[x] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2013 | |
or | |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Delaware | 20-4623678 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer [x] | Accelerated filer [ ] | Non-accelerated filer [ ] | Smaller reporting company [ ] |
(Do not check if a smaller reporting company) |
Page | ||
Part I. | Financial Information (Unaudited) | |
Item 1. | Condensed Consolidated Financial Statements: | |
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2013 and June 30, 2012 | ||
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2013 and June 30, 2012 | ||
Condensed Consolidated Balance Sheets as of June 30, 2013 and December 31, 2012 | ||
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2013 and June 30, 2012 | ||
Notes to Condensed Consolidated Financial Statements | ||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. | Controls and Procedures | |
Part II. | Other Information | |
Item 1. | Legal Proceedings | |
Item 1A. | Risk Factors | |
Item 4. | Mine Safety Disclosures | |
Item 5. | Other Information | |
Item 6. | Exhibits | |
Signature |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||
Net sales | $ | 519,760 | $ | 957,332 | $ | 1,274,965 | $ | 1,454,387 | ||||||||
Cost of sales | 379,662 | 713,591 | 965,541 | 1,133,901 | ||||||||||||
Gross profit | 140,098 | 243,741 | 309,424 | 320,486 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 30,964 | 32,365 | 60,895 | 68,449 | ||||||||||||
Selling, general and administrative | 66,265 | 52,184 | 140,730 | 144,004 | ||||||||||||
Production start-up | 1,392 | 533 | 2,768 | 4,591 | ||||||||||||
Restructuring | 2,381 | 19,000 | 4,728 | 420,065 | ||||||||||||
Total operating expenses | 101,002 | 104,082 | 209,121 | 637,109 | ||||||||||||
Operating income (loss) | 39,096 | 139,659 | 100,303 | (316,623 | ) | |||||||||||
Foreign currency (loss) gain | (1,068 | ) | 1,015 | 550 | 31 | |||||||||||
Interest income | 3,405 | 3,379 | 8,352 | 6,290 | ||||||||||||
Interest expense, net | (875 | ) | (7,372 | ) | (1,625 | ) | (8,292 | ) | ||||||||
Other income (expense), net | 504 | (1,334 | ) | (329 | ) | (2,545 | ) | |||||||||
Income (loss) before income taxes | 41,062 | 135,347 | 107,251 | (321,139 | ) | |||||||||||
Income tax expense | 7,464 | 24,364 | 14,511 | 17,294 | ||||||||||||
Net income (loss) | $ | 33,598 | $ | 110,983 | $ | 92,740 | $ | (338,433 | ) | |||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.38 | $ | 1.28 | $ | 1.05 | $ | (3.90 | ) | |||||||
Diluted | $ | 0.37 | $ | 1.27 | $ | 1.03 | $ | (3.90 | ) | |||||||
Weighted-average number of shares used in per share calculations: | ||||||||||||||||
Basic | 89,201 | 86,855 | 88,209 | 86,681 | ||||||||||||
Diluted | 91,142 | 87,653 | 90,265 | 86,681 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||
Net income (loss) | $ | 33,598 | $ | 110,983 | $ | 92,740 | $ | (338,433 | ) | |||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Foreign currency translation adjustments | 1,500 | (9,795 | ) | (1,577 | ) | 3,714 | ||||||||||
Unrealized (loss) gain on marketable securities and restricted investments | (17,029 | ) | 12,626 | (27,370 | ) | 8,562 | ||||||||||
Unrealized gain (loss) on derivative instruments | 2,909 | 2,585 | (2,937 | ) | (12,715 | ) | ||||||||||
Total other comprehensive income (loss), net of tax | (12,620 | ) | 5,416 | (31,884 | ) | (439 | ) | |||||||||
Comprehensive income (loss) | $ | 20,978 | $ | 116,399 | $ | 60,856 | $ | (338,872 | ) |
June 30, 2013 | December 31, 2012 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 928,657 | $ | 901,294 | ||||
Marketable securities | 356,615 | 102,578 | ||||||
Accounts receivable trade, net | 192,580 | 553,567 | ||||||
Accounts receivable, unbilled and retainage | 460,438 | 400,987 | ||||||
Inventories | 334,261 | 434,921 | ||||||
Balance of systems parts | 128,384 | 98,903 | ||||||
Deferred project costs | 1,004,778 | 21,390 | ||||||
Deferred tax assets, net | 28,878 | 44,070 | ||||||
Assets held for sale | 49,521 | 49,521 | ||||||
Note receivable affiliate | — | 17,725 | ||||||
Prepaid expenses and other current assets | 117,167 | 207,368 | ||||||
Total current assets | 3,601,279 | 2,832,324 | ||||||
Property, plant and equipment, net | 1,560,908 | 1,525,382 | ||||||
Project assets and deferred project costs | 559,151 | 845,478 | ||||||
Deferred tax assets, net | 332,688 | 317,473 | ||||||
Restricted cash and investments | 275,183 | 301,400 | ||||||
Goodwill | 74,930 | 65,444 | ||||||
Inventories | 132,668 | 134,375 | ||||||
Retainage | 237,594 | 270,364 | ||||||
Other assets | 93,725 | 56,452 | ||||||
Total assets | $ | 6,868,126 | $ | 6,348,692 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 217,587 | $ | 350,230 | ||||
Income taxes payable | 4,749 | 5,474 | ||||||
Accrued expenses | 391,764 | 554,433 | ||||||
Current portion of long-term debt | 61,194 | 62,349 | ||||||
Deferred revenue | 1,682 | 2,056 | ||||||
Payments and billings for deferred project costs | 1,116,670 | 94,535 | ||||||
Other current liabilities | 61,149 | 32,297 | ||||||
Total current liabilities | 1,854,795 | 1,101,374 | ||||||
Accrued solar module collection and recycling liability | 248,178 | 212,835 | ||||||
Long-term debt | 194,570 | 500,223 | ||||||
Payments and billings for deferred project costs | 38,974 | 636,518 | ||||||
Other liabilities | 374,871 | 292,216 | ||||||
Total liabilities | 2,711,388 | 2,743,166 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 97,629,891 and 87,145,323 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively | 98 | 87 | ||||||
Additional paid-in capital | 2,555,872 | 2,065,527 | ||||||
Accumulated earnings | 1,622,473 | 1,529,733 | ||||||
Accumulated other comprehensive (loss) income | (21,705 | ) | 10,179 | |||||
Total stockholders’ equity | 4,156,738 | 3,605,526 | ||||||
Total liabilities and stockholders’ equity | $ | 6,868,126 | $ | 6,348,692 |
Six Months Ended | ||||||||
June 30, 2013 | June 30, 2012 | |||||||
Cash flows from operating activities: | ||||||||
Cash received from customers | $ | 2,050,622 | $ | 1,639,136 | ||||
Cash paid to suppliers and associates | (1,709,914 | ) | (1,169,399 | ) | ||||
Interest received | 3,724 | 2,970 | ||||||
Interest paid | (5,974 | ) | (18,030 | ) | ||||
Income tax refunds (payments), net | 5,976 | 25,561 | ||||||
Excess tax benefit from share-based compensation arrangements | (55,695 | ) | (66,853 | ) | ||||
Other operating activities | 89 | (1,050 | ) | |||||
Net cash provided by operating activities | 288,828 | 412,335 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property, plant and equipment | (156,856 | ) | (281,972 | ) | ||||
Purchases of marketable securities | (316,285 | ) | (14,446 | ) | ||||
Proceeds from maturities and sales of marketable securities | 60,766 | 83,367 | ||||||
Investment in note receivable, affiliate | — | (21,883 | ) | |||||
Payments received on note receivable, affiliate | 17,108 | — | ||||||
Purchase of restricted investments | — | (80,667 | ) | |||||
Change in restricted cash | 5,136 | 21,547 | ||||||
Acquisitions, net of cash acquired | (30,745 | ) | (2,437 | ) | ||||
Purchase of equity and cost method investments | (14,894 | ) | — | |||||
Other investing activities | (1,850 | ) | (4,812 | ) | ||||
Net cash used in investing activities | (437,620 | ) | (301,303 | ) | ||||
Cash flows from financing activities: | ||||||||
Repayments of long-term debt | (635,876 | ) | (735,296 | ) | ||||
Proceeds from borrowings under long-term debt, net of discount and issuance costs | 335,000 | 590,000 | ||||||
Excess tax benefit from share-based compensation arrangements | 55,695 | 66,853 | ||||||
Repayment of economic development funding | (8,315 | ) | (6,820 | ) | ||||
Proceeds from equity offering, net of issuance costs | 430,368 | — | ||||||
Other financing activities | 349 | (643 | ) | |||||
Net cash provided by (used in) financing activities | 177,221 | (85,906 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (1,066 | ) | (505 | ) | ||||
Net increase in cash and cash equivalents | 27,363 | 24,621 | ||||||
Cash and cash equivalents, beginning of the period | 901,294 | 605,619 | ||||||
Cash and cash equivalents, end of the period | $ | 928,657 | $ | 630,240 | ||||
Supplemental disclosure of noncash investing and financing activities: | ||||||||
Property, plant and equipment acquisitions funded by liabilities | $ | 57,681 | $ | 61,615 | ||||
Acquisitions funded by liabilities and contingent consideration | $ | 22,780 | $ | — |
April 2012 European Restructuring | Asset Impairments and Related Costs | Severance and Termination Related Costs | Grant Repayments | Total | ||||||||||||
Ending Balance at December 31, 2012 | $ | 16,625 | $ | 25,717 | $ | 8,400 | $ | 50,742 | ||||||||
Charges to Income | — | 2,347 | — | 2,347 | ||||||||||||
Change in Estimates | — | — | — | — | ||||||||||||
Cash Payments | (7,193 | ) | (6,720 | ) | (8,315 | ) | (22,228 | ) | ||||||||
Non-Cash Amounts Including Foreign Exchange Impact | (304 | ) | (718 | ) | (85 | ) | (1,107 | ) | ||||||||
Ending Balance at March 31, 2013 | 9,128 | 20,626 | — | 29,754 | ||||||||||||
Charges to Income | 2,170 | 1,185 | — | 3,355 | ||||||||||||
Change in Estimates | (945 | ) | (29 | ) | — | (974 | ) | |||||||||
Cash Payments | (6,597 | ) | (13,563 | ) | — | (20,160 | ) | |||||||||
Non-Cash Amounts Including Foreign Exchange Impact | (771 | ) | 316 | — | (455 | ) | ||||||||||
Ending Balance at June 30, 2013 | $ | 2,985 | $ | 8,535 | $ | — | $ | 11,520 |
June 30, 2013 | December 31, 2012 | |||||||
Cash: | ||||||||
Cash | $ | 882,091 | $ | 889,065 | ||||
Cash equivalents: | ||||||||
Commercial paper | 3,199 | 1,500 | ||||||
Money market funds | 43,367 | 10,729 | ||||||
Total cash and cash equivalents | 928,657 | 901,294 | ||||||
Marketable securities: | ||||||||
Commercial paper | 5,097 | 1,698 | ||||||
Corporate debt securities | 137,704 | 23,384 | ||||||
Federal agency debt | 25,813 | 29,936 | ||||||
Foreign agency debt | 110,641 | 7,233 | ||||||
Foreign government obligations | 26,191 | 4,142 | ||||||
Supranational debt | 47,673 | 34,181 | ||||||
U.S. government obligations | 3,496 | 2,004 | ||||||
Total marketable securities | 356,615 | 102,578 | ||||||
Total cash, cash equivalents, and marketable securities | $ | 1,285,272 | $ | 1,003,872 |
As of June 30, 2013 | ||||||||||||||||
Security Type | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Commercial paper | $ | 5,097 | $ | — | $ | — | $ | 5,097 | ||||||||
Corporate debt securities | 137,818 | 20 | 134 | 137,704 | ||||||||||||
Federal agency debt | 25,817 | 11 | 15 | 25,813 | ||||||||||||
Foreign agency debt | 110,788 | 6 | 153 | 110,641 | ||||||||||||
Foreign government obligations | 26,190 | 1 | — | 26,191 | ||||||||||||
Supranational debt | 47,692 | 40 | 59 | 47,673 | ||||||||||||
U.S. government obligations | 3,497 | — | 1 | 3,496 | ||||||||||||
Total | $ | 356,899 | $ | 78 | $ | 362 | $ | 356,615 |
As of December 31, 2012 | ||||||||||||||||
Security Type | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Commercial paper | $ | 1,697 | $ | 1 | $ | — | $ | 1,698 | ||||||||
Corporate debt securities | 23,358 | 26 | — | 23,384 | ||||||||||||
Federal agency debt | 29,888 | 49 | 1 | 29,936 | ||||||||||||
Foreign agency debt | 7,266 | — | 33 | 7,233 | ||||||||||||
Foreign government obligations | 4,138 | 4 | — | 4,142 | ||||||||||||
Supranational debt | 34,110 | 71 | — | 34,181 | ||||||||||||
U.S. government obligations | 2,000 | 4 | — | 2,004 | ||||||||||||
Total | $ | 102,457 | $ | 155 | $ | 34 | $ | 102,578 |
As of June 30, 2013 | ||||||||||||||||
Maturity | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
One year or less | $ | 71,006 | $ | 55 | $ | 11 | $ | 71,050 | ||||||||
One year to two years | 259,274 | 20 | 337 | 258,957 | ||||||||||||
Two years to three years | 26,619 | 3 | 14 | 26,608 | ||||||||||||
Total | $ | 356,899 | $ | 78 | $ | 362 | $ | 356,615 |
As of December 31, 2012 | ||||||||||||||||
Maturity | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
One year or less | $ | 71,225 | $ | 67 | $ | 32 | $ | 71,260 | ||||||||
One year to two years | 30,707 | 88 | 1 | 30,794 | ||||||||||||
Two years to three years | 525 | — | 1 | 524 | ||||||||||||
Total | $ | 102,457 | $ | 155 | $ | 34 | $ | 102,578 |
As of June 30, 2013 | ||||||||||||||||||||||||
In Loss Position for Less Than 12 Months | In Loss Position for 12 Months or Greater | Total | ||||||||||||||||||||||
Security Type | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | ||||||||||||||||||
Corporate debt securities | $ | 48,170 | $ | 134 | $ | — | $ | — | $ | 48,170 | $ | 134 | ||||||||||||
Federal agency debt | 10,016 | 15 | — | — | 10,016 | 15 | ||||||||||||||||||
Foreign agency debt | 86,100 | 153 | — | — | 86,100 | 153 | ||||||||||||||||||
Foreign government obligations | 1,053 | — | — | — | 1,053 | — | ||||||||||||||||||
Supranational debt | 29,149 | 59 | — | — | 29,149 | 59 | ||||||||||||||||||
U.S. government obligations | 3,502 | 1 | — | — | 3,502 | 1 | ||||||||||||||||||
Total | $ | 177,990 | $ | 362 | $ | — | $ | — | $ | 177,990 | $ | 362 |
As of December 31, 2012 | ||||||||||||||||||||||||
In Loss Position for Less Than 12 Months | In Loss Position for 12 Months or Greater | Total | ||||||||||||||||||||||
Security Type | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | ||||||||||||||||||
Federal agency debt | $ | 524 | $ | 1 | $ | — | $ | — | $ | 524 | $ | 1 | ||||||||||||
Foreign agency debt | — | — | 5,970 | 33 | 5,970 | 33 | ||||||||||||||||||
Total | $ | 524 | $ | 1 | $ | 5,970 | $ | 33 | $ | 6,494 | $ | 34 |
June 30, 2013 | December 31, 2012 | |||||||
Restricted cash (1) | $ | 157 | $ | 184 | ||||
Restricted investments | 275,026 | 301,216 | ||||||
Restricted cash and investments | $ | 275,183 | $ | 301,400 |
(1) | There was $5.1 million of restricted cash included within prepaid expenses and other current assets at December 31, 2012 primarily related to required cash collateral for certain letters of credit provided for projects under development in foreign jurisdictions. |
As of June 30, 2013 | ||||||||||||||||
Security Type | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Foreign government obligations | $ | 189,780 | $ | 27,910 | $ | — | $ | 217,690 | ||||||||
U.S. government obligations | 54,626 | 3,559 | 849 | 57,336 | ||||||||||||
Total | $ | 244,406 | $ | 31,469 | $ | 849 | $ | 275,026 |
As of December 31, 2012 | ||||||||||||||||
Security Type | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Foreign government obligations | $ | 188,350 | $ | 47,921 | $ | — | $ | 236,271 | ||||||||
U.S. government obligations | 53,368 | 11,577 | — | 64,945 | ||||||||||||
Total | $ | 241,718 | $ | 59,498 | $ | — | $ | 301,216 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||
Basic net income (loss) per share | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) | $ | 33,598 | $ | 110,983 | $ | 92,740 | $ | (338,433 | ) | |||||||
Denominator: | ||||||||||||||||
Weighted-average common stock outstanding | 89,201 | 86,855 | 88,209 | 86,681 | ||||||||||||
Diluted net income (loss) per share | ||||||||||||||||
Denominator: | ||||||||||||||||
Weighted-average common stock outstanding | 89,201 | 86,855 | 88,209 | 86,681 | ||||||||||||
Effect of stock options, restricted and performance stock units, and stock purchase plan shares | 1,941 | 798 | 2,056 | — | ||||||||||||
Weighted-average shares used in computing diluted net income (loss) per share | 91,142 | 87,653 | 90,265 | 86,681 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||
Per share information — basic: | ||||||||||||||||
Net income (loss) per share | $ | 0.38 | $ | 1.28 | $ | 1.05 | $ | (3.90 | ) | |||||||
Per share information — diluted: | ||||||||||||||||
Net income (loss) per share | $ | 0.37 | $ | 1.27 | $ | 1.03 | $ | (3.90 | ) |
Three Months Ended | Six Months Ended | |||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||
Anti-dilutive shares | 91 | 3,681 | 107 | 2,324 |
June 30, 2013 | December 31, 2012 | |||||||
Accounts receivable trade, gross | $ | 202,109 | $ | 568,070 | ||||
Allowance for doubtful accounts | (9,529 | ) | (14,503 | ) | ||||
Accounts receivable trade, net | $ | 192,580 | $ | 553,567 |
June 30, 2013 | December 31, 2012 | |||||||
Accounts receivable, unbilled | $ | 222,636 | $ | 342,587 | ||||
Retainage | 237,802 | 58,400 | ||||||
Accounts receivable, unbilled and retainage | $ | 460,438 | $ | 400,987 |
June 30, 2013 | December 31, 2012 | |||||||
Raw materials | $ | 177,070 | $ | 184,006 | ||||
Work in process | 11,672 | 14,868 | ||||||
Finished goods (solar modules) | 278,187 | 370,422 | ||||||
Inventories | $ | 466,929 | $ | 569,296 | ||||
Inventories — current | $ | 334,261 | $ | 434,921 | ||||
Inventories — noncurrent (1) | $ | 132,668 | $ | 134,375 |
June 30, 2013 | December 31, 2012 | |||||||
Prepaid expenses | $ | 31,099 | $ | 39,582 | ||||
Derivative instruments | 3,079 | 7,230 | ||||||
Deferred costs of goods sold | 2,102 | 96,337 | ||||||
Other current assets | 80,887 | 64,219 | ||||||
Prepaid expenses and other current assets | $ | 117,167 | $ | 207,368 |
June 30, 2013 | December 31, 2012 | |||||||
Buildings and improvements | $ | 459,280 | $ | 446,133 | ||||
Machinery and equipment | 1,421,761 | 1,415,632 | ||||||
Office equipment and furniture | 123,553 | 117,228 | ||||||
Leasehold improvements | 47,230 | 49,367 | ||||||
Depreciable property, plant and equipment, gross | 2,051,824 | 2,028,360 | ||||||
Accumulated depreciation | (852,763 | ) | (803,501 | ) | ||||
Depreciable property, plant and equipment, net | 1,199,061 | 1,224,859 | ||||||
Land | 22,209 | 22,256 | ||||||
Construction in progress | 128,809 | 51,133 | ||||||
Stored assets (1) | 210,829 | 227,134 | ||||||
Property, plant and equipment, net | $ | 1,560,908 | $ | 1,525,382 |
(1) | Consists of machinery and equipment (“stored assets”) that were originally purchased for installation in our previously planned manufacturing capacity expansions. We intend to install and place the stored assets into service when such assets are required or beneficial to our existing installed manufacturing capacity or when market demand supports additional or market specific manufacturing capacity. As the stored assets are neither in the condition or location to produce modules as intended, we will not begin depreciation until such assets are placed into service. The stored assets are evaluated for impairment under a held and used impairment model whenever events or changes in business circumstances arise, including consideration of technological obsolescence, that may indicate that the carrying amount of the long-lived assets may not be recoverable. We ceased the capitalization of interest on such stored assets once they were physically received from the related machinery and equipment suppliers. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||
Interest cost incurred | $ | (3,167 | ) | $ | (9,318 | ) | $ | (6,442 | ) | $ | (16,050 | ) | ||||
Interest cost capitalized —– property, plant and equipment | 736 | 769 | 1,046 | 2,822 | ||||||||||||
Interest cost capitalized —– project assets | 1,556 | 1,177 | 3,771 | 4,936 | ||||||||||||
Interest expense, net | $ | (875 | ) | $ | (7,372 | ) | $ | (1,625 | ) | $ | (8,292 | ) |
June 30, 2013 | December 31, 2012 | |||||||
Project assets — land | $ | 810 | $ | 9,164 | ||||
Project assets — development costs including project acquisition costs | 251,835 | 157,489 | ||||||
Project assets — construction costs | 71,827 | 192,171 | ||||||
Project assets — projects in commercial operation under project PPAs | 205,283 | — | ||||||
Project assets | $ | 529,755 | $ | 358,824 | ||||
Deferred project costs — current | $ | 1,004,778 | $ | 21,390 | ||||
Deferred project costs — non-current | 29,396 | 486,654 | ||||||
Deferred project costs | 1,034,174 | $ | 508,044 | |||||
Total project assets and deferred project costs | $ | 1,563,929 | $ | 866,868 |
June 30, 2013 | December 31, 2012 | |||||||
Intangible assets, gross | $ | 48,939 | $ | 9,139 | ||||
Accumulated amortization | (5,700 | ) | (5,404 | ) | ||||
Intangible assets, net | $ | 43,239 | $ | 3,735 |
June 30, 2013 | December 31, 2012 | |||||||
Accrued compensation, benefits and severance | $ | 41,552 | $ | 105,677 | ||||
Accrued property, plant and equipment | 22,131 | 20,564 | ||||||
Accrued inventory and balance of systems parts | 55,910 | 52,408 | ||||||
