 17,951 $ 10,484 Weighted average remaining lease terms and discount rates for our facilities, Energy Servers and vehicles as of December 31, 2021 and 2020 were as follows: December 31, 2021 2020 Remaining lease term (years): Operating leases 8.9 years 6.7 years Finance leases 3.5 years 4.2 years Discount rate: Operating leases 9.6 % 8.7 % Finance leases 7.6 % 7.0 % Future lease payments under lease agreements for our facilities, Energy Servers and vehicles as of December 31, 2021 were as follows (in thousands): Operating Leases Finance Leases 2022 $ 13,153 $ 948 2023 14,994 944 2024 13,500 771 2025 13,524 301 2026 13,061 83 Thereafter 61,636 — Total minimum lease payments 129,868 3,047 Less: amounts representing interest or imputed interest (10,581) (26) Present value of lease liabilities $ 119,287 $ 3,021 Managed Services and Portfolio Financings Through PPA Entities Certain of our customers enter into Managed Services or Portfolio Financings through a PPA Entity to finance their lease of Bloom Energy Servers. Prior to our adoption of ASC 842 as of January 1, 2020, such arrangements with customers that qualified as leases were classified as either sales-type leases or operating leases. For all pre-existing Managed Services Financings or Portfolio Financings through PPA Entities, we have carried over the accounting classifications for those transactions and continue to account for such transactions as either sales-type leases or operating leases under ASC 842. Customer arrangements under Managed Services and Portfolio Financings through PPA Entities entered into after January 1, 2021 do not contain a lease under ASC 842 and are accounted for under ASC 606 as revenue arrangements. Lease agreements under our Managed Services Financings and Portfolio Financings through PPA Entities include non-cancellable lease terms, during which terms the majority of our investment in Energy Servers under lease are typically recovered. We mitigate remaining residual value risk of its Energy Servers through its provision of maintenance on the Energy Servers during the lease term and through insurance whose proceeds are payable in the event of theft, loss, damage, or destruction. Managed Services - Our Managed Services Financings with financiers that result in failed sale-and-leaseback transactions are accounted for as financing transactions. Payments received from the financier are recognized as financing obligations in our consolidated balance sheets. Proceeds from the financiers in excess of fair value of Energy Servers under successful sale-and-leaseback transactions are also accounted for as financing liability. These financing obligations are included in each agreements' contract value and are recognized as short-term or long-term liabilities based on the estimated payment dates. The lease agreements expire on various dates through 2034. For successful sale-and-leaseback transactions, we recorded right-of-use assets and lease liabilities and recorded lease expense over the lease term. The recognized lease expense has been immaterial. We recognized $35.1 million of product revenue, $20.9 million of installation revenue, $10.0 million of financing obligations, and $29.4 million of right-of-use assets and lease liabilities from such successful sale and leaseback transactions for the year ended December 31, 2021. At December 31, 2021, future lease payments under the Managed Services Agreements financing obligations and the sublease payments from the customers under the related operating leases were as follows (in thousands): Financing Obligations 2022 $ 45,117 2023 44,173 2024 42,100 2025 41,075 2026 36,477 Thereafter 55,780 Total lease payments 264,722 Less: imputed interest (149,240) Total lease obligations 115,482 Less: current obligations (14,721) Long-term lease obligations $ 100,761 The long-term financing obligations, as reflected in our consolidated balance sheets, were $461.9 million and $460.0 million as of December 31, 2021 and 2020, respectively. The difference between these obligations and the principal obligations in the table above will be offset against the carrying value of the related Energy Servers at the end of the lease and the remainder recognized as a gain at that point. Portfolio Financings through PPA Entities - Customer arrangements entered into prior to January 1, 2020 under Portfolio Financing arrangements through a PPA Entity that qualified as leases are accounted for as either sales-type leases or operating leases. Since January 1, 2020, we have not entered into any new PPAs with customers under such arrangements. The components of our aggregate net investment in sales-type leases under our Portfolio Financings through PPA entities consisted of the following (in thousands): December 31, 2021 2020 Lease payment receivables, net 1 $ 44,378 $ 49,806 Estimated residual value of leased assets (unguaranteed) 890 890 Net investment in sales-type leases 45,268 50,696 Less: current portion (5,784) (5,428) Non-current portion of net investment in sales-type leases $ 39,484 $ 45,268 1 Net of current estimated credit losses of approximately $0.1 million as of December 31, 2021 and December 31, 2020. As of December 31, 2021, the future scheduled customer payments from sales-type leases were as follows (in thousands): Future minimum lease payments 2022 $ 6,110 2023 6,435 2024 6,797 2025 7,125 2026 7,491 Thereafter 11,690 Total undiscounted cash flows 45,648 Less: imputed interest (1,219) Present value of lease payments 1 $ 44,429 1 Amount comprises a current and long-term portion of lease receivables of $5.8 million and $39.5 million, respectively, after giving effect to a $0.1 million current expected credit loss reserve on the long-term portion, which is reflected as a component of the net investment in sales-type leases presented in our consolidated statement of financial position as customer financing receivables. Future estimated operating lease payments we expect to receive from Portfolio Financing arrangements through PPA Entities as of December 31, 2021, were as follows (in thousands): Operating Leases 2022 44,205 2023 45,290 2024 46,533 2025 47,553 2026 48,732 Thereafter 215,286 Total lease payments $ 447,599 |