Accrued project assets and deferred project costs | 85,989 | 76,133 | ||||||
Product warranty liability (Note 14) | 62,989 | 90,581 | ||||||
Accrued expenses in excess of normal product warranty liability and related expenses (1) | 64,252 | 75,020 | ||||||
Other accrued expenses | 58,941 | 134,050 | ||||||
Accrued expenses | $ | 391,764 | $ | 554,433 |
June 30, 2013 | December 31, 2012 | |||||||
Derivative instruments | $ | 4,759 | $ | 5,825 | ||||
Deferred tax liabilities | — | 2,226 | ||||||
Billings in excess of costs and estimated earnings (1) | 4,044 | 2,422 | ||||||
Other | 52,346 | 21,824 | ||||||
Other current liabilities | $ | 61,149 | $ | 32,297 |
June 30, 2013 | December 31, 2012 | |||||||
Product warranty liability | $ | 126,268 | $ | 101,015 | ||||
Other taxes payable | 117,542 | 102,599 | ||||||
Billings in excess of costs and estimated earnings (1) | 45,334 | 47,623 | ||||||
Other | 85,727 | 40,979 | ||||||
Other liabilities | $ | 374,871 | $ | 292,216 |
June 30, 2013 | ||||||||||||
Prepaid Expenses and Other Current Assets | Other Current Liabilities | Other Liabilities | ||||||||||
Derivatives designated as hedging instruments under ASC 815: | ||||||||||||
Cross-currency swap contract | $ | — | $ | 659 | $ | 2,965 | ||||||
Interest rate swap contracts | — | 369 | 591 | |||||||||
Total derivatives designated as hedging instruments | $ | — | $ | 1,028 | $ | 3,556 | ||||||
Derivatives not designated as hedging instruments under ASC 815: | ||||||||||||
Foreign exchange forward contracts | $ | 3,079 | $ | 3,731 | $ | — | ||||||
Total derivatives not designated as hedging instruments | $ | 3,079 | $ | 3,731 | $ | — | ||||||
Total derivative instruments | $ | 3,079 | $ | 4,759 | $ | 3,556 |
December 31, 2012 | ||||||||||||
Prepaid Expenses and Other Current Assets | Other Current Liabilities | Other Liabilities | ||||||||||
Derivatives designated as hedging instruments under ASC 815: | ||||||||||||
Foreign exchange forward contracts | $ | 2,121 | $ | — | $ | — | ||||||
Cross-currency swap contract | — | 316 | 1,582 | |||||||||
Interest rate swap contracts | — | 473 | 994 | |||||||||
Total derivatives designated as hedging instruments | $ | 2,121 | $ | 789 | $ | 2,576 | ||||||
Derivatives not designated as hedging instruments under ASC 815: | ||||||||||||
Foreign exchange forward contracts | $ | 5,109 | $ | 5,036 | $ | — | ||||||
Total derivatives not designated as hedging instruments | $ | 5,109 | $ | 5,036 | $ | — | ||||||
Total derivative instruments | $ | 7,230 | $ | 5,825 | $ | 2,576 |
June 30, 2013 | ||||||||||||||||||||
Gross Amounts Not Offset in Consolidated Balance Sheet | ||||||||||||||||||||
Gross Asset (Liability) | Gross Offset in Consolidated Balance Sheet | Net Amount Recognized in Financial Statements | Financial Instruments | Cash Collateral Pledged | Net Amount | |||||||||||||||
Cross-currency swap contracts | $ | (3,624 | ) | — | (3,624 | ) | — | — | $ | (3,624 | ) | |||||||||
Interest rate swap contracts | $ | (960 | ) | — | (960 | ) | — | — | $ | (960 | ) |
December 31, 2012 | ||||||||||||||||||||
Gross Amounts Not Offset in Consolidated Balance Sheet | ||||||||||||||||||||
Gross Asset (Liability) | Gross Offset in Consolidated Balance Sheet | Net Amount Recognized in Financial Statements | Financial Instruments | Cash Collateral Pledged | Net Amount | |||||||||||||||
Foreign exchange forward contracts | $ | 2,121 | — | 2,121 | — | — | $ | 2,121 | ||||||||||||
Cross-currency swap contracts | $ | (1,898 | ) | — | (1,898 | ) | — | — | $ | (1,898 | ) | |||||||||
Interest rate swap contracts | $ | (1,467 | ) | — | (1,467 | ) | — | — | $ | (1,467 | ) |
Foreign Exchange Forward Contracts | Interest Rate Swap Contract | Cross Currency Swap Contract | Total | |||||||||||||
Balance in other comprehensive income (loss) at December 31, 2012 | $ | 8,980 | $ | (1,467 | ) | $ | (8,031 | ) | $ | (518 | ) | |||||
Amounts recognized in other comprehensive income (loss) | 4,135 | 100 | (1,604 | ) | 2,631 | |||||||||||
Amounts reclassified to net sales as a result of forecasted transactions being probable of not occurring | (13,115 | ) | — | — | (13,115 | ) | ||||||||||
Amounts reclassified to earnings impacting: | ||||||||||||||||
Foreign currency gain | — | — | 1,974 | 1,974 | ||||||||||||
Interest expense | — | 209 | 85 | 294 | ||||||||||||
Balance in other comprehensive income (loss) at March 31, 2013 | $ | — | $ | (1,158 | ) | $ | (7,576 | ) | $ | (8,734 | ) | |||||
Amounts recognized in other comprehensive income (loss) | — | 2 | (313 | ) | (311 | ) | ||||||||||
Amounts reclassified to earnings impacting: | ||||||||||||||||
Foreign currency gain | — | — | 2,912 | 2,912 | ||||||||||||
Interest expense | — | 196 | 106 | 302 | ||||||||||||
Balance in other comprehensive income (loss) at June 30, 2013 | $ | — | $ | (960 | ) | $ | (4,871 | ) | $ | (5,831 | ) |
Foreign Exchange Forward Contracts | Interest Rate Swap Contracts | Cross Currency Swap Contract | Total | |||||||||||||
Balance in other comprehensive income (loss) at December 31, 2011 | $ | 33,751 | $ | (2,571 | ) | $ | (5,899 | ) | $ | 25,281 | ||||||
Amounts recognized in other comprehensive (loss) income | (11,341 | ) | (914 | ) | 4,347 | (7,908 | ) | |||||||||
Amounts reclassified to earnings impacting: | ||||||||||||||||
Net sales | (6,710 | ) | — | — | (6,710 | ) | ||||||||||
Foreign currency gain (loss) | — | — | (5,003 | ) | (5,003 | ) | ||||||||||
Interest expense | — | 244 | 71 | 315 | ||||||||||||
Balance in other comprehensive income (loss) at March 31, 2012 | $ | 15,700 | $ | (3,241 | ) | $ | (6,484 | ) | $ | 5,975 | ||||||
Amounts recognized in other comprehensive income (loss) | 5,825 | (334 | ) | (5,989 | ) | (498 | ) | |||||||||
Amounts reclassified to net sales as a result of forecasted transactions being probable of not occurring | (3,385 | ) | — | — | (3,385 | ) | ||||||||||
Amounts reclassified to earnings impacting: | ||||||||||||||||
Foreign currency gain (loss) | — | — | 5,382 | 5,382 | ||||||||||||
Interest expense | — | 2,084 | 131 | 2,215 | ||||||||||||
Balance in other comprehensive income (loss) at June 30, 2012 | $ | 18,140 | $ | (1,491 | ) | $ | (6,960 | ) | $ | 9,689 |
Amount of Gain (Loss) Recognized in Income on Derivatives | |||||||||||||||||
Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||||||||
Derivatives not designated as hedging instruments under ASC 815: | Location of Gain (Loss) Recognized in Income on Derivatives | June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | ||||||||||||
Foreign exchange forward contracts | Foreign currency gain (loss) | $ | 746 | $ | (8,877 | ) | $ | 1,863 | $ | (1,523 | ) | ||||||
Foreign exchange forward contracts | Cost of sales | $ | (685 | ) | $ | (1,546 | ) | $ | (773 | ) | $ | (738 | ) | ||||
Foreign exchange forward contracts | Net Sales | $ | 5,666 | $ | — | $ | 5,666 | $ | — |
December 31, 2012 | ||||
Currency | Notional Amount | USD Equivalent | ||
Canadian dollar | CAD 192.0 | $195.1 |
June 30, 2013 | ||||||
Transaction | Currency | Notional Amount | USD Equivalent | |||
Purchase | Euro | €167.5 | $218.3 | |||
Sell | Euro | €174.2 | $227.0 | |||
Purchase | Australian dollar | AUD 1.8 | $1.6 | |||
Sell | Australian dollar | AUD 1.8 | $1.6 | |||
Purchase | Malaysian ringgit | MYR 152.2 | $48.7 | |||
Sell | Malaysian ringgit | MYR 63.9 | $20.4 | |||
Purchase | Canadian dollar | CAD 2.7 | $2.6 | |||
Sell | Canadian dollar | CAD 198.6 | $188.7 | |||
Purchase | Chinese yuan | CNY 43.4 | $6.9 | |||
Sell | Chinese yuan | CNY 17.4 | $2.8 |
December 31, 2012 | ||||||
Transaction | Currency | Notional Amount | USD Equivalent | |||
Purchase | Euro | €128.7 | $170.2 | |||
Sell | Euro | €134.2 | $177.5 | |||
Sell | Australian dollar | AUD 8.5 | $8.8 | |||
Purchase | Malaysian ringgit | MYR 136.4 | $45.0 | |||
Sell | Malaysian ringgit | MYR 36.0 | $11.9 | |||
Purchase | Canadian dollar | CAD 22.4 | $22.6 | |||
Sell | Canadian dollar | CAD 15.8 | $16.0 |
• | Cash equivalents. At June 30, 2013 and December 31, 2012, our cash equivalents consisted of commercial paper and money market mutual funds. We value our commercial paper cash equivalents using 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 Level 2. We value our money market cash equivalents using observable inputs that reflect quoted prices for securities with identical characteristics, and accordingly, we classify the valuation techniques that use these inputs as Level 1. |
• | Marketable securities and restricted investments. At June 30, 2013 and December 31, 2012, our marketable securities consisted of commercial paper, corporate debt securities, federal and foreign agency debt, foreign government obligations, supranational debt and U.S. government obligations, and our restricted investments consisted of foreign and U.S. government obligations. We value our marketable securities and restricted investments using quoted prices for securities with similar characteristics and other observable inputs (such as interest rates that are observable at commonly quoted intervals), and accordingly, we classify the valuation techniques that use these inputs as Level 2. We also consider the effect of our counterparties’ credit standings in these fair value measurements. |
• | Derivative assets and liabilities. At June 30, 2013 and December 31, 2012, our derivative assets and liabilities consisted of foreign exchange forward contracts involving major currencies, interest rate swap contracts involving a benchmark of interest rates, and a cross-currency swap including both. Since our derivative assets and liabilities are not traded on an exchange, we value them using industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, credit risk, foreign exchange rates, and forward and spot prices for currencies. These inputs are observable in active markets over the contract term of the derivative instruments we hold, and accordingly, we classify these valuation techniques as Level 2. We consider the effect of our own credit standing and that of our counterparties in our fair value measurements of our derivative assets and liabilities, respectively. |
As of June 30, 2013 | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Total Fair Value and Carrying Value on Our Balance Sheet | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Commercial paper | $ | 3,199 | $ | — | $ | 3,199 | $ | — | ||||||||
Money market funds | 43,367 | 43,367 | — | — | ||||||||||||
Marketable securities: | ||||||||||||||||
Commercial paper | 5,097 | — | 5,097 | — | ||||||||||||
Corporate debt securities | 137,704 | — | 137,704 | — | ||||||||||||
Federal agency debt | 25,813 | — | 25,813 | — | ||||||||||||
Foreign agency debt | 110,641 | — | 110,641 | — | ||||||||||||
Foreign government obligations | 26,191 | — | 26,191 | — | ||||||||||||
Supranational debt | 47,673 | — | 47,673 | — | ||||||||||||
U.S. government obligations | 3,496 | — | 3,496 | — | ||||||||||||
Restricted investments (excluding restricted cash) | 275,026 | — | 275,026 | — | ||||||||||||
Derivative assets | 3,079 | — | 3,079 | — | ||||||||||||
Total assets | $ | 681,286 | $ | 43,367 | $ | 637,919 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | $ | 8,315 | $ | — | $ | 8,315 | $ | — |
As of December 31, 2012 | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Total Fair Value and Carrying Value on Our Balance Sheet | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Commercial paper | $ | 1,500 | $ | — | $ | 1,500 | $ | — | ||||||||
Money market funds | 10,729 | 10,729 | — | — | ||||||||||||
Marketable securities: | ||||||||||||||||
Commercial paper | 1,698 | — | 1,698 | — | ||||||||||||
Corporate debt securities | 23,384 | — | 23,384 | — | ||||||||||||
Federal agency debt | 29,936 | — | 29,936 | — | ||||||||||||
Foreign agency debt | 7,233 | — | 7,233 | — | ||||||||||||
Foreign government obligations | 4,142 | — | 4,142 | — | ||||||||||||
Supranational debt | 34,181 | — | 34,181 | — | ||||||||||||
U.S. government obligations | 2,004 | — | 2,004 | — | ||||||||||||
Restricted investments (excluding restricted cash) | 301,216 | — | 301,216 | — | ||||||||||||
Derivative assets | 7,230 | — | 7,230 | — | ||||||||||||
Total assets | $ | 423,253 | $ | 10,729 | $ | 412,524 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | $ | 8,401 | $ | — | $ | 8,401 | $ | — |
June 30, 2013 | December 31, 2012 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Assets: | ||||||||||||||||
Marketable securities | $ | 356,615 | $ | 356,615 | $ | 102,578 | $ | 102,578 | ||||||||
Foreign exchange forward contract assets | $ | 3,079 | $ | 3,079 | $ | 7,230 | $ | 7,230 | ||||||||
Restricted investments (excluding restricted cash) | $ | 275,026 | $ | 275,026 | $ | 301,216 | $ | 301,216 | ||||||||
Note receivable, affiliate | $ | — | $ | — | $ | 17,725 | $ | 17,723 | ||||||||
Notes receivable — noncurrent | $ | 9,121 | $ | 9,029 | $ | 9,260 | $ | 9,371 | ||||||||
Liabilities: | ||||||||||||||||
Long-term debt, including current maturities | $ | 255,764 | $ | 257,748 | $ | 562,572 | $ | 565,879 | ||||||||
Interest rate swap contract liabilities | $ | 960 | $ | 960 | $ | 1,467 | $ | 1,467 | ||||||||
Cross-currency swap contract liabilities | $ | 3,624 | $ | 3,624 | $ | 1,898 | $ | 1,898 | ||||||||
Foreign exchange forward contract liabilities | $ | 3,731 | $ | 3,731 | $ | 5,036 | $ | 5,036 |
Balance (USD) | ||||||||||||
Loan Agreement | Maturity | Loan Denomination | June 30, 2013 | December 31, 2012 | ||||||||
Revolving Credit Facility (1) | July 2018 (Tranche A) October 2015 (Tranche B) | USD | $ | — | $ | 270,000 | ||||||
Malaysian Ringgit Facility Agreement | September 2018 | MYR | 134,873 | 151,901 | ||||||||
Malaysian Euro Facility Agreement | April 2018 | EUR | 52,166 | 58,255 | ||||||||
Malaysian Facility Agreement | March 2016 | EUR | 65,020 | 78,657 | ||||||||
Director of Development of the State of Ohio | May 2015 | USD | 3,608 | 4,527 | ||||||||
Capital lease obligations | various | various | 2,271 | 1,955 | ||||||||
Long-term debt principal | $ | 257,938 | $ | 565,295 | ||||||||
Less unamortized discount | (2,174 | ) | (2,723 | ) | ||||||||
Total long-term debt | $ | 255,764 | $ | 562,572 | ||||||||
Less current portion | (61,194 | ) | (62,349 | ) | ||||||||
Noncurrent portion | $ | 194,570 | $ | 500,223 |
Loan Agreement | Borrowing Rate at June 30, 2013 | |
Revolving Credit Facility | 4.50% | |
Malaysian Ringgit Facility Agreement | KLIBOR plus 2.00% (2) | |
Malaysian Euro Facility Agreement | EURIBOR plus 1.00% | |
Malaysian Facility Agreement (1) | Fixed rate facility at 4.54% | |
Floating rate facility at EURIBOR plus 0.55% (2) | ||
Director of Development of the State of Ohio | 2.25% | |
Capital lease obligations | Various |
(1) | Outstanding balance split equally between fixed and floating rates. |
(2) | Interest rate hedges have been entered into relating to these variable rates. See Note 11. “Derivative Financial Instruments,” to our condensed consolidated financial statements. |
Remainder of 2013 | $ | 29,871 | ||
2014 | 61,690 | |||
2015 | 60,602 | |||
2016 | 37,972 | |||
2017 | 35,300 | |||
Thereafter | 30,232 | |||
Total long-term debt future payments | $ | 255,667 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||
Product warranty liability, beginning of period | $ | 185,630 | $ | 179,454 | $ | 191,596 | $ | 157,742 | ||||||||
Accruals for new warranties issued | 7,916 | 7,636 | 18,449 | 11,613 | ||||||||||||
Settlements | (8,447 | ) | (10,894 | ) | (19,410 | ) | (16,597 | ) | ||||||||
Changes in estimate of product warranty liability (1) | 4,158 | 5,693 | (1,378 | ) | 29,131 | |||||||||||
Product warranty liability, end of period | $ | 189,257 | $ | 181,889 | $ | 189,257 | $ | 181,889 | ||||||||
Current portion of warranty liability | $ | 62,989 | $ | 97,779 | $ | 62,989 | $ | 97,779 | ||||||||
Noncurrent portion of warranty liability | $ | 126,268 | $ | 84,110 | $ | 126,268 | $ | 84,110 |
(1) | Changes in estimate of product warranty liability during the six months ended June 30, 2012 includes increases to our best estimate of $22.6 million partially related to a net increase in the expected number of replacement modules required for certain remediation efforts related to the manufacturing excursion that occurred between June 2008 and June 2009. Such estimated increase was primarily due to the completion of the analysis on certain outstanding claims as of December 31, 2011. Additionally, the remaining increase was primarily related to a change in estimate for the market value of the modules that we estimated would be returned to us under the voluntary remediation efforts that would meet the required performance standards to be re-sold as refurbished modules. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||
Share-based compensation expense included in: | ||||||||||||||||
Cost of sales | $ | 1,307 | $ | 2,337 | $ | 5,823 | $ | 10,595 | ||||||||
Research and development | 988 | 914 | 2,921 | 4,135 | ||||||||||||
Selling, general and administrative | 5,207 | (19,419 | ) | 14,926 | (8,123 | ) | ||||||||||
Production start-up | (72 | ) | (822 | ) | 248 | (169 | ) | |||||||||
Restructuring | — | 329 | — | 495 | ||||||||||||
Total share-based compensation expense | $ | 7,430 | $ | (16,661 | ) | $ | 23,918 | $ | 6,933 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||
Stock options | $ | — | $ | 33 | $ | — | $ | 264 | ||||||||
Restricted and performance stock units | 7,244 | (15,054 | ) | 25,680 | 8,958 | |||||||||||
Unrestricted stock | 300 | 186 | 600 | 361 | ||||||||||||
Stock purchase plan | 235 | 136 | 472 | 371 | ||||||||||||
Net amount absorbed into inventory | (349 | ) | (1,962 | ) | (2,834 | ) | (3,021 | ) | ||||||||
Total share-based compensation expense | $ | 7,430 | $ | (16,661 | ) | $ | 23,918 | $ | 6,933 |
Three Months Ended | ||||||||
June 30, 2013 | June 30, 2012 | |||||||
Net income | $ | 33,598 | $ | 110,983 | ||||
Other comprehensive income (loss), net of tax: | ||||||||
Foreign currency translation adjustments | 1,500 | (9,795 | ) | |||||
Unrealized gain (loss) on marketable securities and restricted investments for the period (net of tax of $1,307 and $(1,447), respectively) | (17,029 | ) | 12,629 | |||||
Less: reclassification for (gains) losses included in net income (loss) (net of tax of $0 and $0, respectively) | — | (3 | ) | |||||
Unrealized gain (loss) on marketable securities and restricted investments | (17,029 | ) | 12,626 | |||||
Unrealized gain (loss) on derivative instruments for the period (net of tax of $5 and $(1,145) , respectively) | (305 | ) | (1,644 | ) | ||||
Less: reclassification for (gains) losses included in net income (net of tax of $0 and $17, respectively) | 3,214 | 4,229 | ||||||
Unrealized gain (loss) on derivative instruments | 2,909 | 2,585 | ||||||
Other comprehensive income (loss), net of tax | (12,620 | ) | 5,416 | |||||
Comprehensive income (loss) | $ | 20,978 | $ | 116,399 |
Six Months Ended | ||||||||
June 30, 2013 | June 30, 2012 | |||||||
Net income (loss) | $ | 92,740 | $ | (338,433 | ) | |||
Other comprehensive income (loss), net of tax: | ||||||||
Foreign currency translation adjustments | (1,577 | ) | 3,714 | |||||
Unrealized gain (loss) on marketable securities and restricted investments for the period (net of tax of $2,241 and $(711), respectively) | (27,370 | ) | 8,578 | |||||
Less: reclassification for (gains) losses included in net income (loss) (net of tax of $0 and $0, respectively) | — | (16 | ) | |||||
Unrealized gain (loss) on marketable securities and restricted investments | (27,370 | ) | 8,562 | |||||
Unrealized gain (loss) on derivative instruments for the period (net of tax of $(1,101) and $1,104, respectively) | 1,220 | (7,303 | ) | |||||
Less: reclassification for (gains) losses included in net income (loss) (net of tax of $3,476 and $1,774, respectively) | (4,157 | ) | (5,412 | ) | ||||
Unrealized gain (loss) on derivative instruments | (2,937 | ) | (12,715 | ) | ||||
Other comprehensive income (loss), net of tax | (31,884 | ) | (439 | ) | ||||
Comprehensive income (loss) | $ | 60,856 | $ | (338,872 | ) |
Components of Comprehensive Income (Loss) | Foreign Currency Translation Adjustment | Unrealized Gain (Loss) on Marketable Securities | Unrealized Gain (Loss) on Derivative Instruments | Total | ||||||||||||
Balance as of December 31, 2012 | $ | (38,485 | ) | $ | 51,243 | $ | (2,579 | ) | $ | 10,179 | ||||||
Other comprehensive income (loss) before reclassifications | (1,577 | ) | (27,370 | ) | 1,220 | (27,727 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | (4,157 | ) | (4,157 | ) | ||||||||||
Net other comprehensive income (loss) for the period | (1,577 | ) | (27,370 | ) | (2,937 | ) | (31,884 | ) | ||||||||
Balance as of June 30, 2013 | $ | (40,062 | ) | $ | 23,873 | $ | (5,516 | ) | $ | (21,705 | ) |
Details of Accumulated Other Comprehensive Income (Loss) | Amount Reclassified | Income Statement Line Item | ||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, 2013 | June 30, 2013 | |||||||||
Gains and (losses) on derivative contracts | ||||||||||
Foreign Exchange Forward Contracts | $ | — | $ | 13,115 | Net sales | |||||
Interest Rate and Cross Currency Swap Contracts | (302 | ) | (596 | ) | Interest expense | |||||
Cross Currency Swap Contracts | (2,912 | ) | (4,886 | ) | Foreign currency gain (loss) | |||||
(3,214 | ) | 7,633 | Total before tax | |||||||
— | 3,476 | Tax expense | ||||||||
$ | (3,214 | ) | $ | 4,157 | Total net of tax |
Components of Comprehensive Income (Loss) | Foreign Currency Translation Adjustment | Unrealized Gain (Loss) on Marketable Securities | Unrealized Gain (Loss) on Derivative Instruments | Total | ||||||||||||
Balance as of December 31, 2011 | $ | (48,381 | ) | $ | 24,431 | $ | 18,913 | $ | (5,037 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 3,714 | 8,578 | (7,303 | ) | 4,989 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (16 | ) | (5,412 | ) | (5,428 | ) | |||||||||
Net other comprehensive income (loss) for the period | 3,714 | 8,562 | (12,715 | ) | (439 | ) | ||||||||||
Balance as of June 30, 2012 | $ | (44,667 | ) | $ | 32,993 | $ | 6,198 | $ | (5,476 | ) |
Details of Accumulated Other Comprehensive Income (Loss) | Amount Reclassified | Income Statement Line Item | ||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, 2012 | June 30, 2012 | |||||||||
Gains and (losses) on marketable securities and restricted investments | ||||||||||
$ | 3 | $ | 16 | Other income (expense), net | ||||||
— | — | Tax expense | ||||||||
3 | 16 | Total net of tax | ||||||||
Gains and (losses) on derivative contracts | ||||||||||
Foreign Exchange Forward Contracts | 3,385 | 10,095 | Net sales | |||||||
Interest Rate and Cross Currency Swap Contracts | (2,215 | ) | (2,530 | ) | Interest expense | |||||
Cross Currency Swap Contract | (5,382 | ) | (379 | ) | Foreign currency gain (loss) | |||||
(4,212 | ) | 7,186 | Total before tax | |||||||
17 | 1,774 | Tax expense | ||||||||
$ | (4,229 | ) | $ | 5,412 | Total net of tax |
Six Months Ended | ||||||||
June 30, 2013 | June 30, 2012 | |||||||
Net income (loss) | $ | 92,740 | $ | (338,433 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 116,084 | 138,229 | ||||||
Impairment and loss (gain) on disposal of long-lived assets | 4,300 | 350,213 | ||||||
Impairment of project assets | — | 3,227 | ||||||
Share-based compensation | 23,918 | 6,933 | ||||||
Remeasurement of monetary assets and liabilities | (6,935 | ) | (561 | ) | ||||
Deferred income taxes | (7,769 | ) | 4,896 | |||||
Excess tax benefit from share-based compensation arrangements | (55,695 | ) | (66,853 | ) | ||||
Provision for doubtful accounts receivable | — | 2,260 | ||||||
Gain on sales of marketable securities, and restricted investments, net | — | (16 | ) | |||||
Other operating activities | (2,903 | ) | 18 | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, trade and unbilled and retainage | 341,357 | 114,592 | ||||||
Prepaid expenses and other current assets | 93,438 | 94,214 | ||||||
Other assets | 449 | 83,977 | ||||||
Inventories and balance of systems parts | 75,120 | (280,027 | ) | |||||
Project assets and deferred project costs | (670,456 | ) | 82,412 | |||||
Accounts payable | (129,314 | ) | 28,018 | |||||
Income taxes payable | 28,256 | 37,959 | ||||||
Accrued expenses and other liabilities | 350,203 | 132,350 | ||||||
Accrued solar module collection and recycling liability | 36,035 | 18,927 | ||||||
Total adjustments | 196,088 | 750,768 | ||||||
Net cash provided by operating activities | $ | 288,828 | $ | 412,335 |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
June 30, 2013 | June 30, 2012 | |||||||||||||||||||||||
Components | Systems | Total | Components | Systems | Total | |||||||||||||||||||
Net sales | $ | 192,908 | $ | 326,852 | $ | 519,760 | $ | 287,681 | $ | 669,651 | $ | 957,332 | ||||||||||||
Gross profit | $ | (8,193 | ) | $ | 148,291 | $ | 140,098 | $ | (10,352 | ) | $ | 254,093 | $ | 243,741 | ||||||||||
(Loss) income before income taxes | $ | (67,348 | ) | $ | 108,410 | $ | 41,062 | $ | (92,917 | ) | $ | 228,264 | $ | 135,347 | ||||||||||
Goodwill | $ | 6,097 | $ | 68,833 | $ | 74,930 | $ | — | $ | 65,444 | $ | 65,444 | ||||||||||||
Total assets | $ | 4,140,842 | $ | 2,727,284 | $ | 6,868,126 | $ | 3,565,152 | $ | 1,922,182 | $ | 5,487,334 | ||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, 2013 | June 30, 2012 | |||||||||||||||||||||||
Components | Systems | Total | Components | Systems | Total | |||||||||||||||||||
Net sales | $ | 549,504 | $ | 725,461 | $ | 1,274,965 | $ | 455,811 | $ | 998,576 | $ | 1,454,387 | ||||||||||||
Gross profit | $ | 3,416 | $ | 306,008 | $ | 309,424 | $ | (32,811 | ) | $ | 353,297 | $ | 320,486 | |||||||||||
(Loss) income before income taxes | $ | (116,886 | ) | $ | 224,137 | $ | 107,251 | $ | (606,371 | ) | $ | 285,232 | $ | (321,139 | ) | |||||||||
Goodwill | $ | 6,097 | $ | 68,833 | $ | 74,930 | $ | — | $ | 65,444 | $ | 65,444 | ||||||||||||
Total assets | $ | 4,140,842 | $ | 2,727,284 | $ | 6,868,126 | $ | 3,565,152 | $ | 1,922,182 | $ | 5,487,334 |
Three Months Ended | Six Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | ||||||||||||
Solar module revenue | $ | 81,304 | $ | 54,598 | $ | 274,554 | $ | 122,007 | ||||||||
Solar power system revenue | 438,456 | 902,734 | 1,000,411 | 1,332,380 | ||||||||||||
Net sales | $ | 519,760 | $ | 957,332 | $ | 1,274,965 | $ | 1,454,387 |
• | During project development, we obtain land and land rights for the development of PV solar power systems incorporating our modules, negotiate long-term power purchase agreements (“PPA”) with potential purchasers of the electricity to be generated by those plants or develop plants in regulated markets where feed-in-tariff (“FiT”) or similar structures are in place, manage the interconnection and transmission process, negotiate agreements to interconnect the systems to the electricity grid, and obtain the permits which are required prior to the construction of the PV solar power systems, including applicable environmental and land use permits. We also buy projects in various stages of development and continue developing those projects with system designs incorporating our own modules. We sell developed PV solar power systems to system operators who wish to own generating facilities, such as utilities, or to investors who are looking for long-term investment vehicles that are expected to generate consistent returns. |
• | We provide EPC services to projects developed by us, to projects developed by independent solar power project developers, and directly to system owners such as utilities. EPC products and services include engineering design and related services, BoS procurement, advanced development of grid integration solutions, and construction contracting and management. Depending on the customer and market need, we may provide our full EPC services or any combination of individual products and services within our EPC capabilities. An example of such combination of individual services would be |
• | We have a comprehensive O&M service offering with multiple PV solar power systems in operation. Utilizing a state of the art Global Operations Center, located in Mesa, Arizona, our team of O&M experts provide comprehensive services including North America Electric Reliability Corporation (“NERC”) compliance, energy forecasting, 24/7 monitoring and control, PPA and Large Generator Interconnection Agreement (“LGIA”) compliance, performance engineering analysis, turn-key maintenance services including spare parts and breakdown repair, and environmental services. |
• | Our project finance group is primarily responsible for negotiating and executing the sale of PV solar power systems incorporating our modules which allows us to optimize the value of our project development portfolio. This group is experienced in arranging for and structuring financing for projects incorporating our modules including non-recourse project debt financing in the bank loan market and debt capital markets and project equity capital from tax oriented and strategic industry equity investors. |
Project/Location | Project Size in MW AC (1) | Power Purchase Agreement (“PPA”) | Third Party Owner/Purchaser | Expected Year Revenue Recognition Will Be Completed By | |
Topaz, California | 550 | PG&E | MidAmerican | 2014 | |
Desert Sunlight, California | 550 | PG&E / SCE | NextEra / GE / Sumitomo | 2014 | |
Agua Caliente, Arizona | 290 | PG&E | NRG / MidAmerican | 2013 | |
AVSR, California | 230 | PG&E | Exelon | 2013/2014 | |
AGL, Australia | 155 | AGL | AGL (2) (7) | 2015 | |
Campo Verde, California | 139 | SDG&E | Southern | 2013 | |
Imperial Energy Center South, California | 130 | SDG&E | Tenaska (2) | 2013 | |
Copper Mountain 2, Nevada | 58 | PG&E | Sempra (2) | 2015(3) | |
Amherstburg 1, Belmont, and Walpole (“ABW”), Ontario, Canada | 50 | OPA (5) | GE/ Alterra | 2013 | |
PNM2, New Mexico | 22 | UOG(4) | PNM(2) | 2013 | |
DEWA, UAE | 13 | DEWA | DEWA(2) | 2013 | |
Total | 2,187 |
Project/Location | Project Size in MW AC (1) | Power Purchase Agreement (PPA) | Expected Year Revenue Recognition Will Be Completed By | |
Solar Gen 2, California | 150 | SDG&E | 2014 | |
Macho Springs, New Mexico | 50 | El Paso Electric | 2014 | |
Lost Hills, California | 32 | PG&E | 2015 (8) | |
Maryland Solar, Maryland | 20 | FE Solutions | 2013 | |
Total | 252 |
Project/Location | Project Size in MW AC (1) | Power Purchase Agreement (“PPA”) | Expected Year Revenue Recognition Will Be Completed By | |
Stateline, California | 300 | SCE | 2016 | |
Silver State South, Nevada | 250 | SCE | 2016 | |
North Star, California | 60 | PG&E | 2015 | |
Cuyama, California | 40 | PG&E | 2015/2016 (6) | |
PNM3, New Mexico | 23 | UOG (2) (4) | 2014 | |
Total | 673 |
(1) | The volume of modules installed in MW DC (“direct current”) will be higher than the MW AC (“alternating current”) size pursuant to a DC-AC ratio typically ranging from 1.2 to 1.4. Such ratio varies across different projects due to various system design factors |
(2) | EPC contract or partner developed project |
(3) | First 92 MW AC phase was completed in 2012. Remaining phase is 58 MW AC for which substantial completion is expected in 2015 |
(4) | UOG = Utility Owned Generation |
(5) | OPA = Ontario Power Authority RESOP program |
(6) | PPA term does not begin until 2019 |
(7) | First Solar will own five percent of projects |
(8) | Project has short-term PPA that begins in 2015 with PG&E PPA beginning in 2019 |
Three Months Ended | Six Months Ended | |||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||
Cost of sales | 73.0 | % | 74.5 | % | 75.7 | % | 78.0 | % | ||||
Gross profit | 27.0 | % | 25.5 | % | 24.3 | % | 22.0 | % | ||||
Research and development | 6.0 | % | 3.4 | % | 4.8 | % | 4.7 | % | ||||
Selling, general and administrative | 12.7 | % | 5.5 | % | 11.0 | % | 9.9 | % | ||||
Production start-up | 0.3 | % | 0.1 | % | 0.2 | % | 0.3 | % | ||||
Restructuring | 0.5 | % | 2.0 | % | 0.4 | % | 28.9 | % | ||||
Operating income (loss) | 7.5 | % | 14.6 | % | 7.9 | % | (21.8 | )% | ||||
Foreign currency (loss) gain | (0.2 | )% | 0.1 | % | — | % | — | % | ||||
Interest income | 0.7 | % | 0.4 | % | 0.7 | % | 0.4 | % | ||||
Interest expense, net | (0.2 | )% | (0.8 | )% | (0.1 | )% | (0.6 | )% | ||||
Other income (expense), net | 0.1 | % | (0.1 | )% | — | % | (0.2 | )% | ||||
Income tax expense | 1.4 | % | 2.5 | % | 1.1 | % | 1.2 | % | ||||
Net income (loss) | 6.5 | % | 11.6 | % | 7.3 | % | (23.3 | )% |
Three Months Ended | Six Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | ||||||||||||
Solar module revenue | $ | 81,304 | $ | 54,598 | $ | 274,554 | $ | 122,007 | ||||||||
Solar power system revenue | 438,456 | 902,734 | 1,000,411 | 1,332,380 | ||||||||||||
Net sales | $ | 519,760 | $ | 957,332 | $ | 1,274,965 | $ | 1,454,387 |
Three Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Three Month Period Change | ||||||||||||
Net Sales | |||||||||||||||
Components | $ | 192,908 | $ | 287,681 | $ | (94,773 | ) | (33 | )% | ||||||
Systems | 326,852 | 669,651 | (342,799 | ) | (51 | )% | |||||||||
Total Net sales | $ | 519,760 | $ | 957,332 | $ | (437,572 | ) | (46 | )% |
Three Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Three Month Period Change | ||||||||||||
Cost of Sales | |||||||||||||||
Components | $ | 201,101 | $ | 298,033 | $ | (96,932 | ) | (33 | )% | ||||||
Systems | 178,561 | 415,558 | (236,997 | ) | (57 | )% | |||||||||
Total Cost of Sales | $ | 379,662 | $ | 713,591 | $ | (333,929 | ) | (47 | )% | ||||||
% of net sales | 73.0 | % | 74.5 | % |
Three Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Three Month Period Change | ||||||||||||
Gross profit | $ | 140,098 | $ | 243,741 | $ | (103,643 | ) | (43 | )% | ||||||
% of net sales | 27.0 | % | 25.5 | % |
Three Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Three Month Period Change | ||||||||||||
Research and development | $ | 30,964 | $ | 32,365 | $ | (1,401 | ) | (4 | )% | ||||||
% of net sales | 6.0 | % | 3.4 | % |
Three Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Three Month Period Change | ||||||||||||
Selling, general and administrative | $ | 66,265 | $ | 52,184 | $ | 14,081 | 27 | % | |||||||
% of net sales | 12.7 | % | 5.5 | % |
Three Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Three Month Period Change | ||||||||||||
Production start-up | $ | 1,392 | $ | 533 | $ | 859 | 161 | % | |||||||
% of net sales | 0.3 | % | 0.1 | % |
Three Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Three Month Period Change | ||||||||||||
Restructuring | $ | 2,381 | $ | 19,000 | $ | (16,619 | ) | (87 | )% | ||||||
% of net sales | 0.5 | % | 2.0 | % |
Three Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Three Month Period Change | ||||||||||||
Foreign currency (loss) gain | $ | (1,068 | ) | $ | 1,015 | $ | (2,083 | ) | 205 | % |
Three Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Three Month Period Change | ||||||||||||
Interest income | $ | 3,405 | $ | 3,379 | $ | 26 | 1 | % |
Three Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Three Month Period Change | ||||||||||||
Interest expense, net | $ | (875 | ) | $ | (7,372 | ) | $ | 6,497 | (88 | )% |
Three Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Three Month Period Change | ||||||||||||
Other income (expense), net | $ | 504 | $ | (1,334 | ) | $ | 1,838 | (138 | )% |
Three Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Three Month Period Change | ||||||||||||
Income (loss) before income taxes | |||||||||||||||
Components | $ | (67,348 | ) | $ | (92,917 | ) | $ | 25,569 | (28 | )% | |||||
Systems | 108,410 | 228,264 | (119,854 | ) | (53 | )% | |||||||||
Total income (loss) before income taxes | $ | 41,062 | $ | 135,347 | $ | (94,285 | ) | (70 | )% |
Three Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Three Month Period Change | ||||||||||||
Income tax expense | $ | 7,464 | $ | 24,364 | $ | (16,900 | ) | (69 | )% | ||||||
Effective tax rate | 18.2 | % | 18.0 | % |
Six Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Six Month Period Change | ||||||||||||
Net Sales | |||||||||||||||
Components | $ | 549,504 | $ | 455,811 | $ | 93,693 | 21 | % | |||||||
Systems | 725,461 | 998,576 | (273,115 | ) | (27 | )% | |||||||||
Total Net sales | $ | 1,274,965 | $ | 1,454,387 | $ | (179,422 | ) | (12 | )% |
Six Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Six Month Period Change | ||||||||||||
Cost of Sales | |||||||||||||||
Components | $ | 546,088 | $ | 488,622 | $ | 57,466 | 12 | % | |||||||
Systems | 419,453 | 645,279 | (225,826 | ) | (35 | )% | |||||||||
Total Cost of Sales | $ | 965,541 | $ | 1,133,901 | $ | (168,360 | ) | (15 | )% | ||||||
% of net sales | 75.7 | % | 78.0 | % |
Six Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Six Month Period Change | ||||||||||||
Gross profit | $ | 309,424 | $ | 320,486 | $ | (11,062 | ) | (3 | )% | ||||||
% of net sales | 24.3 | % | 22.0 | % |
Six Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Six Month Period Change | ||||||||||||
Research and development | $ | 60,895 | $ | 68,449 | $ | (7,554 | ) | (11 | )% | ||||||
% of net sales | 4.8 | % | 4.7 | % |
Six Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Six Month Period Change | ||||||||||||
Selling, general and administrative | $ | 140,730 | $ | 144,004 | $ | (3,274 | ) | (2 | )% | ||||||
% of net sales | 11.0 | % | 9.9 | % |
Six Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Six Month Period Change | ||||||||||||
Production start-up | $ | 2,768 | $ | 4,591 | $ | (1,823 | ) | (40 | )% | ||||||
% of net sales | 0.2 | % | 0.3 | % |
Six Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Six Month Period Change | ||||||||||||
Restructuring | $ | 4,728 | $ | 420,065 | $ | (415,337 | ) | (99 | )% | ||||||
% of net sales | 0.4 | % | 28.9 | % |
Six Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Six Month Period Change | ||||||||||||
Foreign currency (loss) gain | $ | 550 | $ | 31 | $ | 519 | 1,674 | % |
Six Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Six Month Period Change | ||||||||||||
Interest income | $ | 8,352 | $ | 6,290 | $ | 2,062 | 33 | % |
Six Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Six Month Period Change | ||||||||||||
Interest expense, net | $ | (1,625 | ) | $ | (8,292 | ) | $ | 6,667 | (80 | )% |
Six Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Six Month Period Change | ||||||||||||
Other income (expense), net | $ | (329 | ) | $ | (2,545 | ) | $ | 2,216 | (87 | )% |
Six Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Six Month Period Change | ||||||||||||
Income (loss) before income taxes | |||||||||||||||
Components | $ | (116,886 | ) | $ | (606,371 | ) | $ | 489,485 | (81 | )% | |||||
Systems | 224,137 | 285,232 | (61,095 | ) | (21 | )% | |||||||||
Total income (loss) before income taxes | $ | 107,251 | $ | (321,139 | ) | $ | 428,390 | (133 | )% |
Six Months Ended | |||||||||||||||
(Dollars in thousands) | June 30, 2013 | June 30, 2012 | Six Month Period Change | ||||||||||||
Income tax expense | $ | 14,511 | $ | 17,294 | $ | (2,783 | ) | (16 | )% | ||||||
Effective tax rate | 13.5 | % | (5.4 | )% |
• | The amount of accounts receivable, unbilled as of June 30, 2013 was $222.6 million and primarily represented revenues recognized on the construction work performed on systems projects in advance of billing the customer under the terms of the underlying construction contracts. Such construction costs have been funded with working capital and the unbilled amounts are expected to be billed and collected from customers during the next twelve months. Additionally, as of June 30, 2013, we had $237.8 million of current and $237.6 million of noncurrent retainage, which represents the portion of a systems project contract price earned by us for work performed, but held for payment by our customer as a form of security until we reach certain construction milestones. Such retainage amounts relate to construction costs already incurred and construction work already performed. |
• | The amount of finished goods inventory (“solar module inventory”) and BoS parts as of June 30, 2013 was $406.6 million. As we continue with the construction of our advanced-stage project pipeline we must produce solar modules and procure BoS parts in the required volumes to support our planned construction schedules. As part of the normal construction cycle, we typically must manufacture modules or acquire the necessary BoS parts for construction activities in advance of receiving payment for such materials. Once solar modules and BoS parts are installed in a project, such installed amounts are classified as either project assets, deferred project costs, or cost of sales depending upon whether the project is subject to a definitive sales contract and whether all revenue recognition criteria have been met. Accordingly, as of any balance sheet date, our solar module inventory represents solar modules that will be installed in our advanced-stage project pipeline or that we expect to sell to third parties. |