| Leases | Leases Facilities, Energy Servers, and Vehicles We lease most of our facilities, Energy Servers, and vehicles under operating and finance leases that expire at various dates through February 2036. We lease various manufacturing facilities in California and Delaware. Our Sunnyvale, California manufacturing facility lease was entered into in April 2005 and expires in December 2023. In June 2020 and in March 2021, we signed leases in Fremont, California that will expire in 2027 and 2036, respectively, to replace our manufacturing facilities in Sunnyvale and Mountain View, California. These existing plants in California together comprise approximately 581,000 square feet of space. In 2021, we extended the lease term for our headquarters in San Jose, California to 2031 and leased three additional floors. We lease additional office space as field offices in the United States and around the world including in China, India, Japan, the Republic of Korea, Taiwan and the United Arab Emirates. Some of these arrangements have free rent periods or escalating rent payment provisions. We recognize lease cost under such arrangements on a straight-line basis over the life of the leases. For the years ended December 31, 2021 and 2020, rent expense for all occupied facilities was $16.0 million and $9.9 million, respectively. At inception of the contract, we assess whether a contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by us. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (financing lease) or not (operating lease). Our operating leases are comprised primarily of leases for facilities, office buildings, and vehicles, and our financing leases are comprised primarily of vehicles. Our leases have lease terms ranging from less than 1 year to 15 years, some of which include options to extend the leases. The lease term is the non-cancelable period of the lease and includes options to extend the lease when it is reasonably certain that an option will be exercised. Lease liabilities are measured at the lease commencement date as the present value of future lease payments. Lease right-of-use assets are measured as the lease liability plus initial direct costs and prepaid lease payments less lease incentives. In measuring the present value of the future lease payments, the discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the lessee is required to use its incremental borrowing rate. In computing our lease liabilities, we use the incremental borrowing rate based on the information available on the commencement date using an estimate of company-specific rate in the United States on a collateralized basis and consistent with the lease term for each lease. The lease term is the non-cancelable period of the lease and includes options to extend or terminate the lease when it is reasonably certain that an option will be exercised. Operating and financing lease right-of-use assets and lease liabilities for facilities, Energy Servers, and vehicles as of December 31, 2021 and 2020 were as follows (in thousands): December 31, 2021 2020 Assets : Operating lease right-of-use assets, net 1, 2 $ 106,660 $ 35,621 Financing lease right-of-use assets, net 2, 3, 4 2,944 334 Total $ 109,604 $ 35,955 Liabilities : Current: Operating lease liabilities $ 13,101 $ 7,899 Financing lease liabilities 5 863 74 Total current lease liabilities 13,964 7,973 Non-current: Operating lease liabilities 106,187 41,849 Financing lease liabilities 6 2,157 267 Total non-current lease liabilities 108,344 42,116 Total lease liabilities $ 122,308 $ 50,089 1 These assets primarily include leases for facilities, Energy Servers and vehicles. 2 Net of accumulated amortization. 3 These assets primarily include leases for vehicles. 4 Included in property, plant and equipment, net, in the consolidated balance sheets, net of accumulated amortization. 5 Included in accrued expenses and other current liabilities in the consolidated balance sheets. 6 Included in other long-term liabilities in the consolidated balance sheets. The components of our facilities, Energy Servers, and vehicles' lease costs for the years ended December 31, 2021 and 2020 were as follows (in thousands): Years Ended 2021 2020 Operating lease costs $ 15,850 $ 9,804 Financing lease costs: Amortization of financing lease right-of-use assets 1,345 51 Interest expense for financing lease liabilities 349 16 Total financing lease costs 1,694 67 Short-term lease costs 407 613 Total lease costs $ 17,951 $ 10,484 Weighted average remaining lease terms and discount rates for our facilities, Energy Servers and vehicles as of December 31, 2021 and 2020 were as follows: December 31, 2021 2020 Remaining lease term (years): Operating leases 8.9 years 6.7 years Finance leases 3.5 years 4.2 years Discount rate: Operating leases 9.6 % 8.7 % Finance leases 7.6 % 7.0 % Future lease payments under lease agreements for our facilities, Energy Servers and vehicles as of December 31, 2021 were as follows (in thousands): Operating Leases Finance Leases 2022 $ 13,153 $ 948 2023 14,994 