• | We expect to commit working capital during the remainder of 2013 and beyond to acquire solar power projects in various stages of development including advance-stage projects with PPAs and continue developing those projects as necessary. Depending upon the size and stage of development, costs to acquire such solar power projects could be significant. When evaluating project acquisition opportunities, we consider both the strategic and financial benefits of any such acquisitions. |
• | In connection with the execution of our LTSP, we expect joint ventures or other business arrangements with strategic partners to be a key part of our strategy. We have begun initiatives in several markets to expedite our penetration of those markets and establish relationships with potential strategic partners, customers, and policymakers. Many of these business arrangements are expected to involve a significant cash investment or other allocation of working capital that could reduce our liquidity or requires us to pursue additional sources of financing, assuming such sources are available to us. Additionally, in order to execute our LTSP in such markets, we have elected, and may in the future elect or be required to temporarily retain a minority or non-controlling ownership interest in the underlying systems projects we develop, supply modules to, or construct. Any such retained ownership interest is expected to impact our liquidity to the extent we do not obtain new sources of capital to fund such investments. |
• | Our restructuring initiatives are expected to result in total remaining cash payments of up to $13 million. Such cash payments are primarily related to severance costs for reductions in force as a result of such restructuring initiatives. |
• | In connection with our LTSP, we may elect to undertake future restructuring actions as we continue to align our manufacturing production capacity with market demand, evaluate our cost structure and identify potential cost savings opportunities, and focus our resources on developing target sustainable markets. We may in the future incur additional restructuring costs, which may be significant (including potentially the repayment of debt facilities and other amounts, |
• | During the remainder of 2013, we expect to spend up to $230 million for capital expenditures, primarily related to expenditures for improvements and enhancements to existing machinery and equipment, which we believe will increase our solar module efficiencies. A majority of our remaining capital expenditures for 2013 will be incurred in foreign currencies and are therefore subject to fluctuations in currency exchange rates. |
• | Under the sales agreements for a limited number of our solar power projects, we may be required to rescind the sale of such projects if certain events occur, such as not achieving commercial operation of the project within a certain time frame. Although we consider the possibility that we would be required to rescind the sale of any of our solar power projects to be remote, our current working capital and other available sources of liquidity may not be sufficient to make any required payments. If we are required to rescind the sale of a solar power project, we would have the ability to market and sell such project at then current market pricing, which could be at a lower than expected price to the extent the event requiring a rescission impacts the project’s marketability or related tax benefits. Our liquidity may also be impacted as the time between the rescission of the sale for a project and the potential sale of such project could take several months. Alternatively, we may determine that the most economically attractive solution for any such project is for us to own and operate the project, which would have a longer term impact on our liquidity compared to the sale of a project. |
Six Months Ended | ||||||||
June 30, 2013 | June 30, 2012 | |||||||
Net cash provided by operating activities | $ | 288,828 | $ | 412,335 | ||||
Net cash used in investing activities | (437,620 | ) | (301,303 | ) | ||||
Net cash provided by (used in) financing activities | 177,221 | (85,906 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (1,066 | ) | (505 | ) | ||||
Net increase in cash and cash equivalents | $ | 27,363 | $ | 24,621 |
Exhibit Number | Exhibit Description |
4.1 | Second Amendment to the Malaysian Euro Facility Agreement |
10.1 | Amendment to Change in Control Severance Agreement |
31.01 | Certification of Chief Executive Officer pursuant to 15 U.S.C. Section 7241, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
31.02 | Certification of Chief Financial Officer pursuant to 15 U.S.C. Section 7241, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
32.01* | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | XBRL Taxonomy Label Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
* | This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in any filings. |
FIRST SOLAR, INC. |
By: /s/ MARK R. WIDMAR |
Mark R. Widmar |
Principal Accounting Officer |
Original Lenders | Commerzbank Aktiengesellschaft | Natixis Zweigniederlassung Deutschland | Total |
Commitment in respect of | EUR 40,000,000.00 | EUR 20,000,000.00 | EUR 60,000,000.00 |
Facility I | EUR 18,119,067.33 | EUR 9,059,533.67 | EUR 27,178,601.00 |
Facility II | EUR 21,290,621.33 | EUR 10,645,310.67 | EUR 31,935,932.00 |
Facility III | EUR 590,311.34 | EUR 295,155.66 | EUR 885,467.00 |
/s/ David Brady |
Name: David Brady |
/s/ Andreas Kappenberg | /s/ Anton Rotenhan | |
Name: Andreas Kappenberg | Name: Anton Rotenhan |
/s/ Gerald Kolodziej | /s/ Jörn Tschentscher | |
Name: Gerald Kolodziej | Name: Jörn Tschentscher |
/s/ Erik Mehdorn | /s/ Eva Gottschalk-Schmitt | |
Name: Erik Mehdorn | Name: Eva Gottschalk-Schmitt |
/s/ Michael Brüggemann | /s/ Julia Friske | |
Name: Michael Brüggemann | Name: Julia Friske |
/s/ David Brady |
Name: David Brady |
1. | Notwithstanding the definition of “Change in Control” provided in the CIC Agreement, the occurrence of any of the events specified in such definition shall only constitute a “Change in Control” for purposes of the CIC Agreement if such event constitutes, as applicable, a change in ownership or effective control of a corporation or a change in ownership of a substantial portion of the assets of a corporation within the meaning of Treasury Regulation Section 1.409A-3(i)(5). |
2. | Notwithstanding Section 4(a)(i) and 4(a)(iii) of the CIC Agreement, in the event of a Qualifying Termination described in clause (iii) of the definition thereof (i.e., certain terminations without Cause prior to a Change in Control), (A) the severance payment described in Section 4(a)(i) of the CIC Agreement shall be reduced by the aggregate amount of any Severance Payments (within the meaning of the Employment Agreement) paid or payable to the Executive pursuant to the Employment Agreement (for the avoidance of doubt, nothing herein or in the CIC Agreement shall waive or alter the payment terms of any Severance Payments payable pursuant to the Employment Agreement) and (B) the 18-month period described in Section 4(a)(iii) shall be reduced by the period of time that the Executive receives any benefits pursuant to Section 1.5(c) of the Employment Agreement. |
3. | To the extent required by Section 409A, any payment or benefit pursuant to the CIC Agreement that would be considered deferred compensation subject to, and not exempt from, Section 409A, payable or provided upon a termination of the Executive's employment shall only be paid or provided to the Executive upon the Executive's separation from service (within the meaning of Section 409A). |
4. | Except as provided above, the CIC Agreement shall remain in full force and effect. |
by: | |
Name: Carol Campbell | |
Title: EVP, Human Resources |
[NAME] |
1 | I have reviewed the Quarterly Report on Form 10-Q of First Solar, Inc., a Delaware corporation, for the period ended June 30, 2013, as filed with the Securities and Exchange Commission; |
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3 | Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of and for, the periods presented in this report; |
4 | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5 | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 7, 2013 | /s/ JAMES A. HUGHES | |
James A. Hughes | |||
Chief Executive Officer |
1 | I have reviewed the Quarterly Report on Form 10-Q of First Solar, Inc., a Delaware corporation, for the period ended June 30, 2013, as filed with the Securities and Exchange Commission; |
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3 | Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of and for, the periods presented in this report; |
4 | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5 | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 7, 2013 | /s/ MARK R. WIDMAR | |
Mark R. Widmar | |||
Chief Financial Officer |
(1 | ) | the quarterly report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and | |||||||
(2 | ) | the information contained in the quarterly report fairly presents, in all material respects, the financial condition and results of operations of First Solar, Inc. for the periods presented therein. | |||||||
Date: | August 7, 2013 | /s/ JAMES A. HUGHES | |||||||
James A. Hughes | |||||||||
Chief Executive Officer | |||||||||
Date: | August 7, 2013 | /s/ MARK R. WIDMAR | |||||||
Mark R. Widmar | |||||||||
Chief Financial Officer | |||||||||
Note 11. Derivative Financial Instruments
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Jun. 30, 2013
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | 11. Derivative Financial Instruments As a global company, we are exposed in the normal course of business to interest rate and foreign currency risks that could affect our consolidated net assets, financial position, results of operations, and cash flows. We use derivative instruments to hedge against certain risks such as these, and we only hold derivative 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. As required by ASC 815, Derivatives and Hedging, we report all of our derivative instruments that are within the scope of that accounting standard at fair value. We account for changes in the fair value of derivative instruments within accumulated other comprehensive income (loss) if the derivative instruments qualify for hedge accounting under ASC 815. For those derivative instruments that do not qualify for hedge accounting (“economic hedges”), we record the changes in fair value directly to earnings. See Note 12. “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 value of derivative instruments included in our condensed consolidated balance sheets as of June 30, 2013 and December 31, 2012 (in thousands):
The impact of offsetting balances associated with derivative instruments designated as hedging instruments under ASC 815 is shown below (in thousands):
The following tables present the amounts related to derivative instruments designated as cash flow hedges under ASC 815 affecting accumulated other comprehensive income (loss) and our condensed consolidated statements of operations for the three and six months ended June 30, 2013 and June 30, 2012 (in thousands):
We recorded immaterial amounts related to ineffective portions of our derivative instruments designated as cash flow hedges during the six months ended June 30, 2013 and June 30, 2012 directly to other income (expense), net. In addition, we recognized losses of $0.4 million related to amounts excluded from effectiveness testing for our foreign exchange forward contracts designated as cash flow hedges within other income (expense), net during the three and six months ended June 30, 2013, respectively. We recognized gains of $2.2 million and $1.9 million related to amounts excluded from effectiveness testing for our foreign exchange forward contracts designated as cash flow hedges within other income (expense), net during the three and six months ended and June 30, 2012, respectively. The following table presents the amounts related to derivative instruments not designated as cash flow hedges under ASC 815 affecting our condensed consolidated statements of operations for the three and six months ended June 30, 2013 and June 30, 2012 (in thousands):
Interest Rate Risk We use cross-currency swap and interest rate swap contracts to mitigate our exposure to interest rate fluctuations associated with certain of our debt instruments; we do not use such swap contracts for speculative or trading purposes. On September 30, 2011, we entered into a cross-currency swap contract to hedge the floating rate foreign currency denominated loan under our Malaysian Ringgit Facility Agreement. This swap had an initial notional value of MYR 465.0 million and entitles us to receive a three-month floating Kuala Lumpur Interbank Offered Rate (“KLIBOR”) interest rate, and requires us to pay a fixed U.S. dollar rate of 3.495%. Additionally, this swap hedges the foreign currency risk of the Malaysian Ringgit denominated principal and interest payments as we make swap payments in U.S. dollars and receive swap payments in Malaysian Ringgits at a fixed exchange rate 3.19 MYR to USD. The notional amount of the swap is scheduled to decline in correspondence to our scheduled principal payments on the underlying hedged debt. As of June 30, 2013 and December 31, 2012, the notional value of this cross-currency swap agreement was MYR 426.3 million and MYR 465.0 million, respectively. This swap is a derivative instrument that qualifies for accounting as a cash flow hedge in accordance with ASC 815 and we designated it as such. We determined that this swap was highly effective as a cash flow hedge at June 30, 2013 and December 31, 2012. For the three and six months ended June 30, 2013 and June 30, 2012, there were immaterial amounts of ineffectiveness from this cash flow hedge. On May 29, 2009, we entered into an interest rate swap contract to hedge a portion of the floating rate loans under our Malaysian Credit Facility, which became effective on September 30, 2009 with an initial notional value of €57.3 million and pursuant to which we are entitled to receive a six-month floating Euro Interbank Offered Rate (“EURIBOR”) interest rate, and are required to pay a fixed rate of 2.80%. The notional amount of the interest rate swap contract is scheduled to decline in correspondence to our scheduled principal payments on the underlying hedged debt. As of June 30, 2013 and December 31, 2012, the notional value of this interest rate swap contract was €24.4 million and €29.1 million, respectively. This derivative instrument qualifies for accounting as a cash flow hedge in accordance with ASC 815, and we designated it as such. We determined that our interest rate swap contract was highly effective as a cash flow hedge at June 30, 2013 and December 31, 2012. For the three and six months ended June 30, 2013 and June 30, 2012, there were immaterial amounts of ineffectiveness from this cash flow hedge. In the following 12 months, we expect to reclassify to earnings $1.0 million of net unrealized losses related to swap contracts that are included in accumulated other comprehensive income (loss) at June 30, 2013 as we realize the earnings effect of the underlying loans. The amount we ultimately record to earnings will depend on the actual interest rates and foreign exchange rate when we realize the earnings effect of the underlying loans. Foreign Currency Exchange Risk Cash Flow Exposure We expect many of the subsidiaries of our business to have material future cash flows, including net sales and expenses that will be denominated in currencies other than the subsidiaries’ functional currency. Our primary cash flow exposures are net sales and expenses. Changes in the exchange rates between our subsidiaries’ functional currency and the other currencies in which they transact will cause fluctuations in the cash flows we expect to receive or pay when these cash flows are realized or settled. Accordingly, we enter into foreign exchange forward contracts to hedge a portion of these forecasted cash flows. As of December 31, 2012, these foreign exchange forward contracts hedged our forecasted cash flows for up to 3 months. These foreign exchange forward contracts qualify for accounting as cash flow hedges in accordance with ASC 815, and we designated them as such. We initially report the effective portion of the derivative’s unrealized gain or loss in accumulated other comprehensive income (loss) and subsequently reclassify amounts into earnings when the hedged transaction occurs and impacts earnings. We determined that these derivative financial instruments were highly effective as cash flow hedges at December 31, 2012. During the six months ended June 30, 2013 and June 30, 2012, we did not discontinue any cash flow hedges because a hedging relationship was no longer highly effective. As of June 30, 2013 there were no longer any outstanding foreign exchange forward contracts qualifying as cash flow hedges. As of December 31, 2012, the notional values associated with our foreign exchange forward contracts qualifying as cash flow hedges were as follows (notional amounts and U.S. dollar equivalents in millions):
As of December 31, 2012, the net unrealized gain on these contracts was $9.0 million. Transaction Exposure and Economic Hedging Many subsidiaries of our business have assets and liabilities (primarily receivables, marketable securities and investments, accounts payable, 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 our subsidiaries’ functional currencies and the other currencies in which these assets and liabilities are denominated can create fluctuations in our reported condensed consolidated statements of operations, and cash flows. We may enter into foreign exchange forward contracts or other financial instruments to economically hedge assets and liabilities against the effects of currency exchange rate fluctuations. The gains and losses on the foreign exchange forward contracts will economically offset all or part of the transaction gains and losses that we recognize in earnings on the related foreign currency denominated assets and liabilities. We purchase foreign exchange forward contracts to economically hedge balance sheet and other exposures related to transactions with third parties. Such contracts are considered economic hedges and do not qualify for hedge accounting under ASC 815. We recognize gains or losses from the fluctuation in foreign exchange rates and the fair value of these derivative contracts in “Net sales”, “Cost of sales”, and “Foreign currency gain (loss)” on our condensed consolidated statements of operations, depending on where the gain or loss from the economically hedged item is classified on our condensed consolidated statements of operations. As of June 30, 2013 the total net unrealized loss on our economic hedge foreign exchange forward contracts was $0.6 million. As of December 31, 2012 the total net unrealized gain on our economic hedge foreign exchange forward contracts was $0.1 million. As these amounts do not qualify for hedge accounting, changes in fair value related to such derivative instruments are recorded directly to earnings. These contracts have maturities of less than six months. As of June 30, 2013 and December 31, 2012, the notional values of our foreign exchange forward contracts that do not qualify for hedge accounting under ASC 815 were as follows (notional amounts and U.S. dollar equivalents in millions):
The table above includes certain foreign exchange forward contracts originally designated as cash flow hedges that were subsequently de-designated.
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Note 11. Derivative Financial Instruments (Details) - Transaction Exposure (Foreign Exchange Forward [Member], Not Designated as Hedging Instrument [Member])
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||
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Jun. 30, 2013
Euro Member Countries, Euro
USD ($)
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Jun. 30, 2013
Euro Member Countries, Euro
EUR (€)
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Dec. 31, 2012
Euro Member Countries, Euro
USD ($)
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Dec. 31, 2012
Euro Member Countries, Euro
EUR (€)
|
Jun. 30, 2013
Australia, Dollars
USD ($)
|
Jun. 30, 2013
Australia, Dollars
AUD
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Dec. 31, 2012
Australia, Dollars
USD ($)
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Dec. 31, 2012
Australia, Dollars
AUD
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Jun. 30, 2013
Malaysia, Ringgits
USD ($)
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Jun. 30, 2013
Malaysia, Ringgits
MYR
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Dec. 31, 2012
Malaysia, Ringgits
USD ($)
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Dec. 31, 2012
Malaysia, Ringgits
MYR
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Jun. 30, 2013
Canada, Dollars
USD ($)
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Jun. 30, 2013
Canada, Dollars
CAD
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Dec. 31, 2012
Canada, Dollars
USD ($)
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Dec. 31, 2012
Canada, Dollars
CAD
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Jun. 30, 2013
China, Yuan Renminbi
USD ($)
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Jun. 30, 2013
China, Yuan Renminbi
CNY
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Derivative [Line Items] | ||||||||||||||||||
Derivative, currency bought | Euro | Euro | Euro | Euro | Australian dollar | Australian dollar | Malaysian ringgit | Malaysian ringgit | Malaysian ringgit | Malaysian ringgit | Canadian dollar | Canadian dollar | Canadian dollar | Canadian dollar | Chinese yuan | Chinese yuan | ||
Notional amount of foreign currency derivative purchase contracts | $ 218.3 | € 167.5 | $ 170.2 | € 128.7 | $ 1.6 | 1.8 | $ 48.7 | 152.2 | $ 45.0 | 136.4 | $ 2.6 | 2.7 | $ 22.6 | 22.4 | $ 6.9 | 43.4 | ||
Derivative, currency sold | Euro | Euro | Euro | Euro | Australian dollar | Australian dollar | Australian dollar | Australian dollar | Malaysian ringgit | Malaysian ringgit | Malaysian ringgit | Malaysian ringgit | Canadian dollar | Canadian dollar | Canadian dollar | Canadian dollar | Chinese yuan | Chinese yuan |
Notional amount of foreign currency derivative sale contracts | $ 227.0 | € 174.2 | $ 177.5 | € 134.2 | $ 1.6 | 1.8 | $ 8.8 | 8.5 | $ 20.4 | 63.9 | $ 11.9 | 36.0 | $ 188.7 | 198.6 | $ 16.0 | 15.8 | $ 2.8 | 17.4 |
Note 4. Restructuring
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Jun. 30, 2013
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring | 4. Restructuring The activity related to our restructuring charges for material restructuring initiatives that were not completed as of December 31, 2012 are as follows: February 2012 Manufacturing Restructuring In February 2012, executive management completed an evaluation of and approved a set of manufacturing capacity and other initiatives primarily intended to adjust our previously planned manufacturing capacity expansions and global manufacturing footprint. The primary goal of these initiatives was to better align production capacity and geographic location of such capacity with expected geographic market requirements and demand. The remaining $5.1 million of asset impairment related charges from the February 2012 manufacturing restructuring as of December 31, 2012 is included within other liabilities and such amount is not expected to be paid within the next year. April 2012 European Restructuring In April 2012, executive management approved a set of restructuring initiatives intended to align the organization with our Long Term Strategic Plan including expected sustainable market opportunities and to reduce costs. As part of these initiatives, we substantially reduced our European operations including the closure of our manufacturing operations in Frankfurt (Oder), Germany at the end of 2012. Due to the then current lack of policy support for utility-scale solar projects in Europe at that time, we did not believe there was a business case for continuing manufacturing operations in Germany or to proceed with the previously announced 2-line plant in France. Additionally, we substantially reduced the size of our operations in Mainz, Germany and elsewhere in Europe. After the closure of our Frankfurt (Oder) manufacturing operations, which was comprised of eight production lines, at the end of 2012, First Solar’s installed manufacturing capacity consists of 24 production lines in Kulim, Malaysia and four production lines in Perrysburg, Ohio. In connection with these restructuring initiatives, we incurred total charges to operating expense during 2012 of $342.0 million and $4.7 million in the six months ended June 30, 2013. These total charges consisted of (i) $253.0 million in asset impairments and asset impairment related charges, primarily related to the closure of the Frankfurt (Oder) plants; (ii) $63.2 million in severance and termination related costs; and (iii) $30.5 million for the required repayment of German government grants related to the second Frankfurt (Oder) plant. The following table summarizes the April 2012 European restructuring amounts remaining as of December 31, 2012, amounts recorded to restructuring expense during the three and six months ended June 30, 2013, and the remaining balance at June 30, 2013 (in thousands):
Expenses recognized for restructuring activities are presented in “Restructuring” on the condensed consolidated statements of operations. Substantially all expenses related to the April 2012 European restructuring were related to our components segment. We expect to incur up to $1 million in additional restructuring expense through the end of 2013 primarily related to remaining asset impairment and related costs associated with such restructuring initiatives. |
Note 18. Statement of Cash Flows
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Statement of Cash Flows [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement of Cash Flows | 18. Statement of Cash Flows The following table presents a reconciliation of net income (loss) to net cash provided by operating activities for the six months ended June 30, 2013 and June 30, 2012 (in thousands):
|
Note 13. Debt (Details) (USD $)
|
6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
Jun. 30, 2013
Capital Lease Obligations [Member]
|
Dec. 31, 2012
Capital Lease Obligations [Member]
|
Jun. 30, 2013
Capital Lease Obligations [Member]
|
Jun. 30, 2013
Revolving Credit Facility [Member]
|
Jun. 30, 2013
Revolving Credit Facility [Member]
Line of Credit [Member]
|
Dec. 31, 2012
Revolving Credit Facility [Member]
Line of Credit [Member]
|
Jun. 30, 2013
Malaysian Euro Facility Agreement [Member]
|
Jun. 30, 2013
Malaysian Euro Facility Agreement [Member]
Line of Credit [Member]
|
Dec. 31, 2012
Malaysian Euro Facility Agreement [Member]
Line of Credit [Member]
|
Jun. 30, 2013
Malaysian Facility Agreement [Member]
|
Jun. 30, 2013
Malaysian Facility Agreement [Member]
Line of Credit [Member]
|
Dec. 31, 2012
Malaysian Facility Agreement [Member]
Line of Credit [Member]
|
Jun. 30, 2013
Malaysian Ringgit Facility Agreement [Member]
|
Jun. 30, 2013
Malaysian Ringgit Facility Agreement [Member]
Line of Credit [Member]
|
Dec. 31, 2012
Malaysian Ringgit Facility Agreement [Member]
Line of Credit [Member]
|
Jun. 30, 2013
Director of Development of the State of Ohio [Member]
|
Jun. 30, 2013
Director of Development of the State of Ohio [Member]
Loans Payable [Member]
|
Dec. 31, 2012
Director of Development of the State of Ohio [Member]
Loans Payable [Member]
|
Jun. 30, 2013
Letter of Credit [Member]
Revolving Credit Facility [Member]
|
|||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 750,000,000 | ||||||||||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 600,000,000 | 600,000,000 | |||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity Alternative Currencies | 300,000,000 | ||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 29,871,000 | ||||||||||||||||||||||||||
Line of credit facility, amount outstanding | 0 | ||||||||||||||||||||||||||
Letters of Credit Outstanding, Amount | 153,900,000 | ||||||||||||||||||||||||||
Debt Instrument, Maturity Date, Description | various | July 2018 (Tranche A) October 2015 (Tranche B) | April 2018 | March 2016 | September 2018 | May 2015 | |||||||||||||||||||||
Debt Instrument, Currency | various | USD | EUR | EUR | MYR | USD | |||||||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | .045 | EURIBOR plus 1.00% | Floating rate facility at EURIBOR plus 0.55% (2) | [1],[2] | KLIBOR plus 2.00% (2) | [2] | |||||||||||||||||||||
Long-term Debt [Abstract] | |||||||||||||||||||||||||||
Long-term debt | 257,938,000 | 565,295,000 | 2,271,000 | 1,955,000 | 0 | 270,000,000 | 52,166,000 | 58,255,000 | 65,020,000 | 78,657,000 | 134,873,000 | 151,901,000 | 3,608,000 | 4,527,000 | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.54% | [1] | 2.25% | ||||||||||||||||||||||||
Less unamortized discount | (2,174,000) | (2,723,000) | |||||||||||||||||||||||||
Total long-term debt | 255,764,000 | 562,572,000 | |||||||||||||||||||||||||
Less current portion | (61,194,000) | (62,349,000) | |||||||||||||||||||||||||
Noncurrent portion | 194,570,000 | 500,223,000 | |||||||||||||||||||||||||
Line of credit facility, remaining borrowing capacity | 446,100,000 | ||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 61,690,000 | ||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 60,602,000 | ||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 37,972,000 | ||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 35,300,000 | ||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 30,232,000 | ||||||||||||||||||||||||||
Long Term Debt Excluding Capital Lease Obligation | 255,667,000 | ||||||||||||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | ||||||||||||||||||||||||||
fronting fee | 0.125% | ||||||||||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity, Tranche A | 450,000,000 | ||||||||||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity, Tranche B | 150,000,000 | ||||||||||||||||||||||||||
Line of Credit Facility, Assets Pledged As Collateral, Amount | $ 71,900,000 | $ 235,900,000 | $ 18,100,000 | ||||||||||||||||||||||||
|
Note 12. Fair Value Measurements
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Disclosure | 12. 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:
At June 30, 2013 and December 31, 2012, the fair value measurements of our assets and liabilities that we measure on a recurring basis were as follows (in thousands):
Fair Value of Financial Instruments The carrying values and fair values of our financial and derivative instruments at June 30, 2013 and December 31, 2012 were as follows (in thousands):
The carrying values on our condensed consolidated balance sheets of our cash and cash equivalents, trade accounts receivable, unbilled accounts receivable and retainage, other assets, restricted cash, accounts payable, income taxes payable, and accrued expenses approximate their fair values due to their nature and relatively short maturities; therefore, we exclude them from the foregoing table. We estimated the fair value of our long-term debt and notes receivable in accordance with ASC 820 using a discounted cash flows approach (an income approach) using market based observable inputs. We incorporated the credit risk of our counterparty for all asset fair value measurements and our credit risk for all liability fair value measurements. Such fair value measurements are considered Level 2 under the fair value hierarchy. Credit Risk We have certain financial and derivative instruments that subject us to credit risk. These consist primarily of cash, cash equivalents, marketable securities, restricted investments, interest rate swap and cross-currency swap contracts, and foreign exchange forward contracts. We are exposed to credit losses in the event of nonperformance by the counterparties to our financial and derivative instruments. We place cash, cash equivalents, marketable securities, restricted investments, interest rate swap and cross-currency swap contracts, and foreign exchange forward contracts with various high-quality financial institutions and limit the amount of credit risk from any one counterparty. We continuously evaluate the credit standing of our counterparty financial institutions. |
Note 9. Consolidated Balance Sheet Details (Details)
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3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
USD ($)
|
Jun. 30, 2012
USD ($)
|
Jun. 30, 2013
USD ($)
|
Jun. 30, 2013
EUR (€)
|
Jun. 30, 2012
USD ($)
|
Mar. 31, 2013
USD ($)
|
Dec. 31, 2012
USD ($)
|
Jun. 30, 2013
Property, Plant And Equipment [Member]
USD ($)
|
Jun. 30, 2012
Property, Plant And Equipment [Member]
USD ($)
|
Jun. 30, 2013
Property, Plant And Equipment [Member]
USD ($)
|
Jun. 30, 2012
Property, Plant And Equipment [Member]
USD ($)
|
Jun. 30, 2013
Project Assets And Deferred Project Costs [Member]
USD ($)
|
Jun. 30, 2012
Project Assets And Deferred Project Costs [Member]
USD ($)
|
Jun. 30, 2013
Project Assets And Deferred Project Costs [Member]
USD ($)
|
Jun. 30, 2012
Project Assets And Deferred Project Costs [Member]
USD ($)
|
Jun. 30, 2013
Depreciable Assets [Member]
USD ($)
|
Jun. 30, 2012
Depreciable Assets [Member]
USD ($)
|
Jun. 30, 2013
Depreciable Assets [Member]
USD ($)
|
Jun. 30, 2012
Depreciable Assets [Member]
USD ($)
|
Dec. 31, 2012
Depreciable Assets [Member]
USD ($)
|
Jun. 30, 2013
Building and Building Improvements [Member]
USD ($)
|
Dec. 31, 2012
Building and Building Improvements [Member]
USD ($)
|
Jun. 30, 2013
Machinery and Equipment [Member]
USD ($)
|
Dec. 31, 2012
Machinery and Equipment [Member]
USD ($)
|
Jun. 30, 2013
Office equipment and furniture [Member]
USD ($)
|
Dec. 31, 2012
Office equipment and furniture [Member]
USD ($)
|
Jun. 30, 2013
Leasehold Improvements [Member]
USD ($)
|
Dec. 31, 2012
Leasehold Improvements [Member]
USD ($)
|
Jun. 30, 2013
Land [Member]
USD ($)
|
Dec. 31, 2012
Land [Member]
USD ($)
|
Jun. 30, 2013
Construction in Progress [Member]
USD ($)
|
Dec. 31, 2012
Construction in Progress [Member]
USD ($)
|
Jun. 30, 2013
Stored Machinery and Equipment [Member]
USD ($)
|
Dec. 31, 2012
Stored Machinery and Equipment [Member]
USD ($)
|
Jun. 30, 2013
Credit Facility Agreement [Member]
EUR (€)
|
Apr. 08, 2009
Credit Facility Agreement [Member]
EUR (€)
|
Jan. 31, 2012
Property Company [Member]
|
Mar. 31, 2013
Property Company [Member]
Unsecured Loan Agreement [Member]
EUR (€)
|
Jun. 30, 2013
Property Company [Member]
Unsecured Loan Agreement [Member]
|
|||||||||||||||
Intangible Assets, Gross | $ 48,939,000 | $ 48,939,000 | $ 9,139,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable trade, net: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable trade, gross | 202,109,000 | 202,109,000 | 568,070,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | (9,529,000) | (9,529,000) | (14,503,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable trade, net | 192,580,000 | 192,580,000 | 553,567,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Accounts Receivables | 51,600,000 | 51,600,000 | 104,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Unbilled | 222,636,000 | 222,636,000 | 342,587,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Retainage | 237,802,000 | 237,802,000 | 58,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Unbilled and Retainage | 460,438,000 | 460,438,000 | 400,987,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Raw materials | 177,070,000 | 177,070,000 | 184,006,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Work in process | 11,672,000 | 11,672,000 | 14,868,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Finished goods | 278,187,000 | 278,187,000 | 370,422,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total inventories | 466,929,000 | 466,929,000 | 569,296,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories - current | 334,261,000 | 334,261,000 | 434,921,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories - noncurrent | 132,668,000 | [1] | 132,668,000 | [1] | 134,375,000 | [1] | |||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other current assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses | 31,099,000 | 31,099,000 | 39,582,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative instruments | 3,079,000 | 3,079,000 | 7,230,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Current | 2,102,000 | 2,102,000 | 96,337,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets - current | 80,887,000 | 80,887,000 | 64,219,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other current assets | 117,167,000 | 117,167,000 | 207,368,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment, net: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment, gross | 2,051,824,000 | 2,051,824,000 | 2,028,360,000 | 459,280,000 | 446,133,000 | 1,421,761,000 | 1,415,632,000 | 123,553,000 | 117,228,000 | 47,230,000 | 49,367,000 | 22,209,000 | 22,256,000 | 128,809,000 | 51,133,000 | 210,829,000 | [2] | 227,134,000 | [2] | ||||||||||||||||||||||||||||||||||
Accumulated depreciation | (852,763,000) | (852,763,000) | (803,501,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment, net | 1,560,908,000 | 1,560,908,000 | 1,525,382,000 | 1,199,061,000 | 1,199,061,000 | 1,224,859,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Depreciation | 57,800,000 | 64,000,000 | 116,000,000 | 136,600,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest Costs Incurred [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost incurred | (3,167,000) | (9,318,000) | (6,442,000) | (16,050,000) | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest costs, capitalized during period | 736,000 | 769,000 | 1,046,000 | 2,822,000 | 1,556,000 | 1,177,000 | 3,771,000 | 4,936,000 | |||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | (875,000) | (7,372,000) | (1,625,000) | (8,292,000) | |||||||||||||||||||||||||||||||||||||||||||||||||
Project Assets - Noncurrent: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Project assets - land | 810,000 | 810,000 | 9,164,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Project assets - development costs | 251,835,000 | 251,835,000 | 157,489,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Project assets - construction costs | 71,827,000 | 71,827,000 | 192,171,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
project assets, completed projects, noncurrent | 205,283,000 | 205,283,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Project Assets Noncurrent | 529,755,000 | 529,755,000 | 358,824,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Project Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Project Costs, Current | 1,004,778,000 | 1,004,778,000 | 21,390,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Project Costs, Noncurrent | 29,396,000 | 29,396,000 | 486,654,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total deferred project costs | 1,034,174,000 | 1,034,174,000 | 508,044,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Note Receivable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes receivable initial available amount | 17,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Note receivable, percentage bearing fixed interest rate | 8.00% | 6.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, maturity date | Dec. 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes receivable balance included in other assets | 7,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee-related Liabilities, Current | 41,552,000 | 41,552,000 | 105,677,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued property, plant, and equipment | 22,131,000 | 22,131,000 | 20,564,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued inventory and balance of system parts | 55,910,000 | 55,910,000 | 52,408,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Project Assets and Deferred Project Costs | 85,989,000 | 85,989,000 | 76,133,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Product warranty liability | 62,989,000 | 62,989,000 | 90,581,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued expenses in excess of normal product warranty liability and related expenses | 64,252,000 | [3] | 64,252,000 | [3] | 75,020,000 | [3] | |||||||||||||||||||||||||||||||||||||||||||||||