944 2024 13,500 771 2025 13,524 301 2026 13,061 83 Thereafter 61,636 — Total minimum lease payments 129,868 3,047 Less: amounts representing interest or imputed interest (10,581) (26) Present value of lease liabilities $ 119,287 $ 3,021 Managed Services and Portfolio Financings Through PPA Entities Certain of our customers enter into Managed Services or Portfolio Financings through a PPA Entity to finance their lease of Bloom Energy Servers. Prior to our adoption of ASC 842 as of January 1, 2020, such arrangements with customers that qualified as leases were classified as either sales-type leases or operating leases. For all pre-existing Managed Services Financings or Portfolio Financings through PPA Entities, we have carried over the accounting classifications for those transactions and continue to account for such transactions as either sales-type leases or operating leases under ASC 842. Customer arrangements under Managed Services and Portfolio Financings through PPA Entities entered into after January 1, 2021 do not contain a lease under ASC 842 and are accounted for under ASC 606 as revenue arrangements. Lease agreements under our Managed Services Financings and Portfolio Financings through PPA Entities include non-cancellable lease terms, during which terms the majority of our investment in Energy Servers under lease are typically recovered. We mitigate remaining residual value risk of its Energy Servers through its provision of maintenance on the Energy Servers during the lease term and through insurance whose proceeds are payable in the event of theft, loss, damage, or destruction. Managed Services - Our Managed Services Financings with financiers that result in failed sale-and-leaseback transactions are accounted for as financing transactions. Payments received from the financier are recognized as financing obligations in our consolidated balance sheets. Proceeds from the financiers in excess of fair value of Energy Servers under successful sale-and-leaseback transactions are also accounted for as financing liability. These financing obligations are included in each agreements' contract value and are recognized as short-term or long-term liabilities based on the estimated payment dates. The lease agreements expire on various dates through 2034. For successful sale-and-leaseback transactions, we recorded right-of-use assets and lease liabilities and recorded lease expense over the lease term. The recognized lease expense has been immaterial. We recognized $35.1 million of product revenue, $20.9 million of installation revenue, $10.0 million of financing obligations, and $29.4 million of right-of-use assets and lease liabilities from such successful sale and leaseback transactions for the year ended December 31, 2021. At December 31, 2021, future lease payments under the Managed Services Agreements financing obligations and the sublease payments from the customers under the related operating leases were as follows (in thousands): Financing Obligations 2022 $ 45,117 2023 44,173 2024 42,100 2025 41,075 2026 36,477 Thereafter 55,780 Total lease payments 264,722 Less: imputed interest (149,240) Total lease obligations 115,482 Less: current obligations (14,721) Long-term lease obligations $ 100,761 The long-term financing obligations, as reflected in our consolidated balance sheets, were $461.9 million and $460.0 million as of December 31, 2021 and 2020, respectively. The difference between these obligations and the principal obligations in the table above will be offset against the carrying value of the related Energy Servers at the end of the lease and the remainder recognized as a gain at that point. Portfolio Financings through PPA Entities - Customer arrangements entered into prior to January 1, 2020 under Portfolio Financing arrangements through a PPA Entity that qualified as leases are accounted for as either sales-type leases or operating leases. Since January 1, 2020, we have not entered into any new PPAs with customers under such arrangements. The components of our aggregate net investment in sales-type leases under our Portfolio Financings through PPA entities consisted of the following (in thousands): December 31, 2021 2020 Lease payment receivables, net 1 $ 44,378 $ 49,806 Estimated residual value of leased assets (unguaranteed) 890 890 Net investment in sales-type leases 45,268 50,696 Less: current portion (5,784) (5,428) Non-current portion of net investment in sales-type leases $ 39,484 $ 45,268 1 Net of current estimated credit losses of approximately $0.1 million as of December 31, 2021 and December 31, 2020. As of December 31, 2021, the future scheduled customer payments from sales-type leases were as follows (in thousands): Future minimum lease payments 2022 $ 6,110 2023 6,435 2024 6,797 2025 7,125 2026 7,491 Thereafter 11,690 Total undiscounted cash flows 45,648 Less: imputed interest (1,219) Present value of lease payments 1 $ 44,429 1 Amount comprises a current and long-term portion of lease receivables of $5.8 million and $39.5 million, respectively, after giving effect to a $0.1 million current expected credit loss reserve on the long-term portion, which is reflected as a component of the net investment in sales-type leases presented in our consolidated statement of financial position as customer financing receivables. Future estimated operating lease payments we expect to receive from Portfolio Financing arrangements through PPA Entities as of December 31, 2021, were as follows (in thousands): Operating Leases 2022 44,205 2023 45,290 2024 46,533 2025 47,553 2026 48,732 Thereafter 215,286 Total lease payments $ 447,599 |