Other accrued expenses | 58,941,000 | 58,941,000 | 134,050,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued expenses | 391,764,000 | 391,764,000 | 554,433,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other current liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative instruments | 4,759,000 | 4,759,000 | 5,825,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred tax liabilities | 0 | 0 | 2,226,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Billings in Excess of Cost, Current | 4,044,000 | [4] | 4,044,000 | [4] | 2,422,000 | [4] | |||||||||||||||||||||||||||||||||||||||||||||||
Payments and billings for deferred project costs | 1,116,670,000 | 1,116,670,000 | 94,535,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities - current | 52,346,000 | 52,346,000 | 21,824,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other current liabilities | 61,149,000 | 61,149,000 | 32,297,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Product warranty liability | 126,268,000 | 101,015,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other taxes payable | 117,542,000 | 102,599,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Billings in Excess of Cost, Noncurrent | 45,334,000 | [4] | 47,623,000 | [4] | |||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities, Noncurrent | 85,727,000 | 40,979,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 374,871,000 | 374,871,000 | 374,871,000 | 292,216,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of Economic Development Funding | 6,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage by Third Party | 50.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Note receivable affiliate | 0 | 0 | 17,725,000 | 13,400,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
total project assets and deferred project costs | 1,563,929,000 | 1,563,929,000 | 866,868,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Interest Received | 3,724,000 | 2,970,000 | 1,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, Accumulated Amortization | (5,700,000) | (5,700,000) | (5,404,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, Net | $ 43,239,000 | $ 43,239,000 | $ 3,735,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
Note 14. Commitments and Contingencies (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
|
---|---|
Line of Credit Facility [Line Items] | |
Surety Bonds | $ 40.8 |
Foreign Subsidiaries [Member]
|
|
Line of Credit Facility [Line Items] | |
Line of credit facility, amount outstanding | 40.1 |
Revolving Credit Facility [Member]
|
|
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | 600.0 |
Line of credit facility, amount outstanding | 0 |
Line of credit facility, remaining borrowing capacity | 446.1 |
Revolving Credit Facility [Member] | Letter of Credit [Member]
|
|
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | 600.0 |
Letters of Credit Outstanding, Amount | $ 153.9 |
Note 17. Comprehensive Income (Loss) (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Comprehensive Income (Loss) Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Comprehensive Income (Loss) [Table Text Block] | Comprehensive income (loss), which includes foreign currency translation adjustments, unrealized gains and losses on available-for-sale securities, and unrealized gains and losses on derivative instruments designated and qualifying as cash flow hedges, the impact of which, has been excluded from net income (loss) and reflected as components of stockholders’ equity, was as follows for the three and six months ended June 30, 2013 and June 30, 2012 (in thousands):
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Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Components and details of accumulated other comprehensive income (loss) at June 30, 2013 and December 31, 2012 were as follows (in thousands):
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Note 2. Summary of Significant Accounting Policies (Policies)
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6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and the accompanying notes. Significant estimates in these condensed consolidated financial statements include percentage-of-completion revenue recognition, estimates of future cash flows from and the economic useful lives of long-lived assets, certain accrued liabilities, income taxes and tax valuation allowances, reportable segment allocations, product warranties and manufacturing excursions, accrued collection and recycling expense, applying the acquisition method of accounting for business combinations and goodwill. Despite our intention to establish accurate estimates and reasonable assumptions, actual results could differ materially from these estimates and assumptions. |
Revenue Recognition Long-Term Contracts Policy | Revenue Recognition — Systems Business. We recognize revenue for arrangements entered into by our systems business generally using two revenue recognition models, following the guidance in ASC 605, Accounting for Long-term Construction Contracts or, for arrangements which include land or land rights, ASC 360, Accounting for Sales of Real Estate. For systems business sales arrangements that do not include land or land rights and thus are accounted for under ASC 605, we use the percentage-of-completion method, as described further below, using actual costs incurred over total estimated costs to develop and construct a project (including module costs) as our standard accounting policy, unless we cannot make reasonably dependable estimates of the costs to complete the contract, in which case we would use the completed contract method. For systems business sales arrangements that are accounted for under ASC 360, where we convey control of land or land rights, we record the sale as revenue using one of the following revenue recognition methods, based upon evaluation of the substance and form of the terms and conditions of such real estate sales arrangements: (i) We apply the percentage-of-completion method, as further described below, to certain real estate sales arrangements covered under ASC 360, when a sale has been consummated, we have transferred the usual risks and rewards of ownership to the buyer, the initial and continuing investment criteria have been met, we have the ability to estimate our costs and progress toward completion, and all other revenue recognition criteria have been met. The initial and continuing investment requirements, which demonstrate a buyer’s commitment to honor their obligations for the sales arrangement, can typically be met through the receipt of cash or an irrevocable letter of credit from a highly credit worthy lending institution. When evaluating whether the usual risks and rewards of ownership have transferred to the buyer, we consider whether we have or may be contingently required to have any prohibited forms of continuing involvement with the project. Prohibited forms of continuing involvement in a real estate sales arrangement may include us retaining risks or rewards associated with the project that are not customary with the range of risks or rewards that an engineering, procurement and construction (“EPC”) contractor may assume. (ii) Depending on whether the initial and continuing investment requirements have been met, and whether collectability from the buyer is reasonably assured, we may align our revenue recognition and release of project assets or deferred project costs to cost of sales with the receipt of payment from the buyer if the sale has been consummated and we have transferred the usual risks and rewards of ownership to the buyer. (iii) We may also record revenue for certain sales arrangements after construction of discrete portions of a project or after the entire project is substantially complete, we have transferred the usual risks and rewards of ownership to the buyer, and we have received substantially all payments due from the buyer or the initial and continuing investment criteria have been met. For any systems business sales arrangements containing multiple deliverables (including our solar modules) not required to be accounted for under ASC 360 (real estate) or ASC 605 (long-term construction contracts), we analyze each activity within the sales arrangement to ensure that we adhere to the separation guidelines of ASC 605 for multiple-element arrangements. We allocate revenue for any transactions involving multiple elements to each unit of accounting based on its relative selling price, and recognize revenue for each unit of accounting when all revenue recognition criteria for a unit of accounting have been met. Revenue Recognition - Percentage-of-Completion. In applying the percentage-of-completion method, we use the actual costs incurred relative to estimated costs to complete (including module costs) in order to estimate the progress towards completion to determine the amount of revenue and profit to recognize. Incurred costs include all installed direct materials, installed solar modules, labor, subcontractor costs, and those indirect costs related to contract performance, such as indirect labor, supplies, and tools. We recognize direct material and solar module costs as incurred costs when the direct materials and solar modules have been installed in the project. When contracts specify that title to direct materials and solar modules transfers to the customer before installation has been performed, we will not recognize revenue or associated costs until those materials are installed and have met all other revenue recognition requirements. We consider direct materials and solar modules to be installed when they are permanently placed or fitted to a solar power system as required by engineering designs. Solar modules manufactured by us that will be used in our solar power systems, which we still hold title to, remain within inventory until such modules are installed in a solar power system. The percentage-of-completion method of revenue recognition requires us to make estimates of contract revenues and costs to complete our projects. In making such estimates, management judgments are required to evaluate significant assumptions including the cost of materials and labor, expected labor productivity, the impact of potential variances in schedule completion, the amount of net contract revenues and the impact of any penalties, claims, change orders, or performance incentives. If estimated total costs on any contract are greater than the contract revenues, we recognize the entire estimated loss in the period the loss becomes known. The cumulative effect of the revisions to estimates related to contract revenues and costs to complete contracts, including penalties, incentive awards, claims, change orders, anticipated losses and others are recorded in the period in which the revisions to estimates are identified and can be reasonably estimated. The effect of the changes on future periods are recognized as if the revised estimates had been used since revenue was initially recognized under the contract. Such revisions could occur in any reporting period and the effects may be material depending on the size of the contracts or changes in estimate. Revenue Recognition - Components Business. Our components business sells solar modules directly to third party solar power system integrators and operators. We recognize revenue for module sales when persuasive evidence of an arrangement exists, delivery of the module has occurred and title and risk of loss have passed to the customer, the sales price is fixed or determinable, and the collectability of the resulting receivable is reasonably assured. Under this policy, we record a trade receivable for the selling price of our module and reduce inventory for the cost of goods sold when delivery occurs in accordance with the terms of the sales contracts. Our customers typically do not have extended payment terms or rights of return for our products. We account for rebates or other customer incentives as a reduction to the selling price of our solar modules at the time of sale; and therefore, as a reduction to revenue. |
Ventures and Variable Interest Entities | Ventures and Variable Interest Entities. In the normal course of business we establish wholly owned project companies which may be considered variable interest entities. We consolidate wholly owned variable interest entities, even if there are other variable interests in such entities, as we are considered the primary beneficiary of such entities. Additionally, we have and may in the future form joint venture type arrangements (“ventures”), including partnerships and partially owned limited liability companies or similar legal structures, with one or more third parties primarily to develop and build specific or a pipeline of solar power projects. These types of ventures are core to our business and long-term strategy related to providing solar photovoltaic (“PV”) generation solutions using our modules to sustainable geographic markets. In accordance with ASC 810, Consolidations, we analyze all of our ventures and classify them into two groups: (i) ventures that must be consolidated because they are either not variable interest entities (“VIEs”) and we hold the majority voting interest, or because they are VIEs and we are the primary beneficiary; and (ii) ventures that do not need to be consolidated and are accounted for under either the equity or cost methods of accounting because they are either not VIEs and we hold a minority voting interest, or because they are VIEs and we are not the primary beneficiary. Ventures are considered VIEs if (i) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support; (ii) as a group, the holders of the equity investment at risk lack the ability to make certain decisions, the obligation to absorb expected losses or the right to receive expected residual returns; or (iii) an equity investor has voting rights that are disproportionate to its economic interest and substantially all of the entity’s activities are on behalf of the investor. Our venture agreements typically require some form of project development capital or project equity ranging from amounts necessary to obtain a power purchase agreements (“PPA”) (or similar power off-take agreement) to a pro-rata portion of the total equity required to develop and complete construction of a project, depending upon the opportunity and the market our ventures are in. Our limited number of ventures as of June 30, 2013 and future ventures of a similar nature are typically VIEs because the total equity investment at risk is not sufficient to permit the ventures to finance their activities without additional financial support. We are considered the primary beneficiary of and are required to consolidate a VIE if we have the power to direct the activities that most significantly impact that VIE’s economic performance, and the obligation to absorb losses or the right to receive benefits of that VIE that could potentially be significant to the VIE. If we determine that we do not have the power to direct the activities that most significantly impact the venture, then we are not primary beneficiary of the VIE. We account for our unconsolidated ventures using either the equity or cost methods of accounting depending upon whether we have the ability to exercise significant influence over a venture. We consider the participating and protective rights we have as well as the legal form of the venture when evaluating whether we have the ability to exercise significant influence, which requires us to apply the equity method of accounting. |
Note 20. Subsequent Events (Notes)
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Subsequent Events [Abstract] | |
Subsequent Events | 20. Subsequent Events On August 5, 2013, First Solar acquired all of the cadmium telluride PV specific intellectual property assets (the “Intellectual Property”) of General Electric Company (“GE”) pursuant to a Master Transaction Agreement and an Intellectual Property Purchase Agreement (the “Agreements”), by and between First Solar and GE and certain of their subsidiaries. Pursuant to the Agreements, First Solar received the Intellectual Property and GE received 1,750,000 shares of First Solar common stock, which had a market value of $83.8 million on August 5, 2013. |
Note 7. Restricted Cash and Investments (Details) - Available For Sale (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
|
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | $ 356,899 | $ 102,457 |
Available-for-sale securities, gross unrealized gains | 78 | 155 |
Available-for-sale securities, gross unrealized losses | 362 | 34 |
Available-for-sale Securities, estimated fair value | 356,615 | 102,578 |
Foreign Government Obligations [Member]
|
||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 26,190 | 4,138 |
Available-for-sale securities, gross unrealized gains | 1 | 4 |
Available-for-sale securities, gross unrealized losses | 0 | 0 |
Available-for-sale Securities, estimated fair value | 26,191 | 4,142 |
US Government Debt Securities [Member]
|
||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 3,497 | 2,000 |
Available-for-sale securities, gross unrealized gains | 0 | 4 |
Available-for-sale securities, gross unrealized losses | 1 | 0 |
Available-for-sale Securities, estimated fair value | 3,496 | 2,004 |
Restricted Investments [Member]
|
||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 244,406 | 241,718 |
Available-for-sale securities, gross unrealized gains | 31,469 | 59,498 |
Available-for-sale securities, gross unrealized losses | 849 | 0 |
Available-for-sale Securities, estimated fair value | 275,026 | 301,216 |
Contractual Maturities Of Available-For-Sale Marketable Securities, Range Start | 15 years | 15 years |
Contractual Maturities Of Available-For-Sale Marketable Securities, Range End | 24 years | 24 years |
Restricted Investments [Member] | Foreign Government Obligations [Member]
|
||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 189,780 | 188,350 |
Available-for-sale securities, gross unrealized gains | 27,910 | 47,921 |
Available-for-sale securities, gross unrealized losses | 0 | 0 |
Available-for-sale Securities, estimated fair value | 217,690 | 236,271 |
Restricted Investments [Member] | US Government Debt Securities [Member]
|
||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 54,626 | 53,368 |
Available-for-sale securities, gross unrealized gains | 3,559 | 11,577 |
Available-for-sale securities, gross unrealized losses | 849 | 0 |
Available-for-sale Securities, estimated fair value | $ 57,336 | $ 64,945 |
Note 12. Fair Value Measurements (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis | At June 30, 2013 and December 31, 2012, the fair value measurements of our assets and liabilities that we measure on a recurring basis were as follows (in thousands):
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Fair value by balance sheet grouping | The carrying values and fair values of our financial and derivative instruments at June 30, 2013 and December 31, 2012 were as follows (in thousands):
|
Note 19. Segment Reporting (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Financial information about our operating segments during the three and six months ended June 30, 2013 and June 30, 2012 was as follows (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Products and Services | Product Revenue The following table sets forth the total amounts of solar modules and solar power systems net sales recognized for the three and six months ended June 30, 2013 and June 30, 2012. For the purposes of the following table, (i) Solar module revenue is composed of total revenues from the sale of solar modules to third parties, which excludes any solar modules installed in our systems segment product or service offerings and (ii) Solar power system revenue is composed of total revenues from the sale of our solar power systems and related products and services including the solar modules installed in such solar power systems.
|
Note 10. Equity Offering (Details) (USD $)
|
0 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 18, 2013
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
|
Capital Unit [Line Items] | ||||
Common Stock, Shares, Issued | 9,747,000 | 97,629,891 | 87,145,323 | |
Share Price | $ 46.00 | |||
Proceeds from Issuance of Common Stock | $ 428,200,000 | $ 430,368,000 | $ 0 | |
Investment Banking, Advisory, Brokerage, and Underwriting Fees and Commissions | 17,900,000 | |||
Deferred Offering Costs | $ 2,200,000 |
Note 8. Net Income (Loss) Per Share (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The calculation of basic and diluted net income (loss) per share for the three and six months ended June 30, 2013 and June 30, 2012 was as follows (in thousands, except per share amounts):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following number of outstanding employee stock options, restricted and performance stock units and stock purchase plan shares were excluded from the computation of diluted net income (loss) per share for the three and six months ended June 30, 2013 and June 30, 2012 as they would have had an anti-dilutive effect (in thousands):
|
Note 19. Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
segments
|
Jun. 30, 2012
|
Dec. 31, 2012
|
|
Segment Reporting Information [Line Items] | |||||
Number of Operating Segments | 2 | ||||
Net sales | $ 519,760 | $ 957,332 | $ 1,274,965 | $ 1,454,387 | |
Gross profit | 140,098 | 243,741 | 309,424 | 320,486 | |
Income (loss) before income taxes | 41,062 | 135,347 | 107,251 | (321,139) | |
Goodwill | 74,930 | 65,444 | 74,930 | 65,444 | 65,444 |
Total assets | 6,868,126 | 5,487,334 | 6,868,126 | 5,487,334 | 6,348,692 |
Components Segment [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Net sales | 192,908 | 287,681 | 549,504 | 455,811 | |
Gross profit | (8,193) | (10,352) | 3,416 | (32,811) | |
Income (loss) before income taxes | (67,348) | (92,917) | (116,886) | (606,371) | |
Goodwill | 6,097 | 0 | 6,097 | 0 | |
Total assets | 4,140,842 | 3,565,152 | 4,140,842 | 3,565,152 | |
Systems Segment [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Net sales | 326,852 | 669,651 | 725,461 | 998,576 | |
Gross profit | 148,291 | 254,093 | 306,008 | 353,297 | |
Income (loss) before income taxes | 108,410 | 228,264 | 224,137 | 285,232 | |
Goodwill | 68,833 | 65,444 | 68,833 | 65,444 | |
Total assets | 2,727,284 | 1,922,182 | 2,727,284 | 1,922,182 | |
Solar Module [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Net sales | 81,304 | 54,598 | 274,554 | 122,007 | |
Solar Power System [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 438,456 | $ 902,734 | $ 1,000,411 | $ 1,332,380 |
Note 18. Statement of Cash Flows (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Net income (loss) | $ 92,740 | $ (338,433) |
Adjustments to reconcile net (loss) income to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 116,084 | 138,229 |
Impairment of long-lived assets | 4,300 | 350,213 |
Impairment of project assets | 0 | 3,227 |
Share-based compensation | 23,918 | 6,933 |
Remeasurement of monetary assets and liabilities | (6,935) | (561) |
Deferred income taxes | (7,769) | 4,896 |
Excess tax benefit from share-based compensation arrangements | (55,695) | (66,853) |
Provision for Doubtful Accounts | 0 | 2,260 |
Gain on sales of marketable securities, and restricted investments, net | 0 | (16) |
Other operating activities | (2,903) | 18 |
Changes in operating assets and liabilities: | ||
Accounts receivable, trade and unbilled | 341,357 | 114,592 |
Prepaid expenses and other current assets | 93,438 | 94,214 |
Other assets | 449 | 83,977 |
Inventories and balance of systems parts | 75,120 | (280,027) |
Project assets and deferred project costs | (670,456) | 82,412 |
Accounts payable | (129,314) | 28,018 |
Income taxes payable | 28,256 | 37,959 |
Accrued expenses and other liabilities | 350,203 | 132,350 |
Accrued solar module collection and recycling liability | 36,035 | 18,927 |
Total adjustments | 196,088 | 750,768 |
Net cash provided by operating activities | $ 288,828 | $ 412,335 |
Note 6. Cash, Cash Equivalents, Marketable Securities (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|---|---|
Investment [Line Items] | ||||
Cash and cash equivalents | $ 928,657 | $ 901,294 | $ 630,240 | $ 605,619 |
Marketable securities | 356,615 | 102,578 | ||
Total cash, cash equivalents, and marketable securities | 1,285,272 | 1,003,872 | ||
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
|
||||
Investment [Line Items] | ||||
Marketable securities | 5,097 | 1,698 | ||
Corporate Debt Securities [Member]
|
||||
Investment [Line Items] | ||||
Marketable securities | 137,704 | 23,384 | ||
Federal Agency Debt [Member]
|
||||
Investment [Line Items] | ||||
Marketable securities | 25,813 | 29,936 | ||
Foreign Agency Debt [Member]
|
||||
Investment [Line Items] | ||||
Marketable securities | 110,641 | 7,233 | ||
Foreign Government Obligations [Member]
|
||||
Investment [Line Items] | ||||
Marketable securities | 26,191 | 4,142 | ||
Supranational Debt [Member]
|
||||
Investment [Line Items] | ||||
Marketable securities | 47,673 | 34,181 | ||
US Government Debt Securities [Member]
|
||||
Investment [Line Items] | ||||
Marketable securities | 3,496 | 2,004 | ||
Cash [Member]
|
||||
Investment [Line Items] | ||||
Cash and cash equivalents | 882,091 | 889,065 | ||
Commercial Paper [Member]
|
||||
Investment [Line Items] | ||||
Cash and cash equivalents | 3,199 | 1,500 | ||
Money Market Funds [Member]
|
||||
Investment [Line Items] | ||||
Cash and cash equivalents | $ 43,367 | $ 10,729 |
Note 19. Segment Reporting
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | 19. Segment Reporting We operate our business in two segments. Our components segment involves the design, manufacture, and sale of solar modules which convert sunlight into electricity. Third-party customers of our components segment include project developers, system integrators, and owners and operators of photovoltaic (“PV”) solar power systems. Our second segment is our fully integrated systems business (“systems segment”), through which we provide a complete turn-key PV solar power systems, or solar solutions that draw upon our capabilities, which include (i) project development, (ii) EPC services, (iii) operating and maintenance (“O&M”) services, and (iv) project finance expertise. We may provide our full EPC service or any combination of individual products and services within our EPC capabilities depending upon the customer and market opportunity. All of our systems segment products and services are for PV solar power systems which use our solar modules, and such products and services are sold directly to investor owned utilities, independent power developers and producers, commercial and industrial companies, and other system owners. In our operating segment financial disclosures, we include an allocation of sales value for all solar modules manufactured by our components segment and installed in projects sold or built by our systems segment in the net sales of our components segment. In the gross profit of our operating segment disclosures, we include the corresponding cost of sales value for the solar modules installed in projects sold or built by our systems segment in the components segment. The cost of solar modules is comprised of the manufactured cost incurred by our components segment. Refer to Note 25. “Segment and Geographical Information,” in our Annual Report on Form 10-K for the year ended December 31, 2012 for a complete discussion of our segment reporting. Financial information about our operating segments during the three and six months ended June 30, 2013 and June 30, 2012 was as follows (in thousands):
Product Revenue The following table sets forth the total amounts of solar modules and solar power systems net sales recognized for the three and six months ended June 30, 2013 and June 30, 2012. For the purposes of the following table, (i) Solar module revenue is composed of total revenues from the sale of solar modules to third parties, which excludes any solar modules installed in our systems segment product or service offerings and (ii) Solar power system revenue is composed of total revenues from the sale of our solar power systems and related products and services including the solar modules installed in such solar power systems.
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Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
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Cash flows from operating activities: | ||
Cash received from customers | $ 2,050,622 | $ 1,639,136 |
Cash paid to suppliers and associates | (1,709,914) | (1,169,399) |
Interest received | 3,724 | 2,970 |
Interest paid | (5,974) | (18,030) |
Income tax refunds (payments), net | 5,976 | 25,561 |
Excess tax benefit from share-based compensation arrangements | (55,695) | (66,853) |
Other operating activities | 89 | (1,050) |
Net cash provided by operating activities | 288,828 | 412,335 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (156,856) | (281,972) |
Purchases of marketable securities | (316,285) | (14,446) |
Proceeds from maturities and sales of marketable securities | 60,766 | 83,367 |
Investment in note receivable, affiliate | 0 | (21,883) |
Payments received on note receivable, affiliate | 17,108 | 0 |
Purchase of restricted investments | 0 | (80,667) |
Change in restricted cash | 5,136 | 21,547 |
Acquisitions, net of cash acquired | (30,745) | (2,437) |
Purchase of equity and cost method investments | (14,894) | 0 |
Other investing activities | (1,850) | (4,812) |
Net cash used in investing activities | (437,620) | (301,303) |
Cash flows from financing activities: | ||
Repayments of long-term debt | (635,876) | (735,296) |
Proceeds from borrowings under long-term debt, net of discount and issuance costs | 335,000 | 590,000 |
Excess tax benefit from share-based compensation arrangements | 55,695 | 66,853 |
Repayment of economic development funding | (8,315) | (6,820) |
Proceeds from equity offering, net of issuance costs | 430,368 | 0 |
Other financing activities | 349 | (643) |
Net cash provided by (used in) financing activities | 177,221 | (85,906) |
Effect of exchange rate changes on cash and cash equivalents | (1,066) | (505) |
Net increase in cash and cash equivalents | 27,363 | 24,621 |
Cash and cash equivalents, beginning of the period | 901,294 | 605,619 |
Cash and cash equivalents, end of the period | 928,657 | 630,240 |
Supplemental disclosure of noncash investing and financing activities: | ||
Property, plant and equipment acquisitions funded by liabilities | 57,681 | 61,615 |
Acquisitions funded by liabilities and contingent consideration | $ 22,780 | $ 0 |
Note 2. Summary of Significant Accounting Policies
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6 Months Ended |
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Jun. 30, 2013
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Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and the accompanying notes. Significant estimates in these condensed consolidated financial statements include percentage-of-completion revenue recognition, estimates of future cash flows from and the economic useful lives of long-lived assets, certain accrued liabilities, income taxes and tax valuation allowances, reportable segment allocations, product warranties and manufacturing excursions, accrued collection and recycling expense, applying the acquisition method of accounting for business combinations and goodwill. Despite our intention to establish accurate estimates and reasonable assumptions, actual results could differ materially from these estimates and assumptions. Revenue Recognition — Systems Business. We recognize revenue for arrangements entered into by our systems business generally using two revenue recognition models, following the guidance in ASC 605, Accounting for Long-term Construction Contracts or, for arrangements which include land or land rights, ASC 360, Accounting for Sales of Real Estate. For systems business sales arrangements that do not include land or land rights and thus are accounted for under ASC 605, we use the percentage-of-completion method, as described further below, using actual costs incurred over total estimated costs to develop and construct a project (including module costs) as our standard accounting policy, unless we cannot make reasonably dependable estimates of the costs to complete the contract, in which case we would use the completed contract method. For systems business sales arrangements that are accounted for under ASC 360, where we convey control of land or land rights, we record the sale as revenue using one of the following revenue recognition methods, based upon evaluation of the substance and form of the terms and conditions of such real estate sales arrangements: (i) We apply the percentage-of-completion method, as further described below, to certain real estate sales arrangements covered under ASC 360, when a sale has been consummated, we have transferred the usual risks and rewards of ownership to the buyer, the initial and continuing investment criteria have been met, we have the ability to estimate our costs and progress toward completion, and all other revenue recognition criteria have been met. The initial and continuing investment requirements, which demonstrate a buyer’s commitment to honor their obligations for the sales arrangement, can typically be met through the receipt of cash or an irrevocable letter of credit from a highly credit worthy lending institution. When evaluating whether the usual risks and rewards of ownership have transferred to the buyer, we consider whether we have or may be contingently required to have any prohibited forms of continuing involvement with the project. Prohibited forms of continuing involvement in a real estate sales arrangement may include us retaining risks or rewards associated with the project that are not customary with the range of risks or rewards that an engineering, procurement and construction (“EPC”) contractor may assume. (ii) Depending on whether the initial and continuing investment requirements have been met, and whether collectability from the buyer is reasonably assured, we may align our revenue recognition and release of project assets or deferred project costs to cost of sales with the receipt of payment from the buyer if the sale has been consummated and we have transferred the usual risks and rewards of ownership to the buyer. (iii) We may also record revenue for certain sales arrangements after construction of discrete portions of a project or after the entire project is substantially complete, we have transferred the usual risks and rewards of ownership to the buyer, and we have received substantially all payments due from the buyer or the initial and continuing investment criteria have been met. For any systems business sales arrangements containing multiple deliverables (including our solar modules) not required to be accounted for under ASC 360 (real estate) or ASC 605 (long-term construction contracts), we analyze each activity within the sales arrangement to ensure that we adhere to the separation guidelines of ASC 605 for multiple-element arrangements. We allocate revenue for any transactions involving multiple elements to each unit of accounting based on its relative selling price, and recognize revenue for each unit of accounting when all revenue recognition criteria for a unit of accounting have been met. Revenue Recognition - Percentage-of-Completion. In applying the percentage-of-completion method, we use the actual costs incurred relative to estimated costs to complete (including module costs) in order to estimate the progress towards completion to determine the amount of revenue and profit to recognize. Incurred costs include all installed direct materials, installed solar modules, labor, subcontractor costs, and those indirect costs related to contract performance, such as indirect labor, supplies, and tools. We recognize direct material and solar module costs as incurred costs when the direct materials and solar modules have been installed in the project. When contracts specify that title to direct materials and solar modules transfers to the customer before installation has been performed, we will not recognize revenue or associated costs until those materials are installed and have met all other revenue recognition requirements. We consider direct materials and solar modules to be installed when they are permanently placed or fitted to a solar power system as required by engineering designs. Solar modules manufactured by us that will be used in our solar power systems, which we still hold title to, remain within inventory until such modules are installed in a solar power system. The percentage-of-completion method of revenue recognition requires us to make estimates of contract revenues and costs to complete our projects. In making such estimates, management judgments are required to evaluate significant assumptions including the cost of materials and labor, expected labor productivity, the impact of potential variances in schedule completion, the amount of net contract revenues and the impact of any penalties, claims, change orders, or performance incentives. If estimated total costs on any contract are greater than the contract revenues, we recognize the entire estimated loss in the period the loss becomes known. The cumulative effect of the revisions to estimates related to contract revenues and costs to complete contracts, including penalties, incentive awards, claims, change orders, anticipated losses and others are recorded in the period in which the revisions to estimates are identified and can be reasonably estimated. The effect of the changes on future periods are recognized as if the revised estimates had been used since revenue was initially recognized under the contract. Such revisions could occur in any reporting period and the effects may be material depending on the size of the contracts or changes in estimate. Revenue Recognition - Components Business. Our components business sells solar modules directly to third party solar power system integrators and operators. We recognize revenue for module sales when persuasive evidence of an arrangement exists, delivery of the module has occurred and title and risk of loss have passed to the customer, the sales price is fixed or determinable, and the collectability of the resulting receivable is reasonably assured. Under this policy, we record a trade receivable for the selling price of our module and reduce inventory for the cost of goods sold when delivery occurs in accordance with the terms of the sales contracts. Our customers typically do not have extended payment terms or rights of return for our products. We account for rebates or other customer incentives as a reduction to the selling price of our solar modules at the time of sale; and therefore, as a reduction to revenue. Ventures and Variable Interest Entities. In the normal course of business we establish wholly owned project companies which may be considered variable interest entities. We consolidate wholly owned variable interest entities, even if there are other variable interests in such entities, as we are considered the primary beneficiary of such entities. Additionally, we have and may in the future form joint venture type arrangements (“ventures”), including partnerships and partially owned limited liability companies or similar legal structures, with one or more third parties primarily to develop and build specific or a pipeline of solar power projects. These types of ventures are core to our business and long-term strategy related to providing solar photovoltaic (“PV”) generation solutions using our modules to sustainable geographic markets. In accordance with ASC 810, Consolidations, we analyze all of our ventures and classify them into two groups: (i) ventures that must be consolidated because they are either not variable interest entities (“VIEs”) and we hold the majority voting interest, or because they are VIEs and we are the primary beneficiary; and (ii) ventures that do not need to be consolidated and are accounted for under either the equity or cost methods of accounting because they are either not VIEs and we hold a minority voting interest, or because they are VIEs and we are not the primary beneficiary. Ventures are considered VIEs if (i) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support; (ii) as a group, the holders of the equity investment at risk lack the ability to make certain decisions, the obligation to absorb expected losses or the right to receive expected residual returns; or (iii) an equity investor has voting rights that are disproportionate to its economic interest and substantially all of the entity’s activities are on behalf of the investor. Our venture agreements typically require some form of project development capital or project equity ranging from amounts necessary to obtain a power purchase agreements (“PPA”) (or similar power off-take agreement) to a pro-rata portion of the total equity required to develop and complete construction of a project, depending upon the opportunity and the market our ventures are in. Our limited number of ventures as of June 30, 2013 and future ventures of a similar nature are typically VIEs because the total equity investment at risk is not sufficient to permit the ventures to finance their activities without additional financial support. We are considered the primary beneficiary of and are required to consolidate a VIE if we have the power to direct the activities that most significantly impact that VIE’s economic performance, and the obligation to absorb losses or the right to receive benefits of that VIE that could potentially be significant to the VIE. If we determine that we do not have the power to direct the activities that most significantly impact the venture, then we are not primary beneficiary of the VIE. We account for our unconsolidated ventures using either the equity or cost methods of accounting depending upon whether we have the ability to exercise significant influence over a venture. We consider the participating and protective rights we have as well as the legal form of the venture when evaluating whether we have the ability to exercise significant influence, which requires us to apply the equity method of accounting. Income from ventures for the three and six months ended June 30, 2013 was immaterial to the condensed consolidated statements of operations. Refer to Note 2. “Summary of Significant Accounting Policies,” to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2012 for a more complete summary of our significant accounting policies. |
Note 5. Acquistions
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6 Months Ended |
---|---|
Jun. 30, 2013
|
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Business Combinations [Abstract] | |
Acquisitions | 5. Acquisitions TetraSun In April 2013, we acquired 100%, of the stock not previously owned by us, of TetraSun, Inc. (“TetraSun”), a development stage company that is in advanced stages of developing high efficiency crystalline silicon technology that is expected to provide improvements in performance relative to conventional crystalline silicon solar modules. The all-cash acquisition was not material to our historical condensed consolidated balance sheets, results of operations or cash flows. We have included the financial results of TetraSun in our condensed consolidated financial statements from the date of acquisition. In connection with applying the acquisition method of accounting, $39.1 million of the purchase price consideration was assigned to an in-process research and development (“IPR&D”) intangible asset that will be amortized over its useful life upon successful completion of the project or expensed earlier if impaired and $6.1 million was assigned to goodwill. Goodwill represents the excess of the purchase price of an acquired business over the fair value of the underlying net tangible and intangible assets. Solar Chile In January 2013, we acquired 100% of the ownership interest of Solar Chile S.A. (“Solar Chile”), a Chilean-based solar project development company with substantially all of its assets being a portfolio of early to mid-stage utility-scale PV power projects in northern Chile, in an all-cash transaction which was not material to our historical condensed consolidated balance sheets, results of operations or cash flows. We have included the financial results of Solar Chile in our condensed consolidated financial statements from the date of acquisition. |
Note 3. Recent Accounting Pronouncements
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6 Months Ended |
---|---|
Jun. 30, 2013
|
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New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements In December 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210), Disclosures about Offsetting Assets and Liabilities, updated by ASU 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which requires companies to disclose information about financial instruments that have been offset and related arrangements to enable users of their financial statements to understand the effect of those arrangements on their financial position. Companies will be required to provide both net (offset amounts) and gross information in the notes to the financial statements for relevant assets and liabilities that are offset. ASU 2011-11, as amended by ASU 2013-01, is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The adoption of ASU 2011-11, as amended by ASU 2013-01, in the first quarter of 2013, did not have an impact on our financial position, results of operations, or cash flows. In July 2012, the FASB issued ASU 2012-02, Intangibles - Goodwill and Other (Topic 350), Testing Indefinite-Lived Intangible Assets for Impairment. ASU 2012-02 gives companies an option to first assess qualitative factors to determine whether the existence of events and circumstances indicate it is more-likely-than-not that an indefinite-lived intangible asset (excluding goodwill) is impaired. If based on its qualitative assessment, a company concludes that it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is less than its carrying amount, quantitative impairment testing is required. However, if a company concludes otherwise, quantitative impairment testing is not required. ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, with early adoption permitted. The adoption of ASU 2012-02, in the first quarter of 2013, did not have an impact on our financial position, results of operations, or cash flows. In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 supersedes and replaces the presentation requirements for reclassifications out of accumulated other comprehensive income in ASUs 2011-05 and 2011-12 for all public and private organizations. The amendment requires that an entity must report the effect of significant reclassifications out of accumulated other comprehensive income by the respective line items in net income if the amount being reclassified is required under U.S. GAAP. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. ASU 2013-02 is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2012. The adoption of ASU 2013-02, in the first quarter of 2013, did not have an impact on our financial position, results of operations or cash flows. |
Note 4. Restructuring (Details) (USD $)
|
3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | 3 Months Ended | 18 Months Ended | 3 Months Ended | 18 Months Ended | 6 Months Ended | |||||||||||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
February 2012 Manufacturing Restructuring [Member]
|
Jun. 30, 2013
April 2012 European Restructuring Plan [Member]
|
Mar. 31, 2013
April 2012 European Restructuring Plan [Member]
|
Jun. 30, 2013
April 2012 European Restructuring Plan [Member]
|
Dec. 31, 2012
April 2012 European Restructuring Plan [Member]
|
Jun. 30, 2013
April 2012 European Restructuring Plan [Member]
Asset Impairment and Related Costs [Member]
|
Jun. 30, 2013
April 2012 European Restructuring Plan [Member]
Asset Impairment Related Costs [Member]
|
Mar. 31, 2013
April 2012 European Restructuring Plan [Member]
Asset Impairment Related Costs [Member]
|
Jun. 30, 2013
April 2012 European Restructuring Plan [Member]
Employee Severance [Member]
|
Mar. 31, 2013
April 2012 European Restructuring Plan [Member]
Employee Severance [Member]
|
Jun. 30, 2013
April 2012 European Restructuring Plan [Member]
Employee Severance [Member]
|
Jun. 30, 2013
April 2012 European Restructuring Plan [Member]
Grant Repayments [Member]
|
Mar. 31, 2013
April 2012 European Restructuring Plan [Member]
Grant Repayments [Member]
|
Jun. 30, 2013
April 2012 European Restructuring Plan [Member]
Grant Repayments [Member]
|
Jun. 30, 2013
Maximum [Member]
April 2012 European Restructuring Plan [Member]
|
Jun. 30, 2013
GERMANY
April 2012 European Restructuring Plan [Member]
production_line
|
Jun. 30, 2013
MALAYSIA
April 2012 European Restructuring Plan [Member]
production_line
|
Jun. 30, 2013
OHIO
April 2012 European Restructuring Plan [Member]
production_line
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Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||
Charges to Income | $ 2,381,000 | $ 19,000,000 | $ 4,728,000 | $ 420,065,000 | $ 3,355,000 | $ 2,347,000 | $ 4,728,000 | $ 342,000,000 | $ 253,000,000 | $ 2,170,000 | $ 0 | $ 1,185,000 | $ 2,347,000 | $ 63,200,000 | $ 0 | $ 0 | $ 30,500,000 | |||||
Number of Production Lines | 8 | 24 | 4 | |||||||||||||||||||
Restructuring and Related Cost, Expected Cost | 1,000,000 | |||||||||||||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||||||||||||||
Balance at beginning of period | 5,100,000 | 29,754,000 | 50,742,000 | 50,742,000 | 9,128,000 | 16,625,000 | 20,626,000 | 25,717,000 | 0 | 8,400,000 | ||||||||||||
Charges to Income | 2,381,000 | 19,000,000 | 4,728,000 | 420,065,000 | 3,355,000 | 2,347,000 | 4,728,000 | 342,000,000 | 253,000,000 | 2,170,000 | 0 | 1,185,000 | 2,347,000 | 63,200,000 | 0 | 0 | 30,500,000 | |||||
Changes to Estimates | (974,000) | 0 | (945,000) | 0 | (29,000) | 0 | 0 | 0 | ||||||||||||||
Cash Payments | (20,160,000) | (22,228,000) | (6,597,000) | (7,193,000) | (13,563,000) | (6,720,000) | 0 | (8,315,000) | ||||||||||||||
Non-cash Amounts including foreign exchange impact | (455,000) | (1,107,000) | (771,000) | (304,000) | 316,000 | (718,000) | 0 | (85,000) | ||||||||||||||
Balance at end of period | $ 5,100,000 | $ 11,520,000 | $ 29,754,000 | $ 11,520,000 | $ 50,742,000 | $ 2,985,000 | $ 9,128,000 | $ 8,535,000 | $ 20,626,000 | $ 8,535,000 | $ 0 | $ 0 | $ 0 |
Note 4. Restructuring (Tables) (April 2012 European Restructuring Plan [Member])
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Jun. 30, 2013
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April 2012 European Restructuring Plan [Member]
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Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the April 2012 European restructuring amounts remaining as of December 31, 2012, amounts recorded to restructuring expense during the three and six months ended June 30, 2013, and the remaining balance at June 30, 2013 (in thousands):
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Note 9. Consolidated Balance Sheet Details (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Consolidated Balance Sheet Details [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable | Accounts receivable trade, net consisted of the following at June 30, 2013 and December 31, 2012 (in thousands):
At June 30, 2013 and December 31, 2012, $51.6 million and $104.5 million, respectively, of our Accounts receivable trade, net were secured by letters of credit, bank guarantees or other forms of financial security issued by credit worthy financial institutions. Accounts receivable, unbilled and retainage Accounts receivable, unbilled and retainage consisted of the following at June 30, 2013 and December 31, 2012 (in thousands):
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Schedule of Inventory, Current and Noncurrent | Inventories consisted of the following at June 30, 2013 and December 31, 2012 (in thousands):
(1) We purchase a critical raw material that is used in our core production process in quantities that exceed anticipated consumption within our operating cycle (which is 12 months). We classify the raw materials that we do not expect to be consumed within our operating cycle as noncurrent. |
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Prepaid expenses and other current assets | Prepaid expenses and other current assets consisted of the following at June 30, 2013 and December 31, 2012 (in thousands):
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Property, plant and equipment, net | Property, plant and equipment, net consisted of the following at June 30, 2013 and December 31, 2012 (in thousands):
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Schedule of Capitalized Interest | We capitalized interest costs incurred into property, plant and equipment or project assets as follows during the three and six months ended June 30, 2013 and June 30, 2012 (in thousands):
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Schedule of Project Assets Noncurrent | Project assets and deferred project costs consisted of the following at June 30, 2013 and December 31, 2012 (in thousands):
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Intangible Assets | Intangible assets consisted of the following at June 30, 2013 and December 31, 2012 (in thousands):
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Schedule of Accrued Liabilities | Accrued expenses consisted of the following at June 30, 2013 and December 31, 2012 (in thousands):
(1) Accrued expenses in excess of normal product warranty liability and related expenses consists primarily of commitments to certain customers, each related to the manufacturing excursion occurring during the period between June 2008 to June 2009 (“2008-2009 manufacturing excursion”), whereby certain modules manufactured during that time period may experience premature power loss once installed in the field. Additionally, included in such accrued expenses are commitments to certain customers related to a workmanship issue potentially affecting solar modules manufactured between October 2008 to June 2009, as a limited number of the modules manufactured during that time utilized a new material and process to attach the cord plate (junction box) to the module which may not adhere securely over time. Our best estimate for such remediation programs is based on evaluation and consideration of currently available information, including the estimated number of potentially affected modules in the field, historical experience related to our remediation efforts, customer-provided data related to potentially affected systems, the estimated costs of performing the removal, replacement and logistical services and the post-sale expenses covered under our remediation program. If any of our estimates prove incorrect, we could be required to accrue additional expenses. |
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Schedule of Other Liabilities | Other current liabilities consisted of the following at June 30, 2013 and December 31, 2012 (in thousands):
(1) Billings in excess of costs and estimated earnings represents billings made or payments received in excess of revenue recognized on contracts accounted for under the percentage-of-completion method. Typically, billings are made based on the completion of certain construction milestones as provided for in the sales arrangement and the timing of revenue recognition may be different from when we can bill or collect from a customer. Other liabilities Other liabilities consisted of the following at June 30, 2013 and December 31, 2012 (in thousands):
(1) Billings in excess of costs and estimated earnings represents billings made or payments received in excess of revenue recognized on contracts accounted for under the percentage-of-completion method. Typically, billings are made based on the completion of certain construction milestones as provided for in the sales arrangement and the timing of revenue recognition may be different from when we can bill or collect from a customer. |
Note 15. Share-Based Compensation (Tables)
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Jun. 30, 2013
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Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents our share-based compensation expense by type of award for the three and six months ended June 30, 2013 and June 30, 2012 (in thousands):
The share-based compensation expense that we recognized in our condensed consolidated statements of operations for the three and six months ended June 30, 2013 and June 30, 2012 was as follows (in thousands):
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Note 12. Fair Value Measurements (Details) - Balance Sheet Grouping (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
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Dec. 31, 2012
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Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Marketable securities | $ 356,615 | $ 102,578 |
Carrying (Reported) Amount, Fair Value Disclosure [Member]
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Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Marketable securities | 356,615 | 102,578 |
Foreign exchange forward contract assets | 3,079 | 7,230 |
Restricted investments (excluding restricted cash) | 275,026 | 301,216 |
Note receivable, affiliate | 0 | 17,725 |
Notes receivable - noncurrent | 9,121 | 9,260 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, including current maturities | 255,764 | 562,572 |
Foreign exchange forward contract liabilities | 3,731 | 5,036 |
Estimate of Fair Value, Fair Value Disclosure [Member]
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Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Marketable securities | 356,615 | 102,578 |
Foreign exchange forward contract assets | 3,079 | 7,230 |
Restricted investments (excluding restricted cash) | 275,026 | 301,216 |
Note receivable, affiliate | 0 | 17,723 |
Notes receivable - noncurrent | 9,029 | 9,371 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, including current maturities | 257,748 | 565,879 |
Foreign exchange forward contract liabilities | 3,731 | 5,036 |
Interest Rate Swap [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
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Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Swap contract liabilities | 960 | 1,467 |
Interest Rate Swap [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
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Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Swap contract liabilities | 960 | 1,467 |
Cross Currency Interest Rate Contract [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
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Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Swap contract liabilities | 3,624 | 1,898 |
Cross Currency Interest Rate Contract [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
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Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Swap contract liabilities | $ 3,624 | $ 1,898 |